IP Multimedia sub-System -A Emerging market competition note Alok Hom Independent Paper 21 May 2008
Agenda Introductory note to IMS IMS as a Services Innovation track or Telco Adoption Framework Market strategies and Key differentiators Competitive adoptions and roadmap New revenue Opportunities
Introductory note to IMS IMS or IP Multimedia Subsystem represents a 3GPP and 3GPP2 effort to define an all IP based wireless network as compared to the historically disparate voice, data, signaling, and control network elements. Key areas that service providers must address in making the transition to IMS are service delivery infrastructure, service creation and composition, service management, transport, signaling and end user devices. <ul><li>Compelling IMS applications Set would be providing: </li></ul><ul><li>Prepaid/Postpaid Services; Privacy and call screening. </li></ul><ul><li>RBT/Video RBT on IP/legacy networks. </li></ul><ul><li>Converged VPN apps like IM, multiparty gaming and conferencing (IP/Video); Presence and LBS. </li></ul><ul><li>TV caller ID Services. </li></ul><ul><li>Convergent Inclusions. </li></ul><ul><li>Find Me/Follow Me services; Least cost routing services. </li></ul>
The typical IMS architectural framework definition Here are step wise evolutions on IMS standards: 1999 - 3G.IP, the industry forum that developed the initial IMS architecture, comes into being. 2000 - Work from 3G.IP is brought to 3GPP working group as part of their standardization efforts. 2001 - 3GPP Release 4 introduces the capability of an all-IP core network as well as a bearer independent core network. 2002 - 3GPP Release 5 introduces IMS and HSDPA. 2004 - 3GPP Release 6 adds enhancements to IMS. Mid 2007 - 3GPP Release 7 will reduce the delay that affects VoIP
IMS as a Services Innovation track or Telco Adoption Framework The advent of IMS is seen as a more of a Services innovation model than a Telco ready adoption framework or blueprint. Some leading vendors like HP have offered models that will help Telco’s to migrate to the IMS network swiftly. There are three key steps on the HP roadmap towards IMS implementation. ■ In the short term, operators can capture CAPEX and OPEX efficiencies by focusing on network consolidation and building a foundation that will allow them to create flexible IMS infrastructure. Through consolidation , operators can gain scale and reduce the number of network elements, and ‘de-silo’ the vertical application ‘stovepipes’, making the network more IMS-ready. Examples of this approach could be consolidating Interactive Voice Response (IVR) systems, Home Location Registers (HLR), messaging platforms, and billing systems to create tight and efficient platforms that are IMS-ready. ■ In the convergence phase of the HP roadmap, operators need to put themselves into a position to address the issues of subscriber-centric, access agnostic and blended services. By enabling and upgrading the consolidated platforms created in phase one and/or injecting new IMS elements (e.g. Group List Management Server) into the network, operators can enhance their existing services and/or launch new point IMS powered applications. ■ In the third and final phase of the HP roadmap, operators move into full IMS deployment, utilizing the IMS enablers to create new multimedia services and applications not previously possible. With this final move, operators are now in a position to drive not only service innovation but significantly enhance business model flexibility and velocity.
Market strategies and Key differentiators <ul><li>The IT Majors focus for IMS </li></ul><ul><li>Leading IT suppliers like MS, Accenture, IBM, Oracle and HP have worked a step ahead in terms of network migration –Change Management and Telco Managed Services incubation support. </li></ul><ul><li>The fear for SDP or OSS leadership loss has pressed the IT players to collaborate with IMS and 3G offerings. [ SK Telecom] </li></ul><ul><li>With leadership on IT services and Telecommunications merging with IT, leaders like HP focus on real success that will require four core capabilities : expertise in devices, core network infrastructure, systems integration and IT standards implementation. </li></ul><ul><li>For Devices to be IMS supportive, global drives are taken up to address MS OS and other Symbian leadership on phones. </li></ul><ul><li>The Network Equipment Makers Gear </li></ul><ul><li>Standards based on TISPAN, 3GPP. </li></ul><ul><li>Network focused like FMC, Telco network horizontals architecture, service portfolio based step wise migration. </li></ul><ul><li>Takes special care preserving the control mechanisms operators must have to meet user expectations for quality-of-service, reliability and security. </li></ul><ul><li>Focus on Telco multimedia business only while blending legacy and IP networks. Supports SM/WCDMA/WLAN/ IP networks. </li></ul><ul><li>VoIP, P-o-X, IPTv. multimedia telephony, IPVAS, location and presence services, UE independence, access network independence apps have been on focus. </li></ul>
<ul><li>Wireless substitution is the biggest challenge. </li></ul><ul><li>Transition to IP opens networks to new services & revenues </li></ul><ul><li>but also opens competition to new service providers </li></ul><ul><li>Operators must find a secure place in the new IP value chain </li></ul><ul><li>competing against ASP’s like Vonage, Skype, Google, Yahoo, etc. </li></ul><ul><li>Competitive forces in many forms -- Voice/VoIP, data, broadband, video, </li></ul><ul><li>fixed-mobile convergence, IP Centrex, UMA, FMC, new advanced service. </li></ul><ul><li>Relentless convergence challenges to address </li></ul><ul><ul><ul><li>Everything over IP − converged & personalized </li></ul></ul></ul><ul><ul><ul><li>Triple & quadruple play service bundles </li></ul></ul></ul><ul><ul><ul><li>IT & network collide. Everything is software </li></ul></ul></ul><ul><ul><ul><li>Continued pricing pressure </li></ul></ul></ul><ul><ul><ul><li>Commoditizing access </li></ul></ul></ul><ul><ul><ul><li>Increasing network complexity. </li></ul></ul></ul><ul><li>All-packet IP core network with standard protocols </li></ul><ul><li>Transport − IP, Session − SIP, Charging − Diameter </li></ul><ul><li>Supports access convergence : 2G, 3G, 4G, WiFi, WiMax </li></ul><ul><li>Supports multimedia convergence : Voice, Messaging, Data, Video </li></ul><ul><li>Its open, modular, distributed, secure, multi-vendor </li></ul><ul><li>Enables new revenue-generating IP applications/ services </li></ul>Competitive adoptions and roadmap
Certain market driven events for operator to implement IMS The years ahead are expected to be crucial for IP Multimedia Subsystem (IMS) adoption in Asia as more service providers will look to move from trials to commercial deployment of IMS enabled networks. Asian operators and service providers are beginning to see more value in IMS and how it can help develop new market propositions with an aim to increase revenue through the provision on rich multimedia services and a new mobile experience that IMS is poised to provide. The architecture in itself, enables multiple services to be clubbed together in real time, providing subscribers with the use of voice, data, and multimedia applications in a single call or integrated session. This offering of the future promises to be a significant new source of revenue for operators, as people increasingly adopt the mobile lifestyle.
New revenue Opportunities <ul><li>1 m users by 2009 divided by 3 healthy Telco players </li></ul><ul><li>NGN IP backbone, single session based multiple MM services. </li></ul><ul><li>Consolidation with lesser stovepipes and aggregating silos. </li></ul><ul><li>Will require Smooth transition to IMS along with support for legacy apps. </li></ul><ul><li>Provides challenging adapters to IT players. </li></ul><ul><li>Huge traction build for outsourcing and Incubation. </li></ul><ul><li>Provide support and testing requirements to NEMs. </li></ul><ul><li>3-4 leading SDP providers to share 3 Emerging Telco players of ~ 0.33 million subscribers / year / player </li></ul><ul><li>With IMS (IPVAS) ARPU assurance standing at ~500 INR/user the ROI to Telco player would be at least 50%+ve ( ~7.5 cr. INR) </li></ul><ul><li>Initial SDP CAPEX / player/2Qs = ~400 cr. INR to start with. </li></ul><ul><li>[ Merger and Acquisition to later survive] </li></ul><ul><li>##7.5 cr. INR is the ~Q ROI on VAS content hosted by </li></ul><ul><li>Tier-1 content partners. </li></ul><ul><li>Focussed on IP readiness of Telco’s, potential strategy to cater rich multimedia servces, </li></ul><ul><li>Will also cater to RAN independent resources, device independency. </li></ul><ul><li>Service orchestration loads to be well geared. New technology catering readiness and quick serviceability. </li></ul><ul><li>Device capability constraints. </li></ul>IMS Suppliers Telco’s 3 rd party
summarizing <ul><li>The Telco’s read IMS as a subject but when it comes to implementation it will be more a consolidation, change management confidence, Silo identification and realignment, introduction to couple of new silo’s, middleware mashup and scalability, incubation studios for services re-alignment, Telco orientation and co-operation to take on IMS apps and standards rollout, apps reusability and service orchestration gear, rating-charging-mediation-billing rudiments to be streamlined for access types and fallback modalities, preparing for 3G and scope to fold tests/rollouts of 4G to IMS backbone. </li></ul><ul><li>Suppliers need to make more engagement confidence with Telco’s. Identify timeframe and orchestrate Telco culture blending (managed services), develop Telco roadmaps, prepare fall back strategies, put up plans for cut-over and buy back systems and systematically execute IMS rollout. Identify access types and UE modalities and IMS inclusion risks and mitigate merger constraints. Prepare labs and incubation support to serve smooth folding plans. </li></ul><ul><li>Always to take up 2 Telco’s to work along IMS rollout so that the competitive confidence is reflected between the Telco’s to smoothly rollout IMS. Chances to take up Professional services to fold 3G (for voice and data calls only) and IMS apps bundling track. Operators later must go in for merger and acquisition to survive adoption blues (if any). Consolidation of silo’s can be save a lot from one of the single Telco’s only. [ RCom’s example to accommodate billing servers to serve GSM and CDMA and offer national 1 rupee calls is a trend setter in Silo’s non-duplication]. </li></ul><ul><li>Professional services may help operator open up IP services avenues in Real estate and VPN’s to add more IP communication power. </li></ul><ul><li>Risk is related to returns. </li></ul>