Mobile is still the "IT" sector in the telecom landscape. Mobile Opportunity: Outsourcing in the Mobile Communication. Presented by – Deepak Pareek
xDSL RFID (V)XML Nanotech HSDPA WiMAX FTTx UDDI GRID IPv6 The future Human beings are nomadic or mobile by essence
Two to tango.. COMPUTING TELECOM Applications Applications CPU Memory /Storage Access Core The ability for Telecommunications and Computing are reshaping business in a way never seen before. Anywhere/anytime access to Web and company or personal data facilitates a present day knowledge worker that doesn't have to wait for answers.
The Digital Networked Economy Where connectivity has no more boundaries Connections, any time, any place, any device
Mobility Overview Expansive market for wireless networks: Government, Commercial, Enterprise, Military, Healthcare, and Academic markets. Mobility has become integral in supporting business functions and has fallen under most IT domains with 802.11, WLANs, and 3G Systems: Mobile Executives Field Sales Field Services Mobile devices used by the Enterprise user have changed over time: Present PagersBlackberriesCell PhonesHandhelds (PIM)Laptops/Tablet PCs Future Converged Devices such as Video conferencing/PIM/Phone Devices Higher resolution screens for conveying graphical data more efficiently Computing devices will evolve to smaller, and faster while Wireless integrated devices will become more prevalent
Mobility Overview Future mobility will be provided with higher data rates and Ubiquitous access This implies the need for seamless wide area and office coverage Future remote access techniques will mirror existing to protect current investments Higher data rates and better coverage will be realized using disparate types of Wireless Technologies Mobility across disparate networks is a significant change to the paradigm of current mobile networks. Mobility is attributed to L2 and L1 abstraction through use of IP (Mobile IP). Data Rates and Ranges of Wireless Technologies SOURCE: ITU Mobility will increase IT departments responsibilities as remote access and devices increase.
Which applications will become popular and when M – Commerce Applications WASP Games Job Dispatch Music CRM Advertising Video Supply chain Integration Auctions Telemetry Telematics Healthcare Shopping Info Provisioning Broking M-payment Reservations Ticketing E-salary E-bill Banking Info Management Security SMS SMS Toolkit WAP GPRS EDGE UMTS 1998 2000 2001 2002 2003 2004 1999 SMS IM Chat E - mail PIM UIM Customer care M – Commerce Enabling Applications
Individual Solutions Enterprise Solutions Business Process- Enhancing Solutions
What is driving Mobile Data Services Work Patterns, Social Acceptance, Business Flexibility
Providing value to the end user Applications Session Mobility Voice Service Network Intelligence Interactive Multimedia Identity Location Service Edge Service Edge Service Edge Service Edge Converged Networks Private Internet Cellular PSTN
Service Convergence PSTN PLMN ISDN features GSM Fax #7 features #7 inter-working ADSL- connections Broadband connections Document transfer Mobilenet-work IPtelephony Converged network CompressionEncryption Internet features Data trafficMobile IP IP appli-cations E-mail IP traffic t INTER NET An increasing number of both voice & non-voice technologies are influencing products and services
Network & Service Provider ClassicalValue Chain Customer Customer New Value Chain NetworkProvider Service Provider Provider Split & Hardware-Services Decoupling Content Provider Applications Supplier Content Supplier OAM Supplier Access Equipment Supplier Retailer Changing Business Model Divergence in the Provider Value Chain
Mobile network Internet PSTN CATV CATV IP IWU Changing Business Model Today Vertically integrated businesses Layered businesses Tomorrow Service layer Open interface Network layer Mobile PSTN IWU IWU The Architecture - The increasing demand for value added services leads to a separation in network and service provisioning.
Wireless Marketplace Application Developers Content Providers End-User Consumer Network Operators Retail VAR Exchanges Between Links Infrastructure Provider Device Manufacturers Information Partnership Cash-flow Exchange Value of Exchanges Between Supply Chain Links
Applications provide efficient access to content Application Developers Content Providers Content sites must develop brand and drive greater accessibility Content must meet target customer segments needs Network Operators need applications to enhance services Infrastructure supports applications End-User Consumer Network Operators Consumer agrees on service contract VARs sell devices as middleman VARs sell service contracts as middleman Retail VAR Infrastructure facilitates network management Device must gain network access Users must be able to operate device Infrastructure Provider Device Manufacturers Air interface compatibility Wireless Marketplace Links Are Consummated on Exchanges
Wireless Market Place Device Manufacturer Network Operator Many Content Enabler Infrastructure Provider Application Provider Few Content Provider Attractive Unattractive Industry Structure: 5 Force Analysis
VAR Sellers Non-Circuit Component Manufacturers Circuit Board Component Manufacturers Application Developers OS & AP Device Manufacturers Voice and/or Data Customers Network Operators EXAMPLES
Customer Value The handheld device together with its operating system. Reduced Costs Mobile Device and Device O/S Product & Service Diff The end user solution, ERP, CRM, Sales, and Field Force Automation. Enterprise Applications & Services Wireless Enabled Enterprise Business and Systems Integration New Business & Models Platform for the delivery of business functionality to the handheld device Service Delivery Platform Provide the connectivity and, depending upon the operator, various levels of functionality. Mobile/Wireless Network Infrastructure Pervasive Solution Integrate all the different components to deliver value to the enterprise
Enterprise Home AAA Server WLAN Gateway, HA, FA Corporate LAN Ethernet VPN Firewall 802.11 Access Points IP Backbone/ Internet GSM/UMTSWSP CDMA WSP PDSN/FA/HA/Firewall WLAN Gateway & FA GGSN/FA/HA/ Firewall Public WLAN SGSN PCF Ethernet MSC/RNC BSC BS CGF BS BS BS 802.11 Access Points Multi-mode terminal w/MobileIP client & IPSec Client Future of Mobility Mobile devices can connect to office networks anytime from anywhere…. Architecture of Seamless Enterprise Connectivity
Network Evolution The Evolutionary Path allows for a smooth migration including investment protection, service flexibility and network scalability
Communities of Interest Remote Workers Global Locations Outsourced Applications Partners Customers Suppliers The New Business Imperatives Enterprise boundaries blurring Business cycles accelerating Expectations rising Complexity increasing
Enterprises WantOne-Stop Shopping Single point of responsibility Time-to-market considerations Implications The new service model will be based on infrastructure-oriented solutions “INFRASTRUCTURE” must be defined in a broader context than networkinggear and services New Service Providers Emerge Traditional Telcos Systems Integrators IT Suppliers ISPs Outsourcers New Players
NewServices Enterprises are beginning to purchase solutions(based on SLAs), not simply commodity network transport. Fundamental Market Dynamic
End-to-end Solutions Service enablers Networks Devices Operator Content Consumer Mobile systems integration Win - Win Business Models for All
Wireless: To Be or Not To Be Outsourcing is the ideal solution for reducing investment and risk in a technology that will be refined after it's adopted, for it shifts those problems onto the supplier's shoulder. Total Communications Management model not only squeezes costs out but also optimizes the business environment. Like a plant, an enterprise communications environment has tendrils twisting around into three business process areas:
Expense management (controlling costs of procuring the infrastructure, assessing accuracy of invoices, assessing best practices/policies, etc.)
Infrastructure management (system administration of the switches, operating the help/trouble desk, handling moves/adds/changes, etc.)
Usage management (call accounting including tracking proper usage, allocation of call expenses back to proper departments, etc.)
Outsourcing Enables a Dynamic New Management Model
Why Outsource? Flexibility and Agility Asset Reduction Single Point of Contact Total Cost Reductions Visibility Systems Capabilities Improved Service Process Change Collaboration Delayed Capital Expense
Organisational agility More for less The drivers of outsourcing Consolidation& Restructuring Hostile environment & increased competition Customer centricity
Outsourcing : The biggest opportunity Outsourcing, is not just a good idea, it's an inevitable process as the mobile industry matures and becomes more competitive. Outsourcing represents the biggest opportunity. The mobile sector, is an industry that no longer wants to run and control everything itself. Some of the most ambitious outsourcing efforts are: Infrastructure: Network operations and maintenance (NOM) and Mobile virtual network operator (MVNO) concept Traffic Management: Clearinghouse concept Measure and Compare: Business Benchmarking & QoS concept Design - Original design manufacturing (ODM) concept Value Services - Premium Number concept Synchronisation - Mobile Personal Information Management (mPIM) concept
Adopt it - Mobile virtual network operator (MVNO) A Mobile Virtual Network Operator (MVNO) is a mobile operator that does not own its own spectrum and usually does not have its own network infrastructure. Instead, MVNO's have business arrangements with traditional mobile operators to buy minutes of use (MOU) for sale to their own customers. To date, MVNO's are mostly a European, GSM phenomenon. With many simple resellers in the United States gaining popularity, it is likely that the concept will catch on in the US and other parts of the world as well for the Mobile Virtual Network Operator (MVNO). Many are familiar with simple resellers of telecom services such as long distance, local exchange, and mobile network services. In contrast, MVNO's typically add value such as brand appeal, distribution channels, and other affinities to the resale of mobile services.
Clear it - Traffic Management: Clearinghouse concept Originally mobile operators--often incumbent-owned--designed their networks and business models with the old fixed line network in mind: traffic which must pass between mobile networks is therefore carefully counted and exchanged with an accompanying settlement payment, just like in the fixed network world. To get to that point, though, mobile operators have to negotiate dozens of bilateral deals with other networks to agree on terms and conditions. This was just about workable when there were just a few dozen mobile networks but as the number of players world-wide has exploded, arranging and managing all the bilaterals has become a costly exercise, especially for a small mobile network operator. Clearinghouse is set up to manage all or some of the commercial agreements between as many players as it can. It then aggregates all the payments in and out into settlements. One such is United Clearing, which has offices in Hong Kong Florida and London and handles roaming, voice, data and m-commerce services.
Measure it - Business Benchmarking & QoS concept First generation mobile services, if they competed at all, competed on coverage and network quality. Things have moved on, but quality is an important hygiene factor. Some companies are setting out to build a business benchmarking QoS on mobile networks, thus enabling customers to make informed purchase and usage decisions. In-house quality measures, it says, are not trusted by customers. These company’s say they will test services on a representative sample of routes and locations. These include motorway and train journeys as well as city-center and ad hoc tests. The resulting data enable comparison of the main networks in terms of voice quality, network availability and reliability, billing accuracy and data transmission performance for GPRS services
Design it - Traffic Management: Clearinghouse concept Outsourcing product assembly has a long and well-understood history in the IT industry. What hasn't shown up so clearly on the radar so far in the mobile handset market, is the increasing practice of outsourcing the input side--the actual technology development. The growth of ODM (original design manufacturing) is rocketing, from around 7% of the handset market in 2002 to at least 40% of the market by 2005. Popular handsets like Motorola's T191 or C300 were actually developed and produced by Taiwan-based BenQ, while Sony Ericsson's T200 and R600 were developed by another Taiwan specialist, GVC. Big handset brands are able to offer a full product range without extending risk, stretching R&D budgets or falling behind in the race to market. The rise of ODM may also mean that the handset market will fundamentally change. Now you don't actually need to be a traditional mobile player to produce your own handsets. Microsoft, for instance, is already using ODMs to introduce customers to Microsoft-powered handsets and it will no doubt be joined by others.
Steal it - Value Services - Premium Number concept Today mobile phones are increasingly being used as fixed line replacements, which means that many users want to make regular international calls from them seeing they have no other service to use. Their ability to do so at a reasonable price, however, is dependent upon the regulations governing mobile operators in their jurisdiction and even in more liberal environments, the right to preselect your international carrier of choice is not yet usually available on mobile networks, but prefix code dialing options sometimes are. As in the fixed market, the problem here is that access codes are messy and introduce another supplier and yet another bill to pay for the customer. One cunning trick gets rid of the billing problem for both supplier and customer by marrying non-geographical service number ranges to international calling. Such services are alive and kicking in the UK, although it's uncertain how much market share they're taking. The mobile user dials a specific premium service access number designated to the country he or she wants to call. The per-minute cost of that service is individually assigned and adjusted according to the rate the service provider is getting to the country destination. Once connected to the service, the user punches in the specific number to connect the call, paying for a per-minute premium service at lower than the international rates available from the mobile network operator. The big advantage for the user is that there is no direct relationship with the service provider and no messy billing to be dealt with--calls will just show up on the conventional mobile bill as premium service calls.
Synchronize it - Mobile Personal Information Management (mPIM) concept Synchronization is a service or capability to allow busy people to be highly organized. But we're not and we need help in our multi-gadget world. Synchro services are supposed to be the answer, marrying our fixed and mobile information repositories (i.e. PCs mobiles, laptops and PDAs), and keeping them all up-to-date. This is a contested market with all sorts of slightly differently flavored approaches vying for attention. The idea is to have a standard way of exchanging information so that the calendar and contact database on your mobile phone or PDA is easily synchronized with fixed network 'master' repositories, such as Microsoft Exchange. But mobile network operators aren't that keen on seeing the synchronization market develop separately from the network. For a start, synchronization is something that can be charged for, and if anyone's going to do any significant charging, network operators think it should be them. Secondly, there are obvious long-term threats for network operators from successful underlying synchronization architecture. Hardly surprising that rival synchronization approaches are seeking to build the same functionality (using the same standards) in such a way as to benefit the network operator. The idea is that users will be able to access a central and highly secure repository of their data without having to support their own central server infrastructure--this will be attractive to small-to-medium enterprises.