Mobile Advertising Congress- Bucharest - Tekelec's Next Gen Messaging view and Mobile Advertising

1. May 26, 2011
Next Generation Mobile Messaging
New options for Advertising
Ronald Cornelisse
Senior Manager
Market Development - Mobile Messaging
Tekelec. For What’s Next.

2. Outline
› About Tekelec
› Market View
› Over The Top Players
› So What is Next?
› OMA – Converged IP Messaging
› Rich Communication Suite
› Examples of Rich Communications
› Conclusion
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3. Asset Manager for Customers Around the World
Tekelec’s portfolio manages the service providers’
most valuable assets :
• customer experience
•• subscriber profiles countries
300+ customers in 108
•• network resources largest wireless carriers
8 of 10 of the world’s
• 70% of all North American cable modem subscribers
• 300+ customers in 100+ countries
• One third of customers have 2 or more products
• 9 of 10 of the world’s largest wireless carriers
• 150+ Performance Management customers
•• 70% of allMessaging customers
59 Mobile North American cable modem subs
•• > 60+ Mobile Messaging Networks
30+ Policy customers
•• > 150+ Monitoring customerscustomers
20 Subscriber Data Management
• > 20+ Subscriber Data Management customers
• > 30+ Policy Customers
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4. Tekelec Next Generation Portfolio
Subscriber Data Management (SDM) Applications and Services Music
Downloads
Presence Network
EIR NP ENUM Server Address Book
Services and Video
Subscriber Chat/IM Social network
Data 3GPP HLR IMS/LTE HSS AAA Server
Gateway
Social
(Network, Service and Customer)
Networking
IP-SM-GW SMS Network
Performance Management
Web
Session Management Policy Management
Intelligent Service
PCRF BoD App
SSR DSR Manager
Control Broker
Plane
STP X-CSCF HLR Router MPE
Fixed 2G 3G 4G
Access Cable GPRS HSPA LTE
PIC
WiFi Femto
DSL
FTTx WiMAX
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5. Market View
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6. The Mobile Landscape
› Almost 5 billion global mobile consumers
› Smartphone sales up +50% recent Quarters with sales of over 60 million devices
 Nokia remains in the top Smartphone spot with ~ 40% of the market share (but declining)
• Trying to regain by announcing collaboration with Microsoft
 The iPhone app store hit 10 billion app downloads in Jan 2011
 Android biggest OS in the US…..and will expand leadership
› Mobile Application sales are estimated to generate $25 billion revenues by 2014
› Social Networking is ideally suited to be used mobile
› Mobile search becomes location aware
› Operators face mobile broadband challenges
› LTE around the corner…
Mobile Operates Need To Re-invent Their Position In This Dynamic Market
Sources: Mobile Data Association @ GM conference 06’10), Gartner, GSMA, Strategy Analytics, Apple, Juniper Research/ Appcelerator and IDC
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7. Informa view on SMS
› Reasons for revenue P2P decline:
 Bundles
 Regulatory
 Cannibalization
 Termination fees
› Strategies to address decline:
 Reduce Bundles
 Price promotions
 New Applications
• Social Networks, M2M
• Mobile Advertising
 New Technology
• Enabling new SMS services
• IP Messaging evolution
There Is More Live (& Revenue) In SMS When Using The Right Strategies
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8. Mobile Advertising
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9. Advertisers Shift Budget to Digital Media
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10. How are Advertisers using Mobile AdvertisingToday?
Mobile Internet Messaging Voice
Banners Video SMS Push MMS Push SMS Insert Ring Back Tones
Highly Pre-roll, post- Send text Send rich Insert ads Insert targeted
targeted roll or split messages media into text audio ads in caller
banners on screen to targeted messages messages ring back tones for
mobile targeted ads users to targeted to targeted mobile or fixed lines
websites users users
But is this still relevant in the OTT world?
Source: Original slide MADS & Tekelec
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11. A view on “Over the Top Players”
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12. It’s Not Just a Phone Anymore…
Google
Talk Server
Google
MAP Server
Facebook
Server
Netflix
Server
Bit Pipe
LTE Pipe Skype
Server
Yahoo IM
Server
Exchange
Server
Mobile
Operator Twitter
Server Server
And It’s Not Just the Operator Anymore…
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Next.

13. Social Network (SN) Reach
› Mobile Subscribers are more than 6x
the number of SN visitors:
 +830 M SN visitors
 Over +5B Mobile Subscribers – can
communicate with one another via
SMS
› SNs come and go while operator
networks are a constant:
 2008 – 73% SN time on MySpace
 2009 – 23% MySpace, 66% Facebook
 2010 BEBO disappeared
 2012 - Who's next to disappear?
› Rich Communication Suite (RCS)
 The stable Interoperable MNO
alternative
 Will launch in 2011/2012
Source: National Geographic Operators are the stable factor…Compared to SNs
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14. Can Operators Recreate the Success of SMS?
Success Factor SMS RCS Social Networks
Simple to use + + =
Reach + + -
Reliability + + -
Convenience + + -
Monetizable P2P + ? -
Monetizable A2P + + =
Rich Content - + +
Rich Experience - + +
Personal = + +
Interactive = + +
Operators are in a great position to take advantage
of the next step in Messaging
RCS = Rich Communication Suite
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15. An Emerging / Converged Business Model
OTT – WEB 2.0
• Max bandwidth at lowest cost Brands
Over-the-Top provider
• Off net payment models
• User-Generated Content
Advertising Agency
Data
$ Data Rev
client
client
client
Social
NW APIs
$
SMS/MMS
Providers Providers
Voice Client
Content
Voice Rev Operator Services
RCS Client Voice Messaging $
Smart Devices
$
Content
MNO – TELCO 2.0
RCS
• Secure distributed networks IMS
• Real-time user data
Payment processing capabilities
$ Interconnect Rev
Roaming Partners
• Trusted brand, Massive customer base
• Trusted Application and Content providers
Rich Communication Suite the way for MNOs to Stay
a Trusted Content and Advertisement Delivery Channel
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16. So What's Next?
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17. OMA – Converged IP Based Messaging (CPM) View
IP Multimedia Subsystem (IMS) / Multimedia Domain (MMD)
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18. OMA CPM Promises What Operators are Dreaming of
But Standards and Products are taking their time….so what to do?
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19. Rich Communications Suite
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20. GSMA RCS latest stats…
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21. Rich Communication Suite (RCS)
› Organized by a group of operators and vendors
 Define an evolution path to CPM to rapidly introduce new mobile
applications and services with iterative releases
 Taking advantage of the IP network environment of IMS and SIP
 Tekelec member since 1Q09, to help Next Gen Messaging
developments
› “Rich” features defined so far include
 Presence enabled address book synchronized to a network copy
• Launching pad for all kinds of communications
 Content sharing and file transfers in parallel with voice
call/messaging session
 IM Chat
 Support for multiple devices including PC/iPad type devices
 Geo-location included in presence
 Social network inter-working
› RCS defines voice, data, messaging and handset features
RCS Members have learned from the failed isolated MIM introductions
Interworking is Crucial to offer better reach than the OTT stove pipes
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22. Major announcement G5 @ MWC2011
› Clear Public endorsement of RCS by the G5
 Service Launch dates announced end 2011 & 1H12
› RCSe introduced to speed up roll-out
 To allow easy introduction – on more devices
• Out of the box RCS ready Handsets expected
• Large group endorsement will drive handset availability
 Interoperable IM is key
• Including Auto service discovery
 Presence info and Address book are optional
• To support faster roll-out, less NW engineering risks
The G5 have committed them selves to Launch RCS 2011/2012!
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23. What does RCS / RCSe do?
Legacy Messaging
Support Legacy HLR SMSC MMSC
SMS/MMS in IMS and
IM-Legacy I/W &
Broadband Access
IP-SM-GW (Optional) Presence
Interworking and Geo Location Info
RTR IIW Social
Networks
Multiple
devices per
HSS RCS account
Presence
Share info
with SNs
Instant Messaging
• 1-1
•Many-Many SN GW
•Storage
Clients
WEB UI
IM XDMS
Chat
UNI GW
Third Party Content Contact
IM Servers Address
Store Lists
Book
OMA DS • Content
Capabilities Network enabled • Ad’s
address book with contact lists
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24. GSMA RCS Release Overview
Release 1
Release 2
Release 3
Release 4
•SMS support as IM •Broadband client as •Messaging Evolution - SIP
•Broadband client
•MMS support primary device based messaging for
support
•Only in the case that standalone and multimedia
•MSRP support for chat •SMS MO support messaging
services only via an IP-SM- there is no mobile
device present •Conversational messaging
•Combined GW
with greater multiple
SMS/MMS client •Multiple Device •Two way SMS and
MMS device support
•Conversational Support
•Message storage
messaging for SMS •Mobile device is •Social Presence
and MMS Enhancements •Social presence
primary device
•Nicknames enhancements
•Enhanced Address •Multiple device
Book •User friendly URL •Network address book
synchronization via a
•Geo-location enhancements
•Social Presence CAB
• Subset of RCS Release 2 and •Media processing •LTE alignment
•Presence •Provisioning
Authorization •Presence not required for service offering
configuration of RCS enrichment
•(Auto) Service discovery through SIP
•Contacts with history •Translation
handsets and clients Options Tags
•Recently finalized DEC
RCSe
•Backup/Restore of • New services can be gracefully introduced •Image effects
contacts to a NAB via Optional capability polling 2010
•
syncML • IM Store & Forward
• IM 1-to1 & 1-to many chat
• IM Multi Device support
• Introduced in February 2011
Stacked Release Approach, enables Fast Introduction of New Features
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25. Some Examples – of Interaction with Content providers
Ecosystem partner
Winner of GSMA Innovation award
RCS Brings New Options for Interactive Advertising
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26. Summary & Conclusions
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27. So What Does This Mean For Advertisers?
› Trusted regional MNO Partners
 Providing an evolution path from legacy to IP based messaging
› Always reachable Mobile Consumers
 Different (and Multiple) devices
 Global interoperable service
• Just like SMS
 Same behavior, even when roaming
› Rich, Richer, Richest….
 Content support
 Multi Media
• Voice, Text, File, Image & Video support
 Presence & Geo Location data
› Simplicity
 Technology hidden for user
A Rich Interactive Advertising Experience, with Global Reach
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28. Thank You! …Questions?
Ronald Cornelisse
Market Development Mobile Messaging & M2M EAAA
Mobile: +31 645 218 706
E-mail: ronald.cornelisse@tekelec.com
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29. Backup
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30. Korea Telecom – Proof point and findings
› Launched interworked 3 MNO RCS-like service 1Q09
(KT branded – ShowMoov)
› Learnings:
 Prioritization & communication of device functions
and specifications to ensure global inter-operability
were crucial
• RCS provides for this today
 Simplified scenario to support legacy systems
• Using SMS & MMS
 Prioritization of presence elements is required
• Self-expression, Picture, LBS, etc.)
› Seamless experience design in multi-device
environment
 Including support of non IMS devices
 60% devices are using feature phones (Java VM, etc)
› After interworking launch and promotion:
 Over 50 times Increase in users
 100 times increase in traffic usage
Korean clip on SHOWmoov capabilites – click here
 New usage patterns appeared (chatting @ night)
Fast market Trial and Sharing of Key Findings was Essential for Success
Note: all operators had launched their own non-interworking RCS client before March 2009
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