NATIONAL SERVICE NETWORK Telecommunication & Media regulation industry model Ivan Shmelev MBA, Ph.D.

Developing new wireless technologies, operators will be able to provide the High Speed Internet Access anywhere Operators face decreasing revenue from traditional voice services and they need to offer added value data services Customers are interested mostly in the Internet where myriad new services available for free The National Service Network (NSN) will open the doors to a new market opportunity Introduction for the Operator

Developing new wireless technologies, operators will be able to provide the High Speed Internet Access anywhere

Operators face decreasing revenue from traditional voice services and they need to offer added value data services

Customers are interested mostly in the Internet where myriad new services available for free

The National Service Network (NSN) will open the doors to a new market opportunity

By 2012 telecom services will be available to everyone, anywhere, at anytime on any device The Internet becomes an important method for governments, institutions and firms to provide services But, governments cannot control the flow of illegal on-line services and cannot guaranty the delivery of crucial social services through the Internet The National Service Network (NSN) gives governments an ability to regulate the on-line commercial activity Introduction for the Government

By 2012 telecom services will be available to everyone, anywhere, at anytime on any device

The Internet becomes an important method for governments, institutions and firms to provide services

But, governments cannot control the flow of illegal on-line services and cannot guaranty the delivery of crucial social services through the Internet

The National Service Network (NSN) gives governments an ability to regulate the on-line commercial activity

The Internet is the main source of information, communication and entertainment in personal daily life Technically the Internet does not guaranty the quality of services and information delivery The Internet could be a source of threats such as: personal information sharing, spam, viruses, abuse and swindle The National Service Network (NSN) allows to keep all Internet services but guaranty the service quality and information protection Introduction for the Customer

The Internet is the main source of information, communication and entertainment in personal daily life

Technically the Internet does not guaranty the quality of services and information delivery

The Internet could be a source of threats such as: personal information sharing, spam, viruses, abuse and swindle

The National Service Network (NSN) allows to keep all Internet services but guaranty the service quality and information protection

INDUSTRY OVERVIEW Telecommunication and Media

New wireless technologies make broadband available Anytime Anywhere 2007 2012 Source: www.internetworldstats.com Source: Informa Telecoms & Media Total connectivity by 2012 Broadband Wireless World Regions Population ( 2007 Est.) Internet usage Internet Penetration Usage growth 2000-2007 Africa 955,206,348 51,022,400 5.3 % 3.6 % Asia 3,776,181,949 529,701,704 14.0 % 37.6 % Europe 800,401,065 382,005,271 47.7 % 27.1 % Middle East 197,090,443 41,939,200 21.3 % 3.0 % North America 337,167,248 246,402,574 73.1 % 17.5 % Latin America 576,091,673 137,300,309 23.8 % 9.8 % Australia 33,981,562 19,353,462 57.0 % 1.4 % TOTAL 6,676,120,288 1,407,724,920 21.1 % 100.0 %

Industry Stakeholders Organizations Emergency Health care Regulators Institutions Transport Security Utilities Military GOVERNMENT Manufacturers Entertainment Corporations Resources Services Finance Retails Media SMB R&D BUSINESS Wireless Satellite Special FIBER Cable MVNO OPERATOR Households Individuals Travellers Societies Systems Devices CUSTOMER Telecom and Media industry is a cross of interests for different market participants

Organizations

Emergency

Health care

Regulators

Institutions

Transport

Security

Utilities

Military

Manufacturers

Entertainment

Corporations

Resources

Services

Finance

Retails

Media

SMB

R&D

Wireless

Satellite

Special

FIBER

Cable

MVNO

Households

Individuals

Travellers

Societies

Systems

Devices

Disadvantages of the Internet for Customers The thread of personal information such as name, address, credit card number could be shared The service delivery cannot be guaranteed Any issue on the Internet is hard to investigate Most of information in the Web are unofficial and false Vision advertisement pollution is not regulated

The thread of personal information such as name, address, credit card number could be shared

The service delivery cannot be guaranteed

Any issue on the Internet is hard to investigate

Most of information in the Web are unofficial and false

Vision advertisement pollution is not regulated

Disadvantages of the Internet for Government Governments are limited to officially launched innovation services, because their delivery is not guaranteed technically through the Internet Governments cannot control illegal businesses which are geographically located in other countries Governments` authority over the Internet is restricted to protect users against threads and scams The huge unsorted data flow doesn't allow governments to track terrorism and crime activity

Governments are limited to officially launched innovation services, because their delivery is not guaranteed technically through the Internet

Governments cannot control illegal businesses which are geographically located in other countries

Governments` authority over the Internet is restricted to protect users against threads and scams

The huge unsorted data flow doesn't allow governments to track terrorism and crime activity

Disadvantages of the Internet for Business Commercial data are not protected from theft, infection or deliberate erasure Copy rights can not be controlled on the Internet The Internet is unregulated market The Web does not guarantee the quality of services Uncontrollable usage of company`s resources uncontrollable

Commercial data are not protected from theft, infection or deliberate erasure

Copy rights can not be controlled on the Internet

The Internet is unregulated market

The Web does not guarantee the quality of services

Uncontrollable usage of company`s resources uncontrollable

Vendors tend to preinstall own on-line services on their devices ignoring operators` needs Content providers tend to provide services exploiting local networks using the Internet Disadvantages of the Internet for Operators Internet Internet

Locality of World Wide Web Most customers need only local services They use the Internet only because there is no other alternative Internet Services Local usage Global usage Shopping and Services 98% 2% News and Search 95% 5% Social Networks 80% 20% Music, Video, Files 70% 30% Communications 50% 50% Surfing 30% 70%

NATIONAL SERVICE NETWORK Telecommunication and Media

The service delivery has to be guarantied The personal information and copyrights has to be protected Commercial activity has to be regulated Any issue has to be argued Customers have to be authorized NATIONAL SERVICE NETWORK (NSN) Local, regulated infrastructure New network requirement GOVERNMENT BUSINESS OPERATOR CUSTOMER

The service delivery has to be guarantied

The personal information and copyrights has to be protected

Commercial activity has to be regulated

Any issue has to be argued

Customers have to be authorized

Current structure of the Internet Users Services There is not geographically identification Operators are responsible only for the access not for a content Customers pay both for the access and for services Users and services are not registered Operator1 Country2 Operator1 Country1 Devices Systems Internet Operator2 Country1

There is not geographically identification

Operators are responsible only for the access not for a content

Customers pay both for the access and for services

Users and services are not registered

Structure of the NSN National telecom infrastructure United service platform Services are regulated by the Government Access fee is a commodity regulated by the Government Users are authorized Services Users Technically it is the same network Difference in the regulation model NSN Operator1 Country1 Operator2 Country1 Devices Systems

National telecom infrastructure

United service platform

Services are regulated by the Government

Access fee is a commodity regulated by the Government

Users are authorized

Zoom: Structure of the NSN NSN Commercial and Government systems and Equipment Operator2 Operator1 Devices Devices

Every country has own National Service Network NSN connect to each other through government network interface (e-Custom) Zonal Global Network NSN NSN NSN NSN NSN NSN NSN NSN NSN NSN NSN NSN NSN NSN NSN NSN

Every country has own National Service Network

NSN connect to each other through government network interface (e-Custom)

PROJECT`S GOALS Telecommunication and Media

Benefits Establishes the platform for new regulated businesses and services Gets the green light to realize nationwide innovative services Diversifies by transforming from technical to content business Receives guarantied services and legal entertainment GOVERNMENT BUSINESS OPERATOR CUSTOMER

Any content: picture, video and text must to reference to a author Any payment must to be booked in official government server Any subscription and notification option has to been moderated Advertisement has to been regulated Services have to been licensed Users have to be responsible for their actions Quality of services have been standardised New rules

Any content: picture, video and text must to reference to a author

Any payment must to be booked in official government server

Any subscription and notification option has to been moderated

Advertisement has to been regulated

Services have to been licensed

Users have to be responsible for their actions

Quality of services have been standardised

JOB EXPERIENCE EDUCATION (416) 890-0037 Ivanshmelev @ gmail.com This presentation briefly describes the main concept of a new economics model for telecommunication and media industry. I am looking for an opportunity to continuing my work on this model within a telecom, regulator or research company. Please do not hesitate contact me. Thanks. Ivan V. Shmelev 2008 MBA , California State University 2004 Ph.D., Engineering telecom 1997 Master, Engineering telecom 2008 CEO, Strivan Consulting 2007 - 2008 Strategy Director, WiMAX operator 2005 - 2006 Telecom markets Expert 2004 - 200 5 Analyst and Consultant of telecom markets 1997 – 2004 Telecom Project Manager

THANK YOU Ivan Shmelev MBA, Ph.D.