Broadband with no Boundaries


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«Broadband with no boundaries: Providing a convincing user experience»: a report from Nokia Siemens Networks.

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Broadband with no Boundaries

  1. 1. White paper Nokia Siemens Networks Broadband with no boundaries Providing a convincing user experience
  2. 2. 02/16 Nokia Siemens Networks – Broadband with no boundaries Contents 03 1. Executive summary 04 2. Market trends – Opportunities and challenges 04 2.1 Broadband take off continues 05 2.2 Boundless competition puts pressure on revenues 06 2.3 Users are searching for a better usage experience 07 3. Defining the broadband service strategy – differentiation with superior user experience 08 3.1 Premium interactive multimedia services – beyond the traditional Internet 10 3.2 Ubiquitous high speed access – preparing for increasing speed and quality demands 13 3.3 Access independent service availability – making it simple for the user 15 4. Implementing broadband with Nokia Siemens Networks
  3. 3. At the same time, mobile data is entering the mass market. Improved broadband wireless access with I-HSPA and WiMAX will further enhance the user experience and foster wireless Internet usage. 1. Executive A mixture of wireless and wireline access gives maximum revenue, since users are always best connected, summary either for high definition IPTV at home or immediate upload of photo shoots from a real life context or spontaneous community chats with the most personal device: the mobile phone. This strategy results in competitiveness within the whole multi-play arena: Internet and TV, at home as well as on the move. Fixed and wireless technologies are Broadband Internet is the growth Premium interactive multimedia complementing each other. segment in the telecommunications services are the key revenue market. A dynamic evolution of drivers: Providers must define their Access independent service interactive and multimedia web Web2.0 strategy now. One option is to availability enables competitive applications under the umbrella of provide convenient access to Web2.0 differentiation: Despite the variety of Web2.0 is driving further broadband content and existing communities for use cases, users must perceive a deployments, both in fixed networks as their own subscribers and provide “single broadband service solution.” well as mobile. Web2.0 changes the additional value, based, for example, Access to personal services and character of the web, making it more on the subscriber’s location or profile. communities must be as simple as open, where users actively participate Another strategy is to establish own placing a voice call today. This kind of in communities and upload content communities and tie the community simplicity enables mass market themselves. The rapid diffusion of together with a blended multimedia usability and a much tighter subscriber broadband access lines allows new platform. Two mass services are an lock-in than is possible with pure premium applications to be used as ideal base for such a platform: commercial service bundles. The user potential sources of new revenue, as the Premium VoIP with its enhanced should automatically be always best exploding use of video shows. On the collaborative and multimedia functions connected with other hand, with broadband and IP, and IPTV, which provides more • continuous service between services become independent of the freedom of selection and interaction, different access types independent network. As a consequence, traditional even to rather inactive user segments. of the location market boundaries between fixed, If possible, this should be provided in • an adaptation to the requirements mobile, ISPs and telcos are breaking high definition quality. of different device and service down, leading to fierce competition – types – a video should be capable major Internet players with their large Ubiquitous high speed access will of being displayed on a mobile communities are threatening fixed and be a must for competitive survival: phone or a HD TV screen mobile providers, a threat combined The new services packages are more • a simple “push button” like access with a measurable drop in user loyalty. demanding in terms of instant to the personal service suite. Increasing churn is also a result of an availability, bandwidth, interactivity Basics like the user profile and uninspiring user experience, caused and content distribution. Broadband comfort functionality like presence, by insufficient data rates and wireless access can be offered in different location and automated terminal disconnection problems which are ways: Via DSL and PON technologies, configuration should be available mainly perceived at home. providing superior data rates, or via independently of the access type. HSPA and WiMAX, providing superior Key success factors for improving mobility. The dray-horse of the A sound broadband strategy is the key user satisfaction are top service broadband Internet segment is ADSL, success factor for further business performance, attractive service but bandwidth hungry applications growth, since it defines the use cases portfolios, always on ubiquitous high such as high definition IPTV, the of the subscribers, the possible ARPU speed broadband, high quality enhanced need for uplink capacity and finally the service provider’s multimedia content independent of driven by collaborative Web2.0 survival in an environment of location and last but not least, much applications like Web video and VoIP ceaseless competition. simpler in service access. User as well as the capacity need of requirements go far beyond existing enterprise customers, drive the demand commercial multi-play service bundles for bandwidth ever higher. This leads and so providers need to act in three to a ramp up of VDSL and brings fiber areas to offer a top user experience: much closer to the subscriber.
  4. 4. 04/16 Nokia Siemens Networks – Broadband with no boundaries 2. Market trends – Opportunities and challenges 2.1 Broadband take off Worldwide Service Provider Revenues (bn €) CAGR 2007–10 continues 1180 1230 1130 178 Mobile Data 18,6% Broadband 1080 154 Fixed broadband is booming, 1020 130 driven by increasing data rates, 107 85 118 126 new video applications and price 95 109 Fixed DSL+Internet 10,1% 79 56 38 44 50 erosion 31 40 35 31 28 44 The current dynamic evolution of Fixed Data IP/Enet 14,9% Internet services is offering a wealth of new business opportunities. New 495 436 452 368 482 collaborative and interactive web Fixed Data Legacy -11,1% applications under the umbrella of the so called Web2.0 are driving further Mobile Telephony 3,1% broadband deployments. 352 348 343 340 336 Fixed Telephony -1,1% A never-ending hunger for bandwidth is now driving the market. From 2003 to 2006, worldwide Internet traffic Source: Nokia/Nokia Siemens Networks July 2007, 2006 2007 2008 2009 2010 Yankee Group Fixed Revenue grew at a compounded annual growth rate of 75%. The exploding use of Figure 1. Broadband data is the growth segment in the telecommunications market. bandwidth hungry web video services and enterprise applications is filling broadband access networks and backbones. Spare capacity in the backbones is shrinking, backbone providers are continually extending Mobile Internet access is taking off number 1 application, with a huge their networks and prices for backbone and spreading to the mass market variety of application and content capacity are becoming more stable. After many years of unfulfilled types used and clear growth can be expectations and failed predictions, seen in the use of bandwidth The dray-horse in the broadband the mobile Internet is now entering the demanding photo and video related Internet segment will remain copper mass market, driven by Internet applications. based DSL, but bandwidth hungry browsing and e-mail. The key success applications like high definition IPTV, factors in this uptake are users’ ability demanding interactive Web2.0 to access all applications and content applications and the capacity needs of residing on the web, combined with enterprises, bring high capacity fiber true broadband speed. Worldwide much closer to the user. More and operator experience and Nokia more applications, such as office and Siemens Networks’ tracking of 3G community applications, as well as usage clearly show that the frequency content such as user generated of mobile Internet use, the session photo albums and personal blogs, length and diversity of applications are residing in the Web, increasing the used is affected by the speed of the need for fast access. connection. Internet browsing is the
  5. 5. 2.2 Boundless competition Expansion towards Quadruple-Play Offers Typical strategies puts pressure on revenues Mobile Fixed Broadband TV Voice Voice Internet With broadband and IP, services • Fixed and mobile broadband Internet Hybrid • Bundling with VoIP and home multimedia become network independent provider • Unification of Customer Relationship Management The rapid diffusion of broadband access allows new applications to be used as potential sources of new • Mobile only broadband on the move and at home revenues. On the other hand, there is Mobile • Hybrid strategy with additional fixed broadband offer no longer a prime contractor offering provider • PSTN substitution with home zone or DSL-based VoIP the whole service of access, application and bill. The user has, and wants, the freedom of choice of • MVNO launch Fixed • Fixed broadband with VoIP as complementary using the variety of applications made provider voice product available on the web. Telcos are • IPTV-based home multimedia massively attacked by the big Internet players, who are using their large user • MVNO launch base to offer network independent • Fixed broadband Internet with voice flat rate on top ISP • Own community setup communication services such as VoIP. Those players are constantly launching new applications to increase their communities and strengthen Figure 2. Market boundaries no longer exist. user loyalty. Multi-play service bundles redefine the market place – borders between The packages usually give the user the traditional market segments no the advantage of one-stop-shopping, longer exist a perceived discount on his entire To use their broadband bit pipes in monthly telecommunication and TV the best way, many providers offer spending and cost control due to a commercial multi-play packages single bill. consisting of high speed Internet access, voice, which can be either classic voice or VoIP, mobile telephony and TV services. Such bundles are offered by all types of providers, such as MNOs, FNOs, ISPs and cable operators, independent of which market segment they have originally focused on.
  6. 6. 06/16 Nokia Siemens Networks – Broadband with no boundaries 2.3 Users are searching for The most influential factors for using broadband content services (Italy and UK) a better usage experience Pricing of services 69% Ease of access 43% User loyalty is decreasing strongly in Speed of downloading 31% the fixed as well as in the mobile market segment. One reason for this Speed of browsing 28% is that competition is predominantly Quality of image and sound 23% based on cheap flat rate prices and Up-to-date service content 22% nominal data rates. Today’s broadband Variety of content service category/topics 19% packages incorporate the risk for the provider of just being “me too” and Network quality or reception 14% Prompted – Top mentions therefore being directly comparable Popularity of services 9% with other providers. Limited Variety of information within content service category 7% subscriber retention is producing Knowledge of the benefits/information of the service 6% price based competition, leading to steady erosion of the price per Mbyte. Speed of video/audio streaming 5% Ability to download to phone and PC at same time/cost 4% Base: All who have ever used Additionally, subscribers are to a Word-of-mouth of services 3% any content service (N=362) certain extent dissatisfied with the quality of data service, the service Figure 3. User experience: simplicity, quality, speed and ubiquitous availability are vital. portfolio offered, the bundling and the coverage. Besides price, service quality is the most important barrier in day-to-day wireless broadband usage. Users most often mention issues with the stability of the User research clearly points out users’ connection, speed and the video key buying criteria in the area of quality. The most evident wireless broadband services: simplicity of disconnection problems occur at access, speed, quality of multimedia home, putting wireless providers in a content presentation, ubiquitous bad position in the competition for availability and the content itself. home services. In addition, there is already significant use of and healthy In other words, three of the users’ interest in high quality TV services, questions need to be answered in a another indicator of the demand for convincing manner: premium quality and service content. • Why should I use it? • Where can I use it and how fast is it? • How complicated is it?
  7. 7. 3. Defining the broadband service strategy – differentiation with superior user experience With decreasing growth rates in the Broadband multiplay arena User willingness-to-pay in % At home/office traditional voice segment, different provider types are competing with Stationary Internet access IPTV home infotainment each other for users’ entire (including basic VoIP) telecommunication and infotainment budget. In order to maximize their 35% share, the providers must cover 20% different use cases: at home and on Differentation & Up Sell the move, Internet applications and • Premium VoIP • Web2.0 everywhere more TV style infotainment. • Multi-accees TV Internet TV In this broadband multi-play arena, 15% stationary Internet use, including voice at home or in the office, provides 25% the largest addressable ARPU for 5% communication providers, since most application use, from voice to intensive Mobile Internet access Mobile TV high speed Internet, takes place at home. Once stationary broadband is On the move covered, there is a big business opportunity to provide a fully fledged Figure 4. Offer a variety of broadband use cases to win maximum share of the subscriber’s budget. home entertainment solution. Users are willing to pay for premium content combined with interactivity and thus How to gain the provider is able to enlarge his user a competitive base with more TV style users. Since multi-play strategies are today advantage? a common practice, the question is, As large numbers of users want to be how sustainable will current strategies t?” “W always on in order to stay connected be in the mid-term. Providers have to is i hy ilit nt Pr ltim with relevant content and their peers, differentiate themselves by providing ted mu de y em ed sh Internet and TV on the move is a a better user experience than the lica av pen ou ium ia ab ld key differentiator. The stationary use competition. Competitive advantages mp ce de ail Iu int serv co rvi in cases promise more ARPU, but can be gained by simultaneously se era ice se ss Multi- ow communication and infotainment on offering it? ce cti s play “H ” the move is essential for subscriber • Premium interactive multimedia Ac ve acquisition and retention, providing a services seamless usage experience. • Ubiquitous high speed access Ubiquitous A convincing multi-screen service • Access independent service high speed access strategy prevents pure price management. competition, such as can be seen in “How fast is it? Where can I use it?” the highly competitive and saturated Internet and mobile markets. Figure 5. The competitive advantage for service providers – offering premium services ubiquitously and simply.
  8. 8. 08/16 Nokia Siemens Networks – Broadband with no boundaries 3.1 Premium interactive It is now time for broadband providers For these reasons, many incumbent multimedia services – to define their Web2.0 strategy: providers are offering VoIP services in beyond the traditional Internet • One option is to act as a third party parallel to their classic offerings and Web2.0 aggregator, focusing on bundling them with broadband access. Profiting from the Web2.0 the enrichment and aggregation of A strong uptake of flat rate VoIP paradigm shift Web2.0 content and applications for services and the rollout of wireless Web2.0 is the name of a new their own subscribers. The key broadband will also increase the price generation of web services, which can success factor is to offer a pressure on MNOs even more. be characterized as more open, preconfigured convenient access to Already today, the average VoIP user flexible and participatory in terms of the largest existing communities in Western Europe generates more creating content, applications and and use additional features such than 300 minutes per month, whereas business models. Many users are as location dependency. the mobile user generates about changing from passive consumers • A different method is to establish 150 minutes with mobile voice calls. and content retrievers towards active communities. The key is to provide The heavy growth of VoIP users and “prosumers”, who share their self blended multi-media traffic indicates a market revolution. generated or self selected content communication channels, tying the How can service providers earn with other users having similar community together and fostering additional revenues with VoIP? interests. The value of this uploaded intense communication. • Incumbent providers can leverage content increases through the tags their existing assets by providing and comments of interested peers Facilitation of communities VoIP to their existing customer and it is natural for peers with the with enhanced VoIP based base, especially to high profile same interests to form a community. communication customers like enterprises. Well established communities create Many of the largest communities are • VoIP can drive broadband business. a huge amount of traffic, especially if currently tied together with VoIP. VoIP Packaging VoIP with broadband is video sharing is involved. In many is the routing of voice conversations an unbeatable combination. markets, around about half the mobile over an IP based network, mainly the • VoIP is a service enabler and users are already members of an Internet. Broadband access and allows up-selling into the application online community, with most of them VoIP application are separate, and so domain. Combined with actively sharing self-generated the access provider is used only as a differentiating functionality like content. bit pipe. presence, video and collaborative features, VoIP is ideal for the Broadband boosts the specific user Aided by widespread broadband participatory context of Web2.0. benefits of Web2.0 even further: coverage, VoIP is being taken up A premium IP communication Users are always connected with their quickly. On its introduction, VoIP was bundle is an effective means to community, they are always aware of more of an inconvenient niche establish a provider’s own Web2.0 what is going on and they get the application for technology savvy early communities and win market share. latest news. They can immediately adopters and the main differentiator • Due to its network independence, take photos or videos and put them has been the price. In the meantime, service providers can extend their directly onto the web and perform VoIP has achieved mass market market reach with VoIP by out-of- online games. Last but not least they status and has already grabbed large region plays and fixed mobile can chat with their most personal pieces of the fixed telephony cake. convergence packages using device: the mobile phone. VoIP players are also successfully numerous fixed and mobile access providing new services around VoIP. network types.
  9. 9. • The brand can be prepared for the A consequence of these trends is In parallel, mobile TV services are also future, since with no VoIP offering, IPTV. This is the label for multimedia gaining momentum. Following the first there is a risk of being viewed as a services, such as TV, video, audio, commercial launches of DVB-H technology laggard. Being perceived text, pictures and data transmitted networks, high-quality mobile TV can as an “innovator” is better than over IP based networks with the also be offered to the mass market via having the image of a “dino-vator.” necessary premium visual and audio a wide range of compatible handsets • On the downside, incumbents are quality, security, interactivity and from all major phone manufacturers. facing substitutional effects, since reliability. IPTV can be used from any User acceptance potential is also profitable classic voice is device with Internet access. Typical there – according to Nokia Siemens cannibalized to a certain extent. components of IPTV are: Networks’ user research, more than • Video on Demand: Users are able 60% of mobile users worldwide are To sum it up: VoIP provides an excellent to interact via the backchannel and interested in Mobile TV. There is a basis for a provider’s own Web2.0 like they are able to use video recorder great need for different use cases, communities. Some classic voice like functions. Users are able to such as live TV, video on demand and cannibalization is inevitable but there select content flexibly or it can be video download. About half of the is anyhow a high risk of losing the selected automatically according to target users would use the service on subscriber base to other VoIP players. their preference profile. a daily basis. Mobile Entertainment • Internet access, electronic (TV plus music) accounts for more IPTV as interactive broadband program, video telephony, chat, than 50% of the users’ willingness-to- mass service E-commerce pay for mobile data services. Beside voice and the Internet, TV is the • Web2.0 features for a high degree most widespread medium worldwide. of interactivity and personalization In contrast to other communication such as setting up individual services and media, TV is also used playlists and upload of videos among people with a rather inactive lifestyle. But the passiveness of TV is Premium quality TV and video content changing and the recipients want the combined with the interactivity and freedom to choose the content they personalization of Web2.0 enables a like, to consume it when and where totally new kind of user experience. they like. Changes in user behaviour In this sense, IPTV is the premium are largely driven by Web2.0 video Web2.0 service package suitable for services where users are uploading and the mass market. As a result, the take consuming content very selectively. up rates of IPTV are promising – On the other hand, TV broadcasters in advanced markets such as Western are offering their broadcast content Europe, IPTV penetration rose from piece by piece on the web, from where 1.2% in 2005 to 3.1% in 2006. North it can be retrieved selectively by the America and Asia Pacific show 4.9% users at the time and location they and 2% penetration respectively prefer. At the same time, user (Strategy Analytics, 2006). Over 100 expectations regarding video and service providers globally offer IPTV, audio quality are steadily rising – ranging from live multi-channel TV to HDTV quality is state of the art, setting Video on Demand and rich interactive the benchmark for all video services. services (Jupiter Research, 2006).
  10. 10. 10/16 Nokia Siemens Networks – Broadband with no boundaries 3.2 Ubiquitous high speed Broadband downstream evolution in Germany access – preparing for increasing speed and quality Time Volume Flat based based rate Charging demands method x Cent/minute 1 GB/month 4 GB/month Snowball effect: Bandwidth growth stimulates usage which again 2 GB/month 10 GB/month fosters bandwidth demand New Web2.0 enabled multimedia, 1 Mb/s as well as ordinary Internet access, 4 Mb/s Transfer offered need sufficient bandwidth at the so 1,5 Mb/s 50 Mb/s called first as well as at the second 768 kbit/s 12 Mb/s 2 Mb/s 100 Mb/s mile. User expectations have grown 25 Mb/s quickly during the last decade of 3 Mb/s Internet boom. Starting with analog modems, it was a great user experience to retrieve rather poor text 2000... 2002... 2004... 2008 based content via two combined ISDN channels. After that, copper based ADSL set the benchmark: our user Figure 6. Slow initial DSL adoption was boosted with increased bandwidth, flat-rate offers and service bundles. research during the first ADSL field trial in 1997/98 clearly uncovered user inspiration of this first mass market broadband technology. State-of-the-art downstream bandwidth was 1Mbit/s or less. Nowadays, entry packages becomes used to HDTV can only be and YouTube has shown that start with 2Mbit/s, 6Mbit/s is common met by VDSL speed of up to 100Mbit/s uploading of user generated content is and up to 20Mbit/s is offered at the in either direction. ADSL is an exploding. Further developments high end with ADSL2plus. Also, asymmetric access technology with a within VDSL and fiber based PON developments in pricing reflect the downstream to upstream performance (Passive Optical Networks) enhanced user expectations regarding ratio of 10:1 and therefore well suited technologies such as BPON, GEPON speed and data volume, moving from for traditional Internet access. VDSL or GPON provide a nearly unlimited time based prices over volume based with its 1:1 ratio is advantageous for performance at a significant higher with growing thresholds towards flat enhanced user uploads and network reach. PON is a very cost rates. interactivity in the context of Web2.0, effective technology which shares fiber including HDTV IPTV with multiple between different users. The Optical Providers must prepare their high-definition TV channels, high Line Terminal (OLT) which is placed in broadband access strategy to cope speed Internet access and premium the Central Office connects the access with more demanding services VoIP in parallel. network to the aggregation Network. and changing usage behaviour The user is connected to the network Whereas ADSL2plus provides the In the past, users were only via the Optical Network Termination entry card into IPTV, the quality evaluating the downstream capacity. (ONT) which is available in different demands of a user generation that The enormous success of MySpace variants for FTTH (Fiber to the Home)
  11. 11. or FTTB (Fiber to the Building). a limited reachability was normal in An alternative to HSPA/LTE is WiMAX Between the OLT and the ONT, business life. Today’s standard is to which is providing wireless broadband the signal is distributed through be reachable at any time, at any over long distances in a variety of passive splitters with splitting factors place by phone, SMS and e-mail, ways, from point-to-point links to full of up to 1:64. This point-to-multi-point leading to the requirement of mobile cellular access. WiMAX and technology results in a very efficient continuous Internet access. In addition HSPA/LTE have been developed in use of fiber and minimizes the ubiquitous access is required in white parallel and show similar performance number of central office ports, making spot areas where the use of wireline characteristics for comparable PON commercially very attractive. technologies is economically not scenarios. Temporary advantages of With GPON, symmetrical data rates feasible, for example in remote areas the one over the other exist, but are of 100 Mbits/s can be achieved over with long copper lines. not mission critical. Both technologies distances of 20 km. will co-exist in the market each Both use cases can be covered with addressing segments with 100+ million The following considerations illustrate real wireless broadband coverage by CPEs. WiMAX provides an interesting the need for service providers to upgrading 3G networks with HSDPA, option for BWA new entrants with an include VDSL speeds or greater in providing maximum downlink data Internet centric services offering. their service packages – about one rates of 14.4Mbps and HSUPA, third of today’s global Internet traffic enabling uplink rates of up to already consists of bandwidth 5.76Mbps. With HSPA+, maximum hungry video services – which data rates are growing towards affects the required downlink as well 28.8 Mbps at the downlink with an as the uplink capacity – with a upside potential of 43.2Mbps and strong growth tendency. A video in 11.5Mbps at the uplink. Additionally, normal quality tailored to a PC or the flat I-HSPA network architecture TV-display consumes 50 to 100 times clearly improves the user experience more bandwidth than pure sound by lowering latencies with its flat (700 kbps–3 Mbps compared to architecture. The robust and efficient 15–30 kbps for VoIP). High definition HSPA radio interface implements video, which consumes up to 10 times extremely high peak rate and fast more bandwidth than normal video channel set-up times suitable for new (6–15 Mbps compared to previous truly real time applications. The I-HSPA 700 kbps–3 Mbps) boosts the required simplified network architecture results access speed further towards VDSL in a shortened round trip and channel and beyond. set-up time. The system latency is as important as the actual peak rate for Ubiquitous high speed access is a many IP based applications such as major differentiator in the market video, fast e-mail synchronization, Users demand broadband Internet real time gaming and VoIP. Target access on the move. Beside the Round Trip Time for I-HSPA is about increasing capacity and quality 25 ms, which gives significant requirements of the end users, the need improvements compared to a to be always on has been increasing maximum of 120ms typically achieved at the same time. Ten years ago, in HSDPA networks today.
  12. 12. 12/16 Nokia Siemens Networks – Broadband with no boundaries Service strategy Voice Internet TV Multi channel HD TV xPON Fixed home entertainment Home & Premium IP The broadband access strategy office VDSL communication Web2.0 optimization IPTV determines the provider’s service portfolio and value proposition ADSL Enhanced VoIP Fast Internet Web TV True broadband access can be offered Access Premium IP in different ways: Via DSL and PON LTE* communication Web2.0 optimization Mobile IPTV technologies, providing superior data WiMAX Fast streaming & rates or via wireless HSPA and Mobile HSPA* Enhanced VoIP Web2.0 download WiMAX providing superior mobility. Home & office & Streaming & on the move 3G* Classic mobile voice Internet access download The stationary “high capacity pipe” *microcell coverage optional strategy focuses on a bandwidth evolution from ADSL towards VDSL Residential broadband – Bandwidth optimized and PON, optimizing down- and Broadband Mobile broadband – Mobility and coverage optimized access strategy uplink data rates to a sufficient level Always best connected – Bandwidth and mobility optimized for interactive Web2.0 and high definition IPTV. This strategy is limited Figure 7. The broadband access strategy determines the service portfolio and value proposition. to the home and office market and mainly applied by FNOs and ISPs. Residential broadband Mobile broadband Always best connected Use cases / – • Home, except remote areas + • Home + • Home Coverage • Office, except remote areas • Office • Office • On the move • On the move Capacity & + • Premium with VDSL and xPON – • Severe limitations with pure 3G + • Premium with VDSL and xPON quality • HSPA & WiMAX are acceptable on the deployment at home move • Acceptable quality and speed on the • Inhouse radio degradation move Service o • Full suite up to HD IPTV at home o • HD IPTV not possible + • Entire suite up to HD IPTV at home range • Mobile applications available • Mobile applications available User – • User is disconnected on the move from + • Same cellular device at home and on + • Services always available at best convenience major services the move possible quality • Different voice phones • Simple movements • Voice at home over cellular or fixed phone Target o • Stationary Internet users only – • Highly mobile users with limited + • Highly mobile users with intensive segments multimedia usage at home broadband usage at home Revenue o • Limited to classical @home usage o • Limited due to service range constraints + • Entire market for broadband and potential • Upsell with high bandwidth services like and bandwidth disadvantage for broadcasting addressable IPTV stationary usage Figure 8. Assessment of different access strategies.
  13. 13. Broadband use cases Target user experience: Single broadband solution Location Service Categories User devices Quality infotainment for relaxation • HDTV and HiFi capable home At • Video & Music entertainment solution • Web2.0 style multimedia • PC / Notebook home communication • Mobile phone The “mobile broadband” strategy of • Internet access • Smartphone many MNOs aims at upgrading 3G networks towards HSPA or introducing Stay connected and bridge time • Mobile phone On the • Mobile office including email • Smartphone WiMAX to drive wireless Internet • Web2.0 style communication • Notebook access on the move but also at home. move • Infotainment with focus on games In many markets, MNOs position and music HSPA as a DSL substitute. With single macrocell coverage, some in house Efficient and secure work • PC / Notebook At the • Internet/Intranet access • Smartphone radio degradation occurs if Femto • Office applications • Mobile phone solutions are not in place and office compelling high definition services for the home are not possible. Figure 9. Users want a single broadband solution regardless of the use case. A mixture of both strategies gives maximum revenue, since users are “always best connected”, giving competitive advantage to the provider within the whole broadband multi-play arena. Fixed and wireless technologies also complement each other. At home, 3.3 Access independent A major deterrence to adoption and a users can freely choose whether service availability – making it good user experience is complexity. they prefer, for example, music simple for the user Getting access to the personal downloads and private chats on their communities and services must be as personal mobile device or the fully High speed access to premium uncomplicated as placing a voice call. fledged home entertainment center. Web2.0 services helps achieve an But today’s users are often confused Many MNOs follow this approach, inspiring user experience and in the face of an exploding variety of combining their mobile Internet sustainable competitive advantages services, bundles, applications, offering with DSL. On the other hand, for the provider that results in content and technologies: “How can I FNOs as well as ISPs can act as increased customer lifetime value. use all the services I used to have at MVNOs. Hybrid providers can upgrade However, this is not sufficient on its home on the mobile? Does my device their existing wireline and wireless own. The different wireline and mobile support the service? Do I need a access networks with broadband broadband access pipes must be specific software client? If yes, how do technology. The challenge is to unify combined into a single broadband I install it? Is the security guaranteed? the often separate Customer solution for the user, hiding all the What is the password for this Relationship Management for fixed network complexity. application? What are the costs of this and mobile that resulted from the particular service? The typical disintegration trend of a few years ago. considerations are what, where, how Strengths and weaknesses of the and how much. If a service provider different access strategies from a has a simple answer, his competitive revenue perspective are discussed in advantage is sustainable. detail in Figure 8.
  14. 14. 14/16 Nokia Siemens Networks – Broadband with no boundaries How complicated is it? Is it as easy as a voice call? “Do I have to worry “What about the quality “How can I access about where I am?” and usability?” the service?” Always... Seamless mobility in the sense of roaming and handover between • Service continuity between • Service adapted for • Personal service suite different access types, e.g. DSL different access networks different screens, and features available at when he is at home and HSPA if he is • Without any user especially video a single interface on the move, is a key differentiator: intervention • Best of breed broadband • Comfort functions like No call disruptions, no new log-ins • Without interruptions technologies and presence, location, identity and always connected to the personal bandwidth management and cost transparency application and content suite. The user seamlessly available does not have to care about the location. All subscribed services can Always... Best... connected be used anywhere. Best... The capabilities of different broadband Independency of service and location access technologies and device types must be considered automatically. Most Figure 10. Access independent service management leaves the user always best connected. evident adaptation needs exist within videos, since different qualities ranging from mobile TV on an ordinary mobile phone to high definition TV on a large flat screen at home must be supported. In order to ensure high speed connectivity, particularly for real-time applications, providers must implement Connected In a typical always best connected an efficient bandwidth management. The Internet and the personal service scenario, users can for example Providers stay in control of the traffic suite should be made accessible at a select and buy IPTV program content by differentiating applications with single point. Basics like the user on the move and start watching it on Deep Packet Inspection and profile and comfort functionality like their mobile phone. Users can also prioritizing different traffic types. presence, location and automated program all VCR functions on their Bandwidth allocated for, for example, terminal configuration should be made mobile device. Arriving home, the user greedy file sharing applications can available independently of the access can seamlessly continue watching, be limited to allow an optimal use of type. In order to integrate different but now in HD quality on his TV set scarce network resources. Traffic applications into one service, a single where he can also answer the latest differentiation according to criteria user centric charging policy should be e-mail message. Due to the simplicity, such as subscription, access network in place. This also allows for efficient access independent service availability type, application used or time of day, charging of up sells. provides a much tighter lock-in than also enables a variety of charging pure commercial service bundles. schemes. Step based charging and on-line subscriptions can be applied to encourage service usage among different user groups.
  15. 15. 4. Implementing broadband with Nokia Siemens Networks Nokia Siemens Networks’ portfolio of Far beyond connectivity, Nokia fixed and wireless broadband access Siemens Networks has a proven track solutions is the widest in the industry, record on VoIP and IPTV solutions as ranging from all DSL variants to well as on other off-the shelf different fiber options. In the wireless applications designed for a rich and area, Nokia Siemens Networks is able convenient user experience and to offer HSPA with a clear evolution providing an open framework for new path towards LTE as well as WiMAX applications. The Nokia Siemens as a complementary technology. Networks IMS and FMC solution Together with the experience of provide all components for providing numerous successful implementations, the seamless user experience of customers can count on us to select being always best connected, the best solution and evolution path, independent of the specific fixed or while also taking cost items, existing wireless access network. assets and synergies into account during the migration. The Nokia In addition, our market insights, based Siemens Intelligent Connectivity on permanent customer business concept supports all kinds of user talks, the presence in all important applications over copper and fiber in industry fora and our systematic a most simple and cost-effective way. market research help service providers It guarantees the migration to an end- ensure that new broadband offers are to-end packet infrastructure, such as compelling, useful and easy to access. voice migration and ensures fast and reliable end-to-end services. The contents of this document are copyright © 2008 Nokia Siemens Networks. All rights reserved. A license is hereby granted to download and print a copy of this document for personal use only. No other license to any other intellectual property rights is granted herein. Unless expressly permitted herein, reproduction, transfer, distribution or storage of part or all of the contents in any form without the prior written permission of Nokia Siemens Networks is prohibited. The content of this document is provided “AS IS”, without warranties of any kind with regards its accuracy or reliability, and specifically excluding all implied warranties, for example of merchantability, fitness for purpose, title and non-infringement. In no event shall Nokia Siemens Networks be liable for any special, indirect or consequential damages, or any damages whatsoever resulting form loss of use, data or profits, arising out of or in connection with the use of the document. Nokia Siemens Networks reserves the right to revise the document or withdraw it at any time without prior notice. Nokia Siemens Networks and the Wave-logo are registered trademarks of Nokia Siemens Networks. Nokia Siemens Networks product names are either trademarks or registered trademarks of Nokia Siemens Networks. Other product and company names mentioned herein may be trademarks or trade names of their respective owners.
  16. 16. Nokia Siemens Networks Corporation P.O. Box 1 FI-02022 NOKIA SIEMENS NETWORKS Finland Visiting address: Karaportti 3, ESPOO, Finland Switchboard +358 71 400 4000 (Finland) Switchboard +49 89 5159 01 (Germany) Copyright © 2008 Nokia Siemens Networks. All rights reserved. Nokia Siemens Networks and the wave logo are registered trademarks of Nokia Siemens Networks. Other company and product names mentioned herein may be trademarks or trade names of their respective owners. Products and solutions herein are subject to change without notice. Product code B301-00182-RE-200801-1-EN – Indivisual