On October 23rd, 2014, we updated our
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Subscriber Information Core Services Network Services
Telcos have many valuable data assets MY PERSONAL DATA MY RELATIONSHIPS MY CREDIT Gender Address Name Profile MY INTERACTIONS MY DEVICES Preferences Location Presence Demographics SIM SoftSIM Pictures Videos Bank School Browsing History Bad debt MY STUFF MY IDENTIFIERS MY CONTEXT Cache Serial Number Device details Calendar Friends On/Off Number SIP address IP Address Email Domains Address Book Workplace Roaming Average balance
Addressing the long tail of the marketSON Enablement Core Services Services Developed in container against SON enabler APIs Trusted Applications in container requiring high performances and “permissions” Long tail services customization and usage is driven by loose composition and users: Web 2.0 using widgets and 3rd party applications Short Lived Applications Exploit wide pool of developer population to design services against enabler APIs (app store) 4400 new API-based services in the last 6 months ! 3rd party applications requiring lower level of permissions and capabilities Sales Revenue Mashups of widgets by third party with Web 2.0 applications Services 5
Service Applications Location Contacts Voice + + + Augmented Reality Browser Cloud Voice Social Address Book Carrier Provides “Location API” Carrier Provides “Social Sync API” Carrier Provides “PSTN API”
Network Applications Compute Last Mile Transport + + + Cloud Transmission Cloud Transport Cloud Cloning Carrier Provides “Connectivity API” Carrier Provides “Compute API” Carrier Provides “P2P API”
1:N Cloud (Elastic Compute) Control 1:1 Embedded Control BGP ISIS NAC ADC VM 1 VM 2 VM 3 VMn Virtual Server Real Estate Control Plane Data Path Data Path Switch Switch Stability Performance Scale Stability Scale Performance SVC 1 SVC 2 SVC 3 SVC n SVC 1 SVC 2 SVC 3 SVC n The Future Cloud Switching Services (NAC, ADC, End-Point Profiling) are run as virtual machines through an OpenFlow–patterned interface – Lower Opex, Lower Capex
Various types of ”understood” business models The online content business model (iPod, upgrades, information etc.) The freemium business model (Skype, Launchcast (Yahoo) etc.) The premium business model (IPTV) The professional open-source model (free software + consulting) Various distribution business models (through which channel the product/service is distributed)
Where Does Value Lie? Perceptions Differ Sharply Value in the Subscriber Verizon Wireless Sprint H3G Vodafone Vonage ARPU or Equivalent TIM China Mobile Value in the Community Yahoo! eBay Facebook YouTube Google Craigslist Skype Sling Media Number of Users
New Business Models In the last 2 years three new markets have been formed around new solution types App Stores Social Addressbooks Service Analytics New revenue models are being pioneered to exploit these markets Cost-per-follower (Twitter) Pay-per-app activation (Apple Appstore) Virtual Goods (Flirtomatic and Tencent) Wholesale (Amazon pays $2 to Sprint for every Kindle connection)
Telco 2.0 with SON Enables POWER VALUE LITE Evolved Business ModelsFrom “take what you are given” to “take what you want” 3. Context Services Mash Up Services Third Party Services $$$ 2. Enables Flat Rate Bundles B/W-based Tiered Services $$ $ Personal Communication Services Legal Download Services On-Deck Portal Services Security Services On-Demand QoS/BW Navigation 1. Basic Internet Service 10% consume 80% of B/w 0.5% consume about 40% of B/w 80% use less than 10% of B/w 12
Conclusion Service Oriented Networking is a Game Changer for Telco New technologies (CPUs, virtualization, dynamic network, LTE) have defined a starting point for the art of the possible The Carrier is transforming to a service and network cloud provider New business models are being created around the emerging solution markets Visit my blog at www.theinvisibleinternet.com
The LTE Tipping Point How long can you wait ? 15 LTE HSPA+ Average Throughput per Sector for 5 MHZ FDD (Mbps) HSPA Second 3G Carrier in 2010 Joint-analysis of 3G NA penetration, entry vs basic vs advanced profiles with outage criteria, & fair-use spectral efficiency within a single carrier-sector Increased Capacity Increased Spectral Efficiency Reduced Latency Active Users per Sector Entry BW User Basic BW User Advanced BW User
16 Understanding the Ux for Data Engineering Cell-Edge Beyond Voice Requirements 5.0 (MB) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 From Mobile Web 0.1 to 2.0 The Impatience Index Total Time Cell Edge GPRS 35 kbps 19.5 mins CDMA 1X 60 kbps 11.5 mins EDGE 115 kbps 6 mins UMTS 256 kbps 2.5 mins 400 kbps EV-DO 1.5 min 1.0 Mbps HSPA+ 40 secs 10 secs 4.0 Mbps LTE MP3 Rich Web Page You can’t have broadband without the user experience !