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LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

Creating New Ecosystems For Enterin...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

Topics
• New Services Opportunities...
bw

LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

Factors disrupting the Telecom ...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

The Revenue Paradox
The Revenue Par...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

A Warning
• New Mobile Networks wil...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

Other Network Paradoxes

Pervasive ...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

We are here!

Advertising
Model
Inf...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

De-Perimeterization of Services
Bus...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

Two Operators Problems

€

Revenue
...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

Two approaches
Lean Operator

Smart...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

New Classes of Services
• Internet ...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

These Services Challenge the curren...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

Lean Core and Smart Edge: towards a...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

A New Ecosystem is possible
• The O...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

A Network of Networks

Grids

R. Mi...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

Enabling technologies for Resource-...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

The Inner Circle (Network of Networ...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

About applications

www.gapinvoid.c...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

Instead of running after Competitor...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

Some Tips
• Differentiation between...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

Augmented Reality
• Adding new info...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

Internet of Things

• Each Resource...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

Initial Observations on Economics, ...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

All-IP can be an enabler for Social...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

E-government
• Plenty of services !...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

http://www.turkcell.com.tr/en/About...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

From Closed User Groups to Virtual ...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

GRID Computing (not Cloud Computing...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

What Role for Operators ?
• New Net...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

http://www.oiforum.com/public/docum...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

Choose Your Role and Your Network (...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

Choose Your Role and Your Network (...
LTE World Summit 2011
Creating New Ecosystems for Entering in Non Traditional Markets

Thank you!

Roberto Minerva

TORINO...
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Creating New Ecosystems For Entering Non Traditional Markets

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Presented by Roberto Minerva
Telecom Italia Future Centre
LTE World Summit 2011

Published in: Technology, Business
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Transcript of "Creating New Ecosystems For Entering Non Traditional Markets"

  1. 1. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets Creating New Ecosystems For Entering Non Traditional Markets Roberto Minerva Telecom Italia Future Centre www.gapinvoid.com R. Minerva, Telecom Italia / Future Centre 1
  2. 2. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets Topics • New Services Opportunities for Operators and the need to anticipate the Competitors – Social Media, Extended Reality, Internet Of Things, e-Governement • Differentiating between business and mass market opportunities and leveraging traditional services for the business market • De-perimeterization of services on the mass market side - creation of an ecosystem where users can be providers themselves • Examining the impact of new services on the network: how to be a lean and a smart operator R. Minerva, Telecom Italia / Future Centre
  3. 3. bw LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets Factors disrupting the Telecom Industry Yesterday Cost of Call = f (t, bw, d) Today Cost of Call = const Cost of Byte/sec @ 0 WHY ? • New Data Services with a very low tariffs for services with a high bytes/sec ratio • Competition – In the Past, Telcos had a strict control on three features of the communication: Bandwidth (64kb/s), Duration (minutes) and Distance – Competition is harsh from other Telcos • A Technological Paradigm Shift – Costs of equipments and technology are reducing – IP paradigm adoption and data convergence (e.g., voice is a data service) – Value of end points and terminals R. Minerva, Telecom Italia / Future Centre d t t= time bw= bandwidth d = distance Harsh Competition on Tariffs Technological “spiral” similar to electronics industry (sort of Moore Law) OTTs are an effect and not the cause of the turmoil !
  4. 4. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets The Revenue Paradox The Revenue Paradox Relativity, M.C. Escher Source: wikipedia.org the more capacity offered by the network the less it produces revenues!!! Not in scale $ Voice Usage Revenue Voice Usage ARPU Broadband Mbyte price 0 Now Wireless Broadband t R. Minerva, Telecom Italia / Future Centre 0 Now Not in scale t
  5. 5. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets A Warning • New Mobile Networks will enter into the “cost of byte/sec = 0” tunnel? • Will services on these network compensate for lower revenues in transport? R. Minerva, Telecom Italia / Future Centre
  6. 6. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets Other Network Paradoxes Pervasive Communication Paradox the more the communication is available and cheap, the more it is pervasive M.C. Escher, Waterfall 1961 Source: wikipedia.org New highly Pervasive Services !!! R. Minerva, Telecom Italia / Future Centre
  7. 7. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets We are here! Advertising Model Infomediary Model Subscription Model Utility Model Merchant Model Manufacturer Model •Challenge Market Areas •Try new Business Models •Create new Ecosystems R. Minerva, Telecom Italia / Future Centre Affiliate Model Community Model http://digitalenterprise.org/models/models.html http://www.research.ibm.com/journal/sj/431/rappa.pdf What Business Models for Telcos ? Brokerage Model
  8. 8. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets De-Perimeterization of Services Business Model Paradox • what is a valuable (and billable) service for an Operator, is a service given for free by WebCos • New Global Services • New offering made possible by pervasive communication • De-perimeterization of Services • New service markets Business Span Paradox • the services provided by an Operator are local, Services provided by WebCos are global R. Minerva, Telecom Italia / Future Centre • Entering into new markets with a disruptive value proposition • Take advantage of a Regional presence
  9. 9. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets Two Operators Problems € Revenue New Services New Revenue Streams SMART OPERATOR Cut Costs Optimize LEAN OPERATOR Bit Pipe t 2015 R. Minerva, Telecom Italia / Future Centre
  10. 10. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets Two approaches Lean Operator Smart Operator • Networks will become highly dynamic Complex Systems made out of many heterogeneous networks, systems and intelligent endpoints • Complexity will result in: • Decoupling Services from the Network • • • Costly infrastructure difficult to install, manage and integrate Lack of optimization of usage of resources Lack of knowledge of the “network" as a whole and how it is globally and locally behaving in supporting customers requests 0-Touch Networks R. Minerva, Telecom Italia / Future Centre • • Global reach independent of the access network; mashup of local and global resources (Net of Nets) • Provide Global Services • • the long tail is much bigger because the marginal costs of a global solution are smaller (Skype: the costs for building a global software are marginal) De-perimeterization of Services
  11. 11. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets New Classes of Services • Internet of Things Smart Operator • Extended Reality • Social Media • e-Government Lean Operator • Always Best Connected (ABC) • Evolution of VPNs R. Minerva, Telecom Italia / Future Centre
  12. 12. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets These Services Challenge the current Network Things Storage • Pervasiveness • High distribution • Complete decentralization • New communication paradigms • Opportunistic and dynamic usage of resources and networks Communication • Integration of processing, storage, communication and “sensing” Processing • Future networks should be able to master complexity, be cost-effective and seamless R. Minerva, Telecom Italia / Future Centre
  13. 13. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets Lean Core and Smart Edge: towards a Network of Networks A Simple Core Network that offers valuable functionalities as Core Network to increasingly complex Edge networks: •Identity •Brokering of resources •Virtual Organizations •Connectivity on demand •... Flat, simple ubiquitous and reliable CORE with many functions to share Core Network Complex, (un)reliable, dynamic, local EDGE Networks and Nodes R. Minerva, Telecom Italia / Future Centre
  14. 14. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets A New Ecosystem is possible • The Operator’s Network is providing valuable functions – Basic Ones: Processing, Storage, Communication Programmability – Identity of nodes, resources, people, companies – Brokering of Resources (even external ones) – Guarantees the reliability and availability of nodes (autonomic networking) – Information Centrality (Information Centric Networking) • Other Networks can dynamically offer resources and join the Ecosystems • End Users can be part of this by offering their basic resources (Processing, Storage and Communication) • The Ecosystems will – enable to harness the robustness of the network and the end-to-end intelligence of nodes – Optimize the usage of resources for the specific service and on a global scale R. Minerva, Telecom Italia / Future Centre
  15. 15. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets A Network of Networks Grids R. Minerva, Telecom Italia / Future Centre 15
  16. 16. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets Enabling technologies for Resource-Aware NoNs • autonomic capabilities and bio-inspired algorithms (e.g., gossiping, self-organization algorithms), to deal with complexity; • (self-organized) P2P overlays for clustering components, to guarantee scalability, reliability, and abstraction from underlying network; • resources virtualization, based on abstraction for coping with heterogeneity and on the definition of dynamic slices for multiple allocations; • programmable “intelligent” mechanisms, e.g., based on auctions, game theory, etc., for optimized resource allocation and use; • cognitive cross layering, to allow the network to perceive conditions, decide and act autonomically to reach local/global/end-to-end goals in an optimal way, in cooperation with autonomic and self-organizing behaviour of resources; • Grid Computing to better integrate different resources (computing storage and network and to integrate new ones (sensors., actuators, micromachinery, ...) R. Minerva, Telecom Italia / Future Centre
  17. 17. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets The Inner Circle (Network of Networks) Unreliable Virtual Resources Overlay of Virtual resources Inner Circle of Virtualized Autonomic Reliable Resources A Simple Core Network that can offer valuable functionalities and abstraction / virtualization to increasingly complex edge networks Reliable aggregation of Resources External Reliable Resources External unreliable Resources INNER CIRCLE Unreliable aggregation of unreliable Resources R. Minerva, Telecom Italia / Future Centre Inner Reliable Resources
  18. 18. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets About applications www.gapinvoid.com R. Minerva, Telecom Italia / Future Centre
  19. 19. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets Instead of running after Competitors ... TelCos need to anticipate them and entering in new markets with a disrupting or differentiating offering • Differentiate between the Business and the Residential markets • Their needs are different R. Minerva, Telecom Italia / Future Centre
  20. 20. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets Some Tips • Differentiation between markets is essential – Mass Market is going to stick to “BEST EFFORT and ZERO PRICE” paradigm – Enterprises could stick to traditional ecosystems when the RATIO between Services and QoS and PRICE is favorable and if the services (e.g., CRM) provided by the Operator are good • Networks need to be flexible and pervasive for supporting new services – Still investments in new network infrastructure are a problem – Opportunities do exist but the service infrastructure has to encompass new controlling paradigms (Client-server, p2p, tuple-space, PubSub, ...) R. Minerva, Telecom Italia / Future Centre
  21. 21. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets Augmented Reality • Adding new information to the User Actual Context • Operators have plenty of data: – General data – Personal data • They could be offered into a new ecosystem for developing Augmented Reality Applications R. Minerva, Telecom Italia / Future Centre
  22. 22. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets Internet of Things • Each Resource is addressable • Every Resource can be associated to a User (Identity) • Secure Links have to be guaranteed R. Minerva, Telecom Italia / Future Centre
  23. 23. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets Initial Observations on Economics, Pricing, and Penetration of the Internet of Things Market Jens-Matthias Bohli, Christoph Sorge, and Dirk Westhoff ACM SIGCOMM Computer Communication Review A Business Model For the Internet of Things? • Thesis 1: On the supply side of the IoT market, micro providers will play an important role • Thesis 2: Sensor information should be made available on an open platform to allow everyone to offer higher level services • Thesis 3: Intermediaries are needed as coordinating central structures on the IoT market • Thesis 4: The pricing schemes for consumers and for micro providers should be decoupled • Thesis 5: Intermediaries can offer schemes tailored to the preferences of certain consumer groups, and a competition of pricing schemes can evolve among intermediaries • Thesis 6: Intermediaries have to cooperate to maximize the customer's utility (and, eventually, their own profits), while also trying to differentiate their services • Thesis 7: the total cost of the IoT network is the sum of the costs ci for the WSN islands to be connected: C =  ci. The initial costs ci are borne by each micro provider on its own R. Minerva, Telecom Italia / Future Centre • Thesis 8: The value of the IoT market grows more than linearly with the number of consumers • Thesis 9: Intermediaries should consider subsidizing micro providers to create an additional incentive for service provisioning and enable the intermediaries' business in the first place • Thesis 10: For the IoT market, the copy problem of digital information is moderated • Thesis 11: Initial prices must be low • Thesis 12: Low entry costs: The cost of deploying and integrating a sensor network into the system must be low • Thesis 13: Provisioning of incomplete services should be allowed • Thesis 14: Incentives will be needed to stimulate participation of a large number of (micro) providers • Thesis 15: An efficient search mechanism is needed to find useful services
  24. 24. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets All-IP can be an enabler for Social Media More than 70% of UGC is produced by mobile terminals NEW OLD R. Minerva, Telecom Italia / Future Centre
  25. 25. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets E-government • Plenty of services !!! • They do depend from a strict cooperation with trusted parties • Operators can be (regional) trusted parties • Example of (pervasive) services – Smart Cities – Infomobility – Energy Control and smart grid – E-health – E-democracy – ... R. Minerva, Telecom Italia / Future Centre
  26. 26. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets http://www.turkcell.com.tr/en/AboutTurkcell/europeanrdprojects/fp7/perimeter Always Best Connected: the ol’ good stuff • Too many terminals with SIMs • Too expensive to pay for each of those • The concept of Personal Network made out of several terminals could emerge • Operators should support the seamless roaming of terminals between different communications environments R. Minerva, Telecom Italia / Future Centre
  27. 27. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets From Closed User Groups to Virtual Networks ... • B2B connectivity leads to Virtual Networking – VPN – MVNO – Virtualization – Virtual Organization • But also De-perimeterization of Services by – Building services and networks on top of other Network Providers’ Infrastructure – Can you believe? One Operator Network on top of another Network ?? R. Minerva, Telecom Italia / Future Centre
  28. 28. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets GRID Computing (not Cloud Computing): Protocols, Services, and APIs at Each Level Applications Languages/Frameworks Collective Service APIs and SDKs Collective Services Resource APIs and SDKs Resource Services Collective Service Protocols Resource Service Protocols Connectivity APIs Connectivity Protocols Local Access APIs and Protocols Fabric Layer R. Minerva, Telecom Italia / Future Centre
  29. 29. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets What Role for Operators ? • New Network Architectures • New Roles or Consolidation ? • New Standards and common Effort R. Minerva, Telecom Italia / Future Centre
  30. 30. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets http://www.oiforum.com/public/documents/OIF_20080204_NSN_Gruber_v3.1.pdf Choose Your Role and Your Network (1) Photons are cheaper than bits A Service Provider is involved with L3 A Bit Carrier is mainly involved in L1/L2 Service Provider Bit Pipe Carrier R. Minerva, Telecom Italia / Future Centre
  31. 31. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets Choose Your Role and Your Network (2) •Service Provider Eco-systems of services •Service Enabler (Platform Provider) Overlay Networks of autonomic components •Bit Carrier R. Minerva, Telecom Italia / Future Centre
  32. 32. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets Choose Your Role and Your Network (3) Focus on a Network OS (Service Enabler Role) Abstraction Platform APIs Overlays of autonomic virtualized components Virtualized (Resource) Control & Mgmt Platform (Network OS) Mesh Networks Private Networks Resources from different physical networks R. Minerva, Telecom Italia / Future Centre • Operator’s Nodes are super nodes in an overlay network • Service Providers integrate the Operator Nodes according to their needs • The logical Network of the Operator can exceeds regional boundaries • Resources can be communications, processing, storage and “Things”
  33. 33. LTE World Summit 2011 Creating New Ecosystems for Entering in Non Traditional Markets Thank you! Roberto Minerva TORINO - Italy Phone: +39 011 228 7027 Email: roberto.minerva@telecomitalia.com R. Minerva, Telecom Italia / Future Centre 33
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