Head to Head



The Ideological battle for
control of the Information
         Sphere
Agenda
1.  VoIP and IM applications
2.  The Digital Value Chain
3.  Bellheads vs. Netheads
4.  Air interface technology cl...
VoIP and IM
Applications
IM applications
The
  Digital
Value Chain
The Digital Value chain




App. or
                               ID &   Intel   Local   Users
Content    Portals Web   C...
Bellheads
   vs.
Netheads
Bellheads
•  Bellheads are the engineers and
   managers who grew up under the watchful
   eye of the Traditional Telephon...
Netheads
•  The Netheads are the young Turks who
   connected the world's computers to form
   the Internet.


•  The beli...
Bellheads vs. Netheads
Grew up in Telcos with   Grew up on Internet with
  TDM.                     IP.

Aligns with forma...
Bellheads vs. Netheads
Expect to pay for quality. Expect it to be cheap.

Prefer strong regulatory   Want an open and
  in...
Controlled vs. Open
Works from the existing Works from a new
 business model of       business model:
 telephone calls –  ...
Controlled vs. Open
The network ends in the The network ends in the
  call agent.             end-user’s device.

Intellig...
Controlled vs. Open
All ‘state’ is kept away   The network ends in the
  from the end-user’s        end-user’s device, the...
Controlled vs. Open
IP Telephony is a subset Internet Telephony is a
  of Next Generation       part of Next
  Networks, b...
Clashes of opinion
•  What do you say of the fact that you
   cannot provide different charges for the
   services making ...
The Digital Value chain




App. or
                           ID &            Intel   Local   Users
Content    Portals We...
The Digital Value chain
     Open                                                                              Open
    Ne...
Air Interface
Technology
Evolution path of fixed and mobile networks

                                Broadband Mobile
                            ...
Main Wireless Technology Trends
                                                                                          ...
4G – area of options
                                                                                  regional
          ...
Mobile technologies
                                                              Hardware

                              ...
Nomadic technologies
                                                   Hardware

                                        ...
Air interface technologies
                   Controlled        Open
                    Network         Network
         ...
Air interface technologies
                   Controlled             Open
                    Network              Network...
The Digital Value chain

  The coming Power Battle in the 4G Digital Value chain

                               Qualcomm
...
Core Network
Classification
Signaling Network Evolution
A brief history of telecommunication
1890-
1990




1990-
1999




2000
2005



2005
2015




2015
2020
LEGACY SWITCHING CONCEPT
    •    Monolithic TDM entity for circuit switching, control and signalling

    •    Time and S...
SOFTSWITCH CONCEPT
 •    Disaggregated functional units for control, signalling and bearer interfaces

 •    Multi-Protoco...
NEXT GENERATION NETWORK (NGN) CONCEPT
 •  “A converged high speed packet (IP) based
 network with multi-purpose (access ag...
SOFTSWITCH MODEL

        APPLICATION LAYER SOFTWARE / SERVERS
            Standard Telecoms Services (voice, data)
      ...
Why IMS?

Expressive Power                 Number of Developers

                                       millions
        V...
Controlled vs. Open
The IMS can facilitate   PTT can be implemented
  PTT via the PoC         via a variety of open-
  sta...
Controlled vs. Open
         PTT



IMS
The Digital Value chain




 App. or
                            ID &          Intel   Local   Users
 Content    Portals W...
IMS
Value Added
  Services
Competitive landscape

                 Value added Services




App. or
                      ID &        Intel   Local  ...
Controlled vs. Open
Control value added      Enable value added
 services from within      services that only need
 the ne...
SMS / MMS Bypass leaks revenue and
             profit

  R2400 / MB



                 R180 / MB
Downloadable applications bypasses central control


     R2400 / MB



                        R180 / MB




            ...
Intelligent session scenarios


                            R 180 / MB




                                         R 0.00...
Technology roadmap based on the Digital Value Chain

                      Vodafone    Nokia

     Core Need
             ...
Technology roadmap based on the Digital Value Chain

                      Vodafone        Nokia

     Core Need
         ...
Income distribution in the value chain
  Automated travel logging




App. or
                           ID &            I...
Connectivity
Competition.
Connectivity scenarios

                                                   WiMAX
  ISP
                                   ...
Connectivity scenarios


Media companies                                    WiMAX
                                        ...
Mesh Networking
Strategic
Business Decisions
  for the future.
The need for ambidextrous organisations

                                                                   Technology lin...
Crossing the chasm
                          The
                       Mainstream
                         Market



 The...
Conclusion




App. or
                           ID &            Intel   Local   Users
Content    Portals Web            ...
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Head to Head - The Battle between the Bellheads and the Netheads for control over the CyberSphere

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Part 1: When the infrastructure is ubiquitous and operates as a utility, like water or electricity, we will move beyond the current paradigm of cyberspace. What happens when information and knowledge are accessible to all who choose to look? What happens when eBusiness, eHealth and eLiteracy have become an invisible normality? What happens after the Ubiquitous Internet has irreparably changed our very understanding of the world we live in? A new Digital Value Chain will be required when the Netheads and Bellheads pit their business models against each other in an epic battle where the only winner is bound to be the consumer. Who will find the right balance between the investments required to support the infrastructure and the money that inevitably will flow to edge of the network where the intelligence and power resides?

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Head to Head - The Battle between the Bellheads and the Netheads for control over the CyberSphere

  1. 1. Head to Head The Ideological battle for control of the Information Sphere
  2. 2. Agenda 1.  VoIP and IM applications 2.  The Digital Value Chain 3.  Bellheads vs. Netheads 4.  Air interface technology classification 5.  Core network classification 6.  Value added services 7.  Strategic Business decisions for the future
  3. 3. VoIP and IM Applications
  4. 4. IM applications
  5. 5. The Digital Value Chain
  6. 6. The Digital Value chain App. or ID & Intel Local Users Content Portals Web Core Billing Edge loop Hard OS Browser App. provider
  7. 7. Bellheads vs. Netheads
  8. 8. Bellheads •  Bellheads are the engineers and managers who grew up under the watchful eye of the Traditional Telephone company and who continue to abide by her practices. . They believe in solving problems with dependable hardware techniques and in rigorous quality control.
  9. 9. Netheads •  The Netheads are the young Turks who connected the world's computers to form the Internet. •  The believe in flexible and adaptive routing instead of fixed traffic control.
  10. 10. Bellheads vs. Netheads Grew up in Telcos with Grew up on Internet with TDM. IP. Aligns with formal UN Aligns with open forums and ITU structures. like the IETF. Prefer closed Individuals want to be communities and “old- active participants. boy” relationships.
  11. 11. Bellheads vs. Netheads Expect to pay for quality. Expect it to be cheap. Prefer strong regulatory Want an open and involvement and unregulated playing protection. field. Want to steer the future Let us see how this network evolution. network evolves itself organically.
  12. 12. Controlled vs. Open Works from the existing Works from a new business model of business model: telephone calls – always on, the world is time x distance x a large free calling bandwidth = revenues. area. Relies on international settlements to allocate revenues between carriers.
  13. 13. Controlled vs. Open The network ends in the The network ends in the call agent. end-user’s device. Intelligence is build into Intelligence is on the the core of the edge of the network. network. The protocols it operates Protocols are end-to-end, upon are proprietary, and open. and not end-to-end.
  14. 14. Controlled vs. Open All ‘state’ is kept away The network ends in the from the end-user’s end-user’s device, the device. end-user can define services. Provides Quality of Substitutes speed Service assurances. (bandwidth) for Quality of Service (QoS) and provides best efforts service.
  15. 15. Controlled vs. Open IP Telephony is a subset Internet Telephony is a of Next Generation part of Next Networks, but, in view Generation Internet of its master-slave Services, whose design philosophy, nature will be various services continue to and unpredictable as be defined from the was the addition of the centre of the network. World Wide Web on top of the Internet.
  16. 16. Clashes of opinion •  What do you say of the fact that you cannot provide different charges for the services making use of IP packets: •  The Bellheads: The Internet Protocol was poorly designed because you cannot charge for different value added services. •  The Netheads: "IP is hard to charge for? That's not a bug, that's a feature!"
  17. 17. The Digital Value chain App. or ID & Intel Local Users Content Portals Web Core OS Browser App. Billing Edge loop Hard provider
  18. 18. The Digital Value chain Open Open Network Network App. or Local Users Content Billing Portals Net Core OS Browser Intel. ID App. loop Hard provider App. or ID & Intel. Local Users Content Portals Net Core OS Browser App. Billing Edge loop Hard provider Controlled Network
  19. 19. Air Interface Technology
  20. 20. Evolution path of fixed and mobile networks Broadband Mobile multimedia services via packet-based network Mobile wireless Enhanced IP and Voice services IP based multimedia (real time, QoS) Mobile wireless IP services over Internet access Broad wireless Access with Mobile Nomadic mobility wireless IP data voice services over fixed networks
  21. 21. Main Wireless Technology Trends NEXT : Ad-hoc Mesh Mobile Networks CELLULAR INDUSTRY BWA GENERATIONS 3GSM/UMTS : R99 to HSDPA/HSUPA (OFDM CDMA 1x : EV-DO, EV-DO RevA EVOLVED 3G) Mobile (M) Wide Area Coverage / Mobility 2G 2.5G 3G WMAN/WWAN (N) Nomadic (N) Metro Area 802.16e (WiMAX Forum (Mobile) Intel, Motorola, etc) “4G” Air Interfaces e.g. FLASH-OFDM (Flarion) (M) 802.16d (N) Other “disruptor” entrants WLAN / WiFi (N) Local Area 802.11 g Fixed (F) IP Wireless (M / N) Navini (F/N / M) Arraycomm iBurst (N / M) 802.11b 10 kbps 100 Mbps Data Speeds span a wide range
  22. 22. 4G – area of options regional wireless access carrier-grade seamless multi-service subarchitectures, best effort nomadic mobility, realtime voice, mobility, isolators, IP QoS, multimedia E2E-QoS continuous mobility in protocol heaps wide area incl. voice 4G area of options Fixed Wireless Realtime Wireless NG Internet Internet Internet Mobile Internet Internet Some More Optimum Pure New IP IP IP IP IP UMTS Evolution GSM / NG UMTS+ Mobile GPRS UMTS UMTS + Wireless + Packets E2E-IP to the IP in RAN, IP MBMS, WLAN/UMTS dynamic native IP routing to based interworking, push, network MS, IP in CN service presence, IMS Phase 2, mobile host, IETF provisioning packet bearer protocols only composition (IMS), HSDPA enhancements
  23. 23. Mobile technologies Hardware Local Loop EV-DV ?? ITU Standardisation HSDPA EV-DO /HSUPA CDMA 2000 Edge OFDM GPRS CDMA GSM (2010?) (2005) Intellectual property Gorillas
  24. 24. Nomadic technologies Hardware Local Loop WiFi WiMAX IEEE 802.11g IEEE 802.16e WiFi WiMAX IEEE 802.11b IEEE 802.16d OFDM OFDM (2010?) ? Hardware Chipsets in PC’s and Mobiles
  25. 25. Air interface technologies Controlled Open Network Network Philosophy Philosophy Standardised Gorilla game Air interface Technology Commoditisation 3GPP IEEE • GPRS • WiFi • EDGE • WiMAX • WCDMA •  IEEE 802.11n (MIMO) • HSDPA • Mesh Networks (802.11s)
  26. 26. Air interface technologies Controlled Open Network Network Philosophy Philosophy Standardised Gorilla game Air interface Technology Commoditisation ? Technology Extended Proprietary Focused Value chain Technology focus Solutions Flash OFDM iBurst End to End IP connectivity, … but a proprietary air interface.
  27. 27. The Digital Value chain The coming Power Battle in the 4G Digital Value chain Qualcomm App. or ID & Intel Local Users Content Portals Web Core OS Browser App. Billing Edge loop Hard provider Intel
  28. 28. Core Network Classification
  29. 29. Signaling Network Evolution
  30. 30. A brief history of telecommunication 1890- 1990 1990- 1999 2000 2005 2005 2015 2015 2020
  31. 31. LEGACY SWITCHING CONCEPT •  Monolithic TDM entity for circuit switching, control and signalling •  Time and Space Switching of ISDN standard channels (64kb/s) •  Local processor control of line interfaces, switching network and signalling •  Entrenched switch suppliers tend to develop by adapting legacy circuit switches Signaling Signaling Central Control Control Buses Bearers TDM Bearers Line/Trunk Line/Trunk Switching Interfaces Interfaces Circuit & Packet Network Circuit & Packet
  32. 32. SOFTSWITCH CONCEPT •  Disaggregated functional units for control, signalling and bearer interfaces •  Multi-Protocol IP backbone transports bearers, control and signalling •  Single softswitch can control a wide area of distributed media gateways •  Softswitch manufacturers tend to be new entrants developing IP switch fabric •  Key concept in NGN (Next Generation Networks) Signaling Softswitch Signaling Control IP Backbone Bearers Bearers Media Media Gateway Gateway Circuit & Packet Circuit & Packet
  33. 33. NEXT GENERATION NETWORK (NGN) CONCEPT •  “A converged high speed packet (IP) based network with multi-purpose (access agnostic) switching on common platforms for multiple applications and services (voice, data, video, multimedia)” CORE TIER INTELLIGENT EDGE TIER Local Loop High speed IP- MPLS Softswitches, Media ACCESS TIER Core routers/switches Gateways, Application High speed / & transmission Servers, Routers, etc Broadband
  34. 34. SOFTSWITCH MODEL APPLICATION LAYER SOFTWARE / SERVERS Standard Telecoms Services (voice, data) Media Services (messaging, streaming) Location Services, PoC, Legal Intercept, etc API’s to Call Control CALL CONTROL LAYER Signalling Protocols for call and switching control (connection oriented / connectionless) delivery of Application Layer services SS7, SIP, CAMEL SWITCHING LAYER Bearer Media Gateways to IP Backbone
  35. 35. Why IMS? Expressive Power Number of Developers millions VB, Scriptable JavaScipt C++, Java 500 000 API’s Parlay Sockets Protocols 6000 INAP, ISUP, SIP, MAP
  36. 36. Controlled vs. Open The IMS can facilitate PTT can be implemented PTT via the PoC via a variety of open- standard that 3GPP source applications agreed upon. running on handsets. PTT is provided via an Peer to peer functionality. intelligent core. No value added billing Flat fee billing. required.
  37. 37. Controlled vs. Open PTT IMS
  38. 38. The Digital Value chain App. or ID & Intel Local Users Content Portals Web Core OS Browser App. Billing Edge loop Hard provider
  39. 39. IMS
  40. 40. Value Added Services
  41. 41. Competitive landscape Value added Services App. or ID & Intel Local Users Content Portals Web Core OS Browser App. Billing Edge loop Hard provider
  42. 42. Controlled vs. Open Control value added Enable value added services from within services that only need the network. a IP connection to function. Builds business models Builds business models on micro-billing on subscription or pre- functionality. paid functionality.
  43. 43. SMS / MMS Bypass leaks revenue and profit R2400 / MB R180 / MB
  44. 44. Downloadable applications bypasses central control R2400 / MB R180 / MB R0.60 / MB
  45. 45. Intelligent session scenarios R 180 / MB R 0.005 /msg The same is happening to: Vodafone portal content and Voice traffic
  46. 46. Technology roadmap based on the Digital Value Chain Vodafone Nokia Core Need Safari MUI Vodafone Program Symbian OS Nokia Hardware Vodafone Local Loop Vodafone Intelligent Edge Vodafone Core Tier Vodafone Billing MS Portal MS Cont. AGR Cont. Create MS
  47. 47. Technology roadmap based on the Digital Value Chain Vodafone Nokia Core Need Vodafone Safari MUI Vodafone Safari Program Symbian OS Nokia V. Branded Hardware Vodafone Local Loop Vodafone Active WiMAX Intelligent Edge support Vodafone Core Tier Vodafone MS Billing Vodafone MS Portal Vodafone MS Cont. AGR Cont. Create
  48. 48. Income distribution in the value chain Automated travel logging App. or ID & Intel Local Users Content Portals Web Core OS Browser App. Billing Edge loop Hard provider
  49. 49. Connectivity Competition.
  50. 50. Connectivity scenarios WiMAX ISP Mesh App. or ID & Intel Local Users Content Portals Web Core OS Browser App. Billing Edge loop Hard provider
  51. 51. Connectivity scenarios Media companies WiMAX Mesh App. or ID & Intel Local Users Content Portals Web Core OS Browser App. Billing Edge loop Hard provider
  52. 52. Mesh Networking
  53. 53. Strategic Business Decisions for the future.
  54. 54. The need for ambidextrous organisations Technology linkages Enhances Destroys Niche Architectural Destroys Innovation Innovation Market Linkages Enhances Incremental Revolutionary Innovation Innovation Source: Matrix based on the ideas of Abernathy and Clark, Research Policy, 14, 3-22,
  55. 55. Crossing the chasm The Mainstream Market The Early Market Tornado Bowling The Alley Chasm
  56. 56. Conclusion App. or ID & Intel Local Users Content Portals Web Core OS Browser App. Billing Edge loop Hard provider

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