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Trends In Telecommunication Services


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Trends In Telecommunication Services

  1. 1. Trends in Telecommunication Services Chetan Kumar S Alcatel Lucent India Limited
  2. 2. Introduction <ul><li>The global financial turmoil adds new dimension to global telecommunication trends </li></ul><ul><li>Smart phones explosion in 2008 and continuation is 2009 adds to on-demand information and computing </li></ul><ul><ul><li>Intel buys WindRiver </li></ul></ul><ul><li>These adds newer services dimension as well </li></ul><ul><ul><li>I would be covering service trends (a fraction of) in mobile services and wireline services. </li></ul></ul><ul><li>Disclaimer </li></ul><ul><ul><li>The thoughts, ideas and predictions given here are purely my own, Alcatel Lucent may not share or acknowledge them. </li></ul></ul><ul><li>Acknowledge </li></ul><ul><ul><li>various reports, blogs, article that are referred and/or influenced the slides here </li></ul></ul>
  3. 3. Mobile services
  4. 4. The Lost pie <ul><li>Mobile users are expected to download 10 Billion application in 2009 - CNET News, 21 October 2008 </li></ul><ul><li>Intrusion by third party (mobile device manufactures and software houses) </li></ul><ul><li>Operators are not likely to earn from application download by customers </li></ul><ul><ul><li>Might get additional data customer, adhoc or flat model </li></ul></ul><ul><ul><li>Additional bandwidth used do not add more revenue. </li></ul></ul>
  5. 5. What might mobile operator target <ul><li>Mobile operator can offer hosted services </li></ul><ul><ul><li>Adding presence and location sensitivity to application </li></ul></ul><ul><ul><li>Add collaboration and conferencing services to application </li></ul></ul><ul><ul><li>Hosted gaming services </li></ul></ul><ul><ul><li>Mobile operator can offer application and device backup service </li></ul></ul><ul><li>Charging application service to subscriber’s phone bills </li></ul><ul><li>Mobile operators might launch their own application stores </li></ul><ul><ul><li>A slippery slope: here are many free application out their, pain of managing store should generate enough revenue </li></ul></ul>
  6. 6. Scope for Equipment vendors <ul><li>Telecommunication equipment vendors are forced to be application aware </li></ul><ul><ul><li>Should recognize application traffic for reports and billing </li></ul></ul><ul><ul><li>End-to-end QoS will become all the more important. Hosted services need service differentiation </li></ul></ul><ul><li>The equipments need to open platform for hosted services </li></ul><ul><li>Billing software need to be flexible </li></ul>
  7. 7. Mobile Broadband still alive! <ul><li>Global sales of mobile broadband ‘dongles’ exceeded four million per month during 2008 GSM Association, 22 August 2008 </li></ul><ul><li>Expected to more than double during 2009 Broadband network infrastructure, Ericsson, 1 April 2008. </li></ul><ul><li>Revenue from data is very less </li></ul><ul><ul><li>In terms of data bytes, data is 30times cheaper than voice ! </li></ul></ul><ul><li>Operators may collectively have to spend tens of billions of dollars to accomodate growing user Beating the backhaul challenge in mobile, Amdocs, 2008 </li></ul><ul><li>Customers are yet not satisfied with data rate </li></ul>
  8. 8. What might operator do? <ul><li>Operators will try to divert heavy data traffic from cellular networks, and route it via WiFi-hotspots or home-broadband connections T-Mobile UK bundles free WiFi with Web’n’walk plus </li></ul><ul><ul><li>Device should automatically select the right device </li></ul></ul><ul><ul><li>Need a new tariff plan </li></ul></ul><ul><li>Offer premium services at higher cost </li></ul><ul><ul><li>Eat-all-you-can for home users, move to mobile office solutions to enterprise customer </li></ul></ul>
  9. 9. Technological evolution in Mobile broadband <ul><li>True ubiquitous access will see a raise </li></ul><ul><ul><li>All allied service, security, business model and tariff for ubiquitous access will evolve </li></ul></ul><ul><ul><li>R&D spending in 4G will continue </li></ul></ul><ul><li>Mobile broadband service will undergo similar changes as fixed broadband service </li></ul><ul><ul><li>Service model as appose to pipe model </li></ul></ul><ul><ul><li>The mobility dimension will add to the complexity. </li></ul></ul>
  10. 10. Wireline services
  11. 11. Wireline provider in search of new revenue stream <ul><li>No different picture than mobile service providers </li></ul><ul><ul><li>Offering bandwidth pipes for every one to ride </li></ul></ul><ul><li>This close relationship between providers and customers is open to many third party vendors </li></ul><ul><li>There is no clear revenue sharing model between application provider and service provider </li></ul><ul><li>New service require more bandwidth, providers will have enhance their back haul, but increase in revenue is not proportional </li></ul><ul><li>IP transformation does provide scope for many new service. </li></ul>
  12. 12. New revenue stream <ul><li>Hosted Services </li></ul><ul><li>Types of hosted services as defined by Ovum: </li></ul><ul><ul><li>Repeatable business process-led services shared among several clients </li></ul></ul><ul><ul><ul><li>Data center applications </li></ul></ul></ul><ul><ul><li>Remotely delivered application services using shared resources </li></ul></ul><ul><ul><ul><li>Hosted voice services, VPN services etc., </li></ul></ul></ul><ul><ul><li>Infrastructure services (both remotely managed and/or hosted services spanning data centre services, managed servers & databases, performance monitoring, security services, storage services and business continuity) </li></ul></ul><ul><ul><ul><li>Managed communication service (MCS) </li></ul></ul></ul><ul><ul><li>Web hosting - the provision of infrastructure and application services to support the hosting of Web sites. </li></ul></ul>
  13. 13. What are customer asking for? <ul><li>General Market Trends </li></ul><ul><li>Increased complexity of IT environment (convergence, new apps) reveals expertise gaps </li></ul><ul><li>Curtailed capital budgets shift costs to recurring operational expenses </li></ul><ul><li>Remote workforce and partnerships require a balance between accessibility and security </li></ul><ul><li>Rapidly changing business needs require scalable solutions </li></ul>
  14. 14. Why Managed Communication Service <ul><li>Businesses need outside help to manage </li></ul><ul><ul><li>A complex, multi-vendor IT environment </li></ul></ul><ul><ul><li>With end-to-end performance standards </li></ul></ul><ul><ul><li>And protection of traffic from threats and failure </li></ul></ul><ul><ul><li>Within budget and staffing constraints </li></ul></ul>
  15. 15. Why Managed Services Allow existing staff to concentrate on strategic as opposed to tactical task Easier to provide 24/7 support Cutting costs Gain Access to certain skill sets Reduce deployment time Easier than adding staff Easier than training existing staff on new capabilities What are the primary reasons that you would consider using a managed service? <ul><li>Source: Distributed Networking Associates Survey, Nov 2008 </li></ul>
  16. 16. What is Managed Communication Services <ul><li>Managed services are IT services that are </li></ul><ul><li>Proactively monitored </li></ul><ul><ul><li>Ongoing, not on a maintenance schedule </li></ul></ul><ul><li>Through rich, real-time performance and operations data </li></ul><ul><ul><li>Not just a monthly, reactive report </li></ul></ul><ul><ul><li>Able to be accessed at any time </li></ul></ul><ul><li>That is shared by customer and provider </li></ul><ul><ul><li>Customer and provider share responsibility for decisions </li></ul></ul><ul><li>So that action can be taken </li></ul><ul><ul><li>Allows for real-time adjustments </li></ul></ul><ul><li>To reach customer-defined goals </li></ul><ul><ul><li>E.g., cost, application performance </li></ul></ul><ul><ul><li>Can change at any time </li></ul></ul>
  17. 17. Global Managed Services Market & Trends Source: The 2007-2012 Global Managed Services Market Forecast, from InfoTrack which is a publication division of Access Intelligence, LLC
  18. 18. Types of Managed Services in use
  19. 19. Thank You <ul><li>Questions? </li></ul>
  20. 20. Backup slides
  21. 21. Telecom Industry Trends <ul><li>From Huawei </li></ul><ul><ul><li>Mobile penetration saturation </li></ul></ul><ul><ul><li>Ubiquitous broadband </li></ul></ul><ul><ul><li>Cloud computing </li></ul></ul><ul><ul><li>All-IP transformation </li></ul></ul><ul><ul><li>Carrier-grade IP </li></ul></ul><ul><ul><li>Value creation in broadband </li></ul></ul><ul><ul><li>ARPU deterioration </li></ul></ul>
  22. 22. Screens that will go blank <ul><li>Mobile TV </li></ul><ul><ul><li>Performance of mobile TV 2008 was poor – Deloitte TMT report 2009 </li></ul></ul><ul><ul><ul><li>No new catalyst changing the trend. </li></ul></ul></ul>