This document discusses the changing landscape for communications service providers due to rising social networking, cloud services, and mobile internet usage. It notes that while traffic volumes are exploding, revenues are not increasing at the same rate. It identifies three key success factors for service providers: simplifying complex networks to lower costs, improving customer experience, and developing new business models. The document proposes next-generation optical transport networks and open lambda initiatives to help service providers cope with increasing demand through simplified, converged access networks and spectrum sharing between multiple operators on the same fiber infrastructure.

1. Smart transportfor an ever-changing world of communications

2. Social Networking, cloud services and more:What is the impact on operators?Social networkingCloud based/online backupNew services arise – and change the gameRemote access to home contentHome/office telepresenceHigh bandwidth entertainment

3. Mobile Internet11683Entertainment363727Multi-sided business2542520Fixed Broadband35443314IPTV522028Other VAS5432427Advertising571429Carrier services3734947VoIP81848619Messaging42129640Others63125631Mobile Voice214410222This is what service providers expect to happen…8762Expected development within the next 3 years61636562655862771686Increases strongly (++)Decreases strongly (--)Increases (+)Decreases (-)Stays the sameSource: Nokia Siemens Networks operator survey 2010

4. Global WIRELINE trafficResidentialunicast TVResidential internetBusiness internetVoice traffic100 (ExaByte/month)8060402009201120132015… and this is what it means: the traffic explodes – but revenues don’tTraffic volumeGlobal MOBILE traffic2.5 (ExaByte/month)Smartphones2.0Revenue Mobile Laptop1.51.0Voice traffic2015200920112013TimeVoice dominatedData dominatedSource: Nokia Siemens Networks 2011

5. The service providers’ force field: three key success factors make the differenceOverthe top playersNew business rulesNew ecosystemsNew experiencesMulti-screen broadbandCope with ever increa-sing demandEnterprisesDeclining loyalty CustomerexperienceCloud computing is taking offWeb x.0 drives behaviorWeb2.0, UC and mobility joinTransforma-tional agilityVertical services gain momentumConsumersDisruptivego-to-market strategiesIndifferent broadband offersDynamic service landscapeCSPs

6. Current transport networks are too complex for the challenge: Simplification is needed broadband access converged aggregation Efficiency Easy operation

7. Lower cost per bitresidentialenterprisemobile High Throughput

8. Low LatencyExperience service-aware IP edge Ready for new services

9. Ready for new business modelsEvolution Photonic IP core

10. Next Generation Optical Transport (NGOA):Simplified, converged access for the futureNew revenue streamsSeveral thousand wavelengthsNetwork SimplificationInvestment ProtectionPoint-to-point connectivity over a fibre treeMetroPOPup to 1000customersSplitter1Gbit/sDS & USONTPassive infrastructureup to 100 km Simplify connectivity and aggregation layersCoherent detection for increased reach