The operator's dream - The OTT's reality?!
Sebastian Schumann
Slovak Telekom, a.s.
Next
Generation
Services
3rd ngnlab.eu workshop
3. November 2011
Delft, The Netherlands
Hosted by:
Goal
¡ Briefly analyze Telco and Over-The-Top services
¡ Define next generation services, what users might
demand from them, and what providers can offer
¡ Provide an opinion on what Telco’s can do to stay
/or become again/ “smart”
¡ Discuss, question, exchange, propose, …
IDEAS and OPINIONS
Telco services
¡ Operators mainly offer the following services
nowadays:
¡ Voice (fixed/mobile)
¡ Messaging (SMS, MMS)
¡ Network connectivity (fixed/mobile)
¡ Television
¡ These services are currently in transition
à Operators slowly perceive them as actual services
¡ Convergence so far only from sales perspective
(bundled packages)
Telco services ctd.
¡ “Voice” service has undergone a big change in the
past
¡ Network and service were conjunct (“assured delivery”)
¡ Interconnect and call-through fees for the network
operator were paid
¡ Telephony was overall source of income
¡ Mobile messaging gets competition
¡ Better programs from OTTs with increasing reach
¡ Web integration important (Facebook, Twitter)
¡ IPTV is rather television over IP than “TV 2.0” so far
Telco’s (forced) transitions
¡ Operators made new investments
¡ Data networks (fixed, mobile)
¡ IPTV started
¡ Currently connectivity is widely deployed and IPTV
as a single product is established
¡ IP Multimedia Subsystem
¡ IP connectivity
¡ IPTV
All-IP
5
OTT services
¡ IP based from the very beginning
¡ Long history of integration (APIs, functionality)
¡ Some services are only mash-ups of other services
¡ Monetization not always trivial
¡ Ad based
¡ Premium tariffs: subscriptions, features
¡ Usually require smart end devices
¡ Smart phones, smart TV (incl. set-top-boxes like PS3, Xbox)
¡ Greenfield conditions, not afraid to fail
Next generation services
¡ Hard to define, different for Telco’s and OTT’s
¡ Requirements
¡ Converged high-quality access (fixed, mobile)
¡ Fast TTM, adaptive
¡ Integrated (w/ core, other services, devices)
¡ User centric
¡ Generate revenue
¡ Easy to use
¡ BETTER
?
Is that so?
¡ Telco services
¡ Converged high-quality
access (fixed, mobile)
¡ Fast TTM, adaptive
¡ Integrated (w/ core, other
services, devices)
¡ User centric
¡ Generate revenue
¡ Easy to use
¡ BETTER
¡ OTT’s services
¡ Converged high-quality
access (fixed, mobile)
¡ Fast TTM, adaptive
¡ Integrated (w/ core, other
services, devices)
¡ User centric
¡ Generate revenue
¡ Easy to use
¡ BETTER
Telco’s vs. OTT’s
¡ Similarities
¡ Software handles logic
¡ Network complexity is decreasing
¡ Differences
¡ Understanding of ‘service’
¡ Addressed market (partially)
¡ Managed vs. unmanaged service delivery
¡ Third party integration (e.g. cloud)
¡ Revenue generation vs. user relation
Telco’s opportunities
¡ Residential segment
¡  Churn and revenue prevention
¡  Create individual unique selling points within local market
¡  Mash ups
¡  Follow the move of the web 2.0 hype and integrate
applications and services (mash-ups)
¡  Gain revenue from possibilities to generate new services on
top of IMS and IPTV
¡ Business segment
¡  Provide communication interface for customer's web
presence
¡  Provide integrated „new“ communication services (CaaS)
Telco’s new All-IP advantages
¡ Rapid application development on top of a service platform
¡  Cheaper launch of services
¡  Faster time-to-market
¡ Third party interfaces
¡  Vertical integration with own and public services and enablers
¡  Horizontal service development on open platform
¡ Open frameworks/API’s on top of the IMS
¡  Telco offer enhanced web API‘s and mash-ups for own services
(click2dial, web phone, CaaS, QoS)
¡  Telco integrates web 2.0 services to enrich own service base
(integrate Facebook, Youtube, Netflix)
Telco’s challenges
¡ Partially wrong communication with the customer
¡ Customer still has the choice for technology
(analog, ISDN, IP-based)
¡ Wrong understanding:
IP-based à Telephony via the Internet à Why not Skype?
¡ Wrong processes internally
¡ Process complexity hinders better time to market
¡ Lifecycle changed
¡ Managing local vs. global competition
Service scenarios
¡ Integration of comm’s with existing IP based television
à Use all services and devices in your domain for an overall
service experience
¡ Extend business voice products towards unified
communications
à Voice is not the only product anymore, but multi-channel
interoperable communications
¡ IT integration to gain unique view about users
¡ Subscribers become users, strong OSS/BSS support required
¡ Identity management to be able to map users
Service scenarios ctd.
¡  Not only keep QoS on IP (“assure it’s not worse”) but increase QoE
(“make it better”)
¡  High-definition will become standard also in communications (voice,
video)
¡  Blended services
¡  Communications as enabler (presence, messaging, multi-media)
¡  Integration with own services
¡  Capable of being integrated with external apps (APIs)
¡  New business/tariff models
¡  Ad supported calling (TV set has enough screen estate)
¡  Traffic vs. content billing (more understandable for the user)
¡  Multiple devices per user, SMS vs. chat (per-message-billing)
¡  Web integration
Integration
¡ Integration is important
¡ Back-end service logic can be integrated now
¡ Service enablers, application layer integration
¡ Rich set of multimedia services accessibility from
anywhere, anytime with the same experience
¡ Service personalization on user/group/community level
¡ Follow the real user demand for new services
à define new service requirements now
¡ “Reusable capabilities” concept to minimize complexity
of systems
Conclusion
¡ Telco’s have to open up their architecture – the
future is not a walled garden!
¡ Users needs a reason to use their applications –
they have to federate with the web!
… or it will be accessed directly
¡ The Web 2.0 is user centric and open to be
extended with applications – the Telco 2.0 should
follow this approach
¡ Churn and revenue prevention with often forgotten
chances that mash-ups offer
Summary
¡ Overview about a few challenges in the service area as
well as approaches how to cope with them
¡ Highlight Telco’s potential in the growing competition
¡ Motivation to rather act now than wait for the perfect
standard
¡ Utilize existing infrastructure
¡ Integrate on the back-end
¡ Blend services
¡ Integration is important (internally as well as externally)
Sebastian Schumann
seb.schumann@gmail.com
@s_schumann
Thank
you!

Next Generation Services. The operator’s dream - The OTT’s reality?

  • 1.
    The operator's dream- The OTT's reality?! Sebastian Schumann Slovak Telekom, a.s. Next Generation Services 3rd ngnlab.eu workshop 3. November 2011 Delft, The Netherlands Hosted by:
  • 2.
    Goal ¡ Briefly analyze Telcoand Over-The-Top services ¡ Define next generation services, what users might demand from them, and what providers can offer ¡ Provide an opinion on what Telco’s can do to stay /or become again/ “smart” ¡ Discuss, question, exchange, propose, … IDEAS and OPINIONS
  • 3.
    Telco services ¡ Operators mainlyoffer the following services nowadays: ¡ Voice (fixed/mobile) ¡ Messaging (SMS, MMS) ¡ Network connectivity (fixed/mobile) ¡ Television ¡ These services are currently in transition à Operators slowly perceive them as actual services ¡ Convergence so far only from sales perspective (bundled packages)
  • 4.
    Telco services ctd. ¡ “Voice”service has undergone a big change in the past ¡ Network and service were conjunct (“assured delivery”) ¡ Interconnect and call-through fees for the network operator were paid ¡ Telephony was overall source of income ¡ Mobile messaging gets competition ¡ Better programs from OTTs with increasing reach ¡ Web integration important (Facebook, Twitter) ¡ IPTV is rather television over IP than “TV 2.0” so far
  • 5.
    Telco’s (forced) transitions ¡ Operatorsmade new investments ¡ Data networks (fixed, mobile) ¡ IPTV started ¡ Currently connectivity is widely deployed and IPTV as a single product is established ¡ IP Multimedia Subsystem ¡ IP connectivity ¡ IPTV All-IP 5
  • 6.
    OTT services ¡ IP basedfrom the very beginning ¡ Long history of integration (APIs, functionality) ¡ Some services are only mash-ups of other services ¡ Monetization not always trivial ¡ Ad based ¡ Premium tariffs: subscriptions, features ¡ Usually require smart end devices ¡ Smart phones, smart TV (incl. set-top-boxes like PS3, Xbox) ¡ Greenfield conditions, not afraid to fail
  • 7.
    Next generation services ¡ Hardto define, different for Telco’s and OTT’s ¡ Requirements ¡ Converged high-quality access (fixed, mobile) ¡ Fast TTM, adaptive ¡ Integrated (w/ core, other services, devices) ¡ User centric ¡ Generate revenue ¡ Easy to use ¡ BETTER ?
  • 8.
    Is that so? ¡ Telcoservices ¡ Converged high-quality access (fixed, mobile) ¡ Fast TTM, adaptive ¡ Integrated (w/ core, other services, devices) ¡ User centric ¡ Generate revenue ¡ Easy to use ¡ BETTER ¡ OTT’s services ¡ Converged high-quality access (fixed, mobile) ¡ Fast TTM, adaptive ¡ Integrated (w/ core, other services, devices) ¡ User centric ¡ Generate revenue ¡ Easy to use ¡ BETTER
  • 9.
    Telco’s vs. OTT’s ¡ Similarities ¡ Softwarehandles logic ¡ Network complexity is decreasing ¡ Differences ¡ Understanding of ‘service’ ¡ Addressed market (partially) ¡ Managed vs. unmanaged service delivery ¡ Third party integration (e.g. cloud) ¡ Revenue generation vs. user relation
  • 10.
    Telco’s opportunities ¡ Residential segment ¡ Churn and revenue prevention ¡  Create individual unique selling points within local market ¡  Mash ups ¡  Follow the move of the web 2.0 hype and integrate applications and services (mash-ups) ¡  Gain revenue from possibilities to generate new services on top of IMS and IPTV ¡ Business segment ¡  Provide communication interface for customer's web presence ¡  Provide integrated „new“ communication services (CaaS)
  • 11.
    Telco’s new All-IPadvantages ¡ Rapid application development on top of a service platform ¡  Cheaper launch of services ¡  Faster time-to-market ¡ Third party interfaces ¡  Vertical integration with own and public services and enablers ¡  Horizontal service development on open platform ¡ Open frameworks/API’s on top of the IMS ¡  Telco offer enhanced web API‘s and mash-ups for own services (click2dial, web phone, CaaS, QoS) ¡  Telco integrates web 2.0 services to enrich own service base (integrate Facebook, Youtube, Netflix)
  • 12.
    Telco’s challenges ¡ Partially wrongcommunication with the customer ¡ Customer still has the choice for technology (analog, ISDN, IP-based) ¡ Wrong understanding: IP-based à Telephony via the Internet à Why not Skype? ¡ Wrong processes internally ¡ Process complexity hinders better time to market ¡ Lifecycle changed ¡ Managing local vs. global competition
  • 13.
    Service scenarios ¡ Integration ofcomm’s with existing IP based television à Use all services and devices in your domain for an overall service experience ¡ Extend business voice products towards unified communications à Voice is not the only product anymore, but multi-channel interoperable communications ¡ IT integration to gain unique view about users ¡ Subscribers become users, strong OSS/BSS support required ¡ Identity management to be able to map users
  • 14.
    Service scenarios ctd. ¡ Not only keep QoS on IP (“assure it’s not worse”) but increase QoE (“make it better”) ¡  High-definition will become standard also in communications (voice, video) ¡  Blended services ¡  Communications as enabler (presence, messaging, multi-media) ¡  Integration with own services ¡  Capable of being integrated with external apps (APIs) ¡  New business/tariff models ¡  Ad supported calling (TV set has enough screen estate) ¡  Traffic vs. content billing (more understandable for the user) ¡  Multiple devices per user, SMS vs. chat (per-message-billing) ¡  Web integration
  • 15.
    Integration ¡ Integration is important ¡ Back-endservice logic can be integrated now ¡ Service enablers, application layer integration ¡ Rich set of multimedia services accessibility from anywhere, anytime with the same experience ¡ Service personalization on user/group/community level ¡ Follow the real user demand for new services à define new service requirements now ¡ “Reusable capabilities” concept to minimize complexity of systems
  • 16.
    Conclusion ¡ Telco’s have toopen up their architecture – the future is not a walled garden! ¡ Users needs a reason to use their applications – they have to federate with the web! … or it will be accessed directly ¡ The Web 2.0 is user centric and open to be extended with applications – the Telco 2.0 should follow this approach ¡ Churn and revenue prevention with often forgotten chances that mash-ups offer
  • 17.
    Summary ¡ Overview about afew challenges in the service area as well as approaches how to cope with them ¡ Highlight Telco’s potential in the growing competition ¡ Motivation to rather act now than wait for the perfect standard ¡ Utilize existing infrastructure ¡ Integrate on the back-end ¡ Blend services ¡ Integration is important (internally as well as externally)
  • 18.