DSL-Partner Customer Seminar - Nov 2010                                  CWI Web2.0 and the Future Internet: The change in...
Collaborative Business inthe Future Internet!   Towards the Future Internet     –   Web 2.0 experiences in customer/busine...
Web 2.0:Customer/business relations!   Web 2.0 in business     –   Networking, Collaboration,         Public Communities  ...
3rd wave of convergence• 1. wave: All-IP   – flat world, global business                                                  ...
Prepare for collaboration                                  Interoperability                                               ...
Example     Mobile & Fiber = Net!Works          (EU’s new technology platform)          Collaborative Business in Future I...
Future Internet and Internet of Things       Real world statements                                  duced                0...
Diverged Traffic & Revenue Growth                                                                                         ...
LTE:Expectation and Real network usage                                                          • Expectation       [Motor...
LTE:Expectation and Real network usage                                                          • Expectation       [Motor...
The LTE simulation environmentSignal to Noise ration in download(SISO, macroscopic fading)                                ...
First simulation results      Signal to Noise ration in download                    !      Networked dimensioned for      ...
Business perspective of Femtocells                                                                          CWI           ...
Business perspective of Femtocells                                                                          CWI           ...
Collaborative Business Models      Near Field Communication                   (the mobile payment)         Collaborative B...
NFC technology and use case!   Based on RFID technology at                       !          ECMA-340, ISO/IEC 18092 &    1...
NFCIP-2 Interface and protocol(ISO/IEC 21481)                                                   Proximity Card         Vic...
NFCIP-2 Interface and protocol(ISO/IEC 21481)                                                   Proximity Card         Vic...
Third party business model                                                •        Media,        Content                  ...
Ecosystem:               for NFC                                                                                     CWITh...
Challenges and Benefits                          200                          150Operator’s market share                  ...
Challenges and Benefits                          200                                                      How insecure is ...
“Wer zu spät kommt, den ...”                       I was wrong!          Collaborative Business in Future Internet   Nov 2...
“Wer zu spät kommt, den ...”                       I was wrong!          Collaborative Business in Future Internet   Nov 2...
Analysis and Expectations            Collaborate or vanishExamples:•IBM•Altibox•Apple            Collaborative Business in...
Analysis and Expectations            Collaborate or vanishExamples:•IBM•Altibox•Apple            Collaborative Business in...
Analysis and Expectations            Collaborate or vanishExamples:•IBM•Altibox•Apple            Collaborative Business in...
Analysis and Expectations            Collaborate or vanishExamples:•IBM•Altibox•Apple            Collaborative Business in...
Conclusions!      Future Internet means       collaborative business!      Example: Indoor coverage       with high data r...
CWIThanks toMy colleagues at UNIK                             •  Vegard Kjenner from Netcom for LTE usage• Mohammad Mushfi...
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Web2.0 and the Future Internet: The Change in Business Models and Infrastructure

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Collaborative Business models are the way forward for the new relation between corporates and customers. The presentation shows that "Integrated Operations (IO)" is the new way of working together, the way where companies bring their assets into a common business operation. The oil & gas industry in Norway has joined under the IO umbrella, but it is applicable to other areas.

While Web2.0 has changed the customer/business relationship, most businesses are still running under "historic means". The example of mobile networks is used to show that only collaborative business, where users own their femto cell, will satisfy the capacity requirements of users. A second example from near field communication (NFC) is used to demonstrate how collaborative business works in praxis.

The slide set concludes with examples from IBM, Altibox and Apple, who have opened their business to involve the customers and build an ecosystem with other companies.

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Web2.0 and the Future Internet: The Change in Business Models and Infrastructure

  1. 1. DSL-Partner Customer Seminar - Nov 2010 CWI Web2.0 and the Future Internet: The change in business models and infrastructure Josef Noll, Mohammad M. R. Chowdhury, Muhammad Bilal Ahmad, Ayaz Khan Afridi about: Josef Noll, Professor on behalf of the University of Oslo/UNIK Center for WirelessChief Technologist, Movation AS Innovation Norway josef@unik.no CWI Norway (http://cwin.no) Nov 2010, Josef Noll
  2. 2. Collaborative Business inthe Future Internet! Towards the Future Internet – Web 2.0 experiences in customer/business relations! Infrastructures and Services – A mobile network? – Capacity needs for wireless operations! Collaborative business models – between Corporates and – between customers and corporates! Analysis and expectations – either you collaborate or you vanish – Examples: IBM, Altibox, Apple Collaborative Business in Future Internet Nov 2010, Josef Noll 2
  3. 3. Web 2.0:Customer/business relations! Web 2.0 in business – Networking, Collaboration, Public Communities – Apple: The business environment & the APs – Mobile Monday, First Tuesday....! Prosumers: Producers = Consumers – Youtube.com, BBC, ... – SUN, IBM Collaborative Business in Future Internet Nov 2010, Josef Noll 3
  4. 4. 3rd wave of convergence• 1. wave: All-IP – flat world, global business all-IP• 2. wave: Telecom - IT - Broadcast – from fixed to mobile and quadruple play – Telecom = mobile Telco-IT• 3. wave: Future Mobile Internet core – Collaborative business business – The business merger Community Future Internet Collaboration and cooperation drives developments 4 Innovation Stock Exchange - Sep 2010 - Josef Noll
  5. 5. Prepare for collaboration Interoperability Built Partner Open APIs Networks core business CommunityShare revenue Future Internet Customer Involvement Share knowledge Collaboration and cooperation drives developments 5 Innovation Stock Exchange - Sep 2010 - Josef Noll
  6. 6. Example Mobile & Fiber = Net!Works (EU’s new technology platform) Collaborative Business in Future Internet Nov 2010, Josef Noll 6
  7. 7. Future Internet and Internet of Things Real world statements duced 007) the world pro ” ! The speed of development "La st year (2 rs than rice corns nor R&I isto Tele ore trans tian Haugli, CEO, storage on single chip m 2008 – Han s Chris "By 2012, iPods ... be capable of holding all music you will ever hear in your life (or one year of video) By 2018 it can hold all videos ever produced” – Nikesh Arora, EMEA manager, Google source: Gerhard Fettweis, TU Dresden "The priv ac an illusio y you are so fond n” of is mos– Scott M tly c Nealy, S un Micros "Now ystems Your mobile phone is the In so we h ave representative in the the mme year roughly digital world w– H obile ne e will ha 5.2 Mio m ans C tw ve 30 o hristi ork” ...50 bile sub and the gateway to the an H Mio s augli , CEO devi cribers. world of sensors ces o , Tele n nor O bject s 2010 Collaborative Business in Future Internet Nov 2010, Josef Noll 7
  8. 8. Diverged Traffic & Revenue Growth Traffic " From Kilo (103 ) bytes to Tera (1012 ) and Zeta (1021 ) bytes Complexity " Global ubiquitous Internet-based solution with hyper Connectivity " Hundred-fold increase in network flow brought by mass Gap terminals and mass digital content, and the thousand-fold, increase in traffic flow on mobile networks Revenue " Users are spending more time on the phone & internet Time " Average household spending on communication falls " Consumer pay less while getting better value -> they pay ~30% less than 5 years ago Quality Coverage Capacity %Map %Map %Map " Significant growth in traffic while slow in revenue " User experience at risk Walled Open "What%do%we%do%with%a%surging%traffic% Garden Access #Limit/control%it? #Turn%it%to%revenue? #Bring%the%cost%of%it%down?% Relay Femto Small Micro/Pico Cost reduction is a very critical aspect of the future networks. Macro Telecom seems to be the only sector delivering price decrease8 [source: Sharam G Niri, 2010] (adapted)
  9. 9. LTE:Expectation and Real network usage • Expectation [Motorola 2009] – 38% of users > 20 Mbit/s – 32% of users 7...20 Mbit/s – 30% of users 1.2...7 Mbit/s 70-80% indoor usage 70-80% indoor usage 70% indoor users means 30% reduction of cell capacity, and only 45% of satisfied users Collaborative Business in Future Internet Nov 2010, Josef Noll 9
  10. 10. LTE:Expectation and Real network usage • Expectation [Motorola 2009] Realit – 38% of users > 20 Mbit/s y16% – 32% of users 7...20 Mbit/s 17% – 30% of users 1.2...7 Mbit/s 32% 35% - no femto 70-80% indoor - indoor usage usage 70-80% indoor usage 70% indoor users means 30% reduction of cell capacity, and only 45% of satisfied users Collaborative Business in Future Internet Nov 2010, Josef Noll 9
  11. 11. The LTE simulation environmentSignal to Noise ration in download(SISO, macroscopic fading) Target sector with 3 indoor femtocells (including macroscopic fading) y_pos [m]Simulation of 7 base stations, each with120 deg sector antennas x_pos [m] Collaborative Business in Future Internet Nov 2010, Josef Noll 10
  12. 12. First simulation results Signal to Noise ration in download ! Networked dimensioned for (SISO, macroscopic and shadow fading) ~80 Mbit/s ! Worst case: – indoor users at the edge of the cellsy_pos [m] – 20 dB attenuation (into buildings) ! 20-30% indoor users reduces aggregated throughput to 40 Mbit/s x_pos [m] ! 50% indoor users let the network collapse (aggr. throughput <15 Mbit/s) Realistic: >90% indoor users in LTE Collaborative Business in Future Internet Nov 2010, Josef Noll 11
  13. 13. Business perspective of Femtocells CWI 40% market share Annual Network Costs [$] total costs OpEx and CapEx calculations based on “free provisioning” of home base stations [source: H. Claussen, 2007] percentage of customers with home-BS Total network cost reduction more than 70% with user-owned base stations Nov 2010, Josef Noll 12
  14. 14. Business perspective of Femtocells CWI 40% market share Annual Network Costs [$] total costs OpEx and CapEx calculations based on “free provisioning” of home base stations [source: H. Claussen, 2007] percentage of customers with home-BS Total network cost reduction more than 70% with user-owned base stations Nov 2010, Josef Noll 12
  15. 15. Collaborative Business Models Near Field Communication (the mobile payment) Collaborative Business in Future Internet Nov 2010, Josef Noll 13
  16. 16. NFC technology and use case! Based on RFID technology at ! ECMA-340, ISO/IEC 18092 & 13.56 MHz ECMA-352, …standards! Typical operating distance 10 cm ! Powered and non-self powered! Compatible with RFID devices! Data rate today up to 424 kbit/s! Philips, Sony and Nokia Collaborative Business in Future Internet Nov 2010, Josef Noll 14
  17. 17. NFCIP-2 Interface and protocol(ISO/IEC 21481) Proximity Card Vicinity Card NFC device Reader Reader InterfaceStandards ECMA-340 ISO/IEC 14443 ISO/IEC 15693 PCD mode VCD mode (MIFARE, FeliCa) (facility access) NFC market and applications, 2009 and beyond 28.2.2008, Josef Noll 15
  18. 18. NFCIP-2 Interface and protocol(ISO/IEC 21481) Proximity Card Vicinity Card NFC device Reader Reader InterfaceStandards NO 15693 okay ECMA-340 ISO/IEC 14443 ISO/IEC 15693 PCD mode VCD mode (MIFARE, FeliCa) (facility access) NFC market and applications, 2009 and beyond 28.2.2008, Josef Noll 15
  19. 19. Third party business model • Media, Content • Banks, Service providers provider • Telecom, Corporate, Home Service Paymentaggregator provider • Service aggregator • Convenient interfaces • Ease of use Identity and personalisation provider • Identity and personalisation Authentication Customer provider care and Access • Convenience provider • Trust 16 Josef Noll, “Who owns the SIM?”, 20 November 2007
  20. 20. Ecosystem: for NFC CWIThe collaborative business model – Telenor and DnB NOR establishes TSM Nordic AS in April 2008 Source : Mobey Forum Ltd. + Bent Bentsen, 2008 Nov 2010, Josef Noll 17
  21. 21. Challenges and Benefits 200 150Operator’s market share 100 50 0 2006 2008 2010 year Telecom favourite Third party favourite 18 Josef Noll, “Who owns the SIM?”, 20 November 2007
  22. 22. Challenges and Benefits 200 How insecure is the Convenience Internet? of usage Will the phone be the only secure 150 element?Operator’s market share 100 Visa and Mastercard enable convenient small amount purchases 50 Are Google, facebook and flickr more trusted than telecom operators? 0 Dynamic service environment? 2006 2008 On-the-fly creation of services? 2010 year old news: May 2007 Telecom favourite Third party favourite 18 Josef Noll, “Who owns the SIM?”, 20 November 2007
  23. 23. “Wer zu spät kommt, den ...” I was wrong! Collaborative Business in Future Internet Nov 2010, Josef Noll 19
  24. 24. “Wer zu spät kommt, den ...” I was wrong! Collaborative Business in Future Internet Nov 2010, Josef Noll 19
  25. 25. Analysis and Expectations Collaborate or vanishExamples:•IBM•Altibox•Apple Collaborative Business in Future Internet Nov 2010, Josef Noll 20
  26. 26. Analysis and Expectations Collaborate or vanishExamples:•IBM•Altibox•Apple Collaborative Business in Future Internet Nov 2010, Josef Noll 20
  27. 27. Analysis and Expectations Collaborate or vanishExamples:•IBM•Altibox•Apple Collaborative Business in Future Internet Nov 2010, Josef Noll 20
  28. 28. Analysis and Expectations Collaborate or vanishExamples:•IBM•Altibox•Apple Collaborative Business in Future Internet Nov 2010, Josef Noll 20
  29. 29. Conclusions! Future Internet means collaborative business! Example: Indoor coverage with high data rates expectation reality>20 Mbit/s 38 % 16 %7-20 Mbit/s 32 % 17 %1.2-7 Mbit/s 30 % 32 % -35%• Experiences – Collaborate - or you will loose – Incorporating the customers• The Future Internet as the business merger Collaborative Radio & Operation, the driver for cost-effective future wireless broadband networks Collaborative Business in Future Internet Nov 2010, Josef Noll 21
  30. 30. CWIThanks toMy colleagues at UNIK • Vegard Kjenner from Netcom for LTE usage• Mohammad Mushfiqur Rahman • Per Hjalmar Lehne from Telenor for Chowdhury for 5G discussions and generations calculations • Jørgen Grinnes from Telenor for 3G – see tutorial ICWMC 2010 for whole picture examples• Arlindo Bengui André, Muhammad Bilal • Bent Bentsen from DnB NOR for the Ahmad, Ayaz Khan Afridi for LTE work information on Payment and TSM NordicMy colleagues at CWI • Truls Berg from Movation for mobile usage• Frank Reichert for comments on 5G dataOur cooperation partners at CTIF (Aalborg • Linda Firveld from MobileMonday forUniversity) femtocell industrialisation• Ramjee Prasad for initiating the “discussion” • Shahram G Niri from NEC for collaborativeOur industrial partners discussions• Bjørn Amundsen from Telenor for My Telecom colleagues from various Eurescom discussions on coverage and capacity projects• Tom Guldberg from Network Norway for • and many, many more.... femtocell more info: "Collaborative Radio for 5G Mobile and Wireless Communications, ICWMC 2010 tutorial, Valencia, Sep 2010 Nov 2010, Josef Noll 22

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