Post on 12-Sep-2021
Soc Classification level 1 © Nokia Siemens Networks
Bridging the Internetand Telecom worlds
Expocomm, September 2008
2 © Nokia Siemens Networks
Service Trends
3 © Nokia Siemens Networks
Web2.0 Megatrends
1. The Web is being reengineered…
2. Empowered devices and consumers…
3. Web or Mobile ? It doesn’t matter…
4. Representing and living in the Web…
5. A new wave of innovation, partnering and media consumption…
Consequences: Changing Business Models and Success Factors…
4 © Nokia Siemens Networks
MEGATREND #1: The Web is being re-engineered From Web 1.0 to Web 4.0
Web 1.0
1990 - 2005
Developing the basic Internet platform and routing network. Making information widely accessible via HTML.
Web “X-end”
300bps – 100kbps
Major carrier investments in global networking infrastructure rollout, focus on capacity expansion and connectivity to the masses
2000 - 2010
All about enhancing the Web User Interface, open programmable systems and connecting people
Web “Front-end”
100kbps – 10Mbps
Partnerships with media companies in the content space, Internet-based social networking applications, advertising business models, IP control systems & QoS
Web 4.0
> 2020
Immersive worlds, man-machine convergence, alternate realities, sensory experiences, personal online agents, hyper-broadband
Web “Front-end”
> 100Mbps
Fundamental shift in business model – new subscriber needs, communications far beyond voice, biotech forms of access, rise of the “Matrix” operator?
Web 3.0
2010 - 2020
The Web becomes intelligent, sentient, aware of its information and able to understand and anticipate its users needs
Web “Back-end”
10Mbps – 100Mbps
Key role to play in defining next generation IP network topology, focus on user-centricity, complete integration of devices into the network application layers
Web 2.0
TIMEFRAME
CYCLE
SYSTEMS
ACCESS
ImplicationsFor Telcos
IMPLICATIONSFOR TELCOS
Bridging Internet and Telecom / Author / Date
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#1: Today there is a heterogeneous zoo of Web2.0 offers in the market - the Web2.0 cube
User interest
social content
regional
globalVideo
generic
special
Purpose & motivation
Service origin
Bridging Internet and Telecom / Author / Date
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#1: Rapid increase of regional social networksExample Germany (Oct. 2007)
Bridging Internet and Telecom / Author / Date
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MEGATREND #2: End-user devices are becoming powerful nodes fuelling the growth of P2P network traffic and file sharing
Limits Shattered
• Faster CPUs, 3D graphics • Massive storage capabilities• Crystal clear displays• Media-centric
Always Online
• Multiple PDP contexts• Multiple access bearers• Application-driven• Web-centric
Intelligently Connected
• Push instead of pull• P2P applications• Intelligent User Interfaces• Node and presence aware
Bridging Internet and Telecom / Author / Date
8 © Nokia Siemens Networks
#2: Consumers are becoming empowered entrepreneurs Web2.0 - The rise of user generated content and „The Prosumer“
VideoVideo
Everything is going “OPEN”: open source, open social, open platforms, open content
Access for individuals to coding resources, knowledge, user groups, forums, blogs and tools to create almost anything digital
Consumers are changing their media consumption habits – classical models of entertainment programming are fast becoming obsolete
Distribution of media via the Internet is quicker, faster and reaches the target audience via ”hyperdistribution”
Bridging Internet and Telecom / Author / Date
9 © Nokia Siemens Networks
MEGATREND #3: People no longer distinguishing betw. Web & Mobile It’s ONLY about the Web
Broadband data via a mobile modem on a desktop PC is a viable alternative to fixed line Internet SP’s
Applications are no longer separatedbetween the telecommsdomain and the Internet domain
The average end-user doesn’t know (or care)about the technical difference between the delivery method of an SMS and an MMS message
By default, network operators no longer have voice subscribers, they have Internet subscribers, voice is just an application
Access to IP multimedia video, audio, tv and radio services is no longer a constraint from today’s mobile phones
Source: Nokia Smartphone 360 Survey, 2007
Bridging Internet and Telecom / Author / Date Bridging Internet and Telecom / Author / Date
10 © Nokia Siemens Networks
#3 People no longer distinguishing betw. Web & Mobile All modes of communications shifting to IP, and becoming richer
Voice
Text Messaging
Multimedia Messaging
Music Player
Still Camera
Video Camera
Social Networking
Mobile TV
FM Radio
High-Speed Modem
Web Browser
Navigation
Organiser
Instant Messaging
Weather Station
Online and Offline Gaming
Search Engine
Download Application
File Sharing
Bridging Internet and Telecom / Author / Date
11 © Nokia Siemens Networks
MEGATREND #4: People want to represent their identities in the Web The Web represents a means to live life through one (or more) online personas
People upload some of their most trusted secrets with total strangers to connect socially and feel part of a community
The MILLENIAL generation:-teenagers are invested in showing people their IDENTITIES
Facebook and MySpace represent two best examples of the social networking phenomenon
Facebook already allows people to email, IM, SMS, MMS and media share – from their mobile phones!
Space, time and distance are irrelevant in an online world for creating relationships: BLOGGING is creating a richly connected globalconversation
Social Networking sites allow people to feel like they have more control over their Bridging Internet and Telecom of self.
12 © Nokia Siemens Networks
#4: People want to represent their identities in cyberspace. The dawn of the Three-Dimensional Internet is upon us… but at a price?
People are creating 3D identities, called "Avatars" and letting these versions of themselves roam in virtual always-online worlds
SecondLife represents the closest thing to an online parallel universe, complete with governance and a self-sufficient economy
The Web is constantly learning from us, about us, tracking and storing our every online move, purchases and preferences
Bridging Internet and Telecom / Author / Date
13 © Nokia Siemens Networks
MEGATREND #5: Web2.0 players innovate in a rapid pace and diversify into the Telco service domain
Fixed Voice
Bridging Internet and Telecom / Author / Date
2004H1 2006H12006H1 2005H2 2005H22005H1 2004H2 2004H2 2005H1
Yahoo! Google MSN eBay/Skype
Mobile Voiceand Data
InternetAccess
Takes a stake inBPL venture
Partnershipwith BT
Partnershipwith SBC
Partnershipwith Verizon
Free access inHeathrow Airport
Free Wi-Fi inSheraton Hotels
Google, SkypeFund fon.comWi-Fi startup
Free/Paid Wi-FiIn San Francisco
Free Wi-Fi inMountain View, CA
Mobile search
Mobile IM
Mobile local search
Yahoo! Go Mobile
Mobile IMMobile search
Skype partnersWith Eplus
Handset with Nokia
Mobile local search
Handset with Ericsson
Handset with Motorola
Mobile email
Skype for PDAsPartnership
with 3
Free PC2PCcalls
Acquisition ofTeleo
Acquisition ofMedia Stream
PC2PCvideo calls
Partnership with MCIPC2 Phone calls
Acquisition ofSkype
Free PC2PCcalls
Partnership with Net2Phone
Google TalkFree PC2PC calls
PC2PCvideo calls
PC2 Phone calls to30 countries
PC2PCvideo calls
Acquisition ofDialpad
PC2 Phone calls
Phone2Phone VoIP
Source: Capgemini TME Lab Analysis
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Consequences: Telecommunication providers have to define their Web2.0 strategy now !
Fixed and wirelessbroadband as enabler
• Broadband is the growth segment in telecommunications
• Increasing access capacity at low flat-rate prices
Services independent of the network
• Broadband as enabler for all kinds of 3rd party services
• Market boundaries diminish through multi-play bundles
• No vertically integrated prime contractor anymore
Rapid usage growth and innovation
• Strong growth of Web2.0 community services
• „Free of charge“business models
• Expansion towards communication services
• Web2.0 offers start to cannibalize telco provider‘s• Legacy business – e.g. voice and SMS• New growth opportunities - e.g. YouTubeTV vs. IPTV
• Telcos are in danger to become a broadband bit pipe only – multi-play is reduced to multi-access
Urgency to act
Bridging Internet and Telecom / Author / Date
15 © Nokia Siemens Networks
Web 2.0 are successfully cannibalizing the usage of telco servicesIn France, the time spent on telco services now constitutes only 53% of the total timespent on communication. Estimated time spent on communications per person in France per week (%)
53%
Telcos
X1.9 4 hrs 25 mins2 hrs 23 mins
IM
SMS
WirelessVoice
Wireline(incl. VoIP)
95%
Telcos47%
OnlinePlayers
GoogleYahooMSN
SkypeAOL
1%2%5%
18%
75%
30%
15%
8%
21%
26%
20052000
Source: Capgemini estimates based on Arcep reports, IDATE, „Telecom 2.0: emerging usages and implications for carriers“, June 2006. MSN Report, „Europes Online Youth“ ; Comscore Media Metrix, Worldwide IM usage, May 2006
Bridging Internet and Telecom / Author / Date
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The Web2.0 market dynamics change the business success factors for Telco‘s
Telecom Business Web2.0 - Combined Telco & Internet Business
Competitive pricingcustomer attraction in a highlycomparable service landscape
Convenience and personalizationcustomer retention in a highly fragmentedservice, content and contacts landscape
ModularityShort-time-to-market and more variety by integration and win-win-partnerships with ASPs
End-to-endVertically integrated and standardized services solely developed by the provider
Boundless communication and sharingDifferentiation by most attractive platform for user interaction and user generated content
Predefined servicesDifferentiation by selling pre-defined service packages
Cash-in to indirect revenue sourcesUtilization of the customer information for persona-lized advertising and up sell of application bundles
Direct usage chargingMaximum exploitation of users‘ willingness-to-pay within the contract period
Bridging Internet and Telecom / Author / Date
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ForewordWeb2.0 service strategy development
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Typically telco providers own the critical assets for the Web2.0 business
Business success factors
Bridging Internet and Telecom / Author / Date
Acc
ess
inde
pend
ency
Transparency on Quality of ExperienceActual network and user profile information
Coordination of service building blocksInfrastructure for flexible 3rd party integration
Premium interactive servicesFeature rich communication platforms, e.g. voice
Customer intimacyUser data as basis for advertising and up sells
Assets for differentiation
Convenience and personalization
Modularity
Boundless communication and sharing
Cash-in to indirect revenue sources
19 © Nokia Siemens Networks
Telco Value Contribution to Web2.0
Bridging Internet and Telecom / Author / Date
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Communication providers can select out of four basic Web2.0 service strategies
Aggregate established Web2.0 services
Establish own Web2.0 service
Provider engagement
Serviceaccess
Web2.0Goes mobile
Web2.0 aggregation
UbiquitousWeb2.0Platform
Web2.0Platform
Fixed & Mobile
Fixed
Bridging Internet and Telecom / Author / Date
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Web2.0 Solutions & Evolution
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Flexible solutions for the Internet
Supporting your Web2.0 strategy
Efficient service control on any access and deviceConvenience & personalization
Bridging Internet and Telecom / Author / Date
Community solutions Boundless communication and sharing
Subscriber data management Customer data mining to cash-in to indirect revenue sources
Service Delivery Framework Modularity for 3rd party appli-cation integration and mash-ups
23 © Nokia Siemens Networks Bridging Internet and Telecom / Author / Date
24 © Nokia Siemens Networks
Example for a Web2.0 application: VideoSharing Blog to YouTube• Jill is sitting in the park waiting for her friend to arrive. Suddenly she notifies that an funny street
performance is taking place close to her. She decides that she would like to post the view on YouTube by using her 3G phone.
• Jill makes a phone call to the “YouTube number”, establishing thereby the SIP registration to the IMS. After listening to the pre-recorder announcement, she opens the camera slide and starts streaming the video to the blog server.
• The video is directly uploaded to YouTube using Jill´s YouTube account, and when Jill completes the recording, she receives an SMS (and/or email) with the link to the video, so she can forward it to her friends.
Bridging Internet and Telecom / Author / Date
25 © Nokia Siemens Networks
Example for a Web2.0 application: Start simple…. Identify Me / Central Identity
SMS
Rich Video Share2nd Life
Dating
VisualMailboxGaming
(Converged)Messaging
Voice Call
Bridging Internet and Telecom / Author / Date
26 © Nokia Siemens Networks
IMS combines the strength of both:internet and mobile world
Vertical Telcoservices Horizontal Internet services
IMS
BlendedServicesVoice
CS
Data
PS
VoIP
VoIP
Narrowband Broadband
• IMS enables new community based and blended services• IMS enables internet business models
Bridging Internet and Telecom / Author / Date Mobile World Congress 2008 Barcelona
27 © Nokia Siemens Networks Bridging Internet and Telecom / Author / Date
28 © Nokia Siemens Networks
Examples of Internet mash-ups
Bridging Internet and Telecom / Author / Date
SDFGoogle Map (location)
Friendster (social network communities)
Google Calendar (calendar)
General Web services (data) – example: EBay
Last.fm (music)
Mash-up (i.e. browser executable scripts,
widgets, player, web page)
SDF with API/SDK capabilities positions Telco in a comparable
position to ISPs such as Google and Yahoo in terms of openness to speed up more innovative long tail services
Japanese music & video crawler from YouTube &
Last.fm
Flickr (pictures)
YouTube (videos)
Starbucks coffee finder
Hotel locations with pictures and videos
Map & location based social community – Ebay & GoogleMap
29 © Nokia Siemens Networks Bridging Internet and Telecom / Author / Date
30 © Nokia Siemens Networks
Connecting the Web2.0 services with mobile users
Aggregation
Operator
Internet communities
et.al
User
User sends content from mobile phone
User views content with any phone or PC browser
• Easy upload of content photo, live video, … , to internet media communities while mobile
• Works with every mobile phonedoesn’t need a dedicated xSP client
• Choice of multiple media communitiesusers choose the content sharing platforms and email destination for their upload
• Boost operator’s trafficvia MMS and 3G video calls
Bridging Internet and Telecom / Author / Date
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Mobilizing Internet communities –Business model• Mobilizing Internet communities
• allows to participate from huge existing community base and strong xSP brands
• generates new revenue from subscription fees and additional traffic
• will counterbalance by far the possible losses from substituted traffic and interconnection fees
Newtraffic
Servicefees
trafficSubstituted
Net Revenue
Interconnectlosses
Mobilizing Internet communities –highly popular applications with short returnon invest
Bridging Internet and Telecom / Author / Date
32 © Nokia Siemens Networks Bridging Internet and Telecom / Author / Date
33 © Nokia Siemens Networks
Monetize your Subscriber relationship
The role of subscriber knowledge will evolve and generate new value chains. We have the solutions in place!
Network independent subscriber management is the key component of tomorrow’s multi-access network.
Subscriber data mining will enable new services e.g. advertising and knowledge brokering
Identity
Profiles
Preferences
Buddies
Services
Location
PresenceUsage
5 Bn peopleconnected
Operatorshave close & trustful
relationship to subscribers and communities
- a key value -
Bridging Internet and Telecom / Author / Date
34 © Nokia Siemens Networks
The advertisingopportunity
Each dimension of profiling doubles advertiser value
Purchasing historyCommunities TV channels watched (Sports, News & Info)Device Usage StatisticsDownloadsGamesGamblingFavorite PortalsRSS news feedsAttended MoviesInterestsShops at…
LocationPresence2G/3G coverageARPU/Account balanceWatched TV channel/clip# sent SMS/MMS# PI, av. Session lengthAd click rateCarrierDevice ManufacturerDevice PlatformDevice Capabilities…
Demographics Behavior Context
AgeGenderZip Code, Country Race / EthnicityNationalityLanguageEducationOccupationIncomeMarital statusFamily SizeHobbies (Sport, Travel, Entertainment, Shopping,..)...
Bridging Internet and Telecom / Author / Date
35 © Nokia Siemens Networks
Case history:Blyk
Customerchallenges
• Launch innovative new advertising-funded mobile services in highly competitive marketplace
• Minimize complexity and costs
Our solution • Supply, build and host the entire
operation of Blyk's core network
Business benefits
• No infrastructure investments• Rapid roll-out• Full flexibility in core network
operations
“We have full confidence in Nokia Siemens Networks’ability to provide a fully hosted solution for Blyk and its unique way of doing business.”
Kai Friman,Head of Member Operations,Blyk
Real Business Solutions
Problem? Solved.
Bridging Internet and Telecom / Author / Date
36 © Nokia Siemens Networks
Summary
37 © Nokia Siemens Networks
Summary: Web2.0 – Engage or stagnate !
Act timely Utilize your assets Monetize Web2.0
• Avoid cannibalization of legacy business
• Secure new growth opportunities*
• Implement new web business models
• Transperency on Quality of Experience
• Coordination of service building blocks /Mash Up
• Premium interactive services
• Customer intimacy
• Exploit indirect revenue sources
• Achieve short term com-munity business impact:‒ +7,5% Revenues‒ -7,5% SAC
*e.g. IPTV vs. Web2.0 TV, SMS vs. IM
Bridging Internet and Telecom / Author / Date
38 © Nokia Siemens Networks
Monetizing the subscriber information
Operators have close & trustful relationship to subscribers and communities- a key value -
The role of subscriber knowledge will evolve and generate new value chains.
Network independent subscriber management is the key component of tomorrow’s multi-access network.
Subscriber knowledge will enable new services e.g. advertising and knowledge brokering
Multitude of business models
Bridging Internet and Telecom / Author / Date
Soc Classification level 39 © Nokia Siemens Networks
Thank You !