Applications – Beyond Bits and Bytes
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Transcript of Applications – Beyond Bits and Bytes
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Applications – Beyond Bits and Bytes
Arjun Roychowdhury
Director, Converged Applications & IMS
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Broadband Penetration – Established Markets
Key Takeaway: More than 50% of households in all top 25 countries have BB. This is critical for any Broadband ‘Appliance’ to touch our lives
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Broadband Growth – Emerging Markets
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Broadband – Growth vs. Penetration vs. Population
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Recognizing ‘user acceptability’ of the Internet
The Internet is already a core part of the target market’s lives: Comfort with the Internet:
We don’t check Yellow Books, we ‘Google’ Comfort with the Internet as a Communication Service:
Vonage added 1m subscribers in 2006 But customer churn of 2.4% - reason: Cable VoIP !
Skype – 150m subscribers by end 06 Comfort with ‘social networking’ (or, more than just voice)
Myspace surpassed 50million unique visitors in 2006 Youtube surpassed 18million unique visitors in a year
approx 8m million US Mobile subscribers are capturing videos to mobile phones
US Internet ad spend increasing @ 30% Y-Y ($12.5B 2005) 5% of total US ad revenue telecom companies account for 7% of internet ad revenues
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Why does this change anything ?
Sudden Competition: Suddenly, Verizon, who has never been into TV, can transmit IPTV
over BB lines, threatening DirecTV, DishTV, Comcast Suddenly, Comcast, who has never been into Phone, can offer Cable
VoIP calling over BB lines, threatening AT&T, Verizon, SBC etc. Skype decides to offer free PC-PC calling and low rate PC/phone
calling over BB lines, threatening all Telco voice providers Joost offers live TV streaming on your PC via BB lines, threatening all
TV providers WiMAX operators (example, ClearWire) threaten cellular providers
by allowing mobile availability of broadband Hard Fact:
So, if Clearwire + Skype + Joost get together, what happens to the almost trillion dollar industry of ‘communications’ ?
Hard Truth: BB availability is a leveling field. Providers need to fit in or be left out.
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The Threat to Telcos
Mar 2007: Report from Analysys: Market research firm, Analysys, estimates that Skype and
similar services could rob the traditional telephony market of 5.4 percent of the global fixed telephony revenues by 2011, some $US18.2 billion (of $364b).
New players, such as Skype and Google, are successfully fostering novel forms of communication among online communities, potentially posing a major threat to core communications revenues. The usage associated with these services, while predominantly incremental at present, will increasingly substitute for traditional communications services
Market for content aggregation of on-demand video by online retailers is likely to be worth around $US820 million in 2011
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Are these BB Apps being used by us ?
Here are some examples: Before YouTube came in, people did not need to watch ‘user
videos’ on the net. Today, it has 100m videos streamed per day, 65,000 new video clips uploaded each day
Before Skype came in, people did not need their PC to make calls. Today, Skype has 25% penetration in BB subscribers in EU, 50%+ in Brazil and Israel, 43% in Taiwan
Before Myspace came in, people never needed virtual internet communities.
70m+ users in 3 yrs 250,000 new users added each day
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Money value of Blended Applications
“Blended Applications” – use one IP stream to deliver multiple services (bundled) but provide an avenue to connect them in some way example: You are listening to a radio stream of
“Comfortably Numb – Pink Floyd” – on the side you have a small video preview of their concert (feed from IPTV service) and a sidebar on where they are performing next (feed from MTV News)
Hard to do ? What if it takes 10 minutes to do it ? Yahoo Pipes ! Unix Pipes – for the Internet World
Money Value Biggest SP concern: Subscriber Churn
Single Service Churn Rate: approx 2.3% multiple service churn rate: approx 1.2% (source: Bell Labs Research)
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Application: Think Usability & Innovation
COMMODITY MARKETLifespan for differentiation: typically 3 yrs
SPECIALIZED MARKETLifespan for differentiation: typically 5-10 years
PERSONALIZATION MARKET:Touch the lives of users.
Protocols
Infrastructure
Innovate
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SaaS:Old Wine, New Bottle, New Buyers
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A Good idea vs. a Bad Idea
Web 2.0 is ‘hype’ because of bad-ideas, not fundamentals
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Mash-ups: Anything beyond Cool?
Key-Concept: Provide infrastructure, provide tools, let user’s build:
Yahoo Maps and Google Maps are mash-ups
Zillow – mashup company for real-estate, location, and price with analysis
Sales-Force: most successful Sales Automation tool has completely gone online – APIs for extension
Key logic: Gives users the tools (example Yahoo Pipes), they will innovate: example:LastTube (Last.fm meets Youtube)
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The Unification Game – think Service Control
LTE WiMAX
Irrelevant ! It’s all about a Broadband PIPE
Uniformed Service Delivery X Wireline/WirelessUniformed User/Device IdentityUniformed Charging/PolicyUniformed User Experience
IMS!
Service Delivery Platform
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Mobile: Voice vs. Data - Facts
Voice
Data
src: Yankee Group
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Application Trends Mobile Section is seeking applications to supplement decreasing voice and
steady SMS revenues: In US MVNOs are aggressive about increasing margins In EU/UK, MNOs are much more innovative that US counterparts
IPTV roll-out in a bid to diversify revenue streams, due to declining voice revenues
Youth markets – example: playlists, iTunes, ratings Gaming – second life: virtual vs. real life – which do you prefer ? User Generated Video vs. Professionally Generated Video
‘Browser based model’ not acceptable in mobile world – local client install is the way to go. In a survey of around 50 vendors (mostly entertainment space) (typically ISVs or Content Providers for mobile space) Native: 18, J2ME:12, Flash-lite:20 Feedback: J2ME, too slow: Native – not portable: Flash-lite: ideal but has
limitations
AJAX restricted to desktop, non media intensive real-time uses at most (collaboration of documents, slick interfaces etc)
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Increase your perspective – the world is bigger than bits and bytes
See it on Youtube here
Download hi-res version here
This version is what I presented in the tech seminar. You will not be able to click it, since it linked to a copy of the video on my desktop. Instead….
How the Internet has changed under our nose – did you realize it ?
TURN YOUR SPEAKERS ON!
credit: Prof. Michael Welsh