New Business Models for Network Operators

International Telecommunication UnionNokia Siemens Networks
ITU-T Workshop on
Geneva, 9-10 February 2009
International Telecommunication Union
Subscriber-centered, information-driven
Customer Insight
Managed Experience
Converged Experience
Personalized Service
1
Unify subscriber data across network and services
2
Simplify and personalise services
70% are planning to start creating a single view of subscriber data by end of 1H 2009
Profile subscriber
3
Reveal customer insights
76% say customer profiling is their first area of interest for subscriber data
Expose subscriber information to third
party eco-system
Exploit new
business models
64% say identity management is second highest area of interest for subscriber data
Service providers have become detached from their real-time subscriber data – which severely limits their capacity to appropriately interact with customers and partners.
Allows new competitors emerging from the content or retail sectors to exploit the new possibilities of aggregate services coming from Web 2.0 communities or the convergence of fixed and mobile services.
At present, for many service providers, customer data is spread across many different systems – often across different departments and in totally incompatible formats – with all the ultimately unnecessary cost, efficiency, error, duplication, synchronization, support and integration overheads that accompany such an approach.
Given the history of the telecommunications sector, such an inheritance has been unavoidable
What’s important now is to make sure that the inheritance of data fragmentation doesn’t continue to cause further complications and headaches in the future.
Anytime, Anyplace, Anywhere
As the metabolism of the whole industry gears up several notches at once, network architectures and their underlying IT systems must be able to respond in real-time to increasingly complex interactions as customers move between devices, access technologies, payment methods and even identities
The future of telecommunications being predicated on an ability to offer speech, content and applications ‘anytime, anyplace, anywhere’ – to the same rigorous standards of service quality
Holding The Vision
This vision will be severely limited by an inability to bring together relevant subscriber data:
As customers move from cellular to WiFi networks or home PC´s, their device preferences are lost and services become annoyingly inconsistent.
As domestic broadband customers surf between their IPTV, web, email, RSS feeds and MMS, their service preferences and supporting data fail to transfer
As tele-workers move between personal and business time during a normal day, they are faced with having to constantly re-key and re-log network identity information to gain access to the right environment.
Service providers have limited ability to combine contextual information with interests, communities and content to offer attractive and premium-priced aggregated services.
Identifying The Subscriber
If a network operator is to make the essential next step towards providing what are truly personalized services, then a consolidated, real-time, de-fragmented picture of the subscriber must be available to act as the catalyst for rapid service creation, deployment and delivery
Standards-based Architecture
An open, standards-based architecture that sits at the heart of the network creating a horizontal and unified subscriber data layer across all applications.
Separating application logic from the subscriber data liberates and unifies customer data that is currently locked away in silo, closed and often proprietary systems.
Through this unified approach, mobile, fixed and broadband service providers can take control of their subscriber information, unlocking and securely sharing data across an array of applications, networks and partners.
By consolidating this data, applications are able to share one complete, rich and consistent view of the subscriber data instead of limiting its usage.
Unified Subscriber Data
Data consolidation achieves this through several ways:
By creating one operator common data model, subscriber data can be harmonized across the network into one logical data layer, removing data inconsistencies and duplications.
This ensures a distributed data architecture can be centrally managed throughout its life cycle, essential to the evolution and integrity of the data model.
Where data cannot be consolidated, it is federated from silo data sources to bring it into one complete view
All data appears to form one common information model, but may be stored in a third-party SQL RDBMS database
By having one database, only one point of integration is exposed for all applications
This simplifies subscriber and service provisioning, eliminates application integration complexity – and means that only one database ever needs to be updated.
Wasted network capacity is eliminated by simplifying network architecture, reducing server and storage requirements, and sub-optimal usage of database software licenses
System resilience and scalability can be more optimally managed through data consolidation, delivering carrier-scale availability through a highly distributed real time architecture.
Common Data Model
Although ‘putting everything into the same box’ delivers demonstrable savings, it’s from the flexibility in how subscriber data is structured, distributed, exposed and managed that the real tactical and strategic benefits accrue – and through the promotion of a common data model tailored to an operator’s data requirements.

Static data is updated infrequently but must be read in real-time by many applications
Transactional data defines entities that are derived from transactions and service usage.
Dynamic data is constantly updated as the subscriber interacts with services, manages subscriptions and changes between environments
Operational data enables the

76% of operators state that subscriber data management is the most important convergence issue for their organisations over the next 12-24 months*
83% of operators say that real-time subscriber data is critical to improve
the subscriber experience*
Subscriber Data Management
87% seek to improve customer insight in next 12 months*
Subscriber Intelligence Framework
Only 14% have real time data analysis available to them*
53% state existing customer data doesn’t allow for profiling*
Customer Insight
Managed Experience
64% of operators
as a key issue*
Policy Management Framework
68% of operators
see access and authentication data as obstacles to providing seamless services between different access networks*
* Loudhouse Research on behalf of Nokia Siemens Networks
Customer Insight
Managed Experience
Broadband bit pipes
Transform or become a bit pipe?
Operators relegated to being bit pipe providers could lose out on as much $1 trillion in the emerging Web 2.0 market. Source (LIGHTREADING, VOL. 7, NO.6, JUNE 2007)
Users go straight to Google, Yahoo, or Facebook services via flat-rate data pipes (I do, do you?)
How can the operator exploit subscriber and data assets, generate revenue, and win customers ?
- Subscriptions location, presence, reachability
- Web and mobile single sign-on, anonymous federated services, identity brokering for third-parties
- Trusted identity provider, payment option, content sharing, communities, device-based identity, security policy
Customers face a complex maze of devices, services, access methods, and threats. Single-sign-on and federated services simplify the user experience while
- maintaining anonymity and security
Monetizing Subscriber Data
The Internet-based ecosystem – Amazon, eBay, Google, etc. – already exploits customer data
76% of operators believe customer profiling harbours the greatest business potential
Targeted mobile marketing yields response rates as high as 45%**
Operators see subscriber identity management as a top priority
*Source: Apertio Loudhouse Research, Q3’07
**Source: Blyk MVNO first quarter results
Operator poll: What are the most relevant areas of
subscriber data intelligence in your opinion?*
CAGR = 21.6%
Operators
New
Trusted billing
will enable new revenue opportunities, and enhance the user experience
Network-agnostic identity management is the key component of tomorrow’s multi-access network
The role of identity information will evolve, strengthening the operator’s position in
the value chain
New Internet revenue streams await network operators
The operator unifies subscriber profiles with SSO and a common profile
Common repository for subscriber information
TCO-optimized IDM for multi-access and convergence
NSN is proposing a (federated) identity management system for telecommunication operators providing a translation between the 3GPP-based and Internet-based universes which will:
Store common subscriber profiles in the real time One-NDS directory
Provide Web-Single Sign On (SSO) according to the SAML V2.0 standard with support for any SAML V2.0 compliant Web Service Provider
Support attribute queries according to SAML V2.0
Provision identities into One-NDS using the Provisioning Gateway based on SPML (OASIS)
The system’s authentication framework will support the following authentication modes:
Two-factor authentication by username + password plus IP-data session (retrieved from One-AAA or NSN NG IDM)
3GPP-GBA authentication of mobile devices in cooperation with One-BSF
Support of other authentication modes via “plug and play”
Service blending with caller ID on IPTV
Personalized web homepage
Web single sign-on
Operator works with third parties or in-house service providers circle of trust and new revenue streams
User signs on once to access all applications in the circle, and enjoys
a convenient user experience
Enriched portal attracts & retains users
Cuts costs & saves time by
using a central approach to identity
mashing up in-house and third-party applications with SSO
Establishes a reputation as a trusted partner in the Web 2.0 world
Operator challenges
Reduce churn to Web 2.0 service providers and other telcos
Enhance the user experience
Establish a trusted image/brand
Anonymous federation and queries
Only trusted partners and authenticated users view the selected subscriber’s identity data
Brokers across the network
SP and protects subscribers’ privacy
Single storage place for all identities and attributes increases security, saves costs and simplifies user management
Automated processes for network access and web domains increase efficiency
User provisioning
Password management
Access control
Operator challenges
Control costs and maintain security while increasing access to information
Protect subscribers’ identities
Cost of compliance for legal age and nationality
A gambling, adult content, government, adult purchase can pay US $22 per registered user to verify compliance today
Operator provides and guarantees legal age and nationality for competitive fee
Generate revenue for legal age and nationality verification service to online sites requiring strict compliance.
Operator can provide timely verification whilst protecting privacy and using existing subscriber assets.
Quick return on investment
Operator challenges
Become a major player in the Web 2.0 world and generate revenue from subscriber data assets as a trusted identity provider for service/content providers.
How to protect subscribers privacy?
Operator benefits
Use-case overview
Improve CAPEX/OPEX
Leverage subscriber loyalties
Security challenges:
Protecting subscribers’ identities, identity data and privacy as well as engaging subscribers with their data
From a standards’ perspective it’s a brave (and exciting) new world
X.500 – A PARADISE Found and Lost
One of the best things X.400 ever did was to spawn the X.500 series of recommendations for distributed directory services, published in six editions
As with X.400, X.500 was originally driven by telcos who wished to provide a global directory of OSI and other services
Realised to some extent in the R&D pilot, PARADISE
But failed, despite Herculean efforts, in the NADF and Eurescom initiatives
In the ’90’s X.500 went underground as LDAP-based systems flourished in the corporate space
A simpler protocol, API and overall concept
But it still lacked many things … in terms of robustness, distribution and access controls, there was no match
One-NDS
During the ’90s, a group of developers working for Orange UK in Bath were looking at network operators requirements for real-time applications, primarily HLRs (Home Location Registers)
Having already used RDBMS, they turned to X.500 as a preferable deployment model
That idea became One-NDS, a real-time, resilient and distributed and application hosting environment conceived and built for 2G and 3G telecommunications networks
Specifically designed to enable the use of a common centralised database by multiple applications through the support of open data access protocols
Highlights
Over 740 million subscribers
Nine NSN and hundreds of local dataless applications
… let’s keep up the good work!

New Business Models for Network Operators

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