De Silva_Mothlial_Paper - Pacific Telecommunications Council

PTC ’11 Proceedings
How to overcome the Threat Posed by Web 2.0?
Monetizing LTE/WiMax & Next Generation Strategies for Telecommunication
Name
e-mail
Contact No
My Research Website
:
:
:
:
Mothilal de Silva
[email protected]
+94777331122
www.telcovisionnlife.net
Abstract
Web 2.0 is a viral phenomenon built on collaboration, interaction and personalization. Innovative Web 2.0
companies like Google, leverage this viral environment to expand and unleash the capabilities of
developers to create customer centric services. Similar to the composers of world class music who
rd
orchestrate different tunes, 3 party developers mash up APIs and blend enablers to create multiple
services that satisfy 24/7 requirements of all the segments of users while enriching quality of life. At the
same time users become co-creators by creatively developing “DIY” type services on the fly. The Web 2.0
service creation framework, with its ease of use, low or free of cost and its collaborative nature, challenge
the “Walled Garden” style of service creation practiced by Telcos. Unprecedented growth of Web 2.0, its
popularity among Millennial or Net Generation and hijacking of telco bandwidth due to high usage, pose a
threat to the long term sustainability of traditional Telcos. Telcos need to follow a new business model to
tackle these issues while transforming and transitioning to Telco 2.0/4G environment.
This research paper recommends a universal, cooperative business model to achieve Co-excellence in
terms of customer retention, Growth in ARPU, Market Share, Profitability and Valuation and build a
harmonious eco system. The four concepts introduce in the study are;




Co-Existence of legacy and NGN will help to safeguard the investments already committed by the network while achieving
high ROIC and NPV.
Co-creation – Where the customers are empowered to create personalize experience intuitively.
Co-opinionate – redefine the target buyer group that act as influences, carriers of word of mouth and viral marketing, enticing
other buyer groups and nano segments.
Co-habitation – depict the strategic partnerships forged among the operator, 3 rd party content / application providers and
managed service / outsourcing providers.
Several “A day in life” scenarios ,use cases depicting different market segments are presented to envision
the future as a precursor to the business model. The 4-Co business model is fully supported and justified
by concepts presented by management gurus such as “The New Age of Innovation” by Prahalad, “Blue
Ocean Strategy” of Kim and “Anywhere” of Green.
The model presents a holistic strategy to transition to Telco 2.0/4G overcoming the threat posed by Web
2.0 while opening up a strategy pathway of cooperation with Web 2.0.
1.0
Introduction
The way in which the World Wide Web (www) is used by the internet users had
changed dramatically in the last few years. Social networking offered by Face Book, My
Space, Twitter, user generated content offered by U Tube, Flicker, Wikipedia, Virtual
Reality and new applications such as blogs, search engines like Google and “long tail”
services such as I tunes, Amazon, Interactive Gaming and different web based
enterprise applications adapted to business environment, transform the way people
Interact, communicate, entertain and carry out their business with the communities.
Web 2.0 associate with the web applications that facilitate interactive information
sharing, networking, collaboration and browser based “building blocks” development
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(“mashing up” different capabilities and creating composite or blended life style
applications that enhance their lives). Innovative companies like Google and device
producers like Apple unleash the capabilities of developers to produce mash up,
blended, composite services at an alarming rate, possibly using light weight APIs more
intuitively and self explaining manner. On the other hand Web 2.0 empowers the user
(ordinary / individual users and enterprise user) to create applications on the fly to
match their requirements and to suit their life styles. They make users as collaborators
by creating platforms for communications, interaction and by enabling the content
sharing/ and updating in a free and easy manner. Low Structuredness of platforms such
as Wikipedia, browser technologies such as Ajax, Flash and Java Script and open
publishing of APIs help Web 2.0 to eclipse static web sites.
Currently, Web 2.0 applications can easily be accessed from Mobile through internet
broadband facility (through 3G , HSPA ) and it is freely available on mobile phones as a
standard feature . As the Smart Phones such as Blackberry, Apple i-phones, Google
Android and some models of Nokia and Samsung has the built in user interfaces
(Widgets) for Web 2.0 applications. These internet providers can bypass the Telecom
Operators and reach the user directly. These Web 2.0, “ Over The Top “ applications
increasingly winning customer‟s heart and mind share and revolutionizing the way
people interact , communicate and transact each other .
Web 2.0 by pass traditional Telecommunication operators and make them plain vanilla
dumb bit pipes. In another way, Web 2.0, “Over the Top” providers “Hijack” the
bandwidth and infrastructure of mobile operators to run their business model based on
advertising revenue. In the current scenario increasing use of internet, Web 2.0
applications need more investment in terms of OPEX and CAPEX as operators need to
invest more on infrastructure to meet the extra bandwidth capacity demand. Currently
Web 2.0 do not share revenue with the operators who maintain legacy dumb bit pipes.
As highlighted by the CEO of Vodafone Vittorio Colao in the Mobile World congress ‟10
held in Barcelona, Telecom Industry is losing the central control of value chain and the
areas such as Applications, Search & Advertising and Device / OS are controlled by
OTT and Web 2.0 providers. Google hold a dominant position in applications (through
“Android” apps store) and device/OS (through “Android OS open source handsets with
Android apps store) in addition to search and advertising.
Different business models are pursued by different operators to cater to the demands of
the next generation consumers. As the operators are at different stages of technology
evolution, operators cannot adopt a “silver bullet” approach as diverse strategies need
to be adopted to suit current network infrastructure (without abandoning the investments
already committed), market conditions and resource availability. These business models
should be able to address the challenges posed by Web 2.0, which is built on
personalization, collaboration, participation and spreading all the nooks and corners
like a viral phenomenon. This paper will present a generic business model for next
generation telecommunication companies that can counter the threats posed by Web
2.0 and to achieve excellence in terms of customer retention, revenue growth,
profitability and valuation.
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1.1
SWOT analysis for the Telecommunication Industry in the context of Web 2.0
and Internet applications
1.1.4.1 Ability to assure QoS
1.1.4.2 Data Centric Business Model
1.1.2.1 Carrying the burden of legacy
network and high investment
for infrastructure evolution
1.1.2.2 „Walled
Garden”
Model of Telco
1.1.4.3 Context Awareness
Business
1.1.4.5 Fixed Mobile Convergence
1.1.4.6 Billing & Customer Care
1.1.3.1 All IP network architecture
reduction of OPEX
1.1.1.1 Telcos loosing the central
control of the value chain to
Web 2.0 & OTT
1.1.1.2 Strong
advertising
base
revenue model of Web 2.0 &
OTT
1.1.1.3 Cannibalization
of
voice
revenue to “Web 2.0 like Skype
1.1.1.4 Real time collaborative
communication platforms like
Google Wave
1.1.3.2 Availability of standardized
technologies like IMS, SDP
Figure 1: Summary of SWOT Analysis for Telco 2.0 in relation to Web 2.0
1.1.1 Threats
1.1.1.1 Telcos loosing the control of value chain.
Google and other Web 2.0 that dominate www and the parts of the mobile eco system could be
getting too powerful and they have a domineering position in content /apps, search ,advertising
and device/OS. Therefore in the emerging digital economy controlled by Web 2.0, operators do
not completely enjoy the ownership of customers. Web 2.0 and OTT are steadily making
inroads to telecommunication domain by capturing not only upstream components of the value
chain but also moving into core products areas such as voice and messaging.
1.1.1.2 Strong advertising based business models of Web 2.0 and “Over the Top”
Suppliers
Advertising Centered Business Model of Web 2.0 has posed a big threat to the traditional
Telcos as all the Web 2.0 services are offered FOC (Ex: Skype). Google created an advertising
empire by matching the advertisers‟ content to consumers‟ search intent. Even the HTC‟s Nexus
One hand set (runs on Android OS) would help Google to expand its search and applications
footprint which is monetized via advertisements.
1.1.1.3
Cannibalization of voice revenue
Voice continued to be the killer application for Telecommunications in the coming decades.
Internet base VoIP communication applications such as Skype, Google will substitute voice.
Increasing use of Skype, Google in place of voice over Telecom networks will not only affect the
“top line” of operators, but also the “bottom line” as the cost of providing infrastructure to meet
the increasing demand of Skype, Google will shot up CAPEX and OPEX by many fold. With the
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increase popularity of i-phone and potential up take of different smart phones based on Google
Android open source operating system, consumers will increasingly and conveniently access
VoIP, by passing the billing systems of Telecom Operators and piggybacking on Telecom
Operator‟s infrastructure.
1.1.1.4
New Threat to Telecom? Google Wave
Though Google had announced that it had suspended the release of its collaborative, real time
communication platform called Google Wave as a standalone product in last August, it will
integrate them into the existing product range. According to the beta test platform released by
Google, it brings together email, instant messaging, document and picture sharing, blogs, wiki,
face book and Twitter by introducing intuitive user interfaces. It is an open real time platform and
APIs are available to the developers and its utility will grow exponentially over a period of time in
standalone or in integrated form.
If properly implemented, this can be a direct challenge or threat to the Telecom platforms such
as Internet Multimedia Subsystem (IMS)/RCS and a disruptive technological solution for
Telecommunication.
1.1.2 Weaknesses relative to Web 2.0
1.1.2.1
Carrying the burden of legacy network and high investment for infrastructure
evolution
Unlike Web 2.0 eco system which is piggybacking on network providers‟ infrastructure, Telecom
or Telco 2.0 operators need to invest heavily to set up a IP based infrastructure that support
Next Generation Network. The telecommunication operators and vendors created IMS to enable
rapid introduction of IP and SIP services. IMS is supported by Service Delivery Platform (SDP)
and will be integrated with OSS/BSS systems.
Existing legacy systems cannot be replaced overnight by, Next Generation Systems such as
IMS, SDP and Next Generation OSS/BSS as it is paramount important to safeguard the
investments already committed for legacy networks and systems.
1.1.2.2
“Walled Garden” business model of Telco
In general Traditional Telecom companies tend to develop applications internally using IN and
other legacy systems. These Telecom companies have a reluctance to open up their networks
for 3rd party application development using APIs abstracting the Telco capabilities such as
Billing, Customer Profile and internal system capabilities such as SMSC, MMSC and IN.
Compared to Telcos, Web 2.0/OTT providers like Google, Yahoo, Skype, Amazon, e bay and
social networking services such as Face book or Twitter opened up their service APIs to 3rd
party developers to produce different applications serving different needs of the network users.
Ex: - “Find me” application using Google Map APIs
- Crime data publication using Google Map
1.1.3 Opportunities
1.1.3.1 All IP network architecture – Reduction of OPEX
As internet world, one of the more profound transformations in the Telecom world are the
adoption of IP based technologies in core, transport and access layers. The transition to an IP
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network for multimedia like voice, video and data sessions has significant implication for the
Telecom industry. Most of the Telcos might take an evolutionary approach and traditional legacy
TDM based CS telecommunication equipments will co-exist with modern IP and PS based
equipments. After a certain period, networks can be converted to 100% IP and legacy
equipments can be written off from books to avoid depreciation cost and minimize the effect on
the bottom line. IP equipments can reduce OPEX substantially.


IP equipments can free up space and substantially reduce the cost or rent of buildings/real
estate.
IP based NGN architecture is a convergent architecture where the core and transport layers are
common for all the access networks such as ADSL, GSM, 2G, 3G, Wimax etc.,
Multiple advantages are offered by IMS model compared to “Silo” or “Stovepipe” model of
legacy network; where applications exist independent to each other in a silo fashion. These
stand alone applications do not share resources even same resources or capabilities such as
billing, provisioning, authentication, registration, O & M, QoS are demanded by each of them. As
a result, common service capabilities and access technologies has to be replicated each time
when a new application is launched.
1.1.3.2
Standardization
The telecommunication world is about to undergo a fundamental shift due to IP based
technologies. Internet in pure form has limitations and customers experience poor performance
when it comes to real time applications such as voice, conferencing due to the best- effort
nature of the internet.
IMS primarily handles the session control for multimedia, authentication, authorization,
accounting (AAA) functions, QoS enablement through PCRF, Service orchestration or blending
through IM-SSF, iFC and SCIM or Enhanced SCIM or Service Broker function. But for proper
service creation, application blending (occur at different places), service exposure to 3rd parties,
service logic execution, service management, provisioning, charging and metering, content
management, operators should deploy a well integrated Service Delivery Platform in addition to
IMS platform. SDP should integrate with OSS/BSS systems through a SOA where network
elements are shared for service creation and service execution. IMS is standardized through
3GPP version of 5 to 8. SDP has many interpretations. But 3GPP is in the process of
standardizing Service Broker / SCIM platforms in version 9 of 3GPP standard.
Standardization + Low Cost = Increased Adoption
The acceleration of technology adoption has been caused by better communication and
increased standardization, which ultimately leads to lower cost technology. Standardization of
Telco 2.0 technologies (like IMS, EPC of LTE, SDP) that compute and collaborate with Web 2.0,
will increase the adoption of IMS and SDP technologies by Telecom operators to face the
challenges posed by Web 2.0 (IMS and EPC is standardized under 3GPP and SDP had been
considered for standardization by 3GPP)
1.1.4 Strengths
1.1.4.1
Ability to ensure QoS
QoS was inherently built in to the legacy Circuit Switch (CS) voice networks or Cable TV
networks. But Internet or Web 2.0 services cannot provide assured QoS demanded by internet
customer. Instead it provides “best effort” service. But with the introduction of IMS and related
platform of Policy & Charging Rule Function (PCRF) of the control layer, Telecom operators can
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provide QoS to the Web 2.0 kind of services. This is one way of differentiating Telco 2.0 against
Web 2.0.
1.1.4.2
Data Centric Business Model
Leading internet players such as Amazon, e bay, Google, Face Book & LinkedIn have become
information warehouses offering data centric products. For example Amazon infers and
provides the books you might be interested in buying based on the past data. Most of the
leading Web 2.0 providers profile the user, analyze content and push targeted advertising
during an information search. Among Web 2.0 companies, data centricity has gained sufficient
momentum in 2005, after the slow down following the burst of the dot.com bubble.
However telecommunication companies are in a stronger position to build business models
based on subscriber data as they posses customer demographic data, personal information,
usage information, frequent callers, networking information such as influencers, preferences,
IMS enablers such as location and presence. Telecom operators are in a stronger position than
Web 2.0 to leverage this information to conduct up selling and cross selling, targeted marketing,
targeted advertising, nano segmentation/ long tail marketing.
1.1.4.3
Context Awareness
The Context Management Framework broadly covers presence (availability), current moods or
feelings of a person, current activities, the location of the person, network used by the other
party, weather at the person‟s location, who the person is with etc. These information are
gathered by a Context Watcher in an un-obtrusive manner and distribute among the buddies.
Different user friendly applications can be built based on the relevant information gathered on
the context and its inferences.
1.1.4.4
Fixed Mobile Convergence
The convergence, happening in the telecommunication market is far reaching and all
encompassing. It spans the entire value chain and influences the components and the control of
entire network. PCCW (HK) is a classic example for this. Different services such as Premier
League, Easy Watch (home surveillance with offsite control; tilting and zooming), Snapp (similar
to Flicker UGC; a photo and video share service ) and Moov (music download) are accessible
across different networks such as Internet, TV, Mobile and Fixed line and across different
devices. These services are enabled by IMS Core Network, common to all the access platforms
like Fixed, IPTV, Mobile and Broadband.
Different convergence scenarios exist in telcos, Ex: Device Convergence, Service
Convergence, back end platforms such as Billing, O & M Convergence, Network and
Infrastructure Convergence and Sales and Marketing Convergence. Convergence can be
realized at Network, device and service level. The emergence of new standards and innovative
technologies such as IMS and SDP offer luring propositions to provide convergent multimedia
solutions, new services that can be monetized. Normally video telephony applications would be
dropped whenever the boundary of the access network is crossed. (Say from 2G/3G to 4G LTE
or WiFi to 3G) and you need to reinitiate and re authenticate or login again. But using IMS (R8
version of 3GPP), networks can provide voice call continuity (VCC) across different networks by
allowing seamless authentication.
Ex: LTE/HSPA to CDMA, 2G/3G circuit switch to LTE or CDMA 2000
Session continuity from Wifi to 2G/3G/4G is ensured by designing multimode handsets.
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Though IMS is seen as a unifying platform for converging applications, the practical realization
of IMS architecture in a telecom service provider network must have a clear strategy for service
integration. Generally IMS need to conform to a SOA model to ensure service convergence
across different access networks. Due to following reasons we need to maintain multiple
network;
1) NGN / IP networks should co-exist with legacy 2G/3G circuit switch and PSTN networks, at least for
another 10-15 years due to the investments already committed by Telco operators.
2) Migration of customers overnight is impossible as it is difficult to replace end user devices at once.
Therefore gradual migration of the subscriber base to IP based architecture is the natural
progression.
Therefore service convergence across different platforms has many justifiable business
reasons. In the converged SDP approach for SOA, shares ancillary resources or critical back
office functions such as Billing / charging, Order Entry (provisioning), QoS/SLA in addition to
enablers such as location with multiple access networks such as 2G/3G, PSTN and LTE.
These common elements or resources are re utilized in a convergence scenario rather than
replicated as done in silo architecture where the similar services such as customer registration,
authentication, billing is done when ever a new service is launched.
1.1.4.5 Billing & Customer Care
Google and other Internet companies do not have the experience to deal with „real‟ customers
demanding QoS, customer care and billing. Telecom companies run these services in 24/7 hrs
“on the ground” & “on-site”. They have the experience of running call centers well integrated
with OSS/BSS to respond to customers‟ queries.
Telecoms need to run Service Delivery Platform (SDP) well integrated with OSS/BSS for service
creation, provisioning, deployment and control. SDP implementation support the principle of
Service Oriented Architecture (SOA) where common service elements such as billing,
provisioning are reutilized. Due to the availability of SOA in Next Generation Networks,
customer can have a single sign on i.e. register once for a service and use it for subsequent
registration for different services.
Telco customer care backed by personal “on the ground” provide service with a human touch
and strongly supported by systems such as SDP, OSS/BSS (Ex: Billing) and SOA. This kind of
service cannot easily be matched by Google‟s virtual world.
2.0
Mega Trends
2.1
Introduction
Understanding the trends that affect business overtime is necessary to formulate
business strategies and designing new business models for a company or industry. This
section identifies how major trends set a foundation to the Telco 2.0. Studying the
impact of these trends on the telecommunication industry is helpful in visualizing the
impact on a telecom company (a Quad play or a Triple play)
In order to understand the Mega trends in telecommunication world, it is important to
look at the Web 2.0 characteristics closely as the next wave of telecommunication
,Telco 2.0 and Mobile 2.0 is the natural extension of Web 2.0 domain. Currently there
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are tentative moves towards Telco 2.0 in spite of many complex issues (related to
technology standardization, regulatory issues, economic issues linked to the business
model, ROI, monetization, etc.,) encountered by Telecommunication operators.
However Network operators including Telcos, cable operators and others who run major
networks are at cross roads.
Telecommunication operators cannot ignore the developments of Web 2.0 as explosive
growth of data through internet mostly attributable to Web 2.0. Increasing adoption and
stickiness of customers to Web 2.0 applications such as Social Networking, UGC, P2P
bring profound changes not only in the telecommunication landscape but also in the
social landscape attracting billions of users disturbing the central role played by the
operators in the value chain. Ever increasing use of telecommunication infrastructure for
internet Web 2.0 applications such as Google, U-Tube, Face Book consume scarce
bandwidth or communication pipe of operators.
According to a research done by Analysis Mason, the growth in Mobile data in 3G
arena register a relatively modest growth of revenue. This will also result in a significant
decline in revenue per megabyte from 2008 to 2015. If the status quo is maintained, the
cost of maintaining the existing network will soon begin to erode operator‟s profit
margins and will eventually outstrip revenue. This phenomenon can mainly be attributed
to the flat rate pricing of data adopted by almost all the operators worldwide.
In order to boost the revenue and shift the revenue curve upward, it is necessary to
embrace trends in the Web 2.0 and adapt Web 2.0 to suit the telecommunication
industry while taking measures to reduce operational cost.
Anticipated Mega Trends in the Telecommunication Industry – influenced by Web 2.0
phenomenon.
(a) Adoption of all IP network architecture and Web 2.0 to Telco 2.0 transformation.
(b) Customer empowerment and co-creation
(c) Nano segmentation and data centric business model – Mass customization to Mass
personalization
rd
(d) Co habitation, Long Tail Services and 3 party content and application provisioning.
3.0
Building a Generic Business Model
3.1
Envisioning the Future
This section presents some hypothetical use case scenarios that a planner might
develop to visualize or envision the future. The three use cases in this section were
developed by using a known marketing description format called “A day in a life”
scenarios. In this format, a real life scenario is envisioned to describe how Next
Generation Services would be used by a targeted market segment. Three market
segments were created to represent „a day in a life” of an Urban Millennial, a Rural
Millennial and a Young Working Mother. Different vignettes (or scenarios) describe how
next generation Telco 2.0 services (similar to Web 2.0) are adopted to enrich peoples‟
quality of life. Ideation process for the development of a business model or for the
formulation of strategies or for product development begins here.
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In addition to the above, these vignettes clearly show following.


How next generation Telco 2.0 services empowers the user to communicate with whoever
they want, whenever they want, personalizing the services they want using any network
device on any network they or their community are using.
How Telco 2.0 provide host of applications that match the needs of a subscriber,
encompassing all aspects of his/her day-to-day life.
These vignettes can also be used to identify forces producing change or driving trends
influenced by the cultural revolution of Web 2.0 and other socio-economic demands.
3.1.1
Case Study 1 – The day of an Urban Youth – Her 22nd Birthday





Her name is Lillian
nd
A Millennial or Y Generation kid celebrating her 22 birthday.
She completed her college last year and working for a blue chip company
in Sri Lanka as an Executive
As she had access to mobile, PC, internet from her small days she grasps
the technology fast from the user point of view.
She is a multi tasker, adore group activities and need to move up the corporate ladder fast.
Case Study 1
Time 0930 AM , Lillian @ work

At work she configured the address book. “My Campus Group “ , “ My Office Group“, Professional Groups were
put “online”. Home Group was put off line.

Started a video conference call with a Business Partner
IMS Enabler - Presence , XDMS . Network Address Book is a linchpin service.
At 1200 PM Rushing to the B’day Party - Inter Technology and Inter Device Mobility

Lillian can not wait in the office as she has to rush to the “ Union Grill “ to arrange B‟day lunch .She continued the
video conference while traveling in a Taxi. Her Video Conference on xDSL connectivity @ office seamlessly
transferred to Mobile HSPA or LTE while on the move thanks to IMS availability on her phone .

Before leaving office she sent IM to two groups from her PC asking whether any one available for lunch @ Union
Grill . The Groups are “ My College Group “ , “ My Office Group “ which were created using her mobile . ( Due to
IMS enabler XDMS it appears in the PC as it is )
xDSL to LTE and use of IMS’s VCC ( 3GPP’s R8 )
IMS Enabler : XDMS ( list management ) , IP Centrex ,
convergence
@ 1230 PM reaching the party


Video Conferencing , IM , Fixed / Mobile
Lillian activated PoC and connected all her friends in the “ My College Group “ and “ My Office Group “ and
asked where they are .
Few friends who are unfamiliar the area circling around “ Union Grill “ and lost their way . They asked the
directions from Lillian. Luckily “Where am I “ application was subscribed by Lillian and some of her friends . Lillian
invoked her application on the handset and instructed the application to the calling friends even without losing
the PoC call connectivity. Union Grill was shown in the map received by friends .
Blending of Non Real Time Web based application “Where am I” with Real Time IMS / SIP application
IMS Enablers : Location , PoC , Push to share , XDMS
0100PM @ Union Grill . Party at full swing

Lillian received a call from Bob. He felt the excitement and asked to Video Share to share the joy. She
immediately opened the Video Share during the voice call and showed the scenes of lively party, singing and
laughter. After the video sharing session , normal voice call continued .( Bob had his conversation using a WiFi /
HSPA / LTE modem connected to laptop )

Bob invited her to join with him for an interactive game in the evening along with her friends in the “ Crazy Game
Groups “ as they provide fun through PoC , IM , Video share.
Blending of IMS applications such as VoIP and Video Share in a single session
IMS Enabler : Video Share
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



0630 PM @ Home
Lillian‟s friends of “Crazy games Group “(CGG) gathered at different places. Lillian and few friends sat near the
TV set , some near a PC and some who were traveling switch on their smart phone , laptop or mobile consoles
Those who are traveling used HSPA and those who are in their abodes use Wi Fi to connect IPTV or PC .
Using the IMS Presence, members of CGG were invited. Few accepted and entered the game.
They selected a multiplayer gaming application from a list of games they have previously subscribed and
downloaded. All use PoC , SMS and IM while play the game . They received call and message notifications
thanks IPTV – IMS combination.
They also shared video clips of Sri Lanka Vs Pakistan cricket match while the game is on as a “ Picture – in –
Picture “
Device Convergence and Blending of IMS and Web Based applications in a single session
IMS Enabler : Presence , Gaming , PoC , Video Share , IM , Device convergence and IPTV / Mobile / Fixed
/ Internet Convergence
3.1.2
Case Study 2 – The day of a Rural Youth in a farm



His name is Sarath
rd
A 23 year old 3 generation farmer doing diversified agriculture multi
cropping in the Mahaweli River basin in Sri Lanka.
Acquired computer skills in the school.
This case study captures “A day in a life” of a Rural Youth in a farm.
Case Study 2
Time 0930am, Sarath Starts the day

Sarath opened the address book and checked the presence of the friends in the Tomato Growers Group. (TGG)

Connected the available members for the conference call and discuss the issue of the pest attack

In order to save cost they shifted to IM/Chat mode after nearly 10 minutes on the voice call.
Sarath opened the “photo share” during the chat session and shared close up MMS photos of the pest attacked
plants and leaves among the TGG. A knowledgeable person in the group who knew the disease advised the
members of the group and recommended precautionary steps and chemicals to be sprayed

The Scientist who is chatting on his office PC seamlessly got connected to “TGG‟ and shared the MMS pictures
and each members views.

Scientist shared a case study about the disease with TGG. He sent this while the chat session continued
uninterruptedly
Blending of services – “ photo share”, “file share” web based application with IM , IMS based service
Time 1.30pm, Sarath started Electronic Trading for the produce while having a working lunch with his
friends. 
Today Sarath visited the Village Community Center to Access high speed internet over WiMax
(Most of the time he prefers to use HSPA at the convenience of home. But today village youth celebrate
Traditional April New Year at the Community Center) . CC is the meeting place of the youth.

Sarath wanted to trade a 300 Kgs of Onions at a price of Rs 40/Kg on the e-trading platform. Though he can use
SMS or W@P or USSD, he prefers to be with friends at the Community Center and use Wimax broadband.
Immediately he received a matching buyer and performed the M- Commerce transaction online. Use “click on
dial” to connect to the supplier
Time 3pm, Participate in an online training program conducted by Cargills Ltd on Multicropping.

Sarath and his village friends turned to the IPTV to participate in an interactive training program conducted by
Super Market chain Cargills Ltd. They do future trading with Sarath and villages.

Same course is also accessible through mobile – LTE and some of his friends who are in the Village Mart
connected via mobile.

Sarath and his friends used Mobile as a back channel to answer the Quizzes for today‟s lessons and they also
used IM to chat with the instructor at the Central Studio.

He also ordered bio fertilizer through an online M-commerce transaction through the same trading platform
3.1.3
Case Study 3 – A day in life of a Young Working Mother
Helly is a typical busy young working mother having a baby daughter and a 3 year old
son. Her husband Bob comes home only during the week end. A Nanny looks after the
children when she is at work.
Case Study 3
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1100 am in the morning at work

Helly opened the video surveillance installed at home to monitor the activities of the baby and
son. She found the baby was crying continuously in an unusual manner.

She immediately opened the Presence Enabled Address Book to find out whether any of her
friends or relative travel or stay closer to home. She sent off a quick location query and a map
around her house appears on her mobile phone spotting friends location. One of her friends
Sara was identified and called her to ask to assist the Nanny till she rush back home.
“Friends Finder” web based application (developed based on Google Map) with “click to
call” option blend or mash up with location and Presence enable Address Book
1105 am – Lillian left office and on her way to home

She contacted the family doctor who has the facility to access video surveillance at her home
(password protected) and started a 3 way conference with the Doctor, Nanny & Helly while
watching the video.
st
Dr tentatively diagnose the sickness and recommended 1 aid treatment before seeing the
patient at hospital.
Doctor – Video Surveillance on PC + Voice Conferencing (termination)
Sara + Nanny – Voice Conferencing + Video Surveillance (originator)
Helly – Voice Conferencing + Video Surveillance on Mobile (termination)
Video Streaming Application Server connected to IMS to offer convergent user experience.
Over PC+ Mobile
3 way conference call blended with Video Streaming – Enabled by IMS. Call is established
through conference AS. Conference AS acts as a bridge.

Through Video Surveillance she suddenly noticed that her 3 year old son Brian is not at home.
She quickly went to the menu screen on her phone and opened the “Child Tracker” thanks to
A-GPS, satellite positioning data available on Brian‟s 3G child handset (which is always hooked
to his pocket) Helly had his location pin pointed. As he is in the adjacent neighborhood, she
took a voice call using click to call on the map and activated video share to comfort him. She
asked Brian to wait in that position till she comes to pick him up.
“Child Tracker” is a web based application developed using network APIs (location and
voice call) released by Parlay X Gateway and Google MAP. Call is blended and enhanced by
video share of IMS
3.1.4
Key learnings from the case studies
These case studies help the reader to understand the effect of Telco 2.0 on human life. Though
the user does not understand the intricacies of the underlying technology, she/he are
empowered to access network resources from anywhere, anytime, using any device to express
him/her self, share his/her emotions and to get in touch with his/her communities 24/7. IMS /
SDP / LTE / WiMax also helps his/her to bring their communities together for group activities.
Lillian manages to bring her communities who are scattered all around the globe together to
play a video game sitting in the comfort of a sofa at home coupled with the real time capabilities
of IMS such as conference and PoC. Sarath manages to bring the “Tomato Growers Group”
together to find a solution to a pest attack. Sarath blended IM with “photo share” (a web used
application) and “file share” during the Group Session. In an emergency situation Helly the
young working mother managed to find a dear friend to save her child, by invoking and blending
“friends finder” web based application + Presence Enable Address Book + location + “click to
call” service. Different enablers act as catalysts to create powerful closely knit social groups
transcending geographic and technological barriers.
User likes to use the technology the way they want and access the services as they wish. They
decide “what to use”, when to use”, and “how to use” to face the circumstances in their active
life. They select, mix and matches IMS enablers such as Presence, Location, XDMS, PoC,
Video Share, the way that suit them. It empowers them and offer independence to access
services on their terms not the network‟s. In that sense, Telco 2.0 is a way of liberating
themselves. Lillian continued her video conference on her way to the party and this is an ideal
illustration for work-life balance. Case Study of Young Mother Helly is also a good illustration for
Page 11 of 20
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work life balance. All in all Telco 2.0 is a reflection of their life style and an enabler for work-life
balance.
IMS enablers are reusable components which can be combined with other applications for
invoking well defined functions. (E.g.: Presence, XDMS with video conference, PoC with
Gaming) These enablers act as building blocks to generate more complex services without
recreating them each and every time the user need them. As a result, the cost of implementing
end user services (CAPEX & OPEX) is considerably reduced, passing the cost benefit to the
user.
3.1.5 Causal Model for Vignettes - Impact to the society, customer/organization
and Telecom Network
The causal model introduced by Gert Tdu Preez and Carl W I Pistorius (In their joint paper
“Analyzing technological threats and opportunities in wireless data services” 2002. Published by
North Holland) has some relevance in this study as it provides a macro view of both short term
technological change and longer term driving forces causing the change while helping to
understand the technological trends that has an organizational, societal and customer impact.
Force producing change / drivers
1.
Desire to be in touch with the
communities
anywhere,
anytime using any device, 24/7
.
Trends






2.
Share Emotion from anywhere,
anytime
3.
Work Life Balance
Synchronizing the address book (for Mobile,
PC, Fixed Phone, Laptop, PDA)
Indicate the Presence or availability across
devices and networks.
Address book is managed by the network
(not by the phone or SIM)
Convergence (Fixed and Mobile, FMC)
Voice call continuity (VCC)
Inter Technology and inter mobility device,
DSL to LTE
Case Study depiction
1. Lillian configure address book in one device.
But it is available ubiquitously.
2. Lillian‟s, Sarath‟s and Helly‟s groups are
available across the platforms.
3. Lillian‟s continuity of video conference call
while travelling, even she change the device
and got connected to LTE or HSPA from DSL
4. Case Study of Young Mother Helly – 3 way
video conference blended with video
surveillance

Blending IMS applications such as VoIP,
video share

Blending web based applications with the
IMS based application
Case Study depiction
1. Lillian sent a video clip while having a call
with Bob without discontinuing the voice call.
Voice call + video clip in one session.
Example for blending voice (VoIP) with video.





Voice and Session (Video Conference) call
continuity
Inter Technology and Inter Device Mobility (x
DSL to HSPA/3G or LTE, use of IMS‟s, VCC,
capability)
Seamless authentication when crossing
different boundaries without discontinuing or
re-logging
Remote access to corporate data
Synchronize address book, blending of
Page 12 of 20
Impact / effect
Societal

Increase mobility of people

A cohesive society

Safety of children and elderly.
Telco Network

Increase usage and revenue

Loyal customer base
Customer

Addresses store securely.
Therefore address book can
easily be secured even if the
phone is lost.

Convenience & easy
contactability
Societal / Customer

Ability to be in touch with
closed ones.

Emotionally
connect
with
people even when they are not
in close proximity.
Network

Loyalty building

Stickiness

Increase voice usage
Societal

More contended customer

Happy families

Women empowerment
Networks

Stickiness of customer

Loyalty

High ARPU

Revenue increase
PTC ’11 Proceedings
services
Case Study depiction


4.
Respecting individuality and
empowerment
(“Communication tools are a
reflection of my life style. I
select them, bundle them,
blend or orchestrate them as I
wish”)
5.
Communication services help
in running people‟s livelihood,
control expenses (in transport,
labor, time), ensure safety and
security,24/7.



Lillian continued the video conference call on
her way to the party
Sarath find a potential buyer while attending
the New Year party.
Case Study of Young Mother Helly
Co-creation
Blend different services in “DIY” fashion
Case Study depiction

When Lillian and Crazy Game Group play
interactive
video
game,
she
used
conference, PoC, “picture-in-picture”

Blending of services by Sarath – “Photo
Share” a web based application with IM, an
IMS based service.

Case Study of Young Mother Helly
Customer/Organization

Higher productivity

Less labor turnover

Higher female work force
Societal

An open society
Customer

Freedom of communication

Flexibility in communication
Network

Increase of usage

High ARPU and revenue

Loyalty of customer


Societal
Ubiquity of service
Reduce trading cycle
Help in combining different service to 
improve the customer‟s livelihood

Farmers, fishermen can sell
Case Study depiction
their products easily
1. Sarath use the e-trading platform to conduct 
Just in Time (JIT)
a Trading transaction with a third party buyer 
Higher productivity
and after initiating transaction use “click on 
Secure,
healthy
and
dial” to contact the buyer – Sarath save time,
contended society
money on transport and conduct work
efficiently.
2. Case Study of Young Mother Helly
Table 1: A Causal Model for Telco 2.0. ( Developed by the researcher )
3.2
Collaboration, Transformation and Building a harmonious eco system –
4 Co Business Model for Telco 2.0; Realizing the Vision
The traditional business models mostly focused on commoditized voice,
SMS and few enterprise targeted services such as VPN. They serve an
undifferentiated market while focusing on a business model mainly
governed by tariff which will not be able to build a sustainable business
to challenge the threat posed by Web 2.0. This section makes an attempt
to bring together the views, theories models of selected top management
gurus (such as Prahalad / The New Age of Innovation, Kim/Blue Ocean
Strategy, Fung/competing in a flat world, Yankee Group/”Anywhere”) to
compose a generic composite business model for Telco 2.0. In addition
to the view points of Gurus, SWOT (1.1) and Industry Trends (2.0) were
used to synthesize and conceptualize 4-Co Business Model.
Figure 2: 4Co Business Model
(Developed by Researcher)
In this model Collaboration is the key and it helps to build a harmonious
eco system. In here, operators need to harness the collective intelligence
by enlisting broad spectrum of users, developers, partners, Web2.0 and even competitors to
collaboratively develop services. The ultimate result of adopting 4-Co model is the achievement of CoExcellence in terms of customer retention growth in ARPU, Market Share, Profitability and Valuation.
3.2.1 Co-Existence
The variables in the concept of Co-Existence are;





Healthy co-existence with the legacy networks during the transition period to all IP network to safeguard the
investments already committed.
Follow an evolutionary path and have service continuity
Service extension and enhancement, inter operability with the legacy services such as SMS, IN Services etc.,
Managing Legacy to Telco 2.0 transformation
(Network, OSS/BSS and IT Systems Focus) Page 13 of 20
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Telecommunication networks evolve towards IP based Next Generation Network
architecture to achieve simplicity and operational cost efficiency. All IP based networks
(at all the layers including Access and Transport Layer level) overcome the difficulties in
handling different standards, protocols which raised the issues in interoperability and
service provisioning/creation. Transition to all IP converge packet network from legacy
TDM based network, need to be planned properly in order to mitigate the risk of
experiencing the technology incompatibilities such as TDM to IP, SS7 signaling to IP
based signaling etc.,
Nearly 5 billion mobile customers will still be using SS7, TDM based 2G/2.5G/3G
services in spite of the Broadband/ 4G. The investments made in 2G/2.5G/3G will not
completely be substituted for 4G in the coming decade. In reality Next Generation
technologies will co-exist with the legacy network. As such it is also important to
safeguard the investments already committed for legacy networks. Step by step
introduction of IP assures interoperability (Legacy to IP) by using different GW for
protocol conversions and through the introduction of IMS session control. IMS is the de
facto standard for access agnostic Next Generation Networks.
Operators should not underestimate the role played by legacy such as voice, SMS, MMS in the
pre IMS arena. The phenomenal growth in SMS illustrates the revenue potential of SMS and it
also commands a fairly high service fee relative to its band width usage (say compared to video
streaming or sharing). “Killer Services” such as SMS, Voice IN services in the legacy domain will
remain in place. What is important in IMS is the killer way of offering services. Services such as
SMS, W@P, IN Services will be continued in IMS arena. They will not be presented in a pure
vanilla form and large proportion of new generation services are the ones that blend the new IP
services with traditional.
Mothilal, PTC’08 Proceedings, Page 13
1.
Innovative Next Generation IN (NGIN) platform and Services Broker/SDP solutions will
help in the interworking and co-existence of legacy applications with IP.
 In a Convergent Service Layer approach, IN services such as VPN of IN co-exist
with IP Centrex services of IMS (J Netx‟s, NGIN platform provides the initial
foundation for a fully blown SDP/IMS and it allows for Web + Convergent IN + IMS
Services). New IN platforms are often based on JAINSLEE. Ex: Vodafone,
Telefonica
 Service Brokering function acts as a common network abstraction layer for legacy
and IMS services. It can also mash up 3rd party applications, different Web 2.0 APIs
(Java Script, SOAP, XML, RSS Feeds) by importing publicly available APIs and
exporting network enablers or common components such as Calls, Messaging, QoS,
charging, Security, Presence, Location. These service enablers are facilitated
through a SOA/SDP architecture well integrated with OSS/BSS and IMS.
2.
IMS components such as IM-SSF, iFC and SCIM provide interworking functions and
blending of legacy services such as CAMEL/IN. IM-SSF functions and SCIM or
Enhanced SCIM sometimes incorporated into the service broker function. IMS-SSF is
specifically designed to allow IMS networks to reuse CAMEL deployed by GSM
networks‟ Prepaid or IN Systems and act as a translator; from gsm SCF (CAMEL AS) to
SIP AS of IMS.
Ex: Integrating call logging function (a SIP AS for recording of calls) with 4 digit dialing of VPN (a legacy
CAMEL IN function)
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Inter device Mobility, Inter Technology Mobility and VCC (Voice Call Continuity) enabled
by EPC of LTE (Session convergence) and IMS (Service convergence) gives true value
to Co-existence with legacy/4G. (See the episode 2 of Case Study1) Due to widespread
industry support it is advisable to follow Vo LTE based on IMS promoted by 3GPP R8
version under “one voice” for voice and voice call continuity (vcc). Under VCC re
authentication, re initiation and re login is not required when crossing the boundary,
assuring seamless connectivity.
The other dimension of Co-Existence is the transformation to Telco 2.0, leveraging the network
capabilities of the legacy and next generation networks. Telco 2.0 transformation path can take
different approaches.
(i) Initially some tier 1 operators such as Vodafone, Verizon and Sprint accommodated and
adapted services such as e bay, Google, Yahoo, My space, Face Book and U-Tube in their
portals like Vodafone‟s “Vodafone live”. These are natural extensions to mobile and replication
of Web 2.0 in mobile.. From the user point of view this is a big development as mobile can offer
immediacy, convenience and transportability.
(ii) In 2007 Singaporean mobile operators M1 and Star Hub joined hands to introduce Web 2.0 kind
of “Walled Garden” application, Me TV. It is a mobile video application, where user can upload
their videos via MMS enabled handsets. Users will be compensated when enough viewership is
racked up. This is a good example for the “Walled Garden” approach to extend web 2.0 to
mobile. “See Me TV” is a similar service launched by UK 3.
(iii) PCCW had introduced large number of “Walled Garden” Web 2.0 kind of applications across all
the access platforms and devices.
(iv) Real transformation to Telco 2.0 happens only when Telecom companies leverage following
capabilities of the network and blend or orchestrate Web 2.0 applications such as Face Book,
Google with network features.
-
Service enablers such as locations and presence
Data Centricity such as user profile (elaborated in 1.1.4.2)
Context Awareness (elaborated in 1.1.4.3)
Legacy capabilities such as IN, SMSC (for SMS) and MMSC (for MMS)
The 4th (iv) approach can differentiate Telco 2.0 services from Web 2.0 and provide a
competitive advantage for the telecom operators.
(i)-(iii) are good precursors to Telco 2.0 as they make the networks and consumers ready for
Telco 2.0 by building a Critical Mass of users with minimum investment. The critical mass of
users on “mobile replicated Web 2.0” will become early adopters of Telco 2.0 and help in
monetizing investment for IP network. This gradual transition to Telco 2.0 through (i), (ii), (iii) is a
“shock resistance” less riskier approach.
3.2.2 Co-Creation
The variables in the concept of Co-Creation are;
 End user involvement in creating blended services (as a Tech savvy user using light weight tools or as
a creative „DIY” user creating services on the fly)
 Internal or external professional developers who leverage network features / capabilities and user
profiles and create services intuitively. Degree of user participation in testing (ß testing) and idea
creation is high.
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Telco 2.0 is known as the paradigm or industry model where Telecom companies try
and get benefits from sources that are not their own. The business model of Telco 2.0 is
built on users and 3rd party providers. Users evolve from simple consumers to
prosumers (producers + consumers). Prosumers create services on their own to
improve their life style. They can create services on the fly in “Do it Yourself” fashion.
(Ex: As in the Case Study 1, Lillian initiated push to talk over Cellular (PoC) voice
application with different social groups and combine Google map/location based “Where
am I” application without discontinuing the PoC call). Ordinary Tech savvy users can
use Web 2.0 tools and techniques to design their own browser based applications by
pulling together (mashing ups) sources of data from anywhere in the web. (Ex: A bird
enthusiast can pull data (say availability of birds in different areas) and Google Map to
publish the bird‟s presence on to the map to give a pictorial view) This is similar to the
orchestrating of different tunes to compose world class music. C K Prahalad‟s book
titled “the new age of innovation” examines the personalize experience of consumer in
firms covering different companies and industries. He introduces the concept of “cocreation” which focus primarily on the centrality of the individual.
In the technical arena, for “DIY” co-creation, networks use different elements of IMS
platform (S-CSCF, SCIM) to create a blended multimedia session (As Lillian‟s Case
Study; PoC + “Where am I” Google Map). For blended applications creation (as similar
to the composing of world class music by orchestrating different tunes) based on
SOAP/REST/XML technology which are different APIs exposed by the network via a
SDP or service broker, mash up with APIs exposed by 3 rd parties (Web 2.0 providers).
As illustrated in section 1.1.4.2 network related APIs are linked to enablers like
Presence / Location, Data like Customer Profile / Customer preference, contextual
reasoning, SMSC/MMSC/IN data. These developments can be done by tech savvy user
or a professional developer. From end user perspective, service creation or co-creation
process must be intuitive and self explaining: limited software development skills are
required to develop a new service. The good illustration for this is the WIMS (mash up
development of Web 2.0 and IMS) initiative of Telefonica. Example: Locating Face Book
friends in a Google Map using IMS/Location blended with “click to call” facility. As CoCreation focus on building, emotional/ life style oriented applications in contrast to the
total reliance on price oriented functional (Voice + SMS) appeal, it can be considered as
a “Blue Ocean” Strategy.
3.2.3 Co-Opinionate
The variables in the concept of Co-Opinionate are;
 Using “Actualized Anywhere” or “Alpha” customers to influence other segments, nano segments. Help
them to act as opinion-makers /influencers. Make ”Actualized Anywhere” the company‟s brand
ambassadors or product evangelists. Brand is related to user experience
 They create “word – of – mouth” viral marketing through blogs and social network sites.
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As explained in Section 1.1.4.2, Telecom operators can process vast amount of data
related to their customers‟ profiles, their preferences, usage patterns, communication
and relationship patterns and preferences, device capabilities, behavioral patterns, work
place/home/mobility etc., From these data, wealth of information can be gleaned and it
has immense potential value to identify a unique market segment that can influence
nano segments. Decline in ARPU, high OPEX and high investment/depreciation cost
encourage telecom operators to find new markets for the services they offer. The time is
ripe to look at new business models and new market segments. By taking the
advantage of data centricity, context awareness, technical capabilities such as SDP,
SOA, Next Generation OSS/BSS and by leveraging them, Telcos can create different
packages and business solutions to nano segments and individuals to suit their life
style. As consumers become “prosumers”, they themselves can co-create services to fit
their life style requirements.
Though Next Generation Telcos tailor make solutions to individuals by personalization,
the dominant demographic group that is more susceptible to Next Generation services
are the Millennial or Generation Y. According to the classification of Yankee Group, the
“Actualized Anywhere” (AA) segment which has some characteristics of Millennial can
act as influencers, trend setters to other micro segments. AAs are the hubs in the social
networks and their characteristics are similar to “Alfa” customers and extend beyond the
characteristics of Millennial / Y Generation or Net Gens (Net Gens were used by Don
Tapscott in the book “Grown up digital”) and they act as brand/product evangelists. The
other members of the social network gravitate around these hubs / “AAs”.
Characteristics of “AAs” are;





Ubiquitously connect at home & outside
Early adopters
Trailblazer for all segments; wielding high influence over other segments
High household income
Between age 18-44 years
AAs turn to “word of mouth” viral marketing through blogs, and social network sites to
propagate Telco 2.0 services. Co-Opinionate is a “Blue Ocean” strategy as it look
across buyer groups to focus on AAs, challenging conventional wisdom. Analogy:
Doctors act as influencers in Pharmaceutical industry.
3.2.4 Co-Habitation
The variables in the concept of Co-Habitation are;
 The strategic partnership made between 3 party content and application providers to provide “long
rd
tail” services. “Upstream” 3 parties work together as teammates or collaborate for mutual
development by sharing data / information, exposing network and IT capabilities, opening up their
domains (through APIs) by trusting each other and by jointly improving their systems and processes.
 Opposite of “Walled Garden”
rd
Web 2.0 companies and Hand Set manufactures are actively collaborating with 3rd
parties to create “mushroom applications” by combining Web 2.0 and 3rd party
developer capabilities and mashing up standardized APIs.
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PTC ’11 Proceedings
Examples:
rd
1. Skype‟s success is attributed to its enrichment of experience by opening to 3 parties, which
created voice and non voice application around its core service. White boarding application,
rd
Lie detector and voice to text feature are some enhancements to Skype through 3 parties.
2. Google map open up to mash up application such as “friend finder”, “Where Am I” (See the
episode 5 in the Case Study 1 and Episode 1 in Case Study 3)
rd
3. Apple creates 1000s of services to create an Apps Store opening up its APIs to 3 parties.
Web 2.0 experience need to be extended to Telecom in order to enrich user experience
further. In the case of Apple, Apps Store drives the demand of hardware. Developers of
applications get access to large number of potential users and shared revenue while the
users get many options. In Web 2.0 and App Store case, developers had built a good
relationship with the host as APIs are spelt out clearly in an unambiguous manner. In
order to build a good relationship with 3rd party developers for content and applications,
operators should clearly identify the resource (APIs) that need to be exposed. (Ex:
Billing, QoS Guarantee, Security, Subscriber profile, Authentication, Authorization etc,)
They also need to finalize a good business model such as revenue share. In Telecom
environment sometimes APIs are cumbersome compared to Web 2.0. This could be a
deterrent. Partnering and co habitation with 3 rd party developers and facilitate their entry
to the network are a critical success factor for operators. Operators should not
relinquish complete control and they can use systems such as SDP, well integrated with
NGOSS as a means of establishing partnerships with OTT and 3rd party service
providers.
Telecommunication industry can learn a lot from collaborative efforts of Skype &
Amazon. Collaborative RCS initiative of SK, KT, and LG (Korea) to have a inter
operable Instant Messaging System is a classic example for the co-habitation with
competitors.
Co-Habitation can be considered as another “Blue Ocean” strategy as it look across
alternative industries to provide enhanced Web 2.0 like services. This is also a
diversification strategy as it embraces new businesses such as M-banking, Music and
Education through 3rd party alliances.
4.0
Conclusion
The business model helps in building a harmonious telecom eco system in 4G arena to
overcome the threats posed by Web 2.0 and achieve Co-Excellence in terms of
customer retention, growth in Market Share, ARPU, Profitability and Valuation. The
operators should follow a step by step approach to transform the companies from
legacy to Telco 2.0. They also need to corporate with tech savvy users for Co-Creation,
target “AAs” and hubs in the social networks as influencers /opinion makers/Evangelists
and to forge alliances or Cohabitate with 3rd party developers, competitors and
national/global alliances such as One API and WAC (Wholesale Application
Community) of 3GPP/GSMA to create diversified long tail services.
The Web 2.0 service creation framework, with its ease of use, low cost and
collaborative nature, threats the telcos‟ “Walled Garden”, inward looking, self centered
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PTC ’11 Proceedings
strategy of creating new services and content. Rather than competing against Web 2.0,
Telcos need to embrace their service creation framework and practice high tolerance for
3rd party development. Telcos can leverage their strengths (QoS, Data Centricity,
Context Awareness, convergence, Billing & Customer Care) to have a competitive
advantage. Nurturing such an eco system will allow Telcos to achieve Co-Excellence
and Telco 2.0 status while developing new innovative services connecting life 24/7.
Strategies of the 4-Co Model need to be further decomposed to suit different markets
such as Emerging, Transformation and “Anywhere” (Yankee Group Classification for
4G/Broadband markets) and Tier 1, Tier 2, Tier 3 categorized according to incumbency,
green field, size and diversity.
Co-Strategy
Co-Existence
Up stream or
Down stream
customer focus
Down stream
Blue Ocean Strategy
-
Risk
Low risk due to smooth
transition
to
Next
Generation
Results




Co-Creation
Upstream & Down
stream
Co-Opinionate
Down stream
Co-Habitation
Up stream
Yes.
Looking
across
functional - emotional appeal
to have emotional, life style
orientation
Yes. Looking across buyer
groups to focus on “AA”
segment as evangelists.
Yes.
Looking
across
alternative
Industry
to
diversify in to Banks, Music,
Education etc
Medium Risk



Low Risk

High Risk. Need to have a
control through NGOSS




Lower OPEX
High
capacity
utilization
High ROI
Customer
retention
Increase usage
High revenue
Customer
retention
Increase market
share
High revenue
Lower
CAPEX
(due to 3rd party
alliance)
Higher EBITDA
Higher profitability
Table 2: Outcome of 4 Co Strategies for Transformation and Collaboration
5.0
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List of References
Victor K Fung, William K Fung, Jerry Wind, Competing in a Flat World (Pearsons
Education Inc, 2008)
Emily Nagle Green, Anywhere, How Global Connectivity is revolutionizing the way we do business (Yankee Group
Research, Inc, 2010)
Don Tapscott, Anthony D Williams, Wikinomics (Pengain Books Limited, 2008)
W Chan Kim, Renee Mauborgne, Blue Ocean Strategy (Harvard Business School
Publishing Corporation, 2005)
C K Prahalad, M S Krishnan, The New age of Innovation (McGraw Hill, 2008)
Don Tapscott, Grown Up Digital (McGraw Hill, 2009)
Chris Anderson, The Long Tail (Random House Business Books, 2007)
Anita Roser, e-learning 2.0 (Amacom, 2009)
Andrew McAfee, enterprise 2.0 (Harvard Business Press, 2009)
White Paper – Working with Third Party Services, Gratian Finnie, Heavy Reading, May 2009)
TM Forum Insight Report, Evolving Service Delivery Platform, Hristofer Kimbler, 2009)
Robert A Burgelman, Clayton M Christensen, Stevan C Wheelwright, Strategic Management (McGraw Hill 2004)
Stevan Shepard – IMM Crash Course (McGraw Hill, 2006)
Chetan Sharma, Joe Herzog, Victor Melfi – Mobile Advertising – (John Wiley & Sons, 2008)
Gonzalo Camarillo, Miguel A Garica Martin, The 3G IP Multimedia Subsystems (England, John Wiley & Sons Ltd, 2006)
Juliet Bates, Chris Gallon, Matthew Bacci, Steuart Walker, Tom Jaylor Converged Multimedia Networks (England, John
Wiley Sons Ltd, 2006)
Chris Anderson, the Long Tail (UK, Random House Business Books, 2007)
Telco 2.0, www.detacon.com, 2/2007
Comprehensive Service Delivery Platform, wireless World, August 2007
Come Together, Web 2.0, Charged Sep/Oct 2007
Dan Dearing, The Dark Side of IMS, IMS Magazine April 2006
IMS, SDP revolutionize OSS, www.lightreading.com 25th Aug 2006
Richard Grigonis, IMS – The Current State of the Market, IMS Magazine, April 2007
Daphna Steinmetz, IMS Shows us the Money, IMS Magazine Feb 2007
OSS / BSS reference architecture and its implementation scenario, White Paper, Nokia / Tieto Enator
Page 19 of 20
PTC ’11 Proceedings
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6.0
3GPP
AAA
AMC
API
ARPU
ASP
BSS
CAPEX
CDMA
CRM
CS
CSP
DBN
DIY
DSL
DTL
DTP
DVB
DVB-H
DVB-S
DVB-T
EBITDA
ETSI
FMC
FOC
FTTH
GPS
HSPA
HTML
iFC
IM
IMS
IM-SSF
IN
IP
IPLC
IPTV
LBS
LTE
MMS
MMSC
MPLS
Andy Johnson, Jan Gabriesson, VIF Olsson, Evolution of Service Delivery Platform, Ericsson Review Nov 2007
Svetlana Issaerea, Pyramid Research, Walled Garden and Open Models, www.pyramidresearch.com, Aug 2006
Phil May, Application Services in an IMS networks, www.dataconnection.com
Numo Silva, Macro Monteiro, Sancho Rego, Service Delivery Platforms, Eurescom Project, 2006
Brian Skiba, convergence: Beyond Talk, White Paper, May 2006
Philip Kotler, Marketing 3 (John Wiley & Sons, 2010)
Glossary
3rd Generation Partnership Project
Authentication, Authorization, Accounting
Annual Maintenance Cost
Application Programming Interface
Average Revenue Per User
Application Service Provider
Business Support System
Capital Expenditure
Code Division Multiple Access
Customer Relationship Management. A
business software that is used to manage
customers.
Circuit Switch
Communication Service Providers
Dialog Broadband Network
Do it Yourself
Digital Subscriber Line
Dialog Telekom Limited
Dialog Telekom PLC
Digital Video Broad banding Casting
Digital Video Broad banding Casting for
Mobile Handsets
Digital Video Broad banding Casting for over
satellite
Digital Video Broad banding Casting for over
terrestrial
Earnings before Interest, Tax, Depreciation,
Amortization
European Telecommunication Standards
Institute
Fixed Mobile Convergence
Free of Cost
Fiber to Home
Global Positioning System
High Speed Packet Access - Extension of 3G
Mobile Technology
Hypertext Markup Language - Markup
language that most of the web pages are
currently being developed in
initial Filter Criteria
Instant Messaging like chat
Internal Multimedia System - Next Generation
Technology used for session control on STP
IP Multimedia Service Switching Function
Intelligence Network
Internet Protocol
International Public Line Circuit
TV over Internet Protocol
Location Based Services
Long Term Evolution. 4G Technology
Multimedia Message Service
Multimedia Message Centre
Multi Protocol Label Switching
NGN
O&M
OMA
OPEX
OS
OSA
OSS
OTT
P2P
PC
Next Generation Network
Operation and Maintenance
Open Mobile Alliance
Operational Expenditure
Operating System
Open Services Access
Operating Support System
Over the Top
Peer to Peer
Personal Computer
PCRF
P-CSC F
PoC
PRBT
PS
PSTN
PTC
QoS
ROI
Policy and Charging Rules Function
Proxy Call Session Control Function
Push to talk over cellular
Personal Ring Back Tone
Packet Switch
Public Switched Telephone Network
Pacific Telecommunication Council
Quality of Service
Return on Investment
RCS
RSS
SCIM
Rich Communication Suite
Rich Site Summery - Broadcast tool or digital feed,
that is used to send digital content over internet
Service Capability Interaction Manager
S-CSC F
Serving Proxy Call Session Control Function
SDP
Service Delivery Platform
SIP
SLA
SLT
SMS
SMSC
Session Initiation Protocol
Service Level Agreement
Sri Lanka Telecom
Short Message Service
Short Message Service Centre
SOA
Service Oriented Architecture
SS
SS7
TDM
Special Study Report
Signaling System Number 7. A signaling Protocol
Time Division Multiples
UGC
UGC
VAS
VoD
VoIP
VPN
WLAN
WWW
XDMS
XML
User Generated Content
User Generated Content
Value Added Services
Video On Demand
Voice over IP
Virtual Private Network
Wireless Local Area Network
World Wide Web
XML Document Management Service
Extensible Mark up Language - General purpose
mark up language where data can be embedded.
Users can define their own tags.
Page 20 of 20