IT Systems. Telecom Vendors. Consumer Electronics. Vendors. IT vendors. Wireline Networks .... DataPro Group Case Study: Remote Call Center. May 30 2009.
Convergence in Next Generation Wireless Networks Jaydip Sen Tata Consultancy Services Ltd. Innovation Lab, Kolkata, India
Agenda • What is convergence? • Complexities involved • Fundamental drivers • Different approaches to achieve convergence • Case studies
GISFI Workshop, Pune
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What is Convergence? COMMUNICATIONS
ENTERTAINMENT
TELCOS
INFORMATION MANAGEMENT
TELECOM VENDORS
MEDIA
The creation of a new value chain, new business models, new market structure, new business entities, new competitors… and new opportunities.
PUBLIC FIXED
PUBLIC WIRELESS
IT CONSUMER VENDORS ELECTRONICS
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IT SYSTEMS
ENTERPRISE NETWORKS
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Convergence is Complex Communications Mobile Wireless Networks
Entertainment
Fixed Wireless Networks
Information
Telcos
Wireline Networks
IT vendors
Consumer Electronics Vendors
Media
IT Systems Telecom Vendors
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It’s More Complex than that! Charging & Billing End-user
Devices
Services
Media/ Content
Service Providers
Networks/ Technologies
System Integration Consumers Households Youth Professionals Seniors etc Business SME Corporates Homes Automobiles
Fixed phone Mobile Phone Desktop PC Laptop PDA Smartphone Personal Gateway Camera MP3 player Games console
News Voice Pure fixed CNN Email BT News Corp Pure mobile IM Images & Video SMS/Text Vodafone Time Warner MVNOs, MMS Sony Games Virgin Disney Video conf Tesco Video streaming Music Tele2 EMI eCommerce Fixed/Mobile Sony Browsing Verizon Apple i-Tunes Enterprise apps Orange Tracking Telemetry Push-to-Talk
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Fixed voice PSTN Cellular GSM/GPRS/WCDMA/HSDPA CDMA/1x/EVDO Fixed Wireless 802.11 802.16 802.20 Smart antennas Software defined radio Soft switches Bluetooth/UWB DAB, DVB-H/T Compression…
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Convergence • The term is used to describe carriage of more than one type of ‘traffic’ across a network. The traffic can be voice, data, video or multimedia. • Although not a new concept, convergence is now commonly based on the Internet Protocol (IP) network technology. • Over recent years, IP convergence technology has been expanded to encompass a large number of practical business applications that save time, money and streamline the ways businesses communicate within and outside their organizations. • Voice, data, video and enhanced collaboration and management capabilities are converging on the desktop and via various mobile communication devices.
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Convergence at the Heart of Future Telecommunication
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Fundamental Drivers of Convergence •
Moore’s Law:
•
Metcalfe’s Law:
•
Value of a network increases geometrically as the network end-points increase
Reed’s Law:
Doubling of processing power in every 18 months with cost remaining same.
The utility of large networks, particularly social networks, can scale exponentially with the size of the network.
Market Law:
As competition increases, industry players with appropriate scale will innovate and drive consumer costs down.
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Breaking the Shackles of PSTN
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Industry Trends
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Industry Trends Voice will remain the killer application
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Industry Trend The growth in mobile will continue
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Industry Trend • Move to a single IP platform
This scenario, will lead to ‘Evernet’ – a world comprising Pervasive computing Ambient intelligence Anytime, anywhere computing Things that talk
• Internet Protocol (IP) will be the standard platform for all communications, especially voice
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May 30 2009
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Convergence is a Reality • Device Convergence:
Camera phones, Blackberries and other smart phones
• Infrastructure Convergence:
Line blurring between mobile and fixed networks
Retail outlets are selling ever more accessories and “content” services vs. “price plans”
• Usage / Application Convergence:
Mobile minutes of use (MOUs) overtaking fixed, ringtones and music content downloaded in mobile devices; Internet taking share from traditional media; gaming moving on-line
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Device Convergence Wireless devices incorporating many new functions…
Camera phone example US shipments, millions
• Camera phone shipments grew over 200% vs. digital camera at 36% •57% of consumers would prefer to take a camera phone over digital camera
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Industry Trend The growth in mobile will continue
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Convergence Requires a Different Approach Type of Convergence
Device
Function
From
Product Development
Internally developing voice price plans
Partnering with device, content, application, and infrastructure partners to develop unique apps
Networks
Managing 2 and 2.5G networks
Launching next generation 3G and beyond networks with high-speed data capabilities
Sales & Distribution
Activating and servicing voice products
Selling new services and products that create repeated customers
Marketing
Marketing voice
Marketing voice, music, software applications, games etc.
Infrastructure
Application
To
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Current Status
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Current Status •
A fragmented world of services and devices:
Multiple networks
Multiple devices
Multiple bills
Multiple service contracts
•
Limited choice for the customers
•
Monopolistic pricing
•
The suppliers decide what the customers need
•
Legacy business practices
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Future Trends •
A connected world of services and devices:
Access via single device
Utilize the best network available
Single customer experience
Consumer chooses device
Competitive pricing
•
The customer rules
•
The customers drive the design of products / applications
•
Enhanced business practices
•
The rise of hybrid, alternative telecom operator
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Case Studies
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21 21C C – A Platform for Mobility and Convergence
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Future Strategy
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Case Study: The Converged Telco
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DataPro Group’s Convergence Proposition
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Convergence Translates into Better Products at Low Prices
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DataPro Group Case Study: Remote Call Center
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Case Study : American Idol Delivers on Convergence Imperatives •
Deliver Distinctive Value to the customer See your vote count- only available on mobile phone Interactive TV experience Uniquely targeted at specific segment
Create a Defendable Differentiation Exclusive relationship with American Idol to provide SMS voting and other contents Text messages only for Cingular’s 50 million customers Linked to marketing campaigns
•
Compelling, easy-to-use products Easy-to-dial number SMS-based menu very easy to select and use Intuitive for new adopters
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Summary • Shift to IP-based networks that allows delivery of cheaper voice services will be the next driver in telecommunications growth • The telecom operators who can offer converged, hybrid solutions will win • Customers who can integrate infrastructure, application and the right devices will have a competitive advantage • Customers define the rules, not the suppliers • The monetization of a converged solution depends on delivering value added, easy to use differentiated products • An integrated, converged future awaits….
GISFI Workshop, Pune
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