Digital Value Chain

8/9/2019 Digital Value Chain

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Digital Value Chain

James McEachernManager Application Enabler Standards Nortel Networks


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Todays Business Challenges Hyper Competitive Environment

All out battle for the digital home New competitors are being enabled

by ubiquitous broadband access MSOs aggressively adding voice Telcos responding with video

Over-the-top providers are a newthreat.

Google Voice, Skype, Vonage Traditional SPs are left out of the

over-the-top business model High risk of being relegated to just

pipes

SPs need new services strategies todifferentiate and compete

TraditionalCompetitors

Over-the-TopProviders

TraditionalTelecom SP

Getting squeezed


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Service Bundles

> Industry dynamics are driving service providers to create newpackages; consumers will continue to adopt bundles.

However,

> Bundling is losing its effectiveness as consumers move from

bundle to bundle in search of savings.So> The integration of voice, video, and broadband applications

delivered over a wireless or wireline network becomes the nextimportant strategy.

Consumersthat do not

subscribe to a

bundle are asunlikely tochurn as those

in a bundle

0%10%20%30%40%50%

60%70%80%

T o

t a l U

. S . H

o u s e h o

l d s

( % )

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

BundledHouseholdsQuad Play

Triple Play

Source: IDC


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Advertising is not the only answer

Advertising can augment a model for carriers, not be the model

Realities in the new Communications world

20082012

Telecom Services

Fixed + Mobile

Global Ad

Revenue

Interactive

Ad Revenue

$2 Trillion

$1 Trillion

$500 Billion

Sources: - Global Telecom Market Status and Forecasts: Hot Telecom- The Kelsey Group


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Mobile Video

TVMobile Phone

Voice

Fixed Phone

Unified Experience

Service Silos Service Convergence

Identity enabled converged services with a commonuser experience that converges communications across

devices inside and outside the digital home

Service Convergence

PC

Home PC


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Increasing sales

service providers

carrier

consumer

carriers sell to consumers

Diminishing sales

The single-sided model


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carriers sell to consumers and service providers

Increasing sales opportunity

Increasing sales

service providers

carrier

consumer

Diminishing sales

the double-sided model:


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Core customer dataName, Address,

Gender, National ID,Profile & Preferences

MY PERSONAL DATA

Knowledge of personal

and business interactionsMy bank, school,

workplace, friends,address book

MY RELATIONSHIPS

Naming and trackingnon-human resources

.mobi domains, webbrowsing history,QR codes read

MY INTERACTIONS

User ID linked to physicaldevice or token;

configurationSIM, USIM, SoftSIM, serialnumber, profile & settings

MY DEVICES

Identity and personacreation for user

Number, address or IDprovisioning; porting; avatars

MY IDENTIFIERS

Digital LifestyleAggregators & PIM

Pictures, Videos, Bookmarks,History, Files ; Calendar,

Address Book, To Do, Notes

MY DATA

User real-time activityand status

Location, On/Off,Roaming, In-call

MY CONTEXT

Carrier Brand/Business valueroaming agreements, secure

distribution networks, sophisticated(micro-)payment, order fulfillment andprocessing capability, trusted brand,

near universal subscriber base

MY TRUST

The carrier's (latent) assets


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100,000 +

third-party

Developers

i-Phone

Google

Amazon

consumer

Third-Party Applications Web 2.0

...

...

i-Phone receives 8500 new or updated Apps per week!i-Phone receives 8500 new or updated Apps per week!


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100,000 +

third-party

Developers

Telco A

Telco B

Telco C

consumer

Third-Party Applications Telco Today

Fragmentation reduces appeal to 3 rd party developersFragmentation reduces appeal to 3 rd party developers

Telco x

...


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100,000 +

third-party

Developers

Telco A

Telco B

Telco C

consumer

Third-Party Applications Standard APIs

Creates critical mass for 3 rd party developersCreates critical mass for 3 rd party developers

Telco x

... C o n s i s

t e n

t a c c e s s

t o u n

d e r l y

i n g c o m

m u n

i c a

t i o n s e r v

i c e s


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Third-Party Applications Value Proposition

What will appeal to application developers? Consistent access to underlying services that telecom operators can provide... authentication, security ability to readily customize the new services ease of integration ability to monetize

common telecom world interface for web developers


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Standards Initiatives ATIS SON Forum

Service Enablers 3 rd Party Interfaces Catalog of enablers Data Model requirements Name Space requirments IT Infrastructure virtualization

See: http://www.atis.org/SON/

GSMA Rich Communications Suite (RCS) OneAPI

OMA TMF OASIS

Coordination between standards forums is increasing.Coordination between standards forums is increasing.


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Web Services/SOA: The key to Application Velocity

> Marriage of IT and Telecom technologiesusing web services/SOA to transform

service development> Dramatically increased service velocity

Rapid prototyping Rapid deployment

Promotes experimentation Service, business models Productize only those services that get traction in

the market

Reinvent the Applications Space

Telecom IT Enabler Building Blocks New Services

Months/Years Days/Weeks

Long Tail:New services/businessmodels

R e v e n

u e s

Low

Med

High

Number of Services

Short Tail:Core Operator Revenues


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Real World Example

> Click-to-call targetedadvertising

> Click-to-call yellowpages or customerservice

> Click-to-purchase ads

with credit cardvalidation> Communications

enabled servicesleverage the Nortel CM9520

Click-to-purchase ads

Click-to-call ads

Click-to-call yellow pages

Web Services Exposure Enables Mashup Composition of newServices and Applications on TV & PC

Web Services Exposure Enables Mashup Composition of newServices and Applications on TV & PC


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Service Evolution:From Service Silos to Converged Services

Service Silos

Bundled Services

Converged Services

Innovation

D i f f e r e n

t i a

t i o n

LocationAndrewSusan

Alert

Enhanced Services

IPTV

Mash-ups

Communicationson TV

Mobile TVCommunications

on PC

ConsumerMobile

Extension

More than the sum of bundled services Exponential increase in services

Service Oriented Networks


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Digital Value Chain

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