Ecosystem for Telecom and IT Business

in the Broadband World

The Lesson for Broadband NGN Migration

邱武志 , Victor Chiu Vice President, Telecom Labs

Chunghwa Telecom (CHT)E-mail: wjchiu@cht.com.tw

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Current Issues in Broadband Era

Bandwidth has been in place for years Fixed: ADSL, Cable Modem, and FTTB/FTTH Mobile: GPRS, CDMA, 3G and WiFi

ARPUs of fixed and Mobile are dropping rapidly Broadband investment is sort of a business without

real payoff How to leverage on partnerships for 3G and NGN adoption Regulator is not in place yet for broadband world Skype is free and not a hype! Value Added Services (VAS) are yet very shallow

- Fixed and Mobile revenues < 5% (e.g. Taiwan)

No strong VAS revenue growth, the telecom business will become a business of no future soon

Rev: CK Mao: VAS – Challenges and Visions

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Killer Applications Should be in “CITE”

VAS should be with C-I-T-E and in personal portal VAS = C-I-T-E

Communications (one way and both way, real and non-real time) Voice, IMS, SMS, e-mail, conferencing, surveillance, ..

Information Web search, news, download, e-learning, …

Transaction E-commerce (B2B, B2C, C2C, ..), banking, ordering, ..

Entertainment Gaming, video, music, sports, …

Color ring back tone is a VAS, but will be considered as an oasis in a desert

Rev: CK Mao: VAS – Challenges and Visions

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Cyberspace of VAS Redefinition of Cyberspace

Home Space, Work Space, Leisure Space Telecom and IT - ICT Three overlapping sub-spaces should be based on mobile for

seamless

An ecosystem including content owners, solution providers, aggregators, carriers and users should be formed in this cyberspace

Home SpaceHome SpaceWork SpaceWork Space

Leisure SpaceLeisure Space

Mobile SpaceMobile Space

Cyber Cyber SpaceSpace

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IMS and FMC come for VAS!

Carrier should help itselfCreate platform for Amazon Rain Forests rather than

Oases in Desert Open the platform for all VASPromise the marketing Ecosystem is in good health

content owners, solution providers, aggregators and the carriers

Rethink: the winner takes it all (or share with all) IMS (IP Multimedia Subsystem) is for VAS IMS-based FMC (Fixed Mobile Convergence) should

be an infrastructure for the healthy ecosystem

Rev: CK Mao: VAS – Challenges and Visions

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IMS Comes to the rescue for Providers IMS is from End User’s View Point

The explosion of IMSapplications increases revenue

APPLICATIONS AWARE

Converged effectincreases application value

Identity management allowsnew levels of personalization CONTROL

DEVICE AWARE

APPLICATIONS

ACCESS

END-USER AWARE

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Mobile WiMAX Vision

>Bandwidth intensive applications and services

>Naturedly born for VAS

>Highest bits at the lowest cost

>Spectrally efficient

>Smallest number of cell sites

Mobile WiMAX Delivers Multi-megabit Internet Everywhere

WiMAX is also coming for VAS

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Pirarucu, Arapaima gigas are the largest, exclusively fresh water fish in the world.

They have been found to reach a length of 15 ft/4m and can weigh up to

440lbs/200kg.

Freshwater fish in the waters of the Amazon River.

River in Amazon Forest

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An Oasis in Desert

月牙泉，敦煌，中国

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Sahara

Sahara

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Sahara

Brand Dubai – a new modem Amazona no Tax World Trade, Internet, Media, DoBuy, 85% foreigners and Academic City

Part II

1. VAS and the Mesh Ecosystem 2. Ex: A VAS handset of mobile banking ATM? 3. Successful factors for FMC4. Regulator decides who win(s)

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User Terminal

VAS and the Mesh Ecosystem

Traditional telecom service value chain Carrier-CPE-User

VAS/IMS era demands a brand new Mesh Ecosystem

User-based Cyberspace: (Home + Work + Leisure ) + Mobile

Personal Portal

Content Provision Service Provision

IMS-based Infrastructure (Fixed Mobile Convergence)

VAS (C-I-T-E)IMS

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Ex: A VAS handset for mobile banking ATM?

Who are the customers you are going to target at? (SP perspective)

How to find your customers who go e-banking frequently? Which banks are you going to partner with? Find specific handset vendors and bundle the handsets with your

system (including banks) Which mobile carrier are you going to subscribe? (customer’s view)

A big challenge for an ordinary customers Which model of the handset? Which bank? Then Which carrier?

A worldwide problem A specific handset, a specific bank, a specific carrier, platform, … User size is too small (subset of the subset of ..), both bank and

carrier just hesitate to do

No healthy ecosystem exists at all now! Banks and Mobile operators should be good friends

Rev: CK Mao: VAS – Challenges and Visions

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Regulator decides who win(s) ( 螳螂捕蟬 黄雀在後 獵人全看在眼裡 )

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Successful factors for FMC

Technology – standard Business Model - ecosystem New skill for players - training - Sales, engineering, operations,

administration, .. NGOSS for FMC – operations standard

EcosystemAnd more ….. that we don’t know yet

Thank you and

questions?