Nokia Siemens Networks PPT Template - CICOMRA

Bridging the Internet 

and Telecom worlds 

Expocomm, September 2008 

Soc Classification level 

1 © Nokia Siemens Networks

Service Trends 


Web2.0 Megatrends 

1. The Web is being reengineered… 

2. Empowered devices and consumers… 

3. Web or Mobile It doesn’t matter… 

4. Representing and living in the Web… 

5. A new wave of innovation, partnering and media consumption… 

Consequences: Changing Business Models and Success Factors… 


MEGATREND #1: 

The Web is being re-engineered From Web 1.0 to Web 4.0 

Web 1.0 

Web 2.0 

Web 3.0 

Web 4.0 

TIMEFRAME 

1990 - 2005 

2000 - 2010 

2010 - 2020 

> 2020 

CYCLE 

Web “X-end” 

Web “Front-end” 

Web “Back-end” 

Web “Front-end” 

SYSTEMS 

ACCESS 

Developing the basic 

Internet platform and 

routing network. Making 

information widely 

accessible via HTML. 

All about enhancing the 

Web User Interface, 

open programmable 

systems and connecting 

people 

The Web becomes 

intelligent, sentient, 

aware of its information 

and able to understand 

and anticipate its users 

needs 

Immersive worlds, manmachine 

convergence, 

alternate realities, 

sensory experiences, 

personal online agents, 

hyper-broadband 

IMPLICATIONS 

Implications 

FOR TELCOS 

For Telcos 

300bps – 100kbps 

Major carrier investments 

in global networking 

infrastructure rollout, 

focus on capacity 

expansion and 

connectivity to the 

masses 

100kbps – 10Mbps 

Partnerships with media 

companies in the content 

space, Internet-based 

social networking 

applications, advertising 

business models, IP 

control systems & QoS 

10Mbps – 100Mbps 

Key role to play in 

defining next generation 

IP network topology, 

focus on user-centricity, 

complete integration of 

devices into the network 

application layers 

> 100Mbps 

Fundamental shift in 

business model – new 

subscriber needs, 

communications far 

beyond voice, biotech 

forms of access, rise of 

the “Matrix” operator 

4 © Nokia Siemens Networks 

Bridging Internet and Telecom / Author / Date

#1: Today there is a heterogeneous zoo of 

Web2.0 offers in the market - the Web2.0 cube 

User interest 

generic 

special 

Service origin 

global 

Video 

regional 

social 

content 

Purpose & motivation 



#1: Rapid increase of regional social networks 

Example Germany (Oct. 2007) 



MEGATREND #2: 

End-user devices are becoming powerful nodes fuelling the 

growth of P2P network traffic and file sharing 

Limits Shattered 

• Faster CPUs, 3D graphics 

• Massive storage capabilities 

• Crystal clear displays 

• Media-centric 

Always Online 

• Multiple PDP contexts 

• Multiple access bearers 

• Application-driven 

• Web-centric 

Intelligently Connected 

• Push instead of pull 

• P2P applications 

• Intelligent User Interfaces 

• Node and presence aware 



#2: Consumers are becoming empowered 

entrepreneurs Web2.0 - The rise of user 

generated content and „The Prosumer“ 

Video 

Everything is going 

“OPEN”: open source, 

open social, open 

platforms, open content 

Access for individuals to 

coding resources, 

knowledge, user groups, 

forums, blogs and tools to 

create almost anything 

digital 

Consumers are changing 

their media consumption 

habits – classical models of 

entertainment programming 

are fast becoming obsolete 

Distribution of media via 

the Internet is quicker, 

faster and reaches the 

target audience via 

”hyperdistribution” 



MEGATREND #3: 

People no longer distinguishing betw. Web & Mobile 

It’s ONLY about the Web 

The average end-user 

doesn’t know (or care) 

about the technical 

difference between the 

delivery method of an SMS 

and an MMS message 

Applications are no 

longer separated 

between the telecomms 

domain and the Internet 

domain 

By default, network operators 

no longer have voice 

subscribers, they have 

Internet subscribers, voice is 

just an application 

Broadband data via a 

mobile modem on a 

desktop PC is a viable 

alternative to fixed line 

Internet SP’s 

Source: Nokia Smartphone 360 Survey, 2007 

Access to IP multimedia 

video, audio, tv and radio 

services is no longer a 

constraint from today’s 

mobile phones 



#3 People no longer distinguishing betw. Web 

& Mobile All modes of communications shifting 

to IP, and becoming richer 

Voice 

Web Browser 

Text Messaging 

Multimedia 

Messaging 

Navigation 

Email 

Music Player 

Organiser 

Still Camera 

Video Camera 

Social 

Networking 

Mobile TV 

Instant 

Messaging 

Weather Station 

Online and 

Offline Gaming 

Search Engine 

FM Radio 

High-Speed 

Modem 

Download 

Application 

File Sharing 



MEGATREND #4: 

People want to represent their identities in the Web 

The Web represents a means to live life through one (or 

more) online personas 

The MILLENIAL 

generation:- 

teenagers are 

invested in 

showing people 

their IDENTITIES 

People upload some 

of their most trusted 

secrets with total 

strangers to connect 

socially and feel part 

of a community 

Facebook and 

MySpace represent 

two best examples of 

the social 

networking 

phenomenon 

Facebook already 

allows people to 

email, IM, SMS, 

MMS and media 

share – from their 

mobile phones! 

Social Networking 

sites allow people to 

feel like they have 

more control over 

their Bridging Internet 

and Telecom of self. 

Space, time and distance 

are irrelevant in an 

online world for creating 

relationships: 

BLOGGING is creating a 

richly connected global 

conversation 


#4: People want to represent their identities in 

cyberspace. The dawn of the Three-Dimensional 

Internet is upon us… but at a price 

People are creating 3D identities, 

called "Avatars" and letting these 

versions of themselves roam in 

virtual always-online worlds 

SecondLife represents the 

closest thing to an online parallel 

universe, complete with 

governance and a self-sufficient 

economy 

The Web is constantly 

learning from us, about us, 

tracking and storing our every 

online move, purchases and 

preferences 



MEGATREND #5: 

Web2.0 players innovate in a rapid pace and diversify into 

the Telco service domain 

Fixed Voice 

Internet 

Access 

Free access in 

Heathrow Airport 

PC2PC 

Free Wi-Fi in video calls 

Sheraton Hotels 

Google, Skype 

Fund fon.com 

Wi-Fi startup 

Free Wi-Fi in 

Free/Paid Wi-FiMountain View, CA 

In San Francisco 

Partnership 

with BT 

Takes a stake in 

BPL venture 

Partnership with MCI 

PC2 Phone calls 

Partnership 

with Verizon 

Acquisition of 

Skype 


Media Stream 


Teleo 

Partnership 

with SBC 

PC2 Phone calls to 

30 countries 

PC2PC 

video calls 

Google Talk 

Free PC2PC calls 

Partnership with 

Net2Phone 

Free PC2PC 

calls 

PC2PC 

video calls 

Free PC2PC 

calls 

PC2 Phone calls 


Dialpad 

Mobile 

search 

Mobile IM 

Phone2Phone 

VoIP 

Mobile IM 

Yahoo! Go Mobile 

Mobile local 

search 

Handset with 

Nokia 

Mobile local 

search 

Handset with 

Ericsson 

Mobile email 

Mobile Handset with 

search 

Motorola 

Skype for PDAs 

Skype partners Partnership 

With Eplus 

with 3 

2006H1 2005H2 2005H1 2004H2 2004H1 

2004H2 2005H1 2005H2 

2006H1 

Mobile Voice 

and Data 

Source: Capgemini TME Lab Analysis 

Yahoo! Google MSN eBay/Skype 



Consequences: Telecommunication providers 

have to define their Web2.0 strategy now ! 

Fixed and wireless 

broadband as enabler 

Services independent 

of the network 

Rapid usage growth 

and innovation 

• Broadband is the growth 

segment in 

telecommunications 

• Increasing access capacity 

at low flat-rate prices 

• Broadband as enabler for all 

kinds of 3rd party services 

• Market boundaries diminish 

through multi-play bundles 

• No vertically integrated 

prime contractor anymore 

• Strong growth of Web2.0 

community services 

• „Free of charge“ 

business models 

• Expansion towards 

communication services 

Urgency 

to act 

• Web2.0 offers start to cannibalize telco provider‘s 

• Legacy business – e.g. voice and SMS 

• New growth opportunities - e.g. YouTubeTV vs. IPTV 

• Telcos are in danger to become a broadband bit pipe only 

– multi-play is reduced to multi-access 



Web 2.0 are successfully cannibalizing the 

usage of telco services 

In France, the time spent on telco services now constitutes only 53% of the total time 

spent on communication. Estimated time spent on communications per person in France per week (%) 

2 hrs 23 mins 

X1.9 4 hrs 25 mins 

Telcos 

95% 

5% 

18% 

75% 

1% 

2% 

30% 

15% 

8% 

21% 

IM 

Email 

SMS 

Wireless 

Voice 

Online 

Players 

Google 

Yahoo 

MSN 

47% 

Telcos 

Skype 

AOL 

26% 

Wireline 

(incl. VoIP) 

53% 

2000 

2005 

Source: Capgemini estimates based on Arcep reports, IDATE, „Telecom 2.0: emerging usages and implications for carriers“, June 2006. 

MSN Report, „Europes Online Youth“ ; Comscore Media Metrix, Worldwide IM usage, May 2006 



The Web2.0 market dynamics change the 

business success factors for Telco‘s 

Telecom Business 

Web2.0 - Combined Telco & Internet Business 

Competitive pricing 

customer attraction in a highly 

comparable service landscape 

Convenience and personalization 

customer retention in a highly fragmented 

service, content and contacts landscape 

End-to-end 

Vertically integrated and standardized 

services solely developed by the provider 

Modularity 

Short-time-to-market and more variety by integration 

and win-win-partnerships with ASPs 

Predefined services 

Differentiation by selling 

pre-defined service packages 

Boundless communication and sharing 

Differentiation by most attractive platform for user 

interaction and user generated content 

Direct usage charging 

Maximum exploitation of users‘ willingnessto-pay 

within the contract period 

Cash-in to indirect revenue sources 

Utilization of the customer information for personalized 

advertising and up sell of application bundles 



Foreword 

Web2.0 service strategy 

development 


Typically telco providers own the critical 

assets for the Web2.0 business 

Business success factors 

Assets for differentiation 

Convenience 

and personalization 

Transparency on Quality of Experience 

Actual network and user profile information 

Modularity 

Boundless communication 

and sharing 

Access independency 

Coordination of service building blocks 

Infrastructure for flexible 3rd party integration 

Premium interactive services 

Feature rich communication platforms, e.g. voice 

Cash-in to 

indirect revenue sources 

Customer intimacy 

User data as basis for advertising and up sells 



Telco Value Contribution to Web2.0 



Communication providers can select out of 

four basic Web2.0 service strategies 

Aggregate established 

Web2.0 services 

Establish own 

Web2.0 service 

Service 

Web2.0 

Goes mobile 

Ubiquitous 

Web2.0 

Platform 

Fixed & 

Mobile 

access 

Web2.0 

aggregation 

Web2.0 

Platform 

Fixed 

Provider engagement 



Web2.0 Solutions & 

Evolution 


Flexible solutions for the Internet 

Supporting your Web2.0 strategy 

Convenience & personalization 

Service Delivery Framework 

Community solutions 

Subscriber data management 

Efficient service control on 

any access and device 

Modularity for 3rd party application 

integration and mash-ups 

Boundless communication 

and sharing 

Customer data mining to cash-in 

to indirect revenue sources 



23 © Nokia Siemens Networks Bridging Internet and Telecom / Author / Date

Example for a Web2.0 application: 

VideoSharing Blog to YouTube 

• Jill is sitting in the park waiting for her friend to arrive. Suddenly she notifies that an funny street 

performance is taking place close to her. She decides that she would like to post the view on 

YouTube by using her 3G phone. 

• Jill makes a phone call to the “YouTube number”, establishing thereby the SIP registration to the 

IMS. After listening to the pre-recorder announcement, she opens the camera slide and starts 

streaming the video to the blog server. 

• The video is directly uploaded to YouTube using Jill´s YouTube account, and when Jill completes 

the recording, she receives an SMS (and/or email) with the link to the video, so she can forward it to 

her friends. 



Example for a Web2.0 application: 

Start simple…. Identify Me / Central Identity 

Voice Call 

Dating 

SMS 

2nd Life 

Rich Video 

Share 

Gaming 

Visual 

Mailbox 

(Converged) 

Messaging 



IMS combines the strength of both: 

internet and mobile world 

Vertical Telcoservices 

Horizontal Internet services 

VoIP 

Voice 

Data 

VoIP 

Blended 

Services 

CS 

PS 

IMS 

Narrowband 

Broadband 

• IMS enables new community based and blended services 

• IMS enables internet business models 




Examples of Internet mash-ups 

General Web services (data) 

– example: EBay 

Google Calendar 

(calendar) 

Friendster (social network 

communities) 

SDF Mash-up with API/SDK (i.e. browser capabilities 

positions executable Telco in scripts, a comparable 

position widgets, to ISPs such player, as web Google and 

Yahoo in terms of page) openness to speed 

up more innovative long tail services 

Flickr (pictures) 

YouTube 

(videos) 

Google Map 

(location) 

Last.fm (music) 

SDF 

Japanese music & video 

crawler from YouTube & 

Last.fm 

Hotel locations with 

pictures and videos 

Starbucks coffee 

finder 

Map & location based social 

community – Ebay & 

GoogleMap 




Connecting the Web2.0 services with mobile 

users 

• Easy upload of content 

photo, live video, … , to internet media 

communities while mobile 

• Works with every mobile phone 

doesn’t need a dedicated xSP client 

• Choice of multiple media communities 

users choose the content sharing platforms 

and email destination for their upload 

• Boost operator’s traffic 

via MMS and 3G video calls 

Operator 

Aggregation 

Internet 

communities 

User 

User sends content from 

mobile phone 

User views content with 

any phone or PC browser 

et.al 



Mobilizing Internet communities – 

Business model 

• Mobilizing Internet communities 

• allows to participate from huge existing 

community base and strong xSP brands 

• generates new revenue from subscription 

fees and additional traffic 

• will counterbalance by far the possible losses 

from substituted traffic and interconnection 

fees 

Mobilizing Internet communities – 

highly popular applications with short return 

on invest 

Service 

fees 

New 

traffic 

traffic 

Substituted 

Interconnect 

losses 

Net 

Revenue 




Monetize your Subscriber relationship 

The role of subscriber 

knowledge will evolve 

and generate new value 

chains. We have the 

solutions in place! 

Network independent 

subscriber management 

is the key component of 

tomorrow’s multi-access 

network. 

Subscriber data mining 

will enable new services 

e.g. advertising and 

knowledge brokering 

Identity 

Profiles 

Buddies 

5 Bn people 

connected 

Operators 

have close & trustful 

relationship to subscribers 

and communities 

- a key value - 

Services 

Location 

Usage 

Presence 

Preferences 



The advertising 

opportunity 

Each dimension of profiling doubles advertiser value 

Demographics Behavior Context 

• Age 

• Gender 

• Zip Code, Country 

• Race / Ethnicity 

• Nationality 

• Language 

• Education 

• Occupation 

• Income 

• Marital status 

• Family Size 

• Hobbies (Sport, Travel, 

Entertainment, Shopping,..) 

• ... 

• Purchasing history 

• Communities 

• TV channels watched 

(Sports, News & Info) 

• Device Usage Statistics 

• Downloads 

• Games 

• Gambling 

• Favorite Portals 

• RSS news feeds 

• Attended Movies 

• Interests 

• Shops at 

• … 

• Location 

• Presence 

• 2G/3G coverage 

• ARPU/Account balance 

• Watched TV channel/clip 

• # sent SMS/MMS 

• # PI, av. Session length 

• Ad click rate 

• Carrier 

• Device Manufacturer 

• Device Platform 

• Device Capabilities 

• … 



Case history: 

Blyk 

Customer 

challenges 

Our 

solution 

Business 

benefits 

• Launch innovative new advertisingfunded 

mobile services in highly 

competitive marketplace 

• Minimize complexity and costs 

• Supply, build and host the entire 

operation of Blyk's core network 

• No infrastructure investments 

• Rapid roll-out 

• Full flexibility in core network 

operations 

“We have full 

confidence in Nokia 

Siemens Networks’ 

ability to provide a 

fully hosted solution 

for Blyk and its 

unique way of doing 

business.” 

Kai Friman, 

Head of Member 

Operations, 

Blyk 

Problem 

Solved. 

Real Business 

Solutions 



Summary 


Summary: Web2.0 – Engage or stagnate ! 

Act timely Utilize your assets Monetize Web2.0 

• Avoid cannibalization of 

legacy business 

• Transperency on 

Quality of Experience 

• Exploit indirect revenue 

sources 

• Secure new growth 

opportunities* 

• Implement new web 

business models 

• Coordination of service 

building blocks /Mash Up 

• Premium interactive 

services 

• Customer intimacy 

• Achieve short term community 

business impact: 

‒ +7,5% Revenues 

‒ -7,5% SAC 

*e.g. IPTV vs. Web2.0 TV, SMS vs. IM 



Monetizing the subscriber information 

The role of subscriber 

knowledge will evolve and 

generate new value chains. 

Network independent 

subscriber management is 

the key component of 

tomorrow’s multi-access 

network. 

Subscriber knowledge will 

enable new services e.g. 

advertising and knowledge 

brokering 

Operators 

have close & trustful 

relationship to 

subscribers 

and communities 

- a key value - 

Multitude 

of business 

models 



Thank You ! 

Soc Classification level

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