International Telecommunication Union Geneva, 9-10 February 2009 New Business Models for Network...

Geneva, 9-10 February 2009

InternationalTelecommunicationUnion

New Business Models for Network Operators

David GoodmanProfile Product Line Manager

Subscriber Data Management, Converged CoreNokia Siemens Networks

ITU-T Workshop on“New challenges for Telecommunication

Security Standardizations"

Geneva, 9-10 February 2009

Geneva, 9-10 February 2009InternationalTelecommunicationUnion 2

Content

Subscriber Data Consolidation

Vision 2015

Telco 2.0

Identity Management

Summary


Broadband everywhere

Multitude of business models

Applications predominantly in internet

5 billion people connected

Vision 2015 – The World Connected






Subscriber-centered, information-driven






Customer Insight

Managed Experience

Converged Experience

Personalized Service

IntelligencePolicy

IdentityMobility

OpenSubscriber

Data


Recognize the value of subscriber information

1

Align theorganization

74% of operators have already evolved their organisation towards a subscriber-centric model

Subscriber-Centric Evolution

Unify subscriber data across network and services

2

Simplify and personalise services

70% are planning to start creating a single view of subscriber data by end of 1H 2009

Profile subscriberbehaviour across network and services

3

Reveal customer insights

76% say customer profiling is their first area of interest for subscriber data

Expose subscriber information to third party eco-system

4

Exploit new business models

64% say identity management is second highest area of interest for subscriber data


Content

Vision 2015


Telco 2.0

Identity Management

Summary


Silo Networks, Silo Data

Service providers have become detached from their real-time subscriber data – which severely limits their capacity to appropriately interact with customers and partners.

Allows new competitors emerging from the content or retail sectors to exploit the new possibilities of aggregate services coming from Web 2.0 communities or the convergence of fixed and mobile services.


Silo Networks, Silo Data

CableMobile DSL Wireless Broadband

SGSN

CSCF

RAN

MSS

TV

DSLAM

BRAS

xDSLModem

CableModem

CMTS

Cable HFCAggregation

Switch

BRAS

AccessSwitch

WiMax

Policy

Access &Authentication

Call/SessionControl

CustomerProfiles

ResourceMgmt.

Accounting

Network Services

Video

Devices

Presence

Portal

Messaging

Voice/VoIP

Policy


Call/SessionControl

CustomerProfiles

ResourceMgmt.

Accounting

Network Services

Video

Devices

Presence

Portal

Messaging

Voice/VoIP

Policy


Call/SessionControl

CustomerProfiles

ResourceMgmt.

Accounting

Network Services

Video

Devices

Presence

Portal

Messaging

Voice/VoIP

Policy


Call/SessionControl

CustomerProfiles

ResourceMgmt.

Accounting

Network Services

Video

Devices

Presence

Portal

Messaging

Voice/VoIP


The Telco Inheritance

At present, for many service providers, customer data is spread across many different systems – often across different departments and in totally incompatible formats – with all the ultimately unnecessary cost, efficiency, error, duplication, synchronization, support and integration overheads that accompany such an approach.

Given the history of the telecommunications sector, such an inheritance has been unavoidableWhat’s important now is to make sure that the inheritance of data fragmentation doesn’t continue to cause further complications and headaches in the future.


Anytime, Anyplace, Anywhere

As the metabolism of the whole industry gears up several notches at once, network architectures and their underlying IT systems must be able to respond in real-time to increasingly complex interactions as customers move between devices, access technologies, payment methods and even identitiesThe future of telecommunications being predicated on an ability to offer speech, content and applications ‘anytime, anyplace, anywhere’ – to the same rigorous standards of service quality


Holding The Vision

This vision will be severely limited by an inability to bring together relevant subscriber data:

As customers move from cellular to WiFi networks or home PC´s, their device preferences are lost and services become annoyingly inconsistent.As domestic broadband customers surf between their IPTV, web, email, RSS feeds and MMS, their service preferences and supporting data fail to transferAs tele-workers move between personal and business time during a normal day, they are faced with having to constantly re-key and re-log network identity information to gain access to the right environment.Service providers have limited ability to combine contextual information with interests, communities and content to offer attractive and premium-priced aggregated services.


Identifying The Subscriber

If a network operator is to make the essential next step towards providing what are truly personalized services, then a consolidated, real-time, de-fragmented picture of the subscriber must be available to act as the catalyst for rapid service creation, deployment and delivery


Data Layer

Data Layer

High Performance Core Open Access

Control LayerPolicy AAA

Call/SessionControl

CustomerProfiles

ResourceMgmt.

IntelligentNetwork

Services Layer

Presence Video/IPTV DevicesPortal Messaging SDF

Subscriber Profile Database

CableMobile DSL Wireless Broadband

DSLAM

BRAS

xDSLModem

CableModem

CMTS

Cable HFCAggregation

Switch

BRAS

AccessSwitch

TV

WiMax

SGSN

CSCF

RAN

MSS


Standards-based Architecture

An open, standards-based architecture that sits at the heart of the network creating a horizontal and unified subscriber data layer across all applications.

Separating application logic from the subscriber data liberates and unifies customer data that is currently locked away in silo, closed and often proprietary systems.Through this unified approach, mobile, fixed and broadband service providers can take control of their subscriber information, unlocking and securely sharing data across an array of applications, networks and partners. By consolidating this data, applications are able to share one complete, rich and consistent view of the subscriber data instead of limiting its usage.


Unified Subscriber Data

Directory


Data Consolidation

Data consolidation achieves this through several ways:

By creating one operator common data model, subscriber data can be harmonized across the network into one logical data layer, removing data inconsistencies and duplications. This ensures a distributed data architecture can be centrally managed throughout its life cycle, essential to the evolution and integrity of the data model.Where data cannot be consolidated, it is federated from silo data sources to bring it into one complete viewAll data appears to form one common information model, but may be stored in a third-party SQL RDBMS databaseBy having one database, only one point of integration is exposed for all applications


Simplification

This simplifies subscriber and service provisioning, eliminates application integration complexity – and means that only one database ever needs to be updated.Wasted network capacity is eliminated by simplifying network architecture, reducing server and storage requirements, and sub-optimal usage of database software licensesSystem resilience and scalability can be more optimally managed through data consolidation, delivering carrier-scale availability through a highly distributed real time architecture.


Common Data Model

Although ‘putting everything into the same box’ delivers demonstrable savings, it’s from the flexibility in how subscriber data is structured, distributed, exposed and managed that the real tactical and strategic benefits accrue – and through the promotion of a common data model tailored to an operator’s data requirements.


Content

Vision 2015

Telco 2.0


Identity Management

Summary


The Telco 2.0 opportunity

Subscriber-centred Subscriber data-focused Subscriber profiling Business model innovation

2

User-centred User data focused User profiling Business model innovation

1

Telco World (Subscription Driven)

Converged Core and Services

Internet World (Content driven)

Web Services

InformationExchange

• Contextual identity• Profiles information• Policies information• Authentication, Authorization• Location, Presence information• Payment, Billing• Personalization information• Profiling, Recommendations

3


Static data is updated infrequently but must be read in real-time by many applications

Transactional data defines entities that are derived from transactions and service usage.

Dynamic data is constantly updated as the subscriber interacts with services, manages subscriptions and changes between environments

Operational data enables the end-to-end quality of experience to be controlled and services to function correctly.

A Single Profile StoreTypical Operator Profile Directory

Static

Pro

file

Dynamic Profile

Transactional Ope

ratio

nal

Pricing plan

CPE profiles

Address

Presence

Buddies

User identitiesSubscriptions


Security

Policies

Activity

Recommendations

Balance

Directory

QoS

Sessionstate

Real-time subscriberprofile

123456

00:01:43

TM

TIMESTAMP


Subscriber Data ManagementHolistic solution

Customer InsightManaged Experience



IntelligencePolicy

IdentityMobility

OpenSubscriber

Data


76% of operators state that subscriber data management is the most important convergence issue for their organisations over the next 12-24 months*

83% of operators say that real-time subscriber data is critical to improve the subscriber experience*

* Loudhouse Research on behalf of Nokia Siemens Networks




IntelligencePolicy

IdentityMobility

OpenSubscriber

Data

Subscriber Data ManagementHolistic solution


87% seek to improve customer insight in next 12 months*

Subscriber Intelligence Framework


72% see prediction of customer needs as important*

Only 14% have real time data analysis available to them*

53% state existing customer data doesn’t allow for profiling*Customer Insight

Managed Experience



IntelligencePolicy

IdentityMobility

OpenSubscriber

Data


Identity Management Framework


64% of operatorssees identity management and managing multiple subscriber identities as a key issue*




IntelligencePolicy

IdentityMobility

OpenSubscriber

Data


Policy Management Framework

68% of operators see access and authentication data as obstacles to providing seamless services between different access networks*




IntelligencePolicy

IdentityMobility

OpenSubscriber

Data



Content

Vision 2015

Identity Management

Telco 2.0


Summary


Broadband bit pipes

Web 2.0

Legacyinterworking

“Will operators lose out on $1 trillion* in Web 2.0?”

Terminals Fixed/cable

POTSphone

ISDNphone

SIPphone

PCClient TV SIP SIP

Mobilephone PDA

Multiradio Mobile platform

*Light Reading, Vol. 7, No.6, June 2007

Transform or become a bit pipe?


Monetizing Subscriber DataSeize the opportunity to transform business

• The Internet-based ecosystem – Amazon, eBay, Google, etc. – already exploits customer data

• 76% of operators believe customer profiling harbours the greatest business potential

• Targeted mobile marketing yields response rates as high as 45%**

• Operators see subscriber identity management as a top priority

*Source: Apertio Loudhouse Research, Q3’07**Source: Blyk MVNO first quarter results

Roaming services

Regulatory compliance

Fraud prevention

Web services

Service convergence

Security

Service personalization

Identity management

Customer profiling

Operator poll: What are the most relevant areas ofsubscriber data intelligence in your opinion?*


Total Global IDM Market

Forrester: Identity Management Market forecast: 2007 To 2014

The market harbors great potential for IDM applications

$0

$3,000

$6,000

$9,000

$12,000

$15,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

CAGR = 21.6%(2006 to 2014)

Mar

ket

size

(U

S$

mill

ions

)


Business Transformation and the Role of Telcos

Operators

Internet players(ASPs, third-party software vendors, content providers, ad companies)

Newservice opportunities

Strong relationship

Service provider

• Countless attractive services

• Need for user authentication

Identity provider• Trusted provider of

high-quality services• Trusted billing

relationship• Unique authentication

capabilities

Focus on

Users1. Controlled access to

online applications2. Portable identities across

domains3. Protected user privacy

Identitymanagement(IDM)


Identity Management Framework

Identity federation

Attribute query/push

Authorization & trust management

Mutual authentication

Single sign-on (SSO)

Customerprofiles

Close & trusted relationship with subscribers

and communities

Identity management will enable new revenue opportunities, and enhance the user experience

Network-agnostic identity management is the key component of tomorrow’s multi-access network

The role of identity information will evolve, strengthening the operator’s position in the value chain


Repository

Identity Management Architecture

Payment

WiMAX ASN-GW

WLAN AC

3GPP MSC-S

(CS)3GPP GGSN

(PS) SAE GWSGSNMME

xDSL BRAS

IMS Policy Server

HSSHLRAAA/BSF

Operator services

WAP MSSC Stream

New Internet revenue streams await network operators

The operator unifies subscriber profiles with SSO and a common profile

Common repository for subscriber information

TCO-optimized IDM for multi-access and convergence

Identity manager


Identity Management Use Cases




IntelligencePolicy

IdentityMobility

OpenSubscriber

Data

Web single sign-on

Cooperative payment

Targeted advertisement enabler

User account provisioning on demand

Service blending with caller ID on IPTV

Personalized web homepage

Anonymous federation and queries

Legal age verification

Child locator/parental screening


Web single sign-on

Trusted Partners in Web 2.0

• Operator works with third parties or in-house service providers circle of trust and new revenue streams

• User signs on once to access all applications in the circle, and enjoys• a convenient user experience• controlled, secure access to online

services

• Enriched portal attracts & retains users• Cuts costs & saves time by

• using a central approach to identity• mashing up in-house and third-party

applications with SSO• Establishes a reputation as a trusted

partner in the Web 2.0 world

Operator challenges

• Reduce churn to Web 2.0 service providers and other telcos

• Enhance the user experience • Simplify use of in-house and externally

branded applications• Establish a trusted image/brand

Operator benefits

Use case overview

Operator

circle of trust

User (when abroad)

User MySpace

Mail, calendar

Internetcommondatabase

Identity Manager


Protect Key Assets

Anonymous federation and queries

• Only trusted partners and authenticated users view the selected subscriber’s identity data

• Brokers across the network and web domain

• Allows access to be restricted for each SP and protects subscribers’ privacy

• Single storage place for all identities and attributes increases security, saves costs and simplifies user management

• Automated processes for network access and web domains increase efficiency– User provisioning– Password management– Access control

Operator challenges

• Master the challenge of complex, distributed IT

• Control costs and maintain security while increasing access to information

• Protect subscribers’ identities

Operator benefits

Use case overview

Operator

circle of trust

Identity Manager

User (when abroad)

User

Service(e.g IPTV



Profile Access with Privacy

Legal age and nationality verification

• Cost of compliance for legal age and nationality

• A gambling, adult content, government, adult purchase can pay US $22 per registered user to verify compliance today

• Operator provides and guarantees legal age and nationality for competitive fee

• Generate revenue for legal age and nationality verification service to online sites requiring strict compliance.

• Operator can provide timely verification whilst protecting privacy and using existing subscriber assets.

• Quick return on investment

Operator challenges

• Become a major player in the Web 2.0 world and generate revenue from subscriber data assets as a trusted identity provider for service/content providers.

• How to protect subscribers privacy?

Operator benefits

Use-case overview

Operator

circle of trust

User

Online Gambling


Legal AgeVertification

Identity Manager


Content

Vision 2015

Summary

Telco 2.0

Identity Management



Summary

Next-generation business model for network operators demands subscriber-centric data consolidation to:

Improve CAPEX/OPEXImprove time-to-market with new servicesLeverage subscriber loyaltiesEncompass Web 2.0/Telco 2.0 opportunities particularly through identity management-based services

Security challenges:Protecting subscribers’ identities, identity data and privacy as well as engaging subscribers with their dataFrom a standards’ perspective it’s a brave (and exciting) new world


PostscriptAn ITU-T success story


X.500 – A PARADISE Found and Lost

One of the best things X.400 ever did was to spawn the X.500 series of recommendations for distributed directory services, published in six editionsAs with X.400, X.500 was originally driven by telcos who wished to provide a global directory of OSI and other services

Realised to some extent in the R&D pilot, PARADISEBut failed, despite Herculean efforts, in the NADF and Eurescom initiatives

In the ’90’s X.500 went underground as LDAP-based systems flourished in the corporate space

A simpler protocol, API and overall conceptBut it still lacked many things … in terms of robustness, distribution and access controls, there was no match


One-NDS

During the ’90s, a group of developers working for Orange UK in Bath were looking at network operators requirements for real-time applications, primarily HLRs (Home Location Registers)

Having already used RDBMS, they turned to X.500 as a preferable deployment model

That idea became One-NDS, a real-time, resilient and distributed and application hosting environment conceived and built for 2G and 3G telecommunications networks

Specifically designed to enable the use of a common centralised database by multiple applications through the support of open data access protocols


NSN CC SDM Customer BaseHighlights

Deployed with 62 customers in 39 countries worldwide

Over 740 million subscribers

One common subscriber database – One-NDS

Nine NSN and hundreds of local dataless applications


Summary

What goes around, comes around …… let’s keep up the good work!


Thank [email protected]

Thank [email protected]

International Telecommunication Union Geneva, 9-10 February 2009 New Business Models for Network...

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