Trends In Telecommunication Services

Trends in Telecommunication Trends in Telecommunication ServicesServices

Trends in Telecommunication Trends in Telecommunication ServicesServices

Chetan Kumar SChetan Kumar SAlcatel Lucent India LimitedAlcatel Lucent India Limited

18th June EmbedAsia 2009

Introduction• The global financial turmoil adds new dimension to global

telecommunication trends• Smart phones explosion in 2008 and continuation is 2009

adds to on-demand information and computing– Intel buys WindRiver

• These adds newer services dimension as well– I would be covering service trends (a fraction of) in mobile

services and wireline services.

• Disclaimer– The thoughts, ideas and predictions given here are purely my

own, Alcatel Lucent may not share or acknowledge them.• Acknowledge

– various reports, blogs, article that are referred and/or influenced the slides here


Mobile services


The Lost pie

• Mobile users are expected to download 10 Billion application in 2009 - CNET News, 21 October 2008

• Intrusion by third party (mobile device manufactures and software houses)

• Operators are not likely to earn from application download by customers– Might get additional data customer, adhoc

or flat model– Additional bandwidth used do not add more

revenue.


What might mobile operator target

• Mobile operator can offer hosted services

– Adding presence and location sensitivity to application

– Add collaboration and conferencing services to application

– Hosted gaming services

– Mobile operator can offer application and device backup service

• Charging application service to subscriber’s phone bills

• Mobile operators might launch their own application stores

– A slippery slope: here are many free application out their, pain of managing store should generate enough revenue


Scope for Equipment vendors

• Telecommunication equipment vendors are forced to be application aware– Should recognize application traffic for

reports and billing– End-to-end QoS will become all the more

important. Hosted services need service differentiation

• The equipments need to open platform for hosted services

• Billing software need to be flexible


Mobile Broadband still alive!

• Global sales of mobile broadband ‘dongles’ exceeded four million per month during 2008 GSM Association, 22 August 2008

• Expected to more than double during 2009 Broadband network infrastructure, Ericsson, 1 April 2008.

• Revenue from data is very less– In terms of data bytes, data is 30times cheaper than

voice !• Operators may collectively have to spend tens

of billions of dollars to accomodate growing user Beating the backhaul challenge in mobile, Amdocs, 2008

• Customers are yet not satisfied with data rate


What might operator do?

• Operators will try to divert heavy data traffic from cellular networks, and route it via WiFi-hotspots or home-broadband connections T-Mobile UK bundles free WiFi with Web’n’walk plus

– Device should automatically select the right device

– Need a new tariff plan• Offer premium services at higher cost

– Eat-all-you-can for home users, move to mobile office solutions to enterprise customer


Technological evolution in Mobile broadband

• True ubiquitous access will see a raise– All allied service, security, business model and

tariff for ubiquitous access will evolve– R&D spending in 4G will continue

• Mobile broadband service will undergo similar changes as fixed broadband service– Service model as appose to pipe model– The mobility dimension will add to the

complexity.


Wireline services


Wireline provider in search of new revenue

stream• No different picture than mobile service

providers– Offering bandwidth pipes for every one to ride

• This close relationship between providers and customers is open to many third party vendors

• There is no clear revenue sharing model between application provider and service provider

• New service require more bandwidth, providers will have enhance their back haul, but increase in revenue is not proportional

• IP transformation does provide scope for many new service.


New revenue stream• Hosted Services

• Types of hosted services as defined by Ovum: – Repeatable business process-led services shared among

several clients • Data center applications

– Remotely delivered application services using shared resources

• Hosted voice services, VPN services etc., – Infrastructure services (both remotely managed and/or

hosted services spanning data centre services, managed servers & databases, performance monitoring, security services, storage services and business continuity)

• Managed communication service (MCS)– Web hosting - the provision of infrastructure and

application services to support the hosting of Web sites.


What are customer asking for?

General Market Trends• Increased complexity of IT environment

(convergence, new apps) reveals expertise gaps

• Curtailed capital budgets shift costs to recurring operational expenses

• Remote workforce and partnerships require a balance between accessibility and security

• Rapidly changing business needs require scalable solutions


Why Managed Communication Service

• Businesses need outside help to manage– A complex, multi-vendor IT environment– With end-to-end performance standards– And protection of traffic from threats and

failure– Within budget and staffing constraints


Why Managed Services

24%

37%

39%

39%

42%

48%

55%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

Allow existing staff to concentrate on strategic as opposed to

tactical task

Allow existing staff to concentrate on strategic as opposed to

tactical taskEasier to provide 24/7

supportEasier to provide 24/7

support

Cutting costsCutting costs

Gain Access to certain skill sets

Gain Access to certain skill sets

Reduce deployment timeReduce deployment time

Easier than adding staffEasier than adding staff

Easier than training existing staff on new capabilities

Easier than training existing staff on new capabilities

What are the primary reasons that you would consider using a managed service?What are the primary reasons that you would consider using a managed service?

•Source: Distributed Networking Associates Survey, Nov 2008

•Source: Distributed Networking Associates Survey, Nov 2008


What is Managed Communication Services

Managed services are IT services that are• Proactively monitored

– Ongoing, not on a maintenance schedule• Through rich, real-time performance and

operations data– Not just a monthly, reactive report– Able to be accessed at any time

• That is shared by customer and provider– Customer and provider share responsibility for decisions

• So that action can be taken – Allows for real-time adjustments

• To reach customer-defined goals– E.g., cost, application performance– Can change at any time


Global Managed Services Market & Trends

0

50

100

150

200

250

300

2007 2008 2009 2010 2010 2012

ManagedNetworkingServices

Hosted Voice &Voice Application

Managed SecurityServices

Managed CPEServices

Managed AccessService

Source: The 2007-2012 Global Managed Services Market Forecast, from InfoTrack which is a publication division of Access Intelligence, LLC


Types of Managed Services in use


Thank You

• Questions?


Backup slides


Telecom Industry Trends

• From Huawei – Mobile penetration saturation – Ubiquitous broadband – Cloud computing – All-IP transformation – Carrier-grade IP – Value creation in broadband – ARPU deterioration


Screens that will go blank

• Mobile TV– Performance of mobile TV 2008 was

poor – Deloitte TMT report 2009• No new catalyst changing the trend.

Trends In Telecommunication Services

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