The stakes for capturing new
business revenue from broadbandhungry users is strong. So much so, that it is easy to think of the new telecommunications competitive landscape as a wrestling match with at least four major contenders that are competing for subscriber spending. In one corner: the now-consolidated
RBOCs delivering services such as
traditional and IP telephony, consumer and business broadband, and
IPTV (News - Alert)
; in another, cable MSOs, providing TV distribution, IP telephony and broadband services. In the opposite corner: mobile network operators providing services including voice, messaging and emerging mobile broadband. Finally, there are the newest entrants and driving force in the space, the Internet/Web 2.0 portal providers and content and media providers.All of these players aim to meet subscriber demands in a new and evolving communication culture, which is driven by many things but the community interaction on the Internet is at the core. Increasingly, users expect the best of both worlds: the proven quality and interoperability of telecom with the quick and innovative
development of the Internet. In short, they expect to be able to share everyday life experiences, anywhere, anytime, and on any device.
IP and Horizontal Network Layers are Changing the Game
As operators roll out IP-based services, success is largely dependent on how well the end-user experience fulfills or exceeds subscribers’ expectations. Services need to be deployed rapidly. Security, interoperability and ease of use are absolute necessities.
But introducing paid-for and high-quality services and ensuring service interoperability in the network is extremely complicated. For example, IP telephony is largely interoperable when users on different operators connect via a PSTN call. In contrast, when calling between a service such as
Skype (News - Alert)
and cellular push-to-talk services, the call must go through the PSTN.
On the other hand, the situation within enterprises is remarkably different. Due to the controlled nature of the environment and applications and the relative ease with which cabling can be deployed, high speed connections to every used desktop is a reality.This has enabled the development and use of high-bandwidth collaboration and communications services. A notable difference from the network operator environments is the lack of a value chain discussion inside the enterprise due to the dominating role of IT departments who control both access and applications.This level of integration and flexibility has eluded the network operator markets where a vast majority of focus has been on a high quality access network. Some early implementations of applications by the network operators are just emerging.
Network operators can do more than provide access.They can climb the value chain and take a more active role in providing a superior service delivery interface for internal and external applications. Such a service delivery layer can provide, among other benefits, awareness of quality, policy, security and charging requirements. It can manage multiple devices under one user ID and provide a high-trust environment that keeps users’ interests like privacy in mind. Achieving this new service delivery model is critical for providing users with more attractive, convenient services that work, and that can advance us from today’s silos of networks and services to the digital era of all-media communications with ease of use, convenience, control, efficiency and fun.
While there are doubters, within our industry we remain steadfast in the belief that IMS is a key cornerstone for the service delivery architecture which will combine the best of the telecom and Internet worlds, enabling a new business paradigm for the service delivery model.
Emerging IMS Advantages
For each of the four types of contenders, mega-RBOCs, cable operators, mobile carriers, and Internet/application/ media providers, IMS is relevant in different ways. Each player is approaching IMS from a unique position of strength and attempting to maximize that strength to secure a strategic advantage.
Several key themes have emerged.
The all-mobile experience. Operators are looking to combine existing circuit-switched voice and SMS services with mobile multimedia and broadband services, including video telephony and active phone book with contacts, availability/presence, and personal dynamic invitations and interests. By implementing such services on an IMS-based Service Delivery Architecture, future mobile services can be developed as an extension and evolution of these capabilities with relative ease.
The connected home and office. Another IMS motivator is triple-play services based on cost, convenience and ease-ofuse for the home or office environment.These services are typically based on VoIP/IP-Centrex, with a seamlesslyintegrated mobile device offered either as the primary device for the service, or integrated with the offering as part of a multi-device “extension.”
In the home, the phone also functions as a location-free remote for TV and Internet services and may also integrate the home environment and provide functionality across three screens: TV, PC and mobile. In the workplace, IMS and service delivery architectures help provide hosted unified business communications, which help to extend business services and applications available in the office to mobile phones.
A commonly-used term is fixed-mobile convergence, which refers to solutions that allow multi-mode mobile devices to gain network access over multiple types of radio, say HSPAoutdoors and
WiFi (News - Alert)
indoors.There is strong competitive and new-entrant focus in this area, but there are also mass-market challenges in regards to device availability, battery life on such devices, business models, total cost of solution, and service differentiation. Other solutions for fixed-mobile convergence and mass-market service in the short term include services where users can enjoy multiple devices under one subscriber ID or phone number.
Network evolution and modernization. Particularly relevant for RBOCs and mobile operators is the need to transform the Intelligent Network architecture, decommission the PSTN and circuit-switched networks, and transition to communications over IP.
New Business Models for the IMS Ecosystem. Blended multimedia and communications services are starting to happen, and so is the journey to IN and circuit-switched network modernization. Perhaps an even more significant advancement will be when network operators turn their own service and application offerings into one of several service domains that will become available in managed, efficient and controlled ways over their networks. In other words, for network operators and the IT, media and communications industry to drive a win-win service delivery interface and business model that allow for free-flowing collaboration between applications and services innovation, as well as professional and user-friendly service delivery and device management.
This scenario would benefit end users and attract addressable revenues from advertising and transaction into the wrestling ground. Some traction is already being made outside of the U.S., where mobile operators have opened up to Internet
brands and integrated the Internet portal with mobile services. As an industry, we can do more to create opportunities for
collaboration between network and access service providers and leading application, content and business service domains.
In today’s IP, IMS and service delivery world, the dynamics are strong for the four contenders vying for subscriber dollars. If
operators and vendors can combine the advantages of the quick-moving application development industry and the
standardized telecom industry, a new IMS ecosystem will emerge that will accelerate creation of innovative new, interoperable applications and services, drive user demand, and create revenue opportunities for all types of operators for many
years to come.
Arun Bhikshesvaran is Vice President & General Manager of Strategy & Market Development within the North American Market Unit of
Ericsson (News - Alert)
Inc. He has more than 14 years of experience in the wireless communications industry, serving a variety of roles including systems solutions and integration, field engineering, R&D and global product marketing.
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