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Value Proposition:
Heterogeneous Networks Going Forward
J.Ravikumar
Network Hierarchy
UMTS
WiMax
GSM
GSM
Gateway
Network Hierarchy
IEEE802.1gAP
UMTS/
Beyond 4G GSM/GPRS WiMax
UE
Radio
Resource
IuResource
Mediaserver
connection
RadioResource
Iurelocate
Mediaserver
connection
Howmany
TS/speed
Ho_Request
Ho_Ack
Ho_Request
Ho_Ack
Ho_Request
Ho_Ack
Network Hierarchy
IEEE802.1gAP
UMTS/
Beyond 4G
GSM/GPRS WiMax
UE
N
)t(R
N
1Ho
∑=
N
)t(R
N
1Ho
∑=
=Latency
Throughput =
Time average (Speed at different
networks)
Security =
Time Average {High:Medium:Low
(different Network nodes)}
Network Hierarchy
VoiceonlyNetoworks–GSM/IS95/PCN
DataonlyNetwors–GPRS/EVDO
MultimediaNetworks–LTE/WCDMA/CDMA200
WirelessBroadbandNetworks
VoiceonlyNetoworks–GSM/IS95/PCN
DataonlyNetwors–GPRS/EVDO
MultimediaNetworks–WCDMA/CDMA200
BroadbandNetworks
Network of Networks
(Independent of generation)
Network Hierarchy
Network of Networks
VoiceServices
DataServices
MultimediaServices
BroadbandServices
Mobility Services
Fixed Services
Network Hierarchy
Developing Countries – Boost for Wireless
Networks
T&R wired communications
Bandwidth
Wireless
9.6kbps to 20Mbps commercial communications
Evolving Networks – Value Proposition
Fixed
service
Cellular
Service
Broadband
Service
Unified
Network
Subscriber Cost
ARPU
0
20
40
60
80
100
120
Fixed
service
Cellular
Service
Broadband
Service
Unified
Network
0.00
0.10
0.20
0.30
0.40
0.50
0.60
Subscriber Cost
ARPU
Ratio
Cost of roaming?
Subscriber Vs Operator
Challenges:
Common Network that can be
completely
scalable to adopt to all the services
External network that makes the
roaming facilitated with additional value
added services to justify the roaming.
QOS and Security issues are going to
stay….
Evolving Networks – Value Proposition
 Multimode network
2G/2.5G/3G/4G/…
 Multimode terminals
 Innovative tariff structure
 Easily exposed “Data quality”
 Infinite service creation
No single killer application
Many Challenges before Operator
Content rights
Content &
Application
creation
Aggregation Portal
Service
delivery
Network Terminal Customers
Voice
+
SMS
Network Terminal Customers
BW &
Value chain
Open ground
Uncontrolled
environment
Controlled Environment
Where are
the
compelling
application
s? Challenges in providing End to End
Network testing
QOS
Security
Charging
Shrinking Controlled environment
Content rights
Content &
Application
creation
Aggregation Portal
Service
delivery
Network Terminal Customers
Voice
+
SMS
Network Terminal Customers
Voice + Text Services
Voice + Video + Data + Multimedia contents
Narrow
BW
Pipeis
full
Wide BW
How to fill
up with
what
contents?
Voice will
continue to
dominate
Bandwidth Evolution
End to End Technology
NSS BSS 21 34 5 687 90# *
Voice,
VAS
(SMS,Simple
data)
End to End Technology
PS
CS
-CN
RNS
Voice,
VAS
(SMS,Simple
data)
Applications(E-commerce,Messaging,
Games,Telemedicine,..
Content Technologies (WML,XML,VoXML,…)
Location technologies (GPS,TOA,E-OTD,..)
Service Technologies
(SMS,WAP,i-mode,.NET,video…)
Challenge:
“Taking control of the
value chain”
Opportunities:
“Growth of Application
developers”
Device
technologies:
Different Micro
browsers and OS
Increasing Value chain
Infrastructure Evolution
COST Vs QOSCOST Vs QOS
Delay
Conversational
Class
Streaming
Class
Interactive
Class
Background
Class
InvestmentCosts
Churn
Compromise
Charging involves
Radio access time
QOS
Data volume
Bandwidth usage
Contents/Application used
Level of security
External network access
On demand user provisioning
Add/del services as and when required
Customer
Contents
2G/2.5G/3G/4G NW
ISP
Application servers
MVNO services
Strategy:
Careful upgradation /
selection
of the OSS that is scalable and
support multiple technology
Billing/provisioning challenges
Billing
CDRs from IP domain (multiple networks)
CDRs from CS domain (multiple networks)
Air Usage + QOS (Bandwidth) + Contents (multiple networks)
Fraud Management – Volume Based??
CRM – Segmentation – Content usage based??
Provisioning – Self provisioning???
OSS evolutionOSS evolution
Security IssuesSecurity Issues
 Network access security over different networks involved (I)Network access security over different networks involved (I)
 Secure access to services over multiple networksSecure access to services over multiple networks
 Protect against attacks on the (radio) access linkProtect against attacks on the (radio) access link
 Network domain security (II)Network domain security (II)
 Securely exchange signalling data in the provider domainSecurely exchange signalling data in the provider domain
 Protect against attacks on the backbone networkProtect against attacks on the backbone network
 User domain security (III)User domain security (III)
 Secure access to mobile stationsSecure access to mobile stations
 Application domain security (IV)Application domain security (IV)
 Enable applications in the user and in the provider domain toEnable applications in the user and in the provider domain to
securely exchange messagessecurely exchange messages
 Visibility and configurability of securityVisibility and configurability of security
 Enable the user to inform himself whether a security feature is inEnable the user to inform himself whether a security feature is in
operation or notoperation or not
 Whether the use and provision of services should depend on theWhether the use and provision of services should depend on the
security feature.security feature.
Efficient network utilisation
Optimised infrastructure – Optimised CAPEX
Continuous services
Reduced Churn
Transparent QOS
Increased customer base
Converged revenue
Revenues from external service providers
(MVNOs)
Revenues from external networks
Opportunities
“Fifteen Years is the average period of probation, and during
that time the INVENTOR, the PROMOTER, and the INVESTOR,
who see a great future, generally lose their shirts…. This is
why the wise capitalist keeps out of exploiting new
inventions and comes in only when the public is ready for
mass demand”
Owen D. Young, a GE executive who carried out the purchase
of American Marconi
“If the INVENTOR, the PROMOTER, and the INVESTOR understand
the mass market from different perspective, keeping cost,
complexity and commercialisation in mind from
conceptualisation stage to commercialisation stage will
make a huge traction for the capitalists throughout the
period of probation”
J.Ravikumar
Value Proposition
End User Perspective
Operator Perspective
Vendor/Technology Perspective
 “I want to use the applications, not the technology”
Expectations…
 User friendly and “worth paying” services
 Service provisioning on demand
 Excellent QOS
 Excellent customer support
 High level of data security
 Transparent charging
 Seamless roaming
End User Perspective
Profit, Cash flow – Improving Investor Relations
Increasing MOU and ARPU
Taking control of the end to end network
Customer acquisition and Retention
Network Performance
QOS
Network Security
Competitive Differentiation
How to Win?
More Capacity from present Investment
Technology Migration and Convergence
Consolidation – Acquisition and Merger
Complying with Regulator
Operator Perspective
Politics
Country Regulatory Standards
Telecom Infrastructure and tele-density demands
Economic situation and growth status
Customer Demands
Revenue strategies
Deployment strategies
Growth Strategies
Technology Adoption
Managing
Research Development Costs
Engineering and Production Costs
Marketing Costs
Staying on top of Competition
Investor Relations
Profit
Positive Cash flow
Vendor Perspective
End User
Operator
Vendor
Who Drives whom?
Research
×
End User
Operator
Vendor
Who Drives whom?
Research
√
Moving Forward…Moving Forward…
Moving Forward…Moving Forward…
Innovative Multimedia and Data services
ARPU

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Heterogenous Networks

  • 1. Value Proposition: Heterogeneous Networks Going Forward J.Ravikumar
  • 3. Network Hierarchy IEEE802.1gAP UMTS/ Beyond 4G GSM/GPRS WiMax UE Radio Resource IuResource Mediaserver connection RadioResource Iurelocate Mediaserver connection Howmany TS/speed Ho_Request Ho_Ack Ho_Request Ho_Ack Ho_Request Ho_Ack
  • 4. Network Hierarchy IEEE802.1gAP UMTS/ Beyond 4G GSM/GPRS WiMax UE N )t(R N 1Ho ∑= N )t(R N 1Ho ∑= =Latency Throughput = Time average (Speed at different networks) Security = Time Average {High:Medium:Low (different Network nodes)}
  • 8. Developing Countries – Boost for Wireless Networks T&R wired communications Bandwidth Wireless 9.6kbps to 20Mbps commercial communications
  • 9. Evolving Networks – Value Proposition Fixed service Cellular Service Broadband Service Unified Network Subscriber Cost ARPU
  • 10. 0 20 40 60 80 100 120 Fixed service Cellular Service Broadband Service Unified Network 0.00 0.10 0.20 0.30 0.40 0.50 0.60 Subscriber Cost ARPU Ratio Cost of roaming? Subscriber Vs Operator Challenges: Common Network that can be completely scalable to adopt to all the services External network that makes the roaming facilitated with additional value added services to justify the roaming. QOS and Security issues are going to stay…. Evolving Networks – Value Proposition
  • 11.  Multimode network 2G/2.5G/3G/4G/…  Multimode terminals  Innovative tariff structure  Easily exposed “Data quality”  Infinite service creation No single killer application Many Challenges before Operator
  • 12. Content rights Content & Application creation Aggregation Portal Service delivery Network Terminal Customers Voice + SMS Network Terminal Customers BW & Value chain Open ground Uncontrolled environment Controlled Environment Where are the compelling application s? Challenges in providing End to End Network testing QOS Security Charging Shrinking Controlled environment
  • 13. Content rights Content & Application creation Aggregation Portal Service delivery Network Terminal Customers Voice + SMS Network Terminal Customers Voice + Text Services Voice + Video + Data + Multimedia contents Narrow BW Pipeis full Wide BW How to fill up with what contents? Voice will continue to dominate Bandwidth Evolution
  • 14. End to End Technology NSS BSS 21 34 5 687 90# * Voice, VAS (SMS,Simple data) End to End Technology PS CS -CN RNS Voice, VAS (SMS,Simple data) Applications(E-commerce,Messaging, Games,Telemedicine,.. Content Technologies (WML,XML,VoXML,…) Location technologies (GPS,TOA,E-OTD,..) Service Technologies (SMS,WAP,i-mode,.NET,video…) Challenge: “Taking control of the value chain” Opportunities: “Growth of Application developers” Device technologies: Different Micro browsers and OS Increasing Value chain Infrastructure Evolution
  • 15. COST Vs QOSCOST Vs QOS Delay Conversational Class Streaming Class Interactive Class Background Class InvestmentCosts Churn Compromise
  • 16. Charging involves Radio access time QOS Data volume Bandwidth usage Contents/Application used Level of security External network access On demand user provisioning Add/del services as and when required Customer Contents 2G/2.5G/3G/4G NW ISP Application servers MVNO services Strategy: Careful upgradation / selection of the OSS that is scalable and support multiple technology Billing/provisioning challenges
  • 17. Billing CDRs from IP domain (multiple networks) CDRs from CS domain (multiple networks) Air Usage + QOS (Bandwidth) + Contents (multiple networks) Fraud Management – Volume Based?? CRM – Segmentation – Content usage based?? Provisioning – Self provisioning??? OSS evolutionOSS evolution
  • 18. Security IssuesSecurity Issues  Network access security over different networks involved (I)Network access security over different networks involved (I)  Secure access to services over multiple networksSecure access to services over multiple networks  Protect against attacks on the (radio) access linkProtect against attacks on the (radio) access link  Network domain security (II)Network domain security (II)  Securely exchange signalling data in the provider domainSecurely exchange signalling data in the provider domain  Protect against attacks on the backbone networkProtect against attacks on the backbone network  User domain security (III)User domain security (III)  Secure access to mobile stationsSecure access to mobile stations  Application domain security (IV)Application domain security (IV)  Enable applications in the user and in the provider domain toEnable applications in the user and in the provider domain to securely exchange messagessecurely exchange messages  Visibility and configurability of securityVisibility and configurability of security  Enable the user to inform himself whether a security feature is inEnable the user to inform himself whether a security feature is in operation or notoperation or not  Whether the use and provision of services should depend on theWhether the use and provision of services should depend on the security feature.security feature.
  • 19. Efficient network utilisation Optimised infrastructure – Optimised CAPEX Continuous services Reduced Churn Transparent QOS Increased customer base Converged revenue Revenues from external service providers (MVNOs) Revenues from external networks Opportunities
  • 20. “Fifteen Years is the average period of probation, and during that time the INVENTOR, the PROMOTER, and the INVESTOR, who see a great future, generally lose their shirts…. This is why the wise capitalist keeps out of exploiting new inventions and comes in only when the public is ready for mass demand” Owen D. Young, a GE executive who carried out the purchase of American Marconi
  • 21. “If the INVENTOR, the PROMOTER, and the INVESTOR understand the mass market from different perspective, keeping cost, complexity and commercialisation in mind from conceptualisation stage to commercialisation stage will make a huge traction for the capitalists throughout the period of probation” J.Ravikumar
  • 22. Value Proposition End User Perspective Operator Perspective Vendor/Technology Perspective
  • 23.  “I want to use the applications, not the technology” Expectations…  User friendly and “worth paying” services  Service provisioning on demand  Excellent QOS  Excellent customer support  High level of data security  Transparent charging  Seamless roaming End User Perspective
  • 24. Profit, Cash flow – Improving Investor Relations Increasing MOU and ARPU Taking control of the end to end network Customer acquisition and Retention Network Performance QOS Network Security Competitive Differentiation How to Win? More Capacity from present Investment Technology Migration and Convergence Consolidation – Acquisition and Merger Complying with Regulator Operator Perspective
  • 25. Politics Country Regulatory Standards Telecom Infrastructure and tele-density demands Economic situation and growth status Customer Demands Revenue strategies Deployment strategies Growth Strategies Technology Adoption
  • 26. Managing Research Development Costs Engineering and Production Costs Marketing Costs Staying on top of Competition Investor Relations Profit Positive Cash flow Vendor Perspective
  • 30. Moving Forward…Moving Forward… Innovative Multimedia and Data services ARPU

Notas del editor

  1. Voice will continue to dominate in GSM market. 3G networks should be planned in a way that it should be used as a “ Voice traffic relief ” in a CONGESTED GSM environment in the initial stage till the killer applications are identified L everage on 3G network in providing “ Rich voice ” for the dual mode customers.
  2. Voice will continue to dominate in GSM market. 3G networks should be planned in a way that it should be used as a “ Voice traffic relief ” in a CONGESTED GSM environment in the initial stage till the killer applications are identified L everage on 3G network in providing “ Rich voice ” for the dual mode customers.
  3. Voice will continue to dominate in GSM market. 3G networks should be planned in a way that it should be used as a “ Voice traffic relief ” in a CONGESTED GSM environment in the initial stage till the killer applications are identified L everage on 3G network in providing “ Rich voice ” for the dual mode customers.
  4. Voice will continue to dominate in GSM market. 3G networks should be planned in a way that it should be used as a “ Voice traffic relief ” in a CONGESTED GSM environment in the initial stage till the killer applications are identified L everage on 3G network in providing “ Rich voice ” for the dual mode customers.
  5. Voice will continue to dominate in GSM market. 3G networks should be planned in a way that it should be used as a “ Voice traffic relief ” in a CONGESTED GSM environment in the initial stage till the killer applications are identified L everage on 3G network in providing “ Rich voice ” for the dual mode customers.
  6. Voice will continue to dominate in GSM market. 3G networks should be planned in a way that it should be used as a “ Voice traffic relief ” in a CONGESTED GSM environment in the initial stage till the killer applications are identified L everage on 3G network in providing “ Rich voice ” for the dual mode customers.
  7. Voice will continue to dominate in GSM market. 3G networks should be planned in a way that it should be used as a “ Voice traffic relief ” in a CONGESTED GSM environment in the initial stage till the killer applications are identified L everage on 3G network in providing “ Rich voice ” for the dual mode customers.
  8. Voice will continue to dominate in GSM market. 3G networks should be planned in a way that it should be used as a “ Voice traffic relief ” in a CONGESTED GSM environment in the initial stage till the killer applications are identified L everage on 3G network in providing “ Rich voice ” for the dual mode customers.
  9. Voice will continue to dominate in GSM market. 3G networks should be planned in a way that it should be used as a “ Voice traffic relief ” in a CONGESTED GSM environment in the initial stage till the killer applications are identified L everage on 3G network in providing “ Rich voice ” for the dual mode customers.
  10. Voice will continue to dominate in GSM market. 3G networks should be planned in a way that it should be used as a “ Voice traffic relief ” in a CONGESTED GSM environment in the initial stage till the killer applications are identified L everage on 3G network in providing “ Rich voice ” for the dual mode customers. Roaming cost for the operator and the subscriber might become a hindrance in introducing Multi-network roaming Challenges: Common Network that can be completely scalable to adopt to all the services External network that makes the roaming facilitated with additional value added services to justify the roaming. QOS and Security issues are going to stay….
  11. GSM operators so far having an end to end control over their network. Moving forward with data services, the value chain is going out of control from the operator as the majority of the value chain comes from application and contents from external networks. Challenge here is how to take control of the “ Value chain ” that lies in the open ground. Customers will not only belong to the operators, they may sign up with content and application providers.
  12. Voice will continue to dominate in GSM market. 3G networks should be planned in a way that it should be used as a “ Voice traffic relief ” in a CONGESTED GSM environment in the initial stage till the killer applications are identified L everage on 3G network in providing “ Rich voice ” for the dual mode customers.
  13. Challenge is how take over this uncontrolled ladder to go up the Value chain???? Opportunities for the growth of Application developers in Malaysia. How to get the lion share out of Microsoft,AOL etc after having heavily invested in “ Service delivery Network ” …. PS – Packet switched CS – Circuit switched Different microbrowsers that can be Java VM, Ericsson proprietary, Nokia Proprietary, etc.. Different OS that can be EPOC,Palm,Symbian,etc..
  14. Many changes will be required in the current billing,mediation,provisioning and NMS systems. Rating engine will be complicated. Operator should look for a very flexible rating engine as the tariff structure will be varying heavily.
  15. EDGE can offer 384Kbps at 200KHz GSM bandwidth Higher order modulation provides spectral efficiency in terms of bits/Hz High Speed Downlink Packet Access Less robust to Noise, Interference, any other channel impairments An innovative link adaptation techniques are required. Use higher order modulation during better channel conditions with higher C/I or close to the base stations. Use lower order modulation while the user is in the cell edge or experiencing lower C/I… Robust and faster error detection and correction mechaniosms are required --- faster ARQ Fast cell selection, fast scheduling,faster link adaptation will help improve the NG technologies. Multiple antennas at the transmitter and receiver can improve the data rates I strongly believe spectrum efficient technologies will be most successful in the coming years.
  16. EDGE can offer 384Kbps at 200KHz GSM bandwidth Higher order modulation provides spectral efficiency in terms of bits/Hz High Speed Downlink Packet Access Less robust to Noise, Interference, any other channel impairments An innovative link adaptation techniques are required. Use higher order modulation during better channel conditions with higher C/I or close to the base stations. Use lower order modulation while the user is in the cell edge or experiencing lower C/I… Robust and faster error detection and correction mechaniosms are required --- faster ARQ Fast cell selection, fast scheduling,faster link adaptation will help improve the NG technologies. Multiple antennas at the transmitter and receiver can improve the data rates I strongly believe spectrum efficient technologies will be most successful in the coming years.