Information
and Communication Networks
Information
and Communication Networks
© Siemens AG 2003
New Horizons for the Introduction of
SIP-Based Applications
10/20/2003
page 3
Agenda
!
Introduction
!
Changing Market Conditions
!
Service Categories and Applications
!
Conferencing Services
!
Entertainment Services
!
Business Services
10/20/2003
page 4
Cutting costs is not going to save
the Network Providers industry
Revenue
streams
?
OpEx
CapEx
Carriers need to find growth markets and
establish new business models
Carriers need to find growth markets and
establish new business models
Market Share/Price Decline:
-68%/-62% in the UK
International
Long Distance
Market Share/Price Decline:
-47%/-49% in the UK
National Long
Distance
" Introduction " Changing Market Conditions " Service Categories and Applications " Conclusions10/20/2003 page 5
0
10
20
30
40
50
60
70
80
90
100
1Q/02 2Q/02 3Q/02 4Q/02
Data Volume
Voice Volume
Voice
Revenue
Data Revenue
Source: Incumbent Carrier
" Introduction " Changing Market Conditions " Service Categories and Applications " Conclusions
Key dilemma – Broadband data
10/20/2003
page 6
In the NGN network
Services are the key differentiator
QoS IP Core Network
PSTN ISDN
GSM
UMTS ADSL W-LAN VoIP MAIL IM WEB
O P E R A T O R Services/ Service Provider " Introduction " Changing Market Conditions " Service Categories and Applications " Conclusions
...
O P E R A T O R O P E R A T O R Transport...
AccessVertical Integration vs.
Horizontal Layer
Unbundling
Services Offerings are not longer limited to
Network Operators
10/20/2003
page 7
Changing Market Conditions require new
Business Models
Open Ecosystem or Open Network Model
Content Provider Operator End User Content
Per minute, Per volume, Per content, etc. Charge Charge " Introduction " Changing Market Conditions " Service Categories and Applications " Conclusions
Traditional Business Models will not work
under these new conditions
Traditional Business Models will not work
under these new conditions
10/20/2003
page 8
It’s not bandwidth but services that count…
Revenue per unit of traffic in Euro per megabyte in 2002
0.02
Internet Long distance Local call SMS0.04
0.12
781
Assumptions:! One SMS equals 128 bytes ! SMS costs EUR 0.10 Hi " Introduction " Changing Market Conditions " Service Categories and Applications " Conclusions
10/20/2003 page 9 Service Categories Enabling Services Community & Messaging Services Presence, SMS GW, Charging, Directory Services, ENUM, Push GWs Kids, Fun, and Entertainment Services Presence, Charging, Content Management, Micropayment, QoS Control Ring Back Music, Multimedia@home (Video Telephony, Audio/Video/Gaming on Demand) Presence,Charging, Security, Directory Services, ENUM, QoS Control Business & Communication Management Services IP Centrex Business Connection Office Integration EasyConnected Perfect4U/Me Call Waiting Internet
Click to Dial
SURPASS Applications
Service Categories, Applications, Enabling Services
Push-to-Talk, Chat, Instant Messaging (IM), SMS to IM, Push Services, Unified Messaging (UM) End User Applications " Introduction " Changing Market Conditions " Service Categories and Applications " Conclusions
10/20/2003
page 10
Enabling Services
SURPASS Applications
Service Categories, Applications, Enabling Services
Conferencing and MM Telephony Services Presence, Charging, Conferencing Bridge, Directory Services, ENUM, QoS Contol
Video Telephony, Video Conferencing, Audio Conferencing, Online Conferencing Broadband Telephony Services Presence, Flatrate/Prepaid Charging, Directory Services, ENUM Teenline,
Voice over BroadBand Prepaid Calling Card
End User Applications Service Categories " Introduction " Changing Market Conditions " Service Categories and Applications " Conclusions
10/20/2003
page 11
Service Category: Entertainment Services
Multimedia@home - Use Cases
PC to Phone
“Family oriented Communication”
Martha - 31,
and Daughter Jaymie - 16
Mr. and Mrs. Robinson - 65 Business Communication “Improved Customer Relationship” Mr. Mark Johnson – 45 Investor Ms. Stella Ruiz – 33 Business Consultant Grace - 27 Jason - 29 " Introduction " Changing Market Conditions " Service Categories and Applications " Conclusions
Multimedia@home
addresses the need for
more quality in life for different target groups
Multimedia@home
addresses the need for
more quality in life for different target groups
Phone – Phone
“I can’t live without you”
10/20/2003
page 12
Service Category: Entertainment Services
Multimedia@home - Description
Why can Video Telephony now be successful?
" Users are ready
" Major Market Push for MMS – UMTS to come
" PC penetration is very high
" Broadband penetration is high
" End devices (Set-top boxes, Hardphones, softphones) are inexpensive
Factors for success:
" Reach the critical mass by “big bang”/building public momentum
" Bundle with value added applications
" Eliminate the users fear
" High quality experience
" Right price
The Right Marketing Mix!
" Introduction " Changing Market Conditions " Service Categories and Applications " Conclusions
10/20/2003
page 13
Service Category: Conferencing Services
A New Way of Communication
" Introduction " Changing Market Conditions " Service Categories and Applications " Conclusions
The need for conferencing increased dramatically
after Sept. 11 and SARS
The need for conferencing increased dramatically
after Sept. 11 and SARS
Source: Derived from worldwide numbers from IDC and Raymond James and Associates (RJ&A), 2002
Market:
" Wainhouse research: a year after September 11, Conferencing: 64% very important, a year earlier: 44%
" According to IDC and RJ&A, the conferencing services market growth from $3.5’’ in 2001 to $13.6’’ in 2005 or CAGR 41%
Conferencing Market World
0 5 10 15 20 2002 2003 2004 2005 2006 2007 years re v e n u e in b illio n s $
Audio Conferencing Video Conferencing Online Webcasting Online Conferencing
10/20/2003
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Service Category: Conferencing Services
Web-based Presence Enabled Conferencing
" Visual presence-status icons
" All attendees can see, who is present and who is talking
" Can share presentations and Instant Messages
" Introduction " Changing Market Conditions " Service Categories and Applications " Conclusions
10/20/2003
page 15
Did you know...
1870
1970
2000
570
12,140
41,020
Worldwide gross domestic product in billions of 1990 international dollars (estimated)
Transaction
costs
Other
… that transaction costs make up over half of the world gross domestic product?
" Introduction " Changing Market Conditions " Service Categories and Applications " Conclusions
10/20/2003
page 16
Service Category: Business Services
OpenScape Communication
Presence-Based
Communications
Multi-Resource
Collaboration
Open Application Architecture
Personal Productivity Application Personal Productivity Application Workgroup Collaboration Application Workgroup Collaboration Application Communication Broker Communication Broker " Introduction " Changing Market Conditions " Service Categories and Applications " Conclusions
10/20/2003
page 17
Service Category: Business Services
OpenScape Personal Communication Portal
Buddy List showing Presence Status by Media
Personal Collaboration Session Menu
Intuitive Interface for Effective Contact !
Intuitive Interface for Effective Contact !
" Introduction " Changing Market Conditions " Service Categories and Applications " Conclusions
10/20/2003
page 18
Conclusions
!
Network Providers need to move from providing network
connection to offering value added services which provide
for higher profits
!
Shift towards Open Ecosystem with content services
!
