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The value chain and added-value networks

The value chain and added-value networks. Phone business profitability: Operators sell services, not transmission. Compare the price SMS vs. voice in term of transmitted bytes !!!. 2. PERSON-to-MACHINE. IVR. 3. NETWORK. Prepaid / Postpaid VPN 800-900 ….

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The value chain and added-value networks

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  1. The value chain and added-value networks

  2. Phone business profitability:Operators sell services, not transmission Compare the price SMS vs. voice in term of transmitted bytes !!! 2. PERSON-to-MACHINE IVR 3. NETWORK Prepaid / Postpaid VPN 800-900 … Distribution of most terminals (pre-configuration) • PERSON-to-PERSON Voice call Voice mail SMS … Services are performed in the network, coupling services <=> network

  3. Phone business profitability:The operator controls the value chain content Network with Services terminal Terminals distributed by operators Voice provided by the user

  4. Internet and a new value chain:The operators controls transmission • Internet creates a open and universal transmission layer: IP • Services and Transmission are decoupled • Person-to-Machine communication explodes content Portal services Network Line Network IP terminal

  5. Internet and a new value chain:The services are externalized out of the operator’s network Portal Content providers 2. PERSON-to-MACHINE 3. NETWORK Directory Prepaid 1. PERSON-to-PERSON E-mail Instant Messaging Phone over IP Video over IP Most Services are performed out of the network, coupling services <=> terminal

  6. Terminal-based services:Phone services / Pre-paid offer

  7. Terminal-based services:Phone services / A Recent E-Mailing Ad Campaign From: "Delwyn Kayes" <dkayes@callserve.com To: <herveamosse@hotmail.com Subject: Les nouvelles de Microsoft - MSN Messenger... Date: Fri, 8 Mar 2002 04:22:56 -0000 Cher client Pourquoi payer les tarifs exhorbitants de France Telecom pour vos appels locaux et internationaux (téléphones fixes et portables) quand il est possible d'économiser une fortune avec le Téléphone Internet d' MSN Messenger? Utilisez votre PC pour apeler votre famille et vos amis. Il ne vous coûtera que 0,05 Euros la minute pour appeler le Royaume Uni, les Etats Unis d'Amerique, le Canada, l'Allemagne, l'Espagne, la Belgique, la Hollande, ou partout en France si vous utilisez votre Téléphone Internet - avec France Telecom, le tarif serait à 0,23 Euro par minute! Si vous signez maintenant, vous recevrez le fantastique 'New Starter Pack' COMPLETEMENT GRATUIT! Ce pack contient tout ce qu'il vous faut pour démarrer: * Un casque-micro multimédia GRATUIT (d'une valeur d'environ 16 Euro) * ou 20% de votre temps d'appels GRATUIT * et un livret d'instructions GRATUIT Et comme vous avez déjà le logiciel du Téléphone Internet d' MSN Messenger prêt à l'emploi depuis le 22/12/2001 14:14:19, vous pouvez dès maintenant vous préparer à téléphoner à vos parents et amis pour moins cher. Utilisez le Net pour économiser et votre PC pour téléphoner dans le monde entier dès maintenant. Pour découvrir nos tarifs intéressants vers les portables et autres destinations, cliquez sur le lien suivant www.callserve.net/homepage.asp et selectionnez "our low rates". Bavardez au téléphone! Delwyn Kayes

  8. Terminal-based services:Payment

  9. Terminal-based services:Network services … without the network! network network Raw Transmission Raw Transmission

  10. A proposal for the Internet futurePutting more value in the network

  11. Developing the added-value of the networks 2. PERSON-to-MACHINE 3. NETWORK 1. PERSON-to-PERSON

  12. A Vision for the future –smarter terminals connected by smarter networks ++ terminals Sites, portalsin a tough competition (Operators but mainly Medias: MSN, Yahoo, AOL, Wanadoo, Tiscali…) 20+ proxies to be inserted in series in the network to add value to the exchanges crossing the network Increase the value in the operator’s « reserved domain », the « line » itself

  13. What is a proxy? • A proxy is an Intermediate node in the data flow • An IP network is made of • Transmission • Nodes: • routers (to orient the flow) • proxies (to work on the flow) • Examples of proxies • Cache, firewall, network anti-virus, WAP gateway…

  14. Inventing the proxy platform Appli 1 … … … … Appli 2 • Nextenso Proxy Platform designed to develop and run proxies • Pipe-line architecture specialized to work on the flow • Applications are proxylets to be plugged • Full scalability of the software cluster • Fault-Tolerant by design

  15. Nextenso Proxy Platform3 key advantages • 1. Coherent Administration, for the lowest OPEX • Just one platform to manage several proxies • 2. Open Architecture, easily expandable to new services • Toolkit to develop new proxylets to be plugged (by any development team) • Architecture compliant with IETF standard • 3. High-Performance, for end-users and CAPEX/OPEX • The Operator must reach the best response time for end-users • Impressive performance permitted from the specialization of the platform (e.g.,Nx WAP gateway vs. traditional WAP gateways) • Much less hardware needed for the same traffic

  16. The operator’s bunch of services for its subscribers Operator’s applications « base » Partnership « kiosk » Any sites « connectivity » Proxies in actione.g.1, Dynamic re-branding Content providers as partners Operator's Logo Dynamic modification of the screen pages to rebrand or co-brand the content

  17. New handsets support color Wap sites are in black & white (B&W) B&W services are not acceptable on color terminal (see the TV syndrom and the colorization of old movies) Proxies in actione.g.2, Dynamic colorization Black & white pages Dynamic colorization of the screen pages according to defined operator’s rules

  18. Each terminal has specific capabilities E.g., document format Proxies in actione.g.3, Terminal-based content filtering The proxy adjusts the pages and the documents (such as images type or size) according to terminal constraints

  19. Operators can provide a single sign-on for the access to the on-line services Ease of use for the subscribers (see phone keyboards) Reinforce the role of the operator in the service delivery Protecting the customer database with “blind identifiers” Proxies in actione.g.4, Operator-level authentication Operator’s Authentication server The proxy authenticates. Then, it takes in charge the authentication with the applications of the partners

  20. MMS is not SMS MMS is just an e-mail modified with specific protocols (… not compatible with Microsoft Outlook) A proposal: supporting MMS with proxies and a standard e-mail server 1. Protocols translation 2. Charging 3. Store the mails 4. Support WAP traffic for MMS Proxies in actione.g.5, MMS, simpler and much cheaper Prepaid-postpaid systems     Nx MMS charging proxy Nx MMS proxy relay Fault-tolerant mail server Nx WAP gateway MMS protocols E-mail protocols MMS protocols

  21. The system computes a more accurate location using several BTSs. The phone gets the radio parameters related to the surrounding BTSs (signal power, timing advance) From this information the location is computed: “triangulation” Proxies in action e.g.6, Radio-based Location Calculator Location Calculator Radio parameters Enhanced Data flow Data flow

  22. Nextenso Proxy Platform pipe-line architectureis optimized for the implementation of proxies Proxylet Proxylet Proxylet Proxylet Proxylet Proxylet WAP Gateway Push Proxy … Proxylet Engine Proxylet Engine Protocol Mapping http http WAP WAP SMS SMS Administration Voice Voice … … • The specialization of the platform permits • More efficiency with a pipe-line platform than with a general-purpose layered platform • More value from the platform itself reducing the complexity of each proxy (stability, creation of a proxy for a new business opportunity)

  23. Proxies per domain • Request Enhancement • Location proxy • Profile syndication • … € • Content Enhancement • Re-branding • Colorization • Adaptation to the handset • … • User • Authentication • Blind Identifier • … • Payment • Charging proxy • … Services sites • Protocols • WAP gateway, WAP2.0 (I-mode) • MMS proxy relay • Push proxy • Wireless Optimizer • … • Protocols • IBM Lotus Domino • Microsoft Exchange • …

  24. Summary • Terminals are become more and more intelligent. Microsoft & Nokia contribute to this evolution – and this is a good thing. • However, the danger is that operators' networks may be reduced to being "dumb transmission systems" as a result of this increased terminal intelligence • So, it is necessary to reinforce the business of operators by balancing the development of intelligence in terminals by adding value to the network -- and better serving the end-users. • Alcatel's latest lines of telecommunication systems embed innovative Internet functions designed to increase added-value services and generate more revenue from the network infrastructure.

  25. Be Ready Now for Whatever Comes Next

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