Transcript KPN CANTO presentation(June 2005)

KPN the Royal Dutch telecom company
at
CANTO June 19 through June 23rd
Feddo Hazewindus
Vice President KPN INS Inc
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Holland… small country, impressive achievements
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Leading innovator through the ages
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World renownend engineering, claiming land over water
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One of the world’s largest sea ports
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First commercial aviatior in the world
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Holland… a global oriented monarchy
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Crowned and renowned
KPN Highlights
• Operations in Holland, Germany and Belgium
• 17 million mobile & 7 million fixed subscribers, 1.5 million ADSL customers
• Mobile brands are KPN mobile, E-Plus and Base.
• 31,000 employees
• Revenues in 2004 of € 11,819 mn
• Profit after tax 2004 € 1,511 mn
• Free cash flow 2004 of € 2,271 mn
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Regional Presence: our locations
North & Central America
Latin America &
the Caribbean
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Western Europe
Head Quarters
Eastern Europe
Africa
Middle East
Asia
Asia
Mobile market developments
Trends:
• Decreasing Mobile Termination Rates (MTR) leads to lower ARPU for both fixed and mobile
operators.
• Emergence of preferred roaming.
• End user rates decrease due to intense competition, e.g. monthly flat fee packages.
• IP-based services form threat to traditional circuit switched services.
• Mobile call volumes continue to grow, fixed volumes stabilize or even decrease.
• Emergence of Value Added Services, e.g. 3G.
• Quality orientation to increase end user satisfaction.
• Integration of voice and internet/data.
End user ARPU can be protected and increased by:
• Value added services to develop new revenue sources:
– Mobile data, e.g. 3G and SMS Transit
– Preferred roaming solutions
• High quality global roaming coverage (‘on net’ everywhere) to increase current voice ARPU.
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KPN’s answer: The Mobile Matrix
A complete wholesale portfolio for Mobile Operators with a worldwide
coverage
Voice
Premium Voice
Data
MMS Interworking
SMS Interworking
Messaging Services
3G Video Services
Video Telephony
M2F Video Telephony
3G Content Exchange
Mobile IP Interworking
IPX
Roaming
Global Mobile Signaling
Intl. Roaming Services
GPRS Roaming Exchange
Roaming Broker Services
Preferred Roaming Services
Customer driven development
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The Mobile Matrix, Voice:
Premium voice
KPN offers Premium Voice Services to Mobile Operators:
• High quality mobile & fixed termination, anywhere in the world
• Direct connectivity with other MNO’s
• High Quality of Service:
• Fax support guaranteed to all fixed destinations
• Roaming support guaranteed to all mobile destinations
• Guaranteed end-to-end CLI delivery to a high number of mobile destinations
• Increase in ARPU through high quality routes
• Use of direct interconnects and selected high quality suppliers
• Emergency overflow routing available
• Premium support of our International Service Center 24/7
Fixed operator
Mobile operator
KPN
Mobile operator
Mobile operator
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The Mobile Matrix, Messaging Services:
MMS/SMS Interworking
• Increasing ARPU trough total global MMS and SMS termination
• Service based on existing 3GPP / GSM Association standards
• Anti spamming support
• Single contract and financial settlement
• Conversion GSM and T/CDMA (SMS)
MNO
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SMS/MMS
orig
KPN
SMS/MMS
term
No bilateral relationships necessary
The Mobile Matrix, Roaming Services:
International Roaming Services
Global Mobile Signalling
• Increasing ARPU through global SS7 signalling and SMS/roaming
support
• Single point of access to carry your mobile roaming messages.
GPRS Roaming eXchange (GRX)
• Inter-PLMN backbone for GPRS roaming
• The standardised basis for other mobile data services
And more is coming…
– Preferred roaming
• ‘Steer’ your roaming traffic to the network of choice (SS7-based solution)
– Roaming brokerage
• One single point of contact for all your roaming agreements
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The Mobile Matrix, 3G:
3G Services
3G creates a new type of traffic …
3G Mobile-to-mobile video telephony
• The circuit switched mobile-to-mobile solution
• Large geographical coverage, 80+ networks.
• Roaming support and CLI delivery guaranteed.
• End-to-end 64 Kbits UDI routes based on ISUP
V2.
• Use of direct interconnects and selected high
quality suppliers.
3G Content eXchange
• Providing the bridge between circuit switched 3G
connections and IP domains
• Circuit switched 3G connection provides high
quality video experience on short codes and
premium rate numbers.
• Gateway enables UMTS subscribers to access
streaming content and to video conference with
Internet users.
• Hosted platform (minimizes initial investment and
short time to market).
... and KPN has the solution!
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Example 3G service: live TV
International and national/regional content
Other possibilities:
•Video conferencing with internet users
•TV / movies / sports / music on demand
•Games, quizzes and dating formats
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KPN’s Mobile Matrix
Thank you for your time!
Any questions?
Feddo Hazewindus
[email protected]
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Royal solutions at a wholesale price
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3G – a promising market?
Number of 3G users is growing rapidly …
• Triple digit growth: From 22 million users in March 20051 to 70 million users by the end of
20052.
• UMTS-penetration still low: in March 2005 only 1.25% of all mobiles were UMTS/WDMAequipped1.
… and the content market looks promising …
• Adult content is the short term killer app: Italian 3G adult content market already over EUR
140 million in 20043.
• Total mobile entertainment market will reach $17.6bn in 2005, up by 71% on 2004, and will
top $59bn by 2009. After gambling (33%) and games (31%), the most popular entertainment
services in 2009 will be music (16%) and sports (8%)4.
… but consumer adoption and satisfaction is still low!
• "More than half of 3G traffic will be voice, no matter how much we talk about video calls,
video streaming and mobile games“5
• 77% of UK phone users have never used any new data services such as picture and
video messaging or gaming and ring tone downloads and a mere 12% of actual mobile
data users profess to be completely satisfied with the service6.
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1 Informa
2 Nokia
3 Eurispes
4 Juniper Research
5 Tomi Ahonen
6 NOP Survey
Our Points of Presence
Global Voice Platform For international voice and interconnection services
PoP
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Network
PlannedPoP
The Mobile Matrix, Data:
3G Mobile-to-Mobile Video Telephony
Lessons learned after 14 months….
What can cause customer dissatisfaction and reduces YOUR revenues?
Routing:
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Use of low quality / unstable routes, e.g. VOIP or GSM Gateway routing.
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Non-direct routing, too many international carriers involved.
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Lack of emergency overflow routing.
ISUP:
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No ISUP (V2) available in the national domain (e.g. Japan).
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Lack of ISUP (V2) support in international routing (e.g. loss of H.233 and H.245).
Data:
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Echo cancelling.
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Compression equipment.
Other:
•
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Failing access to VideoMail of outbound roamer if international carrier of host MNO
doesn’t support 3G routing.
The Mobile Matrix, Data:
3G Mobile-to-Mobile Video Telephony
3G MNO A
KPN
3G MNO B
End-to-end 64Kb/s UDI
ISUP V2 and CLI delivery
KPN offers Mobile VT termination with a premium QoS to over 70 destinations.
• Following the mobile industry, rapidly offering VT termination to newly deployed 3G networks.
• High Quality of Service:
• End-to-end 64 Kb/s UDI routes  no echo canceling or compression
• End-to-end ISUP V2  transparent transport of all parameters, including H.223 & H.245 (octet 5)
• Use of direct interconnects and selected high quality suppliers (max. 1 intermediary party involved)
• Emergency overflow routing available
• End-to-end roaming (MSRN) support and CLI delivery guaranteed
• Differentiated billing available (currently TMR, option for advanced billing on ITC=UDI &
UIL=H.223&H.245 under investigation)
• No necessity for separate video telephony trunks (but supported on customer request)
• Premium support of our International Service Center (24/7), including 3G testing facility, possibility for
SLA, and quality reports.
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The Mobile Matrix, Data:
3G ContentXchange
KPN offers a 3G Content Exchange including M2F Video Telephony
•Bridge between a circuit switched 3G connection and IP domains
•Circuit switched 3G connection provides high quality video experience on premium rate
numbers or short codes
• Gateway enables UMTS subscribers to access streaming content and to video
conference with Internet users
• Hosted platform (minimizes initial investment and short time to market)
KPN Carrier Services
3G VideoGateway Service
3G Mobile
Operator
KPN
3G VGW
Internet
Streaming server
hosts content
Web interface to upload or
maintain content
Videoconferenting Capability
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How does it work?
KPN Carrier Services
3G VideoGateway Service
3G VGW
TV
Orange
Internet
KPN
Streaming server
hosts content
Web interface to upload or
maintain content
Videoconferenting Capability
1.
2.
3.
4.
5.
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Orange customer dials premium rate number
or short code.
Orange hands over call to KPN (e.g. through
existing interconnect).
KPN establishes connection to 3G
ContentXchange.
Orange customer makes selection out of
presented menu: TV, video conferencing,
streaming content, …
Service is delivered to Orange customer.
Easy to implement:
• Hosted solution: minimizes initial investment
and reduces time to market.
• Easy to manage: content upload done through
easy web access.
• No complex billing: per second billing of
premium rate number / short code.
• Successful model: fit to current voice model
supports rapid customer adoption.
Our Current Portfolio
Fixed Operators
•International Wholesale voice termination
•International Premium voice termination
•International Wholesale Freephone service
(Internet) Service Providers
•International VoIP services (VoiceXS)
•International Premium Rate service
Mobile Operators
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• The Mobile Matrix, a complete portfolio of
voice, data and roaming services
Our Competitive Edge
• Established track record as a wholesale partner
• High customer satisfaction
• High flexibility in meeting customer demands
• Innovative and customised portfolio of services
• Many connection possibilities, fast and simple
• Global network with more than 234 (direct) interconnects
• High quality network performance
• Pro active network management (24/7)
• Associate member of the GSMA
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Our Organisation
Senior Vice President
Wholesale Voice Service International
Edwin van Ierland
KPN INS Inc.
Feddo Hazewindus
International Sales
Wouter Knoester
North America
Patrick Meijer
Western Europe
Wouter Knoester
South America
Central America
Sierk Coolsma
Africa
Konrad Mostert
Asia Pacific
Paul Baaij
Eastern Europe
Dominique Nagy
Middle East
Lodewijk Bout
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Product Management
Gert-Jan Huizer
NOC International
Claire Mengelberg
Data Management
& support
Baldewijn Westerbeek
WSD International
John van Grinsven
International Streaming
Hiske van Mierlo
International Billing
& Collection
Johan Bogaard