Transcript CANTO Final 2005 St Kitts V1

CONTENT AND CONVERGENCE
THE PERFECT MARRIAGE
Assuring Innovation
Glenn J. Kiladis
Director, Marketing
Assuring Innovation
LogicaCMG today
• A major international force in IT services and wireless telecoms
• 20,000+ staff (3,000 in Telecom)
• 35 countries
• $3.0 billion revenues
• 40 years of experience in IT services
• A worldwide client base of blue-chip organizations
• Global Leader in Messaging, Mobile Content Delivery and Payments
300 Service Provider Customers Worldwide (270 Mobile Operators)
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Global Telecoms makes up nearly a
quarter of LogicaCMG Business
Public sector
$801m (26%)
Financial services
$470m (16%)
Telco Product
14%
Industry,
distribution
and transport
$588M (20%)
Telco Solutions
8%
Energy and
utilities
$476m (16%)
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Global Telecoms
$659m (22%)
GT is 2nd Largest Business
Some Of LogicaCMG’s Major Clients
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LogicaCMG in telecoms…
our Commitment to the Caribbean
Installations serving 23+ Caribbean, Mexican
And Central American Sovereign Nations
Member
Since 2002
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Consumer trends for 2005
• More mobiles (1.3Bn) globally
than fixed lines
• Camera phones will outsell
digital cameras
• Legal music downloads will exceed
retail sales
• Growth of Wireless VoIP phone services
e.g. Motorola launch VoIP Skype phone
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Wireless Market Trends – Mexico & CALA
• Wireless Subscribers in CALA is rising - annual rate of 25%... Forecast to
reach over 186 million subscribers by end of 2006
• Wireless Data Latin America (Central America, Caribbean, Mexico & South
America) set to jump from $200 million in 2002 to $5.3 billion in 2006.
• Caribbean is Morphing
–
Liberalization means that new entrants and existing operators will co-exist
–
Working towards Creation of the CSME (Caribbean Single Market Economy)
• Within Latin America, Mexico one of the largest growth markets
–
Mexico's mobile penetration growth 6 percentage points over the next four years, reaching
46% of the population by the end of 2009.
–
Mobile data revenue will reach $1.8 billion in Mexico by 2009
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The Opportunity for Operators
Messaging
$56bn
Entertainment
$25bn
Information
$20bn
Enterprise
$19bn
Audio & video messaging $3bn (2%)
Other
$2.5bn (2%)
Location
information
$3bn (2.5%)
Internet access
$2bn (1.5%)
Instant messaging; email
$7bn (6%)
Picture messaging
$6bn (5.5%)
Basic texting
$40bn (33%)
Video & images
$5.5bn (4.5%)
Email & PIM
$8bn (6.5%)
Information
updates
$9bn (7.5%)
Corporate
Productivity
$9bn (7.5%)
Gaming
$7bn (6%)
Music & Audio
$3.5bn (3%)
Personalization
$6bn (5%)
Source: OC&C; Ovum; Strategy Analytics; Analysis; Yankee Group; IDC
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Video clip
Information
$7bn (6%)
Silo Questions
• Functional
– What functions can be provided across silos?
– How do cross-silo functions increase bundle uptake?
– How do cross-silo functions increase ARPU?
• Value Focused
– Which cross-silo functions are valued by customers?
– Can a cross-silo function lead to a new bundle?
– How is value migration modeled and reflected in the offer?
• Segment Focused
– How are functions being added to target desired segments?
– How do the cross-silo functions bring additional desired segment
customers?
• Market Environment
– What are the competitors doing, and how is the cross-silo function making
the bundle offer superior?
– How agile and fast can new functions be added?
– How accurate is visibility uptake / penetration / ROI models?
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Silos by Industry
• Silos of Diverse Technologies
– Video: Cable, Satellite, IP TV
– Telephony: Circuit Switched, VoIP
– Broadband / Portal: Cable, DSL also the Internet Portal
– Cellular: GSM (GPRS), CDMA (1XrTT)
Video
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Telephony
Broadband
Mobile
Silos in Technology
Rating &
Charging
Customer
Profiling
MMS
IP
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Rating &
Charging
Customer
Profiling
Rating &
Charging
Customer
Profiling
Rating &
Charging
Customer
Profiling
Wireless
Browsing
Voicemail
SMS
IP
PLMN
SS7
Rating &
Charging
Customer
Profiling
The Next
Service…
IP
Network & Service provider
Reality in Many Networks
Network connectivity and the construction of a content
delivery and messaging architecture is a means to an end…
users want access to their services, content, applications
Any time, Any where, Any Device
They don't particularly care over what kind of network they
travel, how we do it and they do not care about industry
acronyms we all use.
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Convergence Trends for 2005
Convergence in Multiple Areas of Telecom
1. Technology Architecture (voice and data)
•
Movement towards IP
•
Converged Messaging Applications and content
delivery via IMS leveraging IP and SIP
2. Simplifying Content Development for delivery to
multiple platforms
•
Content Anywhere, Anytime, Any Device
3. Operators Bundling Services across traditionally
separate “Silos” to Increase Customer Loyalty and
Overall Revenue
“Triple or Quadruple Play” Bundling
 Video
 Broadband / Portal
 Telephony (VoIP, LD or Fixed Line)
 Cellular
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Other Bundling Models…






Local Telephone
Long Distance
Mobile
Television
CPE and in-house wiring
Other bundled services (etc…)
Convergence & Content
• Introduction new services = creation of networks based on several
silos.
• Silos span various business structures, platforms, content delivery
systems and technologies
• We need to recognize these silos as we plan for next-generation
migration.
• How and what should we address to achieve the best benefits of the
next-generation solution?
Cingular’s 4th Quarter Earnings (ended December 31, 2004) saw
strong growth in data ARPU by 65%
Primarily fueled by text messaging, mobile instant messaging, mobile
email, downloadable ringtones, games and photo messaging.
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Current Content Delivery System
Existing Silo Approach
Services and content specific to device and delivery system
Mobile
Mobile
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Broadband and Wireless
Portable
Broadcast
Fixed
The future of telecoms unprecedented convergence
Content and services repurposed for all devices
Mobile
Broadband and Wireless
Broadcast
IP to all devices over all delivery systems
Mobile
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Fixed
Sample “UNIFIED INBOX” of the Future
Proposed IMS Interface for car shot
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Evolution of key services
Voice
Voice
SMS
Data
Data
MMS
Current Services
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Next Generation Services
Any Application
Next Generation Initiative
“There is huge
pressure on operators
to change the way
they deal with voice
and data, and the
convergence of the
two……”
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Back to IP
• IP technology is changing market dynamics
– Low OPEX and CAPEX
– Thus attracting new entrants
– Combined with WIFI, IP provides alternatives
• IP and is the foundation for the mobile operator’s “flexible data
service strategy”
• Migration to IP service networks needs to be managed carefully
in order to garantuee continuity
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Content Value Chain
Service design
& creation
Content Creation
Content
Distribution
Content
Delivery
Broadcaster
Cable TV Companies
Producers
Authors &
Developers
(GUI, Encoding)
Aggregation
Publishing
& Marketing
Content Assets
Optimization
Compliance Management
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ISP’s
Wireless
Operators
MVNO’s
Mobile
Operators
Content
User
2.5G & 3G Supported by IP Content Delivery...
Breeding ground for new services
• Video Content in the palm of your hand
• Video Ringtones
•
•
•
•
•
Video Chat
Remote Surveillance and Diagnosis
Fixed and Mobile Video Calling
Video Call Completion
Video Gaming and Quizzing
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The Olympic Case
• Gold Medal Alert
• Live results
• ‘Famous Quotes’
• Olympic Bloopers
• Collectable Clips
• ‘Golden Moments’
Video will play an increasing role
Video Communications
 Person to Person, fixed and mobile
conversation
 Person to Persons
 Call Completion
The true power is in synergy
 Video Messaging
 Person to Person
 Content to Persons
MMS
 Multimedia Album
 Video Portals
 Live and stored content
 Streaming and Downloading
 2.5G and 3G Mobile
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browsing
Three Phases of Successful Bundling
1. Product Portfolio
– Common Relationship Provided By Advances in Technology
and/or Changes in Government Regulation
2. Common Touch and Feel (User Experience)
– Common Branding, Terminology, User Interface Similarities
3. Integration
– Unifying content delivery
– Providing Additional Utility to the Subscriber by Increasing the
Ease of Use, Functionality and Price Point of the Overall Bundle
– Fighting Price Erosion Inherent in Bundling
– Increasing Stickiness
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Convergence in
Messaging and
Content Delivery
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Sample “UNIFIED INBOX” of the Future
Proposed IMS Interface for car shot
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Convergence in Content & Messaging
Cingular & SBC
•Manage and listen to wireless and fixed line voice mail messages from a
computer with Internet access.
•Receive fax messages… forward them via email or print them out using your computer.
•Read email anywhere, anytime over the Internet from a computer.
•Listen to your voice messages, email messages and fax headers over fixed or wireless line
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New World
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Old World
FUTURE SERVICE PROVIDER ARCHITECTURE
Telecoms & Service Provider
Telecoms
Quality
Value
From Present:
Silo Content & P2P
To Future:
Horizontal
Service Provider
IT
Flexibilty
Value
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Network Provider
Telecoms
Quality
Commodity
Step 1 – Enabling a device aware architecture
ESMEs /
Applications
Centralising
components
Add
Enable
horizontal
allcommon
IP infrastructure
components
SMSC
OAM
SMSC
Messaging
Proxy
OAM
Provisioning
OAM
MMSC
Provisioning
SS7
Charging
SMSC
Provisioning
SS7
Charging
IP
SS7
Charging
Customer
Care
Reporting
MSC/STP
Assuring Innovation
SS7
GW
MSC/STP
GGSN
SS7
GW
MSC/STP
Assuring messaging innovation in IMS
•
IMS poses challenges for operators:
–
–
–
–
business case for investment in IMS technology
migrating the current network and protecting investments
assuring interconnectivity for all customers
assuring value and user experience in a changed world
Seamless Migration Strategy is Key
•
Messaging Application Server (MAS) fills a current
gap in the current IMS space providing storage,
gateway and presence capability and offering
an enhanced user experience
Assuring Innovation
The Operator Challenge - Charging for
Messaging and Data Services
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Exploiting the Content Value Chain & Convergence
IP framework for Messaging & Content Delivery, enables OPEX
reduction, and horizontal introduction of services that level silos
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IP & Information Flow = Power
Total Visibility
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With IP Comes Intelligence
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BUSINESS BENEFIT
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CONTENT AND CONVERGENCE:
HAVE THE RIGHT DELIVERY ARCHITECTURE
GO TO MARKET WITH THE RIGHT CONTENT DELIVERY ARCHITECTURE
Assuring Innovation
Glenn Kiladis
Director, Marketing
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