Transcript network interconnection

Deploying Enriched Communications –
the cost of indecision and inaction for operators
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© GSMA 2015
The cost of indecision & inaction on Enriched Comms
Default Comms Provider
1
2
OPEX Savings
Operators drift into irrelevance by
limply surrendering role as default
provider of comms
Missed $multi-billion OPEX savings that
would come from running a single 4G
network (instead of 2G/3G/4G) only/mostly
Opportunity Cost from Spectrum
5
4
> $150 billion ‘opportunity cost’ forgone
if operators can’t ease down or re-farm
2G/3G spectrum by switching over to
IP Comms 2
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Cede control to device makers
Without comms, and with
developments in the SIM, operators
may be reduced to wholesale providers
to the big device makers
1.
2.
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3.
4.
Productivity Gains
Missed ~$90 billion in annual productivity
gains to the global economy (if all calls
today are switched to VoLTE and based
on VoLTE’s 3 secs faster call setup) 3
8
Network Effects of interconnection
Fail to leverage superior network effects. A
globally interconnected operator service is
27x more valuable than Facebook and 46x
more than non-interconnected services 4
3
Sweating IMS investments
Inefficient use of IMS investments
($4.2bn invested in IMS & VoIP
equipment in 2014 alone) 1
6
Future Comms-enabled
Opportunities
Miss out on potential future
opportunities that will rely on comms
(e.g. Augmented Reality)
9
Dis-intermediation by Wi-Fi
Customers using only data services will
be attracted to switch their usage to
cheaper Wi-Fi or alternative access
technologies
Infonetics: http://www.infonetics.com/pr/2015/4Q14-Service-Provider-VoIP-and-IMS-Market-Highlights.asp
If 800/900/1800/2100 MHz spectrum bands are switched from 2G/3G to 4G and assuming spectrum licenses are technology neutral. Opportunity Cost in Sweden is
~$1.04bn and as Sweden accounted for 0.52% of global mobile revenues in 2014, global opportunity cost could be as high as $198bn. Assume that spectrum
prices in Sweden will be higher/lower than other countries. Therefore, conservative estimate of >$150bn.
∑ (3 second saving per call)*(Number of calls per annum)*(Average hourly wage in each country [from ILO])*(Total non-M2M Connections in each country)
Based on Metcalf’s Law: (Total Operator Connections)2 > (Total Facebook Connections)2 and (n1 + n2 + n3 + … + nn)2 > (n1)2 + (n2)2 + (n3)2 + … + (nn)2