Effect of Web 2.0 on Telecom

2. Effect of Web 2.0 on Telecom Arjun Roychowdhury, Director, IMS & Broadband Applications Hughes Systique Corp. arjun@hsc.com

3. How do I define ‘Web 2.0’ ? • An environment where: • Broadband Connection is ‘available’ and ‘affordable’ enmasse’ • Focus more on user experience and less on bandwidth • A blended application model which includes both ‘Software as a Service’ and locally hosted services • Deployment infrastructure utilizes web based concepts like REST, JSON, etc. which increases interoperability

4. Myths of Web 2.0 • AJAX is a technology (suite) – not a business model • Web 2.0 does not mean zero-client-footprint (i.e. always browser based) • Web 2.0 is not new – broadband infrastructure availability is new • Besides advertising, as of today, alternate business models are yet to be proven • Web 2.0 is not the cure for cancer

5. Changing shape of landscape • Broadband Penetration Rate is at an all time high • 210% in aspac, 180% in EU and 110% in n.america compared to Y2000 • You need pioneers to prove ‘it can be done effectively’ – like Vonage did for VoIP • Flash and AJAX based solutions on the web have proved that rich media content can be effectively delivered (youtube, gmail, officelive) • Blended applications vs. bundled applications • The core Telecom market is shrinking - M&A’s • Multiple providers vying for the same market (cable, wireless, DSL) • Addressable market increases, so does competition • Your only way out is to increase ARPU (or as some say, AMPU) • Mobile high speed Data Networks is a reality today – pushes internet based services to your desktop and handheld • IMS Over • HSDPA/HSUPA/EDGE/WiMAX • Multiple Access Technologies – one control layer

6. Recognizing the important of the Internet • The Internet is already a core part of the target market’s lives: • Comfort with the Internet: • We don’t check Yellow Books, we ‘Google’ • Comfort with the Internet as a Communication Service: • Vonage added 1m subscribers in 2006 • But customer churn of 2.4% - reason: Cable VoIP ! • Skype – 150m subscribers by end 06 • Comfort with ‘social networking’ (or, more than just voice) • Myspace surpassed 50million unique visitors in 2006 • Youtube surpassed 18million unique visitors in a year • approx 8m million US Mobile subscribers are capturing videos to mobile phones • US Internet ad spend increasing @ 30% Y-Y ($12.5B 2005) • 5% of total US ad revenue • telecom companies account for 7% of internet ad revenues

7. Web Services Growth complete virtual desktop Microsoft Office Live unleashes full collaboration on the web in real-time – very task intensive operations, but running miles away on a webserver, and the user hardly sees a difference Google Office apps (calendar, excel) Writely (acquired by google) – online word editor will all desktop features demonstrates that a web-email client can be as intuitive, responsive and full featured as your 30MB outlook client ! Meebo – web based instant messaging client for muliple protocols demonstrates effectiveness of partial-refreshes for graphic rich apps demonstation of how AJAX can be applied to the VoIP market – anyone can log into to his IM from anywhere and have the same user experience Yahoo email v2: Completely emulates Outlook interface, but based on web, in real-time demonstrates real-time updates and UI conveniences of ajax successfully Google Maps: Interactive, scrollable mapping system with location pinpointing APIS GMAIL:used AJAX for realtime user experience for web email – keyboard shortcuts, new mail notifications at real-time speeds

8. The New Paradigm of building products Business Layer: SAAS, Perpetual, Hybrid Presentation: Flash, AJAX, HTML, CSS Server Applications: SIP, Presence, Mashups, aggregation, streaming etc. Programming in Abundance Programming Model: Distributed, Multi-Tenancy, Caching, trickle Infrastructure: J2EE, BEA, TomCat, etc. Presentation: Flash-Lite Programming Model: Caching, trickle Client Programming for responsiveness Infrastructure: J2ME, Series 60, Symbian, etc

9. SAAS – Value Chain and Revenue Model

10. ‘Webized’ Telecom Battle – AJAX or Flash • Both AJAX and Flash are popular presentation layer realizations for Web Services • Flash has been around longer, has wide deployment, is also optimized for mobile devices but core technology is controlled only by Adobe • AJAX is newer, has serious industry momentum with Google, IBM, Sun, Yahoo and others pushing this technology. Also is open standards • Flash is stable and proven, AJAX being new still has several security and cross browser woes • Since Flash is a widely distributed browser plugin, it can also be used for real-time media communication/streaming while AJAX being a pure web technology does not play in this space

11. Security Issues • Web 2.0 adoption makes these innate problems more evident: • XSS • Script Kiddie techniques • XHR Repudiation • data protection/firewalling – mashup collaboration • Flash vs. Web 2.0/AJAX security • maturity • actionscript vs. javascript • buffer exploits

12. Conclusion • ‘Web 2.0’ set of technologies are tools that allow our product to • utilize the power of the Internet “where it needs to” • be responsive and reactive – desktop experience • simplify interoperability via multitude of URL and XML based schemes • “Help” create a business model which is a mix of ‘service’ and ‘product’ • Where you take ‘Web 2.0’ is your business !

13. Thanks ! • For more details or contact: • Arjun Roychowdhury • arjun@hsc.com • More Information on Web 2.0 and Telco: • http://corporaterat.blogspot.com/2007/01/web-20-and-ajax-fundamentally-insecure.html • http://corporaterat.blogspot.com/2006/10/its-not-voip-ajax-web-20-its-saas.html