Open Standards and Innovation -a Pilgrims View to a New Nation

1. ITU-T Regional Consultation on Conformance Assessment/Interoperability(Sydney, Australia, 16-17 September 2010) Open Standards and Innovation-a Pilgrims View to a New Nation Siva Ramamoorthy

2. Innovation across the Pyramid India Dry Cleaners at $1 Kerala Fisherman

3. Summary – Trickle Up Innovation • "The dominant logic holds that innovation comes from the U.S., goes to Europe and Japan, then gravitates to poor countries" says C.K. Prahalad, a strategy professor at the University of Michigan's Ross School of Business and author of The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits. "But now we're starting to see a reversal of that flow." CK Prahalad (1941- April 2010)

4. Agenda- Key Hypothesis Standards Help Innovation Innovation creates enormous Opportunities for Nations- especially emerging Nations Case Study Call to Action

5. The Telecom Decade No of Subs CAPEX ARPU % of OPEN BUILDING BLOCKS in ICT Death of Telecom 1995 2000 2001 2005 2010

6. The Telecom Industry Over the Years • Earlier: • Completely End to End Proprietary • Physical design of equipment • Racks, Chassis, Boards • OS • Middleware

7. The Telecom Industry over the years Open Source and Linux Boards and Chassis FPGA Middle Ware (such as SA Forum Specs) Application/ Services Software Consortiums: -PICMG - Linux Foundation & Carrier Grade Linux - SCOPE Alliance - Service Availability (SA) Forum Interop Forums: ITU, MEF ITU Work on Conformity and Interop WTSA Res 76, ITU Pilot Conformity Database, Test Labs Global System for Conformity Assessment (ISO/CASCO) The Post 2000 Telecom Product resembles a Eco System

8. Innovation is multipronged

9. The Innovation Curve

10. Innovation Barriers to Entry

11. Global Telecom Industry - Observations • Emerging Economies leap frog technology • Operators are outsourcing their networks increasingly • Move towards Converged Networks • Greater Focus on Government to Citizen services

12. Large opportunity for Innovation Using Standards Product/IP Talent Big Local Market • Standards IP Supportive Supply Chain Early Role models

13. Innovation Using Standards Large Opportunity to Innovate Re usable HW Building Blocks Open Source Democratization of Knowledge Standards Eco System of Innovation

14. Why is it Important for emerging economies • Leapfrog technology • Lost Capex • Low Opex • Best of breed technology • Enabling local employment • Technology Index Moves up • Larger Range of Providers Interop’ing with each other

15. India Innovation • Business Innovation • Managed Services – Ex. Bharti • Point to Point Mobile Services cheaper than a Postage Stamp • Convert Fixed costs into Variable costs • $0.01 per minute • Revenue growth of 120 percent Y-o-Y, Net profits 282 % (Reverse Innovation)

16. Case in Point Applying Standards and Innovation to NGN Traffic “Carrier Ethernet”

17. Case in Point Applying Standards and Innovation to Customer Intimacy “Value Added Services”

18. Summary- Standards and Innovation • Large Opportunity for emerging Economies • Provides for a way to leap frog technology • A large eco system of Providers of solutions and products with Standards • Reuse of Known Hardware and Software Technology Building blocks • Call to Action

19. Thank You SIVA RAMAMOORTHY