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Mobile Internet & Multi Media: Service and Business Opportunity Development

Mobile Internet & Multi Media: Service and Business Opportunity Development. Mei 2003 CDMA Course, Bandung, INDONESIA. Nurain Silalahi, MT. IPM dan Eka Indarto. IT/Telecom Expert Email: eka_indarto@jmn.net.id. Introduction. 1. Mobile Internet (MI) is known as internet access

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Mobile Internet & Multi Media: Service and Business Opportunity Development

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  1. Mobile Internet & Multi Media: Service and Business Opportunity Development Mei 2003 CDMA Course, Bandung, INDONESIA Nurain Silalahi, MT. IPM dan Eka Indarto IT/Telecom Expert Email: eka_indarto@jmn.net.id Eka Indarto

  2. Introduction • 1. Mobile Internet (MI) is known as internet access • from mobile terminal. • Why Mobile Terminal ?  Cheaper and Flexible! • It’s coming from convergence of Computer, Telco’s and • Audio/Video services  combined with Mobile Telecom •  3G MI&MM services • 3. In 2G (Digital Mobile), it is only • limited to 9600 kbps streaming low bit rate data, text only, • with low quality of voice streaming access. Eka Indarto

  3. Introduction (2) • 4. GPRS (General Packet Radio Services), known as “turbo 2G” or “2G+/2,5G”, higher bit rate streaming data/packets, up to 144 kbps. Starting for voice and video streaming data • EDGE (Enhance Data rate on GSM Environment), higher • bit rate streaming data, 354 kbps. • By using BoD algorithm, video streaming packets are • possible. Pre MM (Multi Media)  benchmark of text, • voice and video. • 7. 3G/UMTS (Universal Mobile Telecommunication System), • up to 2Mbps streaming data/packets. • 8. Evolution of MI and MM, next explanation. Eka Indarto

  4. Value Chain Possibilities MULTIMEDIA SERVICES CONTENT NETWORK SERVICE Content Creation Value Added Services Long Haul Local Access Interface Management Terminal • Bundling • CATV • VOD • AOD • Internet Services • Home Shopping • Interactive Game • Movie • Documentary • Music • Game • Conversion • Encoding • ATM • SDH • SONET • DWDM/WDM • Satellite • Microwave • Fiber • Coaxial • Copper • Wireless • Storage management • Interaction • Management • Presentation • Management • PC • Set top device • TV • SUPPORT SYSTEMS • Billing • Customer Services • Network Management and Interconnection • Managing System (Interoperability) • Service Planning • Network Planning • Management Information System Eka Indarto

  5. Evolution towards Mobile Internet & MM • mobility • wideband • services - mobility - high speed services - internet access - electronic mail - real time image transfer - multimedia document transfer - mobile computing IT, Selected Mobile Internet Access 2G+ - ISDN service - video telephony - wideband data services Telecommunication Computer Computer and Telecom Evolution from Computer And Telecom IT  IT, Information Technology Cost efficient communication at any time, at any place, by any people (nomadic, selected place & mobility)! Eka Indarto

  6. Evolution towards MI & MM (3) Audio/video DATA Computer - internet access - electronic mail - real time image transfer - multimedia document transfer - mobile computing - mobility - high speed services - video demand - interactive video services - TV/Radio/Data contribution & distrib. - mobility - personal services IT, Mobile Internet & MM, 3G - mobility - wideband services Evolution from Computer, Telecom and Audio/Video Multimedia MM UMTS/3G etc. - ISDN service - video telephony - wideband data services Cost efficient communication at any time, at any place, by any people ! FULL MOBILITY  Mobile Internet Access Telecommunication Eka Indarto

  7. Mobile Data and Mobile Internet Outlook 1 Billion Convergence Subscriber/User Fix Internet via POTS Wireless/Mobile Internet, 3G beyond Mosaic Browser, 1994 500 Million Micro Browser, 1999 Take off Take off year 1986 1990 1995 2000 2005 Data access Internet Mobile data access Mobile Internet Eka Indarto Convergence: Mobile User > POTS

  8. Parallel Growth of Mobile and Internet Subs./User (in Millions) 3G/IP Multimedia service 800 700 600 Mobile 500 400 300 Internet 200 100 0 1995 1996 1997 1998 1999 2000 2001 …2005 Y2003  Mobile and POTS User parallel  3G MM Eka Indarto

  9. Future Mobile Services Higher Bandwidth Video Conference Services Video Telephony Tele-shopping Electronic Newspaper Images/sound files Tele-banking Financial Services Database access Information Services E-mail Voice Kbit/s 3G will deliver seamless services from narrowband to broadband and will support flexible bandwidth on demand up to 2 Mb/s 100 1E3 1E4 10 Eka Indarto

  10. Customized Wireless MM services Tele-working Video telephony Multi-connection Home shopping Tele-consultation telebanking Tele-selling Information seeking & retrieval Tele-maintenance entertainment Tele-learning Lottery services Tele-doctor On-line monitoring Tele-advertisement Movement control & signaling Virtual home environment emergencies Interactive training Up to 2 Mb/s on-demand & in-call variable Wire-line quality 3G/UMTS will offer the user to bundle available services before and during conversation Basic Services Speech, graphics, Low/high bit-rate data, Message, packet data, Low/high quality video Specialized services • Flexible allocation of radio • resource • unpredictable bit rates • asymmetric throughput Customer Selected basic services 3G/UMTS will offer mobile personalized communication on user’s demand Eka Indarto

  11. Instant call MM chat WAP "SMS" MMS Messaging in mobile internet Service Low disposable Call MMS Chat MI Message SMS Storage need Greetings Email Notice Belonging End user application High "souvenir" High real time Low delay Instancy need Expansion Eka Indarto

  12. Video Streaming MM & Access by MI Remote Medical Service Still Imaging High Quality Video Conferencing Mobile Television Audio Streaming Text Messaging Electronic Publishing Mobile Radio E-commerce Voice Driven Web, streaming audio Voice, email Voice Mail, Telephone Fax Data: Weather, Traffic Location, News, Sports, etc. 0 9,6 14,4 32 64 128 144 384 2000 Higher bit rates:Higher Value Service Application Circuit 2G+/2.5 packet data UMTS Trial 3G/UMTS 3G 2G+/2.5 Increasing value 2G 1G Data Transmission Speed, kbps Eka Indarto

  13. Value Added & Business deliverable Value added Services bring business opportunity! Eka Indarto

  14. Many new roles for the Network Provider Collect, package and resell information together from 3rd parties Infomediary Managed Gateway to the Internet offering advertising and content revenue Network Provider Network Provider Portal Telephony Provides raw information or services ContentProvider Provides applications such as email, WWW hosting, banking Application Provider Eka Indarto

  15. Media broadcast NVOD Advertising Push Corporate access Voice/Video Conferencing e-mail/imaging Workflow Data coll/distr Connectivity and Messaging Voice SMS Data Business Business e-Commerce Connectivity and Messaging Voice/Video Imaging SMS / e-mail / fax Community ware From: From: Internet Intranet Horizontal consumer svcs Connectivity and Messaging Voice SMS Consumer Consumer Consumer Business Consumer Business To: To: Business-to-consumer is a whole new market Mobile Internetrestructures the mobile market Providing connections and services Providing connections Eka Indarto

  16. Value Chain Possibilities Advantages of Occupying the element Operator Position in the value Chain 100% PLMN Opportunities 0% No Opportunity • Closer Customer: • relationship • Joint fix/Mobile • Offering • Value added • Offering Possible • Evolution towards • GPRS/UMTS • Content Revenues • Quick Application roll- out • Traditional business related application • Entrance to vertical market • Traditional Business • Existing Customer Relation- • ship Owner of Equipment • Separation IT & Telco’s Operator, Network Provider Service Provider Content Provider User • RoI • Strong Competition • Appropriate appliance • Required Know How • RoI • Required Know How • Lack of control over • content • Higher churn rate trough lack of control over content • Missed Opportunities in Internet Business • Decreasing Margin • Less control over customer relationship Risk of Occupying the element Eka Indarto

  17. Terminal Manufacturer Accessories Manufacturer Content Provider Software suppliers Network Manufacturer Content Packager Value Added Infrastructure Operator Service Provider Wholesaler Service Provider Subscriber /User Value Chain possibilities for Business Opportunity Development Software Services NetworkOperator Hardware Distributor & Retailer Opportunity for all! Eka Indarto

  18. Business Dev. opportunity & possibilities Eka Indarto

  19. Business Dev. opportunity possibilities (2) Eka Indarto

  20. Value Chain Change forMobile Internet &MM Every Operator has to weight the business opportunities into the service and content provisioning for mobile internet and Multimedia Operator Position in the value Chain 100% PLMN Opportunities 0-100% Opportunity 0% No Opportunity Manufacturing/ Vendor Infrastructure Deploy Operator, Network Provider Service Provider Gateway provisioning, connecting to internet and other NW Development of App. SW and OS Content Devl., CP Delivery/ Transport of services. Customer Care and Billing User Requires new skills, coordinated trough Alliance Partner, CP etc. Services & Business Opportunity Development Multiplier effect create Business Opportunity Development Business Development, Opportunity for all! Eka Indarto

  21. Cinema Ticket Booking & Reservation Service Example on top of Mobile IT: Basic Service:Info search and reservation only, no purchase option (interactive) Description: A person searches a city database (local info,…) base on film or theatre Person can make a reservation and receive confirmation via SMS Person still needs to show up early to pick up actual tickets User Benefits: • Advantages over using cellular phone today to reserve a ticket • while out and about: • No need to get news paper to see “what is playing?” • 2) Confirmation stored in phone Target User: Young People (15-30) out and about, looking for something to do Eka Indarto

  22. CINEMA Ticket Booking & Reservation Business definition Flow Diagram and BillingBasicConcept: VAS on top ofIT and Telco’s business development definition: Network Operator Service Provider ISP Content Provider Payment Broker Payment Agent Subscriber Cinema Access Telco’s Lock for availability film Availability film INFO Select film List of theaters Select theater (include time) for reservation Details information (available sheets, reservation info) Reservation Request reservation Reservation Confirmation  (Q: Pay Now?) Payment Request Request for confirmation (# of tickets, seats price, merchant, tax,  To accept, Press OK! Payment confirmation (request) Transaction Request Payment Perform Transaction Transaction Done Payment confirmation Payment + tickets amount confirmation (response) Traffic 0,1 % of ticket Price 3-4% of ticket price Monthly fee for hosting Billing Aspects Content (free?) Reservation (free?) 1% of ticket price Ticket(s) Eka Indarto

  23. Summary • MI & MM is the evolution of needs of convergence services of Computer, • Telecommunication and Audio/Video  3G MM so cold. • 3G MM represent and develop convergence services • MI & MM/3G Services represent and develop a future business opportunity • Need a great variation of services as an option • for management to chose the most profitable services in the future • MI & MM Services stimulate transfer revenues and customer retention • MI & MM Revenue model and driving factors differ from the existing one • oo00oo Eka Indarto

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