Date: 01 Feb 2010 Availability: Public OMA Confidential Contact: Francesco Vadalà

1. Date: 01 Feb 2010 Availability: Public OMA Confidential Contact: Francesco Vadalà Source: REQ OMA-TP-2010-0020R01-INP_REQ_input_for_All_IP_WorkshopService deployment inevolved mobile all-IP systems- REQ presentation X USE OF THIS DOCUMENT BY NON-OMA MEMBERS IS SUBJECT TO ALL OF THE TERMS AND CONDITIONS OF THE USE AGREEMENT (located at http://www.openmobilealliance.org/UseAgreement.html) AND IF YOU HAVE NOT AGREED TO THE TERMS OF THE USE AGREEMENT, YOU DO NOT HAVE THE RIGHT TO USE, COPY OR DISTRIBUTE THIS DOCUMENT. THIS DOCUMENT IS PROVIDED ON AN "AS IS" "AS AVAILABLE" AND "WITH ALL FAULTS" BASIS. Intellectual Property Rights Members and their Affiliates (collectively, "Members") agree to use their reasonable endeavours to inform timely the Open Mobile Alliance of Essential IPR as they become aware that the Essential IPR is related to the prepared or published Specification. This obligation does not imply an obligation on Members to conduct IPR searches. This duty is contained in the Open Mobile Alliance application form to which each Member's attention is drawn. Members shall submit to the General Manager of Operations of OMA the IPR Statement and the IPR Licensing Declaration. These forms are available from OMA or online at the OMA website at www.openmobilealliance.org.

2. Structure of this presentation • After a brief introduction, the following slides represent some consideration on the services trends based on market analysis, technological considerations, … • Each slide describe a particular aspect on the telco/IT landscape • This aspect may be or not directly related to all-IP based networks, but in any case it represents a trend in the telco/IT world and may represent an opportunity/risk for the mobile operator • Each slide has one/more deductions in bold that represents a snapshot of the aspect identified in that slide • These deductions represent high level requirements that are to be taken into account on defining the evolution of service layer. • For each deduction, it is identified a list of activities that OMA is already doing or that OMA need to do in order to address those requirements. • More detailed requirements for OMA activities may come from a further deeper analysis

3. Trends&Analysis List of reqs Innovative services All IP Systems capabilities Others Introduction • Evolved Mobile All IP Systems represents an opportunity for mobile operators to provide enriched services to their customers. • Challenge and opportunity for OMA to define new features/enablers and/or enhance existing ones that will enable the building of applications that fully leverage all-IP network capabilities. • Starting from trends/analysis* in the telco/IT world, the aim of this presentation is to identify a list of considerations that may allow operators to exploit the capability of All IP Systems on providing more appealing services to end-users. *) It migh not be exhaustive

4. What is an “All-IP Network” • All-IP Network (AIPN): A collection of entities that provide a set of capabilities for the provision of IP services to users based on IP technology where various access systems can be connected. The AIPN provides a set of common capabilities (including mobility, security, service provisioning, charging and QoS) which enable the provision of services to users and connectivity to other external networks. An AIPN requires one or more connected access systems to allow users to access the AIPN. 3GPP TR 22.978 V8.0.0 (2008-12) www.ccpu.com/papers/3Gto4Gmigration

5. Market consideration Mobile revenues … http://www.ofcom.org.uk/ • It can be noted that one reason for the great success of the very simple SMS service is the ubiquitous support across 3GPP mobile devices, making it possible for users to exchange SMSs with any other user, not having to care about whether or not the recipients’ client, subscription or current network is capable of receiving the SMS. Modifying that service might create incompatibilities between implementations and deployments, possibly eroding the base for its success, why it might be better to concentrate improvement of messaging experience towards new services, keeping SMS as is. 1) Voice and Messaging/SMS generate the most of total mobile revenue

6. Market consideration Smartphones and applications drive more sophisticated use of mobile Internet • Encouraging consumers to access the Internet and consume data services via mobile devices has been one of the wider mobile industry’s over-riding objectives for many years. • In Q12009, more than eight million people use the internet on their mobile phones • People expect you to have a presence on social media, so if you are not there, you are missing an opportunity to connect to customers 2) Access information using browser, access e-mail and access social networking continue driving mobile Internet adoption. http://www.ofcom.org.uk/ There is no agreed definition of ‘smartphone’ since it is a constantly evolving technology, but here a smartphone is defined as a handset running Symbian (6.1 and above), Android, Blackberry, iPhone, Palm, Windows Mobile or Linux operating systems.

7. Device evolution Mobile broadband market begins to mature • Mobile broadband (which enables users to connect to the Internet with their laptop, using a cellular network via a USB modem or ‘dongle’) emerged as a viable consumer proposition, as the roll-out of HSPA networks enabled mobile operators to offer Internet access at headline speeds comparable to those available through basic fixed-line broadband services. • By the end of Q1 2009 around 3 million households had a mobile broadband connection (approximately 12% of all households). In May 2009, over a quarter of a million new connections were added, and pre-pay (pay-as-you-go) connections exceeded post-pay connections for the first time. • Another indicator of the maturing of the mobile broadband market is the range of tariffs available: • Several mobile network operators started to offer a range of tariffs on both pre-pay and post-pay 3) The number of mobile users connecting using a USB modem plugged in a PC is growing http://www.ofcom.org.uk/

8. Market consideration Business markets • Over the five years to 2008 the fastest growth in business revenues has come from mobile services. • Corporate data services have also grown over the period,. 4) The fastest growth in revenues has come from mobile services offered to Corporate users http://www.ofcom.org.uk/

9. http://blogs.pcworld.com/staffblog/archives/005075.html Device evolution The User Experience • In future, terminals will be something quite different ... • And the User Experience will be even more important. • Services have to be appealing and easy • New competitors have come: • Apple is historically very good in UI and iPhone is very appealing • Google as well (simple and effective) 5) User Experience is a key for attracting users

10. Device evolution Terminals Are Not Anymore Simple Endpoints ... • A lot of Intelligence in mobile terminals • New processors • New Operating Systems (e.g. Android, Linux) • Web 2.0 capabilities • e.g. Widgets, Feeds, mash-ups • Terminal with embedded communication • Kindle (Amazon) hides the communications costs within its commercial offering for buying new books • devices with built in (pre-paid) communications capabilities 6) More complex devices are available on the market and need to be managed http://developer.android.com/intl/it/guide/basics/what-is-android.html http://en.wikipedia.org/wiki/Amazon_Kindle

11. http://reviews.cnet.com/best-smartphones/ Business models … they Are Intelligent Nodes! All-IP-Cocktail recipe: • Take a phone with a good OS and a good battery • Local IP access • “All you can eat” IP connectivity • Shake it and serve it cold WebCo All-IP terminal The Internet Seamless access network (with flat rate) • Mobile Terminals will be mini-PC using client/server based applications • WebCos may be in a position to govern the evolution of services and infrastructures of future Services • Seamless connectivity will be a must with flat rate. • IMS is stated as the long-term evolution plans by many operators but operators are to pay attention to services offered by other providers through a direct IP connection • 7) New actors (WebCos) as Service Providers for final users, using the mobile network as transport facility

12. Business models Global vs Regional: the Telcos And The Webcos models Proposition for the user Telcos $ The Freemium business model • Pay per Minute • Pay per Bit • Pay per Service • Pay per Event Advertisers $ Subscription or Pay per use business model Google/Yahoo Business Span Paradox Even the most global Mobile Operators are not operating services all over the world. On the contrary any small Internet startup has the world as a potential market Business Model Paradox What is a valuable (and billable) service for an Operator, is a service given for free by WebCos • Search for free • Get free services (e.g. voice, IM) • Click on Ads 8) Users may like more flexibility on packaging services in terms of charging 9) Users may not want to care about the connectivity, but they want an easy “service roaming”

13. http://www.telco2.net/blog/2008/03/post_12.html Business models Two Sided Telecoms Business Model 10) Additional opportunity for operators on connecting end-users with 3rd party services, and getting paid by the 3rd party for doing so.

14. Telco vs Webco A Network of Participating Entities • A peer-to-peer (or P2P) computer network is an overlay network that relies on the computing power and bandwidth of the participants in the network rather than concentrating it in a relatively few servers. • Sharing content files containing audio, video, data or anything in digital format is very common, and real-time data, such as telephony traffic, is also passed using P2P technology. http://en.wikipedia.org/wiki/Peer_to_peer • Fundamental principles of P2P solutions: • the edge intelligence (software and functions are in the client software) • the idea of OVERLAY Network • Overlay Net means that somebody else has to put the transport infrastructure • On going discussion on Net neutrality vs Peer-to-Peer • In USA, FCC is promoting net neutrality. • 11) Peer-to-Peer is a type of traffic growing in the mobile network too, that may be a threat or an opportunity for mobile operators • http://news.cnet.com/8301-30686_3-10357806-266.html

15. Device evolution Internet of Things (IoT) • “In the last ten years the Internet connected people, then places. Now I'm absolutely convinced that the Internet will connect things – cars, refrigerators, houses. This is both a major business opportunity in Europe and the answer to many social needs.” Daniel Nabet, director, Machine to Machine, of Orange Business Systems, http://www.microsoft.eu/Futures/Viewer/tabid/64/articleType/ArticleView/articleId/273/categoryId/16/Menu/1/Link/13/The-Internet-of-things.aspx • Internet of Things covers different modes of communication: things-to-person communication and thing-to-thing communications, including Machine-to-Machine (M2M) communication that potentially concerns 50-70 billion ‘machines’, of which only 1 % are connected today. These connections can be established in restricted areas (‘intranet of things’) or made publicly accessible (‘Internet of things’). http://ec.europa.eu/information_society/policy/rfid/documents/commiot2009.pdf 12) Objects (things) become progressively addressable/connectable and more intelligent

16. Telco vs Webco The Importance of Data • Given the rapidly expanding firmament of OSPs (Online Service Providers) that collect and exploit user data, mobile operators need to evaluate their own user data management strategies rapidly. • Do the mobile operators want to contest or complement global Internet companies? http://www.newsfactor.com/story.xhtml?story_id=020001YT121C 13) Data owned by the mobile operators represent a value that may be exploited offering contextualized services or offering value added information to third parties Inferring new Data from Data http://news.bbc.co.uk/2/hi/7433128.stm

17. Telco vs Webco The Network of the Future • 90 % of the data traffic is not related to communications services, but to data retrieval http://innowave.blogspot.com/2007/05/new-way-to-look-at-networking.html • The use cases that drove the development of the current Internet architecture have been node-centric, e.g., to enable remote connections to a certain network node (node-centric paradigm). However, the usage of the Internet has changed and focus has shifted towards accessing and disseminating information/contents. For these use cases, the source (i.e., network location) of the information/contents is rather irrelevant from a user’s point of view. The user cares about getting the right information/content as fast as possible. This paradigm is called “information/content centric networking”. http://www.ieeelcn.org/lcn34demos/lcn-demo2009_dannewitz.pdf • UGCs (User Generated Contents), created and indexed by the users, are part of those data • Other providers (e.g. Google) can become the Broker and dispatcher of UGC and users can help it in indexing all the content!!! 14) Users demand for services based on information/content getting the right information/content as fast as possible

18. Telco vs Webco What APIs to Expose and Fragmentation • Opening up interfaces to third parties is enriching the service portfolio of Operators • What APIs are used? • Telco point of view • What is the market span of a TELCO ? • Regional. Even the biggest are not present all over the world!! • How many APIs in the TLC ? • Tens!!! • Why ? • To differentiate the offering of each single Telco and for interoperability • Webco point of view • What is the market span of a WebCo ? • Global. Everyone can reach: www.damnsmallwebco.com • How many APIs in the Web ? • Thousands!!! • Why ? • To differentiate the offering of each single WebCo • Other provider (e.g. Skype) could open up its gateway, allowing services to mash-up with other web service APIs. • http://recursosvoip.com/bloge/2009/11/09/can-they-turn-skype-lite-into-a-skype-platform • 15) Operators are competing with other actors on offering APIs to the developers community

19. Cloud computing • Cloud Computing is a technology able to offer the network storage and processing capabilities based on Web Mechanisms • Applications are able to use resources made available by networked processing or storage “clouds” (autonomous systems). • Different functions span over computing clouds. • The network is a sort of computer that offers capabilities on demand. http://dougfloyd.wordpress.com/2007/10/ • The cloud computing market adopts a traditional business model: the pay per use, i.e., a customer is charged based on storage and computational resources being used • Web 2.0 pushes for an increased virtualization of resources into the web: • WebOS • Applications that do replicate an OS in the network • Rich Internet Applications • Networked applications whose functions are similar to those of Desktop Applications • 16) Mobile devices may be able to purchase resources from the cloud; SaaS (Software as a Service) may impact the service offering to mobile customers

20. Summary of considerations and mapping into OMA activities* (1/2) 1) Voice and Messaging/SMS generate the most of total mobile revenue • CPM/CAB and Push over SIP for Messaging, Mobile Email, APIs activity 2) Access information using browser, access e-mail and access social networking continue driving mobile Internet adoption. • Browsing, New activity related to social networking? 3) The number of mobile users connecting using a USB modem plugged in a PC is growing • Device Management, 4) The fastest growth in revenues has come from mobile services offered to Corporate users • New activity related specific Corporate services? 5) User Experience is a key for attracting users • Look and Feel Customization 6) More complex devices are available on the market and need to be managed • Device Management, Smart Card Web Server, Client Side Enabler APIs 7) New actors (WebCos) as Service Providers for final users, using the mobile network as transport facility • APIs activity 8) Users may like more flexibility on packaging services in terms of charging • Charging *) mapping is not exahustive and has to be considered as a first draft

21. Summary of considerations and mapping into OMA activities* (2/2) 9) Users may not want to care about the connectivity, but they want an easy “service roaming” • Device Profiles Evolution, Secure User Plane Location 10) Additional opportunity for operators on connecting end-users with 3rd party services, and getting paid by the 3rd party for doing so. • APIs activity 11) Peer-to-Peer is a type of traffic growing in the mobile network too, that may be a threat or an opportunity for mobile operators • APIs activity, Mobile Search Framework, Converged Personal Network Service 12) Objects (things) become progressively addressable/connectable and more intelligent • Secure Content Identity Mechanism, Converged Personal Network Service, New activity related to Internet of Things? 13) Data owned by the mobile operators represent a value that may be exploited offering contextualized services or offering value added information to third parties • Service User Profile Management, Device Profiles Evolution 14) Users demand for services based on information/content getting the right information/content as fast as possible • Dynamic Content Delivery, Categorization based Content Screening Framework, Mobile Spam Reporting, Mobile Search Framework 15) Operators are competing with other actors on offering APIs to the developers community • APIs activity 16) Mobile devices may be able to purchase resources from the cloud; SaaS (Software as a Service) may impact the service offering to mobile customers

22. Conclusion • Evolved mobile technology offers new market challenges and opportunities to operators • The market is evolving and operators are to face innovative scenarios • A list of considerations (not exhaustive) identified in this presentation • OMA should drive the challenges to exploit the capabilities enabled by new technologies on providing more appealing services to end-users … all-IP systems must become a winning card for operators!