Directions of telecommunications operators’ growth

1. Directions of telecommunications operators’ growth – business aspects Michał Wasilewski JA-Z 25.05.2011

2. Directions of telecommunications operators’ growth Agenda • Typical development dilemmas of telecommunications operators • Economical aspects of IPv6 deployment • Business models in mobile Internet access

3. Directions of telecommunications operators’ growth Plan • IPv6 • Reasons behind IPv6 • How to deploy? • Impacton the network • Business models used by mobile access operators • Current situation • A lesson from the Airline industry • Future oriented models

4. Directions of telecommunications operators’ growth Reasons behind IPv6 deployment • Pool of network addresses near exhaustion • CAPEX and OPEX getting higher • Government initiatives • Cooperation with others • No more new users • No more new devices CAPEX – capital expenditures OPEX – operational expenditures

5. Directions of telecomunication operators’ growth Number of devices connected to the Internet Jan 2011 - 818,374,269

6. Directions of telecomunication operators’ growth Number of sold devices in millions (2009) Source: Gartner, Information Week

7. Directions of telecommunications operators’ growth IPv6 migration process • User connectivity • Operator services (content provider) • Transport network • Gradual termination of IPv4 • Operations & Maintenance Simultaneous deployment Tunneling

8. Directions of telecommunications operators’ growth IPv6 migration process O&M User connectivity Content provider Transport network

9. Directions of telecommunications operators’ growth Howwill the network be affected? • Applications – those which do not implement third layer functions not affected (only a matter of working with new addresses) • User devices – highly affected, need to be updated (new as well as old methods of acquiring addresses) • User connectivity – depends on the service, not affected bellow second layer • Content providers – big impact • Operator based services – big impact • Transport networks – no difference • Firewalls, routers, switches – update of software and hardware • O&M – update

10. Directions of telecommunications operators’ growth Current situation on the mobile access market • Mobile Internet access devices reach mass user • Huge traffic growth in mobile networks • Classical models outdated

11. Directions of telecomunication operators’ growth Number of sold devices in millions (2009) Source: Gartner, Information Week

12. Directions of telecommunications operators’ growth Models used in the Airline industry • Similar service characteristics – perishable service: one-shot opportunity to sell access to bandwidth capacity, how we use available resources become the key factor for business • Dynamically changing needs • Solutions: • Low prices long before the flight • Prices go high when the number of available seets goes down • Moving resources where they are needed the most

13. Directions of telecommunications operators’ growth Future business models in mobile access • Problems: • Traffic needs depend on the daytime • Inefficient use of available resources – 80% of bandwidth used by 5 % of users (no individual control) • Price doesn’t depend on available resources at the moment • Solutions: • Profiles based on daytime, application • Individual control platforms

14. Directions of telecommunications operators’ growth Examples • In North America and Western Europe countries still old, flat-rate models • In Latin America and East Africa new models have been present for some time now • Poland: • Orange Free (free access during the night – „Hotel wygoda”) • Unlimited access to Facebook in Plus

15. Directions of telecommunications operators’ growth Contact: M.Wasilewski.0@stud.elka.pw.edu.pl http://mion.elka.pw.edu.pl/~mwasilew/