How to differentiate with 3G, attract
subscribers and grow revenues
Portugal Telecom Inovação Experiences and
Perspectives
João Paulo Firmeza
P T
Inovação
São Paulo, 24 May 2006
1
P T
Inovação
:: Agenda
Portugal Telecom Inovação Overview
Mobile Broadband: Some issues
EV-DO and Services: Our Experience
Some standing issues
Final Remarks
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
2
Inovação
P T
Portugal Telecom Inovação Overview
The strategic research and innovation company from Portugal
Telecom Group
–
–
Founded in 1999, from the former PT R&D labs, Marconi Labs and
INESCTEL (a Portuguese telecom research institute)
Former companies with more than 50 years of experience on
telecommunications in Portugal and abroad
Key company in the group, present in most of the innovative
services and technologies developed internally
–
–
Has developed the world first commercially successful mobile prepaid
service based on IN standards (and the first prepaid service in Latin
America also)
PT Inovação technologies are present in every PT group operation in
the world (Europe, Africa, Asia and Latin America)
PT Inovação has a huge experience in developing advanced 3G and
B3G services, performing wireless technology evaluation and
network planning
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
3
P T
Inovação
:: Agenda
Portugal Telecom Inovação Overview
Mobile Broadband: Some issues
EV-DO and Services: Our Experience
Some standing issues
Final Remarks
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
4
P T
Bandwidth: Is only important if customers can do
something with it
Inovação
Selected cellular data Likely user receiving experiences (seconds)
applications
GPRS
EDGE
1xRTT WCDMA 1x/EVDO
Basic text (email)
3
8
3
1
1
Enterprise dispatch
14
6
6
2
1.5
MMS with picture (eg.
news, entertainment)
14
6
6
2
1.5
Synchronised PIM (eg.
Calendar)
14
6
6
2
1.5
Field workforce
automation
22
3
2
Download video (sport,
trailers)
10
40
46
N/A
N/A
N/A
Polyphonic ringtones
3
1.5
1.5
Online shopping (to
get to for 1 page view)
21
Video telephony
Web browsing (1 page
view)
107
9
14
9
6
14
9
Real time
Real time
480 KB/min 2004/2005
9
6
0.5
0.5
3
2
2
1.5
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
DoCoMo
proved - it’s
not about
speed! [9.6
kb/s]
[85% data
penetration &
25% ARPU]
* Source (Telstra, Nortel)
5
P T
Inovação
Technology evolution and Pricing:
One key to attract subscribers and to create real revenue
The past years shown a relatively poor adoption of IP based
Wireless Data Services
– Main reasons
‰ Small Bandwidth and low performance of enhanced services
compared to the evolutions on the fixed side (xDSL, Cable, etc)
‰ Lack of functionality on the mobile devices to make attractive and
user friendly the usage of this kind of services
‰ Cost per bit high compared to fixed networks, pushing operators to
practice “less proper” prices
‰ Complex plan and tariff schemas, confusing costumers (pay per
byte, pay per time, pay per event, combination of those, etc)
The exception were the SMS based services, mainly because
– Very few bandwidth is required Æ almost no price per byte
– Support in almost every device
– Proper and simple pricing schemas were adopted by operators
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
6
Inovação
P T
Technology evolution and Pricing:
One key to attract subscribers and to create real revenue
3G technologies and how they affect pricing and as consequence the success
of the new mobile services
–
–
1xEVDO (and W-CDMA) with its recent bandwidth upgrades are reducing a lot
the former Cost per byte on traditional cellular access networks
Mobile devices are becoming more and more powerful
‰
‰
‰
Great processing and memory/storage capabilities
User friendly user interfaces
Adoption of industry standards making interoperability between services, service
delivery platforms and devices easier (eg. OMA standards, and 3GPP/3GPP2
convergence)
Operators (starting in Europe and North America) have initiated an huge change
in its traditional pricing models for wireless data services
–
–
–
Adoption of flat rate plans not dependent on bytes consumed or time spent
Access pricing that can compete with the fixed broadband access practices, not
forgetting the implicit value of mobility not possible for the fixed competitors
Aggregation of value on selling content, where costumer pays for what it gets
‰
‰
Simple payments per purchase event,
Complex plan and tariff schemas are phasing out, and as consequence customer is
becoming more confident and is starting using the services, creating real revenue
What about voice (VoIP)?
–
–
Today the existing charging principles for voice can be kept
Be aware of free/flat rate VoIP services becoming available on the Internet
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
7
Inovação
P T
Key Attributes of 1xEV-DO
Speed: The real Wide Access Wireless Broadband
Today, but you need to have high bandwidth
requirements; not every service has those requirements
Easy Deployable: If you are already a CDMA operator
Rational technology investment: If you are already a
CDMA operator
–
Not an option if you are a GSM operator
High Security: Using the inherent CDMA security
Ideal for connectivity based services
–
–
–
–
Wireless Internet
Wireless VPN access
Large file transfers and e-mail attachments/sync services
High bit-rate multimedia (video streaming, video
telephony)
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
8
P T
Inovação
:: Agenda
Portugal Telecom Inovação Overview
Mobile Broadband: Some issues
EV-DO and Services: Our Experience
Some standing issues
Final Remarks
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
9
Inovação
P T
1x EV-DO: PTI vision on Target Services
Connectivity Services
–
Wireless Internet Access
‰ Rural Areas where fixed BB access is expensive
‰ High populated Urban Areas with high connectivity needs
(corporate market)
–
Remote office services
‰ Wireless E-Mail and Sync services
‰ High bandwidth mobile VPN Access
Multimedia Services
–
–
Content Delivery (Video and High Quality Audio/Music
download, streaming and broadcast)
IMS/MMD Multimedia communication services (AV
telephony, AV conferencing, AV messaging)
For most of the rest 1xEV-DO bandwidth contributes only
for a slightly better user experience (reduced transfer
times)
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
10
Inovação
P T
1xEV-DO: Connectivity Services
Connectivity Services
–
From our experience, 1xEV-DO (rel. 0 and rel. A) and
other similar access technologies (like HSDPA) allow
finally the implementation of the true WISP
‰ Cost per bit finally became attractive to operators and
costumers
‰ Mobility is the key differentiator from fixed Internet or VPN
access
‰ In PT Group operations were flat rate plans at reasonable
prices became available, the usage of the network for this
kind of services exploded
–
What about WiMAX?
‰ QoS? Bandwidth at high speeds?
‰ Very promising but still to prove
‰ Converging WiMAX to 3GPP/3GPP2 network architecture
would help
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
11
P T
Inovação
Video Streaming Experience
In our European Operator (TMN/Portugal) one of the top
services involve streaming of media content (mostly video
content)
–
–
Several types of clips (Sports, weather forecast, adult content,
comics, etc)
TV content (a wide offer of live channels and on-demand)
Video streaming is a very challenging service
–
–
–
–
A real Differentiating service for 3G Networks
Different QoS levels and user expectations
Different levels of maturity on the device side
Different options in terms of charging models
In PT Group CDMA operation (VIVO/Brazil), video services
were launched 1 year ago supported in a platform delivered
by PTI also with very good results
–
Despite the fact that fewer CDMA streaming compliant handset
models are available compared to the W-CDMA world
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
12
Inovação
P T
Media Streaming Services over 1xEVDO
Service Evolution
Live broadcasting services are a very appealing service,
but before rel. A they could be expensive to delivery
(over Unicast or even MCBCS rel. 0)
Advantages of moving to 1xEVDO rel. A
–
–
–
Platinum Multicast support Æ Great advantage for Media
Streaming services
QoS allowing the differentiation of traffic types on the
network
Increased bandwidth (up to 3,1 Mbps Downlink and 1,8
Mbps Uplink)
Evolution of the 3GPP2 Multicast and Broadcast Service
(MCBCS) today definitely requires the new features of
rel. A
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
13
P T
Inovação
1x EVDO rel. A: Important new features
Priority based QoS
Platinum Multicast
– More Capacity
– Better air channel
management
* Source (Qualcomm)
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
14
Inovação
P T
Download Services: Music Downloads
The increased bandwidth of EVDO enables the deployment of real
Mobile Music Download services
–
–
–
Full MP3/AAC tracks with CD quality
Reduced download times making the service very user friendly
Direct delivery to MP3 enabled handsets
PTI is providing a strong platform (MMBox/DiNO Framework) to
handle this kind of services to PT Group operators allowing them to
have:
–
–
–
–
Very Flexible content management Mechanisms and content ingestion
interfaces
OMA DRM compliant digital rights management and strong revenue
protection mechanisms
Very rich business models that take advantage of OMA DRM
mechanisms like OMA DRM Separate Delivery with Super Distribution
Support of Multimodal Content Discovery Interfaces
‰ WAP, WEB, Voice, SMS, etc
In CDMA Arena, handsets still lack some important features
compared to the GSM/W-CDMA world
–
–
Eg. Lack of wide spread Full DRM support
MediaFLO´s CA (proprietary Qualcomm DRM) ??
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
15
P T
Inovação
3GPP2 MMD (and 3GPP IMS): An Architecture to support
Interactive Multimidia services on existing 1xEVDO
Implementations
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
16
Inovação
P T
IMS/MMS VoIP and Video Telephony Services
Advantages of 1xEV-DO rel. A
1xEV-DO rel. A: Advantages for VoIP and VToIP
– Priority based QoS
‰ Enables Voice traffic to be prioritized on the access network; Voice
and VToIP are Real Time services, very sensible to delay, jitter and
packet losses on the network
–
Smaller latency than previous DO release
‰ In rel. 0 latency is always >100ms, not sufficient for high quality
voice and VT services;
–
Increased bandwidth on the Uplink
‰ Key issue, since VoIP and VToIP are symmetrical services
–
Better handover times in packet mode
‰ In rel. A, handover latency was reduced to ~ 40ms in packet mode
PTT Voice service over IP is very different from RT Voice/Video
Telephony, and does not raise any of the upper issues
– PTToIP services are commercial in several PT Group operations
for some years
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
17
P T
Inovação
Redes
3G
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
18
Inovação
P T
Example IMS/MMD Services Developed by PT Inovação:
Vídeo Portal, FMFM
Video Portal
–
Video Telephony accessed
portal (via SIP) that provides
video based multimedia
content
Find Me Follow Me
(FMFM)
–
Rule based handling of VoIP
Calls, supporting dynamic
redirecting and rule based
call forwarding
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
19
Inovação
P T
Example IMS/MMD Services Developed by PT Inovação:
Video Conference, Unified Messaging
Audio/Video Conference
–
IMS based Conferencing
application supporting real time
group multimodal
communications (voice, video,
images, text, emoticons)
Unified Messaging
–
Universal access to a unique
mailbox for all types of messaging
‰
‰
‰
‰
–
Voice Mails
Video Mails
E-Mails
SMS, MMS
Voice/Video Mail Interface access
via SIP/IMS
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
20
P T
Inovação
Example IMS Services developed by PT Inovação
Interworking between 3G Videotelephony and PC based videotelephony
Interworking between the Instant Messaging platform
from a PT group ISP, SIP based Networks and IMS
VT support on the IM client
Interworking with 3G (W-CDMA) VT (H.324M) and IP VT
(H.323 and SIP)
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
21
Example IMS Services developed by PT Inovação
Inovação
P T
IMS Based vPABX/IP Centrex
vPABX/ IP Centrex
–
–
Software based
application that replaces
traditional fixed network
based PABX systems
and uses mobile devices
Main Features
‰
‰
‰
‰
‰
‰
‰
‰
Short number dialing
Auto Attendant
Attendant (call transfer, call
reroute, sending SMS, sending email, chat etc)
Voice Activated Dialing (Yellow
Pages)
Automatic Call Completion (ex.
location based)
Explicit Call Transfer
Do Not Disturb
etc
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
22
P T
Inovação
:: Agenda
Portugal Telecom Inovação Overview
Mobile Broadband: Some issues
EV-DO and Services: Our Experience
Some standing issues
Final Remarks
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
23
Inovação
P T
Some Standing Issues
CDMA2000 technology is evolving fast on the network
side. 1xEVDO recent evolutions are good examples
But slower on handset development
–
Less features and less models than in W-CDMA
The bandwidth made available needs appropriate
services, otherwise is poorly useful
Video services are a very important aspect
–
–
Broadcast services may tend to move to different bearer
technologies (ex. DVB-H); Multicast over DO is assuming
a very important role and should be commercially
anticipated
VideoTelephony services should be quickly made available
on CDMA; VT is a basic W-CDMA service today
Convergence and network level integration with IEEE
802.x standards should be a target for the industry
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
24
P T
Inovação
:: Agenda
Portugal Telecom Inovação Overview
Mobile Broadband: Some issues
EV-DO and Services: Our Experience
Some standing issues
Final Remarks
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
25
Inovação
P T
Final Remarks
1xEVDO technology helped Vivo in a very efficient way
to increase the bandwidth made available to its
customers and to start deploying new services
unavailable to the existing GSM based local competitors
Recent evolutions on 1xEVDO are very promising (rel A,
B and C)
1xEVDO is allowing PTI to develop innovative services
that take advantage of this bandwidth
–
Most of the available high bandwidth services available in W-CDMA
(UMTS) networks and already deployed in Europe can be easily ported
to CDMA 1xEVDO
Real convergence between W-CDMA and CDMA2000
standards would bring huge benefits to mobile operators
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
26
P T
Inovação
:: Thank You
João Paulo Firmeza: [email protected]
© 2006. Reservado, não reproduzir nem permitir o acesso a terceiros sem a autorização prévia da PT Inovação.
27