Head to Head - The Battle between the Bellheads and the Netheads for control over the CyberSphere

Head to Head

The Ideological battle for control of the Information

Sphere

Agenda 1.  VoIP and IM applications

2.  The Digital Value Chain

3.  Bellheads vs. Netheads

4.  Air interface technology classification

5.  Core network classification

6.  Value added services

7.  Strategic Business decisions for the future

VoIP and IM Applications

IM applications

The Digital

Value Chain

App. or Content provider

Portals Web Core ID & Billing

Intel Edge

Local loop

Users Hard OS Browser App.

The Digital Value chain

Bellheads vs.

Netheads

Bellheads •  Bellheads are the engineers and

managers who grew up under the watchful eye of the Traditional Telephone company and who continue to abide by her practices.

. They believe in solving problems with

dependable hardware techniques and in

rigorous quality control.

Netheads •  The Netheads are the young Turks who

connected the world's computers to form the Internet.

•  The believe in flexible and adaptive routing instead of

fixed traffic control.

Grew up on Internet with IP.

Aligns with open forums like the IETF.

Individuals want to be active participants.

Grew up in Telcos with TDM.

Aligns with formal UN and ITU structures.

Prefer closed communities and “old-boy” relationships.

Bellheads vs. Netheads

Expect it to be cheap.

Want an open and unregulated playing field.

Let us see how this network evolves itself organically.

Expect to pay for quality.

Prefer strong regulatory involvement and protection.

Want to steer the future network evolution.

Bellheads vs. Netheads

Works from a new business model: always on, the world is a large free calling area.

Works from the existing business model of telephone calls – time x distance x bandwidth = revenues.

Relies on international settlements to allocate revenues between carriers.

Controlled vs. Open

The network ends in the end-user’s device.

Intelligence is on the edge of the network.

Protocols are end-to-end, and open.

The network ends in the call agent.

Intelligence is build into the core of the network.

The protocols it operates upon are proprietary, and not end-to-end.

Controlled vs. Open

The network ends in the end-user’s device, the end-user can define services.

Substitutes speed (bandwidth) for Quality of Service (QoS) and provides best efforts service.

All ‘state’ is kept away from the end-user’s device.

Provides Quality of Service assurances.

Controlled vs. Open

Internet Telephony is a part of Next Generation Internet Services, whose nature will be various and unpredictable as was the addition of the World Wide Web on top of the Internet.

IP Telephony is a subset of Next Generation Networks, but, in view of its master-slave design philosophy, services continue to be defined from the centre of the network.

Controlled vs. Open

Clashes of opinion

•  What do you say of the fact that you cannot provide different charges for the services making use of IP packets:

•  The Bellheads: The Internet Protocol was poorly designed because you cannot charge for different value added services.

• The Netheads: "IP is hard to charge for? That's not a bug, that's a feature!"


Portals Web ID & Billing Core Intel

Edge Local loop



The Digital Value chain Open

Network Open

Network

Controlled Network


Portals Net Core ID & Billing

Intel. Edge

Local loop

Users Hard OS Browser


Billing Portals Net Core Local loop

Users Hard OS Browser Intel. ID App.

App.

Air Interface Technology

Evolution path of fixed and mobile networks

Mobile wireless

voice

Mobile wireless

Internet access

Mobile wireless

IP based multimedia

IP data services over

fixed networks

IP services over Broad wireless

Access with Nomadic mobility

Enhanced IP and Voice services (real time, QoS)

Broadband Mobile multimedia services

via packet-based network

Main Wireless Technology Trends

100 Mbps 10 kbps

802.16d (N)

802.16e (Mobile)

WMAN/WWAN (N) (WiMAX Forum

Intel, Motorola, etc)

Loca

l Are

a

Fixe

d (F

)

Wid

e A

rea

Mob

ile (M

)

Cov

erag

e / M

obili

ty

Met

ro A

rea

Nom

adic

(N)

CELLULAR INDUSTRY GENERATIONS

3GSM/UMTS : R99 to HSDPA/HSUPA CDMA 1x : EV-DO, EV-DO RevA

Mobile BWA

(OFDM EVOLVED 3G)

Other “disruptor” entrants IP Wireless (M / N) Navini (F/N / M) Arraycomm iBurst (N / M)

2G 2.5G 3G

802.11 g

802.11b

WLAN / WiFi (N)

NEXT : Ad-hoc Mesh

Networks

“4G” Air Interfaces e.g. FLASH-OFDM (Flarion) (M)

Data Speeds span a wide range

4G – area of options

Fixed Internet

Wireless Internet

Realtime Internet

Wireless Mobile Internet

NG Internet

GSM / GPRS UMTS UMTS + UMTS+

+

NG Mobile

Wireless Packets

Some IP

Optimum IP

More IP

Pure IP

New IP

UMTS Evolution

4G area of options

best effort IP

wireless access nomadic mobility, QoS, multimedia

incl. voice

carrier-grade realtime voice,

E2E-QoS

MBMS, WLAN/UMTS interworking, push,

presence, IMS Phase 2, packet bearer enhancements

seamless multi-service mobility,

continuous mobility in wide area

E2E-IP to the MS, IP in CN

IP in RAN, IP based

service provisioning

(IMS), HSDPA

native IP routing to mobile host, IETF

protocols only

regional subarchitectures,

isolators, protocol heaps

dynamic network

composition

Mobile technologies

Local Loop

Hardware

Intellectual property Gorillas

GSM

GPRS

Edge

CDMA

HSDPA /HSUPA

CDMA 2000

EV-DO

EV-DV ??

OFDM

(2010?)

(2005)

ITU Standardisation

Nomadic technologies

Local Loop

Hardware

OFDM

Hardware Chipsets in

PC’s and Mobiles

WiMAX IEEE 802.16d

?

WiFi IEEE 802.11b

WiFi IEEE 802.11g

WiMAX IEEE 802.16e

OFDM

(2010?)

Air interface technologies

Gorilla game Air interface Commoditisation

Standardised Technology

Controlled Network

Philosophy

Open Network

Philosophy

3GPP

• GPRS • EDGE • WCDMA • HSDPA

IEEE

• WiFi • WiMAX •  IEEE 802.11n (MIMO) • Mesh Networks (802.11s)

Air interface technologies

Gorilla game Air interface Commoditisation

Standardised Technology

Controlled Network

Philosophy

Open Network

Philosophy

Technology Focused Solutions

Extended Value chain

focus Proprietary Technology

?

Flash OFDM iBurst End to End IP connectivity, … but a proprietary air interface.


The coming Power Battle in the 4G Digital Value chain



Edge Local loop


Intel

Qualcomm

Core Network Classification

Signaling Network Evolution

A brief history of telecommunication

1890- 1990

1990- 1999

2000 2005

2015 2020

2005 2015

LEGACY SWITCHING CONCEPT

•  Monolithic TDM entity for circuit switching, control and signalling

•  Time and Space Switching of ISDN standard channels (64kb/s)

•  Local processor control of line interfaces, switching network and

signalling

•  Entrenched switch suppliers tend to develop by adapting legacy circuit

switches

Line/Trunk Interfaces

TDM Switching Network

Line/Trunk Interfaces

Central Control

Bearers

Circuit & Packet

Signaling

Bearers

Circuit & Packet

Signaling

Control Buses

SOFTSWITCH CONCEPT

•  Disaggregated functional units for control, signalling and bearer interfaces

•  Multi-Protocol IP backbone transports bearers, control and signalling

•  Single softswitch can control a wide area of distributed media gateways

•  Softswitch manufacturers tend to be new entrants developing IP switch fabric

•  Key concept in NGN (Next Generation Networks)

Media Gateway

Media Gateway

Softswitch Control

Bearers

Circuit & Packet

Signaling

Bearers

Circuit & Packet

Signaling

IP Backbone

NEXT GENERATION NETWORK (NGN) CONCEPT

•  “A converged high speed packet (IP) based network with multi-purpose (access agnostic) switching on common platforms for multiple applications and services (voice, data, video, multimedia)”

CORE TIER High speed IP- MPLS Core routers/switches

& transmission

Local Loop ACCESS TIER

High speed / Broadband

INTELLIGENT EDGE TIER Softswitches, Media

Gateways, Application Servers, Routers, etc

APPLICATION LAYER SOFTWARE / SERVERS Standard Telecoms Services (voice, data) Media Services (messaging, streaming)

Location Services, PoC, Legal Intercept, etc API’s to Call Control

CALL CONTROL LAYER Signalling Protocols for call and switching control

(connection oriented / connectionless) delivery of Application Layer services

SS7, SIP, CAMEL

SWITCHING LAYER

Bearer Media Gateways to IP Backbone

SOFTSWITCH MODEL

Why IMS?

Expressive Power Number of Developers

Scriptable

API’s

Protocols

VB, JavaScipt

INAP, ISUP, SIP, MAP

C++, Java Parlay Sockets

millions

500 000

6000

PTT can be implemented via a variety of open-source applications running on handsets.

Peer to peer functionality.

No value added billing required.

The IMS can facilitate PTT via the PoC standard that 3GPP agreed upon.

PTT is provided via an intelligent core.

Flat fee billing.

Controlled vs. Open

PTT Controlled vs. Open

IMS



Edge Local loop



IMS

Value Added Services



Edge Local loop


Competitive landscape

Value added Services

Enable value added services that only need a IP connection to function.

Builds business models on subscription or pre-paid functionality.

Control value added services from within the network.

Builds business models on micro-billing functionality.

Controlled vs. Open

SMS / MMS Bypass leaks revenue and profit

R2400 / MB

R180 / MB

Downloadable applications bypasses central control

R2400 / MB

R180 / MB

R0.60 / MB

Intelligent session scenarios

R 180 / MB

R 0.005 /msg

The same is happening to: Vodafone portal content and Voice traffic

Core Need MUI

Program OS

Local Loop Intelligent Edge

Core Tier Billing Portal

Hardware

Cont. AGR Cont. Create

Technology roadmap based on the Digital Value Chain

Vodafone

Vodafone Vodafone

Vodafone

Nokia Symbian Vodafone

Safari

Vodafone Nokia

MS

MS MS

Core Need MUI

Program OS

Local Loop Intelligent Edge

Core Tier Billing Portal

Hardware

Cont. AGR Cont. Create

Technology roadmap based on the Digital Value Chain

Vodafone

Vodafone Vodafone

Vodafone Vodafone

Vodafone

V. Branded

Vodafone

Vodafone

MS

MS MS

Nokia Symbian

Safari

Safari

Vodafone Nokia

Active WiMAX support



Edge Local loop


Income distribution in the value chain

Automated travel logging

Connectivity Competition.



Edge Local loop


Connectivity scenarios

WiMAX Mesh ISP



Edge Local loop


Connectivity scenarios

WiMAX Mesh

Media companies

Mesh Networking

Strategic Business Decisions

for the future.

The need for ambidextrous organisations

Niche Innovation

Incremental Innovation

Revolutionary Innovation

Technology linkages Enhances Destroys

Destroys

Market Linkages

Enhances

Source: Matrix based on the ideas of Abernathy and Clark, Research Policy, 14, 3-22,

Architectural Innovation

Crossing the chasm

The Chasm

The Early

Market

The Mainstream

Market

Tornado

Bowling Alley

Conclusion



Edge Local loop
