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Abstract
Over the past few years since the 3rd party application type services entered the telecom landscape, mobile operators have been chasing after the promised app revenue with a little less than desirable results in the midst of perceived threats from over-the-top (OTT) players. Despite the buzz, telcos were far from a comfortable position to benet from the app model. Telco appstore copycats made little impact against the popularity of centralized app stores of Apple and Google platforms. It merely helped push the upgrade of customers to signup smartphone data plans. One of the concerns carriers are struggling to contain is the fear of ending up being nothing less than a utility service i.e. dumb pipe. With commoditization of service and near stagnant revenue growth, carriers are at risk of nancial trouble if unavoidable capital investments do not match up when deploying next generation networks. Carriers urgently need to take action. Users today do not differentiate the applications and services, as they expect it to be part of an integrated experience regardless. Although no carrier has found the perfect solution, but there are no shortage of best practices to learn from. Given that service prices will continue to decline, its best for carriers to explore ways boost efciency as they set out to build new generation networks, rather than simply blocking out the non-traditional competitors that are multiplying. For a start, they will need to nd a business model that will help enable them to achieve all of the above with the right business models. Ofoading via Wi-Fi is one of the main ways carriers can offer their customers to faster speeds for data applications, especially in areas that have a high concentration of people, such as airports, stadiums and shopping centers, without the need for a large infrastructure investment or compromising the performance of 3G. In this fourth paper of a 5 part series, we take a look at how carriers can include Wi-Fi within their mobile strategy and make it possible for an addressable market for converged wireless experience by personalization of services; the aim to offer customers more than one way to connect to the Web, simply and at high speed with Seamless Ofoad approach.
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Contents
Overview 01
Change the Way of Mobile Broadband Dont Let Your Network Come Up Short Get Ready for Smart Service
02
05
Take Seamless Offload to the Road with Greenpacket Secured Integrative Experience
07
Conclusion
09
10
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Overview - 01
Overview
Strong demand for mobile devices with embedded wireless capabilities is fueled in part by more LTE rollouts. According to research rm HIS, smartphone is expected to account for 54% in 2013 of the total global handset shipment and will become dominant in terms of unit shipment. The declining smartphone prices and diverse model selection has spurred both lower-end and mid to high-end smartphones globally. The promise of LTE becoming the enabler of mass connectivity across information, content, people, machines, places and everything in between will create massive implications simply for the amount of data being generated and moved across mobile networks. Not forgetting the signaling load that will choke networks or at its worst cause service outage. Even with LTE, the need for complimentary networks such as small cells and Wi-Fi will play an important role. Not all networks will be 4G LTE and many still rely on 3G networks to carry the load and some are already converging networks for improved performance. Today, the average carrier faces challenges from multiple fronts; added CAPEX from deploying LTE and also spectrum costs, declining revenue streams, and managing a network under pressure from the data deluge pouring from tablets and smartphones that are designed to support bandwidth hungry usage like high denition video, gaming and many other sophisticated media formats. On top of that, carriers have to deal with uneven and less predictable usage patterns. Mobile data usage is no longer xed at a particular location, but happens anywhere at any anytime. This means the cost of delivery will remain critical for every carrier. Across all regions there is increased pressure to consolidate in order to gain the necessary scale needed to maintain protability. OTT services not only run on top of a network and puts stress on network resources, but also dilute the carriers revenue by enabling customers to talk, text and chat freely, while bypassing the carriers billed voice and SMS services. What bothers carriers is the ownership of their customers getting hijacked. The separation between network and services that is run on top of it is becoming more apparent. Services need not be bound by the network in todays OTT terms. The carriers are now forced to adapt new service structures or risk falling behind. Carriers can either choose to work with OTT or block them out, which the latter seems unwise.
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Considering OTT has a very low entry barrier and the fundamental model behind scalability of large numbers, carriers would have a better chance of keeping their business relevant by working with them. This is a unique opportunity for operators to pull together the necessary wireless connectivity using alternative technologies like small cells and Wi-Fi to sell more than just tariffs, but service experience that their customers want. The reality of complementary 3G-Wi-Fi ofoading is real and brings tremendous benets in operator networks. Data ofoading done correctly enhances the experience by addressing issues of connectivity, access, security, authentication and enablement of multiple service offerings.
Overview - 02
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Smartphones offer consumers a single device to meet all of their communication needs. Similarly, smart networks require tools that provide a level of visibility into network activities and resources deeper understanding of interactions between policy-control systems including provisioning of services. Data trafc generated by smartphone users needs to be differentiated to enable service differentiation and improve user experience while optimizing network resource utilization. Only with real-time and direct delegation of policy from the policy controller to these components can carriers monitor, differentiate and prioritize trafc according to user subscriptions and network conditions together with the assurance of inter-working between networks.
At a time when carriers recognize taking transformative measures to current business models in an increasingly competitive marketplace, relate to the end-user through relevant services and cut operating costs; they need to work as closely as possible with the broadening reach of the content supply chain and applications market. A logical step to effective management of operations will turn in the direction of a managed service model. Previously network- and services-driven, carriers now place its view of partnering providers of 3rd party service platform as the next logical step to optimization of service delivery. Carriers can bring their own unique capabilities to overcome competition and demand, where relationships between both parties can benet. In the 3rd party supply chain space, its all about working out equitable revenue sharing deals, brand equity and mass market reach as a start to treating partners as customers as well. Focus on enabling the Internet communication apps and getting the most relevant apps working well on smartphones brings value on the collaboration equation and stop trying to be actual content providers. Many carriers have implemented policy control to some degree and see opportunities to adapt new innovative offerings, delivered by end-to-end policy control and QoS, which allow smartphone operators to stimulate mass uptake of mobile data and broadband as they differentiate from their peers.
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IP SEC
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of the Customer Experience Intelligence solution platform from Greenpacket that aims to optimize the user experience through deeper understanding of applications, devices and environment in the areas of user analytics, network analytics and more.
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requirements, including the decision as to where in the network policy and local policy interact, reside, prioritized and how it will or won't be controlled. Seamless Ofoad nds its value in the way it consolidate the ownership, credentials, policy assignment and denition customized to give the degree of control that the operator desire without suppressing users expectations of neutrality and fair treatment of their rights as consumers. At the same time, it is also important for operators to defend its wall-garden services without discriminating and penalizing 3rd party services by charging a premium which may result in backlash. Value added services such as location-based services, m-wallet, parental controls, shared data plans are some unique services that users may highly value and unavailable through 3rd party services. Ultimately, it is the perceived value or the lack of it that primarily drives user expectations, depending on business model the operator operates. Seamless ofoad offers carriers the convenience of enabling. Secured access to Carrier, Partner, Public or Private Wi-Fi hotspots wherever available to create an automated experience to their customers Multiple platform service delivery and OTT delivery that takes on a different type of contribution to the customer experience Integrated experience to offer service bundles across multiple devices and ability to customize/personalize relevant applications, deeply integrated onto devices and working in collaboration across 3rd party services (where conict of privacy concerns should be succinctly addressed) other than carrier VAS
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Conclusion - 09
Conclusion
As most carriers move into mobile data models, the fear of voice charging becoming irrelevant is a blow to their business. So far, some carriers have responded to VoIP by blocking it, resulting in uproar of protests of the consumers and advocates of net neutrality. The alternative in this is to see VoIP and a host of other OTT services as an opportunity. It may seem counter-intuitive at rst to intensify the competition of the consumers fondness for such services by allowing it to run over their infrastructure and service offering, but there is more to it when looked at a different perspective that offers broad distribution. Operators can bring back the key relationship with their customers and radically boost low-revenue growth prospects, improve operating efciency and perfecting their bundled service pricing to differentiate what works and what doesnt in the longer term. Strong demand for mobile broadband modems and embedded connected devices, fueled in large part by LTE rollouts will see mobile broadband connections to grow 36% annually until 2015 as predicted by Gartner. It is not surprising that carriers will need to re-think their operating models to contain the right mix of heterogeneous networks and act fast. New IP driven inter-connection and roaming support such as trusted Wi-Fi ofoad and Hotspot2.0 and Next Generation Hotspot (NGH) are emerging to enable cellular operators to meet those increasing trafc demands of mobile users. Both trusted and un-trusted relationship adds a new dimension to the control of network selection and trafc routing policies to create a seamless experience. On top of that, client device behavior and its relationship with the core network should be wrapped around in an end-to-end core ability as it brings a range of use cases, imminent in todays diverse networks and avoid falling into the trap of building networks in silo carriers must instead use methodologies that exhibit true performance and measure user experience through connectivity, mobility and inter-operability through Seamless Ofoad approach. By creating a greater overlap in Wi-Fi network coverage and a greater variety of Wi-Fi networks that users can connect to, operators can economically manage the needs of mobile data ofoad without intensive capital expenditure as they build out newer next generation networks.
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