The value chain and addedvalue networks

1
The value chain and added-value networks
2
Phone business profitabilityOperators sell
services, not transmission
Compare the price SMS vs. voice in term of
transmitted bytes !!!
2. PERSON-to-MACHINE
IVR
3. NETWORK
Prepaid / Postpaid VPN 800-900
Distribution of most terminals (pre-configuration)

• PERSON-to-PERSON

Voice call Voice mail SMS
Services are performed in the network, coupling s
ervices ltgt network
3
Phone business profitabilityThe operator
controls the value chain
terminal
Network with Services
content
Terminals distributed by operators
Voice provided by the user
4
Internet and a new value chainThe operators
controls transmission

• Internet creates a open and universal
  transmission layer IP
• Services and Transmission are decoupled
• Person-to-Machine communication explodes

terminal
Network Line
content
Portal services
Network IP
5
Internet and a new value chainThe services are
externalized out of the operators network
Portal Content providers
2. PERSON-to-MACHINE
3. NETWORK
Directory Prepaid
1. PERSON-to-PERSON
E-mail Instant Messaging Phone over IP Video over
IP
Most Services are performed out of the
network, coupling services ltgt terminal
6
Terminal-based servicesPhone services /
Pre-paid offer
7
Terminal-based servicesPhone services / A
Recent E-Mailing Ad Campaign
From "Delwyn Kayes" ltdkayes_at_callserve.com To
ltherveamosse_at_hotmail.com Subject Les nouvelles
de Microsoft - MSN Messenger... Date Fri, 8 Mar
2002 042256 -0000     Cher client   Pourquoi
payer les tarifs exhorbitants de France Telecom
pour vos appels locaux et internationaux
(téléphones fixes et portables) quand il est
possible d'économiser une fortune avec le
Téléphone Internet d' MSN Messenger?   Utilisez
votre PC pour apeler votre famille et vos amis.
Il ne vous coûtera que 0,05 Euros la minute pour
appeler le Royaume Uni, les Etats Unis
d'Amerique, le Canada, l'Allemagne, l'Espagne, la
Belgique, la Hollande, ou partout en France si
vous utilisez votre Téléphone Internet - avec
France Telecom, le tarif serait à 0,23 Euro par
minute!   Si vous signez maintenant, vous
recevrez le fantastique 'New Starter Pack'
COMPLETEMENT GRATUIT! Ce pack contient tout ce
qu'il vous faut pour démarrer   Un
casque-micro multimédia GRATUIT (d'une valeur
d'environ 16 Euro) ou 20 de votre temps
d'appels GRATUIT et un livret d'instructions
GRATUIT   Et comme vous avez déjà le logiciel du
Téléphone Internet d' MSN Messenger prêt à
l'emploi depuis le 22/12/2001 141419, vous
pouvez dès maintenant vous préparer à téléphoner
à vos parents et amis pour moins cher.   Utilisez
le Net pour économiser et votre PC pour
téléphoner dans le monde entier dès
maintenant.   Pour découvrir nos tarifs
intéressants vers les portables et autres
destinations, cliquez sur le lien suivant
www.callserve.net/homepage.asp et selectionnez
"our low rates".   Bavardez au téléphone! Delwyn
Kayes  
8
Terminal-based servicesPayment
9
Terminal-based servicesNetwork services
without the network!
Raw Transmission
Raw Transmission
10
A proposal for the Internet futurePutting more
value in the network
11
Developing the added-value of the networks
2. PERSON-to-MACHINE
3. NETWORK
1. PERSON-to-PERSON
12
A Vision for the future smarter terminals
connected by smarter networks

terminals
Sites, portals in a tough competition (Operators
but mainly Medias MSN, Yahoo, AOL, Wanadoo,
Tiscali)
20 proxies to be inserted in series in the
network to add value to the exchanges crossing
the network
Increase the value in the operators  reserved
domain , the  line  itself
13
What is a proxy?

• A proxy is an Intermediate node in the data flow
• An IP network is made of
• Transmission
• Nodes
• routers (to orient the flow)
• proxies (to work on the flow)
• Examples of proxies
• Cache, firewall, network anti-virus, WAP gateway

14
Inventing the proxy platform

• Nextenso Proxy Platform designed to develop and
  run proxies
• Pipe-line architecture specialized to work on the
  flow
• Applications are proxylets to be plugged
• Full scalability of the software cluster
• Fault-Tolerant by design

15
Nextenso Proxy Platform3 key advantages

• 1. Coherent Administration, for the lowest OPEX
• Just one platform to manage several proxies
• 2. Open Architecture, easily expandable to new
  services
• Toolkit to develop new proxylets to be plugged
  (by any development team)
• Architecture compliant with IETF standard
• 3. High-Performance, for end-users and CAPEX/OPEX
  
• The Operator must reach the best response time
  for end-users
• Impressive performance permitted from the
  specialization of the platform (e.g.,Nx WAP
  gateway vs. traditional WAP gateways)
• Much less hardware needed for the same traffic

16
Proxies in actione.g.1, Dynamic re-branding

• The operators bunch of services for its
  subscribers
• Operators applications  base 
• Partnership  kiosk 
• Any sites  connectivity 

Content providers as partners
Operator's Logo
Dynamic modification of the screen pages to
rebrand or co-brand the content
17
Proxies in actione.g.2, Dynamic colorization

• New handsets support color
• Wap sites are in black white (BW)
• BW services are not acceptable on color terminal
  (see the TV syndrom and the colorization of old
  movies)

Black white pages
Dynamic colorization of the screen pages
according to defined operators rules
18
Proxies in actione.g.3, Terminal-based content
filtering

• Each terminal has specific capabilities
• E.g., document format

The proxy adjusts the pages and the documents
(such as images type or size) according to
terminal constraints
19
Proxies in actione.g.4, Operator-level
authentication

• Operators can provide a single sign-on for the
  access to the on-line services
• Ease of use for the subscribers (see phone
  keyboards)
• Reinforce the role of the operator in the service
  delivery
• Protecting the customer database with blind
  identifiers

Operators Authentication server
The proxy authenticates. Then, it takes in charge
the authentication with the applications of the
partners
20
Proxies in actione.g.5, MMS, simpler and much
cheaper

• 1. Protocols translation
• 2. Charging
• 3. Store the mails
• 4. Support WAP traffic for MMS

• MMS is not SMS
• MMS is just an e-mail modified with specific
  protocols ( not compatible with Microsoft
  Outlook)
• A proposal supporting MMS with proxies and a
  standard e-mail server

Prepaid-postpaid systems
?
?
?
?
Nx MMS charging proxy
Fault-tolerant mail server
Nx MMS proxy relay
Nx WAP gateway
MMS protocols
E-mail protocols
MMS protocols
21
Proxies in action e.g.6, Radio-based Location
Calculator

• The system computes a more accurate location
  using several BTSs.
• The phone gets the radio parameters related to
  the surrounding BTSs (signal power, timing
  advance)
• From this information the location is computed
  triangulation

Location Calculator
Radio parameters
Enhanced Data flow
Data flow
22
Nextenso Proxy Platform pipe-line architectureis
optimized for the implementation of proxies

• The specialization of the platform permits
• More efficiency with a pipe-line platform than
  with a general-purpose layered platform
• More value from the platform itself reducing the
  complexity of each proxy (stability, creation of
  a proxy for a new business opportunity)

23
Proxies per domain

• Request Enhancement
• Location proxy
• Profile syndication

• Content Enhancement
• Re-branding
• Colorization
• Adaptation to the handset

• User
• Authentication
• Blind Identifier

• Payment
• Charging proxy

Services sites

• Protocols
• WAP gateway, WAP2.0 (I-mode)
• MMS proxy relay
• Push proxy
• Wireless Optimizer

• Protocols
• IBM Lotus Domino
• Microsoft Exchange

24
Summary

• Terminals are become more and more intelligent.
  Microsoft Nokia contribute to this evolution
  and this is a good thing.
• However, the danger is that operators' networks
  may be reduced to being "dumb transmission
  systems" as a result of this increased terminal
  intelligence
• So, it is necessary to reinforce the business of
  operators by balancing the development of
  intelligence in terminals by adding value to the
  network -- and better serving the end-users.
• Alcatel's latest lines of telecommunication
  systems embed innovative Internet functions
  designed to increase added-value services and
  generate more revenue from the network
  infrastructure.

25
Be Ready Now for Whatever Comes Next