New Business Models for Network Operators

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New Business Models for Network Operators
ITU-T Workshop onNew challenges for
Telecommunication Security Standardizations"
Geneva, 9-10 February 2009

• David Goodman
• Profile Product Line Manager
• Subscriber Data Management, Converged Core
• Nokia Siemens Networks

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Content
Vision 2015
Subscriber Data Consolidation
Telco 2.0
Identity Management
Summary
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Vision 2015 The World Connected
Multitude of business models
Applications predominantly in internet
5 billion people connected
Broadband everywhere
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Vision 2015 The World Connected
Multitude of business models
Applications predominantly in internet
Subscriber-centered, information-driven
Broadband everywhere
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Vision 2015 The World Connected
Multitude of business models
Applications predominantly in internet
Broadband everywhere
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Subscriber-Centric Evolution
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Content
Vision 2015
Subscriber Data Consolidation
Telco 2.0
Identity Management
Summary
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Silo Networks, Silo Data

• Service providers have become detached from their
  real-time subscriber data which severely limits
  their capacity to appropriately interact with
  customers and partners.
• Allows new competitors emerging from the content
  or retail sectors to exploit the new
  possibilities of aggregate services coming from
  Web 2.0 communities or the convergence of fixed
  and mobile services.

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Silo Networks, Silo Data
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The Telco Inheritance

• At present, for many service providers, customer
  data is spread across many different systems
  often across different departments and in totally
  incompatible formats with all the ultimately
  unnecessary cost, efficiency, error, duplication,
  synchronization, support and integration
  overheads that accompany such an approach.
• Given the history of the telecommunications
  sector, such an inheritance has been unavoidable
• Whats important now is to make sure that the
  inheritance of data fragmentation doesnt
  continue to cause further complications and
  headaches in the future.

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Anytime, Anyplace, Anywhere

• As the metabolism of the whole industry gears up
  several notches at once, network architectures
  and their underlying IT systems must be able to
  respond in real-time to increasingly complex
  interactions as customers move between devices,
  access technologies, payment methods and even
  identities
• The future of telecommunications being predicated
  on an ability to offer speech, content and
  applications anytime, anyplace, anywhere to
  the same rigorous standards of service quality

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Holding The Vision

• This vision will be severely limited by an
  inability to bring together relevant subscriber
  data
• As customers move from cellular to WiFi networks
  or home PCs, their device preferences are lost
  and services become annoyingly inconsistent.
• As domestic broadband customers surf between
  their IPTV, web, email, RSS feeds and MMS, their
  service preferences and supporting data fail to
  transfer
• As tele-workers move between personal and
  business time during a normal day, they are faced
  with having to constantly re-key and re-log
  network identity information to gain access to
  the right environment.
• Service providers have limited ability to combine
  contextual information with interests,
  communities and content to offer attractive and
  premium-priced aggregated services.

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Identifying The Subscriber

• If a network operator is to make the essential
  next step towards providing what are truly
  personalized services, then a consolidated,
  real-time, de-fragmented picture of the
  subscriber must be available to act as the
  catalyst for rapid service creation, deployment
  and delivery

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Data Layer
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Standards-based Architecture

• An open, standards-based architecture that sits
  at the heart of the network creating a horizontal
  and unified subscriber data layer across all
  applications.
• Separating application logic from the subscriber
  data liberates and unifies customer data that is
  currently locked away in silo, closed and often
  proprietary systems.
• Through this unified approach, mobile, fixed and
  broadband service providers can take control of
  their subscriber information, unlocking and
  securely sharing data across an array of
  applications, networks and partners.
• By consolidating this data, applications are able
  to share one complete, rich and consistent view
  of the subscriber data instead of limiting its
  usage.

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Unified Subscriber Data
Directory
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Data Consolidation

• Data consolidation achieves this through several
  ways
• By creating one operator common data model,
  subscriber data can be harmonized across the
  network into one logical data layer, removing
  data inconsistencies and duplications.
• This ensures a distributed data architecture can
  be centrally managed throughout its life cycle,
  essential to the evolution and integrity of the
  data model.
• Where data cannot be consolidated, it is
  federated from silo data sources to bring it into
  one complete view
• All data appears to form one common information
  model, but may be stored in a third-party SQL
  RDBMS database
• By having one database, only one point of
  integration is exposed for all applications

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Simplification

• This simplifies subscriber and service
  provisioning, eliminates application integration
  complexity and means that only one database
  ever needs to be updated.
• Wasted network capacity is eliminated by
  simplifying network architecture, reducing server
  and storage requirements, and sub-optimal usage
  of database software licenses
• System resilience and scalability can be more
  optimally managed through data consolidation,
  delivering carrier-scale availability through a
  highly distributed real time architecture.

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Common Data Model

• Although putting everything into the same box
  delivers demonstrable savings, its from the
  flexibility in how subscriber data is structured,
  distributed, exposed and managed that the real
  tactical and strategic benefits accrue and
  through the promotion of a common data model
  tailored to an operators data requirements.

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Content
Vision 2015
Subscriber Data Consolidation
Telco 2.0
Identity Management
Summary
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The Telco 2.0 opportunity
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A Single Profile StoreTypical Operator Profile
Directory
Address
Buddies
?
User identities
CPE profiles
Subscriptions
Static Profile
Dynamic Profile
Pricing plan
Presence
Directory
Operational
Transactional
Policies
Recommendations
Activity
QoS
Security
Access Authentication
Balance
Session state
Real-time subscriber profile
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Subscriber Data ManagementHolistic solution
OpenSubscriberData
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Subscriber Data ManagementHolistic solution
76 of operators state that subscriber data
management is the most important convergence
issue for their organisations over the next 12-24
months
83 of operators say that real-time subscriber
data is critical to improve the subscriber
experience
Loudhouse Research on behalf of Nokia Siemens
Networks
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Subscriber Intelligence Framework
87 seek to improve customer insight in next 12
months
72 see prediction of customer needs as important
Only 14 have real time data analysis available
to them
53 state existing customer data doesnt allow
for profiling
Loudhouse Research on behalf of Nokia Siemens
Networks
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Identity Management Framework
64 of operatorssees identity management and
managing multiple subscriber identities as a key
issue
Loudhouse Research on behalf of Nokia Siemens
Networks
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Policy Management Framework
68 of operators see access and authentication
data as obstacles to providing seamless services
between different access networks
Loudhouse Research on behalf of Nokia Siemens
Networks
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Content
Vision 2015
Subscriber Data Consolidation
Telco 2.0
Identity Management
Summary
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Will operators lose out on 1 trillion in Web
2.0?
Web 2.0
Broadband bit pipes
Legacyinterworking
Terminals
Fixed/cable
Multiradio
Mobile platform
Mobilephone
POTSphone
ISDNphone
SIPphone
PCClient
TV
SIP
SIP
PDA
Transform or become a bit pipe?
Light Reading, Vol. 7, No.6, June 2007
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Monetizing Subscriber DataSeize the opportunity
to transform business
Operator poll What are the most relevant areas
ofsubscriber data intelligence in your opinion?

• The Internet-based ecosystem Amazon, eBay,
  Google, etc. already exploits customer data
• 76 of operators believe customer profiling
  harbours the greatest business potential
• Targeted mobile marketing yields response rates
  as high as 45
• Operators see subscriber identity management as a
  top priority

Source Apertio Loudhouse Research,
Q307Source Blyk MVNO first quarter results
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Total Global IDM Market
CAGR 21.6 (2006 to 2014)
Market size (US millions)
Forrester Identity Management Market forecast
2007 To 2014
The market harbors great potential for IDM
applications
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Business Transformation and the Role of Telcos
Operators

• Service provider
• Countless attractive services
• Need for user authentication

• Identity provider
• Trusted provider of high-quality services
• Trusted billingrelationship
• Unique authentication capabilities

Newservice opportunities
Strong relationship
Identitymanagement(IDM)
Focus on
Internet players (ASPs, third-party software
vendors, content providers, ad companies)
Users

• Controlled access to online applications
• Portable identities acrossdomains
• Protected user privacy

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Identity Management Framework
Identity management will enable new revenue
opportunities, and enhance the user experience
Network-agnostic identity management is the key
component of tomorrows multi-access network
The role of identity information will evolve,
strengthening the operators position in the
value chain
Identity federation
Customerprofiles
Close trusted relationship with subscribers
and communities
Attribute query/push
Single sign-on (SSO)
Authorization trust management
Mutual authentication
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Identity Management Architecture
Payment
Operator services
Identity manager
WAP
MSSC
Stream
Repository
IMS
Policy Server
HSS
HLR
AAA/BSF

• WiMAX ASN-GW
• WLAN AC

• 3GPP MSC-S(CS)

• 3GPP GGSN(PS) SAE GW SGSN MME

• xDSL BRAS

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Identity Management Use Cases
Web single sign-on
Anonymous federation and queries
Legal age verification
Child locator/parental screening
Personalized web homepage
Service blending with caller ID on IPTV
User account provisioning on demand
Targeted advertisement enabler
Cooperative payment
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Trusted Partners in Web 2.0
Web single sign-on
Operator challenges
Use case overview

• Operator works with third parties or in-house
  service providers ? circle of trust and new
  revenue streams
• User signs on once to access all applications in
  the circle, and enjoys
• a convenient user experience
• controlled, secure access to online services

• Reduce churn to Web 2.0 service providers and
  other telcos
• Enhance the user experience
• Simplify use of in-house and externally branded
  applications
• Establish a trusted image/brand

Operator benefits

• Enriched portal attracts retains users
• Cuts costs saves time by
• using a central approach to identity
• mashing up in-house and third-party applications
  with SSO
• Establishes a reputation as a trusted partner in
  the Web 2.0 world

circle of trust
User (when abroad)
Mail, calendar
Identity Manager
Operator
Internet
User
MySpace
commondatabase
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Protect Key Assets
Anonymous federation and queries
Operator challenges
Use case overview

• Only trusted partners and authenticated users
  view the selected subscribers identity data
• Brokers across the network and web domain
• Allows access to be restricted for each SP and
  protects subscribers privacy

• Master the challenge of complex, distributed IT
• Control costs and maintain security while
  increasing access to information
• Protect subscribers identities

Operator benefits

• Single storage place for all identities and
  attributes increases security, saves costs and
  simplifies user management
• Automated processes for network access and web
  domains increase efficiency
• User provisioning
• Password management
• Access control

circle of trust
Service(e.g IPTV
User (when abroad)
Identity Manager
Operator
Internet
User
commondatabase
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Profile Access with Privacy
Legal age and nationality verification
Operator challenges
Use-case overview

• Cost of compliance for legal age and nationality
• A gambling, adult content, government, adult
  purchase can pay US 22 per registered user to
  verify compliance today
• Operator provides and guarantees legal age and
  nationality for competitive fee

• Become a major player in the Web 2.0 world and
  generate revenue from subscriber data assets as a
  trusted identity provider for service/content
  providers.
• How to protect subscribers privacy?

Operator benefits

• Generate revenue for legal age and nationality
  verification service to online sites requiring
  strict compliance.
• Operator can provide timely verification whilst
  protecting privacy and using existing subscriber
  assets.
• Quick return on investment

circle of trust
Legal AgeVertification
Online Gambling
Identity Manager
Operator
Internet
User
commondatabase
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Content
Vision 2015
Subscriber Data Consolidation
Telco 2.0
Identity Management
Summary
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Summary

• Next-generation business model for network
  operators demands subscriber-centric data
  consolidation to
• Improve CAPEX/OPEX
• Improve time-to-market with new services
• Leverage subscriber loyalties
• Encompass Web 2.0/Telco 2.0 opportunities
  particularly through identity management-based
  services
• Security challenges
• Protecting subscribers identities, identity data
  and privacy as well as engaging subscribers with
  their data
• From a standards perspective its a brave (and
  exciting) new world

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PostscriptAn ITU-T success story
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X.500 A PARADISE Found and Lost

• One of the best things X.400 ever did was to
  spawn the X.500 series of recommendations for
  distributed directory services, published in six
  editions
• As with X.400, X.500 was originally driven by
  telcos who wished to provide a global directory
  of OSI and other services
• Realised to some extent in the RD pilot,
  PARADISE
• But failed, despite Herculean efforts, in the
  NADF and Eurescom initiatives
• In the 90s X.500 went underground as LDAP-based
  systems flourished in the corporate space
• A simpler protocol, API and overall concept
• But it still lacked many things in terms of
  robustness, distribution and access controls,
  there was no match

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One-NDS

• During the 90s, a group of developers working
  for Orange UK in Bath were looking at network
  operators requirements for real-time
  applications, primarily HLRs (Home Location
  Registers)
• Having already used RDBMS, they turned to X.500
  as a preferable deployment model
• That idea became One-NDS, a real-time, resilient
  and distributed and application hosting
  environment conceived and built for 2G and 3G
  telecommunications networks
• Specifically designed to enable the use of a
  common centralised database by multiple
  applications through the support of open data
  access protocols

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NSN CC SDM Customer BaseHighlights
Over 740 million subscribers
Deployed with 62 customers in 39 countries
worldwide
One common subscriber database One-NDS
Nine NSN and hundreds of local dataless
applications
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Summary

• What goes around, comes around
• lets keep up the good work!

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Thank you!david.goodman_at_nsn.com
Thank you! david.goodman_at_nsn.com