business model - 12thInternational

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Unformatted text preview: 12thInternational TelecommunicationsNetworkStrategyandPlanningSymposium, Nov. 6- 9,NewDelhi,In- dia PavingtheWay foraNextGenerationBusinessModelforCarriers How theparadigmshiftculminatinginseparated IP-transportandservicelayerstopsy-turvifiesthetraditional telecommunicationsindustryandhowNGN andIMS couldhelpcarriersandtelcostoreachnewterrafirma Dr.Josef Schafer, Dr.Walter Haffner ArcorAG & Co.KG,D-65760Eschbom Germany Summary Telcostodayexperienceatremendoushazardtotheirbusinessmodels:Legacyswitchedvoiceandcarrier-related data-servicesarebeingthreatenedbynew applicationandserviceproviderscarryingontheirbusiness"overthe top"oftheubiquitousopenpacketswitchedIP-transportplatform,theInternet. Tillrecently,carriersusedtobetheonlyonesbeingabletooffertelecommunicationserviceslikevoice,because allservicesweretightlyfixedtonetworkstructures;evenmore,transportandservicewereanintegralwholeand minute-basedrevenuesusedtobeonestablecornerstoneoftheirbusiness. Withtheavailabilityofthe"Esperanto"-Internetastheopenaccessibletransportplatformand withtheupcom- ingofallkindsofservicesontopofthatplatform,includingvoicelikeSkype,carriersareoncecutbacktotheir undisputed(IP-)accessproducts.Sotheyfacethechallenge,eithertosomehowrescueinparttheirminutereve- nues,whichoftenmakeoutmorethanhalfofall,ortofindnewrevenuesources- orboth. So,thefirstalternativeisadirectstrategyagainstover-the-topVoIP-providers("pureplay").WithanIMS service platformbasedonanNGN-network,apremiumvoiceproduct,calledVoNGN, canbeoffered.Thiscanonlysave partofthevoicebusiness,however. Evenmoreimportantforafuturestrategyisanenlargedproductconceptfor all-embracingcommunication,presence,andmultimediaservices.Attheend,theformercarrierisgoingtohaveto turnintoabroadbandnetwork operator(BNO) orevenbetterintoadigitalserviceprovider(DSP)withafully- assorteddigitallifeserviceportfolioandanoutstandingcustomerservice(over-the-topprovidershavenearlyno customerservice)reachingrightuptoanoverallconsumersupport,includingthecustomer'sdigitalenvironment evenathome. So,itiskeyforasolidfuturefor BNOs thattheysucceedintheirstrategyestablishingasurvivablenextgeneira- tionbusiness model based on thisall-inclusivevaluepropositionandtherebysustainingthecurrentARPU at leastinalargerpart.Thisway,BNOs areabletomatchuptoover-the-topplayersintheirrushtodominatethe servicemarket,inordertoavoidthefateof noninnovativecarriersbeingthrownbacktomerebitpipeproviders foraccessonly.ThereasonsforandtheverticesofsuchanewBNO's andDSP'sstrategybasedonanintegrated NGN andIMS carrierandserviceproviderapproachareelaboratedinthispaper. 1 The paradigm shiftinTelco'slegacy businessmodel Using IP-packets as transport-"Esperanto" for any synchronousor asynchronousapplication,beitvoice, multimedia or whatever forms thebasis fora world- widecarrier-serviceforIP-packetsofany kindandany applicationtoany destinationaddressintheInternet- cosmos. And somehow ithashappened: theInternet "business"model was there.The privateor business customer pays to the BNO for the connecting line...
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This note was uploaded on 09/21/2010 for the course ECE 567 taught by Professor Attkin during the Spring '10 term at Academy of Design Tampa.

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business model - 12thInternational

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