Market trends for convergence: CellularWiFi devices, wireless VoIP and converged services

1
Market trends for convergence Cellular/Wi-Fi
devices, wireless VoIP and converged services

• Monica Basso
• Research Director

2
Road to Wired/Wireless Convergence
Steps Along the Road
Many Networks
Wireless
Voice
Wired
2006
2008
2010
3
New Cellular-WiFi devices

• Cellular/Wi-Fi devices
• Ericsson P990 (IPT client support unclear)
• Nokia E60, E60 and E70, all with IPT clients for
  Avaya and Cisco
• QTEK 91008300
• Motorola CN620 (and others)
• Nokia 9500 (Series 80 unclear whether/which the
  IPT clients)
• Alcatel One-touch 701
• Wi-Fi only handsets
• BlackBerry 7270 (Avaya IPT)
• Cisco Wireless IP-phone 7920
• Others from Mitsubishi etc

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WLAN-Enabled VOIP Device Strategies
WLAN-only soft phones
Full member of PBX/IP-PBX
Firebox"Deskphone"
Discrete Cellular/WLAN operation
Seamless desk phone to mobile phone roaming
Seamless mobile phone to IP-PBX phone roaming
Motorola CN 620
5
Wireless Voice Still the Dominant application

• Infrastructure costs 4x basic wireless networking
  to support VoIP
• Only 5 percent terminations
• But 80 percent of employees will use it
  occasionally, e.g. SOHO, Skype...

• Shift from fixed to mobile continues

• Mobile replaces corporate PBX
• Requires customized contracts
• Indoor coverage limitations
• May lose some PBX features

VoIP over Wireless
Cellular replaces fixed lines

• Costs fall, bundles grow
• Free voice and data
• Operators look for value-added services to
  preserve the cash cow
• Operator voice profits fall

Cellular voice trends
6
Convergence Carriers and Services
Bundling multiple vertical services, but little
integration
Access Cellular WiFi hotspots Fixed
telephone Fixed Broadband Broadcast Wireless
Broadband
Network Services Customer care Billing and
support Directory services Messaging, e-mail,
voicemail Authentication Presence
Content and media Games Music Video Ring
tones News Payment
Convergence horizontally, integrated service
combinations
7
Mobile Operator Disintermediation
WiFi and wireless broadband attack 3G DVB and
DABS broadcast compete with streaming media 3rd
party media portals (e.g. iTunes) compete with
operators Outsourcers and service providers
attack value-added applications
Internet access and browsers on phones sideline
WAP and operator portals Handset e-mail and IM
erodes SMS, MMS Free VoIP over WiFi / WiMax /
Bluetooth erodes voice traffic Bluetooth and WiFi
on handsets attacks everything
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Recommendations

• Aggregate mobile and remote access technologies
  into consistent services for users independent
  of the access technology.
• Test WLAN-enabled cell phones to assess their
  impact on the future direction of in-building
  communications.
• Explore wireless VoIP for special cases such as
  campus environments with low employee density.
• Prepare for the evolution of the network
  infrastructure.
• Explore bundled and converged offerings, but
  resist to operator pressure for value-added
  services that dont match enterprise needs.

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Nomadic and Mobile Needs (Voice and Data)
Cable Modem Data Softphone Voice
Dial Voice
Cellular Voice

• Do-it-yourself or managed service providers
  (MSPs)
• MSPs bundle remote access technologies (VPN,
  dial-up, broadband) and wireless Wi-Fi "Hot Spot"
  services
• To come policy-based management software and
  control
• Routing based on
• Security
• Speed
• Cost

Dial Data
Network
Cellular Voice and Data (GPRS, Edge, 1xRTT,
EV-DO)
Data (GPRS, Edge, 1xRTT, EV-DO)
DSL Data Softphone Voice
VPN Data Softphone Voice
Wi-Fi (Hot Spot) Data
10
LAN Convergence Switching and Mobility Come
Together
11
The Soft Phone Wired Mobility
Head Office
Firewall
Telephony Server
Branch Office
PSTN
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Fixed/Wireless Voice Convergence With
Cellular/Wi-Fi (circa 2009)
Cellular WAN
Enterprise IP PBX
212.555.1234
Calls From Outside the Company
Twinning
4444
4321
In-building Wi-Fi
Issues Free wireless calling in-building, but
need excellent in-building coverage In Europe
Calling party pays In North America Flat-rate
plan will eliminate potential benefits Control of
and better feature set in IP PBX Requires
replacement of all handsets Complex billing and
handoff
Dialing Within Company
Note Wired handsets not mandatory
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Industry Sector Convergence Drives Change in the
Telecoms Business Model
Sector Convergence
Business Model Convergence
Telecoms
Media and Entertainment
Content Company
Multimedia Sector
Customer
IT
Network Company
Service Company
Telecoms operators need to develop a business
modelfor mobile data and new applications based
on IP.