Professional Documents
Culture Documents
A shared vision
ADB has led the hybrid IPTV set-top box market in Europe since its inception,
establishing itself as a trusted partner for operators and their technology
SEE IPTV World Forum,
US
suppliers in launching new revenue-generating IPTV services in volume.
AT London Olympia
Whether you are looking to increase subscriber take-up, build customer loyalty
and reduce churn, or drive new services to increase ARPU such as VoD, Internet
25-27th March
streaming and home networking, we have the technology to meet your needs. Stand 190
As an expert in software integration, our strong relationships with third party
technology providers enable us to deliver products to your unique requirements
ahead of the competition. Our software development kit gives our partners an
easy path to fully exploit our innovative solutions and new technologies. We are
recognised throughout the industry for a series of market firsts, including volume
deployments of advanced video coding and high definition-based products,
for which we have received a number of industry awards.
Whatever your unique requirements, ADB shares your vision - to ensure that
your pay TV business is as profitable as it can be. Cable IPTV Satellite Terrestrial
Regional connectivity
Overlooked opportunities in emerging markets 9
by Jim Marsh, CEO, Cable & Wireless Worldwide
19 21 25 28 National development
Switching on Russia 12
by Igor Kelshev, Senior Vice President and Head of International Operations, TTK
32 35 37 39 Cloud computing
Cloud computing - fad or e-business revolution? 16
by Richard Curran, Director Enterprise Server and Software Enabling Group, INTEL, EMEA
Femtocells
19
42 45 Femtocells - a new delivery model for mobile broadband
by Sanjeev Verma, Co-Founder and VP, Business Development, Airvana
Mobile TV
Free-to-air mobile TV broadcasting in Europe 21
by Weijie Yun, CEO, Co-Founder, Telegent
Security
A new era of security 25
by Anthony O’Mara, Vice-President, EMEA, Trend Micro
Broadband
Connections Broadband profitability and control of revenue content and 28
From the Editor-In-Chief’s desk 4 services
by Fredric J. Morris
by Tim Porter, Vice President EMEA, Oracle Communications Global Business Unit
‘Climate-positive’ ICT:
green, greener, greening
The trend for Information and Communications Technology (ICT) us towards a low-carbon economy without adding unnecessary
to become ‘greener’ over time is well established – it has a costs, and address the fundamental issue rather than the
proven track record of ever-improving performance and efficiency symptoms of it.
that has enabled it to do more using fewer materials and less
energy. Globally, the ICT industry itself emits about two per cent Such solutions can help us move beyond merely becoming carbon-
of total emissions. But perhaps, the greatest contribution ICT neutral, and focus on becoming ‘climate positive’ – that is, delivering
can make to sustainability is through the reduction it can enable products and services that enable a greater reduction in CO2 emis-
in the 98 per cent of global CO2 emissions attributable to sions than they emit through their whole life cycle.
non-ICT sectors.¨
ICT and carbon emissions
The ICT sector encompasses not only IT and communication
With the COP15 United Nations Climate Change Conference taking devices and applications – such as mobile phones, computers,
place in Copenhagen this December, 2009 looks like being a pivotal network equipment, servers, software and satellite systems – but
year for climate change solutions. The ICT sector has a unique also the various services and applications associated with them,
opportunity to establish itself as an important driver of both climate including collaboration tools such as room-based video and web-
and industrial policies. Low-carbon ICT solutions can play a leading based conferencing, mobile health (m-health), e- and m-learning and
role in improving basic services while reducing CO2 emissions – by services to support eco-smart decisions (instant information about
replacing physical products through so-called dematerialization, by eco-friendly and carbon-lean goods).
helping people to use resources more efficiently and by supporting
‘eco-smart’ consumption. For this to happen, ICT must be an When people talk about ‘green ICT’ they are generally referring to
integrated part of all major projects and initiatives from governments ways of making ICT equipment and solutions more efficient in terms
and businesses. of their use of energy and materials, as a way of reducing direct CO2
emissions by the sector. Up to two per cent of global CO2 emissions
Society faces a huge challenge in reducing CO2 emissions to come from the ICT sector today, and this is projected to increase
targeted levels by 2050, a time in which the world economy will grow somewhat by 2020. That is why the goal of every player in the ICT
three-fold and the world’s population will grow some 50 per cent. On sector must be to continue to improve the efficiency of ICT systems
top of this, calls for dramatic action on climate change in the midst and to target real carbon footprint reductions.
of an economic crisis may seem rather contrary. In reality, the current
economic conditions represent an opportunity for the ICT sector However, the biggest role that ICT can play in reducing overall CO2
to demonstrate how it enhances efficiency and makes a significant emissions is by helping other sectors – which produce 98 per cent
contribution to reducing carbon emissions at the same time. of emissions – improve efficiency and sustainability. It can do this
across many areas of society through solutions such as virtual
Until now, most of the global policy focus has been on high-emission meetings, smart buildings, e- and m-health, smart grids, e-and
sectors, and on incremental improvements that entail additional m-learning, smart consumption and dematerialization. Together,
costs. But to make real progress, we need to turn our attention these solutions can help remove more than 15 per cent of the CO2
to sectors that can provide positive solutions – solutions that lead emissions generated by non-ICT industries and the public.
PROMOTIONAL FEATURE
Ericsson
Ericsson’s vision is to use telecommunications to foster a more virtual meetings, such solutions will become attractive to more peo
carbon-lean society as a viable means of helping policy makers and ple as they experience better results. This will accelerate uptake, so
governments reach their carbon emission targets. The opportunities accelerating CO2 reductions.
for broadband to dematerialize and streamline the economy are
almost unlimited. Partnering initiatives
Ericsson is working to realize its vision for climate-positive solutions
Low-carbon economies by working in partnership with Non-Governmental Organizations
The ongoing urbanization and related investments being made (NGOs), universities and other companies around the world to
around the world should be viewed as an opportunity for cities to validate a life-cycle methodology for calculating the positive carbon
turn the need to reduce CO2 emissions into a driver for smart and impacts of ICT. These initiatives focus on encouraging the efficient
carbon-lean development. Over the next 30 years more than USD200 use of telecom solutions across industries to reduce global CO2
trillion will be invested globally in physical infrastructure to provide us emissions.
with basic services, such as roads, bridges and railways.
Ericsson estimates that smart use of broadband-enabled services
Intelligent transport systems are one way transport and ICT can can reduce CO2 emissions by a factor of between 10 and 100 – that
combine and, when deployed and used in the right way, reduce is, the use of a telecom service that emits 1kg of CO2 may enable
emissions through a linked network of people, roads and vehicles a reduction of 10–100 kg of CO2 elsewhere. Fixed and mobile
that supports teleworking and dematerialization – as well as by broadband can play a leading role in improving basic services while
communicating road descriptions, guides and traffic information. reducing CO2 emissions – both by replacing physical products with
services, and by helping society to use resources more efficiently
Research conducted by Ericsson shows that specific telemedicine – and can accelerate the shift from physical to virtual infrastructure
services can reduce travel for hospital consultations by up to 50 per and services.
cent. Furthermore, integrated communication solutions for future
smart grids will enable utilities to better manage, and meet, energy Ericsson and its partners are working together to promote climate-
demand from households, while smart homes will allow for monitoring smart telecom solutions, and introduce the concept of being
and automating energy consumption, lighting and surveillance. ‘climate-positive’ to solution-driven companies in the ICT sector.
This work covers three key areas: establishing a methodology for
Such low-carbon communication solutions will make a significant calculating CO2 savings from emission avoidance; the integration
contribution to a low-carbon economy in several key ways. of low-carbon telecommunication solutions in climate strategies for
cities; and a support platform for partnerships that promote a low-
First, with billions of people fighting poverty and a world population carbon economy.
that will reach nine billion in a few decades, they will help reduce
greenhouse gas emissions by being extremely resource-efficient. If something cannot be measured, it can neither be managed nor
Because low-carbon communication solutions can provide transfor- supported. Establishing a methodological approach will make low-
mative reductions without unnecessary costs, they can play a key carbon ICT solutions visible and enable to be better supported. It
role in bringing people out of poverty by enabling access to basic is vital that the role of a well functioning broadband infrastructure is
services and supporting economic development. well understood.
Second, ICT can reduce the carbon footprint of cities and reduce By engaging in dialogue with central policymakers in key markets,
urbanization by enabling people to stay in rural areas with gainful we can ensure that the positive potential of low-carbon ICT solutions
employment. With more people than ever living in cities, rather than becomes an integral part of all major climate strategies. This will
rural areas, incomes and resource-intensive lifestyles are on the include publishing supporting facts and figures to guide companies
increase, and the increasing carbon footprint of urban dwellers is and policymakers on how to make eco-smart decisions.
adding to the urgency of implementing low-carbon solutions. Low-
carbon ICT leads to smarter ways of working, while ensuring that Together with users of ICT, we need to identify, quantify and
basic needs are met. In China, 400 million people will move to cities validate selected telecom-related solutions that support a carbon-
over the next 20 years, the infrastructure of new and growing cities lean economy. In this way, we can support the implementation of
will be crucial to reach a low-carbon economy. technology and services that can make significant reductions in
CO2 emissions and ensure that low-carbon solutions are available
Third, as part of achieving a low-carbon economy, we can move on the market.
away from dealing with problems after they have occurred. Low-
carbon communication solutions enable us to deliver transformative The ICT industry must approach the need for CO2 reductions as
results by acting proactively. Not only can they help deliver energy an opportunity, and see the urgent need for change as a driver
in an smart way, optimize transportation and increase reach and for innovation and profit. This is especially important during an
efficiency in areas of health and education, they can also help economic crisis when significant resources are being allocated to
us shift to a ‘circular’ economy, in which natural resources are infrastructure investments.
efficiently reused.
PROMOTIONAL FEATURE
CONNECTIONS
Connections
The theme of this issue of Connect-World: EMEA is The broadband connection - which
one, to where?
Fredric J. Morris,
Editor-in-Chief,
Connect-World
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means elec-
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caused, resulting from the use of the material can be accepted by the publishers or others associated with its preparation. The publishers neither
accept responsibility for, nor necessarily agree with, the views expressed by contributors.
ISSN 1748-6998
04 n EMEA issue 2009
Mobile payment
NationalMobilesystems
access
development
The growth of the African, of the Tanzanian, telecommunications sector is due to many
factors. Technology and falling prices are of course among the reasons, but the liberalisation
of the sector in Tanzania and the rest of Africa has been just as important. In this respect, the
policies, legislation, regulations and the licensing framework have been as important as the
enabling technologies, especially mobile telephony, broadband wireless and the ambitious
submarine cable projects to affordably connect Africa to the world.
John S. Nkoma is the Director General of the Tanzania Communications Regulatory Authority (TCRA). As CEO his responsibilities
include the regulation of telecommunications, broadcasting, postal services; licensing; management of the radio frequency spectrum,
numbering, electronic and other ICTs. Prior to joining TCRA he has held posts as Professor of Physics, Dean of Science, Head of
Department at the University of Botswana and Head of Physics at the University of Dar es Salaam.
John S. Nkoma holds BSc (UDSM), MSc (Essex) and PhD (Essex) degrees and certificates in Telecommunications Regulation, Numbering,
Spectrum Management and Strategic Management. He has also published several research papers and university level textbooks.
We believe that exponential growth in Fourth, there is a licensing framework to-peer networks, high definition TV, IPTV.
broadband will be the next surprise, just as which includes the Converged Licensing The overall impact on broadband growth
voice growth has taken many experts by Framework and other licenses. The into services such as e-learning, e-health,
surprise. This has several explanations, but the Converged Licensing Framework (CLF) e-government and e-commerce will be
four major reasons are: policies, legislation, was introduced on 23rd February 2005 and unprecedented.
regulations and the licensing framework. Let consists of four licenses, namely: Network
us review these, with particular reference to Facilities License (NFL), Network Services In conclusion, one can say that there has been
the situation in Tanzania. License (NSL), Applications Service License a great deal of growth in the ICT sector, first
(ASL) and Contents Services License (CSL). in the voice services where there has been
First, the communications policies articulated The Converged Licensing Framework is exponential growth during the past decade.
in the following communication policy Technology Neutral and Service Neutral. However, with the advent of the coming of
documents; National Telecommunications There are four market segments: International, submarine cables and terrestrial cables, there
Policy of 1997; National ICT Policy of 2003; National, Regional and District. Other licenses will be unprecedented growth in the use of
National Information and Broadcasting Policy include Public Postal License; Courier Service the Internet and broadband services, video
of 2003 and National Postal policy of 2003, License; Frequency User License; Installation over and above voice and SMS. n
which can be downloaded from the TCRA and Maintenance License; Importation and
website. Distribution License; Type Approval; and
Numbering Resources.
Second, the legislation which includes:
Tanzania Broadcasting Services Act No 6 Now, let us examine the facts and address the
of 1993; Tanzania Communications Act question as to whether the growth in voice
No 18 of 1993; Tanzania Communications subscriptions will be replicated in Internet
Regulatory Authority Act No 12 of 2003; and broadband. According to the International
and the Universal Communications Service Telecommunications Union (ITU), by 2008,
Access Fund Act of 2006. Tanzania is in the Africa had eight times as many Internet users
process of harmonising these legislations by as it had in 2000, with the highest penetration
repealing them and establishing the Electronic in Seychelles at 38 per cent, South Africa at
and Postal Communications Act (EPOCA) 8.6 per cent, Nigeria at 7.3, Tanzania at 1.3
which is in the process of establishment. per cent, with the world’s average penetration
rate at 23 per cent, and Africa’s average at 4.2
Connect-World is
Third, there are fourteen regulations per cent. celebrating its 12th
governing the communications sector. anniversary
These are: The Tanzania Communications Broadband can be provided through fixed
(Broadband Service) Regulations 2005; services or mobile wireless services. Unlike
Through the years, Connect-
The Tanzania Communications (Consumer Europe and the USA, fixed line penetration in
Protection) Regulations 2005; The Tanzania Africa has been very low, and by 2008 Africa
World’s authors told of the rise
Broadcasting Services (Content ) Regulations had only 635,000 fixed broadband subscribers. of mobile, of fibre, of wireless
2005; The Tanzania Communications According to the ITU, the average fixed and of broadband; they told of
(Licensing) Regulations 2005; The broadband penetration per 100 inhabitants in the dot.com meltdown, of
Tanzania Communications (Importation 2008 was 6.0 for the world, and only 0.1 for digital inclusion and conver-
and Distribution) Regulations 2005; The Africa. However, there is hope for Africa in gence, of standards and break-
Tanzania Communications (Installations mobile broadband. This is hardly surprising throughs, the rise of IP and
and Maintenance) Regulations 2005; The considering that the voice growth that has the fall of switching and of the
Tanzania Communications (Interconnection) occurred in Africa uses wireless networks.
regulatory turnaround.
Regulations 2005; The Tanzania
Communications (Telecommunication Apart from mobile broadband, there are now
Numbering and Electronic address) several infrastructure projects for submarine In every issue of Connect-World
Regulations 2005; The Tanzania Postal cables and terrestrial optical fibre cables, for heads of state, ministers and
Regulations 2005; The Tanzania example SEACOM, TEAMS and EASSY regulators, heads of
Communications (Radio Communications projects along the East African Coast and international institutions and
and Frequency Spectrum) Regulations SAT3 along the West African Coast. Also leaders of industry speak of
2005; The Tanzania Communications notable is the analogue to digital broadcasting what the ICT revolution, as it
(Tariff) Regulations 2005; The Tanzania migration which is occurring in African happens, means to the people
Communications (Type Approval of Electronic countries. The SEACOM cable, a submarine
in their regions of the world.
Communications Equipment) Regulations fibre-optic with a length of approximately
2005; The Tanzania Communications 15,000 km, was launched on 23rd July 2009
(Quality of Service) Regulations 2005; and and has an enormous capacity of 1.28Tb/s www.connect-world.com
The Tanzania Communications (Access and (terabits per second). This will enable high
Facilities) Regulations 2005. speed Internet downloads, cheaper prices in
comparison to current satellite pricing, peer-
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9 2009
TO TH
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But only if you spend that week at ITU Telecom World 2009. Because no other event offers such a wide range of ideas,
knowledge and experience. No other event gives you direct access to the full cross-section of ICT decision-makers
from government and industry. And no other event will be more essential in helping you plot a strategic course in
the rapidly-evolving ICT industry. In a world where knowledge is currency and meeting the right people is gold,
this global summit is sure to provide you with the best return on investment. Geneva, 5-9 October 2009 – don’t miss it.
www.itu.int/world2009
Emerging territories such as Africa’s present huge opportunities for multinationals and the
investment these companies can bring to these markets can be a significant factor in building
emerging economies. Investment is often held back by the emerging regions’ generally
poor telecoms infrastructure that is often unable to support operations. This is increasingly
becoming an irrelevant concern in Africa, given the significant submarine cable investment
throughout the region with five new cables due to go live in the next two years.
Jim Marsh is CEO at Cable & Wireless Worldwide, and a member of the UK Operating Board. Mr Marsh joined Cable & Wireless
through its acquisition of Energis where he was Director of Retail. Before joining Energis, Mr Marsh was Chief Operating Officer at
Atos KPMG Consulting, overseeing the consulting business across all its industry sectors. Prior to becoming a partner at KPMG, he was
head of strategic planning at Boots the Chemists.
Jim Marsh is a qualified chartered accountant specialising in corporate finance and recovery.
A wealth of opportunity Emerging markets represent a wealth of were two years ago. Businesses considering
opportunities for multinational companies expansion into emerging economies cited the
The economic downturn is having a huge and should constitute a crucial aspect of any associated lower running costs as a key driver
impact on businesses today and many global growth strategy. These economies are - particularly as a means of countering the
companies are looking for sweeping cost in much better shape than developed markets current economic conditions.
reductions and increased efficiencies. Whilst today and are likely to lead the world out of
the majority of companies are eager to make the recession. Untapped potential
cost-savings where they can, they are also
reluctant to ignore potentially lucrative global Current forecasts from Goldman Sachs Emerging territories can present huge
expansion. suggest that China’s GDP is expected to opportunities for multinationals - in the same
grow by as much as 8 per cent compared to way, the investment they then deliver to that
Global growth is a key strategic component negative growth in Western countries. India’s market can be significant. Africa’s economy
for multinational corporations, but vital GDP is projected to grow by 5.8 per cent this has been performing well; the continent
to this is a secure and effective telecoms year. The growth potential of these markets is recorded overall economic expansion at an
infrastructure. Businesses are increasingly both high and well recognised. average of 5.9 per cent annually between
turning to managed telecoms services in order 2001 and 2008.
to gain a competitive advantage and make Recent research indicates that businesses
cost-savings, in turn allowing them to achieve are keen to capitalise on this potential: 68 Although multinationals are keen to expand
their transformational goals. per cent of multinationals surveyed felt that into China and India, it appears that many
emerging markets are just as appealing as they are missing a trick when it comes to Africa.
:43:40
Regional connectivity
Whilst 81 per cent of multinationals expressed Within the next two years the African The future of emerging markets
an interest in moving into South Africa continent will become better connected to
and 61 per cent into Sub-Saharan Africa by the rest of the world than ever before with Original predictions that emerging markets
mid-2011, the research showed a surprising undersea cable networks due to come into would extricate themselves from Western
reticence from companies based in North operation that will increase the combined economies because they are not as exposed
America. international bandwidth capacity into sub- to the debt faced by Europe and the US were
Saharan Africa 120 fold by the end of 2011. proven wrong by the global market crash.
Investment is being held back by what is However, it is still widely held by experts that
becoming an increasingly irrelevant concern What will it mean to Africa? this will protect emerging economies to the
that telecoms infrastructure is poor and extent that they will be able to recover more
unable to support operations in Africa. After years of reliance on satellite broadband quickly.
Nevertheless, major companies have invested connections, international bandwidth capacity
heavily in getting high-speed, high-capacity into sub-Saharan Africa is set to increase by Inaccurate assumptions about emerging
and cost-effective telecoms networks into the 120 times by the end of 2011. West Africa markets such as Africa, will lead to businesses
region. Now the infrastructure is much more currently receives its bandwidth through the missing out on the benefits offered by
advanced than many multinational businesses existing cable, which traditionally has been expansion, and - perhaps more worryingly -
are prepared to give it credit for. expensive for users because of the shortage of the emerging markets will miss out on vital
options available to the end user, resulting in investment that would improve standards of
Africa has seen significant submarine cable something of a monopoly. living across the continent. n
investment throughout the region with
five new cables due to go live in the next Now, a consortium of leading global telecoms
two years. Included in these operations is companies plans to provide a high-speed fibre
the recently announced West Africa Cable optic network that will link Southern and
System, the aim of which is to help improve Western Africa to Europe with faster and more
the telecommunications infrastructure cost effective connectivity. The 3.84Tbps
for local businesses in Africa as well as West Africa Cable System (WACS) connecting
encouraging international businesses to move more than 13 countries will provide the first
Connect-World is
into the area, further supporting the growth ever international submarine connections to celebrating its 12th
of the local economy and benefiting the local Namibia, The Democratic Republic of the anniversary
community. Congo, The Republic of Congo and Togo.
Through the years, Connect-
Adoption of new communications technolo- Once the WACS cable has been deployed,
World’s authors told of the rise
gies customers will benefit from reduced costs
and an easier path to up-scaling bandwidth.
of mobile, of fibre, of wireless
According to a report published earlier this WACS, as well as other new cable systems, and of broadband; they told of
year by the International Telecommunications will revolutionize broadband in Africa, which the dot.com meltdown, of
Union, more than 50 per cent of the world’s has not kept pace with the rest of the world. digital inclusion and conver-
population now uses a mobile phone and Users will enjoy greater choice and the cable gence, of standards and break-
nearly one quarter has access to the Internet. systems will lead to further infrastructure throughs, the rise of IP and
These figures demonstrate the impact of development, especially in the business the fall of switching and of the
developing countries and the rapid adoption of sector. WACS will also overcome the issues regulatory turnaround.
new communications technologies. Emerging involved with deploying broadband over
economies now account for approximately satellite.
two thirds of the mobile phones in use - a
In every issue of Connect-World
huge rise given that they were responsible In addition, in July, the East African region heads of state, ministers and
for less than half in 2002. Internet use has announced that an undersea fibre-optic regulators, heads of
more than doubled - 23 per cent of people had cable linking it to networks in Europe and international institutions and
access to the Internet last year compared to India went live. The Seacom cable, which leaders of industry speak of
only 11 per cent in 2002. is owned mainly by African investors, links what the ICT revolution, as it
South Africa, Tanzania, Kenya, Uganda and happens, means to the people
The long-term value of ‘responsible’ business Mozambique with London, Marseille and in their regions of the world.
when investing in newer economies is fast Mumbai. A separate undersea cable, known
being realised by multinationals and many as Teams, owned by the Kenyan government
parts of sub-Saharan Africa in particular are and local telecoms firms and linked to the www.connect-world.com
looking to the corporate sector to help them United Arab Emirates, is expected to go live
address issues of inclusion, inequality and in August 2009.
health.
ADB sees hybrid as the future of PayTV. Internet to the television, the system must
Hybrid? Hybrid combines DVB techniques be easy for TV viewers to install and use.
for receiving broadcast digital video with Delivering a simple user experience requires
the ability to receive IP video and other the effective management of very complex
multimedia content over Ethernet. The software. At ADB, we view top-to-bottom
opportunities for new services enabled by control and understanding of the whole
our hybrid products are immense. software stack as fundamental. We are one of
a few companies that can write the complete
The benefits and drivers for ADB’s hybrid set of hybrid environment software - from
approach apply to both the wide area the lower level operating system to the high-
services of switched digital video, video-on- end applications. innovation we now provide is the use of 3D
demand, over-the-top and other interactive graphics in the user interface, so exploring
applications, and to local area services, that We believe that the best approach to hybrid the available programmes is more pleasant
is, the home network. is to deploy proprietary implementations of and intuitive.
open standards. The use of open standards,
This is how we see convergence: not device- such as DLNA, so devices can interact with For the operator, hybrid techniques means
centric, but content-centric. Hence, we work one another is the best way to guarantee there are extra services they can offer that
to facilitate access to content, whatever its interoperability and ensure the industry can both increase subscriber retention, hence
shape or origin. remains dynamic. Proprietary implementation reduce churn, and provide opportunities to
ensures that all elements are fine-tuned for increase revenue. The addition of IP to the
The home network is a key element of true optimal performance. ADB has been leading DVB digital video set-top box opens up
content convergence, with the set-top boxes the industry in that regard: we were the first endless possibilities for added value content.
interacting with all the local devices the set-top box company certified to use the new IP also enables the operator to free up
consumer has in the home, including personal DLNA home networking standards, and - broadcast bandwidth, thus reducing the need
computers, game consoles, portable media back in 2005 - we were the first in the world for future investment in infrastructure.
players and mobile phones. This means to offer the new MPEG-4 video codec to our
that personal content can ‘float’ throughout customers. Different markets worldwide may be going
the home, and land on the TV or the home- at different speeds, but they are all moving
theatre system. Utilizing the home network, Making it easy for the TV viewer to access towards hybrid strategies - bringing the
ADB’s products allow such new applications a multitude of new services means providing Internet to the TV and adding local area
as multi-room PVR and tuner sharing. these services as part of a TV - and not a PC applications will happen everywhere.
- experience. We make all services available Hybrid lets us really explore the creative
Customers demand the ease of ‘plug and as channels and we are developing ways to opportunities of a truly converged TV
play’. To bring the world of the PC and help viewers navigate the extra content. One experience. n
PROMOTIONAL FEATURE
National development
Switching on Russia
by Igor Kelshev, Senior Vice President and Head of International Operations, TTK
Russian telecommunications has been growing rapidly since the sector’s liberalisation; it is now
an important driver of the economy. In addition to meeting growing domestic communications
needs, Russia’s telecom sector offers an efficient alternative to the submarine cables currently
linking the highly developed western and eastern economies, an attractive content market and
a gateway to the growing CIS economies. A new Russia, ‘switched-on’ by the Internet, hungry
for broadband and rich content is also emerging.
Igor Kelshev is the Senior Vice President and Head of International Operations at TTK (TransTeleCom). Mr Kelshev has worked in
business development for a number of Russian and Ukrainian trade companies, importing goods from the Asia-Pacific region. Before
joining TTK (TransTeleCom), he served as General Director of Transneft-Orel, a subsidiary of Transneft, the Russian oil transit
monopoly. He also worked for Kachalov and Colleagues, managing market research, company strategy and product distribution for
FMCG clients.
Igor Kelshev graduated from Tomsk State University and his post-graduation education includes the London School of Public
Relations.
Russia - switching on
“Russia to link Europe to Asia and, perhaps most important,
The Russian market has plenty to offer. The local knowledge has become available to non-domestic
Russian Federation, in fact, has a very mature companies. Combined, these factors have made Russia,
mobile telephony market. We also have a
arguably one of the most solid of the BRIC economies.”
high penetration fixed telephony market, a
liberalised long distance telephony market
and a number of new alternative operators - has been a main driver of the Russian Competition between the abundant new
without the burden of legacy infrastructures - economy, and the broadband landscape is providers has brought greater flexibility and
exploiting both corporate and retail markets. starting to evolve to reflect this change. There network diversification. Some of the most
Russia also offers the world efficient east to is no longer a single, monopoly, Internet demanding service level agreements on the
west data transit and a very attractive market provider in Russia, which is good news for planet now back pure capacity leasing, and
for content distribution. investors, and for customers, who benefit this comes hand-in-hand with extended reach,
from the competition and the innovation that voice and data highways that reach right
Data transfer accompanies it. Just as important, Russia across Russia to link Europe to Asia and,
acts as a gateway for the opening up of the perhaps most important, the fact that local
With the recent explosion in communications, growing CIS economies. knowledge has become available to non-
since its liberalisation, the telecoms market domestic companies. Combined, these factors
have made Russia, arguably one of the most “The rapid changes since market liberalisation in usage
solid of the BRIC economies.
according to socio-economic and demographic factors -
The importance of this is that emerging gender, age, education and income - have led to a sense that
economies are champing at the bit for Russia has finally ‘switched on’.”
new telecoms services. With their large
populations, the BRIC (Brazil, Russia, According to the ‘Global Bandwidth Research telecoms sector. Furthermore, due to the
India, China) countries are building out new Service 2009’ report by TeleGeography: success of fibre-optic technology, the carrying
telecom services ‘leapfrogging’ to advanced, capacity of telecom networks has jumped
best-practice, solutions which have resulted “Terrestrial systems traversing Russia provide from a few kilobytes per second to several
in significant economic gains for the telecoms an alternative path to Europe-Asia submarine terabytes per second.
industry and for the business world in cables... these trans-Russian systems follow
general. a more direct route between Europe and Asia The rapid changes since market liberalisation
than submarine cable, resulting in a shorter in usage according to socio-economic and
Russia is now very much ‘open for round trip delay.” demographic factors - gender, age, education
business’, delivering next generation and income - have led to a sense that
telecommunications services both for The sheer scale of Russia’s land mass means Russia has finally ‘switched on’. In Russia,
domestic companies reaching out to the that its terrestrial networks have the capacity as elsewhere in the world, the higher the
global economy and for the international to reach out extensively, both domestically income and education the higher the rate
community reaching in for new investment and internationally. The ground-based of Internet access and use, all pointing to a
opportunities. Technologically advanced infrastructure of its terrestrial networks also very promising and burgeoning market for
fibre-optic networks in Russia are not only makes them more resistant to natural disasters telecommunications companies.
a gateway into the hugely attractive Russian than submarine alternatives, and easier to
and CIS markets, but a transit path between maintain. Roughly 50 per cent of Internet users in
the powerhouse economies of Western Europe Russia are aged 18-24 and this younger
and the Far East. A digital society age group, which accounts for only 14
per cent of the population, has the highest
Geographically, Russia is advantageously Over several decades, the world has witnessed Internet penetration at 67 per cent. This
placed. Given its size, and its location some significant changes that have prompted age group is naturally sociable and for the
between the world’s most active economies, it intensive development of the Internet in most part surfs the Web daily, making it
has unparalleled opportunities to function as Russia, and transformed the everyday a highly attractive market for operators,
a conduit for European and Asian economic needs of the Russian people. According particularly since the liberalisation of the
growth. Its ‘Eurasia Highway’ provides the to the Ministry of Communications of the Russian telecommunications market in 2007
fastest, most efficient telecommunications Russian Federation, speed of data transfer - now fully in effect and proven. Before the
route between the two ends of the macro has improved remarkably, to the extent that liberalisation of the market, this segment
continent and the emerging powerhouse the broadband market in Russia is growing went largely untapped by telco operators and
economies it contains. significantly faster than the rest of the consumer-facing organisations looking to
grow their businesses.
the content
creation • management • delivery
experience
Conference 10 - 14 September
Exhibition 11 - 15 September
RAI Amsterdam
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20 EMEA issue 2009 n 15
Cloud computing
Cloud computing is neither a passing fad nor a cure-all; it will grow strongly in coming
years. Massive data centres, located ‘out there’ on the Web will increasingly provide virtual
infrastructure, applications or software on a pay-as-you-go basis. It can deliver impressive
savings and access to an astounding range of IT facilities, but there are real security concerns,
the savings for some companies are not clear, and there may be significant governance and
compliance issues involved.
Richard Curran is the Director of the Enterprise Server and Software Enabling Group at INTEL, EMEA. Mr Curran also leads a team of
Strategic Relationship Managers responsible for enabling Intel’s Global ISV and GTM activities with its key software partners. Prior to
this role he served in a number of high-level posts including as co-leader of the EMEA Customer Solutions Marketing and Sales teams,
and as head of Intel’s Services Organisation in EMEA. Mr Curran joined Intel from Compaq where he worked in server executive roles
including as Director, Pre-Sale Centers EMEA and Director, Services Product Support & New Products, EMEA. Before Compaq, Mr
Curran was Country Manager of Concurrent Computer Italy, managing day-to-day sales and services operations.
Top-line overview Despite the hype - and unlike many to harness the efficiency of the cloud but with
technologies that have gone before it: more security and control.
The year 2008 cloud computing whipped the videophones, paperless office and mobile TV
IT press into a frenzy. Within the space of a to name just a few - the cloud is here to stay Cloud predictions
few months, cloud computing went from and will evolve over years. It will change the
being a relatively unknown concept to the way people work and how companies operate, “SaaS and cloud computing will become
year’s most touted technology. Company after as they shift to consume services in a more mainstream, the only questions is when,
company jumped onto the cloud computing cost effective way. not if.” Tony Lock, Program Director,
bandwagon, launching new ‘cloud’ services, Freeform Dynamics
in many cases just re-naming existing Cloud services are particularly attractive for
offerings to include this new buzzword. It small businesses or start-ups who cannot “By 2012, 80 per cent of Fortune 1000
was, in short, hype of the highest order. afford upfront IT investment. Ultimately, enterprises will pay for some cloud
though, it is unlikely that larger organisations computing service and 30 per cent will pay
Now, calm is being restored and the IT press, will completely abandon on-premises models, for cloud computing infrastructure.”
as well as analysts and the industry itself, or that they will replace IT that is core to Daryl Plummer and Thomas Bittman,
are taking a much more realistic view of the their competitive advantage with services Gartner
cloud. Gartner, for example, is going as far through the cloud. Many businesses will still
as to predict that cloud computing will go require a level of security, performance or “Four years from now, if enough
through the ‘trough of disillusionment’ - the customisation in their applications that cannot companies catch on, the cloud computing
phase in its hype cycle where technologies yet be supported through the public cloud. market will be worth more than £26bn.”
fail to meet expectations and quickly cease to For this, they may create their own private IDC
be fashionable. cloud architecture, behind corporate firewalls,
“The cloud computing phenomenon is real, but should be seen in context. Most IT spending
will continue to be on traditional server and software deployments: IDC estimates that nine
per cent of IT spend will be on cloud services by 2012. Cloud architectures do provide an
attractive opportunity for increased efficiency, flexibility and time to market. ”
infancy, this usage is expected to grow out of Who is delivering cloud services? business applications will be cloud-enabled
enterprise virtualisation technologies already and available as SaaS.
being deployed. There are three high level categories of
cloud services: software-as-a-service (SaaS) Conclusion
Public cloud services are primarily targeted - software deployed as a hosted service and
at consumer services, such as Internet search, accessed over the Internet; platform-as-a- The cloud computing phenomenon is real,
personal email, social networking and other service (PaaS) - platforms that can be used but should be seen in context. Most IT
Web 2.0 deployments. Small businesses and to deploy applications provided by customers spending will continue to be on traditional
start-ups are also attracted to the concept of or partners of the PaaS provider; and server and software deployments: IDC
cloud-delivered services to reduce upfront infrastructure-as-a-service (IaaS) - computing estimates that nine per cent of IT spend
IT investments. Some larger enterprises are infrastructure, such as servers, storage will be on cloud services by 2012. Cloud
expected to deploy public cloud services for and network, delivered as a cloud service, architectures do provide an attractive
applications deemed not business critical - typically through virtualisation. opportunity for increased efficiency,
such as web-delivered software to manage flexibility and time to market. Whether
employee travel scheduling or HR (human Infrastructure-as-a-service can provide companies are building large cloud
resource) support suites. access to a server, part of a server or storage, service infrastructure or private clouds for
for example, Rackspace’s Cloud Servers. internal enterprise use - there are common
For many enterprises, IT infrastructure is An example of a platform as a service is requirements of ultra energy efficiency,
closely linked to their core competence Amazon’s Elastic Compute Cloud (EC2). virtualisation capabilities and performance.
and outsourcing this computing capability Essentially Amazon allows developers to use Fortunately, there are products and
could pose significant risks to their business. its virtualised, remote servers for application technologies uniquely positioned to
Security, reliability, performance, and development and hosting on a pay-as-you- address the needs of cloud infrastructure,
compliance issues are top of mind among go model. Other examples of platform as a both now and as the industry develops this
CIOs as they evaluate next generation service include Google App Engine. innovative computing model. n
architectures. For example, a biotechnology
company may leverage its own servers for An example of software-as-a-service is
advanced drug simulations, as the company Salesforce.com, which has been providing
may be wary of running such sensitive customer relationship management (CRM)
modelling outside its own walls. To take solutions using the SaaS model for nearly
advantage of the flexibility and efficiency ten years and is thought to be one of the
of cloud architectures, they may develop pioneers of ‘as-a-service’ computing
an internal, private cloud, where they delivery. Giant, IBM and Microsoft,
have greater control and security over the have now made their own investments
computing resource. to establish cloud services, and SAP and
Oracle say the next-generation of their
Recommendations:
Use a three-step analysis process to help determine when and where cloud services and architectures are right for your business:
- First, understand business requirements. If the IT is core to your competitive advantage or cannot tolerate risks associated with multi-
tenancy, performance degradation or lack of data transparency for compliance, it makes better business sense to keep the IT in house versus
outsourcing to a service provider. If the IT should be kept in house, but you’d like to consider the benefits of a cloud architecture, then the
next step is to understand the workload.
- Cloud workload candidates are typically new applications written for scale out or virtualisation environments, are not sensitive to latency
and are not integrated with legacy applications. If the workload is suited for a cloud, then next consider the architecture.
- Cloud architectures will either evolve from existing enterprise ‘off-the-shelf’ hardware and software or will be created from the ground
up in a highly customised cloud operating environment. For companies looking to leverage their existing enterprise infrastructure, cloud
architectures will likely evolve with ‘off-the-shelf’ platforms and virtualisation solutions (e.g. vCloud). The largest of companies that are
building cloud operating environments from the ground up will use an ‘optimised’ infrastructure, based on custom hardware, non-standard
software and management tools, and may use either virtualisation or scale-out programming.
Mobile broadband is growing rapidly, so rapidly that the available radiofrequency spectrum
and traditional network architectures can no longer handle the traffic. Femtocells, tiny cellular
base stations, create mobile networks within the home or office. Femtocells economically
deliver mobile voice and data services using existing fixed broadband infrastructure instead
of expensive dedicated lines for backhaul, so households can effectively ‘re-use’ scarce radio
frequency spectrum, thereby reducing the need to invest in the construction and operation
of costly cell tower sites.
Sanjeev Verma is a co-founder and the Vice President of Business Development of Airvana, focusing on strategic direction and expansion
into new markets. Prior to founding Airvana, Mr Verma was Director of Marketing and Business Development for Broadband Networking
at Motorola, responsible for wireless and wireline broadband residential gateway solutions. Mr Verma has an extensive software
development background, and was also a senior manager in Motorola’s strategy group responsible for the Internet and Networking
Group’s broadband networking strategy.
Sanjeev Verma holds an MBA from the MIT Sloan School of Management and an M.S. in Electrical Engineering from the University of
Rhode Island.
Late last year in an open letter to The Times, it must ensure that its citizens have access are currently leading the way, accounting for
British Prime Minister Gordon Brown made to broadband. Those without broadband 60 per cent of total usage across Europe.
the bold statement that universal access to access will be at a disadvantage as they miss
broadband was as essential in a modern a wide range of services and activities, from Mobile broadband has become big business.
economy as water and gas. By comparing shopping, banking, and public services to In the UK alone, each service provider
broadband with the utilities we take for downloading music from iTunes! offers dozens of packages for businesses
granted, the Prime Minister has shown how and consumers to choose from and all are
important broadband has become to our Switching to mobile broadband advertising multi-megabit speeds, along
daily lives. Apart from surfing the Web for with incentives such as a dongle or laptop.
recreation, we also use broadband to access Broadband is no longer restricted to a DSL However, most of the broadband speeds that
news and information, and it has become an connection in the home or at work. Fixed users experience are well below the advertised
essential tool for business and education. line broadband is giving way to mobile specs. A recent study of UK mobile broadband
broadband, which is meeting growing demand speeds, by Epitiro, a specialist in customer
The UK government recently implemented for broadband access on the move. Mobile relationship management, revealed that, on
a policy initiative to modernise Britain’s broadband usage is growing rapidly. Recent average, only 24 per cent of the data rates
communications infrastructure, called research from Berg Insight indicated that by advertised reached the maximum available
‘Digital Britain’. The policy is driven the end of 2008 the number of connections throughputs. If mobile broadband is going
by the realisation that for a country like in Europe had grown by 74 per cent since the to live up to the promise of a true broadband
Britain to retain its competitive advantage, previous year. The UK, Germany and Italy service, then it must be able to deliver
“Gordon Brown was correct when he compared broadband to being as vital as water and gas
- without it we cannot function as a society; with devices like the femtocell the chances of the
pipes being blocked are reduced dramatically.”
high-speed connections more consistently. for mobile services, which can potentially of femtocell research and development, and
However, the performance challenges for help initiatives like Digital Britain reach their British-based companies are poised to drive
mobile broadband services, caused by objectives. this new technology forward. Cambridge and
factors such as topological and structural Bath, which are already renowned centres of
obstructions, and geographical distances in Changing the nature of mobile technology in the UK, have emerged as hubs
low-density service areas, are difficult to of femtocell development.
overcome when delivering services using the Femtocells also benefit operators because
traditional outdoor tower ‘macro’ model. they offload traffic from the regular mobile Access all areas
network to save both spectrum and backhaul
There is a device on the market now that capacity. Widespread deployments of The femtocell represents the solution to a
can help mobile broadband services reach femtocells will relieve the pressure on the number of problems that the mobile world
their full potential. This device is capable network and lead to better quality mobile currently faces; the frustration that users face
of boosting the mobile broadband signal by network services becoming more widely when there are lapses in coverage, and the
making intelligent use of the radio frequency available. churn experienced by operators when they
spectrum and the existing fixed broadband are unable to provide consistent and high
network infrastructure to concentrate network In addition, the femtocell is an intelligent quality coverage to their subscribers. There
resources directly into the home. This device device that can detect the presence of are other applications for this startling new
is called a femtocell. mobile phones that are within its range. This device, as one can also use the femtocell in a
location-awareness opens the door to a new business environment, giving similar facilities
The base station in your living room generation of services. In effect, the femtocell to small businesses and enterprises. What is
‘knows’ when the user is at home and when most significant is the role that the femtocell
About the size of a wireless router, the other registered phones are in the household. will play delivering mobile broadband and
femtocell is a miniaturised cellular base This functionality can be put to good use in providing high-quality access to services in
station that creates a mobile network the form of security applications that alert the home and in the work place.
within the home. It provides a full signal emergency services of a situation involving
within a home or office, and connects to an intruder, fire or accident. Importantly, the femtocell can help
the operator’s network via an existing fixed policymakers meet their goals of universal
broadband connection. As a result, it provides Enhancing the user experience access to broadband and mobile broadband
comprehensive in-home coverage for voice services and the benefits it can provide.
calls, as well as mobile broadband speeds Beyond emergency services, there are useful
up to five times faster than a macro cellular applications such as the virtual home number. Gordon Brown was correct when he compared
network. In this, a unique phone number is associated broadband to being as vital as water and gas
with the home, rather than with individual - without it we cannot function as a society;
The femtocell can facilitate coverage in mobile users, by automatically ringing with devices like the femtocell the chances
places that have been notoriously difficult whichever registered users happen to be of the pipes being blocked are reduced
for mobile operators to reach, such as home at the time of the call or by redirecting dramatically. The femtocell provides an
in buildings or in remote rural areas. As to voicemail when nobody is home. As a alternative platform for the mobile operators
countries like the UK develop their fixed line society, we have become dependent on our to offer subscribers their own personal
infrastructure to extend broadband access, mobile phones, neglecting the need for a network, taking away the need to contend
the femtocell will be able to play a crucial central landline in the home. A femtocell can for spectrum with countless others, enabling
role in enhancing the broadband experience act as the anchor for all the mobile phones new services, and enhancing existing ones. It
because it leverages the fixed network to in the house in the same way that the base will allow subscribers to interact with mobile
significantly improve the broadband signal. of the cordless phone supports the fixed line broadband services in new and exciting ways,
Femtocells also dramatically improve the telephone. It is comforting to know that in and in the process revolutionise the mobile
economics of delivering mobile voice and today’s society where we have moved away experience. n
data services. They achieve this in several from the traditional wire-line home, mobile
ways: by using the existing fixed broadband can provide us with something as familiar
Internet infrastructure rather than expensive as a home number. Femtocells can provide
dedicated lines, for backhaul; by enabling the basis for many more interesting services
in every household the effective ‘re-use’ of such as automatic synchronisation with
scarce radio frequency spectrum; and by digital media, and remote control of home
reducing the need to invest in the construction appliances, via the mobile handset.
and operation of costly cell tower sites. These
very real economic benefits, in turn, allow Trials of femtocells are underway all across
mobile operators to offer more attractive the globe and in some cases, such as Sprint in
voice and data plans to their subscribers. In the US and Vodafone in the UK, have already
short, the femtocell is a delivery mechanism been deployed. The UK is currently a hotbed
In most of the world, mobile TV has grown slowly. There are several hardware standards
and there is no widely accepted business model. Free-to-air mobile TV, on the other hand,
lets mobile handsets manufactured with an inexpensive TV chip access normal broadcast
TV. Since operators do not need to invest in expensive infrastructure or content, they can
market these phones cheaply and profit from premium services and simultaneous SMS.
Broadcasters also like these phones since they expand their viewer base.
Weijie Yun is the CEO, Co-Founder of Telegent; he is responsible for setting the company’s strategic vision. Dr Yun is a serial entrepreneur;
prior to Telegent, Dr Yun led marketing and product management at Berkana Wireless, Inc., later acquired by Qualcomm. Dr Yun also
served as the founding President and CEO of AIP Networks and was a founder and director of SiTek, Inc., a spin-off resulting from his
work developed at BEI Technologies’ Microengineering Technology Center.
Weijie Yun received his MS and PhD degrees in Electrical Engineering from the University of California at Berkeley.
The wireless industry is in a state of them to rethink the platforms they use to Europe, catching the mobile TV wave
unrest, with operators looking for new distribute their content and look at new ways
ways to generate revenues during the of generating revenues. Fortunately, help is at In Europe, mobile TV uptake has been
economic downturn. Mobile operators are hand in the form of a new handset feature that gradual with most of the industry
in a particularly difficult situation trying to is gaining traction in a variety of markets and discussion centred on spectrum and
maintain their customer base and minimise which does not require substantial upfront standards - that is the mechanics of how
customer churn, whilst growing their investment. Can mobile TV fill the revenue to create a network ecosystem for mobile
subscriber numbers to remain competitive in gap? TV service. In 2008, Viviane Reding, the
a crowded market. As such, they are looking European Commissioner for Information
for new services that will generate revenues
and prove valuable to consumers.
“In Europe, mobile TV uptake has been gradual with most of
In addition, broadcasters are facing challenges the industry discussion centred on spectrum and standards
similar to those in the operator community. - that is the mechanics of how to create a network ecosystem
Dwindling advertising revenues and changes
for mobile TV service.”
in consumer viewing habits are forcing
can transform how you do business and International CTIA WIRELESS IT & E brings this possibility to life. With a
focus on applications, network architecture and advanced technologies, this international event brings a community
of users, carriers, developers and manufacturers together to generate dialogue, discuss innovation and share ideas
www.ctiashow.com
Let our 250+ exhibitors, C-level session By 2016, the value of
speakers and industry leading keynote mobile gains to the
speakers show you how you can mobilize U.S. economy will
your enterprise at International CTIA Maximizing profitability, reach $427 billion per
WIRELESS IT & E 2009. productivity and efficiency year – Ovum
through connectivity.
Smart Energy
Intelligent Transportation
Wireless Health
Mobile Enterprise
Mobile CE
www.connect-world.com
Security threats - and the organised criminals perpetrating them - have changed dramatically
over the past few years, but the security industry’s response has hardly changed. In addition
to traditional worms, viruses and Trojans, we now have to contend with spam, spyware
intelligent ‘botnets’, denial of service attacks and, now, Web-based multi-stage and multi-
variant threats distributed over many hosts. A new approach to enterprise security is needed
and moving protection into the ‘cloud’ - onto the Internet - holds the key.
Anthony O’Mara is the Vice-President of Trend Micro for Europe Middle East Africa (EMEA). Mr O’Mara joined Trend Micro as
European finance director and was quickly promoted to the role of Finance and Operations Director for EMEA and then to his current
role. Prior to Trend Micro Mr O’Mara worked at Axent technology, prior to its acquisition by Symantec Corp., and at Sun Microsystems.
Mr O’Mara began his career at DHL Africa.
The nature of security threats - and the of malware, developing patterns and then By the middle of 2007, however, a new
organised criminals perpetrating them - has circulating them to endpoints - to the end type of ‘Web threat’ emerged - Web-based
changed dramatically over the past few years, user’s computer - to recognise. Before 2001, malware attacks that were different in a
but the security industry’s response has hardly threats including viruses, worms and Trojans number of significant respects. Coming right
altered to meet the new threats. If the industry came to prominence in mass outbreaks like up to date, the game has now changed - and
continues with traditional end-point security, Melissa, CodeRed, Snapper and Spammer. the traditional means of defence no longer
it will soon be fighting a losing battle against Hitting the headlines with significant global hold strong in face of the new foe.
the rising tide of increasingly sophisticated footprints, they were consequently relatively
threats. Clearly, a new approach to enterprise easy to recognise with pattern-based security New threats
security is needed and moving protection products.
into the ‘cloud’ - onto the Internet - holds the Firstly, Web threats are multi-stage and
key, making the most of centralised computer Between 2001 and 2003, there was a huge multi-variant, which means that while they
power and increasing the efficiency and rise in spam mass mailers, then spyware, and might appear to be an innocuous email,
immediacy of response for the user. subsequently anti-spyware products were they contain a link that when clicked would
absorbed into mainstream security suites. In activate a downloader which would in turn
Trawling through the past decade of 2005, these threats were joined by intelligent go to the Internet to test for vulnerabilities
security threats, one sees a rapidly changing ‘botnets’, created by infecting endpoints with and retrieve some other malware - a
landscape. Ten years ago, security threats malware, which would themselves send spam spambot, denial of service bot or other
were static in approach, perpetrated for the or host malicious software or denial of service rogue virus software. Multi-variant Web
most part by hobbyists and were dealt with attacks. Again, scanning endpoints potentially threats are difficult to detect by traditional
by relatively simplistic responses, which infected with malware was enough to isolate heuristic pattern scanning because they start
essentially consisted of collecting samples the problems and quarantine them. out looking like one thing, but then use the
Internet to update themselves, changing for security vendors, but the response of the threats. The approach is a hybrid one because
form over time. security industry has hardly changed since some threats will be caught at the gateway
products first found mainstream adoption over through suspect IP addresses or blocked
Secondly, Web threats are distributed over a decade ago. Traditional pattern matching senders and some locally through signature
many hosts, each in small quantities. Any part might have become more frequent, with some recognition. Although we talk about the
of this picture might not, on its own, seem to be vendors moving from weekly to hourly or cloud, a large enterprise twill still have to
a threat, but link them together and the serious even half-hourly updates, but it is essentially keep a copy of the threat database locally to
threat is clear. Thirdly, Web threats are cross- still attempting to collect samples of malware minimise coverage latency (delay) to the end
protocol, using multi-stage SMTP downloads, and rapidly distribute it to endpoints. user.
HTTP and Web-based messaging to orchestrate However, because of the nature of Web threats
their attacks and, finally, they use a blend of and the cybercriminals’ determination to go Protection network in action
techniques to spread their payload, potentially about their work undetected, it is becoming
requiring multiple layers of protection. increasingly difficult to find a previous A current cloud-client, ‘smart protection
occurrence of what might even be a custom- network’ (SPN), consists of three elements:
At the same time, a major change in the tailored attack. email, Web and file reputation management,
motivation and organisation of cyber- as well as correlation between events and
criminals has taken place, making it doubly Cybercriminals are also becoming more adept a customer feedback loop. It maintains a
difficult to track their activities. The age at developing huge numbers of malware global network of threat intelligence data,
of the mass outbreak is over. The Worm_ variants with different delivery mechanisms. which examines more than 50 million suspect
Downad (Conficker) in January of this year This means that firstly, pattern files searching IP addresses and URLs a day and, in total,
which infected millions of computers through for recognised signatures will get much processes more than five billion requests a
a Microsoft RPC vulnerability was the first bigger, increasing the demands on disc space, day, providing comprehensive protection
such outbreak for years, and while this is memory and CPU usage at the endpoint. against all types of threats including new-
partly due to better patching and improved Secondly, their deployment will take far style Web threats.
protection, it’s also a symptom of the longer and eat up huge amounts of bandwidth.
changing motivation of cybercriminals. Most worryingly, perhaps, even if update files It’s the combination of the three elements that
still could be deployed, the disruption for the makes a SPN so powerful in capturing Web
Today the major incentive for most of user while the pattern files update themselves threats, with the Network able to correlate
the cybercriminal underworld is financial and crunch through all the data would be so between different events, such as a significant
reward - generating cash, by taking control severe that users’ machines would regularly number of emails containing adware that
of machines, securing bank details and slow to a halt. points to a suspect link, or a suspect URL
passwords, and perhaps passing on these that downloads a piece of software that later
details to other parties to exploit. In this By 2015, if we continue with the current becomes malware. The correlation between
respect, a mass outbreak is counterproductive approach to end-point security, the the different occurrences helps build up a
to their aims - they do not want to be caught, deployment overhead for IT operations in a global picture, and ultimately makes for a
they do not even want to be noticed. large enterprise will simply be too much. A better threat database.
single pattern file update could take more than
Studies have revealed an underground digital five hours to deploy through a company with The SPN also uses global feedback loops to
economy that has sprung up around the trade 250,000 global employees, which is hardly a track back from a security threat and isolate
in such vulnerabilities, with independent speedy response to what could be a business- its cause, linking together research centres,
businessmen employing the services of critical threat. With companies receiving customers and products and services. So, for
malware vendors, and working with anti- updates up to eight times a day, and many example, if a spam email points to a suspect
detection and toolkit vendors to hide their large organisations testing pattern files in a URL that is later linked to an occurrence of
payloads from detection. They recruit botnet controlled environment before deploying them malware, the email will be instantly blocked
vendors and hackers to disseminate the across the corporate network, the challenge of at the local gateway, the URL blacklisted
deadly payloads. Prices on the black cyber keeping up with the latest pattern file updates in the Web reputation database and the
market are surprisingly affordable, with just looks impossible. Network administrators file pattern uploaded to the file reputation
US$100 a day buying you a distributed denial would spend all their time managing updates, database.
of service attack while $1,000 can purchase networks would be crippled by the constant
10,000 compromised PCs. updating activity and endpoint performance SPN is sometimes compared to an online
would be compromised. That is to say nothing version of the Neighbourhood Watch scheme,
The growth in the volume of malware attacks of remote or mobile workers who may not where citizens constantly look out for each
meanwhile is phenomenal, rising from 1,738 even receive the updates until several days other and head off trouble before it occurs.
unique examples in 1988 to 5.7 million in just after they have been issued. The days of the police officer on the beat
the first six months of last year, according to trying to patrol every street, blowing his
AV-Test.org. Currently, we are seeing around Clearly a new response is needed which whistle and racing to combat crime after
800 incoming threats per hour, and if they makes the most of the latest computing it has happened are long gone. SPN is a
continue to grow at their current rate, by 2015 technologies and resources. The answer new approach that takes advantage of the
there will be as many as 26,500 per hour. lies in transferring the burden for storage latest technologies; traditional approaches
and detection intelligence to the cloud. are already being stretched to the limit
New challenges This ensures minimal resource usage at the and the situation is only going to get more
endpoint, consistent traffic flows over the challenging. n
The changing nature and burgeoning quantity network, the immediate handling of new
of threats creates a number of new challenges threats and increased awareness of localised
34 PM
Broadband
Broadband gives operators direct access to customers and enables rapid delivery of new
applications and services. Regardless of bandwidth, an operator’s success resides in its ability
to provide reliable access to services and learn how to monetise them effectively. Increasingly,
third party developers and partners are launching new applications and services over carrier
networks with little monetary benefit to the operator. Nevertheless, operators can take steps to
ensure their infrastructure can effectively monetise new services and avoid missing valuable
revenue.
Tim Porter is Vice President of the EMEA region for the Oracle Communications Global Business Unit. Mr Porter joined Oracle through
the Portal. Mr Porter had been with the Portal, initially as the Global Vice President for Vodafone, before embarking on his current role.
Based in the UK, he is responsible for Oracle solutions in the Billing & Revenue Management, Operational Support Systems and Service
Delivery Platform areas for regional & global telecommunications, media and content service providers. Mr Porter has a wealth of
experience in the telecoms, utilities and software industries. Throughout his career he has been involved in sales, delivery and business
management roles and worked in various organisations including Digital Equipment, IBM and Sema Group plus a previous period with
Oracle. Tim Porter also held a commission in the Fleet Air Arm and played Rugby Union and Rugby League at a high level.
Since early 2000, the advent of broadband many governments have adopted measures for information, so vital to fuelling a healthy
Internet has provided faster download to drive forward the connected economy. In economy, people realised the revenue-
speeds, exponentially increasing the business the UK, the Prime Minister in recognition generating potential this access to end users
opportunities offered by the Internet. No of the importance these sectors have on the provided. As such, creation of content in the
longer faced with slow and costly dial- UK economy and society created the role of form of new applications and services by third
up methods, for the first time users could Minister of Communications, Technology and party developers and partners has increased.
download vast quantities of information, Broadcasting. The Minister’s recent Digital The charges levied on users for downloading
faster and at significantly reduced cost. Britain1 report, found that in the UK the and using these applications has significantly
Furthermore, the development of WiFi meant information and communications technologies boosted the levels of data traffic across the
the Internet was no longer confined to the and broadcasting industries together account networks.
home, but capable of servicing the needs of for 5.9 per cent of Gross Domestic Product,
an increasingly mobile society, whose appetite with a turnover of over £52 billion a year and Acquisition and infrastructure
for information on the move continues to an employee base of half a million people.
grow. Operators have been focused on developing
There are wide ranging reasons people their triple-play, quad-play and now fixed-
As a result, WiFi and broadband have become utilise broadband and WiFi. As operators mobile convergence offerings to provide
integral to economies across the world and worked to keep up with growing demand complete packages to end users. The ability to
1
Digital Britain final report, June 2009, http://www.culture.gov.uk/images/publications/digitalbritain-finalreport-jun09.pdf
“Competition is very fierce in the telecoms market; new players come and go very quickly.
A recent example of this was GO Atheeb, a new Saudi Arabian operator that implemented
software to automate, manage and support the provisioning of its residential broadband and
WiFi services in Saudi Arabia. ”
offer customers broadband Internet, television This can be seen in the US with AT&T’s ‘all- to understand which type of customer uses
and telephone with wireless service is vital you-can-eat’ data subscription2 for Apple which services and determine which services
to attract and retain customers by providing iPhone subscribers. The resulting downloads and applications are most profitable.
them with attractive, well-rounded packages. are using vast amounts of network capacity,
Furthermore, the ability to deliver various and with the ‘all-you-can-eat’ tariff, AT&T With a clear view of its customers, an operator
forms of content to end users via these is seeing very limited returns. Considering can use this information to drive how it
services is essential to differentiate operators the number of other handsets with similar interacts with customers and the new products
from their competitors and attract third party abilities that AT&T subscribers have, AT&T and services it offers them. By integrating
developers and partners. might not be able to handle the demand this information into other systems such as
should these subscribers also decide to utilise billing and revenue management, operators
Many service offerings, however, were these capabilities. As greater numbers of can improve time-to-market for new services,
realised through acquisition rather than subscribers begin to use the features of their manage and monetise different revenue
organic growth; consequently, operators increasingly common smartphones, other streams, automatically process payments to
fended up with a mish-mash of custom-built operators will also see strains in their network ensure all stakeholders get their share of the
technologies for each part of the business. As capacity. revenue and lower overall operational costs.
developers and partners began to create and
charge users for content, operators could no Taking AT&T’s experience into account, Rapid service innovation - The right
longer properly assess how these applications operators worldwide will need to anticipate infrastructure can help a business understand
and services were being received by their the problems and address them beforehand. its customers and bill them effectively; this
customers. Providing customers with enough bandwidth is essential to survival in today’s competitive
should be a prime concern since all else is market. Equally important is the ability to
Because they could not evaluate which based upon this. Fundamental to addressing provide customers with up-to-date and cutting
applications and services were the most these problems, is the ability to identify edge services. Service delivery platforms
profitable, they could not maximise potential customer preferences - which services are in (SDPs) make rapid service innovation
revenue. The different platforms in each greatest demand and those that are not. Other possible. SDPs integrate CRM and billing
division, inherited from acquired companies, important questions are how to curb excessive applications, providing operators with the
made it difficult to automatically take a slice network usage by those with little need for ability to rapidly deploy next generation
of the revenues generated by third party it and how to efficiently manage those who services, assess the customers’ uptake of
applications and services; analysing and do require it, to ensure they get the quality them, and automatically bill for usage through
allocating revenue streams to each stakeholder of service they need. By getting a handle on an end-to-end streamlined process.
was time consuming and costly. these issues, operators will be able to manage
their services more effectively and safeguard Competition is very fierce in the telecoms
Essentially, many operators found that quality of service for all customers. market; new players come and go very
although their acquisition strategies let quickly. A recent example of this was GO
them offer new services, the accompanying, The three pillars Atheeb, a new Saudi Arabian operator that
disparate systems, hindered their ability to implemented software to automate, manage
collect revenue from them. In order to overcome these issues, operators and support the provisioning of its residential
need to align their IT requirements to their broadband and WiFi services in Saudi Arabia.
Operator challenges business needs and focus on three pillars - The company needed to be up and running,
delivering rapid service innovation, customer from scratch, within six months and used a
The impact of acquisitions is but one of intimacy and operational excellence. combination of various billing and revenue
the challenges operators need to address management, CRM and service activation
before moving on to the important issue of Customer intimacy - Understanding the software to achieve this in the aggressive
monetising services more effectively. As customers’ needs, and which services will timescales set.
demand for new applications and services gain traction, enables operators to develop
increase and higher capability handsets, PCs more profitable services and applications that Operational Excellence - In addition to
and other electronic Internet-enabled devices yield the greatest return on investment. With understanding customers and achieving
become the norm, strain on the networks will customer relationship management software, rapid delivery of new and high quality next-
increase. Operators need to attract and retain capable of drilling down into their databases generation services to market, operators need
customers with lower tariffs and ‘all-you-can- and removing the data silos, operators will to deliver these at lower cost to the business.
eat’ data packages, but if current networks gain an accurate view of their customers’ Operators rely on their ability to deliver
cannot meet demand, it will lead to decreases tastes, general usage and spending patterns. quality services to customers; however,
in quality of service, customer satisfaction With access to this information across the without the right systems in place to support
and lost business. entire customer base, operators will be able these services, much of the value will be lost.
2
TG Daily, 12th May, 2009, Samantha Rose Hunt, http://www.tgdaily.com/content/view/42416/145/
“To prevent this from happening operators need to have an infrastructure equal to the task
of cost-effectively supporting these services, taking into account their IT, business support
systems and operations support systems.”
To prevent this from happening operators monetisation of applications and services is delivery, operators can more effectively
need to have an infrastructure equal to the task staggering. Attention to these three pillars monetise their complete portfolio of
of cost-effectively supporting these services, gives operators a powerful way to address offerings, increase their earnings and ensure a
taking into account their IT, business support many of the important issues they face competitive market advantage. n
systems and operations support systems. With in today’s economic climate. Not taking
revenue consistently under pressure due to the advantage of this potential could have serious
economic slowdown, increased competition consequences for operators as increased
and the need for competitive pricing, the cost capabilities at reduced rates lead to over-
structure needs to adjust to maintain bottom usage and continued strain on networks as
line profitability. Without the right technology they develop.
to help, operators will find it difficult or
impossible to reduce service costs adequately. Broadband has the potential to generate even
greater revenues that many operators did
Given how broadband and WiFi have not take full advantage of in the past, giving
become embedded in the everyday activities third party developers and partners free
of consumers and businesses alike, the reign. Ensuring the technology is in place
operators’ potential earnings through effective to underpin billing, CRM and rapid service
Connect-World
An insight into the future
www.Connect-World.com
30 n EMEA issue 2009
Taking place this 7-9 September, the technologies. The BBWF will present its The Broadband World Forum’s InfoVision
Broadband World Forum Europe 2009 renowned world-class education in more Awards will also take place honoring the
will once again gather the world’s top ICT than 50 keynote addresses, plenary panels, most unique and beneficial technologies,
thought leaders and decision makers to the workshops, and sessions. applications, products, advances, and
CNIT La Défense in Paris, France. services in the industry.
Over 100 vendors from around the globe will
The premier annual broadband event will make up the high-caliber exhibition and top Key event sponsors of the Broadband World
host the entire ICT value chain and provide product experts will display first-hand the Forum Europe 2009 include Official Host
winning solutions to those striving to latest broadband technologies, equipment, Sponsor Orange, as well as Alcatel-Lucent,
actualize the promise of broadband. applications, solutions, and services needed Nokia Siemens Networks, Ericsson, Huawei,
to meet the ever-increasing customer demand ZTE, ADVA, AVM, Motorola, NEC, and
“Together with the Host Sponsor Orange, for innovative solutions. Thomson.
we look forward to uniting the industry’s
foremost authorities to undertake the With a history of drawing the world’s ICT The IEC welcomes all ICT industry
essential broadband discussions, to address decision makers to the World Forum, the professionals to attend especially those
the ever-changing challenges and emerging event averages 77 percent of attendees at involved with Carriers/Service Providers,
solutions, and to get back to business this manager-level and above. In addition, more Enterprise, Software Providers, Integrators/
fall,” stated IEC President John Janowiak. than 100 service provider companies travel Aggregators, Content, Over-the-Top-Carriers,
from around the globe to conduct business at Residential, Equipment Manufacturers, and
Themed “Delivering the Promise,” the the conference and exhibition. Semiconductor Manufacturers.
Broadband World Forum Europe 2009
will present key industry leaders at the This 7-9 September 2009 in Paris, France,
event including World Forum Chair Vivek BBWF will:
Badrinath, executive vice president, Monday, 7 September
Networks, Carriers, Platforms, and Didier Lombard Deliver the Promise of…
Infrastructure, at Orange; and Keynoters Chairman and Chief Executive Officer
Didier Lombard, chairman and chief Orange Broadband
executive officer of Orange; Jean-Briac (JB) FTTx
Perrette, president of the NBC Universal Ben Verwaayen Sustainability and industry recovery
Digital Distribution division at NBC Chief Executive Officer Fixed-Mobile convergence
Universal; Stefano Pileri, chief technology Alcatel-Lucent Mobile broadband
officer of Telecom Italia; Carl-Henric Home networking
Svanberg, president and chief executive Carl-Henric Svanberg LTE
officer, Ericsson; Mika Vehviläinen, President and Chief Executive Officer Future of Web content
chief operating officer of Nokia Siemens Ericsson TV/IPTV
Networks; and Ben Verwaayen, chief Web 2.0
executive officer, Alcatel-Lucent. Tuesday, 8 September Service delivery platforms
Stefano Pileri Enterprise
The event provides an opportunity “to share Chief Technology Officer SaaS
and discuss in a spirit of partnership all Telecom Italia Open Source
along the value chain - content providers, Cloud computing
equipment vendors, telecoms operators… and Jean-Briac (JB) Perrette IMS
helps us create value for the future,” declared President Mobile backhaul
World Forum Chair Vivek Badrinath. NBC Universal And much more!
Digital Distribution
Industry professionals will have the Visit www.bbwfeurope.com/register! n
opportunity to gain insight from more Mika Vehviläinen
than 250 global leaders at the forefront Chief Operating Officer
of broadband service, applications, and Nokia Siemens Networks
PROMOTIONAL FEATURE
Unified communications
As Global Crossing’s Managing Director for Europe, the Middle East and Africa, Edward T. Higase is responsible for the company’s sales,
marketing and operations efforts in the regions. Previously, Mr Higase was Executive Vice President and Chief Customer Experience
Officer for Global Crossing. Mr Higase also served as Global Crossing’s Executive Vice President, worldwide carrier services in which
capacity he oversaw the wholesale carrier voice and data business worldwide, serving fixed and mobile telecom carriers, cable TV, ISP,
and ASP customers.
Mr Higase began his career with AT&T in Japan where he held a wide range of senior and executive positions in marketing, sales and
business management across AT&T’s business markets division, consumer markets division, outsourcing unit, and the international
business unit. He last served as Service Line Director for networked voice premises management at AT&T Solutions’ world headquarters
in New Jersey, U.S.
Small to large corporate organisations, become mobile and collaborative. The burden of travel, its associated costs, and
aggressively looking for ways to cut costs current economy may prove the tipping point the productivity lost away from the office.
and add value, have had to re-evaluate their for many businesses, forcing them to start Conferencing solutions are designed to lower
business models in order to survive this taking the latest technologies more seriously, the total cost of ownership (TCO) and add
turbulent economy. Businesses have been to adopt new technology-centred working increased value. As well as cost optimisation,
forced to streamline their processes and practices, and to treat technology as an added- conferencing solutions reduce the company’s
increase productivity to remain competitive, value cost saver rather than as a cost centre. carbon footprint and help companies meet
whilst the need to improve communications their responsibility for the ‘greening’ of the
amongst customers, colleagues and Communications technology has frequently environment as part of their corporate social
partners across the world remains critical. revolutionised the way business is conducted. responsibility (CSR).
Convergence is indeed the future for Telephones, email, mobile phones, mobile
business communications, but do the long- Internet devices have all changed the way IP and demand for bandwidth
term benefits of this way of communicating people work and interact in ways big and
outweigh the initial set up and migration cost small. Network-based collaboration services Post recession, we are likely to see the
for a business? are another increasingly familiar element emergence of new business models that are
of the communication ecosystem. With the lighter, more nimble and flexible, due in
Although it has been talked about for some right solution, geographically dispersed large part to the technology and networks put
time, we are only now beginning to see a true employees, customers, and providers can in place to connect customers and partners
21st Century way of working as businesses be linked in a virtual office, eliminating the around the globe in real time. Businesses
will promote a greater level of openness and access technologies used over wide area media, devices and applications, UC promises
interconnectedness and be more willing to networks (WAN). In essence, Ethernet lets to free up time, increase productivity,
obtain IP (Internet Protocol) resources from businesses cost-effectively connect multiple streamline communication channels, and
others rather than create their own facilities sites to each other and to the Internet and can provide better customer experiences.
from scratch. Accordingly, businesses are flexibly adapt to individual needs. Although many enterprises have deployed
beginning to see outsourcing as an attractive VoIP, the widespread use of UC applications
option that frees them from managing the The case for convergence for collaboration, telecommuting, presence,
migration to IP and the ongoing maintenance automated call centres and automated
of complex systems; outsourcing frees them - Convergence is the logical step towards business operations have only just begun to
and their resources - to focus closely on their creating scalable, adaptable network materialise. Convergence, on the other hand,
core competencies and the resolution of their infrastructure that can be changed as business has generated proven results and tangible cost
business problems, rather than worrying about needs require. Convergence is still in an early savings for several years running.
tools for effective communication. stage; it offers a roadmap and a destination,
but the pace of network evolution can At the user level, organisations are using
Today, almost all businesses need to vary greatly by company. Convergence is both Ethernet wired and WiFi SIP (Session
be connected online, via the Internet or more than integrating your data and voice Initiation Protocol) phones to connect to
their private networks, to run effectively. services over a WAN, it is an end-to-end the VPN and place calls which bypass tolls.
Businesses are also beginning to see the value service environment where all networking Some remote workers have completely
in social networking sites - as a cost effective applications - voice, video, data and rich eliminated landlines, using IP softphones to
way to market their business and engage in media - are managed and delivered on a single send and receive calls via laptop and Internet
rich conversations with customers, partners IP-based infrastructure. This holistic approach connection - services like Skype have gained
and prospects. However, as these uses grow to convergence includes convergence of the widespread mainstream usage, for example.
broadband usage grows and put added network, applications and operations. Industry trends indicate broader acceptance of
pressure on bandwidth. SIP phones and software-based solutions like
The vast majority of global enterprises today Microsoft’s Office Communications Server
This increasing demand for data are migrating to MPLS-based (Multiprotocol 2007 as time goes on.
communications is forcing enterprises of all Label Switching) network IP VPNs (virtual
sizes to re-evaluate their current networks. private networks) because they have become The lures of long distance call savings and
With next-generation enterprise applications, the foundation for facilitating the evolution reduced maintenance costs have driven
such as disaster recovery, storage, and packet to convergence. The benefits of convergence many global enterprises to embrace VoIP
voice and video all driving steep increases in depend greatly on the business needs of technology and merge their voice and data
bandwidth demand, enterprise IT managers each enterprise, but the main advantages networks. However, convergence is driven
have quickly realised that traditional data are cost reduction and productivity. Savings by business requirements beyond the cost
services using legacy technologies (such as result from the consolidation of multiple savings offered by VoIP. It has a much wider
private line, Frame Relay, and ATM) simply services onto a single access and connection scope - the convergence of work, home and
do not suffice. Traditional data services are using a single network infrastructure with a mobile communications with a wide variety
expensive to scale, limited and inflexible in streamlined IP LAN environment. This results of applications that work seamlessly across
their service options, operationally complex, in efficiencies due to network simplification one IP-based infrastructure.
and painfully slow to upgrade. Enterprise IT and resource optimisation.
managers have the extremely difficult task With the right IP infrastructure, companies
of satisfying rapidly increasing bandwidth Unified communications can realise significant cost savings and a
requirements with dwindling budgets and quick return on investment. Enterprises can
services that cannot meet their needs. Convergence provides the necessary utilise converged IP technology to improve
infrastructure for unified communications their competitive advantage, streamline and
Ethernet, therefore, is rapidly becoming the (UC) - the integration of non real- simplify their internal operations and increase
primary communications technology for time communication services such as productivity and cost optimisation. This
organisations of all sizes. Most businesses voicemail, e-mail and SMS with real-time evolving infrastructure will also enhance the
already have Ethernet local area networks communication services such as IP telephony experience for customers through improved
(LANs). By extending Ethernet beyond the and video conferencing. UC provides a set of communications - vital in highly competitive
office or campus to the metropolitan-area, products that offer a consistent unified user environments where business is difficult
region or around the globe, businesses can interface and user experience across multiple to obtain and maintain, so customer care
gain greater reliability, performance, and devices and media types. By optimising becomes paramount.
flexibility than they could with other wide bandwidth utilisation for voice and data,
area transport methods, often at lower cost. converged networks greatly reduce the direct Those that survive the recession and come
Ethernet has become the preferred transport costs associated with phone calls, as well as out ahead of their competitors will be those
for advanced services such as IP telephony, the indirect costs associated with network that do not shy away from spending, but
video streaming, medical imaging, and data management and maintenance. rather invest wisely for the future and long-
storage. Factors contributing to its popularity term growth, and make best use of the
are reliability, ease of adding bandwidth in The benefits of UC have been touted communication channels they have available
small increments, potential lower costs and with enthusiasm for quite some time. By to them. n
interoperability with traditional broadband integrating disparate communications systems,
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The secret of mobile money systems is the distribution network behind them - the innumerable
merchants working with mobile operators to top up pre-paid airtime minutes and the point-
of-sale (POS) terminal, the automatic teller machines, ATMs that serve the same purpose. It
is at these points that one deposits money in the system or takes it out. It is this distribution
system that is changing the lives of millions of people who never before had access to the
banking system.
Vincent Kadar is the President and CEO of Telepin Software, a provider of mobile money transaction platforms. Vincent has more than 16 years of executive
experience in software technology companies for wireless and telecom networks. Prior to Telepin, Software Mr Kadar was founder and CTO of Airwide Solutions, a
provider of mobile messaging. Mr Kadar also served as Director of Wireless Technology at InfoSpace Inc, and in senior technology positions at CrossKeys Systems
and Accenture. Mr Kadar has several patents registered in the areas of networking and wireless services, and is a frequent author and speaker on mobile money
trends and issues.
Distribution networks have many different selling products for the mobile operator. realized the power of Coca Cola’s distribution
forms and definitions. Content distribution Mobile phone recharge, for example, needs network when he looked for methods to bring
networks are commonly used to deliver online a widespread distribution network. In today’s medical aid to people Africa’s rural regions.
content and media on the Internet. Other types mobile networks, distribution networks have He asked Coca Cola to use their distribution
of distribution networks play a vital role in little visibility and few control mechanisms. channels - which are amazing in developing
the delivery of utilities such as electricity, fuel Distribution networks in a mobile network are countries - to distribute rehydration salts.
to power industries and residences, water, fundamentally a set of businesses functioning By dedicating one compartment in every ten
communications services and the like. as a unit, interacting with the shared market crates to the rehydration remedies, lives could
of mobile subscribers, providing transaction be saved.
There are many examples of distribution services, and building a common set of
networks for consumer products from large relationships. Barry’s ‘life-saving compartment’ efforts
retail chains such as Wal-Mart and Tesco to resulted in ColaLife. ColaLife is a voluntary
global enterprises such as Coca Cola. ColaLife social movement backed by thousands
of supporters through a Facebook group
A mobile network also has a distribution As an example of maximizing distribution dedicated to the project. ColaLife opens Coca
network - an ecosystem of agents, sub-agents, networks, blogger Simon Barry, while Cola’s distribution channels in developing
retailers, and street-sellers (merchants), working on a British Aid programme in 1988 countries to save lives, especially children’s
lives, by carrying much needed ’social hundreds to thousands and, in some regions, to peer (P2P) money transfers and pay bills
products’ such as oral rehydration salts and even millions of merchants. electronically, and the like, using a variety of
high-dose vitamin A tablets. channel interfaces.
Understanding merchant requirements and
Barry highlighted the inherent power usage behaviours are the key to ensuring Where do we go from here?
and force that a distribution network can adoption of a new service offering. Providing
provide a community in need of medical a broad range of terminal capabilities to Mobile money is the wave of the future.
aid. Many distribution networks have the merchants also ensures a robust offering Mobile payments will transform the lives of
capability to deliver more than what they are for all the types of merchants within the unbanked consumers, letting them pay bills
delivering today. As an example, electrical distribution network ecosystem. using their mobile phones instead of spending
grids designed to provide power have been hours in queues and will bring operators
augmented to provide Internet connectivity. Understanding the distribution network significant new revenue streams. The
Mobile networks have been transformed to equates to understanding an operator’s unbanked community is huge; in 75 per cent
deliver more than just voice signal, and now business and understanding what has to of the world’s countries, most citizens have
carry valuable data to people in regions where be brought to the table to better drive their no access to banking facilities. The GSMA
other forms of communications infrastructure business. estimates that mobile money presents a five
cannot reach. Innovation and technology billion dollar market opportunity.
often plays a key role in the transformation Modelling a mobile transaction distribution
of distribution networks by helping markets network requires a deep understanding of To take advantage of this opportunity, mobile
leapfrog the historical development patterns how it is organised and functions. A robust operators need only make the most of the
that the developed markets followed to get model can help one to find evolutionary networks they now use to recharge prepaid
where they are today. A direct leap to a new solutions that bring profound changes with airtime minutes. The recharge distribution
technology, wireless communications for little disruption. Key elements to understand system can be readily modified to handle such
example, can have a revolutionary impact include: services as bill payment and mobile money-
upon local economies and the lives of the transfers. These services not only meet a
people. • the distribution chain vital market need, they provide operators
• hierarchy with important cost reductions and generate
The distribution network sub-economy • logical layers and groupings lasting, significant, revenue streams.
• groups and accounts
Today, distribution networks generally depend • partitioning Electronic recharge systems can save as much
upon loosely managed financial systems • terminals as 60 per cent compared to traditional scratch-
without the sort of control mechanisms needed • access control rights, permissions card or voucher-based systems. Mobile
to ensure the proper distribution and delivery and policies electronic top-up and payment applications
of financial products. Mobile distribution • commissions and taxes can be economically deployed and integrated
networks, though offer mobile subscribers • money cycle control using the thousands of POS, ATM and/or
ways to recharge their mobile accounts and, • key usage characteristics of the PCPM (public cash and payment machine)
more importantly, are a key feature of the merchants terminals already installed in existing
mobile operator’s revenue generation system. networks to ‘top-up’ mobile accounts and give
A distribution network normally includes a users unparalleled access to financial products
The ‘pre-paid minute recharge’ distribution number of separate businesses functioning as and services.
networks mounted by mobile operators are a unit and a set of relationships fundamentally
increasingly being pressed into a service underpinned by a common technological There are many examples of distribution
the mobile operators never expected - as the platform; it operates through an exchange networks that revolutionise the services and
backbone of a financial system that provides of information, resources, and artefacts. products that corporations provide to their
banking services. In many developing A single-switch mobile transactional customers. ColaLife is an example of how a
regions of the world, most of the people are architecture can provide this capability, along distribution network can even provide life-
‘unbanked’- few have ever even seen the with the ability to create and control a wide saving support in previously unreachable
inside of a bank - but the values stored in the range of network topologies. By adopting regions.
mobile phone can be transferred to others or such an approach, mobile operators can
used as payments if the operator installs the provide mobile-money services with ease and Technology gives us better products and
appropriate controls and transfer systems. empower the distribution network to stimulate services, but it is the distribution systems
incremental revenue, while positioning their that brings these advances to businesses and,
Not all mobile distribution networks are communications networks and distribution ultimately, to us - and make life work better
the same. Some operators may have simple networks for the next wave of mobile for all. n
hierarchies with a maximum of five major financial services.
distributors, while others may have more than
a couple dozen. Operators may have their own Mobile money solutions work with a wide
branded distribution network or sell through range of electronic, transaction-based
other major networks. What is important, applications enabling subscribers to recharge
though, is the range the distribution network their mobile airtime without the use of
can span - as deep hierarchy can encompass physical cards or vouchers, facilitate peer
Mobile money is a revolutionary service for people in developing and emerging markets.
It gives people without access to traditional banking services all the advantages of a bank.
For workers from developing regions working in other countries or cities mobile money
is an economic lifeline to their families, letting them easily and inexpensively transfer
the money they earn abroad to their families. In developed countries, mobile broadband
provides sophisticated services, but in emerging markets, SMS is more than sufficient for
their needs.
Justin Ho is the Co-CEO of Singapore based Utiba Pte Ltd, a pioneer in the field of mobile based transaction systems. Mr Ho carries
more than two decades of experience in the technology and finance domains. Before founding Utiba, Mr Ho had worked with NCR and
Compaq Computers at various senior positions related to security and electronic commerce. He also founded Emerge Asia and was its
Managing Director.
Many people believe that wireless broadband by 2015.1 It will influence economies and protect their money supply. Banking interests
will enable a world of mobile money. But lives and help lift emerging markets from conflict with mobile operators and scepticism
the reality is that in the developing world, its poverty. Mobile phone penetration rates in the exists regarding security and business models.
SMS and regulations that are driving mobile developing world have reached 97 per cent There are a wide variety of solutions in
money adoption, not faster Internet speeds. and 49 per cent in emerging markets so this various countries, but nothing yet that works
Some people also confuse mobile money will be possible. 2 across the world. Regulators are questioning
to mobile banking which is a mistake. Put to whom the payments belong and what
simply, mobile banking ties the customer The key hindrance to the growth of mobile the roles of banks and mobile operators are.
to a particular bank and must be transacted money is a lack of internationally recognised Another issue is how do central banks in each
through that bank’s platform; it is generally institutions, systems, and regulations to allow country open up payments whilst maintaining
limited to how and with whom that bank mobile money to become not only ubiquitous control of the sovereign integrity of their
allows the customer to pay. Mobile money is but also borderless. There is still no payment systems and managing issues such
completely different. One can pay for goods international clearing and settling organisation as money laundering and terrorist money
and services using their mobile phone for for mobile phone-to-mobile phone payments, movements.
anything, anywhere, and not be restricted but this is where the opportunity lies. A
to the location of the funds or the type of global mobile payment system - akin to Visa Big in Japan
product bought. or MasterCard - would be useable anywhere
in the world and availability for all provides Wireless broadband’s application to mobile
Global money economic opportunity for all. money in developed markets is driven by
content that people are prepared to pay for.
We need a global mobile money system We don’t have it yet because of the many You need both, but it is a ‘chicken and egg’
useable anywhere in the world. Analysts vested interests in each country. Regulators situation. If you cannot be paid, you won’t
estimate there will be 1.4 billion wallets are trying to understand a new technology and deliver the content. If you cannot create
1
Mobile penetration rates: Source ITU
2
Edgar, Dunn and Company - Mobile Wallets and Mobile Payments
critical mass for content, why bother with In emerging markets, an individual’s needs many others. These emerging economies, with
complicated payment systems? are still based upon necessity. Life in a their 3.5 billion people, currently lack access
developing country, sitting at the bottom to formal financial services, but by 2012,
DoCoMo i-mode3, opened a content billing of the economic pyramid and Maslow’s 1.7 billion people without bank accounts
service for merchants and charged nine per hierarchy of needs, is clearly different. will have mobile phones and access to data
cent4 of the bill value. I call this a ‘friction services.
charge’. Content providers collected 91 per It is 2002 and Grace is a Filipino worker
cent of the revenue so they made enough who has moved to Singapore as a maid; she So how is it starting to work? Industry played
profit to develop more applications and is known as an overseas foreign worker a vital role by investing; Regulators provided
content. The low charge allowed the payment (OFW). She dos not have a bank account and legislation that allowed a mobile financial
system to flourish. Soon, conventional goods her family lives in a remote village called system to develop; and rural banks joined the
and services including train tickets, parking, Cantilan, a town r twelve hours by bus to the mobile eco-system before commercial banks
music, tickets and karaoke were added. nearest bank. focusing on high income customers noticed
Contactless payments and credit card payment the opportunity. The data is transferred using
using mobiles expanded the capability. Grace works for US$200 per month; she gets SMS (Short Message Service) or USSD
one day off per month and sends US$170 (Unstructured Supplementary Service Data),
A fraction too much friction back home on that Sunday. It takes time so there is no need for wireless broadband.
and costs about US$15, which is nine per This can change people’s lives as long as
Around the same time in other developed cent of the amount sent. Her husband, Rico, governments establish compliance and
countries, the battle was lead by operators owns a rice field and makes about US$70 regulatory policies that allow mobile operators
who were restricted to content billing and per month. Grace’s money is critical to the and banks to effectively deliver these services
could not create ‘electronic money’. If they well-being of the family - to send the three where they are needed. Leaders in the area
wanted this capability, they had work in children to school, pay for power, food, have been the Philippines and Brazilian
partnership with banks and by all accounts the health care, school fees and save money for central banks, and it is our responsibility to
banks were not motivated. Telcos and banks a small tractor. Rico makes a two-day trip to make this happen and give the world’s Ricos
asked, ‘who owns the customer?’ the nearest town each month to collect the and Graces a better life.
remittance money. The cost of the travel and
Early applications allowed mobile payment time out of the field would amount to US$7. Money makes the world go round
at a vending machine or a transport
turnstile. These payments promised greater It is now 2009, mobile penetration has Banks and mobile operators will work
convenience, but they required standards for exploded in the developing markets and in the together because it is good business; every
proximity payment and expensive upgrades Philippines data options such as SMS have country needs mobile money systems. This
for phones and the bank’s POS readers. An opened up new services. Globe Telecom has will allow OFWs with ‘mobile wallets’ to
industry stalemate developed. Even content launched G-Cash and Cantilan is supported by send money home to emerging markets.
billing under the operator’s domain struggled a rural bank called Cantilan Bank. Merchants
and the operators’ ‘friction charges’ of up to accept G-Cash for payments including Imagine Raul, a worker from Mexico, toiling
60 per cent of the revenue caused the system power, water, medicine and supplies. G-Cash away in Madrid. He receives his salary
to flounder. Where Japan succeeded, Europe agents convert G-Cash to cash as needed and directly in his mobile wallet. On a rare night
failed. Cantilan Bank accepts loan repayments in off, MGM might stream a preview of the
G-Cash. Grace now remits her salary using latest James Bond Movie to Raul’s phone
Now let’s head back to Europe in 2009. G-Cash Remit at a cost of US$3.50 and by broadband and let him buy tickets to the
Previous EU legislation only allowed banks her husband Rico now gets Mobile Money film with a message from his mobile. He will
to issue electronic money. Telcos had done so instantly on his phone, saving a two-day trip. pay for the train ticket by letting a proximity
for specific products like ringtones and then He pays for his bills and tractor loan using reader scan his mobile and go to the city to
only with a high ‘friction charge’. G-cash and converts half of it to cash in see the film. Later, he will check his family’s
Cantilan at his local agent. bills online using his mobile broadband link
Show me the money and use a mobile money remittance hub to
The Human League pay these bills in Mexico City - directly from
New legislation expected in August 2009 Madrid - using his mobile money wallet.
means that other non-bank institutions will Human impact is measured in time, money
be allowed to issue ‘electronic money’ for and convenience; in this example, a small Back in Mexico City, Raul’s wife will also
payment of any goods and services. This rural bank was able to extend its reach using receive a remittance he sent directly to her
breaks the standoff between banks and telcos mobile phones to places which otherwise wallet by SMS. Although broadband access
and open a new age for mobile money in could not support a branch. The operator was catalyses wallets in developed countries, SMS
Europe. Content providers will now be able able to help its customers and retain an OFW still meets the needs of emerging markets. n
to deliver services over broadband and be as a loyal customer even when she was in
paid using mobile money. Telcos will need to Singapore. This story is constantly replayed in
play a role in this payment sphere or they will countries like Pakistan, Bangladesh, Malaysia,
become the next generation’s ISP. Thailand, Madagascar, Vietnam, Kenya,
Sudan, Ghana, Tanzania, Mexico, Brazil and
3
The New Business Road Test by Professor John Mullins of the London Business School
4
3G marketing By Tomi T. Ahonen, Timo Kasper, Sara Melkko
Today, mobile network Operators (MNOs), increasingly offer high-speed, 3G, wireless
broadband. Devices such as the iPhone, and the services they make possible, are among the
chief drivers of demand for mobile broadband. Although broadband generates significant
revenues, for mobile operators it also creates network capacity and performance challenges
that operators must meet to maintain their quality of service and retain their subscribers.
LTE, a 4G technology, will provide broadband speeds of up to 100MBPS, 20 times faster
than DSL connections.
Karl Triebes is the Chief Technical Officer at F5 Networks; he is responsible for overseeing the company’s technology roadmap and
engineering team. Prior to joining F5, Mr Triebes was CTO and Vice President of Engineering at Foundry Networks in San Jose, where
he was responsible for the strategic direction of corporate product architectures, including the technology roadmap.
Karl Triebes received his B.S. in Electrical Engineering from San Diego State University.
The world’s gone wireless where consumers can now take advantage of to overstate the importance of the iPhone,
high-speed browsing on the move. but it is a visible example of the change
Once considered an expensive luxury, access now underway. Just as dongles running at
to high-speed broadband was limited by Two points are worth highlighting: 3G speed revolutionised laptop access to
reliance on fixed networks. Mobile Network the Internet by removing the need to be
Operators (MNOs), long envious of the • by 2014, two billion of us will have near wireless hotspots, the iPhone made the
lucrative broadband services offered by their access to mobile broadband, a lucrative user experience for hand-held mobile Web
fixed network counterparts, can now get their market valued at £94 billion by Ovum2; and browsing acceptable or even pleasurable.
piece of the pie by taking advantage of high
speed wireless 3G networks. • by 2013, Forrester has predicted that Asia is a key target market for operators to
125 million Europeans will access the Web penetrate. By 2014, China is predicted to
According to the GSMA, investment by through mobile devices3. have just 52.5 million laptop users versus 325
MNOs in this huge potential market will million handset users. With 40 per cent of
absorb the lion’s share of the £549 billion Mobile broadband hotspots mobile users expected to originate from Asia
telecoms operator infrastructure spending over Pacific, global adoption of mobile broadband
the next five years1. This investment reflects Improvements in mobile consumer devices will largely follow handset growth in the
a remarkable shift in data consumption, one drive much of this growth. It seems easy region. The Middle East growth will lead to
1
Kearney A.T., GSMA: ‘European Mobile Observatory 2007, €124 billion via direct and indirect contributions’. G20 Aide-Memoire Introduction, [online]. Available: <www.gsmworld.com/newsletter/newsflash/
G20_Aide_Memoire.pdf>
2
Ovum, Mobile Broadband Users and Revenues Forecast Pack to 2014. Published: March 2009, [online]. Available: <http://www.computerweekly.com/Articles/2009/03/30/235455/two-billion-mobile-broadband-users-
by-2014.htm>
3
Nuthall, P. et al, European Mobile Forecast: 2008 to 2013. Forrester, March 14, 2008, [online], Available: <http://www.forrester.com/Research/Document/Excerpt/0,7211,42199,00.html>
nearly 50 million mobile broadband users by are imperative. This is driving a real desire to their digital lives”. Widgets, applications
20124. Underpinning this surge are operators, use existing resources in a more intelligent and mobile video already access the Internet
such as Etisalat, offering High Speed Packet way. through a burgeoning number of mobile
Access (HSPA+), luring consumers with devices. Consumers now pressure operators
download speeds of up to 28.8MBPS and In order to scale networks intelligently not only for competitive pricing, but also for
upload speeds of up to 18MBPS5. to handle greater volumes, application bulletproof service with zero latency.
traffic flowing through the network must
Front-end fun, back-end headaches be interpreted correctly and routed via the Long-Term Evolution (LTE) provides a
optimal service path, dependant on specific broadband bridge between the mobile and
Whilst worldwide consumer demand for parameters. Application performance is consumer electronics worlds for devices such
mobile data services is creating unparalleled affected by many network and application as digital cameras, smart phones, portable
revenue opportunities for MNOs, by dint of logic-related factors that must be addressed games consoles and notebooks. Aimed at
the consumption shift detailed above, it is also in order to achieve satisfactory application providing consumers with a home broadband
creating network capacity and performance performance levels. At the network level, experience in a mobile environment, LTE
challenges. To continue to provide rich application performance is limited by high is set to transform the world of mobile
content, and maintain high levels of Quality- latency (the effect of physical distance), jitter, broadband with technologies such as HD
of-Service to subscribers, without over-taxing packet loss and congestion. (high definition) available on the move. LTE
network resources, MNOs must examine will provide widespread access by 2012,
alternatives in service delivery infrastructure. Operators have historically perceived offering broadband speeds of up to 100MBPS,
application traffic optimisation as five times faster than the current mobile
Mobile broadband presents a number of complicated and expensive, requiring multi- broadband services, and 20 times faster than
infrastructure-related challenges driven tiered deployments of application delivery DSL connections. Juniper Research estimates
by consumer demand for large amounts of controllers (ADCs). However, developments that LTE mobile broadband-based revenue
wireless data through a multitude of mobile in the ability to both consolidate the will be £48 billion by 2014, with Europe and
devices. MNO requirements centre on infrastructure and add real Layer 7 the Far East set for initial rollout7.
seamless delivery, scalability, availability, (applications layer) intelligence allow Tier
C
and performance for complex applications 1 operators to have more control over the Achieving ROI intelligently M
in very large-scale networks, with traffic traffic on their networks. This has driven a Y
flowing through multiple data centres. Under- growing recognition that networks can run The commonality between environmental
performing networks quickly expose latency more efficiently through closer management changes and technology advances is the need
CM
and downtime issues, both of which severely of applications and application traffic. for MNOs to transform them into profitable MY
reduce service levels and directly affect services. Better content delivery services,
ARPU. One successful route that MNOs have taken including tools that address fair-use policy,
CY
uses ‘context-awareness’ in their networks. have this fundamental need underpinning CMY
Tapping into more cost-efficient technologies Advantages of this approach include them. Operators seek infrastructure K
to serve, optimise and consolidate recognising device type (mobile, laptop etc.), augmentation using application delivery
applications on the network is one way to identifying the pay plan users are on and controllers for exactly the same reason.
meet this growing demand, overcoming therefore the content they should be served, as
infrastructure challenges by adopting a more well as how much of the ‘pipe’ (transmission Tele2 and Telenor’s recent announcement
intelligent view of data, both on the network capacity) they can use. These factors allow to jointly build and own a 4G LTE network
and in terms of the devices that connect to it. operators to attribute a much more meaningful heralds more partnerships evolving globally
In order to keep up with the demands of 3G value to each end user, and identify which in the near future. LTE will lure many
and the performance offerings of future 4G users they want or need to keep. companies to move towards an IP Multimedia
networks, performance and scalability must System (IMS) infrastructure and, as well, will
sit at the core of the MNOs’ service delivery Where is it all going? add functional support for new features such
business models. as Message Based Load-Balancing. Latency
Innovations in mobile broadband opened and long haul costs will drive investment in
Better use of legacy infrastructure doors for other technologies to emerge and technology to reduce latency and transmit
revolutionise the way users connect to the fewer bytes. As we move forward into this
One aspect of addressing this problem Internet. Some expect the growth of IPTV, content-driven era, the technology decisions
includes examining bandwidth control social networking sites and Web applications MNOs make will be characterised by their
solutions. Many MNOs have legacy for Internet access to be the catalyst for the need to build agility into their infrastructures.
infrastructures, built typically using Cisco and death of television in Europe. According to n
Nortel equipment that is nearing the end of its Microsoft’s report, Europe logs on: Internet
life. This makes available bandwidth a critical trends of today & tomorrow6, consumers
issue. On one hand, mobile operators realise will increasingly use mobile devices as
network traffic is growing rapidly, and at the a “natural port of call for Web browsing,
same time cost reduction and cost efficiencies social networking, and other dimensions of
4
Informa Telecoms & Media forecast, [online], Available: < http://www.tradearabia.com/NEWS/newsdetails.asp?Sn=IT&artid=157316>
5
‘Etisalat records download rates of over 20 Mbps in UAE mobile broadband trial source: press release, [online]. Available: <’http://www.arabianbusiness.com/press_releases/detail/38174>
6
Microsoft, ‘Europe logs on: Internet trends of today and tomorrow’. April 2009, [online] Available: <download.microsoft.com/documents/uk/finland/press/europe_logs_on.pdf>
7
LTE Mobile Broadband Report, March 2009: http://www.juniperresearch.com/shop/viewpressrelease.php?pr=134
CM
MY
CY
MY
Planning, evolving and building out modern networks is a complex undertaking. At most
communications service providers, the job is made even more difficult by the lack of integrated
databases that can consolidate and present an integrated view of all the information needed to
control the plan-to-provision process. Typically, the information about the activities that go
into preparing a network for a new service are contained in separate, originally paper-based
systems making it difficult for both management and operational teams to work efficiently.
Francis Haysom is the Chief Solution Architect of Telcordia’s Strategy Organisation; he is responsible for defining the company’s strategic
solutions and market direction. Dr Haysom has over 20 years’ experience in telecoms BSS and OSS software. Prior to Telcordia, he was
Vice President of OSS Architecture at Cramer Systems. Dr Haysom was one of the original employees of Cramer and was responsible for
the creation and development of its professional services organisation and its strategic deployment architecture.
Francis Haysom received his PhD from the University of Bath and a B.Sc. in Engineering Science from the University of Exeter.
We have all heard the old cliché: plan your content policy. A plan-to-provision lifecycle like the ‘order-to-cash’ process, which is
work, work your plan. A corollary to this starts with market-driven planning and ends measurable, brings revenue into a company,
cliché could be - the more complex the work, with the commissioning of a live network that and is easy for senior management to
the more a plan for it is required. Both axioms allows for the rapid introduction of services understand. However, financial security rests
hold especially true for communication that drive ARPU, reduce churn and increase on capital programs, and CSPs neglect the
service providers (CSPs) that are formulating profitability. plan-to-provision process at their own peril.
evolution plans and instituting best practices
for their networks, addressing the core out to Plan-to-provision is all about efficient capital The reliability and efficiency of a network
the edge. utilization, maximizing the returns on the build informs - for better or worse - everything
investments that CSPs make to offer revenue- from marketing and sales to provisioning,
Because of the complexities involved in producing services. ‘Maximizing’ investments repair, procurement, construction, finance,
evolving a network and its long-term, means executing them with extraordinary and the customer experience.
cumulative impacts on the bottom line, CSPs efficiency, so they are chosen accurately,
are compelled to consider a plan-to-provision installed right the first time, and made Therefore, a lack of investment in, or attention
approach that addresses all the activities profitable quickly. to, the way that plan-to-provision is executed
that go into preparing a network for a new leaves CSPs seriously out of balance. Other
service - planning, purchasing, deploying, Somewhat surprisingly, plan-to-provision processes may be regularly upgraded to
and turning up physical and logical assets, tends to rank lower down a CSP’s list of become more automated and include best-
including network equipment, servers, and priorities when compared to something practice operations, but too often, they end up
Sound familiar?
Challenge: This step includes labour-intensive 1. Automate the planning and design of a fibre This traditional methodology is rife with
designs on paper that lack consistency. Also, it distribution network. opportunities for error, out-of-synch
requires manual reworking if not built to plan. conditions, and labour-intensive, tedious,
Geo-spatial market planning can intelligently ongoing correction work. All of this leads to
• Perform drafting work in tactical CAD prioritize where to build out FTTx based provisioning errors, service delays, stranding
system. on demographic information that identifies of capital assets, and unnecessary expense.
revenue ‘hot spots’ - for example, properties
Despite the great advances in telecommunications technology, technical problems users are
often dissatisfied with the quality of service (QoS) received and the quality of experience
(QoE) perceived. Businesses use video conferencing to eliminate travel, but picture quality
is often so bad they must revert to a voice-only call. Most carriers use management tools that
tell if the signal arrived - the QoS. Few as of yet can monitor the quality of the signal, the
QoE, for each and every call.
Joe Frost is Psytechnics’ Vice President of Marketing; he has nearly 30 years’ experience in the IT and networking industry. Mr Frost has
spent his entire career working in IT, starting as an engineer and networking consultant at Digital Equipment, then moving into product
management and marketing roles at 3Com, Cisco Systems, Inktomi and JacobsRimell.
The rise of IP telephony and IP video are keen to take advantage of the heightened bandwidth, and traditional network (QoS)
conferencing has transformed the way that convenience these tools can offer, they can measurements and cannot provide the
many of us do business, allowing us to make still experience quality problems with voice information the support team requires to cope
voice and video calls to the other side of the or video calls on IP networks. with the users’ needs. Vendors and Managed
world at very low cost. But how often have Service Providers (MSPs) must provide
you phoned a company or colleague only to When it comes to IP voice calls, business the capability to monitor and manage both
find that you cannot properly hear the person users typically complain about call distortion, network and application performance to make
on the other end of the line? How many times echo, and noise. With IP video calls it is their integrated communications systems meet
have you tried to have a video conference picture blocking, distortion or loss of lip- acceptable performance standards.
only to find that the picture quality is so poor sync that cause complaints, despite the
or the synchronisation between voice and care taken, pre- and post- deployment, to We are not saying that QoS shouldn’t be
video so bad that you have to revert to an test the network’s ability to carry real-time implemented and measured, but QoS measures
audio only call? communications traffic. The majority of IP only do what they say on the tin - control the
telephony and network management software way network traffic is carried and prioritized,
Big players across the globe and in the vendors offer Quality of Service (QoS) based enabling applications to work as effectively as
Middle East such as Microsoft, Cisco management and monitoring, but in reality possible when competing for network resources.
and IBM are now offering increasingly the QoS based tools just don’t cut it. For QoS may give the green light in terms of
popular Unified Communications (UC) real-time visibility of what the users actually carrying and prioritizing different streams of
packages for the enterprise. Frost & Sullivan experience, a new approach is needed. network traffic; unfortunately, this alone is
predicts the EMEA Unified Messaging and not enough to guarantee users’ experience or
Communication Market to be worth €539.5m Traditional operating procedures and tools service levels for real-time communications
in 2012. Nevertheless, while business users focus inwardly on the network, devices, applications such as voice and video.
To put this in perspective, think about buying QoE is significantly different and introduced (such as echo) that may contribute
a new car; let’s compare this to the IP QoS complementary to QoS. QoE is a purely to a poor call experience. These QoE
mechanism. You place your order for the car subjective measure, based on the user’s measurement techniques are now defined by
and agree to collect it at a certain time. The perspective of the overall value or quality of the International Telecommunications Union
car manufacturer manages the production line the service used. It is influenced by the type (ITU) and recognised throughout the industry.
and your car arrives at the dealer as agreed. of device the user is using, and is typically
However, you wouldn’t be very happy if represented by a different set of MOS scores So, user QoE monitoring provides more
your new car arrived looking exactly as that accurately reflect the user experience granular visibility for each and every call:
expected but - when you got in it - there was based on the service level achieved. QoE monitoring looks at the quality of the
no steering wheel, and the gearbox was from payload or voice signals being carried by the
a different model. Whereas QoE relies on the network’s QoS IP network to detect and report any factors
capabilities, it additionally adds a significantly that are known to impact users’ perception
Applying this analogy to an IP network, increased degree of visibility. QoE monitoring of quality. This additional level of visibility
QoS-based management tools can make sure does look at QoS characteristics, but on a allows operations and support teams to work
all voice and video data being carried across more granular, per stream basis. For QoE, much more effectively and fix problems
the network arrives at its designated end every phone call is monitored in both correctly the first time.
point (suitably prioritised because voice and directions simultaneously; in contrast,
video are real-time applications) and then network-based QoS typically looks at flows The widespread use of IP telephony, IP
turn the ‘green light’ on. What QoS cannot by traffic type and reports all voice traffic as video conferencing and eventually UC gives
do, however, is ensure that the actual voice one flow, which does not help one judge the businesses advanced communications features
conversation, or the video signal carried QoE for specific calls. that, with application integration, increase
within the data stream, was intelligible and productivity and reduce capital and call costs.
undamaged, meaning that it cannot give If we apply our car analogy again, QoS Unacceptable call quality, however, can mean
any real indication of whether the end user ensures that the car ordered is delivered to the the loss of business, and result in a substantial
experience was acceptable. right place at the right time; QoE, on the other loss of customer confidence and brand
hand, ensures that the customer gets what they reliability for the company as a whole.
Existing network and VoIP management ordered with the right fittings and accessories,
tools do their job of managing network all working, clean and shiny. The importance of call quality and user
performance and availability, typically confidence cannot be underestimated.
reporting an ‘IP MOS’ (mean opinion score) QoE monitoring, to be accurate, should also Customer-service focused companies can
as their indicator of voice performance. take into account any capabilities that the win and lose customers, revenue and staff
However, these measures bear no relation end device may have to mask network based through frustration with call quality. By
to the users’ actual call experience, leaving problems from the user, or not, as the case taking a purely ‘network-centric’ view of
operations and support without a way to ‘see’ may be for lower cost terminal equipment in a UC deployment and ongoing operations,
and diagnose call quality problems. some cases. For example, if jitter is detected using existing or traditional network and IP
on a particular call, this may have an impact telephony management tools that focus on
The ability to measure the user experience on the quality of the voice in the call. But if IP QoS and network and device availability,
termed ‘Quality of Experience’ (QoE) - as the end device (handset, soft client, or video there is no ability to focus on the user or
well as network-related QoS is fundamental to conferencing station) has been characterised the customer experience, and support and
a consistent and acceptable IP telephony and as having advanced jitter handling built into operational costs go unchecked.
video conferencing user experience; it also it, then there is no need to raise an alarm
enables efficient and profitable operations and because this instance of jitter has not impacted As UC, IP telephony and IP video
support. It is the combination of QoS and QoE on the user. conferencing roll out across organisations on
monitoring and reporting that makes a good a larger scale, it is the proactive monitoring
IP voice and video applications performance Using our car analogy again, if the car dealer of the system at both the network and the
management strategy. knows that one of his new car customers is application level, that is, the user’s perception
tolerant of a delivery delay he can push that of quality that becomes the key factor in
If we look at the difference between QoS and car to the back of the pre-delivery workshop controlling operating costs, and maintaining a
QoE we can see why they are both needed and concentrate on those customers that he/ consistent and acceptable user experience. n
and where they are significantly different. she knows will be impatient and get their car
QoS enables you to provide better service prepped first. Using this process he/she keeps
for specific traffic by changing the relative all his customers happy even though there
priorities of the traffic on a real-time basis. was a slight delivery delay.
QoS based congestion-management tools
raise the priority of more ‘important’ flows Lastly, QoE based monitoring also looks at
using queuing mechanisms, and servicing how the signal - the voice analogue signal
these queues with different priorities and carried inside the IP packets - carried by
traffic management mechanisms. Traffic the network is performing. This provides
policing and shaping effectively prioritise a the ability to detect in real time whether the
flow by limiting the throughput of other flows, voice conversation has been impacted by
reducing the impact of jitter, packet loss and background noise, or has become distorted,
latency on the prioritised flow. or indeed whether there are other artefacts
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