1. Directions of telecommunications operators growth – business aspects Michał Wasilewski JA-Z 25.05.2011

2. Agenda Typical development dilemmas of telecommunications operators Economical aspects of IPv6 deployment Business models in mobile Internet access Directions of telecommunications operators growth 2/14

3. Plan IPv6 Reasons behind IPv6 How to deploy? Impact on the network Business models used by mobile access operators Current situation A lesson from the Airline industry Future oriented models 3/14 Directions of telecommunications operators growth

4. Reasons behind IPv6 deployment 4/14 Pool of network addresses near exhaustion CAPEX and OPEX getting higher Government initiatives Cooperation with others No more new users No more new devices CAPEX – capital expenditures OPEX – operational expenditures Directions of telecommunications operators growth

5. Number of devices connected to the Internet Directions of telecomunication operators growth 5/14 Jan 2011 - 818,374,269

6. Number of sold devices in millions (2009) Directions of telecomunication operators growth 6/14 Source: Gartner, Information Week

7. IPv6 migration process User connectivity Operator services (content provider) Transport network Operations & Maintenance Gradual termination of IPv4 7/15 Simultaneous deployment Tunneling Directions of telecommunications operators growth

8. IPv6 migration process 8/15 User connectivity Transport network Content provider O&M Directions of telecommunications operators growth

9. How will the network be affected? Applications – those which do not implement third layer functions not affected (only a matter of working with new addresses) User devices – highly affected, need to be updated (new as well as old methods of acquiring addresses) User connectivity – depends on the service, not affected bellow second layer Content providers – big impact Operator based services – big impact Transport networks – no difference Firewalls, routers, switches – update of software and hardware O&M – update 9/15 Directions of telecommunications operators growth

10. Current situation on the mobile access market Mobile Internet access devices reach mass user Huge traffic growth in mobile networks Classical models outdated 10/15 Directions of telecommunications operators growth

11. Number of sold devices in millions (2009) Directions of telecomunication operators growth 11/15 Source: Gartner, Information Week

12. Models used in the Airline industry Similar service characteristics – perishable service: one-shot opportunity to sell access to bandwidth capacity, how we use available resources become the key factor for business Dynamically changing needs Solutions: Low prices long before the flight Prices go high when the number of available seets goes down Moving resources where they are needed the most 12/15 Directions of telecommunications operators growth

13. Future business models in mobile access Problems: Traffic needs depend on the daytime Inefficient use of available resources – 80% of bandwidth used by 5 % of users (no individual control) Price doesnt depend on available resources at the moment Solutions: Profiles based on daytime, application Individual control platforms 13/15 Directions of telecommunications operators growth

14. Examples In North America and Western Europe countries still old, flat-rate models In Latin America and East Africa new models have been present for some time now Poland: Orange Free (free access during the night – Hotel wygoda) Unlimited access to Facebook in Plus 14/15 Directions of telecommunications operators growth

15. Contact: M.Wasilewski.0@stud.elka.pw.edu.pl http://mion.elka.pw.edu.pl/~mwasilew/ 15/15 Directions of telecommunications operators growth