1. TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl 27th September 2004

2. 2 Overview What are machine/device based services? Cases Location based Services (MiloWare & Services) Telematics Services Development of business models Operator roles Effective pricing models and billing issues

3. 3 What are Machine/Device based Services?  Support of the interaction between entities (man/machine) by means of automatic processes  Combination of telecommuncations and computing (telematics) Machine Interaction

4. 4 What are Machine/Device based Services? Services can be found everywhere Home Transport Environment School

5. 5 What are Machine/Device based/ Services ? P-2-P: voice calls, SMS, file-sharing,… P-2-M: browsing, dialing in to corporate environments, ….. M-2-P and M-2-M Alerts, notifications, … Alarms (security, breakdown,..) Resource Managing (stock control, navigation, fleet mgt,….) Metering/Billing (measuring utilities, toll collection, vending machines,..)

6. 6 What are Machine/Device based/ Services ? M-2-P & M-2-M Location Based Services Telematics Services Applications fall into two categories Fixed entities: alarms, metering, … Mobile entities: fleet management, automobile applications Mobile M-2-M is also called Mobile Telematics or Telematics or In-car intelligence

7. 7 What are Machine/Device based/ Services ? M-2-P & M-2-M Two Cases Location Based Services (MiloWare) Mobile Telematics Services Business Models Billing Issues

8. 8 Location Based Services Presence Services Tracking and tracing Finding Services Navigation Services Location Technologies GPS, GSM/UMTS, WiFi, RFID Difference in availability, coverage, accuracy and costs

9. 9 Case MiloWare (TNO Telecom) MiloWare Platform

10. 10 Case MiloWare (TNO Telecom) Functionality Collecting location information of users and equipment Works with rulesets: trigger messages based on locations Making this location information available through web services to Service Providers (standardized, open interfaces) Featuring Respect of Privacy Intelligent Services Any –location- thing

11. 11 Case Mobile Telematics Services Telematics in vehicles Processors (embedded computing) Mobile networks Positioning technology (GPS, …) It started with radio services Traffic information 2-way systems With the global coverage of mobile networks mobile telematics gets a boost Killer app: drivers love talking in their cars (60% of total airtime)

12. 12 Case Mobile Telematics Services Example of Services Safety & Security Emergency Notification and SOS Roadside Assistance Remote Door Unlock Vehicle Tracking Vehicle Diagnostics Hands-Free Voice Driven Services Navigation Driving Directions Route Selection Traffic Reports

13. 13 Case Mobile Telematics Services Examples Convenience Hands-Free Personal Phone Calls Voice-Driven Email Services Voice-Driven Short Messaging (SMS) Automatic assistant helps you: locate gas stations when you need them; Locate destinations and guide you there, … Concierge services for a variety of personal and professional needs: restaurant suggestions and reservations, accommodations, tickets to events, ….

14. 14 Business Models Roles/parties 1.Network operators 2.Service providers 3.Content Providers 4.Large companies 5.Equipment vendors 6.Application Service Providers The needs of these parties are: 1,2,3,4,5,6Differentiate from other competitors through innovative services 1,4,5Enabling services in a fixed, mobile or converged network 1Attract service providers 1,2Attract content providers 4Improve efficiency 1,2,3,6 Generate ARPU 1,2Decrease CHURN 1,2,3,4,6Increase user satisfaction

15. 15 Business Models End users Mobile Operator Aggregator Access Network Service Applications Platform Service Provider Services Mgt Processes Billing of services Wholesale Billing Billing of traffic

16. 16 Billing of services is essential for every party involved Service Provider with service/content Access Operator with traffic Aggregator with commission Win-win Flying wheel

17. 17 Billing issues Revenu Sharing Real time billing Content billing Pay per event Data bundles Service Plans Basic, Medium, Advanced Context Billing

18. 18 Questions ? Professor George Huitema TNO Telecom g.b.huitema@telecom.tno.nl www.telecom.tno.nl