1. Ecosystem for Telecom and IT Business in the Broadband World The Lesson for Broadband NGN Migration 邱武志, Victor Chiu Vice President, Telecom Labs Chunghwa Telecom (CHT) E-mail: wjchiu@cht.com.twwjchiu@cht.com.tw

2. 2 Current Issues in Broadband Era  Bandwidth has been in place for years Fixed: ADSL, Cable Modem, and FTTB/FTTH Mobile: GPRS, CDMA, 3G and WiFi  ARPUs of fixed and Mobile are dropping rapidly  Broadband investment is sort of a business without real payoff  How to leverage on partnerships for 3G and NGN adoption  Regulator is not in place yet for broadband world  Skype is free and not a hype!  Value Added Services (VAS) are yet very shallow - Fixed and Mobile revenues < 5% (e.g. Taiwan)  No strong VAS revenue growth, the telecom business will become a business of no future soon Rev: CK Mao: VAS – Challenges and Visions

3. 3 Killer Applications Should be in “CITE”  VAS should be with C-I-T-E and in personal portal VAS = C-I-T-E Communications (one way and both way, real and non-real time)  Voice, IMS, SMS, e-mail, conferencing, surveillance,.. Information  Web search, news, download, e-learning, … Transaction  E-commerce (B2B, B2C, C2C,..), banking, ordering,.. Entertainment  Gaming, video, music, sports, …  Color ring back tone is a VAS, but will be considered as an oasis in a desert Rev: CK Mao: VAS – Challenges and Visions

4. 4 Cyberspace of VAS  Redefinition of Cyberspace Home Space, Work Space, Leisure Space Telecom and IT - ICT Three overlapping sub-spaces should be based on mobile for seamless  An ecosystem including content owners, solution providers, aggregators, carriers and users should be formed in this cyberspace Home Space Work Space Leisure Space Mobile Space Cyber Space

5. 5 IMS and FMC come for VAS!  Carrier should help itself Create platform for Amazon Rain Forests rather than Oases in Desert Open the platform for all VAS Promise the marketing Ecosystem is in good health  content owners, solution providers, aggregators and the carriers Rethink: the winner takes it all (or share with all)  IMS (IP Multimedia Subsystem) is for VAS  IMS-based FMC (Fixed Mobile Convergence) should be an infrastructure for the healthy ecosystem Rev: CK Mao: VAS – Challenges and Visions

6. 6 IMS Comes to the rescue for Providers IMS is from End User’s View Point The explosion of IMS applications increases revenue APPLICATIONS AWARE Converged effect increases application value Identity management allows new levels of personalization CONTROL DEVICE AWARE APPLICATIONSACCESS END-USER AWARE

7. 7 Mobile WiMAX Vision >Bandwidth intensive applications and services >Naturedly born for VAS >Highest bits at the lowest cost >Spectrally efficient >Smallest number of cell sites Mobile WiMAX Delivers Multi-megabit Internet Everywhere WiMAX is also coming for VAS

8. 8 Pirarucu, Arapaima gigas are the largest, exclusively fresh water fish in the world. They have been found to reach a length of 15 ft/4m and can weigh up to 440lbs/200kg. Freshwater fish in the waters of the Amazon River. River in Amazon Forest

9. 9 An Oasis in Desert 月牙泉，敦煌，中国

10. 10 Sahara

11. 11 Sahara Brand Dubai – a new modem Amazon a no Tax World Trade, Internet, Media, DoBuy, 85% foreigners and Academic City

12. Part II 1. VAS and the Mesh Ecosystem 2. Ex: A VAS handset of mobile banking ATM? 3. Successful factors for FMC 4. Regulator decides who win(s)

13. 13 User Terminal VAS and the Mesh Ecosystem  Traditional telecom service value chain Carrier-CPE-User  VAS/IMS era demands a brand new Mesh Ecosystem User-based Cyberspace: (Home + Work + Leisure ) + Mobile Personal Portal Content Provision Service Provision IMS-based Infrastructure (Fixed Mobile Convergence) VAS (C-I-T-E) IMS

14. 14 Ex: A VAS handset for mobile banking ATM?  Who are the customers you are going to target at? ( SP perspective) How to find your customers who go e-banking frequently? Which banks are you going to partner with? Find specific handset vendors and bundle the handsets with your system (including banks)  Which mobile carrier are you going to subscribe? ( customer’s view) A big challenge for an ordinary customers Which model of the handset? Which bank? Then Which carrier?  A worldwide problem A specific handset, a specific bank, a specific carrier, platform, … User size is too small (subset of the subset of..), both bank and carrier just hesitate to do  No healthy ecosystem exists at all now!  Banks and Mobile operators should be good friends Rev: CK Mao: VAS – Challenges and Visions

15. 15 Regulator decides who win(s) ( 螳螂捕蟬 黄雀在後 獵人全看在眼裡 )

16. 16 Successful factors for FMC  Technology – standard  Business Model - ecosystem  New skill for players - training - Sales, engineering, operations, administration,..  NGOSS for FMC – operations standard  Ecosystem  And more ….. that we don’t know yet

17. Thank you and questions?