1. Open Standards and Innovation -a Pilgrims View to a New Nation Siva Ramamoorthy ITU-T Regional Consultation on Conformance Assessment/Interoperability (Sydney, Australia, 16-17 September 2010) Sydney,16-17 September 2010

2. Innovation across the Pyramid Sydney, 16-17 September 2010 2 India Dry Cleaners at $1 Kerala Fisherman

3. Nadi, Fiji, September 2009 3 Summary – Trickle Up Innovation "The dominant logic holds that innovation comes from the U.S., goes to Europe and Japan, then gravitates to poor countries" says C.K. Prahalad, a strategy professor at the University of Michigan's Ross School of Business and author of The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits. "But now we're starting to see a reversal of that flow." CK Prahalad (1941- April 2010)

4. Sydney,16-17 September 2010 4 Agenda- Key Hypothesis Standards Help Innovation Innovation creates enormous Opportunities for Nations- especially emerging Nations Case Study Call to Action

5. 5 Global Telecom Industry - Observations Huge Growth in Internet and pressure on Backhaul Significant price pressure Networks are standards-based- very similar requirements globally Use of global telecom standards is breaking country/carrier/vendor equation Emerging markets are driving growth Low tele-density, large unserved population, large geographies Needs Latest technology, high quality and lowest prices

6. The Telecom Decade Sydney, 16-17 September 2010 6 19952000200120052010 ARPU CAPEX No of Subs Death of Telecom % of OPEN BUILDING BLOCKS in ICT

7. The Telecom Industry Over the Years 7 Earlier: Completely End to End Proprietary Physical design of equipment Racks, Chassis, Boards OS Middleware

8. The Telecom Industry over the years 8 Open Source and Linux Consortiums: -PICMG - Linux Foundation & Carrier Grade Linux - SCOPE Alliance - Service Availability (SA) Forum Interop Forums: ITU, MEF ITU Work on Conformity and Interop WTSA Res 76, ITU Pilot Conformity Database, Test Labs Global System for Conformity Assessment (ISO/CASCO) Boards and Chassis FPGA Middle Ware (such as SA Forum Specs) Application/ Services Software The Post 2000 Telecom Product resembles a Eco System

9. Innovation is multipronged Sydney, 16-17 September 2010 9

10. The Innovation Curve 10

11. Innovation Barriers to Entry 11

12. 12 Global Telecom Industry - Observations Emerging Economies leap frog technology Operators are outsourcing their networks increasingly Move towards Converged Networks Greater Focus on Government to Citizen services

13. Sydney, 16-17 September 2010 13 Large opportunity for Innovation Using Standards Big Local Market Product/IP Talent Standards Early Role models IP Supportive Supply Chain

14. 14 Innovation Using Standards Re usable HW Building Blocks Open Source Democratization of Knowledge Standards Eco System of Innovation Large Opportunity to Innovate

15. 15 Why is it Important for emerging economies Leapfrog technology Lost Capex Low Opex Best of breed technology Enabling local employment Technology Index Moves up Larger Range of Providers Interop’ing with each other

16. India Innovation Business Innovation Managed Services – Ex. Bharti Point to Point Mobile Services cheaper than a Postage Stamp Convert Fixed costs into Variable costs $0.01 per minute Revenue growth of 120 percent Y-o-Y, Net profits 282 % (Reverse Innovation) Sydney, 16-17 September 2010 16

17. Sydney, 16-17 September 2010 Case in Point Applying Standards and Innovation to NGN Traffic “Carrier Ethernet”

18. Sydney, 16-17 September 2010 Case in Point Applying Standards and Innovation to Customer Intimacy “Value Added Services”

19. Sydney, 16-17 September 2010 19 Summary- Standards and Innovation Large Opportunity for emerging Economies Provides for a way to leap frog technology A large eco system of Providers of solutions and products with Standards Reuse of Known Hardware and Software Technology Building blocks Call to Action

20. Sydney, 16-17 September 2010 20 Thank You SIVA RAMAMOORTHY