The band gets broader

Mention 'broadband' and we usually think 'speed'. And in mobile there's no doubt that data connection speeds (and the demand to push them ever-higher) is still a big driver for continued investment in the network - through 3G, enhanced or evolved HSPA, and now this year the initial roll-outs of LTE.

But the mobile band is also getting broader in another important respect: variety. We're going to see more wireless terminal types and more business models to go with them.

The fact is that this year it will become even more apparent that 'wireless communications' is moving rapidly past the mobile phone.

This latest phase arguably started with the new-generation touch-sensitive smartphones from Apple, RIM and Google. Yes, we had smartphones before those, but they were phones with computer-style applications buried inside them. The aforementioned are mobile, cloud-centred, palm-top computers with a phone option (and an often not very-well executed phone option at that) buried inside them. That's a big change in emphasis.

Then we had the Kindle book reader with its innovative 'buy the wireless service with the device' business model; we've had the huge success of the dongle and its attached netbook and, latterly, the embedded 3G data module in the laptop and notebook computer. These are all 'beyond the phone' wireless gadgets and they're just range-finders for new device categories following close behind.

As we point out in our feature article 'M2M - hype or reality', it's been a long time coming, but the machine-to-machine vision will finally start to pan out due to lowering costs, abundant address space (using IP v.6), and greater mobile network data capacity. That will represent a huge business opportunity for mobile operators.

Another big boost in the first few years of this decade looks likely to come from the smartbook/tablet device category. Like M2M it has been smouldering for years but looks likely to catch fire following the recent announcement of Apple's iPad. Where Apple goes expensively of course, others will follow cost-effectively and the market will almost certainly keep taking the tablets.

In this issue we also talk to the TM Forum's billing guru, Tony Poulos, about the dissolution of the old BSS and OSS divisions. And we look ahead to the Mobile World Congress later this month in Barcelona, where we expect to see more firm signs of the broader mobile band now being fostered - new applications, new companies and new devices. All of them requiring, at the very least, a mobile subscription or two.

If you're going to MWC, please come and visit us in Hall 2, Stand 2D65 to find out more about our unique bundled component product suite. Then, after a long day at the conference and exhibition, why not relax with some traditional food and drinks at our very own Tapas bar? It's in the heart of Barcelona, close to the Ramblas. You can pick up your ticket at our booth. See you there!

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M2M – Hype or Reality?

Recent high profile announcements from both Vodafone and Telefonica have catapulted Machine-to-Machine (M2M) applications and services back up the hype list again for 2010. As operators around the world continue to explore ways of countering declining voice revenues, the potential of M2M is huge.

According to industry analysts, Berg Insight, wireless M2M connections accounted for 1.4% of mobile connections worldwide at the end of 2009, with this number forecast to grow to 3.1% by 2014. This in itself will represent 187.1m wireless M2M connections. In fact the GSM Association sees the number of M2M connections leapfrogging the number of mobile handsets and is targeting 50 billion connected devices by 2025.

Vodafone has been building its M2M credentials for a while, with announcements of M2M activities last year from its global enterprise division and the creation in December of an M2M team focused purely on the healthcare sector. Meanwhile, Telefonica are hot on their heels after also announcing in December a brand new M2M business unit.

Data bearers

Ten years ago I stood in the exhibition hall at the GSM World Congress (in the days before '3GSM' and 'MWC') and was able to send an SMS to a vending machine to obtain a can of Coke. The vending machine was equipped with an embedded 'phone' and SIM card which enabled the service to operate on a standard GSM network, with a piece of software interpreting the text message and vending the appropriate drink. This was one of the early realisations of a consumer-to-machine application and a very appropriate attraction in the stuffy exhibition hall in Cannes.

Since then, there has been a steady growth of connected 'machines' with many different types of application already in operation. Like the Coke machine example, many of these devices rely on SMS as the natural bearer. One of the most recent M2M innovations is the smart 'trash can' system used in Somerville, Massachusetts, in which the public litter bins send text messages to the local authorities when they are full and require emptying. Click here for the full story.

But SMS is not the only option. For example, the popular TomTom satellite navigation system uses a GPRS connection to deliver live traffic data to the user and to collect traffic speed and direction information from each device. Though the TomTom traffic services originally required a separate mobile phone to be connected, the latest incarnation includes an embedded SIM card / 'phone' making for a much more straightforward 'user experience' – plug-in the sat nav system, turn it on, it works.

Embedded mobile modules

There is now a big push for mobile modules to be embedded inside laptops and other electronic equipment, with the GSM Association running their own Embedded Mobile initiative to promote wireless connectivity across industry verticals including the healthcare, transportation and utility sectors.

The rollout of LTE and move to IPv6 will undoubtedly accelerate the M2M market growth and present many new service and revenue opportunities as mobile modules become de facto included in a broad array of consumer electronics and household equipment.

IPv6 addressing will also make M2M services not just a mobile proposition, but applications that can work seamlessly across both mobile and wired broadband connections.

Business model

As with all value-added applications and services, the key question for all operators is what business model to pursue with M2M services? Who provides the order fulfilment and customer services? Will the service be operator-branded, partner-branded or co-branded? Who bills the end-customer? Is the service offered on a usage-based or bundled pricing model? Who pays for the bandwidth? And so on.

Looking at the example of TomTom, the current LIVE service is sold to consumers directly by TomTom with no dependence on the user having a subscription to the correct mobile network for it to work. TomTom has negotiated this directly with Vodafone in several countries in Europe, and Vodafone remains very much a behind-the-scenes partner.

A key determining factor will be the nature of the application and the level of performance and resilience that will be expected or required of the M2M service. For example, healthcare or automotive safety applications are likely to require a much higher level of service than a luxury appliance such as a 'smart refrigerator' that automatically re-orders provisions that are running low.

In fact all combinations of business model are possible, resulting in a very fragmented market with network operators, solutions providers and specialist equipment providers all making their own plays for different types of M2M services. Of course the network operator will always be required to provide some level of connectivity for the service to work.

M2M platforms

The widespread use of SMS as the bearer for many content services and applications means that deploying M2M services using SMS should be relatively straightforward. However, more advanced services that take advantage of the 'always-on' connectivity and increased bandwidth of 3G and LTE networks are going to require a more sophisticated infrastructure. The big opportunity for operators is to provide dedicated M2M platforms and expertise to help their industry-specialist partners implement the required services.

Key to these M2M platforms will be open and automated provisioning and fulfilment; flexible charging mechanisms for event-based and bundled pricing; support for pay as you go and cyclical billing policies; the ability to mix wholesale and retail pricing and settlement models; and sophisticated business intelligence and analytic capabilities.

It's probably a touch premature to be talking about the rise of the machines, but the M2M sector is progressing very nicely and those operators who invest in preparing appropriate M2M platforms now will be the ones who can reap the rewards of connecting this new wave of devices in the future.

Dominic Smith
Dominic.Smith@cerillion.com

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Interview with the TM Forum's Tony Poulos

In this issue of Evolve, Dominic Smith talks to Tony Poulos, Head of Revenue Management Sector at the TM Forum, about the key industry trends for 2010 and breaking down the historical barriers between BSS and OSS.

Tony Poulos, Head of Revenue Management Sector, TM Forum Tony has been involved with software development and systems integration in telecommunications for over 20 years. He developed a convergent billing system in the early 90s in Australia and from there he worked in a business development role with Unisys in Europe. He was co-founder of Copernicus Global Billing Services, a London based, web-enabled, managed service provider for outsourced billing and payments collection. He is a regular speaker and chairman at telco conferences in Europe and Asia-Pacific, has been a Contributing Analyst for IDC, writes for a number of industry publications worldwide and is Anchor for The Telecom Channel in addition to his work with the TM Forum.

DS: Hi Tony, and welcome to Evolve. Tell me about your role as Head of Revenue Management Sector in the TM Forum. What does this involve?

TP: My role was initially to complete the integration of the GBA Billing Map with the TM Forum's eTOM (now known as the Business Process Framework), update eTOM with the new charging & billing requirements of Next Generation Networks and to then synchronise this work with the other Frameworks (TAM & SID). We now have three very strong teams working under the Revenue Management Initiative in Revenue Management (RM), Revenue Assurance (RA) and Business Intelligence.

DS: Historically the TM Forum was more renowned for its work in the OSS arena than BSS. How have things changed since the Global Billing Association was integrated into the organisation?

TP: Sadly, this perception appears to be widespread despite the fact that Billing was a key element in all the existing TM Forum frameworks under NGOSS. I picked up from the excellent work that Alex Leslie had done and now 'evangelise' the incredible depth of BSS information and processes that the TM Forum has available. I dread using terms BSS and OSS these days but judging from the number of so-called BSS companies that are now members of the TM Forum, I would say we have been reasonably successful in our efforts.

One great advantage we now have is the use of the TM Forum's Online Communities structure which allows interested parties to be kept updated with news and views around RM and to also contribute where and when they like, rather than having to be on conference calls, etc. The RM Community now has almost 600 registered users.

One of the most valuable tools from the GBA was its Billing Benchmark which has now been considerably enhanced and supplemented with RA benchmarking and KPIs.

DS: What are the major trends that are coming out of the current activities? Are there common issues coming up again and again or are you seeing regional variations or differences based on the network technology?

TP: There are two main areas that keep coming up and appear to be common around the globe. The first is transformation to all IP Next Generation Networks, and the implications this is having on billing processes.

The second is the growing trend towards online or real-time charging. It's not only because the majority of mobile users around the world are pre-paid that is driving this, there is a growing demand from subscribers to know in real-time what a service, application or content is costing them. Also, the European regulations on roaming charge ceilings means that all calls need to be handled in real-time.

As we move to advertiser-pays models, profiling of customers and more third party content being offered by operators will make real-time charging essential and provide the operators with current exposure to debtors and creditors at all times. These are also the drivers for converging pre- and post-paid billing activities. Of course, having all IP networks makes the use and integration of service delivery platforms, application servers and profiling systems more feasible.

DS: What initiatives are being undertaken within the TM Forum to tackle these issues?

TP: In addition to the online community activities, and framework updates already mentioned, the TM Forum encourages active blogging by key staff, produces regular white papers, and provides in-depth articles in its own publications and other leading industry magazines.

It also holds a number of regional Management World events, culminating in the main event in Nice each May and Team Action Weeks in Europe and the USA every six months to hear first hand from members what issues are affecting them and to get feedback on what is being done in different markets to address these issues. As a member-led organisation, it is the members that drive the issues in most cases.

DS: You are in the enviable position of having experts from both operator and vendor communities working together to tackle the BSS / OSS challenges of the future. Is there a common view on how things should be done or is there a gap between what the operators need and what the vendors are providing?

TP: I'm not sure that this is always an enviable position! It does, however, make for some very interesting cross-pollination. The telecoms industry was very much driven by operators and service providers with massive IT departments up until about 15 years back, but these days the technology is, in the most part, being driven by the vendors. There are two amazing transformations that have taken place, in my mind, that have prepared us for almost any upcoming challenges.

The first is that operators and vendors are more and more seeing each other as partners being inter-dependant for sharing of skills and tasks. This began with the move to outsourcing but has evolved into some very effective ecosystems. The second is that the old BSS/OSS divisions are breaking down as NGNs come into play. The boundaries are well and truly blurred into the new horizontal models and I, for one, will be very happy to not hear of BSS and OSS separately again.

DS: And finally, for any of our readers who are not currently participating in the TM Forum's work, how can they get involved?

TP: It's dead easy, simply go to http://www.tmforum.org/RevenueManagement for an overview of all our activities and subscribe to the Inside Revenue Management Newsletter, even if you are not a member. To see the Online Community in action go to http://www.tmforum.org/Community/groups/revenue_management_group/default.aspx where everybody has access to the discussions and blogs, but only members can contribute. I am also available for any assistance and open to any advice, comments or recommendations that your readers may have.

Tony can be contacted at: tpoulos@tmforum.org

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Meet Cerillion at the Mobile World Congress 2010

Cerillion will once again be taking part at the Mobile World Congress in Barcelona, 15th – 18th February. Visit us in Hall 2, Stand 2D65 to find out how our unique bundled component product suite can help your business to flourish. The Cerillion team will be present throughout the week, including our CEO, Louis Hall, providing an ideal opportunity for meetings and product demonstrations.

Book an Appointment

On our stand we'll be exhibiting the latest generation of our innovative pre-integrated BSS/OSS solutions, including Revenue Manager, CRM Plus, Service Manager, Mediator Plus and Interconnect Manager. Feel free to pop by our booth at your convenience or click here to pre-book an appointment for an in-depth demonstration.

The Cerillion Tapas Bar

After a long day at the conference and exhibition, what better way to relax than with some traditional food and drinks at our renowned Tapas bar? Situated in the heart of Barcelona, close to the famous Ramblas and near to the Picasso Museum, Txirimiri is the ideal spot to chill out in the evening. Why not join the Cerillion team for sangria and Tapas on Tuesday 16th and Wednesday 17th February, 19:00 until late. Don't forget to pick up your ticket at our booth in Hall 2, Stand 2D65!

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