August 2009 Archives

How to increase network value using 3rd party partnerships

Posted by: Erik Linask | August 31, 2009 8:40 PM | 0 Comments
In today's new age of communications, each piece of the service chain, from equipment manufacturers to application developers to network operators and everyone in between has had to challenge their traditional business models, looking for new ways to drive revenue while cutting both operational and capital expenditures.
 
In the service provider community, we've already talked about the idea of outsourcing network resources and management to reduce the need for network additional infrastructure buildout on one hand, and as a means for increasing ROI on network assets on the other.
 
For those network operators that intend on continuing that model - network ownership - in addition to looking at leasing bandwidth and network capacity to partners, the other critical element will be to identify the right third-party partnerships that will provide the applications, services, and content most desirable to their customers. After all, the end game is about customer service, which means securing the right products that will create brand loyalty.
 
The challenge is not only to find the right mix of third-party providers, but to also find the right model that will provide value to not only the end user, but the network operator and third-party developers and service providers as well. The benefit for the operators is obvious - they can leverage these services to attract and retain subscribers.
 
For these third parties, it's not as simple, because the value proposition for them comes from gaining access to operators' resources, which they have traditionally been reluctant to part with. The new business model however, is changing their position - out of necessity more than desire - and many are looking at ways to build these third-party relationships by providing access to telco resources and assets, such as guaranteed QoS, presence status, BSS/OSS support, hosting of services, customer support, etc.
 
While these trade-offs seem a logical step, little ground has been gained, largely because network operators are reluctant to allow access to their closely guarded goldmine of client-related information. However, in order to make this new collaborative model work, they will need to come around to some middle ground. As network operators look to move forward with these plans, a recent Alcatel-Lucent whitepaper offers a set of 10 guidelines for doing it successfully.
 
 
1.       Establish a set of KPIs that set benchmarks for improving performance in this area. Key benchmarks (set on a timeline) could include number of developers actively using the program, time to develop new services, time to onboard and configure new services, number of services developed per annum, revenue earned from third party programs both in absolute terms and as a proportion of revenues, and RoI on new services deployed.
2.       Take a pragmatic initial approach to working with third parties, aiming to show through simple early-to-market solutions how the new relationship could work and demonstrating that superior value really can be created.
3.       At the same time, be ready to have a variety of business and commercial solutions available over time. Since the universe of third parties is vast and varied, different business models and resources may in time need to be made available and marketed, depending on the type of partner, the value of the relationship and so on.
4.       Understand which third parties are most likely to respond positively to an invitation to work with you, probably through detailed market research. There is no general rule here, as it depends on a range of factors including the network operator's size, competitive position, geographic position, customer set, strategic objectives, services available and so on.
5.       Use software platforms that are suitable or adaptable for use by particular kinds of developers. This may include using the RESTful and Ajax software architectures used by Web developers, as well supporting more heavyweight environments used by mainstream IT developers.
6.       Sell the ability to connect third parties with end users wherever they are--through both partnerships and technology. This means resolving issues on behalf of third parties such as the customer's location, type of access network, device and so on. It also means focusing on enablers that feature automatic configuration and auto-adaptation on the fly, as well as customer support. It may also mean actively supporting suitable standards as they emerge from the community.
7.       Break down internal walls and barriers between the key stakeholders, which will include CIO, CTO, OSS/BSS, network operations, CRM, product management and marketing. This in turn means that programs must be supported and driven at board level.
8.       Deploy policy and QoS tools that are designed from the start to help enrich relationships with third parties, rather than simply as tools to control the behavior of applications or the telco's own services.
9.       Focus on dismantling subscriber data silos and getting consensus on rules for using that data. Subscriber profiling in its widest sense could be the most valuable tool that network providers own, enabling highly personalized subscriber offers to be constructed, but consolidating, harmonizing and securing that data is a long-term task.
Emphasize the ability to identify and authenticate individuals in a secure environment, as well as the ability to bill them. Network providers (especially mobile network providers) are in a strong position to do this, and it is a capability that will be valued by third parties.

Best practices for prioritizing next generation services that customers are willing to pay a premium for

Posted by: Erik Linask | August 31, 2009 2:38 AM | 0 Comments
When it comes to delivering services to subscribers, providers obviously must have an infrastructure in place to be able to physically bring their offerings to their customers - or partnerships that will enable that delivery. But, they must also have an understanding of what services their subscribers are interested in and, importantly, what they are willing to pay for.
 
The new communications market is no longer going to be defined by its networks; rather, successful providers will be able to quickly and efficiently bring new and innovative services and applications to market. Alcatel-Lucent founded the ng Connect program precisely with that objective: to drive innovation through collaboration between a wide range of vendors - vendors that have a vested interest in each others' activities, but that previously have not have a community through which to actively engage one another, including application developers, hardware vendors, service providers, and others.
 
The simple fact is that no single company has the resources or the knowledge to effectively understand which on which services they should focus their efforts for maximum uptake and exposure, let alone develop them for the widest possible audience.
 
First and foremost, the ng Connect program helps facilitate the research required to determine user demand for certain services, including how much they are willing to pay, the potential market adoption, and the impact of network evolution, such as the migration to 4G wireless networks. Without this knowledge, developers are largely heading into projects blindly, without fully understand what they need to develop and for whom, making their projects something of a hit or miss proposition.
 
Once projects have been identified, ng Connect members have access to streamlined proof of concept development capabilities through shared resources within the community, shortening development time and simplifying interoperability work, including access to end-to-end service provider networks for testing, assessment, and validation with access protocols, devices, billing systems, and other critical service delivery elements. The community also provides an avenue for targeted testing among customers, media, and other groups.
 
"The ng Connect system helps us to get in touch with major players in the business, like handset manufacturers and mobile network operators, as well as those who build the actual operating systems," says Michael Schade, CEO, FISH. "That gives us early access so we can design our software to work effectively at an early stage."
 
Of course, no service can be successful without effective marketing, which is provided through the nature of the community itself. A singular, wide-reaching collective voice of the ng Connect community helps drive services to market, quickly increasing exposure to a large target customer base.
 
Any company that plans on being competitive in the next generation market should consider membership in ng Connect, effectively the link between innovation and delivery to market of profitable consumer and business services.
 
"It's about truly transformational and innovative companies that are willing to collaborate and understand how they are going to use broadband technologies in a way that betters the user experience," said Derek Kuhn, Vice President of Emerging Technology and Media at Alcatel-Lucent. 
 
For more on how ng Connect can help you identify the services your customers are looking for, and quickly develop them and bring them to market, read this article from the Next Generation Communications community.
 

How can I minimize the risk of new investments while increasing my network bandwidth, capacity and speed?

Posted by: Erik Linask | August 31, 2009 1:37 AM | 0 Comments
Wise budgeting has always been a hallmark of successful businesses, but the current economic climate has forced the entire business world to scrutinize every investment more cautiously than ever before. In the communications space, it has resulted in the development of new business models that, though driven by extreme situations, may ultimately create more effective operations.
 
For instance, the hosted communications space has gained significant momentum because of its ability to provide valuable next generation communications services without the need for investment in infrastructure.
 
For network operators, a similar trend is on the horizon. 
 
There is no question carrier networks must be upgraded to accommodate growing demand for bandwidth intensive services and content, driven by a host of new devices and multimedia content being developed today. However, the investment required to upgrade networks to what Alcatel-Lucent calls high leverage networks - networks that provide scalability and flexibility to meet growing subscriber demands for contextually aware applications, without sacrificing service quality or reliability - is beyond the capabilities for many, at least to the degree to which they desire to expand their reach.
 
Thus, to achieve scale and deliver new capabilities without taking on undue investment risk, many operators are looking at a new business model that is not unlike the hosted model in the enterprise communications space. Rather than building out their own networks to deliver new services and to reach new subscribers, they are looking to outsource their networking needs to other partners with established IP networks, looking more towards being a pure service provider and less a network operator.
 
What this will create is two distinctly different entities within the service provider space - the network owners/operators and the service/content providers. In fact, the market is already witnessing the evolution to this new model with the growth of the wholesale market, through which network owners are effectively selling space on their networks to other providers.
 
It's a model that works well for both sides. The network owners are able to increase the return on their network investments thanks to increased "rental" traffic, and the "renters" gain access to subscribers in areas in which they don't own network assets without having to invest time and capital in building out their infrastructures.
 
Quite simply, as network operators migrate to all-IP high leverage networks, they will increase their ability to provider new services to subscribers but, at the same time, the general industry move to all-IP eliminates the network as a differentiating factor. Thus, it becomes more effective to explore network sharing or outsourcing models, which will create a substantially different carrier landscape than today's - and one that will drive new carrier relationships out of necessity.
 
To read more on the future of the network operator, read Alcatel-Lucent's white paper, The Coming Carrier Network Infrastructure - A Very Different Landscape.

How to Select Energy Efficient Ethernet Devices

Posted by: Erin Harrison | August 28, 2009 6:43 PM | 0 Comments
Reducing power consumption ranks high on the list of companies' environmental priorities, especially given its attendant benefits of bringing down operating and capital expenses. Rising awareness of the need for sustainability is prompting enterprises to seek out IT suppliers whose offerings are safe, energy and material efficient, designed for recyclability and supported by end-of-life recycling programs.
 

Increased awareness of the need for sustainability is prompting enterprises to seek out IT suppliers whose offerings are safe, energy and material efficient, designed for recyclability and supported by end-of-life recycling programs.

 

One of the major drivers of "Green IT" is sustaining economics, a key consideration of which is the need to reduce energy consumption. Although environmental issues have been strongly highlighted in recent years and many organizations have publicly declared eco-friendly commitments, a large number of businesses have yet to turn their intentions into action.

 

Although environmental issues have been strongly highlighted in recent years and many organizations have publicly declared eco-friendly commitments, a large number of businesses have yet to turn their intentions into action. Today, however, with technology increasingly available to support environmental aims, this has potential to change.

 

There are new technologies available today that can help companies achieve these important environmental and business goals by minimizing heat and power dissipation in Ethernet-based switching and telephony equipment.

 

For example, in conjunction with business consultants Frost & Sullivan, Alcatel-Lucent has developed an energy efficiency calculator to assist in calculating environmental and energy cost savings. Available from Alcatel-Lucent representatives, this calculator illustrates the environmental and financial benefits of lower energy-consuming devices.

 

Corporations seeking to operate more efficiently and flexibly, streamline their costs and reduce their environmental impacts - integrating their networks, people, processes and knowledge within the cohesive whole of the dynamic enterprise - are, as part of that movement, looking for equipment vendors who can promise not only high-performance but also sustainable and energy-efficient products and solutions.

 

For more information on the benefits of energy-efficient Ethernet devices, read Alcatel-Lucent's whitepaper.

 

Identifying Key Areas for Next Generation Advertising Opportunities

Posted by: Erin Harrison | August 28, 2009 5:44 PM | 0 Comments

"We are not living through a technology revolution. We are living through a value revolution that is being driven by the inexorable march of innovation," professes Alcatel-Lucent.

Indeed, social communication has evolved significantly. In the past two decades, technical devices have brought more collaboration, social interaction, personalization, active participation and communication itself than ever before.

The stage of Internet evolution known as Web 2.0 is having an effect not only on societies and communities but also on businesses and established business models. The Web is no longer a passive environment; it is one in which people actively contribute via Internet portals, such as blogs, social networks and virtual lives.


People's communication behaviors are clearly changing by way of collaboration, social interaction, personalization, active participation and communication through technical devices. Considering the global online advertising market is expected to double in size from 2008 to 2012, providers of Web 2.0-based services will need to develop new advertising models based on users' behaviors and willingness to buy.


Further, the broadband market is growing rapidly. The number of subscribers doubled from 2003 to 2007 and is likely to double again between 2008 and 2012, rising to 600 million. Likewise, the growing ability of ISPs and service providers in general to understand their customers in much more detail provides the ability to understand customer habits and behaviors and classify their users into very specific marketing/opportunity segments.


As for where the monetizing opportunities will come in the next five years, the following areas are likely to dominate: advertising - which will become much more personal and engaging - data mining, from which it will be possible to derive real-time insights into people's behaviors and thus target services and adverts; network capacity building; enterprise 2.0 growth; and Web 2.0 going mobile.


So what does this all mean? Every Internet user leaves a footprint whenever they go online. The challenge for service providers and content providers is to mine this data and make use of it, and to do so in a publically acceptable way. Mobile Internet use will become a key driver of this trend and technological revolution will remain the main enabler of changes in communication behavior over the next five years and the years to follow.


For more information on monetizing Web 2.0, read Alcatel-Lucent's whitepaper.

 
 
 
 

Enhance and Prioritize Personalization with Contextually Aware Applications

Posted by: Erik Linask | August 28, 2009 1:51 PM | 0 Comments
Today's Internet is largely indistinguishable from its previous incarnations - not only has it become a seemingly infinite repository for information and an means of access to applications and content, today's Internet takes it even further. 
 
The new devices, applications, and network technologies that combine to form the infrastructure and delivery mechanism for today's abundance of Web-based content have also enabled a high degree of personalization. Personalization, of course, creates sticker services, leading to user satisfaction and, ultimately, subscriber loyalty.
 
The need for increased personalization comes as a result of a new age of real-time social communication that allows users to communicate, create, and collaborate anywhere, at any time. That ubiquitous access to the Internet and its capabilities has led to what is being called Web 2.0 - a highly interactive, personalizable version of Web-based applications and services that is truly only possible when users have access to these resources at all times.
 
For the application developer and service provider, this presents an opportunity to leverage that desire for real-time interaction by delivering applications that leverage user data to create a personalized multi-screen experience - which to a large degree means adapting applications that have traditionally been available on the desktop, for the mobile device.
 
After all, the mobile device is quickly growing to be a popular means of accessing the Web, thanks to not only the devices, but the evolution of wireless broadband access from both cellular carriers and through WiFi routers. It all results in an always-on user, though on different devices at different times. It also results in a need - but also an opportunity - for providers to understand where users are at any given time, and on what device.
 
Certainly, the integration of GPS chips into mobile devices makes identifying where users are easy.  And identifying on which device users are accessing the Web is a basic task.
 
What remains, then is using that information, along with other available data - after all, users leave their footprint each time they visit a site - to create an experience that makes it increasingly desirable for subscribers to use a provider's services.
 
It can be used to deliver targeted advertising based on sites visited or items viewed; it can be used to recommend restaurants based on knows preferences and current location; it can be used to let users know when their Facebook friends or Yahoo! buddies are within a certain distance so they can meet for a coffee; it can be used simply to identify the most effective communications channels at any given time. Those are just a few basic examples.
 
The possibilities are nearly limitless, when providers leverage all the data that is available to them. The key is they have to do so in order to create the services that drive loyalty among user groups.
 
As the market becomes more adept at leveraging this available information, the next step will be adding intelligence to the Web - the Semantic Web, according to a recent White Paper from Alcatel-Lucent. The Semantic Web, as its name implies, requires the Internet to "understand" user requests - does he mean Michael Jackson the late pop icon, or Michael Jackson the former wide receiver for the Cleveland Browns and Baltimore Ravens.
 
But that is a discussion for another day.  Today, the focus for providers and developers must be on identifying what data is available and how they can programmatically turn that behavior information into a highly user-centric Web experience.
 
For more on the Web 2.0 world, read the Alcatel-Lucent white paper.

Best Practices for Managing OPEX in Today's Challenging Climate

Posted by: Erik Linask | August 20, 2009 12:16 AM | 0 Comments
Telcom operators are facing a new competitive environment, where they are challenged by the economy as well as market trends, to manage capital and operational expenses more carefully than ever before.
 
As far as investments in their networks goes, operators are carefully planning their roadmaps to next generation communications infrastructures, including high leverage networks. But, ultimately, investment is inevitable, if they intend on remaining competitive and be able to deliver the latest content and services to a new generation of devices.
 
However, there are alternatives that can provide substantial benefits on the operational side, and operators are considering new models that will allow them to create new revenue streams through partnerships with various members of the community, from other network operators to content providers to application developers and others.
 
These new strategies include investing in fiber to the home, which will allow operators to deliver an expanded set of services more cost effectively. They can also look to deliver their services on converged platforms, lowering management and maintenance costs, as well as power to maintain multiple systems.
 
But perhaps the most telling sign of the changing landscape is a growing trend towards network outsourcing. In other words, service providers are looking to partner with network operators to deliver services to customers, rather than focusing on expanding their ownership of network assets. Considering the prevalent thinking that the future of communication lies in applications and services, it's not surprising we're seeing a separation of the network from services.
 
For network infrastructure owners, this presents a parallel opportunity to become network managers, allowing other operators to leverage their network reach and capacity to as a way of generating revenue and maximizing network potential. Increasingly, network operators are turning to managed services to increase their market position, including adopting "build-operate-transfer" or "build-operate-manage" strategies; full or partial network outsourcing (i,e, the transport
network of a mobile operator or full outsourcing of a legacy network); capacity management; and managed or hosted content and applications.
 
These new models not only reduce operating expenses, but build new relationships that will guide the communications industry into the future. Take, for example, the BT Openreach initiative in the UK, which allows telecom operators in the UK to leverage BT's existing local access and backhaul networks.
 
According to an Alcatel-Lucent whitepaper, outsourcing and network sharing can have a significant positive impact on a network operator's finances. Outsourcing can improve EBITDA (net income before interest, income taxes, and depreciation and amortization) by about 1.5 % and OpFCF (Operating Free Cash Flow) by about 6 percent. Infrastructure sharing will deliver 10-20 percent savings in CAPEX and 20-40 percent savings in OPEX over a five-year period.
 
Furthermore, separating the network from services vastly enhances a leased line unbundling model, and allows operators to be labeled as utilities rather than telecoms, increasing their market value.
 
Ultimately, though, sharing of network infrastructure will result in much faster ROI on new applications and services, as they can be rapidly deployed to a larger subscriber base without having to invest in new network infrastructure, and the testing and maintenance that go hand in hand.
 
Because of these inherent benefits in an outsourcing model, service providers are increasingly looking at network ownership as being outside their core business - their new core business, that is. Not only do they lower their capital investment, but, more importantly, they reduce the recurring costs associated with network upkeep. And the simple fact is that, as network operators continue to migrate to high leverage networks, those networks will become less of a differentiator and simply a means to an end, with each network being much like the next.
 
Instead, services become the differentiating factor, which is where providers will focus their investment, and service providers of the future may not even own any network assets. Instead, their efforts will be entirely focused on the customer - acquisition, interaction, and retention. And even then, they will need to forge third-party relationships to help deliver the latest applications and services to their customers, as members of the ng Connect program are already doing.
 
For more on the how the telecom operator landscape is evolving, read Alcatel-Lucent's white paper, called, The Coming Carrier Network Infrastructure - A Very Different Landscape.

How Can I Leverage the ng Connect Program to Accelerate My Ecosystem Development and Create Sticky Services?

Posted by: Erik Linask | August 18, 2009 10:59 PM | 0 Comments
Network operators and service providers today are in a unique position, as they build out their next generation communications networks to enable them to not only phase out costly legacy infrastructures, but to deliver a host of new and innovative services to users who have also embraced technology and adopted
 
The challenge, though, is determining where are these new services - and the devices, for that matter - going to come from. Most applications are already being developed by third parties, which means network operators have to forge solid relationships with them, which also means they have to identify those that will provide the greatest value to their subscribers and, consequently, to their own businesses.
 
There are already several platforms for delivering these applications - the most well-known, of course, being Apple's App Store, but that is just what its name implies, a venue for distributing applications to users.
 
Alcatel-Lucent, when it founded the ng Connect program, sought to establish a valuable resource for the other half of the services equation: an ecosystem of a broad spectrum of companies that have a forum to collaborate to drive innovation and remove the business and technical barriers that is needed to accelerate mass adoption of new services in a next generation environment like LTE.
 
When the initiative was launched in May, Chris Carfagnini, Director of Emerging Technology & Media for Alcatel-Lucent, explained who the potential beneficiaries of ng Connect would be.
 
"Any company that is interested in leveraging next generation networks in their future offerings, and are interested in learning more about it today, before it's implemented," he said.  
 
The goal of the collective - and the reason any vendor with eyes on ultra-high bandwidth technologies should be interested - is to increase the pace of development of devices and services by focusing on cross-industry interoperability and common practices for developing services for and delivering them across LTE, GPON, and other next generation network solutions.
 
The result will be lower time to market with new services, ultimately delivering a much improved user experience. For carriers and service providers, it will also help create new revenue streams through an opportunity for collaboration with partners that might otherwise been off the radar - but whose objectives are in line with theirs, and whose technology can be leveraged a larger community.
 
In other words, it's an opportunity to grow a diverse ecosystem of partners that will benefit everyone - from developers to content providers to carriers to end users in a wide range of industries.
 
"It's about truly transformational and innovative companies that are willing to collaborate and understand how they are going to use broadband technologies in a way that betters the user experience," said Derek Kuhn, Vice President of Emerging Technology and Media at Alcatel-Lucent.  "We can collaborate to benefit the operator community with time to market and time to revenue, and we can innovate and touch industries that traditionally telecom might not reach out to. That's what's drawn a lot of the partners to this program."
 
ng Connect was founded on the belief that technology is evolving so rapidly, that the only real limitation is innovation, and how quickly the vendor and developer communities can deliver new products. That limitation is most easily overcome through a collaborative project, like ng Connect.
 
"The ng Connect ecosystem has the power to create a nucleus to showcase what is actually possible when you connect all these devices in a real LTE environment that provides the bandwidth that is necessary to provide an enhanced user experience," explained Volker Hirsch, EVP at ng Connect member Connect2Media. "When that is achieved, the full power of mobile can be released."
 
It's that very dream of unleashing the true power of the mobile experience that provides the momentum for ng Connect. It's also why the greater this ecosystem becomes, the greater the benefit for its members will be.
 
For more on how you can leverage the ng Connect ecosystem, read here. 
 
Check out this video with comments from several members who are already enjoying the benefits of an expanded ecosystem.

Address Legacy Network Phase-out While Developing Solutions from Embedded Network Assets

Posted by: Erik Linask | August 17, 2009 12:28 AM | 0 Comments
Today's digital age has created an opportunity for network operators worldwide to differentiate themselves in an increasingly competitive market by developing effective and attainable network evolution plans that will enable them to keep pace with user requirements for access to services and applications - anywhere, anytime, on any device.
 
To help deliver that promise, Alcatel-Lucent has developed its high leverage network strategy, through which providers can address the need for building efficient, high-availability networks, as well as the innovative, user-centric services they deliver across those networks. The high leverage network model allows providers to have flexible bandwidth while retaining an acceptable cost model - critical for delivering advanced applications to users across multiple access technologies.
 
Importantly, in the United States, the high leverage network will also offer an opportunity to catch up to other developed markets in terms of broadband infrastructure. Continued, targeted investment in effective next generation network solutions will also help boost the economy through job generation and new applications and services users will pay for that run on those new high leverage networks. This, of course, is a key driver of the Obama Administration's broadband component of its Economic Recovery Act, which is designed to drive intelligent investment in broadband infrastructure.
 
Such investment is also the only path to being able to support end user demands for more interactive broadband services, including multimedia services, as well as tighter integration between telecom and other media.
 
Alcatel-Lucent details a high leverage network as having the following characteristics:
 
·         High bandwidth
·         Scalable and elastic
·         Reliable, resilient, and always on
·         Cost-effective
·         Eco-sustainable
·         Multi-service
·         Open and interoperable
·         Secure and private
 
However, this is a major undertaking, and such an evolution will not happen quickly, though incremental progress will become evident quickly, as operators look to phase out their legacy networks in favor of new high leverage networks. Success will depend on their ability to make the transition seamlessly to users, with no service disruption.
 
While each network provider will choose the specific path to a high leverage network that fits its model, it will be an multi-stage process that will culminate in a complete migration of all services and subscribers.
 
Many wireline providers have already begun the process by deploying investing in broadband, IP/MPLS, or optical transport solutions, which have opened the door for new services, like residential triple play or VPNs. Additional steps might include access network evolution from copper to fiber, enhanced video capabilities, improved content delivery, new advertising models, and digital home solutions.
 
On the wireless side, providers will look to adapt their traditional voice networks to accommodate the growth of wireless data services, with an eye on transport costs. Of course, there is much more to it than just transport, and wireless operators will also need to focus ultimately on evolving to all IP networks to ensure scalability and cost effectiveness. This means they'll need to develop plans for evolving radio access networks, backhaul, the network core, service delivery architectures, as well as the transport layer.
 
This is where a proven networking expert - both wired and wireless - like Alcatel-Lucent can prove a value partner. Alcatel-Lucent has developed its product set specifically to help network operators evolve from legacy to all-IP in a cost effective, step-by-step manner that will only become apparent to subscribers when the realize the benefits of the new infrastructure - though most users care little about how their services work, they only care that they work.
 
Ultimately, because the nature of IP differs little between wired and wireless networks, the same strategies that have already proven beneficial for many wireline operators will also be implemented by wireless providers. In fact, a wireless IP network will become merely an extension of a wireline IP network. Before that can happen, though, wireless and wireline operators alike must overcome a number of hurdles:
 
·         Converging the metro, aggregation, and edge with Carrier Ethernet and MPLS;
·         Evolving from circuit-based to packet-based transport using packet-optical transport;
·         Scaling the core with next generation integration of IP and optical technologies;
·         Delivering service specialization and application assurance to improve end user QoE;
·         Enabling converged services control including dynamic policy management, session control and mobility management.
 
Once these issues have been addressed, and providers have drawn up plans for their evolution path, they will enjoy significantly lower operating costs, while cutting the time to market for new services, and will have increased flexibility with bandwidth and service delivery - all resulting in increased revenues.
 
In addition, U.S. providers will have put the country's infrastructure back on a path to being a global leader, rather than playing from behind, as it is now.
 
 
For more on high leverage networks, read this article.
 
Common strategies for evolving to high leverage networks can be found in Alcatel-Lucent's whitepaper, and more on how intelligent investment in networks will help support America's infrastructure growth, read here.

Which Web 2.0 Services End Users Want and Are Willing to Pay For

Posted by: Erik Linask | August 16, 2009 10:55 PM | 0 Comments
The primary difference, from a user perspective, between the Web of a decade ago and today's Web 2.0 is the conversion of the Internet from a one-way information portal into a two-way communications tool - both for business and consumer users. It's the interactive nature of today's Web applications that presents an opportunity for providers to create highly attractive, personalized, and customizable applications for end users, increasing subscriber loyalty and creating new revenue streams.
 
The key for service providers is being able to identify the services that will be most attractive, and for which users will be able to pay.
 
Operators' ability to deliver these services to their subscribers is a part of Alcatel-Lucent's application enablement vision, which combines what it calls a high leverage network with application enablers - the capabilities that allow the creation and deployment of these new services and, importantly, their monetization. It combines a true next generation communications network with high-value applications.
 
This approach allows network operators to deliver a rich user experience through the use of various subscriber data that allows the personalization and customization users demand. Today's application environment is not a "one-size fits all" world, and providers that are able to deliver on these new customer demands will quickly differentiate themselves in the market.
 
Any application development and delivery strategy must be founded on a new and more compelling user experience. Perhaps most importantly, providers must be able to accommodate user preferences for specific services and their preferred means of delivery. Ultimately, and understanding of these factors will allow providers to determine which services users will be willing to pay for, which directly correlates to their willingness to provide information that allows providers to develop even more effective applications and business models.
 
To help its customers better understand which types of applications users are likely to respond to most positively, particularly from a pay-for-play perspective, Alcatel-Lucent Bell Labs Business Modeling team used research from 15 developed markets to develop a five-year roadmap of services to target.
 
Though there are a number of services and applications that will ultimately be desirable, those that Alcatel-Lucent believes are most likely to become the most effective for revenue generation through the end user include: multi-screen video, integrating messengers, user-generated TV, multi-player mobile gaming, mobile social networking, and mobile video.
 
These are all services that are already in development and, in fact, already available from select providers to an even more select group of subscribers. But, as next generation networks continue to be built out, and new devices are developed that are capable of accessing these services, and, perhaps the biggest unknown, as subscribers migrate from legacy, limited functionality devices to new high-speed multimedia capable devices, these services will proliferate and present a real revenue generation opportunity for providers that have prepared for it.
 
Because, for end users, the critical factor is the experience, application enablement, including identification and development of the right service and building the right partnerships, represents the level of success providers will find in the future. Users don't want to think about the technology; they just want it to work - and they want it to work the way they want it to - so they are able to connect to the people and brands they care about.
 
For more, read Alcatel-Lucent's Application Enablement white paper.

Create an Optimal Partner Ecosystem for Delivering New Services and Applications

Posted by: Erik Linask | August 15, 2009 10:57 PM | 0 Comments
What we've come to know as the Internet today - a global phenomenon that provides access to more information and tools than could have been imagined 15 years ago - presents a goldmine of opportunity for network operators to differentiate themselves in the market. The challenge, though, is to decide on the right business model when it comes to developing and delivering applications and services to subscribers.
 
Already, the majority of applications have been built by third parties, not the service providers themselves, and the application development market is one that is only going to continue to grow as network technology continues to evolve and user devices become more sophisticated. This means providers have to decide - and quickly - how they want to work with these third-party applications developers.
 
This understanding of how to leverage third parties is a key component of Alcatel-Lucent's application enablement vision, which includes network evolution to a high leverage network, and collaboration with the application developer community - and, ultimately, managing the integration of new applications in the network environment and identifying ways to effectively monetize those relationships.
 
In order to accomplish the latter goal, operators behave, as they have for the most part until now, as strictly access providers. In other words, they provide the connectivity to third-party applications without leveraging their network resources to add value to the services. It's a strategy that poses little risk to the provider, but also limits their revenue potential.
 
On the other hand, providers have an opportunity to bring developers deeper into the network experience, linking applications to a wealth of resources, including subscriber demographics, billing systems, location and presence information, user preferences, and more. This model requires network operators to open their data vaults to their application partners, but significantly increases the revenue potential by creating higher value, more targeted, stickier services.
 
So, in order to most effectively integrate third-party applications into their overall product offering, network operators must identify which applications will be most valuable to them, which partners will be most valuable in delivering those applications, and which business models will allow them to most effectively create new revenue streams through those relationships.
 
Regardless of the specific applications that each operators will choose to focus on, there will be a number of key characteristics common to many of them that will make them easily integrated into next generation communications networks and make them desirable to the end user.
 
For instance, many will incorporate video technology, which is becoming a central part of services and devices. They will be much more personalized and customizable to create a stickiness not possible with legacy technology. They will leverage the growth of collaborative environments, like social networking, which has quickly grown into worldwide phenomenon.  They will incorporate automation techniques, making it simple to install, maintain, and troubleshoot them - no application is 100 percent fault-free, but enabling simple resolution of problems limits user frustration, which could result in dissatisfaction and, ultimately, churn. And they will leverage open standards that will allow them to be delivered to a wide range of devices, critical in today's always on world.
 
In order to build an ecosystem of application partners, network operators will have to first agree to open their networks and data stores more than they have in the past - which also means they will have to very carefully select their trusted partners to ensure the security of their resources.
 
A recent Alcatel-Lucent white paper has identified ten principles that operators must follow as they look to grow their third-party partnerships. These guidelines are meant to help derive maximum value from their relationships, while ensuring they can still exercise control over their resources.
 
1.       Establish a set of KPIs that set benchmarks for improving performance in this area.
2.       Take a pragmatic initial approach to working with third parties, aiming to show through simple early-to-market solutions how the new relationship could work and demonstrating that superior value really can be created.
3.       Have a variety of business and commercial solutions available over time to meet the needs of different types of partners.
4.       Understand which third parties are most likely to respond positively to an invitation to work with you. This can vary based on network operators' size, competitive position, geographic position, customer set, strategic objectives, services available, etc.
5.       Use software platforms that are suitable or adaptable for use by particular kinds of developers.
6.       Sell the ability to connect third parties with end users wherever they are -- through both partnerships and technology - including resolving issues on behalf of third parties, such as the customer's location, type of access network, device, and so on, as well as configuration, installation, and support.
7.       Break down internal walls and barriers between the key stakeholders, which will include CIOs, CTOs, OSS/BSS, network operations, CRM, product management and marketing.
8.       Deploy policy and QoS tools that are designed to enrich relationships with third parties, rather than simply as tools to control the behavior of applications or the telco's own services.
9.       Focus on dismantling subscriber data silos and getting consensus on rules for using that data. Subscriber profiling in its widest sense could be the most valuable tool that network providers own.
10.   Emphasize the ability to identify and authenticate individuals in a secure environment, as well as the ability to bill them.
 
For more on the relationships between network operators and third-party developers, read this article on the Next Generation Communications community.

Monetizing Web 2.0

Posted by: Erik Linask | August 3, 2009 12:07 AM | 0 Comments
What is Web 2.0?
 
Web 2.0 is the current evolution of the Internet, which, in basic terms, has from a one-way information store to a two-way collaborative interface.
 
This evolution in the way the Web is used is a natural progression, driven by new technology that has, in turn, increased collaboration, social interaction, personalization, active participation, and generally more real-time communication. Of course, it is fundamentally a function of the growth of broadband access, both wireline and wireless, supported by application development to enable these new forums for communicating.

 
Perhaps the most obvious example is Facebook, which has evolved into not only a giant social networking tool, but an alternative to other, more traditional communication methods, including email, since Facebook features much more than sending messages. It's become a collaborative community, where users are able to interact with individuals and larger communities to gather and share information.
 
In the business world, the obvious example is the proliferation of click-to-call capabilities integrated into so many Web sites, allowing users to either place a VoIP call, or at the very least, trigger a return call to a landline.
 
So, it's fair to say that not only has the Web evolved, but it has also had a significant role in creating a new type of Internet user - call him User 2.0.
 
These new communications methods in a Web 2.0 world are made possible through the enhancement of service provider networks - specifically the move to IP infrastructures - in both wireline and wireless environments. In fact, there are few activities today that require User 2.0 to be sitting at a desk in front of a PC. Instead, they can use their iPhones, BlackBerries, Android-based devices, and yes, for the old fashioned, laptops with wireless broadband cards.
 
So, now that Stage One is well underway, with the user community deeply into the process of integrating Web 2.0 capabilities into their daily routines, the question becomes, how can businesses monetize Web 2.0? How can they join the broadband economy?
 
Perhaps the most obvious answer - and that which is most closely tied to traditional revenue generation - is a new generation of advertising, which is already beginning to emerge. This new model will capitalize on the personalization that is part of the Web 2.0 experience, to provide very targeted advertising using contextual awareness, mobile platforms, personalized emails and IMs, and social networking sites to reach their intended audiences. In fact, the total online advertising market is predicted to eclipse $73 billion by 2012.
 
Certainly, there is debate over what limitation should be in place regarding advertising platforms that target mobile devices, but as minutes and messaging become increasingly commoditized, those arguments will wither. And, as long as subscribers have the ability to opt out of ongoing advertising, businesses and providers alike will be safeguarded from fault. In addition, the ability to precisely target advertising to select subscribers will not only likely result in higher success rates, but also prove less burdensome for the subscriber.
 
Of course, regardless of whether advertising is sold using a pay-per-view, pay-per-click, pay-per-sell, or any other emerging model, the ability to target effectively depends on technology that enables data collection, storage, and mining. Those resources will form the basis of the sophisticated advertising of the future.
 
There is a tremendous amount of information available to potential advertisers that rests in the (hopefully) safe hands of the network operator, who has access to the virtual footprints left with every move on the Internet. This data is a goldmine for businesses with the technology to collect, analyze, and repurpose it. In fact, mobile carriers have long been using subscriber trend data to up- and cross- sell in the interest of customer retention and increasing ARPU.
 
This is also where the service provider becomes such a critical part of the Web 2.0 value chain. They have the information that can be used to target advertising based on any number of contextual criteria. With the proper data mining techniques, they will be able to extract valuable information that can then be used to meet the needs of advertisers and content providers. Likewise, post-campaign data mining will lead to more effective campaign analysis.
 
The potential value of data mining and effective ad targeting will take on new meaning with the continued growth of broadband services. Network operators are already evolving their fixed and/or mobile networks to next generation high leverage networks, which will allow them greater flexibility and agility in adapting to subscriber behavior - including advertising.
 
New broadband technologies - including faster speeds and increase bandwidth - are already driving the adoption of new broadband-based services, notably IPTV and streaming video, interactive virtual worlds, with more to come. Each new service or application that is developed for the digital community represents a new advertising opportunity.
 
In the wireless world, that evolution is rapidly approaching, with LTE and WiMAX deployments already underway, which will allow wireline-like services to be delivered to wireless devices, presenting yet another potential advertising revenue stream. In fact, circling back to the Facebook example, many mobile device platforms are already Web 2.0 capable, supporting mobile access to Facebook and other social networking sites.
 
The transformation of the mobile landscape to an all-IP environment also brings additional monetization opportunities, effectively allowing triple play operators to offer mobile triple play, once networks reach a critical point in development, where service reliability and device compatibility issues have been resolved.
 
Much work is yet to be done, with network operators only in the initial stages of network evolution, and device manufacturers and content providers still ironing out platform compatibility wrinkles. This is where network equipment vendors like Alcatel-Lucent become an integral part of the process. They have the experience and the technology to enable operators to efficiently and cost effectively enhance their capabilities.
 
Nevertheless, the transformation of the network, the device, and the user is well underway - especially in the wireline world, where Web 2.0 services are a part of millions of Internet users every day. It is now up to the advertisers and service providers to leverage new user behavior to create new revenue streams.

Building a Dynamic Enterprise and Increasing Operational Sustainability Through Green IT

Posted by: Erik Linask | August 2, 2009 10:05 PM | 0 Comments
Every business is looking for more efficient ways to conduct business, and is seeking the greatest opportunities for doing so without sacrificing their ability to operate in a competitive environment. That is why the communications industry has been at the heart of cost savings initiatives even before the current economic recession hit. Businesses worldwide are looking to leverage the latest communications technologies to help drive down operational costs. 
 
To the benefit of the communications market, that has led to a level of growth that sets it apart from most industries, because, in order to gain the benefits of VoIP, unified communications, telepresence, mobility, and other capabilities made possible in a next generation communications environment, they have to invest, at least minimally, in their infrastructures.
 
But even then, there are ways for enterprises to seek out differentiated alternatives that add even more to their cost saving initiatives - specifically, Green IT. Investing in energy efficient hardware to replace legacy products not only brings the features and flexibility of IP-based communications, but further helps cut recurring costs through improved efficiency, reducing power and cooling requirements. Furthermore, Green technology helps support environmental awareness programs globally.
 
This has resulted in enterprises seeking out suppliers who have incorporated energy efficiency and environmental impact into their product design. It also plays neatly into the growing movement towards becoming a more dynamic enterprise, where the infrastructure, its users, resources, and processes are all converging to improve operational efficiencies. To realize the transformation to a more dynamic, more operationally efficient enterprise, businesses must reflect those same values in their infrastructures, which support their entire operations.
 
Indeed, studies suggest that more than 50 percent of businesses consider environmental factors when making investment decisions, and almost 8 out of 10 executives claim the role of Green IT is increasing in their organizations.
 
As business continue to migrate to IP infrastructures, consideration for power and cooling requirements becomes increasingly important, since IP phones and other infrastructure components - like Ethernet switches, PoE switches, and servers - are "on" day and night, drawing power, emitting heat, and increasing cooling requirements.
 
Certainly, these hardware components are required for an enterprise to function, but all of these infrastructure components can be selected to optimize power and cooling in the enterprise. For instance, using PoE capable devices helps eliminate additional backup power sources, which themselves draw power and emit heat. Appropriately sizing server hardware and adopting virtualization technologies also helps reduce physical infrastructure requirements, with multiple systems running on the same hardware, again reducing power and heat.
 
So, as enterprises consider their communications technology investments, it is clear that Green IT and eco-sustainability are becoming increasingly vital, not only for environmental awareness, but for lowering operational costs, as well as additional capital expenses related to power and cooling resources.
 
To help enterprises achieve their Green IT goals, Alcatel-Lucent builds and develops its communications equipment in support of and in compliance with a number of environmental initiatives, including RoHS (Restriction of Hazardous Substances), WEEE (Waste Electrical and Electronic Equipment), and electrical emissions, as well as the IEEE's goals towards shaping a more energy efficient communications environment.
 
In fact, Alcatel-Lucent, using an energy efficiency calculator developed in conjunction with Frost & Sullivan, undertook a comparison between its enterprise switching and telephony equipment and those of its competitors. The result: for an enterprise network with 6,000 1Gb access ports and 3,000 IP phones in a 10Gb backbone configuration, Alcatel-Lucent equipment can save businesses more and 1,000 megawatt hours and more than $150,000 over a five-year period.
 
The message is simple, as enterprises look to become more dynamic in their overall operational capabilities, they must first invest in infrastructure that embodies those same values. Green IT is become an important differentiating feature among technology vendors, and enterprises looking to become more flexible and environmentally aware are looking for that differentiator.
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