October 2009 Archives
These days, seeing young consumers with high-tech gadgets like an iPhone or other smart phone device with Internet capabilities, is pretty common. As the desire for those very devices increases, so does the demand for increased bandwidth-intensive services.
And because consumers' usage patterns keep evolving, wireless operators need to develop a new strategy to support various multimedia offerings at a lower cost. Next-generation LTE technology appears to be the answer, but operators are still challenged with finding an easy way to transition from 3G CDMA networks to LTE.
Experts at Alcatel-Lucent said wireless operators should build a strategy that addresses the importance of a technology ecosystem, VoIP and seamless interworking, and spectrum efficiency and CAPEX.
Young wireless users are particularly playing a pivotal role in the evolution to next-generation networks. Users that make of the so-called "millennial" market, people aged 11 to 33 - are transforming the way voice and data services are accessed and used for business and consumer applications. While voice services are still important, other forms of communications, such as text messaging, e-mail, instant messaging, photos, video and online games, dominate usage, according to an Alcatel-Lucent white paper.
Businesses, too, are turning to mobile applications, such as collaboration and video conferencing to keep employees connected. A Yankee Group survey found that nearly 80 percent of responding enterprises provide mobile access, plan to upgrade to mobile access, or are evaluating the possibility for the future. As more businesses users look for enriched Quality of Experience and service, a growing number of enterprises appear to be willing to spend more for these services and applications, Alcatel-Lucent's white paper said.
What's more, businesses across many sectors are exploring M2M applications to transform the way they do business, Alcatel-Lucent said. M2M applications require a range of products, connectivity and support. But they key for wireless operators is to deploy next-generation mobile networks that meet younger users expectations while keeping the cost affordable.
There is a silver lining. Nearly all GSM, W-CDMA, TD-SCDMA and CDMA operators are embracing LTE as the preferred next-generation mobile network technology, Alcatel-Lucent said. This move toward greater acceptance will help create a larger ecosystem of chipset, device and infrastructure vendors, further supporting a successful introduction of LTE, officials said.
Alcatel-Lucent is further promoting the development of the LTE ecosystem through the ngConnect Program, which launched at Mobile World 2009 in Barcelona. The program is designed to bring industry stakeholders together to help shape the direction of LTE content, applications and devices, including multi-mode devices that support CDMA and LTE.
The goals behind the open LTE ecosystem, include attracting open innovation, enabling new business models, supporting continuous sharing of experience between wireline and wireless access, accelerating adoption of new devices and services and reducing costs for addressing complex customer requirements.
CDMA technology offers a "mature, stable and seamless path to LTE." With its smaller bandwidth requirements, CDMA technology aids in-band subscriber transition, the whitepaper said. And companies like Alcatel-Lucent can help service providers meet the migration challenges, no matter what technology path they choose.
Alcatel-Lucent offers a variety of tools, including:
• Troubleshooting wireless end-to-end bearers over a flat IP/MPLS network using service-aware
management tools.
• Multi-standard radio network planning leveraging CDMA RAN knowledge to ensure an
optimized and integrated LTE design.
• A strong mass LTE provisioning system for error-free configuration, fast roll-out and audit.
For more on the migration to LTE, read Alcatel-Lucent's white paper, "CDMA and LTE: Making the most of Wireless Broadband."
But, the network technologies they deploy are merely the beginning, and will serve only as a medium for delivering the services, content, and applications that will present the real opportunity for differentiation. Once operators have invested in and deployed their next generation networks, their key to success will lie in their ability to quickly and effectively introduce innovative new services to their subscribers - services that will be in high demand and for which users will be willing to pay a premium. In addition, the innovation must extend beyond the applications themselves, to an ability to integrate these new offerings across multiple networks, devices, and geographies.
Operators that invest in LTE technologies, for instance, will have spent billions, even tens of billions of dollars, by the time they have completed their full deployments. ABI Research predicts that Verizon Wireless, for example, will spend close to $30 billion on spectrum and infrastructure, and while LTE technology will present Verizon and other operators with significant reductions in operating costs, they will still need to find new revenue streams to support their business models to compete effectively.
As Nadine Manjaro, senior analyst, wireless infrastructure at ABI Research, writes in her article, Ecosystems Help Evolution to 4G Services in the latest issue of Alcatel-Lucent's online magazine, Enriching Communications, "Delivering new services quickly will require collaboration across an entire ecosystem. Operators are turning to vendor partners and members of the mobile value chain to assist in developing new services."
The idea of collaborating with other industry participants isn't a new one, and many operators have already successfully developed and launched services driven by such relationships, but there is potential - even a necessity - for more.
That's why Alcatel-Lucent, among others, which of course is a key player in the network infrastructure space, is also pushing the idea of developing ecosystems to help spur innovation, lower time to market, and increase the value proposition of new services and applications.
The idea is founded on the principle that networks can provide valuable resources that can be leveraged by an entire ecosystem to increase the value of new services and applications. Traditionally, however, most network operators have been hesitant to open their networks up to developers and content providers. However, in order to create deeper relationships, many are realizing that, properly controlled and secured, these resources can be an effective way to deliver more enticing services, since developers will have access to data that will help them more effectively personalize services and ensure their compatibility with networks and devices.
An Alcatel-Lucent white paper, Working with Third-Party Services: An Action Plan for Network Operators, identifies several network resources that can easily be leveraged to create compelling services that users will be willing to pay for. They include:
- The ability to offer differential QoS;
- Demographic and behavioral information on end users;
- Information on subscriber devices, location and online status (presence);
- Ability to authenticate, identify, charge and bill subscribers;
- Exposure of call control and messaging platforms;
- Ability to host and maintain services;
- Ability to provide 1st line customer support.
By working with third parties to build wide-ranging, multi-industry ecosystems that include infrastructure vendors, device manufacturers, application developers, content providers, gaming and computing experts, universities, and others with relevant expertise, operators can discover best practices, new business models, and new revenue opportunities not possible on their own.
Alcatel-Lucent itself has launched the ng Connect program as a means of bringing together these very types of constituencies in a collaborative environment to develop new services that exploit their network assets to create compelling, sticky services and opportunities for subscriber retention and attraction.
"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," said Volker Hirsch, EVP at ng Connect member Connect2Media.
But the major challenge for mobile operators is architecting and deploying a high-performance backhaul solution capable of reducing the cost per transmitted bit. Mobile operators are rethinking their approach to the backhaul network - migrating from a mix of legacy transports and multiple leased lines to packet-based technologies, so as to support an order of magnitude more capacity at much lower cost.


