Facilities-based service providers that own the access network are ideally positioned to distribute video both today and in the future, according to Chris Croupe, who works in strategic marketing at Alcatel-Lucent. Video comes in a variety of forms, its applications continue to expand, and this kind of content continues to multiply, Croupe notes in his recent TechZine posting, Future of video content: Evolution toward 2020.
Calls leveraging video have become widespread, he adds, noting that 59 percent of smartphone users under 35 years of age make at least one video call a month, and 37 percent of this group does so at least once a week.
Online video is also multiplying in terms of both available content and its applications. While online video caught on primarily a source of entertainment. (Do you remember watching one of the popular cat playing piano YouTube videos?) Today, it’s also commonly used in business. Indeed, most major companies, and many other organizations of various sizes, are leveraging online video to promote their brands and educate customers on their offerings. Alcatel-Lucent is one example of this, Croupe says, note the company’s New Guy at the Office series.
Meanwhile, the quality of video continues to improve, with 4k Ultra-HD technology adoption expanding by camera and TV manufacturers, and creators of content, says Croupe.
All of the above have contributed to a large upswing in global bandwidth consumption, which Bell Labs expects to be in the neighborhood of 1 Zb a year this year and to reach 4.3 Zb a year by 2020.
New connected TVs and other devices that make it possible for viewers to access video streams delivered over their television also make it possible for service providers like the telcos to make their mark in the over-the-top video space with content and video delivery networks. However, OTT video is just part of the opportunity going forward, and perhaps not as singularly important as it may seem, Croupe argues.
As the posting points out, while the way in which we consume video continues to evolve and expand beyond the TV, the television set remains the primary device of choice for watching video across different genres (comedy, drama, documentaries, movies, news, sports) of content. Indeed short form content is the only type of content for which the TV is not the preferred device for watching video, according to Alcatel-Lucent.
While we hear a lot about the wild growth and growing business for OTT streaming services, revenues in this space are markedly lower than those from linear video service providers on a global basis, according to Alcatel-Lucent. OTT services revenues do have high growth rates, but that’s not difficult considering that they started from zero.
Alcatel-Lucent also points out that video streaming providers depend upon high-bandwidth connections. Without them, users will abandon such services.
“Going forward, some content will be delivered as part of a linear package and other content will be streamed in an on demand fashion,” says Croupe.
“Operators can use local and consumer contextual data to provide discovery and delivery options for their customers and provide individually curated ads based upon the manner in which the content is being consumed and other consumer data where permitted,” he adds. “Overall, we believe the service provider’s position in video content delivery will remain extremely strong.”
Given all of the concerns about OTT encroachment on value-added services, particularly video ones, the Alcatel-Lucent message should be welcome news to communications service providers assuming they embrace the opportunities ahead and understand not just the competition but cooperation that will enable them to remain as critical parts of the evolving video-centric world.
]]>New Service Provider Revenue Monetization Model
Just as LTE has evolved to be the predominant technology for mobile broadband providers -- generating an average data volume per user of 168% higher than 3G data – so must the traditional charging model change. One charging model growing in popularity is Sponsored Data Charging.
Sponsored Data Charging enables mobile subscribers to view, stream, and benefit from sponsored content and use applications over the mobile service provider’s network without that data usage coming out of their monthly plan. The data charges that a subscriber would pay for the sponsored content are paid instead by the third-party provider owning the content. Even more importantly, a subscriber can test out certain sponsored applications and features for a short time to determine whether to subscribe, without impacting monthly data-plan limits.
Not only is Sponsored Data Charging built for massive broadband usage from all kinds of connected devices, it also can support emerging technologies such as VoLTE and NFV. Key target industries include advertising, retail, media, entertainment, healthcare, and financial services.
How Does Sponsored Data Charging Work?
Sponsored Data Charging requires flexible charging and rating models. One example is zero rating, where an application provider or third party pays for subscriber data consumed by the specific application or service, as well as data rewards, where the users are rewarded with additional buckets of data to extend their data plans.
For example, a mobile app developer could pay the mobile service provider a negotiated rate so the subscriber can use the app without worrying about data usage and overages. Zero rating data supported by advertising is a variation of this type of data plan. Another example is where a marketer provides a customer with a data reward as a bonus for making a mobile purchase, trying out their service, or for lead generation. Depending on the use cases with third parties, the real-time charging system needs to ensure accurate charges to the sponsor rather than to subscriber accounts.
Sponsored Data Monetization Partner Ecosystem
Sponsored data programs are proving to be an effective method of both monetizing mobile data consumption and attracting new subscribers on a global basis. To take advantage of this growing opportunity, Alcatel-Lucent is collaborating with Aquto. The collaboration takes advantage of Aquto’s deep understanding of the digital marketing ecosystem and combines with Alcatel-Lucent’s policy and charging expertise and experience.
Using the Alcatel-Lucent SurePay® platform, Aquto enables mobile service providers to rapidly roll out data sponsorship programs including data rewards and zero-rating of mobile apps/content. As shown in the diagram below, the service integrates with the existing IT infrastructure and with minimal investment, enables the service provider to monetize almost immediately by leveraging a global network of sponsors, which includes app publishers/developers, advertisers, and marketers.
Diagram: Sponsored Data Monetization Platform [Source: Aquto]
Aquto offers two programs for mobile service providers: Cloud-based sponsorships and the service provider user-engagement application.
Cloud-based sponsorships: To enable zero rating of mobile content, or offer data rewards to users, app publishers/developers, advertisers and marketers can leverage easy to integrate capabilities to keep users connected with their content and services.
Service Provider user-engagement application: In an increasingly competitive market, service providers have to devise new ways to keep users engaged. It is a destination to discover apps and services, offers from advertisers through which users can experience the benefits of zero rating and data rewards. The app draws users in and provides operators with the opportunity to engage users in a positive setting.
This sponsored data concept is not just about free Internet. It is quickly presenting itself as a vast opportunity for service providers to tap into a growing mobile ecosystem that is made up of app marketers and advertisers. Users are now spending more time with their mobile devices than in front of the TV or desktop. The timing is right for service providers to engage.
The combined expertise of Aquto and Alcatel-Lucent – including experience working with mobile operators -- has let leading mobile service providers rapidly roll out this new service that allows new revenue and monetization streams.
Indeed, it is being viewed strategically as a way for service providers to distinguish their services on the basis of Quality of Experience (QoE) from 3G and OTT voice apps. It is also seen as providing competitive advantage because of its ability to enable end users to seamlessly move from a voice call to a video call, or shift from one device to another in the midst of the conversation. It is why interest in accelerating VoLTE deployments is so high.
However, network transformations are not easy. VoLTE deployment and operations is an interesting case in point. It brings unique challenges for service providers related to policy control, charging and Diameter signaling control. Steffen Paulus, Director of Product Marketing, Alcatel-Lucent has some interesting insights worth sharing on the need for integrated policy, charging and Diameter signaling in a virtualized solution, as the path forward for VoLTE success. This is particularly relevant in light of Alcatel-Lucent’s recent launch of its End-to-End Voice over LTE (E2E VoLTE) solution that is an integral part of the Rapport multimedia real-time communications platform which has been architected specifically to me service provider and enterprise needs.
Paulus has a few tips and suggestions on how to get VoLTE rollouts optimized in those three critical and interrelated areas of policy, charging and signaling.
The first one concerns the value of network analytics and personalized offers as the means for service providers to achieve nice adoption rates when launching VoLTE. Network intelligence can be leveraged with the application of sophisticated analytics to understand which markets and customers will benefit most. This translates into the ability to offer self-service capabilities to customers and enables service providers to proactively target specific customer segments based on rich contextual information and be more responsive to changing market conditions.
In fact, the ability for the sharing of analytics across lines-of-business, assuming part of the network transformation includes the upgrading to a more flexible and adaptable underlying rating and charging capabilities, is critical for enabling rapid competitive responses. The reason is obvious but important, creative marketing can only work when new packages and business models are ready for prime time.
Second, when it comes to creating compelling VoLTE experiences is the getting the policy and signaling plumbing VoLTE-ready for ensuring the QoE. On this score Alcatel-Lucent with deep expertise in VoLTE implementations worldwide, knows that VoLTE can expose significant shortcomings of legacy Policy and Charging Rules Function (PCRF) solutions. Plus, there be limitations in scalability and performance, this can include features such as full geo-redundancy, session binding and correlation.
The scalability issue is not just one for handling the data traffic expected from VoLTE adoption. A surge in VoLTE subscribers is also going to significantly increase in diameter–based IMS-related control plane traffic. As Paulus explained, with this surge will comes a need to properly manage that signaling traffic, offer load-balancing and enable interworking capabilities. He explained, “This area is often referred to as diameter signaling control (DSC), and in combination with the IMS and policy & charging solution is a critical piece of the puzzle. “
Last and not least are the challenges for VoLTE regarding cloud readiness along with the value of using network functions virtualization (NFV) as foundational for next generation service creation and delivery. Part of this is based on the value of moving to software defined networking (SDN) and NFV capabilities in general as the most cost effective and agile way to run a network going forward. As if not more important is the ability for service providers to me fast-to-market, fast-in-the-market and incredibly fast to accommodate changes in market conditions be they competitor or user driven.
As Alcatel-Lucent points out, and recent studies have confirmed, most operators have not upgraded their policy engines and moved to NFV to enable a scalable and high-speed data layer that can be used to quickly create and manage differentiated data plans based on real-time information about subscriber preferences, needs and lifestyles. This is critical in a world where demands will increase for the unpredictability associated with the ebb and flow networking and signaling flows caused by the introduction/need for more flexible data plans and such things as providing real-time subscriber notifications about data usage.
Where all of this leads in terms of VoLTE success is that each one of the tools for success needs to be well-orchestrated and integrated to achieve, scalability and agility to assure both service quality and speedy responsiveness. All of this places a premium on having an integrated solution that incorporates all of the tools necessary for the operational efficiency and effectiveness that achieving optimal VoLTE demands.
]]>Benefits of VoWiFi for MNO subscribers
Benefits of VoWiFi for MNOs
Challenges of adding Wi-Fi to LTE networks
There are two main challenges:
Fortunately, these challenges are addressed with the new mobile network architecture that combines Wi‑Fi/cellular access with new Evolved Packet Core (EPC) functions. The architecture is described in 3GPP Technical Specification 23.402 (Architecture Enhancements for non-3GPP Services).
EPC architecture for LTE with Wi-Fi access
In the standards, Wi-Fi is considered a type of non-3GPP wireless access, which the MNO can view as either a trusted network or an untrusted network. To support these two network access types, two core network functions are needed:
For simplicity, we focus in this blog on the ePDG, but both methods perform similar functions for their respective access networks:
Although VoWiFi is the primary focus here, the method is transparent to the services (including Internet, enterprise VPNs and IMS). Indeed, this is the beauty of the solution. Implementation is relatively lightweight: an ePDG is added to the network and a slight update is made to the device’s client. In return, the solution works for any Wi-Fi AP (because no integration is required) and for any service (such as IMS, enterprise VPN and content delivery networks). The TWAG is similar, except it doesn’t require an update to the device, but does require integration with the Wi-Fi AP.
VoWiFi - part of the new IP communications customer experience
When the Wi-Fi/cellular access is used with a virtualized IMS that comes equipped with native APIs, MNOs can deliver new services to their consumers and enterprises. These include:
Witness seamless VoWi-Fi / VoLTE services at MWC
The new conversation experience is becoming a commercial reality: visit our booth (Hall #3, booth 3K10) at Mobile World Congress 2015 for a live demonstration of VoWiFi and VoLTE. You will see it in action on an Apple® iPhone 6, and implemented on an Android by D2 Technologies and InterDigital Technologies, over our vEPC/ePDG and vIMS network.
In doing preparations for what many have called “the circus” aka the annual Mobile World Congress (MWC)—which is arguably now the most important industry trade event as the world goes mobile and which takes place in Barcelona March 2-5—the excitement is already palpable. From all of the new cool devices of all shapes and sizes to interesting advances on things like antenna technology, Network Functions Virtualization, carrier aggregation, etc., the eye candy alone is almost overwhelming in terms of imagining the possibilities. However, MWC always is tantalizing because not only does it answer what we will see in terms of capabilities in the near-term, but also because of the questions it raises about the longer term.
In this regard I was struck by a recent blog by Michael Peeters, CTO, Alcatel-Lucent Wireless, entitled I think appropriately, The Circus is in Town. Peeters’ main point is summed up nicely where he says in characterizing his view on what’s the next big thing that will be the buzz of the show that, “...one thing is certain: its story will be about removing place and time constraints we took for granted.”
While I agree with where we are and where we are going to a certain extent in terms of removing place and time constraints, I happen to believe that the next big thing will be around what it has been and should be, i.e., utility. After all, as we move into always on/all ways connected broadband-enabled world, if all of the things Peeters points to about the Internet of Things (IoT), drones, wearables, more immersive customer experiences and the like are not both easy-to-use, trustworthy and useful, their monetization potential will not be maximized. And, let’s face it, the bottom line is the bottom line which is all about utility. This means utility as pervasively accessible and hopefully affordable and safe, as well as the perceived value we are willing to pay for personally and professionally that enables service providers to continue to accelerate the speed at which the future comes at us.
Talk of the town
If you think about MWC are more of a town meeting of all the stakeholders, along with being a good thing in the context of being a circus, which it is, Peeters’ observations about what will be discussed in terms of the short-term are spot on. In fact, his list of things that will be highlighted and discussed is worth review if you are lucky enough to go to Barcelona or not. They include his forecasts concerning what the show buzz will be about:
Applicability: LTE in new markets such as Public Safety. The ongoing deployment of VoLTE and potential further improvements. What needs to be added or changed to the existing technology?
Capacity: carrier aggregation in licensed bands, be it FDD or TDD, but also the combination of, and the tension between licensed and unlicensed spectrum and technologies. Do you go for LTE-U or Wifi-LTE aggregation?
Performance: specific deployment scenarios such as small cells for indoor and especially enterprise needs. Virtualization of the RAN. How and when do they make sense?
And, because the industry loves to discuss what comes next, despite 4G now finally being rolled out around the world, although “mature” might be a stretch given how far we have to go, 5G will be top of mind and interactions. Don’t get me wrong, this is a great thing. Who doesn’t like talking about the future? However, with things like VoLTE, Voice-over-Wi-Fi, Hotspot 2.0, IoT and M2M, really all in their nascent stages, my hope is that the industry is not getting ahead of itself. Indeed, the use cases that will emerge as to what is valuable as the mobile world moves toward being all IP and broadband are in most instances yet to be written.
This is a great thing as well. It is a so because it will be us figuring out the utility of new high-performance wireless networks and how to extract value from them and all of the new devices, business models (mobile payments for example) and competitive options that will determine what will be successful along with the who, what, when, why and how.
So as Peeters implies, by all means enjoy the show. Be entertained and enthralled. Like the circus, MWC is dazzling and if for no other reason can and should be appreciated for that alone. Indeed, take him up on the invitation to stop by the Alcatel-Lucent booth (Hall 3 – Booth 3K10) to learn more about the realities and possibilities.
In many ways we stand on the bottom of the on-ramp of the possibilities of the combination of pervasive computing and ubiquitous communications. The coming ability of networks to deliver more immersive experiences and better insights into how we can be more productive at work and enjoy more of the things that delight us in our personal lives makes this a unique time and a great time to be part of the buzz.
However, it is important to not lose sight amidst the technology of not just what it does but what it can and should deliver. In my mind the deliverables are utility and trust. It is my hope that at a high level these are the two things that are buzzing at MWC as they are what the industry should and can deliver as to what comes next.
Peeters has it right about the inexorable march of the industry toward providing us with the broadband infrastructure and agility the future is mandating in terms of breaking down the barriers of time and place, however, what this means in terms of deliverables creates fascinating open questions and opportunities and that is why the show is so engaging on so many levels. This may not a “new story,” but it certainly is an all important one.
]]>It is to keep enterprise customers on the mobile service provider networks for enhanced services that good in-building wireless solutions are seen as both a powerful business tool and a competitive advantage. This is particularly true when it comes to retaining small-to-medium business customers (SMBs).
This is an observation, driven home well in a recent TechZine posting by Tristan Barraud de Lagerie, Product Marketing Manager, Small Cells, Alcatel-Lucent (ALU), Field insights: Small cells retain enterprise customers. As he points out, ALU research has shown that more than 87 percent of enterprises are likely to switch to operators that guarantee good performance, but Alcatel-Lucent research found. He adds that, “Until recently, very few wireless solutions have been dedicated to meeting small enterprise needs. Not even in France and the U.K., where SMEs make up 99.8 percent of all businesses — and employ more than half of the workforce (51 percent in France, 59.3 percent in the UK.”
Source: Alcatel-Lucent
Small cells to the rescue—a five step approach for success
The good news for mobile operators is that small cells can give them the in-building coverage and quality of service they need to prevent churn and provide quality customer experiences. In fact, Barraud de Lagerie outlines five step approach to achieve success which have been applied successfully at thousands of small enterprises in France and the U.K. The five steps include:
The goal is simple, small cell deployments can be and should be positioned as a win/win for the operator and for enterprise customers. This is especially important for attracting and keeping SMBs customers as in-building gives the operators the ability to quickly and cost-effectively introduce new services like high-quality voice over LTE (VoLTE). And next-generation multi-standard (3G/4G/Wi-Fi) small cells make it easier to migrate to new services, and support always-on and all ways connections for the exploding and diverse population of wireless devices and their increased use as the communications platform of preference for all enterprise communications.
]]>While the Internet and all of the technologies that have stemmed from its creation have served to make our lives easier in many ways, they can also be very confusing and frustrating at times. In these times, people have traditionally turned to call centers to get customer support. In today’s increasingly digitized world though, fewer people are relying on this form of assisted service. Contacting a call center tends to be time consuming and, often times, frustrating. Traditional customer support is not very well-suited to handling the millions of very specific questions that arise during device usage every day. Enter mobile self-service.
There are few areas of our economy today that haven't been touched by the growing self-service industry. Many, it seems, prefer to resolve their issues themselves. People relish the ability to “do it themselves” because it affords them a certain level of control over their devices and services that was previously not attainable.
A recent consumer survey commissioned by Nuance Enterprise found that a majority of respondents thought positively about self-service. More specifically, 72% of smartphone users surveyed said that they have a more positive view of a company if they have a mobile self-care app, and 81% will tell others about a positive app experience. In terms of what motivates them to use a mobile app, 35% said that effortless transition to a live agent from a mobile app is the feature most likely to drive usage, while 48% want more functionality.
It’s not just customers who are embracing self-service though. Many CSPs are hopping on the bandwagon and offering web-based portals and mobile applications that standardize the customer experience across fixed and mobile device platforms. These tools provide customers with a personalized, contextual experience for diagnosing and troubleshooting configuration and performance issues related to access networks, home LANs, devices, applications, and Wi-Fi.
Why are both customers and service providers adopting self-care so enthusiastically? From the customer’s perspective, self-service is valuable because it is convenient and flexible. It provides an “autonomous communications channel enabling customers to obtain ongoing support on an “anytime” basis”[1]. Users are able to address the issue from wherever they are using whatever channel is most convenient for them, whether it be a smartphone, a tablet, a laptop, the Internet, or within a website. This is being enabled by new technologies like WebRTC and VoLTE, which make it easy to strike up a conversation from anywhere. For CSPs, self-service not only reduces the cost of interaction with customers, but also allows them to collect more customer information to deliver a more personalized experience. This, in turn, drives higher customer retention, increases revenues, and positions their brand as being a provider of a comprehensive and personalized customer experience.
It is critical to implement these self-care initiatives without compromising customer satisfaction in return for the cost-savings associated with an automated self-service system. The self-service tools that are provided must be valuable to consumers in order for them to adopt them wholeheartedly. They must empower customers to transact how they want, when they want.
At Motive, self-service is something we have long been interested in. Our dynamic and innovative self-care products, like Motive’s Self-Service Console, empower CSPs to reduce support costs, accelerate problem resolution and exceed customer expectations. These tools also allow customers to pay their bills, access their accounts and schedule maintenance, all without having to involve an intermediary. After making Motive’s self care options available to a large European operator, 88% of customers that used its PC-based troubleshooting application were able to avoid a call to the help desk altogether.
Due to the increasing amount of human-computer interaction in our world today, many people are much more comfortable accessing an account via a self-service portal. Customers feel empowered when they are able to avoid bypass the middleman and just resolve their problems themselves. On the flip side, CSPs are able to cut costs, get a better view of their customers, and provide more personalized service. That’s a win-win if I’ve ever seen one.
[1] Gupta, B., Johnson, R., & Pramidi, S. (2005). The Challenge of Customer Self-Service in Telecom. Infosys.
Voice and text revenues are declining as mobile service providers (MSPs) face an unprecedented challenge from OTT communication apps such as Facebook, Instagram, and lesser known entrants, including WhatsApp and LINE. At first, MSPs enjoyed net gains because the use of these apps had generated significant data revenue. But times have changed. While still a source of revenue, these apps have begun to erode MSP’s native voice and messaging revenue.
To illustrate, let’s look at WhatsApp, who recently debuted its business model for mobile virtual network operators. In this model, WhatsApp (now owned by Facebook) provides voice and messaging services while leasing wireless services from a mobile operator. This means that MSPs are left with price per bit as their sole differentiator.
What’s more, the massively popular OTT apps are generating ad revenue, giving them yet another advantage in their competition with MSPs who haven’t yet effectively exploited this revenue source. Fortunately, the tide is turning in favor of MSPs with the introduction VoLTE and rich communications services.
To help you prepare for a VoLTE launch, this blog series provides tips and insights on your go-to-market questions. You’ll also see how our Wireless Network Guardian’s network analytics capabilities can assist you with your launch strategy.
There are several key apps in this sector whose popularity we’ve examined:
Each offers at least one voice feature, such as video calling, voice calling, or voice messaging. Much like VoLTE, these apps often combine voice features with texting or content sharing. This study situates their voice services within the overall voice-enabled communication package delivered by these apps.
On average, 43% of subscribers worldwide make use of these OTT apps on mobile networks on a given month. But breaking it down by app is more revealing: their popularity ranges from less than 1% for Facetime and Nimbuzz to 26% for WhatsApp. Even more interesting is the fact that some subscribers use more than one OTT voice-enabled app. When adding the popularity of the individual apps, the sum is 68% – far exceeding the 43% reported above which represent the number of unique subscribers operating those apps.
But this competitive landscape varies widely across geography, and indeed, even across different networks within the same country. Service providers in North America have little competition from OTT voice-enabled apps, since only 12% of subscribers, on average, make use of them. The most popular of these apps in North America is WhatsApp, reaching just over 4% of users.
By comparison, Middle Eastern subscribers are especially active with OTT voice-enabled apps where 81% of subscribers make use of them. In fact, the cumulative sum of subscribers across those apps reaches 123% which means some subscribers use more than one of these apps! In that market, WhatsApp leads the pack by a wide margin with 71% of users hopping on it monthly.
Europe and APAC have 70% and 79% of their users launching voice-enabled apps; but WhatsApp dominates in Europe whereas LINE dominates APAC. APAC is also home to the network with the most users for a given OTT voice-enabled app in this study: a record setting 85% made use of LINE.
OTT apps are largely perceived as being “free”. Few users think about the data usage incurred by these apps since their bill only reports the total monthly data volume spent. How much is spent for each app is a total mystery for consumers and often for service providers too! But it is imperative to know how much data users spending on OTT voice-enabled apps to select the appropriate tariff strategy for VoLTE.
The average subscriber consumes 3.9 MB per day on these apps. That number includes all manners of communication offered by the app: voice messaging, video calling and texting. But that number differs greatly across apps and by geography. Facetime is by far the most data intensive with data volume of 12 MB per user per day on average. Its video call format drives data consumption much above other OTT voice-enabled apps who offer a range of less data intensive communication methods such as texting or audio phone calls. Another interesting observation: WhatsApp users in the Middle East and LINE in APAC consumed significantly more data than other app and geography combinations. This effect could be due to subscribers using the app often through the day, or to using data-heavy features. This distinction should be further investigated in a given mobile network before a VoLTE launch.
The average by geography is also telling: APAC spends the most data with 5.3 MB per user per day on average. Some regions of APAC offer mostly unlimited data which may explain the difference. And while fewer subscribers in North America used OTT voice-enabled apps, the average consumption is close to the highest with 4.4 MB per user per day on average. This average is driven mainly by Facetime which tells us of North America’s propensity for video calls. The number of minutes of usage is another key piece of information for marketing strategy.
On average, these OTT apps will see 10 minutes of usage per day. Those minutes represent the overall amount of time spent using the app, whether sending voice messages, video calling or texting. But users could be spending anywhere from 2-61 minutes depending on geography and specific networks.
And therein lies the fork in the road: should voice features be charged per minute as usual or is it time to ban minutes altogether in favor of data usage fees? Depending where one lives in the world, a VoLTE strategy will have different goals. In North America, it is about keeping subscribers from transitioning to OTT voice-enabled apps. In the Middle East and some locations in APAC, it is about enticing them back to the service provider’s app.
In North America, the trend has been to keep VoLTE rates identical to 3G: unlimited domestic minutes are included in the monthly plan. Given the limited competition from OTT voice-enabled apps in North America, the status quo for VoLTE voice calls makes sense. And video calling will be charged against the data plan – an excellent harbinger of healthy revenues to come given North America’s pre-disposition to video calling and the sharp data demand associated with that service.
In Europe and the Middle East, a different strategy might be required. To compete against WhatsApp and Viber, it might be necessary to meet them on their own turf and charge for data. VoLTE has been shown to require 10 times less bandwidth[1] – a marketing campaign touting that attribute in conjunction with the deployment of systems capable of reporting per app data consumption should lead users to make more educated choice towards the least expensive VoLTE option for voice calling.
While this blog focused on users’ affinity for alternate OTT voice-enabled apps, another attribute is key to a successful VoLTE launch: service quality. Mobile operators are in a position to deliver higher quality voice calls than their OTT competitors. Guaranteed quality could be an attractive proposition for enterprise users, especially while they try to access conference bridges or attend important calls while on the go.
Our Analytics Beat studies examine a representative cross-section of mobile data customers using the Alcatel-Lucent Wireless Network Guardian and are made possible by the voluntary participation of our customers. Collectively, these customers provide mobile service to millions of subscribers worldwide.
[1] Signals Ahead Research “Behind the VoLTE curtain, part 1” reports 6 times fewer PDCCH (Physical Downlink Control Channel) grants, 4 times fewer transmissions, and 89% less signaling overhead.
It feels like it was just a few months ago when you could read articles in the trade press lumping together SDN and NFV with NFV being a form of SDN or vice versa. Yes, both somehow are about virtualization and about converting hardware into software. Today – after numerous proofs-of-concept run by service provides around the globe – we know the role of SDN as virtually indispensable for NFV solutions that aspire to deliver the kind of agility and operational simplification we all expect from NFV. Only SDN can deliver quickly enough the (virtual) networks needed for newly deployed network functions. Alcatel-Lucent has recently demonstrated a complete virtual evolved packet core (vEPC) including a virtual IMS/VoLTE deployed in less than 30 minutes.
NFV and SDN enable on-demand service composition by steering traffic through a sequence of middle-box service functions (service function chaining), such as firewalls and traffic optimization. For example, an enterprise or consumer customer can use a self-service portal to check off the desired functions, which causes virtual network functions to be deployed or scaled and (per-subscriber) routing policies to be changed automatically (flow-through provisioning).
Likewise, NFV responds to changing traffic within minutes by spinning up additional virtual machines within the same data center but also in a data center close to where the traffic demand originates. NFV enables rapid software upgrades while containing the risk of service degradation. We are even seeing demand on the horizon for adopting Devops models in the telco domain.
A classical operational model with change requests being sent to the networking department is no longer up to the task. The network needs to be as dynamic as the server infrastructure and it is clear that only SDN can fill the bill. This will be a stepwise process and not just any SDN will be suitable for NFV. Telco networks are not only about dropping packets in on one side and the packets popping back out at their destinations. Telco networks are designed to deliver enough capacity, high enough performance, security and high availability for the critical services running over them in an end-to-end geo-distributed environment.
Clearly, SDN is right for NFV but it needs to be the right SDN. Read the white paper “The right SDN is right for NFV” to learn about critical network requirements for NFV, SDN use cases and four stages of SDN integration into NFV bringing different degrees of reward to service providers. Alcatel-Lucent CloudBand™ and Nuage Networks® VSP are discussed as an example integrated SDN/NFV solution.
]]>Most consumers now use a mix of communications, including traditional mobile voice, texting and vibrant new apps like WhatsApp, FaceTime, Skype, Hangouts and dozens more. But before VoLTE, they either got LTE’s faster broadband. Or they got a reliable voice call. They couldn’t get both at the same time. Now, VoLTE integrates mobile broadband with telephony. So now consumers can enjoy both faster broadband and great sounding HD voice. And their service provider can create vibrant new apps.
Today, with large-scale VoLTE deployments underway in the U.S., including AT&T, Verizon and T-Mobile), the “secret” value of this technology is becoming more widely recognized. In fact, Signals Research recently compared the performance of VoLTE, 3G UMTS and Skype in AT&T’s Minneapolis/St Paul network, for everyday conditions. And their study found that VoLTE’s performance really stands out!
It was the only service or technology to provide both faster broadband and great voice calls. (Mobile Skype’s voice quality, on the other hand, suffered in real-world conditions, and Circuit Switched Fallback’s [CSFB’s] 3G UMTS blocked LTE’s high-speed data.) That makes VoLTE essential for helping consumers extend their LTE broadband user experience to voice. So they can talk clearly while browsing, streaming, playing, sharing or finding information. A variety of VoLTE handsets are on the market, including the iPhone6, with more coming. And service providers such as AT&T are preparing to interconnect their VoLTE networks.
Signals Research also found that VoLTE improves audio quality, sets up calls faster, reduces battery drain and improves coverage. I’ve found these points to be true in my own VoLTE experience. And as a result, I end up using mobile voice more often.
VoLTE also enables a crucial breakthrough. For the first time, consumers can enjoy clear mobile video communications. (This capability is sorely missing in the U.S., following the curtailment of MetroPCS’ video service). Alternate providers’ real-time video apps suffer from bandwidth congestion that cause delays or interrupt the call, such that app providers’ video is used predominantly where there is uncongested WiFi. Now, mobile video calls are clear, because similar performance optimizations as VoLTE’s are applied to video.
Video calls are also simpler to use. That’s because VoLTE’s and video’s presence technology enables the phone to display an icon that indicates when a video call is available — during their current voice call or for buddies listed in their phone’s address book.
Many consumers opt to use popular messaging apps that offer an experience that’s simpler and more interesting than texting. VoLTE smartphones can enable enhanced messaging. For example, VoLTE’s technology and the phone can offer group chat, as well as indications that a message was delivered — or that your buddy is busy typing a reply. In addition, it can allow consumers to share content such as images, files, locations, or other digital items. So, instead of sending yet another email, your subscribers can “message” it inside or outside of a call.
As Sue White wrote about the current marketplace and consumer preferences, “…we first need to accept what has changed:
In other words, voice and texting have their place. And VoLTE improves their market appeal while reducing costs and streamlining your networks. But the bigger point is that VoLTE can help you overhaul consumer communications to address bigger market changes. This starts with data-centric pricing and moves to a new model where no single service dominates mobile service providers’ revenues.
Chetan Sharma calls this the “4th Wave . (Hint: Read this account of the challenge and opportunity for mobile service providers). In recent VoLTE workshops, I’ve seen our customers’ keen interest in the crucial role VoLTE can play. It enables them to move from an untenable position that’s focused on voice and messaging and shift to a data-centric approach. Then it opens their way to engage in the 4th Wave, as the digital lifestyle provider. This is how I see communications playing into the 3rd and 4th waves:
VoLTE is where communications meets cloud. Today’s competitive market demands reduced costs for mobile voice. And that’s why our leading-edge customers are already preparing to implement VoLTE in the cloud.
Cloud also provides the necessary speed for competitive communications in the 4th Wave, which includes rapidly changing apps, more dynamic traffic patterns and highly varied new use-cases.
Think of VoLTE as the first step in this journey. The destination is a creative and pragmatic overhaul of your communications. So you can embrace the promise of the first wave of alternative communication apps. This crucial venture is fully realized when IP communications is implemented in the cloud, with tight integration between the application and access. And when your business is open to the 4th Wave’s new way of thinking.
I invite you to check out these items:
Please check out the TMCnet blog serious on VoLTE:
- The Secret Value of VoLTE: Part 1
http://blog.tmcnet.com/next-generation-communications/2014/04/the-secret-value-of-volte.html
- The Secret Value of VoLTE: Part 2
http://blog.tmcnet.com/next-generation-communications/2014/04/the-secret-value-of-volte----helping-enterprises-cut-the-cord.html
- We ask the Experts: Part 1
http://blog.tmcnet.com/next-generation-communications/2014/04/we-ask-the-experts-a-blog-series-on-real-world-volte-deployments.html
- We ask the Experts: Part 2
http://blog.tmcnet.com/next-generation-communications/2014/05/we-ask-the-experts-how-can-volte-outperform-circuit-switched-services.html
- We ask the Experts: Part 3
http://blog.tmcnet.com/next-generation-communications/2014/07/we-ask-the-experts-how-can-exceptional-qoe-be-achieved-in-volte-networks.html
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There’s been a lot of debate within the industry about VoLTE’s readiness and how it stacks up against 3G voice and applications like Skype.
Now Signals Research Group (SRG), a leading field research and consulting services leader covering the wireless telecommunications industry, has closely studied the performance of VoLTE, 3G and Skype in AT&T’s commercial network and issued their report. As we noted last week, SRG conducted that independent network benchmark study in Minneapolis-St. Paul, in collaboration with Spirent Communications. This is a market where Alcatel-Lucent provides the infrastructure, so I’m particularly glad to share this report with my friends and colleagues who’ve helped design, deploy and optimize VoLTE.
During June and July, SRG tested VoLTE, 3G and Skype for everyday conditions, including stationary and mobile locations, strong and weak radio coverage, and under a variety of network loading and multi-tasking conditions. The tests evaluated voice quality, call setup time, call reliability, eSRVCC handovers, network resource utilization, and battery life.
For subscribers, SRG concluded VoLTE delivers superior call quality even for weak radio coverage and loaded networks, along with faster connectivity and substantially less battery drain. For the operator, VoLTE consumed fewer network resources than Skype.
The SRG report states: “Whenever we do these types of studies we are always fearful that the results will fall short of our expectations and we will be in the precarious position of telling proud parents that their baby is less than beautiful. Fortunately we were not faced with this situation after completing the first part of the VoLTE study. VoLTE generally lived up to our expectations.”
The SRG results should settle the industry debate. A voice app such as Skype was shown to require a sunny day situation in order to sound good: strong radio signals, little network loading, and no multi-tasking. VoLTE works all the time, including everyday conditions. VoLTE’s audio fidelity is better: our voice tones are richer and warmer, and we don’t have annoying latency or lost audio during calls. Plus VoLTE provided significantly longer battery life than Skype, and only a bit less than 3G.
VoLTE’s user experience also beats 3G Circuit Switched Fallback (CSFB). Calls were setup nearly twice as fast as CSFB. VoLTE’s voice quality was measurably higher due to intrinsic AMR-WB, which isn’t in that 3G UMTS network. Particularly important for today’s data-hungry people, VoLTE subscribers get faster broadband, because LTE is always available, including voice calls.
SRG also measured how VoLTE provides efficient network utilization. Its design shrinks the packet header so that it consumes less radio bandwidth (Robust Header Compression); it requires fewer scheduling grants and resource blocks; it provides better coverage (TTI-Bundling); and it takes greater advantage of techniques such as discontinuous reception or transmission (DRX, DTX). When compared to Skype that means VoLTE ensures the LTE cell has more capacity for broadband data services.
For consumers and enterprises, VoLTE is the clear winner. It provides a superior experience while simplifying everyday communications. VoLTE enables anyone to talk clearly while simultaneously browsing the Web, downloading videos, sending emails, playing games or sharing content at LTE speeds.
]]>What does voice over LTE (VoLTE) offer your subscribers? Better voice quality, including HD voice. Rich communications with messaging and video. And whatever inventive applications you choose to introduce. In other words, VoLTE can provide a superior quality of experience (QoE) for subscribers and give you a competitive edge — particularly when your service operates at its best.
In my last blog, our experts explained why an end-to-end strategy is the key to maintaining peak VoLTE performance. Now we’ll look at how this strategy gets put into practice to optimize real-world service offerings. The information here is based on interviews with Luis Venerio who works with our VoLTE Readiness Services team. And his observations come straight from his experience on VoLTE deployments that serve millions of subscribers.
Validating QoS end to end
The first step in providing a satisfying QoE is to make sure each element of the network is correctly configured for VoLTE. That means checking quality of service (QoS) settings, end to end, to verify that all impacted network elements provide the proper treatment to high-priority VoIP traffic. By locating any incorrect settings, this audit identifies where problems can be prevented and performance can be enhanced.
Luis points out that it’s not unusual for network operators to conduct audits. But for VoLTE offerings, there’s an important difference: A collaborative, cross-domain approach can produce the best results. That’s because VoLTE calls travel across the entire network, and performance issues often arise at the intersection of different network domains and elements.
For example, while working on VoLTE readiness, Luis’ team examined the user plane and control plane end-to-end paths that support VoLTE service. And they found inconsistent QoS settings on both. “This included inconsistent QoS settings on the ingress and egress interfaces of individual network elements that handle user traffic,” he says, “as well as inconsistent QoS settings for elements sharing a common interface.”
Because the translations weren’t set correctly in transport, for example, packets in VoIP weren’t getting special treatment. But for VoLTE to be successful, these settings have to be consistent, because if even one network element doesn’t give high priority, it could lead to packet loss and poor call quality. “We were able to give the operators an end-to-end mapping of interfaces where those parameters were not set consistently,” Luis says. “And we indicated which areas uncovered by the QoS audit could have the greatest impact on VoLTE. So the operators could make the changes that are really needed to deliver higher QoE.”
Checking other cross-domain parameters
A configuration audit can address other VoLTE performance issues too. For example, it can verify the activation status of required features needed for VoLTE service in every domain including but not limited to user devices, radio access, backhaul, core network and IMS layer. And it helps make sure that parameters are properly set for key functionality, such as Circuit Switch Fall Back (CSFB) and emergency calling capabilities.
Through this careful attention to detail, the VoLTE Readiness Services team identified incorrect timer values on the IMS layer, which could affect VoLTE call setup and duration. The configurations of individual network element parameters initially seemed to be fine. But with their cross-domain view, the team found that timers came into play between the IMS and LTE layers, and the timers were tearing down calls. “If you only looked at LTE radio access and core network layers,” Luis says, “it would have been challenging to determine why the calls were failing without understanding interactions with IMS layer.”
Measuring QoE after an audit
After the configuration audit is complete, VoLTE performance needs to be evaluated end to end. This assessment should look at both signaling and bearer traffic to identify delay, jitter and packet loss — and analyze KPI metrics for call setup and quality.
There are various ways to measure and quantify performance, but the Alcatel-Lucent VoLTE Readiness Team uses field-proven, automated in-house VoLTE performance tools to streamline data analysis. The tools analyze KPIs across network segments to identify anomalies, outliers or performance problems.
And because a subscriber’s QoE is also a subjective factor, the team also relies on Mean Opinion Scores. “We believe the MOS is an important metric for understanding the VoLTE user experience,” Luis explains. “So MOS samples taken during drive test calls should be correlated with RAN KPIs and network logs. The MOS scores can be affected by any number of issues, such as poor RF, interruptions caused by handovers, codec selection mismatch, and packet loss, just to name a few.
It’s critical to have a well established process in place that addresses all these findings by properly classifying issues and engaging the appropriate domain subject matter experts who can help to further investigate and resolve the problems. A collaborative team effort with key representatives from the network operator and vendor domain experts is essential to ensure adequate support and a successful VoLTE roll-out.”
“Remember the big picture, and examine the small details”
That’s how I would summarize our expert’s advice for maintaining a high QoE. The key is to keep in mind that VoLTE performs best when it is properly configured for the full length of the network. That’s the big picture. But that means paying attention to small details that are unique to this technology, each step along the way. With that end-to-end approach, VoLTE can help you win new subscribers and deliver the superior QoE that can keep them satisfied.
Our next blog asks the experts about key IMS considerations for delivering optimal VoLTE performance.
Click here to subscribe to our series. To join the discussion on Twitter, follow #VoLTE, or connect with @JeanSJones or @EdElkin1.
Past blogs in this series:
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The craze for WebRTC grows louder as its realization in the market begins to be marked with high profile adoptions such as in Google Hangouts, Amazon Mayday, and SnapChat’s AddLive solution. The formal standardization of WebRTC began in 2011. Early implementations by Google and Mozilla, on Chrome and Firefox respectively, followed shortly - beginning in 2012. And with the availability of developer versions of WebRTC on Chrome and Firefox, an ecosystem of proof-of-concept and early commercial products and solutions quickly emerged. Open source plug-ins are filling the gap in browsers that do not yet support WebRTC e.g. Internet Explorer. There is also clear progress being made in WebRTC standards for ORTC. Given this, we expect that WebRTC ORTC will likely be natively available on Microsoft’s Internet Explorer within the next 18 months.
Craze@Alcatel-Lucent
This is exciting to witness after having initiated Alcatel-Lucent’s WebRTC work in 2011. Since then we have come a long way:
In June 2013 we launched a complete WebRTC solution for telco and enterprise markets including client Javascript libraries, the WebRTC Border Controller and an ecosystem of partners with a sandbox providing a fast prototyping environment for WebRTC apps,
We played a key role in driving standards for WebRTC including the current 3GPP IMS WebRTC specification work, IETF MSRP Data Channel integration and ATIS ORCA Javascript WebRTC APIs for 3rd party development. Our ORCA API implementation covers basic VoIP/video call control, advanced VoIP/video call control, and RCS over Data Channel and is available through our Web Developer Portal and via github. The solution makes it easy to embed real-time communications into applications, websites and the browser,
We are also engaging with 3rd party app partners, building a vibrant ecosystem of developers, who are integrating their innovative apps with our ORCA APIs and backend system, opening up new opportunities for service providers to capitalize on existing network investments and to enhance the customer experience.
Craze@Telcos
With the growth in IP communications deployment and adoption of VoLTE services, discussions with telcos and enterprises have intensified. Many of these conversations are taking place at WebRTC dedicated public events such as Upperside’s WebRTC Expo Conference, Informa’s WebRTC World Summit and more recently TMCnet’s WebRTC Conference & Expo and IIR’s Next Generation Service Platform where Alcatel-Lucent hosted a VoLTE Innovation Hackathon providing an on-site virtualized platform with support for developers.
What’s clear is that service providers are now prototyping, trialing and integrating WebRTC gateway and services into their existing IP communications. This is happening even while open questions are still pending regarding use of plugins, building of WebRTC apps native to the device as well as in the browser, use of transcoding, federated versus island solutions, and technology maturity in areas of QoS, codecs, identity management, browser support, etc. And there are several reasons for this.
As mentioned by Stephane Cazeaux from Orange Labs during UpperSide’s WebRTC Expo Conference, the telco’s approach to WebRTC is primarily to pursue “access webification”, i.e., WebRTC enabling web access to existing telco services and improving the telco’s brand experience. An example is the New Conversation APIs enhanced version of the SIPPO Web Application Controller from Quobis, which won the first ever “fast tracking innovation” contest at the Conversations 2014 conference. It highlights the value of a common WebRTC client for legacy as well as new WebRTC-enabled services such as collaboration, B2C click-2-call, Gmail plug-in, etc.
But WebRTC doesn’t only make it possible for service providers to leverage the web for telco-based consumer and enterprise services (including B2B, B2C). Talking business strategies and opportunities at the UpperSide conference, Fabrizio Caffaratti from Telecom Italia differentiates the WebRTC retail model -- where WebRTC as a framework enables WebRTC distinctive and enriched retailed services -- from the WebRTC wholesale model -- where the service provider capability is to leverage the web ecosystem for the benefit of telco services (B2B2C) and to monetize telco WebRTC APIs exposure to third party developers. As an example, Apizee’s Web Call Center application integrates Alcatel-Lucent New Conversation APIs allowing RCS service continuity on the web.
The potential of WebRTC to positively impact IP communications is high. There are many use cases and business models being explored in both the consumer and enterprise markets. These scenarios leverage WebRTC for VoIP, video, and data channel-supported services. They include the use of WebRTC in browser as well as WebRTC implementations native to the device – providing a consistent approach to facilitate the realization of the vision for IP communications enablement of all IP connected devices, the Internet of Things. The possibilities are truly exciting and the craze is not stopping!
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Recently in Munich, Alcatel-Lucent ran a 12 hour Hackathon that pitted the industry’s best and brightest developers against each other. The mission: build the most original, compelling and marketable app using New Conversation APIs.
New Conversation APIs make the rich functionality of IP Communications simple to mash up into applications. By enabling developers to easily integrated voice, video, data and contact information into any app, service providers can innovate faster – providing entirely new communications experiences to end users from any screen, device and network. They enable operators to explore new opportunities for enhancing retail services and to pursue new wholesale markets through application partners (web, verticals, M2P, M2M…).
For the Hackathon, Alcatel-Lucent provided on-site the virtualized, commercial grade IP communication platform and APIs access through its WebRTC Border Controller, Converged Telephony and Rich Communication Servers. But the real stars were the developers, whom powered by pizza, beer and caffeine, brought the adrenalin, ingenuity and drama.
The Hackathon did not disappoint. The developers delivered highly original, compelling and marketable apps that run on IP communication serving as the foundation for today’s LTE network and VoLTE services. A panel of global telecom industry analysts, developers and operators had the tough task of choosing a winner.
Ultimately, judges named PhoneDeck the winner. Its developers used New Conversation APIs and WebRTC technologies to deliver an app enabling the seamless mobile integration into CRM Salesforce. The app significantly improved the work experience of sales representatives through a screen-pop displaying relevant information about the customer calling on the mobile; call whispering providing information from a previously scanned customer business card stored on the CRM; click to call back on the sales representative’s browser; mobile, multi-device call handover; and mobile call reporting.
Hackathon finalists included:
Such competitions ultimately benefit end users like you and me. It provides a path to creating a world where communications is more dynamic and compelling – one that connects all contacts and communications in the online and real worlds to make the act of communicating simpler and more meaningful.
]]>To satisfy these expectations (and reap all the benefits of VoLTE), you need to start with a new way of thinking about service deployment. According to the VoLTE experts I’ve talked to, that means developing an end-to-end strategy. Then, ideally, carrying out your plan with the help of a cross-functional team.
The rest of this blog takes a closer look at this distinctive approach, using information from my interviews with:
They both have experience working on some of the world’s largest VoLTE deployments representing millions of subscribers— and their insights provide real-world lessons straight from the field.
Thinking end-to-end
Working cross-functionally
Coming together starts at the design phase. Micky believes that collaboration is crucial for designing the end-to-end architecture and points out that, “Special consideration is needed at the key interfaces where various technologies intersect, such as the edge of IMS access and the device. Existing standards provide guidelines for that particular interface — and others. But VoLTE performance is optimal where there is tight integration. So we recommend documenting common requirements for both sides. This helps you avoid different interpretations of the standards and prevents issues from arising later. For example, it’s a good idea to define whether IPsec will be used, what transport type will be used and so forth.”
Luis agrees that cross-domain awareness begins with service design — and continues throughout each phase of VoLTE deployment. He says, “You have to look, first, at how the network is configured and how calls are establishing. Then you quantify performance to make sure everything is optimized and meeting expectations. Then there’s the deep dive to troubleshoot. But even at that phase, the Alcatel-Lucent VoLTE Readiness team looks across domains by using logs and other tools to identify the source of a problem.”
For example, in a recent deployment, the cross-functional team identified several cases of imperfect race condition handling in the interface between network elements. This condition occurs when there are conflicts in the sequence or timing of certain processes, so that messages get dropped. It’s most common when network elements are from different vendors, Luis points out, but they are notoriously difficult to identify. Using a collaborative approach, the Alcatel-Lucent team identified a race condition occurring between the Mobility Management Entity (MME), a key control node for an LTE access network, and a third-party gateway. Once the issue was discovered, both sides continued working together in design discussions and agreed on enhancements that will improve integration in future releases.
Putting an end-to-end strategy into practice
Of course, having a new way of thinking and working isn’t the only requirement for providing a high-quality 4G voice service. But it provides the crucial foundation you need for addressing VoLTE’s unique characteristics. So you can deliver optimal performance on your launch date. Then keep your service operating at its best day after day.
My upcoming blogs will offer a more detailed view of how an end-to-end strategy gets put into practice. They’ll focus more specifically on ensuring high QoE, achieving KPIs, troubleshooting, maintaining reliability and more. My next blog asks the experts about their insights on how to achieve exceptional QoE in VoLTE networks.
Read the first blog in our series We Ask The Experts: A Blog Series on Real-World VoLTE Deployments.
Click here to subscribe to our series. To join the discussion on Twitter, follow #VoLTE, or connect with @JeanSJones or @EdElkin1.
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