tads telecom summit huawei mac taylor

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HUAWEI TECHNOLOGIES CO., LTD.

www.huawei.com

Building a successful telecom application ecosystem: A vision for success Mac Taylor Chief Business Consultant – Huawei Digital Services Product Line

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Huawei Confidential

Contents

2013/11/23

1. Platforms, Ecosystems and Mobile Computing

2. What real value can a large NEP add?

3. A Vendor’s responsibility in the TAD Ecosystem

4. Building success with Partners


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Platforms, Ecosystems and Mobile

Computing

2013/11/23


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Huawei Confidential

There goes the industry…..


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Huawei Confidential

Telecom Application Manifesto

1. Telecom voice and messaging revenues, a $1T market,

are under pressure from web-based Over the Top service

providers.

2. The telecommunications industry must deliver more

services faster to survive.

3. But the existing ecosystem has failed to deliver, hence

the need to recognize and develop a sustainable and

profitable telecom application ecosystem.


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Huawei Confidential

Digital Service Percentage Forecasts


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Huawei Confidential

The Mobile Digital Business Opportunity


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What real value can a large

Network Equipment Provider add?

2013/11/23


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Huawei Confidential

2013/11/23

Evans, Hagiu and Schmalensee :MIT 2006

Invisible Engines – How Software

Platforms Drive Innovation and Transform Industries


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Huawei Confidential

Software Platforms – Multisided Strategies

2013/11/23

1. Businesses based on software platforms follow

multisided strategies

2. To get users, developers, and hardware makers

on their platforms.

3. These strategies are critical for harnessing

positive feedbacks.

4. Users value more applications, and applications

developers value more users.


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Huawei Confidential

A symbiotic relationship between telcos and OTTs: (e.g. iPhone apps drive data revenue.)

Asymetric Competition: OTTs offer services for free (e.g., Viber), close to free (e.g., Whatsapp). The “bundle” biz model of “service + connectivity” of telcos makes it difficult to compete .

The new telco Opportunity: build an ecosystem to drive distribution of unique telco services

Operators have THREE distinct businesses


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Huawei Confidential

The Power of Digital Platforms and Ecosystems

1. An ecosystem allows you to spread the costs and

risks of development to your partners.

2. This allows the value of the ecosystem to grow far

beyond what a telco could create on its own.

3. Your external partners, developers or service

providers, become investors in the ecosystem,

4. They subsidize the expansion of the your business.


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Huawei Confidential

Digital Services Platform – What is needed

1. Network Gateway – Integration into operator networks

2. Derived APIs, Other APIs and API services – APIs exposed from

other than the network gateway

3. API management

4. Developer platform – capabilities to enable developers to create

and run their applications using those APIs.

5. Developer community – real people using the APIs to solve real

business problems.


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A Vendor’s Responsibility in the

TAD Ecosystem


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Huawei Confidential


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Huawei Confidential

1. Telcos provide the communication resources and the large audience

as we all use communications every day;

2. Vendors deliver easy to use platform for developers and critically

brokering.

3. Brokering makes it easier for telco app developer to deliver across

many operators, and manage the cultural gap that exists in the

industry;

4. Telco app developers create a multitude of communication enabled

services making the telco more useful; and

5. End users enjoy a rich experience which keeps them consuming

communications services with a variety of business models.

What a responsible vendor should do to enable the TADE


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Huawei Confidential

Meeting telecom application developer diverse needs from hardcore

programmers to those who create new services on application platforms

that require little programming knowledge;

Providing systems that support and protect the operators’ networks;

Brokering between Telcos and developers to enable a service innovation

engine; and

Creating a community of developers for Telcos to access.

A Vendors Responsibility in the TAD Ecosystem


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Huawei Confidential

API Platform: Derived APIs, other APIs and API Services

Network Gateway

API Management, Partner Management, SLA management, Settlement etc.

Developer SCE Platform and Business Enablers for CPs SPs

3rd party ME and Global Developer Community

Huawei

Digital

Services

Platform

Operator

Assets and

Capabilities

Communi

cation

Billing &

Payment

Network

Optimization

Contextual

Information

Identity &

User Profile

Data &

Info Mgmt

Cloud

Resource

Integration with multiple Operators across regions and the globe


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Huawei Confidential

Exposing New Capabilities means new opportunities

Real Time Communication

Contextual Information

Charging & Payment

Data & Info service

Network Optimization

Cloud service Application Mgt & Operation

API (Network):

• Messaging

• Call control

• Call event

• IVR

• Conference

• RCS

• Content

management

• e-Fax

• USSD

SDK (Terminal):

• Messaging

• Call control

• Call event

• Conference

• RCS

• e-Fax

• Device

Connection Status

• GPRS(APN, QoS)

• Lock status

• Ported-in network

• Location

• Device change

notification

• Access type

• User balance

• User Quota

• History usage

• VAS charging

• In-App Charging

• Web App

Charging

• Package &

bundle

• Payment

• OpenID

• Subscriber type

• SMS/MMS

subscription

• Allowed access

type

• SSO capability

• OAuth Capability

• Generic Auth with

SIM/USIM

• Generic Auth with

WiFi

• Anonymous

Identify

• Generic Validation

• Multi-ran

Coordination

• Cell Status

• Policy Control

Capability

• Network data

analysis capability

• Video

optimization

• Cache Capability

• Elastic computing

service

• Elastic Storage

service

• Elastic Load

balance service

• App Hosting

Service

• RDS service

• Promotion

• CRBT

• UC

• Conference

• Dynamic QoS

Apply

• Portal creation

Capability

• CMS Capability

• Campaign

Capability

• Real-time decision

Capability

• Report &

dashboard

Capability

• Unified Product

Management


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Huawei Confidential

What Businesses want

1. Businesses want more than an API

2. They want a partner to help them build their business

3. They want to make their business better by adding telecom

capabilities

› Such as messaging, payment, voice and communication services

4. They need advice, and someone they can trust

5. They need someone focused on their business success

Page 20


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Huawei Confidential

ME

SMEs and

Enterprises

Operator A

Global (Telecom) Developer Community

Huawei Platform and APIs

Core Network, IT, Software and Services

Operator B Operator C

Platform Partners

Customers

Exposed Telecom Capabilities

creates potential for new services

New applications and services creates demand for

operator capabilities

Successful new communication services create new

demand for operators core business (voice,

messaging, data)

New business

value

New communication services

add value to operator’s

customers and reduce churn

Platform economics – the Telecom API ecosystem


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Huawei Confidential

Telcos must allow open promotion of the joint successes.

Publicity is essential to advertise

Success in a public forum where critical comment is possible,

and to help the industry learn

and meet the innovation challenge.

Vendors needs include:


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Huawei

Building success with partners


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Huawei Confidential

Application Scenarios of Multiple Level Core Capability

Single sign on

User authorization

OpenID

Query product

Subscribe product

Order & Query

Portal & CMS

integration

Promotion

Terminal adaption

Operation analysis Data&

Information

Platform & IT Identity&

Authentication

Charging&

Payment

Micro payment

In-app

payment

Mobile wallet

Cloud Resource Contextual

Information Real Time

Communication

Information & Interactive service

Click to Dial, number hiding

Instant & reservation conference

Call center, information IVR

Video surveillance

Location based Marketing & SNS

User profile based marketing

Behavior based marketing

Elastic computing

Elastic storage

Load balance

App hosting

Database resource

Cell status：Perceive network status

E2E QoS：Video acceleration

Network data analysis：Network & usage

visualization

Video optimization：Accelerate video access

Cache：Improve experience & avoid congestion

Network

Optimization

SME/Enterprise Developers SI

1 2 3


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Huawei Confidential

More than 165 ASPs (Application Service providers)

More than 130+ new services within 1 year

Total Revenue (by December 2012) increased to $301M from $29.4M in 2011

America Movil HUB Monthly Revenue

Rev $49M in Dec

Income 2011 Income 2012 60,000,000.00

50,000,000.00

40,000,000.00

30,000,000.00

20,000,000.00

10,000,000.00

0,00

January February March April May June July August September October November December

Achieving Business Success by Opening Core Capabilities


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Huawei Confidential

Global VAS Operation Experience

One Stop Multi Vendor MS Solution

Launched 30 new MVAS within 3 quarters

“Huawei has delivered a first-class maintenance

outsourcing Service to Starcomms, which met

the maintenance outsourcing needs of

Starcomms. Thanking Huawei Service engineers

for their efforts.”

Maher Qubain, CTO of Starcomms

Proud to have achieved the completion of Service

Delivery Platform (SDP) implementation within 4

months, surpassing the industry standards and

making it the fastest SDP implementation in the

history of Indian telecom industry.

"We wanted to have the same billing and prepaid

platform but the complexity around the integration

is huge, 13 countries are 13 differences and

Huawei had the ability to do the integration”

Joachim Mata, Director of Product Marketing at

Telefonica

Decrease the complexity of network management for

Customer

Shorten TTM from 5-7 weeks to 5-7 days

Double VAS Revenue within 1 year

Thank you www.huawei.com


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Copyright©2013 Huawei Technologies Co., Ltd. All Rights Reserved.

The information in this document may contain predictive statements including, without limitation, statements regarding the future financial and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice.

tads telecom summit huawei mac taylor

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