Telecom Italia Oracle World2008.Canal.V2

GRUPPO TELECOM ITALIA

Oracle Open World 2008

San Francisco, 24th September 2008 – Moscone Center

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Opening Communication Networksto Third-Party Service Revenues



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Opening Communication Networks to Third-Party Service Revenues

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Agenda

�Market trend

�Web2.0: threat or opportunity

�Web2.0 ecosystem

�Opportunity models

�SDP for 3rd party access

�Service Exposure

�Monetization needs



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Macro markets trends

�Demand for interactive video & Web enabled services are leading to a

proliferation of contents and applications

�Service Providers are becoming Full Service Providers combining their

fixed and mobile assets to address consumer, enterprise and

wholesale market

�Fixed and Mobile Networks are transforming to all IP to deliver multi-

media services over broadband and enable cost optimization of their

networks

�Growing business interest in Advertising area implies the changing of

Service Providers business model

�Towards Ubiquitous Lifestyle Communication Experience



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Macro markets trends

TimeBlack Phone Era Broadband Era

The average inter-

communication time is

doubled in the last years

but in the meanwhile the

ways of communicating

are increased as well.

These new ways are

intercepted by emerging

players in the Web arena.

Threat or Opportunity?

Fixed

Mobile

Web

Average Inter-Communication Tim

e



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The new battle field: threat or opportunity?

Communication

Services

Internet

Services

Content

Services

•Voice

•Video telephony

•Presence

•SMS

•MMS

•…

•IM

•Blogs

•Voip

•Communities

•Content sharing

•…•IPTV

•Mobile TV

•Video Streaming

•Premium Services

•RingTones

•…



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�Web2.0 Innovative players are emerging: from GAMeY to Facebook,

MySpace, Linkedyn, ..

�Usually they provide free of charge applications exploiting advertising

and indirect business models.

�They ride the open approach “web_as_a_platform”: their business

relies on “ecosystems’ (users/developers).

�Without a change of culture and a change of business models,

operators are reduced to Connectivity Providers

Connectivity MediaTelco capability Application

The challenge is to get the opportunity

Web2.0 ecosystem

TLC Operator

TLC Operator

Web2.0 ecosystem

�It’s vital to address correctly this new market battle field both from the

technological and stragical point of view by:

�Interpreting and adapting to the Web2.0 paradigm

�Adapting and adopting new business models

�The opportunity is to be part of this new market ecosystem

through the offering of Telco functionalities in a Web2.0 style

Threat

Opportunity



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Web2.0: winning strategy

Content and themes as

aggregation poles.

User and developers communities.

Social Networking

Users not only as consumers of

content and information but active

producers of them

Prosumer

Technology evolution that

simplifies application

personalization and composition.

Mashup

Extreme TTM: apps improve by

use. Important to be the first.

TTL based on natural selection.

Perpetual Beta



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Web2.0 ecosystem characteristics

Complex relationship system where all the actors contribute,

through their interactions, to add value to the overall system

Ecosystem

Virality

DevelopmentDevelopmentDevelopment TestingTestingTesting PublishingPublishingPublishing Marketplace

Revenue sharing

MarketplaceMarketplace

Revenue sharingRevenue sharing

Developers / Third Parties Apple Application Store

(sellig channel)

Apple iPhone + SDK Prosumer

Community

Rewarding paradigm

Open and available to

anyone

Marketplace

Simplicity and user orientation



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How to get the opportunity

Telecom Italia

User Profile and Network

Data

Billing relationship

Wide customers baseTelco capabilities

Rewarding e Marketplace

Community and virality

“_as_a_platform”

Developers ecosystems

Partnering with W2.0 actors

Telco2.0

Integration in ecosystems

Creation of new ecosystems



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Opportunity models

Telco functionalities are exposed to third parties. There are used under specific commercial agreements

Telco capabilities are integrated in 3rd

party ecosystems to exploit their viral distribution in existing dev communities

New ecosystems creation for Telco-based User Generated Services through SDK

and mash-up environment

Web2.0 ISP

Telecom Italia

ITNetwork

Messaging, Presence, Billing, Location, ….

3rd party ecosistemMVNO, OLO,

Telecom Italia

ITNetwork


Web2.0 ISP

TI ecosystem

Telecom Italia

ITNetwork

Messaging, Presence, Billing, Location, CC, …

Open Collaborative Model

Service ProsumerModel



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�Telco Capabilities are exposed to few

selected 3rd parties in a B2B relation

�Traditional agreements and contracts are

stipulated between parties

�The B2B relation can be customized to

fulfill specific requirements

�All revenue management choices can be

applied

�The usage of the capabilities can be

controlled/validated by the operator

Web2.0 ISP

Telecom Italia

ITNetwork


MVNO, OLO,




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MVNO type, capabilities and functionalities

MVNO TYPES

BRANDINGDISTR.SALES

OPER.BILLINGCRM

SUBSCR.MNGMENT

SERVICEPLATF.

CORENETWORK

ACCESSNETWORK

Full MVNO (Mobile Virtual Network Operator)

Service Operator

Reseller

MVNE Center

MNO



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Mobile Virtual Network Enabler (MVNE)

� The 1st generation of MVNOs were mainly resellers of voice service

(eg COOP, Carrefour, ..) as a way to exploit the wide customer base

(eg fidelity program). The 2nd generation of MVNOs requires stronger

integration between their own service platforms and business support

systems and the MNO infrastructure. Some Example

� Utility (eg Poste Italiane, ENEL, Autostrade), Media/Entertainment

company (eg Mediaset, La7,..), FixedNO (eg Tiscali, Tele2, Fastweb)

To address correctly all the different requirements

coming from different kind of MVNO, the preferred model

is to create dedicated service center (MVNE – Mobile

Virtual Network Enabler). The objective is to enable the

MVNO integration through open and flexible platforms.

Telecom Italia

Customers MVNO

MVNEMNO

MNO can easily integrate

new MVNOs

Marketing & Billing

Relationship

Enable Network Services,

VAS and BSS/OSS



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Service Center

Networked Car (tema.mobility)

�Consortium to deliver a telematic platform, where a vehicle on-board

unit is always-connected to the mobile network.

�Service Providers are players of the automotive domain (assistance for

both travelers and cars, traffic management, insurance services, etc.).

SIM

Car maker Services

• Voice• Messaging• Data

3rd party Service Provider (eg.

infotainment)

3rd party provider controlling

urban mobility

Customers

Connectivity service and

Telco Capabilities



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Vehicle

Service Center

Driver

3rd Parties

Monitoring and location

tracking

Data elaboration

and reporting

Driver assistance

Service platform

operation and

management

Service Example: Vehicle tracking



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Vehicle

Service Center

Driver

3rd Parties

3rd parties can provide

infotainment eg news, meteo, ..

Service Example: Connected Personal Navigator Device

User can manage his

space eg to upload music

or pictures

Driver@home



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Service Prosumer Model

� Telco capabilities are integrated in 3rd party

developer ecosystems to exploit their

developer communities and their

“marketplace” through viral distribution

� Typical internet relations are established

� The B2B relationship is pre-defined and can't

be customized

� Revenue Management options are more

limited (typically there is a pre-paid credit

based consumption with possible revenue

sharing

� Telco capabilities provider has limited

knowledge of the usage of the capabilities by

the prosumer

3rd party ecosistem

Telecom Italia

ITNetwork


Web2.0 ISP




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Example: Facebook

“Face2You” - exposing SMS and call control capabilities allows “facebook”

developers to create application that enable buddies to send SMS or make

phone call directly to the owner of the application



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Service Prosumer Model

TI ecosystem

Telecom Italia

ITNetwork



� Telco capabilities are integrated in Telecom

Italia developer ecosystems.

� “Cherry picking”: direct control of the

ecosystem allows flexibility in the B2B

relationship definition. Interesting 3rd party

application can be integrated in TI service

portfolio.

� Wider Revenue Management options are

possible since there is no constraints derived

from an existing ecosystem.

� Telco capabilities provider has wider

knowledge of the usage of the capabilities by

the prosumer



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Telecom Italia SDK

� Developers can download software

libraries to access Telecom Italia telco

capabilities for creating both client and

server side application

� Policy control manages this access

allowing flexible treatment of different

developers profiles.

� Credit-style system allows a simplified

way of charging exposed capabilities.

� Rooms for publishing applications,

statistics and news. Blogs for developer

assistance and discussion

Telco capabilities

ITNetwork

SDK PortalSDK Portal

provisioning monitor capabilities (soap/rest)

Telecom Italia

SDK APISDK API

Development-Time Run-Time



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SDK: Community and Service Sharing

The SDK portal has a key role in the Telco 2.0 ecosystem to foster the creation of a

developer community to leverage telco infrastructure

relationships between SDK users

Social Networking

Developers can create, publish

and share their applications

Service Sharing

Community participants can

provide feedback on the apps

Service Rating

Portal

- creation- publishing- sharing

- usage- feedback

- SDK download

- Community Join



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“User Generated Services”

� myKit is a new “user-centric” mashup

tool to simply applications creation

without requisting software development

skills

� It allows to compose in a simple

workflow basic components coming from

Internet and components that virtualize

telco capabilities.

� The Editor is a Web application. The

components are widgets.

� The metaphor used by the Web based

editor make the component independent

from the execution environment

� The application are executes client side

in a widget engine.

Messaging

WidgetCall Ctrl

Widget

Other TI

Widget

3rd party

Widgets

Telecom Italia Orchestrable Widgets

Telco Capabilities

Messaging Call Ctrl ...

Telecom Italia



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Web2.0 ISP




Web2.0 ISP

TI ecosystem


Open Collaborative

Model


Network/IT

infrastructure

SDP for 3rd party access

�Different models with different

characteristic in term of performances,

policy management, numbers and kind of

users, AAA, … require a flexible and

future-proof implementation solution

Web2.0 ISP




Web2.0 ISP

TI ecosystem


Open Collaborative

Model


Network/IT

infrastructure

solution1 solution2 solution3

SOA principles

“Service” feature separation,

reusability, abstraction, …

Vertical approach

Netw

ork

Capability

Netw

ork

Capability

SDP

Netw

ork

Capability

Horizontal approach



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SDP for 3rd party access: which approach?

�SDPs do not exist as products or solutions

“off the shelf” and “plug&play”

�Most of the vendors propose a “reference

framework” to be customized, adapted and

integrated depending both on the

techological and business context of the

operator.

�SDP are hence system integration solution

based on best-of-breed products

according to specific operator project

specification.

“an SDP is not a product, but rather a bundle

of products, that needs to be integrated into

the operators network and IT infrastructure.”

Source: Moriana, Service Delivery Platforms

And Telecom Web Services

“no Single Vendor Can Do It All”

Source: Forrester, Strategies to Own the Service

Delivery Platform Market



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Benchmarking between SDP implementation models

Source: Ovum, Service Delivery Platform Report

A services proposition, which nevertheless

offers products rather than pure custom-

build. The supplier provides an architectural

blueprint, but gives the customer a choice

when it comes to populating the architecture

with products, which are then customised

and integrated

A pure services

offering, where the

supplier builds an

SDP from scratch,

tailored to the needs

of each individual

customer

As SDP framework, but with a greater

packaged element and less choice of

products to speed up deployment

Pure product

offering, where the

supplier offers a

total

packaged solution

containing all the

components.

Operators

have such a complex

infrastructure that it

is very difficult to

use packaged

products.

√√√√



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SDP for 3rd party access: core functionalities

ChargingChargingChargingCharging

AccountingAccountingAccountingAccounting

Composition Composition Composition Composition

and and and and

modularizationmodularizationmodularizationmodularization

Abstraction and virtualization according to SOA approach

Reuse of existing functionalities

Standard interface between 3rd parties and Telco Capabilities (Web

Services, REST or network protocol)

Security,Security,Security,Security, Policy Policy Policy Policy

and SLA and SLA and SLA and SLA

ManagementManagementManagementManagement

Service Service Service Service

OrientedOrientedOrientedOriented

Identity management: user profile and identity protection, network and

external identity mapping

Authentication, authorization and access control through policy

management.

Service contract control and management

Scalable and modular approach

Plug-in approach to add new capability to reuse the framework

Composite capabilities can be created by composing or orchestrating

basic capabilities

Different charging module depending on the service scenario and the

partner business relationship

Flexibility in capabilities usage accounting

Multichannel integration with BSS



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Telecom Italia

Service Exposure

Content Content Content Content

ProviderProviderProviderProviderProsumerProsumerProsumerProsumer

Service Service Service Service

ProviderProviderProviderProvider

Network

MVNOMVNOMVNOMVNO

IT

SDP for 3rd party access: Service Exposure

� Service Exposure platform is a flexible intermediation layer that

virtualizes and protects Telecom Italia Network and IT infrastructure

guaranteeing access control and security when 3rd party applications

interact with telco capabilities. It decouples capability technology from

the exposed “service” enabling dynamic resource allocation as well

as service level agreement (SLA) management.



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Service Exposure functional architecture

Service Exposure

Network IT

Security / Firewalling

Third Party Interface

Runtime Shared Function

Mediation Layer

Network Protocol Adpatation and Telco Gateway

Management

Shared

Capability

Telco Protocol Interface IT / WS Protocol Interface

Policy & SLA

EnforcementMonitor / AuditAccounting Id&AA Management

Service Orchestration Resource Virtualization and Service Abstraction

Policy /

SLA

Mgmt

Partner

Rel. Mgmt



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Single point of 3rd party access management

Service Exposure

Network IT

Service ProviderService ProviderService ProviderService Provider Content ProviderContent ProviderContent ProviderContent Provider ProsumerProsumerProsumerProsumer MVNOMVNOMVNOMVNO




Mediation Layer


Management

Shared

Capability


ISC

SMPP

MM7

….

Message

Locatio

n

Presence

Provision.

….



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Service Exposure

Network IT



Runtime Shared Capability

Mediation Capability


Management

Shared

Capability


Capability

Capability

Capability

Single point of access to telco capabilities

Customer’s unified view of the Telco capabilities

Single point of access to telco capabilities

Customer’s unified view of the Telco capabilities




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Service Exposure

Network IT




Mediation Layer


Management

Shared

Capability


Capability

Capability

Capability

Single point of partner management

Telecom Italia unified view of the

Customer

Single point of partner management

Telecom Italia unified view of the

Customer




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Service Exposure

Network IT



Runtime Shared Capability

Mediation Capability


Management

Shared

Capability


Single point of exposed capability management

Telecom Italia unified view of the exposed Services

Single point of exposed capability management

Telecom Italia unified view of the exposed Services

Capability




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Service Exposure: products and components

Data Layer

TELCO

Service

Gateway

Layer

Mediation

Layer

Load Balacing

Layer

WSM

Layer

Firewall/VPN

Layer

Id&A

Mgmt

Layer

Mgmt

Layer

Oracle AquaLogic Service Bus 2.6

CompositionTransformatio

n

Message/Auth

Mappping

Routing

Protocol

Switching

HP

SGF

Oracle

RAC

ALSB

Oracle

RAC UUIS

Oracle

RAC TSE

Adm

Portal

Oracle

RAC

WLNG 3.0

HTTPS/SOAP

HP SOAM Broker

Auditing LoggingUsage

Limitation

Message Inspection

AA PEP

SLO Monitoring

HTTPS/SOAP

IMS I/F ,

SMPP, MM7, …

SIP, SMPP, MM7, … HTTPS/SOAP

Oracle WLNG 3.0 e Legacy

Business

Policies

Network

Protection

WS IMS

(WLSS 3.0)

Protocol

Adaptation

WS 2G WS …

HP UUIS

A&A

Cache

Session

Manager

Radius

Adapter

Federation

Manager

Transparent

Proxy

SOA Governance DomainSOA Governance Domain

HP Systinet2

Reg

Rep

TSE Admin

Policy MgmtPartner

Mgmt

Service

Mgmt

CISCO 6504 (LB – SW)

Checkpoint FW - VPN

HTTPS/SOAP

Other

WS

Account.

Module

HP

IUM



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Monetization NeedsSDP and Monetization Needs

Reuse

Open-up service delivery

environments to third parties and

innovative business models

Exposure

Framework

Re-use across the service delivery

environment through modular web

services design

Manage Lifecycle of services

spanning network and IT domain

with SOA techniques

�Subscribers need to be

tracked, charged for service

usage

�3rd Parties (content and

capability provider) need to

be reimbursed for providing

capabilities, technologies,

service building-block

�3rd Parties (ASP, ISP, MVNO)

need to get revenues from

the subscriber for the end

user services

�Operator needs to manage

monetization, get reimbursed

for infrastructure, services



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Management of Telco 2.0 Partner Networks

App

Developer

€

Operator

Customers

Customers

Billing

Rev Share

Rev Share

Billing-on-

behalf-of

Content

Provider

Capability

Provider

Application

Developer

Application

Provider

€

€

€

operator

€

Billing€



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Numero di servizi

Market share

corrispondente

Traditional

ModelTraditional

Model

Mission Critical ServicesSituational Services

Collaborative Open

ModelCollaborative Open

Model

Service Prosumer

ModelService Prosumer

Model

Performance, reliability,

QoS, ...

Rapid development

In house – specific skill Communities – no specific skill

Best Effort

Service Life-Cycle

Opening to 3rd party service revenues

Towards Long Tail service revenues

Service Exposure



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[email protected]

“It is not the strongest of the species that survives,

nor the most intelligent.

It is the one that is the most adaptable to change”(Charles Darwin)