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Competing with OTT Services: RCS-E Without Competing with OTT Services: RCS‐e without IMS November 15, 2011 An Introduction to Interop Solutions Overview Trusted Partner • “All‐Gen” ‐ Short Message Service Center (SMSC) 4 Series • Message Personalization & Control (MPAC) • Multimedia Message Service Center (MMSC) • Rich Communication Suite (RCS) Gateway • Converged Messaging Solution • Wireless Application Protocol (WAP) Gateway • SCOPE™ Device Management (OMA‐DM) • IS‐683 Over‐the‐Air (OTAPA & OTASP) with Interactive Voice Response (IVR) System • Session Initiation Protocol (SIP) Messaging Gateway • Intelligent Route Manager (HLR Caching) • Common Short Code (CSC) Gateway • Commercial Mobile Service Provider (CMSP) Gateway All solutions are available in flexible deployment options, including Hosted Services, Modified Hosted Services, and Turnkey. Copyright ©Interop Technologies 2011. All rights reserved Solutions Overview Trusted Partner Interop Technologies—the compelling choice for advanced wireless solutions •Founded in 2002 •Solutions that offer new levels of scalability, extensibility, redundancy, and throughput •Future‐proof architecture (seamless migration to, through, and back and forth) •Ability to match any business need, including operator trend toward Managed Services or focus on Turnkey (deployment models include Hosted, Modified Hosted, and Turnkey) •Knowledge and experience that can only come from running our own solutions in‐network (“He who builds, sells; he who hosts, buys.”) Copyright ©Interop Technologies 2011. All rights reserved Next‐Generation Messaging—The Time is Now Four Critical Questions 1. Is there really a market demand for next‐gen messaging services? 2. Is there a competitive threat to my messaging revenues? 3. Should I (or can I) compete or retreat? 4. How…and when? Copyright ©Interop Technologies 2011. All rights reserved The Demand is Here Mobile subscribers are already using next‐gen messaging services: • Skype—663 million users (Purchased by Microsoft) • Facetime/iMessage (iPhone, iPod touch, and Mac users) • Beluga, GroupMe (purchased by Facebook) • WhatsApp, Yahoo, AIM, Google Talk, MSN, et al. These services offer features such as: • Video chat and conferencing • Group messaging, public and private • Network address book, social and presence information • Synchronize conversation history/messages across devices • Transfer any type of media (video, text, images, files) Copyright ©Interop Technologies 2011. All rights reserved The Landscape is Changing • Open devices, open networks, and software distribution channels (App stores) allow third parties to develop services previously "owned" by network operators. • Skype, Facebook (Beluga/GroupMe), Google, MSN, Yahoo, etc . 9Offer messaging services “over the top”, with little or no revenue potential for the operator. 9As interoperability improves, a substantial threat of revenue loss exists as subscribers choose alternate messaging methods. • New entrant MSOs are launching, offering extended IP‐based messaging that poses a competitive threat. Copyright ©Interop Technologies 2011. All rights reserved The Threat is Real North America: • SMS traffic has been growing at a fast rate due to text messaging bundles, plans, and handsets. • The rate of P2P SMS growth has outpaced that of Europe, but availability of messaging substitutes (messaging apps, IM, and email) will cause traffic to begin to drop between 2011 and 2013. • The all‐you‐can‐eat SMS plans will cause price erosion, resulting in an overall decoupling of volume and revenue. Source: Ovum Messaging Forecast 2011‐13 Copyright ©Interop Technologies 2011. All rights reserved P2P Revenue is Declining Copyright ©Interop Technologies 2011. All rights reserved P2P Traffic is Declining Copyright ©Interop Technologies 2011. All rights reserved The Time is Now • The competitive threat is a clear and present danger. • OTT players are gaining mind and market share. 9 43M Blackberry Messenger (BBM) Users, 100B messages per month, 110% growth rate in last 12 months 9 WhatsApp—Over 20M global users and 1 billion message a day • Legacy platforms have no ability to provide “like” services. • You cannot afford to retreat…so you must compete…you must evolve. Copyright ©Interop Technologies 2011. All rights reserved RCS/RCS‐e What is RCS? Copyright ©Interop Technologies 2011. All rights reserved RCS‐e RCS‐e (“e” for Enhanced) is a simple and interoperable evolution to voice and text aimed at improving RCS time to market . RCS‐e enables customers to: • Send instant messages • Video chat • Exchange files in real time Copyright ©Interop Technologies 2011. All rights reserved The Industry is Moving…Slowly Operators launching RCS‐e include: • Deutsche Telekom (Germany 1H 2012) • Orange (Spain and France 1H 2012) • Telecom Italia (Italy early 2012) • Telefonica (Spain and Germany 1H 2012) • Vodafone (Spain and Germany early 2012) • 14 EU countries in 2012, Korea and South America No commercial launches to date Copyright ©Interop Technologies 2011. All rights reserved Why the Delay? No economic driver •Existing messaging services are well adopted and profitable •Operators have large investments in legacy messaging infrastructure •Operators need to protect the ROI on this investment Per spec, RCS requires an IMS infrastructure •Wholesale change to the network •Expensive investment 9 Capital 9 Engineering resources •Dubious ROI Copyright ©Interop Technologies 2011. All rights reserved Interop’s Solution: RCS without IMS RCS‐e solution available without need for fully deployed IMS architecture •Gives operators RCS compliant solution, not “RCS‐like” features 9 Instant messaging 9 Group messaging 9 Multimedia sharing •Enables operators to compete with over‐the‐top players today •Supports legacy messaging technology for ubiquitous user experience •Seamlessly integrates with IMS core if and when operator is ready Copyright ©Interop Technologies 2011. All rights reserved RCS without IMS • Control Node handles SIP and SS7 signaling interfaces for registration, session set up, and subscriber authentication; acts as P‐CSCF and CSCF in IMS infrastructure and as application controller for RCS. • Session Controllers set up and control MRSP sessions. • Subscriber and Routing Database acts as HSS in the IMS infrastructure; holds handset capability info gathered during registration plus operator‐ or handset‐specific routing info. • Protocol Conversion Gateway handles conversion from RCS/MSRP traffic to legacy SMPP or MM4/MM7 for delivery to SMSCs/MMSCs. Copyright ©Interop Technologies 2011. All rights reserved Don’t Replace…Evolve • Legacy investment is in the ground and will be serviceable for years. • New investments for existing subscriber messaging growth and next‐generation subscriber growth should be made in a technology that enables the future. • This technology investment will need to: 1. Support simultaneous Wi‐Fi, LTE, CDMA, and GSM delivery 9 Multi‐protocol support 9 Multi‐dimensional routing 2. Support backward and forward compatibility 9 Interworking of next‐gen and legacy messaging methodologies o Binary over MMS o Text over SMS 3. Leverage existing messaging infrastructure for interworking with legacy devices 4. Be fully IMS compliant once core deployment is complete Copyright ©Interop Technologies 2011. All rights reserved Steve Zitnik Executive Vice President –CTO World Headquarters: 13500 Powers Court Fort Myers, FL 33912 +1‐239‐425‐3000 www.interoptechnologies.com.
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