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Telecom Italia Oracle World2008.Canal.V2
1. GRUPPO TELECOM ITALIA
Oracle Open World 2008
San Francisco, 24th September 2008 – Moscone Center
Opening Communication Networks
to Third-Party Service Revenues
| Gianni CANAL| Network – Telecom Italia |
2. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Agenda
Market trend
Web2.0: threat or opportunity
Web2.0 ecosystem
Opportunity models
SDP for 3rd party access
Service Exposure
Monetization needs
1
3. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
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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4. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Macro markets trends
The average inter-
Fixed communication time is
Average Inter-Communication Time
doubled in the last years
but in the meanwhile the
Mobile ways of communicating
are increased as well.
Web
These new ways are
intercepted by emerging
players in the Web arena.
Time
Black Phone Era Broadband Era Threat or Opportunity?
3
5. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
The new battle field: threat or opportunity?
Communication
Services •Voice
•Video telephony
•Presence Internet
•SMS Services
•IM
•MMS
•Blogs
•…
•Voip
Content •Communities
Services
•IPTV •Content sharing
•Mobile TV •…
•Video Streaming
•Premium Services
•RingTones
•…
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6. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
The challenge is to get the opportunity
Threat
Web2.0 Innovative players are emerging: from GAMeY to Facebook,
MySpace, Linkedyn, ..
Web2.0 ecosystem
Usually they provide free of charge applications exploiting advertising
and indirect business models.
TLC Operator 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
Opportunity
It’s vital to address correctly this new market battle field both from the Web2.0 ecosystem
technological and stragical point of view by:
Interpreting and adapting to the Web2.0 paradigm
TLC Operator
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
Telco capability Application 5
Connectivity Media
7. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Web2.0: winning strategy
Social Networking Mashup
Content and themes as Technology evolution that
aggregation poles. simplifies application
User and developers communities. personalization and composition.
Prosumer Perpetual Beta
Users not only as consumers of Extreme TTM: apps improve by
content and information but active use. Important to be the first.
producers of them TTL based on natural selection.
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8. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Web2.0 ecosystem characteristics
Ecosystem
Complex relationship system where all the actors contribute,
through their interactions, to add value to the overall system
Developers / Third Parties Apple Application Store
(sellig channel)
Marketplace
Marketplace
Development
Development Testing
Testing Publishing
Publishing Revenue sharing
Revenue sharing
Apple iPhone + SDK Prosumer
Open and available to Virality
anyone Community
Marketplace
Simplicity and user orientation
Rewarding paradigm
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9. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
How to get the opportunity Rewarding e Marketplace
Community and virality
“_as_a_platform”
Developers ecosystems
User Profile and Network
Data
Wide customers base
Telco capabilities
Billing relationship
Telecom Italia
Partnering with W2.0 actors
Integration in ecosystems
Telco2.0 Creation of new ecosystems
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10. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Opportunity models
Open Collaborative Service Prosumer
Model Model
Web2.0 ISP
3rd party ecosistem TI ecosystem
Web2.0 ISP MVNO, OLO,
Messaging, Presence, Messaging, Presence, Messaging, Presence,
Billing, Location, …. Billing, Location, …. Billing, Location, CC, …
Network IT Network IT Network IT
Telecom Italia Telecom Italia Telecom Italia
Telco functionalities are exposed to Telco capabilities are integrated in 3rd New ecosystems creation for Telco-based
third parties. There are used under party ecosystems to exploit their viral User Generated Services through SDK
specific commercial agreements distribution in existing dev communities and mash-up environment
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11. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Open Collaborative Model
Open Collaborative
Model 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
Web2.0 ISP MVNO, OLO,
Messaging, Presence, All revenue management choices can be
Billing, Location, ….
applied
Network IT The usage of the capabilities can be
Telecom Italia controlled/validated by the operator
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12. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
MVNO type, capabilities and functionalities
ACCESS CORE SERVICE SUBSCR. OPER. DISTR.
BILLING
MNO
BRANDING
NETWORK NETWORK PLATF. MNGMENT CRM SALES
MVNE Center
Reseller
MVNO TYPES
Service Operator
Full MVNO (Mobile Virtual Network Operator)
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13. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
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)
Marketing & Billing
Relationship
Customers MVNO
To address correctly all the different requirements
Enable Network Services,
coming from different kind of MVNO, the preferred model
VAS and BSS/OSS
is to create dedicated service center (MVNE – Mobile
MNO can easily integrate
new MVNOs Virtual Network Enabler). The objective is to enable the
MNO MVNE MVNO integration through open and flexible platforms.
Telecom Italia
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14. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Networked Car (tema.mobility)
Car maker Connectivity service and
Services
Telco Capabilities
3rd party Service Provider (eg.
• Voice infotainment)
• Messaging
• Data
SIM
Service Center
3rd party provider controlling
urban mobility
Customers
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.).
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15. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Service Example: Vehicle tracking
Driver Vehicle
Driver assistance Monitoring and location
tracking
3rd Parties
Service Center
Data elaboration
Service platform and reporting
operation and
management
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16. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Service Example: Connected Personal Navigator Device
Driver Vehicle
3rd Parties
Driver@home Service Center
3rd parties can provide
User can manage his infotainment eg news, meteo, ..
space eg to upload music
or pictures
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17. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Service Prosumer Model
Service Prosumer Telco capabilities are integrated in 3rd party
Model developer ecosystems to exploit their
developer communities and their
“marketplace” through viral distribution
Typical internet relations are established
Web2.0 ISP
The B2B relationship is pre-defined and can't
be customized
3rd party ecosistem
Revenue Management options are more
Messaging, Presence, limited (typically there is a pre-paid credit
Billing, Location, ….
based consumption with possible revenue
sharing
Network IT
Telco capabilities provider has limited
Telecom Italia
knowledge of the usage of the capabilities by
the prosumer
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18. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
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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19. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Service Prosumer Model
Service Prosumer Telco capabilities are integrated in Telecom
Model 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.
TI ecosystem Wider Revenue Management options are
Messaging, Presence,
possible since there is no constraints derived
Billing, Location, CC, …
from an existing ecosystem.
Telco capabilities provider has wider
Network IT
knowledge of the usage of the capabilities by
Telecom Italia the prosumer
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20. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Telecom Italia SDK
Developers can download software
libraries to access Telecom Italia telco
capabilities for creating both client and
server side application
Development-Time Run-Time
Policy control manages this access
allowing flexible treatment of different
SDK Portal SDK API
developers profiles. SDK Portal SDK API
Credit-style system allows a simplified
way of charging exposed capabilities. provisioning monitor capabilities (soap/rest)
Rooms for publishing applications, Telco capabilities
statistics and news. Blogs for developer Telecom Italia
assistance and discussion
Network IT
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21. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
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
Social Networking
relationships between SDK users
- creation
- publishing - SDK download
- sharing
Service Sharing Portal
Developers can create, publish
and share their applications
Service Rating
- usage
Community participants can - feedback
provide feedback on the apps - Community Join
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22. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
“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.
Telecom Italia Orchestrable Widgets
The Editor is a Web application. The
Messaging
components are widgets. Widget
Call Ctrl
Widget
Other TI
Widget
3rd party
Widgets
The metaphor used by the Web based
editor make the component independent Messaging Call Ctrl ...
from the execution environment Telco Capabilities
The application are executes client side
in a widget engine. Telecom Italia
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23. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
SDP for 3rd party access
Different models with different SOA principles
characteristic in term of performances, “Service” feature separation,
policy management, numbers and kind of reusability, abstraction, …
users, AAA, … require a flexible and
future-proof implementation solution Open
Collaborative
Service Prosumer
Model
Model
Web2.0 ISP
Open Service Prosumer
Collaborative Model
Model 3rd party ecosistem TI ecosystem
Web2.0 ISP MVNO, OLO,
Messaging, Presence, Billing, Messaging, Presence, Billing, Messaging, Presence, Billing,
Location, …. Location, …. Location, CC, …
Web2.0 ISP
3rd party ecosistem TI ecosystem
Web2.0 ISP MVNO, OLO,
Messaging, Presence, Billing,
Location, ….
Messaging, Presence, Billing,
Location, ….
Messaging, Presence, Billing,
Location, CC, …
SDP
Capability
Capability
Capability
Network
Network
Network
solution1 solution2 solution3
Network/IT
Network/IT
infrastructure
infrastructure
Vertical approach Horizontal approach
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24. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
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.
“an SDP is not a product, but rather a bundle
SDP are hence system integration solution of products, that needs to be integrated into
the operators network and IT infrastructure.”
based on best-of-breed products Source: Moriana, Service Delivery Platforms
according to specific operator project And Telecom Web Services
specification. “no Single Vendor Can Do It All”
Source: Forrester, Strategies to Own the Service
Delivery Platform Market
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25. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Benchmarking between SDP implementation models
A services proposition, which nevertheless
offers products rather than pure custom-
Pure product build. The supplier provides an architectural
offering, where the blueprint, but gives the customer a choice
supplier offers a when it comes to populating the architecture
total with products, which are then customised
packaged solution and integrated
containing all the
components.
Operators
have such a complex
infrastructure that it
is very difficult to
use packaged
products. A pure services
Source: Ovum, Service Delivery Platform Report offering, where the
supplier builds an
SDP from scratch,
√
As SDP framework, but with a greater tailored to the needs
packaged element and less choice of
of each individual
products to speed up deployment customer
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26. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
SDP for 3rd party access: core functionalities
Abstraction and virtualization according to SOA approach
Service Reuse of existing functionalities
Standard interface between 3rd parties and Telco Capabilities (Web
Oriented Services, REST or network protocol)
Identity management: user profile and identity protection, network and
Security, Policy external identity mapping
and SLA Authentication, authorization and access control through policy
management.
Management
Service contract control and management
Scalable and modular approach
Composition Plug-in approach to add new capability to reuse the framework
and Composite capabilities can be created by composing or orchestrating
modularization basic capabilities
Different charging module depending on the service scenario and the
Charging partner business relationship
Flexibility in capabilities usage accounting
Accounting Multichannel integration with BSS
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27. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
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.
Service Content
Prosumer MVNO
Provider Provider
Service Exposure
Telecom Italia
Network IT
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28. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Service Exposure functional architecture
Security / Firewalling
Telco Protocol Interface IT / WS Protocol Interface Policy /
SLA
Third Party Interface Mgmt
Policy & SLA
Accounting Id&AA Management Monitor / Audit
Enforcement Partner
Runtime Shared Function Rel. Mgmt
Service Orchestration Resource Virtualization and Service Abstraction Management
Shared
Mediation Layer Capability
Network Protocol Adpatation and Telco Gateway
Service Exposure
Network IT
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29. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Single point of 3rd party access management
Service Provider Content Provider Prosumer MVNO
Provision.
Presence
Message
Location
SMPP
MM7
ISC
….
….
Security / Firewalling
Telco Protocol Interface IT / WS Protocol Interface
Management
Third Party Interface Shared
Capability
Runtime Shared Function
Mediation Layer
Network Protocol Adpatation and Telco Gateway
Service Exposure
Network IT
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30. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Single point of 3rd party access management
Service Provider Content Provider Prosumer MVNO
Capability
Capability
Capability
Security / Firewalling
Telco Protocol Interface IT / WS Protocol Interface
Management
Single point of Third Party Interface
Single point of access to telco capabilities
access to telco capabilities Shared
Capability
Runtime Shared Capability
Customer’s unified view of the Telco capabilities
Customer’s unified view of the Telco capabilities
Mediation Capability
Network Protocol Adpatation and Telco Gateway
Service Exposure
Network IT
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31. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Single point of 3rd party access management
Service Provider Content Provider Prosumer MVNO
Single point of partner management
Single point of partner management
Telecom Italia unified view of the
Telecom Italia unified view of the
Capability
Capability
Capability
Customer
Customer
Security / Firewalling
Telco Protocol Interface IT / WS Protocol Interface
Management
Third Party Interface Shared
Capability
Runtime Shared Function
Mediation Layer
Network Protocol Adpatation and Telco Gateway
Service Exposure
Network IT
30
32. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Single point of 3rd party access management
Service Provider Content Provider Prosumer MVNO
Capability
Security / Firewalling
Telco Protocol Interface IT / WS Protocol Interface
Management
Single point of exposed capability management
Single point of exposed capability management
Third Party Interface Shared
Capability
Runtime Shared Capability
Telecom Italia unified view of the exposed Services
Telecom Italia unified view of the exposed Services
Mediation Capability
Network Protocol Adpatation and Telco Gateway
Service Exposure
Network IT
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33. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Service Exposure: products and components SOA Governance Domain
SOA Governance Domain
HP Systinet2
Firewall/VPN Service
Checkpoint FW - VPN Reg TSE Admin
Layer Mgmt
SIP, SMPP, MM7, … HTTPS/SOAP Partner
Rep Policy Mgmt
Load Balacing Mgmt
Layer CISCO 6504 (LB – SW)
HTTPS/SOAP
Data Layer Id&A Mgmt
HP SOAM Broker Mgmt Layer
SLO Monitoring Message Inspection Layer
WSM Auditing Logging
Usage
AA PEP Oracle
Layer Limitation RAC HP UUIS
HTTPS/SOAP ALSB HP
A&A SGF
IMS I/F ,
SMPP, MM7, …
Oracle AquaLogic Service Bus 2.6
Protocol Message/Auth Oracle Session
Switching Mappping RAC UUIS Manager
Mediation Composition
Transformatio
Routing Radius
Layer n Adapter
HTTPS/SOAP
Account.
Oracle
RAC TSE Cache Module
Oracle WLNG 3.0 e Legacy Other Adm
WS IMS Portal
WS 2G WS … Transparent HP
TELCO (WLSS 3.0) Proxy
WS Oracle IUM
Service Business Network Protocol
RAC Federation
Gateway Policies Protection Adaptation WLNG 3.0 Manager
Layer
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34. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
SDP and Monetization Needs
Monetization Needs
Reuse
Subscribers need to be
Re-use across the service delivery
tracked, charged for service
environment through modular web
services design usage
3rd Parties (content and
Exposure
capability provider) need to
be reimbursed for providing
Open-up service delivery
capabilities, technologies,
environments to third parties and
innovative business models
service building-block
3rd Parties (ASP, ISP, MVNO)
Framework need to get revenues from
the subscriber for the end
Manage Lifecycle of services user services
spanning network and IT domain
with SOA techniques Operator needs to manage
monetization, get reimbursed
for infrastructure, services
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35. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Management of Telco 2.0 Partner Networks
Content Billing Customers
Provider
Billing-on-
€ behalf-of
Capability €
Provider
Rev Share operator
Operator
€ Billing
€
€ €
Application
Rev Share App
Provider
Developer
Application
Developer Customers
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36. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
Towards Long Tail service revenues
corrispondente
Market share
Service Exposure
Mission Critical Services
Situational Services
Opening to 3rd party service revenues
Numero di servizi
Traditional
Traditional Collaborative Open
Collaborative Open Service Prosumer
Service Prosumer
Model Model Model
Model Model Model
Performance, reliability, Best Effort
QoS, ...
Service Life-Cycle Rapid development
In house – specific skill Communities – no specific skill
35
37. GRUPPO TELECOM ITALIA
| Gianni CANAL
Oracle Open World 2008 | Network
Opening Communication Networks to Third-Party Service Revenues
“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)
Thanks!
gianni.canal@telecomitalia.it
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