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Archive for the ‘Telecom’ Category

4gI would like to share few things around LTE development in Sweden. First of all 4G has been adopted much faster than 3G. Remember that for the first years after introducing 3G, in most markets, there was hardly any data usage. Contrary to that, just like two years after the launch of LTE in Sweden, we are at the data usage level we were at with 3G at 10 years post-launch. I can clearly say we have already skipped the pre-maturity phase entirely.

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ImageI was reading my emails after a long summer vacation at my office on Tuesday and just realized a pfd attachment; Ericsson goes into data center business to be a stronger ICT player. I think this is a smart move since a lot of Telecom companies are nowadays looking into providing some IT services as well. Being a close partner to Telco players, Ericsson needed to evolve as well and they did it. Ericsson’s Data Center Build and Data Center optimization offering will meet increased demand for cloud-based services as enterprises seek to become increasingly mobile. With this offering, Ericsson enters the market for data centers and strengthens its position as an ICT player.

I liked this news and found it a very important and strategic move. I think the future is bright for evolving and developing companies such as Ericsson.

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One petabyte a day: That’s how much data BMW’s Connected Drive cars will generate by 2017 reckons BMW Group IT infrastructure chief Mario Müller.

I took out this note while listening BMW group’s Cloud presentation at Telecom Cloud Services Summit at Berlin this year. M2M data will need a lot of IT capacity and the data produced by machines will be a real source of revenue. I realized that a lot of Telcos are still confused when it comes to M2M and Cloud business models. Many invested heavily into the infrastructure and getting ready for a big fight against global giants such as Amazon. Well, sure they can differentiate based on their local market demans but I am a bit sceptical to IaaS, except storage, at all.

I realized that when Telcos talk about M2M it was all about providing connectivity and mainly about infrastructure when it comes to the Cloud. None of the CSPs really talked about Big Data yet. I believe enterprises need more than basic connectivity and infrastructure. I think they need a solution, which will help them create business intelligence and value for them. I think big data analytics and ICT business solutions are the future for CSPs.

Around sixty percent of CSPs fear they’ll be bit-pipe providers in the M2M and Cloud market. To avoid this, they must have the ambition to take some more risk and be more innovative. I do not agree at all – as one Telco professional stated on the panel- “telcos are expected to be evolutionary not revolutionary”. Telcos need to better understand the business value of their offers and be more a complete ICT providers, extracting intelligence from the pipe – instead of simply delivering connection from A to B.

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What do you need to be a Cloud provider? You could be a Telco or an IT Reseller. Once you decided that you will provide Cloud services you need these capabilities.

1. A Cloud enabled data center

2. Platforms (app store, SSO, aggregation platform and so on…) to provide cloud

3. Monetize your services

4. Business development capabilities.

I think yet another important questions that you need to answer are;

1. What do we have internally today? (Because a lot of the things listed above can be outsourced as well)

2. Your ability to handle an ecosystem.

3. Your sales channels and capabilities

4. What will make you different? (Easy to do business with, price, quality, or what else…)

5. Applications and Infrastructure is commodity now, so you need to focus on business models and content instead.

Sit and think twice before you make any move towards Cloud. Make a good business case and take meaningful risks. Because the market is still emerging and Cloud is still “nice to have” not “must to have” at the moment.

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Yesterday at Kista sience tower, where is the sillicon valley of Sweden, we had a meeting with a vendor to discuss next generation switching, cloud, M2M and IMS. I think today’s network is quite lagacy and complex. IMS is coming but nothing big will happen in couple of years. Yet another interesting topic was  the interoperability of new network systems with the old, legacy ones up and running at the core today. Cloud and M2M are thightly related to each other and it is really up to a telco to position itself from connection only to solution provider in this journey. Do you have any experience on telco cloud services or IMS, what are your thinking around these topics?

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Mobile operators celebrate! Mobile phone becomes the main device and laptop/netbook – just a larger screen and keyboard!

Future of ICT is all about mobile and mobility. Most of high-end smart-phones -such as Motorola Atrix- will soon be able to work with a docking station that provides them with a large screen and keyboard. This means your smart phone will not be only a phone anymore. That device will be your main device to access your data, applications, connections and content. This puts mobile operators in the center of ICT. Since we can provide devices, connection and the content & applications future is bright for us.

But wait a second, how do you use your mobilephone nowadays? Just for calling, SMS or surfing? What else?

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telecom-cloud-services-summitThis year I am attending the Telecom Cloud Services Summit at Berlin by the end of April. I am working with telecom cloud business nowadays at Tele2 Sweden and this event will be quite an interesting one to meet with telecom experts from all around the world. I personally want to see these topics covered in the summit; Where to start a telco cloud, IaaS or SaaS or UCaaS, What is the business case, In house or partnership model.

I still think some points are not clear in telco cloud. Business case is very tricky and it also restricts you in type of service you provide if you are fix only or mobile only provider. Yet another interesting topic is that, how to provide telco grade IT to SMEs and how to sell it? Are SMEs ready to pay for Telco grade IT or expect to get it for free? I think all of these questions will be answered in the event and then I will write another blog post to review the summit. You can check the aganda of the event from here.

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Global Data Traffic

mb-consumed-per-year

One of the interesting topics that we are discussing a lot nowadays in telecom sector is the shift from voice to data. The graph on the left shows how much data is consumed globally per year and what types of services are filling the capacity up. It is obvious that the world is going mobile and mobile video is becoming more and more important. But how can telcos charge enough for the data?

In traditional telecom world, voice is priced per-minute or per-second because that is reflective of the industry’s cost structure (and billing sophistication) about 100 years. When you had a physical copper connection between points A & B, with a human doing the switching, both capex and opex had fairly logical temporal-based components.

On the other hand, what we see with mobile data is a blend of volume, duration, use-case, location and maybe even congestion levels can be used as the basis for service pricing. As you can see the charging models for voice and data must be somehow different in my point of view. I think we telcos need to be more innovative when it comes to the bsuiness models and pricing with an increasing demand towards data.

What do you think might be a good charging model for telcos then? The fact is that the minute is fundamentally an anchor to the past, when all voice was “telephony” and all telephony was “voice”. The faster we get rid of our duration-centric obsession, the more likely we will be able to profit from The Future of Voice, before others less confined beat the telecoms industry to the punch.

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Since Apple launched the iPad in April 2010, tablets have emerged as the latest “must-have” device for the early adopters, like my self. I have recently read an article which says that Apple had sold a cumulative total of nearly 40 million tablets worldwide and continue to dominate the tablet market. Figure below shows the iPad sales, source Analysis Mason 2011.

I am a teblet believer and very positive to use tablets for business purposes. Businesses thinking in the same way as I do will have a broad range of choice. The launch of Amazon’s Kindle Fire and others represent the first major threat to Apple but a lot of alternatives for consumers and businesses.

By providing businesses and consumers with access to a range of content and apps on tablets, operators can create a new market opportunity and differentiate themselves. In some cases, notably in emerging markets, operators could even provide with own-branded tablets manufactured by white-label vendors as a value-for-money alternative to premium-branded tablets. I believe in order to position themselves as a preferred distribution channel for tablets among consumers, operators should consider: a business model for connectivity bundles with tablets, fully integrate tablets within their existing ecosystem of device and services, push tablets for businesses not only for the consumers. On top of that, I also belive operators should provide shared data allowances between devices and multi-SIM propositions for the end users.

All in all, I am a tablet believer, even for business usage. I have an iPad II 3G + Wifi and I use it for my personal as well as business duties. Once operators find better and flexible business models and bundling strategies, I am sure we will see more and more tablets consumed by businesses.

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