Walking the 3G tightrope in India

Introduction
India is now poised for the next technological leap with the planned rollout of 3G services by early next year. The auction of the 3G spectrum by the government recently concluded in May, 2010 after 34 days and 183 rounds of intense bidding by nine private operators for 22 circles. The auctions ended after hectic bidding wars with no single operator winning the high speed 3G spectrum in all 22 circles. The three biggest carriers of India namely Bharti Airtel, Reliance Communication and Vodafone managed to bag 13 circles each.
While the 3G spectrum auction was a bonanza for the Indian Government which netted Rs. 66000 crores, the Indian carriers had to pay a steep price for the 3G spectrum artificially inflated by the intense bidding over the 34 days this year. The question that will be foremost in the minds of all the Indian operators is how to recover the cost of the expensive 3G spectrum in the shortest possible time as they plan the rollout of the 3G services. In other words the operators in India will have to walk the 3G tightrope over the next couple of years.
Navigating in the 3G domain
This article looks at some techniques that can be adopted by the Service Providers to quickly recoup the 3G spectrum costs. The 3G rollout will involve network upgrades to access, core and backhaul networks in order to meet the demands of the newer 3G services. The distinguishing and alluring feature of 3G, governed by the IMT-2000, is the great increase in data speeds. 3G networks allow download speeds of 2Mbps for a stationary user and up to 384 Kbps for a mobile user enabling Service Providers to come up with a slew of exciting new services. Such high network speeds allow for innovative services spanning voice, data and video.
A look at some of the techniques that can be adopted by Operators to generate a healthy revenue from 3G
Incentivizing for traffic growth:
a) Smartphones
A recent report by Ericsson indicated that mobile data traffic globally grew 280% during each of the last two years with the forecast of doubling annually over the next five years. This explosion in mobile data traffic in countries like US, Europe and Japan is largely due to the entry of smartphones like the IPhone, Nexus One or Droid with their numerous data hungry applications. A compelling strategy for the carriers is to have a voice and data plan in the network, for which a smartphone like the ones above, are provided at a throw away price. This will be a major incentive for the subscribers to download high speed, data hungry applications. The operators should avoid the flat-rate pricing offered in some networks in the US and instead have price tiered service based on usage.
b) 3G dongles
Another strategy on the same lines is to subsidize 3G dongles for enterprises. As before, the CSPs should concentrate on the revenue arising out of usage of the dongles as opposed to making any margins on the dongles themselves. Now with the entry of the iPad and other competing tablet computers there is bound to be significant growth in data traffic.
c) App Stores:
What makes 3G service so attractive is the high speed coupled with the inherent mobility. The CSPs have to take advantage of this fact and provide compelling high data applications which subscribers can download and use through App Stores. The App Stores should include innovative applications spanning location based services, video download services and mobile commerce.
3G network design considerations
a) UMTS RF design
The Service Providers will have to devise their RF design strategy based on whether the 3G deployment is Greenfield or Brownfield in which the 3G network will be co-located with existing 2G radio access systems. The UMTS RF design and planning should take into consideration the increased capacity requirements and traffic growth projections for the 3G network. The RF design considerations should be based on sound market research and its goals should be to maximize coverage, to provide sufficient capacity, optimized link budgets, acceptable QoS while minimizing Opex and Capex. The Service Providers will have to take appropriate steps if spectrum re-farming from 2G to 3G is considered. In this situation the Operator must ensure that the transition is transparent as possible. Also the Operators should introduce dual –mode handsets that will allow the subscribers to seamlessly switch between 2G and 3G networks and vice-versa where 3G services are co-located with legacy 2G networks.
b) Core Network design considerations
In parallel with the design of the UMTS RF access, planning and design should also be taken for the Core network. The projected increase in subscriber on a monthly basis, the expected increase in voice traffic and the potentiality of explosive growth in data traffic should be given due consideration. All these factors should be taken into consideration while dimensioning the Core 3G network. The traffic handling capacities of Network Elements like the MSCs, HLRs, SCPs, SMSCs, SGSNs and the transmission systems like High Speed Links (HSLs) /Low Speed Links (LSL) should be dimensioned based on voice and data traffic projections. Based on experience of existing 3G networks in the world it would make better sense to slightly over-dimension the network than to face potential outages because of shortage of network resources. The Operators have to accurately anticipate traffic growth, increase reliability of the network and plan for the eventual migration to an all-IP network.
c) Mobile Data Offload
The tremendous growth of mobile data traffic in countries that have already deployed 3G like US, Japan resulted in carriers there having to offload some of the data traffic to Wi-Fi networks and femtocells in order to reduce the burden on the network. Indian Service providers should plan their network with data offload as a possible eventuality.
Prudent Technology choices
As the Network Providers plan their growth of their network to support 3G technology they should also look at some of newer technologies that can help in reduction of the Service Provider’s Capex and Opex. Two technologies with great potential are cloud computing and analytics. By judiciously migrating some of their applications on a public cloud Carriers can reduce their capital expenditure.
Lastly CSPs can look at how data mining and analytics of their existing software systems can be used for identifying areas which will improve customer retention and reduce customer churn. Analytics provide a wealth of information on customer behavior which can then be strategized to increase revenue
Conclusion
These are truly exciting times for the India Telecom. Coupled with the promise of the advanced technologies like the 3G are also associated challenges and opportunities that are unique to those technologies. CSPs that plan ahead and execute on their strategies are bound to emerge as true winners in the years to come.
Tinniam V. Ganesh

The "Internet of things"

Published in The Hindu, Sep 22,2010 - http://bit.ly/9Jlwx5 - Tinniam V Ganesh
We are progressively moving towards a more connected world, using a variety of devices to connect to each other and to the Net. We are connected to the network through the mundane telephone, mobile phone, desktop, laptop or iPads. We use the devices for sending, receiving, communicating or for our entertainment. In 2005, the International Telecommunications Standardisation Sector (ITU-T), which coordinates standards for telecommunications on behalf of the International Telecommunication Union, came up with a seminal report, “The Internet of Things.” The report visualises a highly interconnected world made of tiny passive or intelligent devices that connect to large databases and to the “network of networks” or the Internet.

This ‘Internet of Things' or M2M (machine-to-machine) network adds another dimension to the existing notions of networks. It envisages an anytime, anywhere, anyone, anything network bringing about a complete ubiquity to computing. In Mark Weiser's classic words, “the most profound technologies are those that disappear and weave themselves into the fabric of everyday life until they are indistinguishable from it”. This will result in the metamorphosis of the network from a dumb pipe to intelligence at the edges. Embedded intelligence in the things themselves will further enhance the power of the network.

The portents of this highly revolutionary technology are already visible. The devices in this M2M network will be made up of passive elements, sensors and actuators that communicate with the network. Soon everyday articles from tyres to toasters will have these intelligent devices embedded in them.

RFID tags

Radio Frequency Identification (RFID) was the early and pivotal enabler of this technology, with a tiny tag responding in the presence of a receiver which emits a signal. Retailers keep track of the goods going out of warehouses to their stores with this technology.

In a typical scenario one can imagine a retail store in which all items are RFID tagged. A shopping cart fitted with a receiver can automatically track all items placed in the cart for immediate payment and check-out. Another interesting application is in the payment of highway tolls. Similarly, plans are already afoot for embedding intelligent devices in the tyres of automobiles. The devices will be used for measuring the tyre pressure, speed etc., and warn the drivers of low pressure or tyre wear and tear. The devices will send data to the network, which can be processed.

This technology is also well suited for insurance companies which can give discounts to safe drivers based on the data sent by these sensors. Other promising applications include an implantable device capable of remote monitoring of patients with heart problems. It can warn the physician when it detects an irregularity in the patient's heart rhythm.

The ‘Internet of Things' can also play an important role in monitoring the stress and the load on bridges and forewarn when the stress is too great and a collapse is imminent. In mines, the sensors can send real-time info on the toxicity of the air, the structural strength of the walls or the possibility of flooding.

The day is not far off when devices will connect to the Internet to monitor and control the environment, improving our daily lives and warning us of impending hazards.

Cloud, analytics key tools for today's telcos

Published in Telecom Asia Aug 20, 2010 – http://bit.ly/dxKbsR

Operators facing dwindling revenue from wireline subscribers, fierce tariff wars and exploding mobile data traffic are continually being pressured to do more for less. Spending on infrastructure is increasing as they look to provide better service within slender budgets.
In these tough times telcos have to devise new and innovative strategies and make judicious technology choices. Two promising technologies, cloud computing and analytics, are shaping up as among the best choices to make.
Cloud architecture does away with the worry of planning the computing resources needed, the real estate, the costs of the acquiring them and thoughts of its obsolescence. It allows the CSPs to purchase processing power, platforms and databases almost as a utility like electricity or water.
Cloud consumers only pay for what they use. The magic of this promising technology is the elasticity that the cloud provides – it expands to accommodate increasing demands and contracts when the demand drops.
The cloud architectures of Amazon, Google and Microsoft – currently the three biggest cloud providers – vary widely in their capabilities and features. These strengths and weaknesses should be taken into account while planning a cloud system. Each is best suited for only a certain class of applications unique to each individual cloud provider.
On one end of the spectrum Amazon’s EC2 (Elastic Compute Cloud) provides a virtual machine and a wealth of associated tools for storage and notifications. But the trade-off for increased flexibility is that users must take responsibility for designing resiliency into their systems.
On the other end is Google’s App Engine, a highly scalable cloud architecture that handles failures but is a lot more restrictive. Microsoft’s Azure is based on the .NET architecture and in terms of flexibility and features lies between these two.
When implementing such architecture, an organization should take a long hard look its computing software inventory to decide which applications are worthy of migrating to the cloud. The best candidates are processing intensive in-house applications that deliver standardized functionality and interface, and whose software architecture is made up of loosely coupled communicating systems.
Applications that deal with sensitive data should be retained within the organization’s internal computing infrastructure, because security is currently the most glaring issue with the cloud. Cloud providers do provide various levels of security to users, but this is an area in keen need of standardization.
But if the CSP decides to build components of an OSS system – rather than buying a pre-packaged system – it makes good business sense to develop for the cloud.
A cloud-based application must have a few essential properties. First, it is preferable if the application was designed on SOA principles. Second, it should be loosely coupled. And lastly, it needs to be an application that can be scaled rapidly up or down based on the varying demands.
The other question is which legacy systems can be migrated. If the OSS/BSS systems are based on commercial off-the-shelf systems these can be excluded, but an offline bill processing system, for example, is typically a good candidate for migration.
Mining wisdom from data
The cloud can serve as the perfect companion for another increasingly vital operational practice – data analytics. The cloud is capable of modeling large amounts of data, and running models to process and analyze this data. It is possible to run thousands of simultaneous instances on the cloud and mine for business intelligence in the oceans of telecom data operators generate.
Today’s CSP maintains software systems generating all kinds of customer data, covering areas ranging from billing and order management to POS, VAS and provisioning. But perhaps the largest and richest vein of subscriber information is the call detail records database.
All this data is worthless, though, if it cannot be mined and analyzed. Formal data mining and data analytics tools can be used to identify patterns and trends that will allow operators to make strategic, knowledge-driven decisions.
Analytics involves many complex areas like predictive analytics, neural nets, decision trees and classification. Some of the approaches used in data analytics include prediction, deviation detection, degree of influence and classification.
With the intelligence that comes through analytics it is possible to determine customer buying patterns, identify causes for churn and develop strategies to promote loyalty. Call patterns based on demography or time of day will enable the CSPs to create innovative tariff schemes.
Determining the relations and buying patterns of users will provide opportunities for up-selling and cross-selling. The ability to identify marked deviation in customer behavior patterns help the CSP in deciding ahead of time whether this trend is a warning bell or an opportunity waiting to be tapped.

Learning to innovate

Mankind’s progress is measured by the depth of creativity and the number of innovations in every period. The human race has an irresistible urge to make things smarter, faster, and better. While modern technological marvels like the airplane, the laptop or an LCD TV continue to amaze us, people in these industries will most probably concur that most of the developments that have happened in these domains have been in small increments over long periods of time. Barring a few breakthrough discoveries like calculus by Isaac Newton or the Theory of General Relativity by Albert Einstein most of the innovations that have happened have been incremental and are the result of careful analysis, sudden insight after several days of thoughtful deliberation, or sound judgment.

Creativity need not be sensational nor even path breaking. There is neither a silver bullet for innovation nor a magic potion to inspire creativity. Creative ideas can just be incremental. Not all ideas happen in the spur of the moment or are serendipitous.
Innovation and creativity can be deliberate and well thought-out. However there are certain e principles of innovation that keep repeating time and time again. Almost all innovations are based on the constant need for simplicity, reliability, being disaster proof, extendibility or safety. “Invention is the child of Necessity” and innovations happen when there is strong need for it. This article explores some of the eternal principles behind the various innovations of the ages. It looks at the motivation and the thought processes behind those inventions. Various common day-to-day gadgets, processes or devices are explored to determine the principles behind the particular improvement or advancement.

Some of the principles behind mankind’s creativity are looked at below in greater detail

a. Simplicity
Several innovations are based on the principle of simplicity. Smaller, simpler, faster has been the driver of several innovations. .For e.g. RISC (Reduced Instruction Set Computer) design strategy is based on the insight that simplified instructions can provide higher performance. The philosophy behind this is that simplicity enables much faster execution of each instruction as opposed to CISC (Complex Instruction Set Computer). In favor of simplicity, are regular English alphabet text based protocols like HTTP, SIP as opposed to the more esoteric telecommunication or data communication protocols which send and receive messages in binary 1’s & 0’s and have complicated construction rules. The tradeoff for simplicity, however, is the consequent increase in bandwidth or the increase in the communication pipe capacity. To counter the increase in bandwidth there are several innovative techniques to compress the text message. These compression algorithms compress the text messages before sending them on the communication pipe. These compressed messages, on reception are uncompressed to obtain the original message.

b. Safety
Some incremental changes result from the need to increase safety. It is based on the principle of disaster-proofing the devices or to provide safety to us human beings and protect us from freak accidents. For e.g. the safety pin is an incremental improvement over the regular pin. The electrical fuse and the safety valve in a pressure cooker are two such innovative improvements that are based on the principle of safety. The electrical fuse is an interesting innovation and is based on the principle that when there is an abnormal surge of current in the fuse wire, the resulting heat produced will melt the wire, thus breaking the electrical connection. This protects the gadget and the more expensive internal circuits from serious damage. Also the safety valve in the pressure cooker will give way if the pressure inside the cooker goes beyond safety limits. This protects the cooker from bursting due to excess pressure and causing damage to humans and property.

c. Judgment:
Some innovations are based on the principle of sound engineering judgment and to large extent common sense. One such innovation is the LRU technique of an Operating System like Windows or UNIX. This technique or algorithm helps the computer in deciding which specific “page” or section of a large program in the computer’s Random Access Memory (RAM) should be moved out or swapped to the disk (only a limited number of pages can be in the RAM at a time). The computer makes this decision based on the “Least recently Used” (LRU) technique. Obviously, amongst many pages in the computer’s RAM, the page that has been used the least, in the recent past, can be moved out to the disk under the assumption that it less likely to be used in the future.
Another wonderful innovation, based on sound engineering judgment, is Huffman’s method of coding. This technique is used in computer communication for the most efficient method of encoding the English text. It is based on a simple rule that more frequently occurring letters in the text should be assigned a smaller number of binary digits (0 or 1) or bits and less frequently occurring letters be assigned a larger number of binary digits. Since the letter ‘e’ occurs most frequently in the English language it is assigned the least number of binary digits and the letter ‘z’ number of binary digits. The resulting binary string thus obtained is most efficient and optimal. This technique clearly shows the ingenuity in the algorithm.

d. Paradigm Shift
The light bulb invented by Thomas Alva Edison was truly a path breaking, paradigm shifting invention in the age of gas-filled lights. Similarly, the move from vacuum-tube based electronics for e.g. the diode; triode to the more compact, smaller & less power consuming semi-conductor devices was a major paradigm shift in the realm of electronics. So also the move from cassette tapes to compact discs (CDs) and from VHS video tapes to the now compact DVDs were game changing innovations. Similarly the move from film-based cameras to the now digital cameras is a huge paradigm shift. Innovations which are based on a paradigm different from an existing philosophy truly require an out-of-box or a lateral thinking coupled with great perceptiveness and knowledge of the field.



e. Logical induction/deduction
In the mid 19th century many great and powerful inventions/ discoveries were made by giants like Faraday, Lenz, Maxwell, and Fleming in the field of Electro Magnetism. One the finding was that, there was a production of a voltage, and hence a current, across a conductor situated in a changing magnetic field. This consequently led to the invention of the Electro-mechanical Generator for generating electricity. Conversely, it was found that if a current carrying conductor is located in an external magnetic field perpendicular to the conductor, the conductor experiences a force perpendicular to itself and to the external magnetic field. This principle, which results in a force on the conductor, promptly led to the invention of the still prevalent Electro-mechanical Motor.

f. Cause-Effect –Cause
There are many inventions which are based on the cause-effect-cause principle. In this category of innovations the cause & effect are interchanged in different situations to handle different problems. For e.g. thermal energy may be converted to electrical energy as in the case of a steam turbine. Or conversely electrical energy may be converted to heat for e.g. in the electric cooker. Similarly there are inventions, where light energy and electrical energy are transformed based on the specific need. A recent investigation into the possibility of a remote power outlet led the author on an interesting journey. Since electrical energy can be converted to microwaves (microwave cooker) the author wondered whether the reverse is possible i.e. could microwaves be transmitted across space and at the receiving end be converted to electricity. An internet search showed that this is very much possible and has been thought of more than a decade back. This is known as Microwave Power Transmission (MPT). However practical applications of this are not possible because of the radiation hazards of microwaves. However, MPT is used in outer space.

g. Feedback principle
An excellent example of this is the room Air Conditioner (A/C). The room air-conditioner maintains a constant temperature. If there is an increase in room temperature it increases the cooling and if there is a drop in temperature it decreases the rate of cooling. There are many day to day inventions that are based on the principle of feedback where the result is fed back and manipulated internally such that resultant output is maintained at a constant level.

h. Insight & Ingenuity
Vacuum tubes and the semi-conductor transistor can be made to toggle between 2 distinct states (on & off). This property and the insight and knowledge of binary arithmetic soon led to utilization of electronic devices for binary arithmetic. This soon led to the development of electronic circuits for simple addition, subtraction, and multiplication etc of binary numbers. Invention after invention and innovation after innovation led to development and metamorphosis of the now ubiquitous Personal Computer.



Conclusion
In conclusion innovations can be incremental. There are numerous examples of human cleverness and innovation all around us. One just needs to notice and pretty soon we begin to appreciate human ingenuity. We need to reflect on the thought processes behind each incremental innovation which have made our lives more pleasant and convenient. Hopefully, as we become more aware, someday, some of us may have a defining “eureka” moment.

Monetizing Mobile Data Traffic

Published in Telecom Asia - May 31, 2010 - Monetizing mobile data traffic
Published in Telecoms Europe - June 1,2010 - Blood from a phone - Squeezing value from mobile data

Abstract: In the last couple of years mobile data traffic has seen explosive growth and has in fact crossed the voice traffic. CSPs have been forced to upgrade their access, core and backhaul networks to be able to handle the increased demands on the network. Despite the heavy growth in mobile data traffic the corresponding ARPU for mobile data traffic has only been marginal. So what is the way out for the Service Providers? This article looks at some of the avenues through which CSPs can increase their revenue in the face of increasing traffic demands by converting the growth in mobile traffic from a challenge to an opportunity.

Growth in Mobile Data Traffic
Mobile data traffic is exploding in carrier networks. In a recent report by Ericsson the findings show that mobile data traffic globally grew 280% during each of the last two years, and is forecast to double annually over the next five years. This exponential growth in data traffic has been fueled by the entry of smartphones, laptops with dongles and other devices hungry for bandwidth. The advent of smartphones like iPhone, NexusOne and Droid has resulted in several data hungry applications squeezing the available bandwidth of carriers. Smartphones are here to stay. Social networking sites on mobile devices and mobile broadband-based PCs also now account for a large percentage of mobile data traffic. In fact it is rumored that a major carrier’s network started to choke as a result of these bandwidth hungry smartphones.

Marginal ARPU issue
Nowadays professionals everywhere use their laptops with dongles for checking their emails, browsing or to perform high bandwidth downloads. However the ARPU from data traffic has been relatively flat or at most marginal. In fact one report claims that despite the phenomenal growth in data traffic the ARPU from data traffic has not grown proportionately. In fact the ARPU from voice traffic continues to exceed that of the ARPU of data traffic. This clearly defies logic. On the one hand there is enormous growth of data traffic but there are no corresponding returns for the Service Provider. To add to this situation there are now new devices like the iPad and its soon-to-be competitors which will start its demands on the wireless network. One of the reasons why the growth in ARPU for data traffic is not proportional to the data traffic growth is because of data schemes like “all-you-can- eat” or flat-rate charging. Such charging schemes result in excessive usage with little or no consequent increase in revenue generation. To make matters worse Over the Top (OTT) video service and other third party services place a heavy data load on the networks while siphoning away the revenue. Also the increased demands on the network necessitate the need to upgrade the access, core and backhaul networks to handle the increasing data traffic loads. The CSPs are forced to upgrade to LTE/WiMAX to improve the access and move their backhaul to the Evolved Packet Core (EPC). Hence the CSPs are faced with the situation where they do “more for less”. While they have to increase their CAPEX there is no corresponding ROI for the new hardware. This article looks at some of the possible ways the CSPs can monetize this growth in traffic.

Avenues for CSPs
There are four ways for turning this bandwidth crunch into an opportunity
1) Policy Based Traffic
The first technique is to study the usage patterns of the subscribers. The CSPs need to identify the applications that are most frequently used and have high bandwidth demands. The CSPs may be required to perform Deep Packet Inspection (DPI) to determine the kind of traffic in the network. The CSPs can then apply premium charging for these types of traffic. The CSPs need to have Policy Servers that apply different policies based on the type of traffic (data, video etc). The Service Providers can charge a premium for specific kinds of traffic usage based on the policies set. However the downside of this approach is that it may not go down well with the subscribers who have been using the flat rate charging

2) Mobile Ads
The second method which carriers can use is through mobile ads. This method avoids increasing the charge on customers. The carriers can maintain a fixed charge for the subscriber or in other words provide a subsidy to the subscriber by having the subscriber receive commercial advertisements, The Service Provider s can have a business model with the commercial provider and receive a small fee for carrying the commercial to the mobile. The mobile ads should be non-intrusive and should be non-distracting to the user. They can be displayed at the top or the bottom of the mobile phone for example when the subscriber is looking through his/her contact list. Alternatively if the subscriber is using a data intensive application the user may be required to watch a 30 sec commercial prior to the start of the video clip.

3) Revenue sharing with Content Owners
The third technique for the CSPs is to enter into an innovative business model with the content provider or content owner. Some lessons can be learnt by the business model of successful enterprises like Google, Yahoo, eBay or PayPal. These organizations receive a small fee for facilitating a particular service for example hosting an ad on the web page or facilitating a payment. So also the carriers should enter into a business model with the content owners where a small fee is received by the Service Providers for providing the network infrastructure for the music or video service. This would be akin to paying a toll for using a well maintained highway. So also the carriers should levy a small toll for the usage of it network highway.

4) App Stores
The carriers can also maintain app stores which besides providing downloadable applications should also provide for downloadable content for e.g. Music or video. So the carriers can generate revenue both from providing the content and also from providing the infrastructure for transport of the content to the mobile.

Conclusion: Some avenues for revenue generation in these times where the growth of data traffic is increasing at a tremendous pace is for the Service Providers to
1) Have the ability to differentiate traffic and use a policy manager and charge based on the data being transported. Provide a personalized service to individual users based on traffic types and charge appropriately
2) Subsidize usage for the subscriber through the delivery of mobile ads and enter into revenue share with the organization for whom the commercials are being provided
3) Levy a small charge to the content owners for the delivery of their content to the mobile users
4) Creatively use app stores for providing apps, music, video and other differentiated content.

The evolutionary road for the Indian Telecom Network

Published in Voice & Data Apr 14, 2010

Abstract: : In this era of technological inventions, with the plethora of technologies, platforms, paradigms, how should the India telecom network evolve? The evolutionary path for the telecom network clearly should be one that ensures both customer retention and growth while at the same time be also capable of handling the increasing demands on the network .The article below looks at some of the technologies that make the most sense in the current technological scenario

The wireless tele-density in India has now reached 48% and is showing no signs of slowing down. The number of wireless users will only go up as the penetration moves farther into the rural hinterland. In these times Communication Service Providers (CSPs) are faced with a multitude of different competing technologies, frameworks and paradigms. On the telecom network side there is the 2G, 2.5G, 3G & 4G. To add to the confusion there is a lot of buzz around Cloud technology, Virtualization, SaaS, femtocells etc., to name a few. With the juggernaut of technological development proceeding at a relentless pace Senior Management in Telcos, Service Providers the world over are faced with a bewildering choice of technology to choose from while trying to maintain the spending at sustainable levels. For a developing economy like India the path forward for Telcos and CSP is to gradually evolve from the current 2.5G service to the faster 3G services without trying to rush to 4G. The focus of CSPs and Operators should be in customer retention and maintaining customer loyalty. The drive should be in increasing the customer base by providing superior customer experience rather than jumping onto the 4G bandwagon. 4G technology, for example LTE and WiMAX, make perfect sense in countries like US or Japan where smart phones are within the reach of a larger set of the populace. This is primarily due to popularity and affordability of these smart phones in countries like the US. In India smartphones, when they come, will be the sole preserve of high flying executives and the urban elite. The larger population in India would tend to use regular mobile phones for VAS services like mobile payment, e-ticketing rather than downloading video or watching live TV. In US, it is rumored, that iPhones with their data hungry applications almost brought a major network to its knees. Hence, in countries like US, it makes perfect sense for Network Providers to upgrade their network infrastructure to handle the increasing demand for data hungry applications. The upgradation to LTE or WiMAX would be a logical in countries like US. In our nation, with the growth in the number of subscribers, the thrust of Service Providers should be to promote customer loyalty by offering differentiated Value Added Service (VAS) service. The CSPs should try to increase the network coverage so that the frustration of lost or dropped calls is minimal and focus on providing superior customer experience. The Service Providers should try to attract new users by offering an enhanced customer experience through special Value Added Services (VAS). This becomes all the more important with the impending move to Mobile Number Portability (MNP). Once MNP is in the network many subscribers will switch to Service Providers who offer better services and have more reliable network coverage.
Another technique by which Service Providers can attract and retain customers is through the creation of App Stores. In US, app stores for iPhone have spawned an entire industry. Mobile Apps from app stores besides providing entertainment and differentiation can also be a very good money spinner. While the economy continues to flounder the world over the Service Providers should try to reduce their Capacity Expenditure (Capex) and their Operating Expenditure (Opex) through the adoption of Software-as – Service (SaaS) for their OSS/BSS systems. Cloud technology, besides reducing the Total Cost of Ownership (TCO) for Network Providers can be quite economical in the long run. It is quite possible that prior to migrating to the Cloud all aspects of security should be thoroughly investigated by the Network Providers and critical decisions as to which areas of their OSS/BSS they would like to migrate to the Cloud. While a move to leapfrog to 4G from 2G may not be required, it is imperative that with the entry of smartphones like iPhone 3GS, Nexus One and Droid into India the CSPs should be in a position to handle increasing bandwidth requirements. Some techniques to handle the issue of data hungry smartphones are to offload data traffic to Wi-Fi networks or femtocells. Besides, professionals these days use dongles with their laptops to check email, browse and download documents. All these put a strain on the network and offloading data traffic to femtocells & Wi-Fi have been the chosen as the solution by leading Network Providers in the US.
Conclusion
So the road to gradual evolution of the network for the Network Operators, Service Providers are
1. Evolve to 3G Services from 2G/2.5G.
2. Create app stores to promote customer retention & loyalty and offer differentiated VAS services
3. Improve network coverage uniformly and enhance the customer experience through specialized App stores
4. Judiciously migrate some of the OSS/BSS functionality to the cloud or use SaaS after investigating the applications of the enterprise that can move to the cloud
5. Offload data traffic to Wi-Fi networks or femtocells.
Tinniam V. Ganesh
PRNMF428984S