Collaborative Business models are the way forward for the new relation between corporates and customers. The presentation shows that "Integrated Operations (IO)" is the new way of working together, the way where companies bring their assets into a common business operation. The oil & gas industry in Norway has joined under the IO umbrella, but it is applicable to other areas. While Web2.0 has changed the customer/business relationship, most businesses are still running under "historic means". The example of mobile networks is used to show that only collaborative business, where users own their femto cell, will satisfy the capacity requirements of users. A second example from near field communication (NFC) is used to demonstrate how collaborative business works in praxis. The slide set concludes with examples from IBM, Altibox and Apple, who have opened their business to involve the customers and build an ecosystem with other companies.

1. DSL-Partner Customer Seminar - Nov 2010 CWI
Web2.0 and the Future Internet:
The change in business models
and infrastructure
Josef Noll, Mohammad M. R. Chowdhury,
Muhammad Bilal Ahmad, Ayaz Khan Afridi
about:
Josef Noll, Professor on behalf of the
University of Oslo/UNIK Center for Wireless
Chief Technologist, Movation AS Innovation Norway
josef@unik.no CWI Norway (http://cwin.no)
Nov 2010, Josef Noll

2. Collaborative Business in
the Future Internet
! Towards the Future Internet
– Web 2.0 experiences in customer/business relations
! Infrastructures and Services
– A mobile network?
– Capacity needs for wireless operations
! Collaborative business models
– between Corporates and
– between customers and corporates
! Analysis and expectations
– either you collaborate or you vanish
– Examples: IBM, Altibox, Apple
Collaborative Business in Future Internet Nov 2010, Josef Noll 2

3. Web 2.0:
Customer/business relations
! Web 2.0 in business
– Networking, Collaboration,
Public Communities
– Apple: The business
environment & the APs
– Mobile Monday, First Tuesday....
! Prosumers: Producers =
Consumers
– Youtube.com, BBC, ...
– SUN, IBM
Collaborative Business in Future Internet Nov 2010, Josef Noll 3

4. 3rd wave of convergence
• 1. wave: All-IP
– flat world, global business
all-IP
• 2. wave: Telecom - IT -
Broadcast
– from fixed to mobile and
quadruple play
– Telecom = mobile Telco-IT
• 3. wave: Future Mobile
Internet
core
– Collaborative business business
– The business merger Community
Future Internet
Collaboration and cooperation drives developments 4
Innovation Stock Exchange - Sep 2010 - Josef Noll

5. Prepare for collaboration
Interoperability
Built Partner
Open APIs Networks
core
business
Community
Share revenue Future Internet Customer
Involvement
Share knowledge
Collaboration and cooperation drives developments 5
Innovation Stock Exchange - Sep 2010 - Josef Noll

6. Example
Mobile & Fiber = Net!Works
(EU’s new technology platform)
Collaborative Business in Future Internet Nov 2010, Josef Noll 6

7. Future Internet and Internet of Things
Real world statements
duced
007) the world pro ” ! The speed of development
"La st year (2 rs than rice corns nor R&I
isto Tele
ore trans tian Haugli, CEO,
storage on single chip
m 2008
– Han s Chris
"By 2012, iPods ... be capable of holding all
music you will ever hear in your life (or one
year of video)
By 2018 it can hold all videos ever produced”
– Nikesh Arora, EMEA manager, Google source: Gerhard Fettweis, TU Dresden
"The priv
ac
an illusio y you are so fond
n” of is mos
– Scott M tly
c Nealy, S
un Micros
"Now ystems Your mobile phone is the
In so we h
ave representative in the
the mme year roughly digital world
w
– H obile ne e will ha 5.2 Mio m
ans C tw ve 30 o
hristi ork” ...50 bile sub and the gateway to the
an H Mio s
augli
, CEO devi cribers. world of sensors
ces o
, Tele n
nor O
bject
s
2010
Collaborative Business in Future Internet Nov 2010, Josef Noll 7

8. Diverged Traffic & Revenue Growth
Traffic
" From Kilo (103 ) bytes to Tera (1012 ) and Zeta (1021 ) bytes Complexity
" Global ubiquitous Internet-based solution with hyper
Connectivity
" Hundred-fold increase in network flow brought by mass Gap
terminals and mass digital content, and the thousand-fold,
increase in traffic flow on mobile networks
Revenue
" Users are spending more time on the phone & internet Time
" Average household spending on communication falls
" Consumer pay less while getting better value -> they pay
~30% less than 5 years ago Quality
Coverage Capacity
%Map %Map %Map
" Significant growth in traffic while slow in revenue
" User experience at risk
Walled Open
"What%do%we%do%with%a%surging%traffic% Garden Access
#Limit/control%it?
#Turn%it%to%revenue?
#Bring%the%cost%of%it%down?% Relay
Femto
Small
Micro/Pico
Cost reduction is a very critical aspect of the future networks. Macro
Telecom seems to be the only sector delivering price decrease
8 [source: Sharam G Niri, 2010] (adapted)

9. LTE:
Expectation and Real network usage
• Expectation [Motorola 2009]
– 38% of users > 20 Mbit/s
– 32% of users 7...20 Mbit/s
– 30% of users 1.2...7 Mbit/s
70-80% indoor
usage
70-80% indoor usage
70% indoor users means 30% reduction of cell capacity, and only 45% of satisfied users
Collaborative Business in Future Internet Nov 2010, Josef Noll 9

10. LTE:
Expectation and Real network usage
• Expectation [Motorola 2009] Realit
– 38% of users > 20 Mbit/s y16%
– 32% of users 7...20 Mbit/s 17%
– 30% of users 1.2...7 Mbit/s 32%
35%
- no femto
70-80% indoor - indoor usage
usage
70-80% indoor usage
70% indoor users means 30% reduction of cell capacity, and only 45% of satisfied users
Collaborative Business in Future Internet Nov 2010, Josef Noll 9

11. The LTE simulation environment
Signal to Noise ration in download
(SISO, macroscopic fading)
Target sector with 3 indoor femtocells
(including macroscopic fading)
y_pos [m]
Simulation of 7 base stations, each with
120 deg sector antennas
x_pos [m]
Collaborative Business in Future Internet Nov 2010, Josef Noll 10

12. First simulation results
Signal to Noise ration in download ! Networked dimensioned for
(SISO, macroscopic and shadow fading)
~80 Mbit/s
! Worst case:
– indoor users at the edge of the
cells
y_pos [m]
– 20 dB attenuation (into
buildings)
! 20-30% indoor users reduces
aggregated throughput to 40
Mbit/s
x_pos [m]
! 50% indoor users let the
network collapse (aggr.
throughput <15 Mbit/s)
Realistic: >90% indoor users in LTE
Collaborative Business in Future Internet Nov 2010, Josef Noll 11

13. Business perspective of Femtocells CWI
40% market share
Annual Network Costs [$]
total costs
OpEx and CapEx
calculations based on
“free provisioning” of
home base stations
[source: H. Claussen, 2007]
percentage of customers with home-BS
Total network cost reduction more than 70% with user-owned base stations
Nov 2010, Josef Noll 12

14. Business perspective of Femtocells CWI
40% market share
Annual Network Costs [$]
total costs
OpEx and CapEx
calculations based on
“free provisioning” of
home base stations
[source: H. Claussen, 2007]
percentage of customers with home-BS
Total network cost reduction more than 70% with user-owned base stations
Nov 2010, Josef Noll 12

15. Collaborative Business Models
Near Field Communication
(the mobile payment)
Collaborative Business in Future Internet Nov 2010, Josef Noll 13

16. NFC technology and use case
! Based on RFID technology at ! ECMA-340, ISO/IEC 18092 &
13.56 MHz ECMA-352, …standards
! Typical operating distance 10 cm ! Powered and non-self powered
! Compatible with RFID devices
! Data rate today up to 424 kbit/s
! Philips, Sony and Nokia
Collaborative Business in Future Internet Nov 2010, Josef Noll 14

17. NFCIP-2 Interface and protocol
(ISO/IEC 21481)
Proximity Card Vicinity Card
NFC device Reader Reader
Interface
Standards
ECMA-340 ISO/IEC 14443 ISO/IEC 15693
PCD mode VCD mode
(MIFARE, FeliCa) (facility access)
NFC market and applications, 2009 and beyond 28.2.2008, Josef Noll 15

18. NFCIP-2 Interface and protocol
(ISO/IEC 21481)
Proximity Card Vicinity Card
NFC device Reader Reader
Interface
Standards
NO
15693 okay
ECMA-340 ISO/IEC 14443 ISO/IEC 15693
PCD mode VCD mode
(MIFARE, FeliCa) (facility access)
NFC market and applications, 2009 and beyond 28.2.2008, Josef Noll 15

19. Third party business model
• Media,
Content • Banks, Service providers
provider
• Telecom, Corporate, Home
Service Payment
aggregator provider • Service aggregator
• Convenient interfaces
• Ease of use
Identity and
personalisation
provider • Identity and personalisation
Authentication
Customer provider
care
and Access • Convenience
provider
• Trust
16
Josef Noll, “Who owns the SIM?”, 20 November 2007

20. Ecosystem: for NFC
CWI
The collaborative business model
– Telenor and DnB NOR establishes
TSM Nordic AS in April 2008
Source : Mobey Forum Ltd. + Bent Bentsen, 2008
Nov 2010, Josef Noll 17

21. Challenges and Benefits
200
150
Operator’s market share
100
50
0
2006 2008 2010
year
Telecom favourite Third party favourite
18
Josef Noll, “Who owns the SIM?”, 20 November 2007

22. Challenges and Benefits
200
How insecure is the Convenience
Internet? of usage
Will the phone be the only secure
150 element?
Operator’s market share
100
Visa and Mastercard
enable convenient small amount
purchases
50 Are Google, facebook and
flickr more trusted than telecom
operators?
0 Dynamic service environment?
2006 2008 On-the-fly creation of services?
2010
year
old news: May 2007
Telecom favourite Third party favourite
18
Josef Noll, “Who owns the SIM?”, 20 November 2007

23. “Wer zu spät kommt, den ...”
I was wrong!
Collaborative Business in Future Internet Nov 2010, Josef Noll 19

24. “Wer zu spät kommt, den ...”
I was wrong!
Collaborative Business in Future Internet Nov 2010, Josef Noll 19

25. Analysis and Expectations
Collaborate or vanish
Examples:
•IBM
•Altibox
•Apple
Collaborative Business in Future Internet Nov 2010, Josef Noll 20

26. Analysis and Expectations
Collaborate or vanish
Examples:
•IBM
•Altibox
•Apple
Collaborative Business in Future Internet Nov 2010, Josef Noll 20

27. Analysis and Expectations
Collaborate or vanish
Examples:
•IBM
•Altibox
•Apple
Collaborative Business in Future Internet Nov 2010, Josef Noll 20

28. Analysis and Expectations
Collaborate or vanish
Examples:
•IBM
•Altibox
•Apple
Collaborative Business in Future Internet Nov 2010, Josef Noll 20

29. Conclusions
! Future Internet means
collaborative business
! Example: Indoor coverage
with high data rates
expectation reality
>20 Mbit/s 38 % 16 %
7-20 Mbit/s 32 % 17 %
1.2-7 Mbit/s 30 % 32 %
-35%
• Experiences
– Collaborate - or you will loose
– Incorporating the customers
• The Future Internet as
the business merger
Collaborative Radio & Operation, the driver for cost-effective future wireless broadband networks
Collaborative Business in Future Internet Nov 2010, Josef Noll 21

30. CWI
Thanks to
My colleagues at UNIK • Vegard Kjenner from Netcom for LTE usage
• Mohammad Mushfiqur Rahman • Per Hjalmar Lehne from Telenor for
Chowdhury for 5G discussions and generations
calculations • Jørgen Grinnes from Telenor for 3G
– see tutorial ICWMC 2010 for whole picture examples
• Arlindo Bengui André, Muhammad Bilal • Bent Bentsen from DnB NOR for the
Ahmad, Ayaz Khan Afridi for LTE work information on Payment and TSM Nordic
My colleagues at CWI • Truls Berg from Movation for mobile usage
• Frank Reichert for comments on 5G data
Our cooperation partners at CTIF (Aalborg • Linda Firveld from MobileMonday for
University) femtocell industrialisation
• Ramjee Prasad for initiating the “discussion” • Shahram G Niri from NEC for collaborative
Our industrial partners discussions
• Bjørn Amundsen from Telenor for My Telecom colleagues from various Eurescom
discussions on coverage and capacity projects
• Tom Guldberg from Network Norway for • and many, many more....
femtocell
more info: "Collaborative Radio for 5G Mobile and Wireless
Communications, ICWMC 2010 tutorial, Valencia, Sep 2010
Nov 2010, Josef Noll 22