Alcatel-Lucent

Accelerating development and deployment of 4G services

Today, many companies still develop applications in silos. These companies can greatly benefit by partnering with other organizations to rapidly create innovative solutions with mass-market appeal. A first-to-market advantage with compelling services is imperative to win.

Apple’s iPhone ^[1] is a good example of a device that combined various technologies and applications already in use to create a compelling product. The same concept could be adopted on a wider scale. It would offer collaboration among multiple partners to develop innovative, easy-to-use services. The partners would provide expertise in different areas of the wireless industry such as network infrastructure, devices, applications and services.

A multi-industry ecosystem model can provide an open community of members working together to create a framework to deliver timely ultra-high-bandwidth applications into the market place. Members in a multi-industry ecosystem can include everyone from infrastructure vendors, device manufacturers, application developers, and content providers to gaming and computing experts, universities and others with relevant expertise.

Diverse ecosystems offer expanded business opportunities, delivering new revenue streams from disparate partners working together. Today’s operators can capitalize on the benefits of their high-speed, low-latency wireless networks. And they can exploit their valuable assets such as brands, networks, and a wealth of customer data that includes location, purchasing habits, presence, demographics and contacts. Operators must keep all these details in mind as they develop 4G services such as:

• e-Health
• Machine-to-machine (M2M)
• Digital signage
• In-vehicle entertainment
• Widget-based applications and other services

These services are just a few examples that partnerships — such as Verizon’s Innovation center, the multi-industry ng Connect Program, and the Joint Innovations Lab formed by Softbank, China Mobile and Vodafone — might consider as they undertake development of 4G offerings.

Reducing risk with tested, pre-integrated offerings

With the recent changes in the global economy, companies are even more acutely aware of — and averse to — the risks associated with deploying new technologies and services. Investors are more vigilant and business plans are more closely scrutinized. As a result, operators must closely monitor the viability of services prior to deployment.

In many cases, ecosystem members have access to operators’ APIs. This simplifies development and eases interoperability testing, resulting in trusted, pre-integrated solutions. Members of the ecosystem can also use their labs as test grounds to trial, validate and bring new services to market more quickly and with less risk.

Standards-based environments key for successful ecosystem collaboration

Standards-based, open networks foster innovation. Successful 3G services reached mass-market adoption when they standardized and became fully interoperable across networks, geographic regions and devices. Standardization is essential to work collaboratively in an ecosystem environment.

The IP Multimedia Subsystem (IMS) will be key in defining 4G/LTE services. IMS is important because it enables all communication in a packet domain. This is essential for LTE as it combines voice, data and video services across LTE, legacy networks and wireline networks for a seamless user experience. Services that gain traction and increase revenue can be quickly deployed throughout the network. Those not successful can be easily replaced at minimal cost to the operator. In this flexible environment, operators will be able to rapidly develop and deploy compelling new services more cost effectively, with less risk.

The Rich Communication Suite (RCS), completed in early 2009, offers a standardized IMS client/server architecture for new IP-based mobile services on many devices. The world’s largest device vendors — Nokia, Samsung, LG and Motorola — are preparing to put RCS natively on their phones. An ecosystem of partners working in an environment supported by RCS with an IMS core and an LTE network will create a plethora of new 4G services based on the standardized, end-to-end framework.

To date, mobile operators such as NTT DOCOMO have been using a pre-standard version of RCS to leverage IMS on mobile devices. These operators have already deployed over 45 million IMS-capable devices. Other operators in Europe such as Orange, SFR, and Bouygues Telecom are trialing the RCS service. Combining standardized LTE, RCS and IMS will result in more advanced 4G media-sharing services, together with simultaneous voice service.

Conclusion

Success will come from the services that enable users to share with friends, families and colleagues, regardless of network or location. While LTE’s greatly improved data rates and low latency will differentiate services, they will not be enough to increase revenue to the levels needed.

Because traditional organizations operate slowly, ecosystems that can fund and expedite services development and deployment will be fundamental to success. Standardization of services will be critical to enable mass-market adoption.

To contact the author or request additional information, please send email to enrich.editor@alcatel-lucent.com.

Note: This Market Perspective does not necessarily represent the views of Alcatel-Lucent.

Footnotes

^[1] iTunes, iPod and iPhone are trademarks of Apple, Inc., registered in the US and other countries.