"How SIP and VoIP is transforming the model"

Davy Van De Moere CTO Mondial Telecom

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•  Short on Cherry •  Trends •  MVNO’s – the classic model (sales, sales, sales)

•  The challenge – Differentiate •  Using IP on GSMs

•  UMA •  IMS (Getting the V out of MVNO)

•  The success matrix •  Integrate SIP with SS7 •  Use correctly 802.11 networks •  User transparency •  CME – challenge •  God is the Detail

Content

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How chocolate, French fries, beer and Cherry relate…

•  You just want to see it right? Here it is…

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First off … what is Cherry actually doing?

• That was: •  Wifi – calling on the beach of Knokke using Wifi •  See more at Youtube, google for “cherry world premiere”, and see the Handover in action.

•  Cherry is: •  Call out on Wifi with the same number •  Call in on Wifi with the same number •  Smooth handover in call •  QoS although differently implemented •  And some nice goodies

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The Cherry app on Nokia

Cherry’s handover •  when walking out of wifi the cellphone moves the Wifi leg to a GSM leg

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Relevant trends

•  Smartphone penetration is rising (In Belgium that’s about 6% now)

•  Wifi networks become more spread, as well as the public wifi networks

•  All communication is migrating towards a full IP world

•  Integration of networks starts to happen

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MVNO – The classic model

•  MVNO’s advantage was:

•  other price models

•  lower margins due to lower overhead

•  different service

•  good sales organizations

•  MNO’s reached +100% market penetration, the rules have changed, it’s market

saturation time!

•  MVNO’s and MNO’s need new differentiation

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MVNO – Differentiate

•  FMC is one way to differentiate, there are a few ways to do that, and other examples are here today! •  It allows for :

•  Much lower cost structure when calls are on wifi, arbitrage possibilities! •  Major advantage when roaming •  Better coverage indoors! •  New/unique features for the end user •  Control by the MVNO on its customers calls, making it a MSSO ? (Mobile Shared Spectrum Operator? )

•  We all know one day all communication will be on IP, don’t ask me for a timeframe ;), all we know, is it can only be a smooth transition.

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Mobile FMC had two paths until Cherry came along… •  UMA vs IMS

•  UMA : Change the CPE infrastructure •  IMS : No need to change, everything you need is already there

•  PicoCells , FemtoCells? •  Nice technology, no really! But who’ll pay for all that radio power ? It’s only a CAPEX to OPEX transformation for a MNO. And there are still quite some technical difficulties.

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The success matrix

•  Integrate SIP with SS7

•  Use correctly 802.11 networks

•  Making it transparent for the user

•  CME – challenge

•  God is the Detail : Get the OSS/BSS straightened out

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Integrate SIP with SS7

•  SIP is from Venus, SS7 from Mars, as all marriages, it ain’t easy.

•  There are no written rules yet, on SIP to SS7 integration on Mobile usage

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Use 802.11 networks in a good manner

•  Users have a random behavior, they are walking in and out wifi networks

•  We only want to put calls on wifi when we’re sure about the audio quality, still

that’s a huge % of the calls

•  We don’t want to overuse it as well, to enlarge battery life

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Making it transparent for the user

•  Users are stupid? No! They just don’t care about the cost of their next call. They

don’t want to bother with technicalities, but they appreciate a lower invoice at the

end of the month.

•  Lower cost and a few nice extra features are key to convince the user, good

quality all the time, and ease of use is imperative to retain them.

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Making it transparent for the user (cont.)

•  Provisioning needs to be as simple as can be

•  Legal aspects need to be covered

•  Home/work wifi networks need to be sufficient from a range/bandwidth

perspective

•  Application needs to as easy as possible, offcourse the hardest part is making

an application to be mostly in the background, not interfering with the user.

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Customer Mobile Equipment

•  The market is very heterogeneous :

•  Nokia has 3 main platforms on the market NOW, for smartphones.

•  Iphone

•  Windows Mobile has 2 relevant platforms

•  Android has 2 release branches

•  RIM

•  …

•  Much 3rd party apps

•  Different CPU speeds, memory performance, screen displays, etc…

•  And it is used in a random-like manner

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God is in the detail

•  A lab environment is different place then the actual field

•  Hence, on OSS deep monitoring and analysis are required

•  On BSS CDRs of handed over calls are not straight forward

•  BSS has even wider multidisciplinary requirements

•  Educate the user

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Cherry is open for business

•  Cherry had a friendly user test with tech loving people in July, launched commercially on 26/8 , distribution channels opened in october •  We have most of the ingredients on our shelves:

•  CME support •  SIP expertise •  SS7 – SIP integration , in layman terms , how to connect to a MNO •  BSS experience •  Wifi knowledge

•  Cherry is a solution provider, next up is International Expansion •  We’re open to discuss business opportunities

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Cherry is open for business (cont.)

Contact:

d.vandemoere@mondialtelecom.be (CTO) – yours thruly bernard@mondialtelecom.be (CEO)

visit www.becherry.be & google for “Cherry world premiere”

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Q&A