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EMEA 2013<br />

Kees van Veenendaal<br />

VP and General Manager of EMEA<br />

MobileIron<br />

Let the Content speak for itself


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All articles are available for download at www.connect-world.com<br />

CONTENTS<br />

<strong>Connect</strong>ions<br />

From the Editor-in-Chief’s desk<br />

by Fredric Morris<br />

Imprint<br />

4 6 9 11<br />

14 17 20 22<br />

25<br />

35<br />

46<br />

28<br />

38<br />

Advertisements<br />

Newtec<br />

BT<br />

IBC<br />

SDN & NFV<br />

ITU <strong>World</strong> 2013<br />

NFC MMS<br />

Broadband <strong>World</strong> Forum<br />

PTC<br />

Carriers <strong>World</strong> Asia<br />

Cisco<br />

AT&T<br />

31<br />

40<br />

33<br />

43<br />

2<br />

2<br />

IFC<br />

3<br />

8<br />

13<br />

19<br />

26<br />

29<br />

36<br />

41<br />

IBC<br />

OBC<br />

4G growth<br />

Will 4G bring growth 4<br />

by Didier Levy, Arthur D. Little<br />

Digital content<br />

Content is king 6<br />

by Steve Ellis, CEO and President, Broadcast Pix<br />

Digital broadcasting<br />

Winning digital audience 9<br />

by Solomon Mugera, BBC Africa Editor<br />

Unified communications<br />

Content in a network context 11<br />

by Bill Wignall, President and CEO, Sangoma Technologies<br />

Data traffic<br />

Managing rising data traffic to increase data revenues 14<br />

by Niall Norton, CEO, Openet<br />

Quality content distribution<br />

Content is king - but quality reigns 17<br />

by Hui Zhang, Co-Founder and CEO, Conviva<br />

Telco evolution<br />

Content talks - but what’s the message 20<br />

by George Nikoloudis, COO, OTEGLOBE<br />

Communication service providers<br />

How CSPs can stay competitive 22<br />

by Gordon Rawling, Oracle Communications<br />

Subscriber relations<br />

The value of empowered subscribers 25<br />

by Lucas Skoczkowski, founder and CEO, Redknee<br />

Signaling traffic<br />

Diameter signaling: the good, the bad, and the future 28<br />

by Doug Suriano, CTO, Tekelec<br />

Over-the-top content<br />

Headline: Content for the masses 31<br />

by Zdeněk Gerlický, CTO, nangu.TV<br />

Native language content<br />

Content speaks for itself - in the viewer’s language 33<br />

by Philippe Rouxel, CMO, GlobeCast<br />

Virtual working<br />

The essentials of virtuality 35<br />

by John Berry, Director and Management Consultant, TimelessTime<br />

Secure content distribution<br />

Secure mobile distribution of corporate content 38<br />

by Ian Evans, Managing Director EMEA, AirWatch<br />

Mobile security<br />

Cutting mobile content risks 40<br />

by Kees Van Veenendaal, VP and General Manager of EMEA, MobileIron<br />

Ultra HD TV<br />

Ultra HD TV - real quality 43<br />

by Ian Trow, Senior Director of Emerging Technology and Strategy, Harmonic<br />

Bandwidth<br />

Conquering through copper - delivering content wherever needed 46<br />

by Lee Palmer, Commercial Director, The Kenton Group


CONNECTIONS<br />

<strong>Connect</strong>ions<br />

Today access to digital content<br />

is changing the way we work<br />

and live. Social networks are<br />

redefining the way we interact<br />

not only with friends and family,<br />

but the way we interact with<br />

businesses of all sorts and the way<br />

businesses communicate internally.<br />

The resulting surge in digital<br />

traffic is straining networks - both<br />

fixed and wireless and pushing<br />

wireless spectrum to the limits of 3G capacity.<br />

The theme for this issue of <strong>Connect</strong>-<strong>World</strong> EMEA is Let the<br />

Content speak for itself.<br />

Fredric Morris,<br />

Editor-in-Chief,<br />

<strong>Connect</strong>-<strong>World</strong><br />

editor@connect-world.com<br />

Migration to 4G will provide enough additional network<br />

capacity for about ten years, but price competition is reducing<br />

the revenues communications service providers (CSPs) need to<br />

build extra capacity. CSP business models are changing; they are<br />

seeking partnerships with content producers, equipment vendors<br />

- indeed the entire universe of technology and content related<br />

specialties - to help them build the next generation contentmoving<br />

environment both for business and personal use.<br />

Every aspect of the content chain - creation, production,<br />

distribution models, networks, devices business models - is<br />

highly likely to change. What will not change is the need to<br />

please the consumer - from the person who just wants a good<br />

show or the company that has a business to run. Empowering<br />

the user - giving them access to the content they want ant to<br />

what they can do - is the key to higher revenues throughout the<br />

content chain.<br />

Content where we want it, on whatever device we want is the<br />

challenge. When content can reach connected cars and tablets<br />

on train or someone walking down the street, when broadband<br />

Internet access is available and affordable for all - then content<br />

can choose where it goes.<br />

Editor-in-Chief: Fredric J. Morris fredric.morris@connect-world.com<br />

Publisher: David Nunes david.nunes@connect-world.com<br />

Editorial Department: editorial@connect-world.com<br />

<strong>Connect</strong>-<strong>World</strong> is published under licence<br />

by INFOCOMMS MEDIA LTD<br />

email: info@connect-world.com<br />

URL: www.connect-world.com<br />

Production Department: production@connect-world.com<br />

Sales Department: sales@connect-world.com<br />

Administration Department: admin@connect-world.com<br />

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronical,<br />

mechanical, photocopying, recording or otherwise, without prior permission from the publishers. The content of this publication is-based<br />

on best knowledge and information available at the time of publication. No responsibility for any injury, death, loss, damage or delay, however<br />

caused, resulting from the use of the material can be accepted by the publishers or others associated with its preparation. The publishers neither<br />

accept responsibility for, nor necessarily agree with, the views expressed by contributors.<br />

ISSN 1748-6998<br />

2 • EMEA 2013


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4G growth<br />

Will 4G bring growth<br />

by Didier Levy, Arthur D. Little<br />

Despite 4G, European telecom operator revenues will continue to decline although somewhat<br />

more slowly. Nevertheless moving to 4G is extremely important for European telecom<br />

operators whose current networks are running out of capacity. 4G LTE can carry 70 per cent<br />

more traffic than the latest 3G technology - enough to meet capacity needs for the next ten<br />

years. To build profits, operators will need new tariff structures, partnerships with content<br />

providers and others, cost reductions, better network utilisation and network sharing.<br />

Didier Levy is the Director of Arthur D. Little’s ‘TIME’ -Telecommunications, IT, Media and Electronics - practice; he has extensive<br />

experience in strategy, marketing & distribution, organization and transformation projects in the TIME sector as well as in other<br />

industrial and services sectors. During many years Mr Levy has assisted players of the telecom and media industry (mobile, fixed,<br />

broadband, pay-TV, vendors) in different parts of the world. In particular, he has led many projects in growth strategy, product design<br />

and pricing, distribution as well as operational performance improvement.<br />

Didier Levy is a graduate of HEC Paris and holds a MSc from the London School of Economics<br />

4G and European revenue recovery<br />

European telecom operators saw revenues<br />

down by 3.8 per cent in 2012. Will 4G<br />

reverse the trend<br />

Although 4G will quickly become essential,<br />

it will not revive the sector’s revenues. In<br />

fact we expect that despite 4G, revenues will<br />

continue to decline in Europe: -1.8 per cent<br />

per year on average by 2016.<br />

The sector could return to growth if LTE<br />

smartphones generated data ARPU of EUR17/<br />

month by 2016e i.e. EUR7 higher than today’s<br />

data ARPU on 3G smartphones - this is a<br />

stretch. Nevertheless this demonstrates the<br />

high importance of a successful move to 4G<br />

for European telecom operators.<br />

For operators, moving to 4G LTE is a nobrainer…<br />

European operators’ 3G networks will soon hit<br />

a ‘capacity wall’ and 4G LTE is a great tool to<br />

surmount this. Moreover 4G LTE is a better<br />

technology than 3G; the amount of traffic that<br />

can be carried on a given amount of spectrum<br />

is almost 70 per cent higher on 4G than it is on<br />

HSPA+, the latest version of 3G.<br />

Based on our traffic and capacity modelling,<br />

we found that thanks to 4G spectrum, operators<br />

will not face capacity issues for an average of<br />

a decade: specifically not before early 2022 for<br />

operators with 800MHz spectrum and some<br />

time in 2020 for those without.<br />

Network demand and capacity for a typical<br />

operator<br />

Source: Arthur D. Little, Exane BNP Paribas<br />

…and we expect customers to adopt 4G<br />

quickly<br />

The US, Japanese and Korean markets where<br />

4G rapidly became successful, benefited<br />

from specific circumstances not shared<br />

by European operators. Still we believe<br />

that 4G will be a commercial success in<br />

Europe. Customers are growing increasingly<br />

frustrated with the 3G experience, a problem<br />

that will only get worse as usage increases.<br />

LTE will bring a better service, with<br />

download speeds three to five times faster<br />

(15-20Mbps versus 4-6Mbps) and response<br />

times five times shorter.<br />

The take-up of LTE should accelerate in the<br />

second half of 2013 and throughout 2014. We<br />

expect 100 per cent of new smartphones and<br />

tablets to be LTE-enabled from 2015, leading<br />

to a 54 per cent penetration of 4G-enabled<br />

devices in the population by 2016.<br />

We do not expect 4G to restore the industry’s<br />

pricing power<br />

We expect 4G to significantly boost mobile<br />

data traffic. Experience in the US, South<br />

Korea and Japan has shown that traffic per<br />

device is higher on 4G than on 3G, driven<br />

by faster speeds, lower latency and datahungrier<br />

devices. In addition, US operators<br />

have shown that ‘shared data’ plans (enabling<br />

a monthly data allowance to be used across<br />

multiple devices) could accelerate the<br />

connection of more devices to networks.<br />

However our analysis shows that the move<br />

to 4G is unlikely to restore pricing power in<br />

the industry. In many cases, price levels keep<br />

declining due to operators offering higher<br />

data plans for the same price. Thus, the<br />

transformation of traffic growth into revenue<br />

growth is not apparent.<br />

4 • EMEA 2013


4G growth<br />

Differentiation is elusive<br />

Unlike Verizon Wireless and AT&T, leading<br />

European mobile operators will struggle to<br />

sustainably differentiate themselves from<br />

challengers for the following reasons:<br />

Spectrum differentiation Challengers’<br />

spectrum assets are far in excess of their<br />

revenue market shares, giving them room<br />

for growth; conversely, leaders have lower<br />

spectrum share than revenue market share and<br />

are hence more constrained.<br />

Cost differentiation Costs will be lower<br />

under 4G than 3G, but the decline will take<br />

time to materialise and all parties will benefit<br />

eventually. With 4G, network costs will<br />

become a smaller part of the total cost base<br />

over the long term; correspondingly, “other<br />

opex” will become an increasingly important<br />

factor to monitor - this is good for the leanest,<br />

not for the largest.<br />

Differentiation from owning fixed<br />

networks Fixed-line networks will be<br />

an increasingly essential part of mobile<br />

networks, with WiFi offload and small<br />

cells being a key part of future architecture.<br />

However, for mobile operators, there are<br />

alternatives to owning fixed-line assets.<br />

Quad-play differentiation It is too early to<br />

say whether customers will prefer to bundle<br />

tablets with smartphones in shared data plans<br />

as is seen in the US or with fixed broadband<br />

in quad-play bundles as in some European<br />

markets. However, mobile-only players<br />

certainly have one less option compared with<br />

their integrated competitors.<br />

So what can operators do<br />

1. Monetising data - new tariff structures<br />

The transformation of traffic growth into<br />

revenue growth depends on how operators<br />

price their mobile data bundles.<br />

We believe that the most attractive structures<br />

are usage caps, which are already common<br />

practice in Europe and shared data plans,<br />

which have developed in the US and are<br />

starting to be seen in Europe e.g.at Telia<br />

Sweden, SFR in France and O2 Ireland.<br />

These shared plans are a great way to<br />

encourage users to connect more devices<br />

to cellular networks - and hence to generate<br />

more traffic revenues over time.<br />

2. Innovating in services through partnerships<br />

Tech giants and content providers such as Apple<br />

and Google are in tight control of the mobile<br />

services ecosystems and most of the value of<br />

additional services such as maps, music, etc. is<br />

unlikely to go to mobile operators.<br />

However, with the move to LTE, we see<br />

several opportunities for mobile operators<br />

to generate value in additional services<br />

- focusing on content heavy applications<br />

(cloud storage, on-demand media, video<br />

conferencing…), with potential benefits either<br />

directly (generating revenues) or indirectly<br />

(stimulating mobile data traffic and/or acting<br />

as customer retention tools).<br />

3. Continuing cost reduction programmes<br />

With a further decline in revenue trends<br />

ahead, reducing costs will remain of<br />

paramount importance. The cost of capacity<br />

is a small component of the overall cost<br />

structure today (c.EUR3/month per customer,<br />

i.e. c.20 per cent of the total cost base) and<br />

will further decline in the coming years,<br />

despite exponential growth in data traffic<br />

(EUR2/month per customer in 2020e).<br />

Being the lowest-cost provider will become<br />

even more important in the future - and<br />

those most likely to benefit from a cost<br />

differentiation in the long term are those<br />

achieving better efficiencies on their ‘other<br />

opex’. For a typical operator, achieving a ten<br />

per cent efficiency gain on the mass of ‘other<br />

opex’is equivalent to achieving a 25-30 per<br />

cent gain on the capacity-related costs in<br />

2013e, and to a c.50 per cent gain in 2020e.<br />

The key opportunities relate to transformation<br />

towards an ‘online centric’ business model<br />

- with opportunities to save on commercial<br />

costs (direct online sales versus indirect<br />

physical distribution), customer management<br />

(self care versus call centres), billing<br />

(e-billing and direct debit), marketing<br />

(simplification of offers; use of targeted<br />

online tools rather than expensive TV<br />

advertising), etc.<br />

4. Optimising network utilisation<br />

Offloading mobile data traffic on fixed-line<br />

networks via WiFi, femtocells, etc. is (and<br />

will increasingly be) a key element of mobile<br />

network strategies, with two key benefits:<br />

Spectrum optimisation: WiFi operates<br />

on a different spectrum to 3G and 4G, so<br />

offloading traffic to WiFi helps enable to<br />

save on spectrum utilization. In our core<br />

scenario, we assume the share of traffic<br />

which offloaded onto WiFi will increase by<br />

25 per cent (of the total traffic) by 2017e. In<br />

this scenario, the operator’s spectrum assets<br />

are modelled to be fully used by 2022. In an<br />

alternative scenario assuming no incremental<br />

offload, the spectrum would become saturated<br />

more than two years earlier.<br />

Cost optimisation: small cell solutions are<br />

significantly cheaper than large outdoor<br />

macro-cell antennas. However, because the<br />

incremental cost of capacity is small anyway,<br />

we estimate that the cost gain enabled by<br />

offloading an additional 25 per cent of traffic<br />

onto WiFi reaches less than one per cent of<br />

the total cost base of a typical operator.<br />

Integrated fixed-mobile players can leverage<br />

the fact that they own both fixed and mobile<br />

network assets. However, mobile operators do<br />

not need to own fixed-line assets themselves<br />

to benefit from this. There are many other<br />

options available today or which will develop<br />

over the coming years.<br />

5. Consolidation or network sharing<br />

European mobile operators have thought<br />

about in-market consolidation for many<br />

years. There would be significant synergies<br />

in terms of costs and potentially of ‘market<br />

repair’. However, this could come under<br />

regulatory scrutiny from the relevant<br />

competition authorities.<br />

Mobile network sharing is an alternative which<br />

can generate savings ranging from ten per cent<br />

to 30 per cent on network capex and opex. The<br />

roll-out of LTE networks is a good opportunity<br />

to look at this as it is easier to generate<br />

synergies when rolling out a new network than<br />

when trying to consolidate two existing ones.<br />

However, financial benefits have to be weighed<br />

against the potential strategic consequences e.g.<br />

enabling smaller players to access scale benefits<br />

that would otherwise be reserved for leading<br />

players or reducing opportunities to create<br />

significant network differentiation.<br />

In conclusion<br />

4G represents a key opportunity for telecom<br />

operators to address customers’ growing<br />

usages and to provide ten years additional<br />

capacity to European mobile networks.<br />

As a result, 4G will quickly spread across<br />

Europe and will experience commercial success.<br />

Will 4G be enough to put telecom operators<br />

on the path of growth again Probably not as<br />

such, but operators will take advantage of this<br />

new technology to innovate in their offerings,<br />

their services and their networks.<br />

For customers, networks and operators, 4G<br />

will quickly become essential. •<br />

EMEA 2013 • 5


Digital content<br />

Content is king<br />

by Steve Ellis, CEO and President, Broadcast Pix<br />

Content may well be king, but producing a king today is easy. They don’t make kings as they<br />

used to. Today, anyone with a laptop, some sophisticated editing and production software,<br />

and two or three consumer camcorders (or just a cellphone and microphone)can produce<br />

professional content. Add an Internet link, and the producer can distribute it worldwide from<br />

home or even a hotel room - all this at a tiny fraction of what it would have cost less than<br />

ten years ago.<br />

Steve Ellis is CEO and President of Broadcast Pix, and a member of the board of directors. Mr Ellis previously he served vice president<br />

of sales and as vice president of emerging markets at Telestream. Mr Ellis began his video career in the Air Force, Merrill Lynch and<br />

AT&T. Mr Ellis was Vice President and General Manager of Editel Boston. Mr Ellis was also a co-founder of SNNY, which sold video<br />

production equipment and was the top reseller for Pinnacle Systems; Pinnacle later hired him as its director of sales for the Americas.<br />

At Vizrt, he served as Vice President of Sales for North American Operations.<br />

Steve Ellis has a communications degree from the State University of New York.<br />

‘Content is king’ is a quote that has been<br />

vastly overused (and thank you, Mr. Gates,<br />

for the original quote), but it does speak<br />

to the world in which we live. However, I<br />

would take this one step further and modify<br />

his quote to say, “Content is king, but<br />

he who controls the content has the keys<br />

to the kingdom.” The rapidly changing<br />

communication and media landscape is<br />

creating an environment where anyone can<br />

create a kingdom. At the start of my career in<br />

the broadcast and production industry, it took<br />

money and power to control content - and<br />

only those with enough resources were given<br />

the opportunity to be ‘kings.’<br />

Granted, there were a few lucky individuals<br />

that were at the right place at the right time,<br />

but I would contend that if you wanted to<br />

launch a radio station or TV station, build a<br />

station group, or launch CNN, you had to be<br />

someone like Ted Turner with the resources<br />

to do so. You also had to commit those<br />

resources (time and money), and be prepared<br />

to sacrifice equal amounts of both. It was also<br />

very important that you were a visionary with<br />

your eye focused on success.<br />

The rules to success were clearly written,<br />

and how you controlled content was fairly<br />

straightforward. You had to have money and<br />

lots of it. Whoever controlled the medium<br />

controlled the content.<br />

Today, there are only two steadfast rules<br />

needed to build a media empire, and it no<br />

longer takes a great deal of money to control<br />

the media and its associated content. You<br />

need to know a few things, such as a basic<br />

understanding of modern communication,<br />

including the Internet and the technology<br />

needed to create content that will be<br />

disseminated on the Internet. And you need a<br />

very good idea; you need to be a visionary.<br />

A great example of this is Justin Bieber, a<br />

young and extremely wealthy entertainer<br />

who got his start when his music video<br />

on YouTube went viral. A simple video<br />

delivered on the Web, a virtually free<br />

medium, launched a career without<br />

the need of millions for marketing and<br />

promotion. Content is still king, but the<br />

rules have changed.<br />

Not long ago, I was interviewed by a Webbased<br />

industry <strong>magazine</strong> and given the<br />

6 • EMEA 2013


Digital content<br />

opportunity to speak about my company<br />

and our products. My expectation was that a<br />

crew would show up with a tripod, camera,<br />

some type of mic (probably dangling from a<br />

boom or a fish pole), and lighting kit. While<br />

it has been a very long time since I read<br />

Fundamentals of Television Production for<br />

my introductory college video production<br />

course, I remember things that were very<br />

important 30 years ago, including threepoint<br />

lighting, depth of focus, nat sound, and<br />

reaction shots.<br />

Much to my surprise, the interviewer showed<br />

up with a cell phone with a mic plugged into<br />

her phone - no lights, no boom, no crew. This<br />

was a far cry from the numerous videos I<br />

have produced and directed in the past.<br />

The interviewer, who was also the director,<br />

recording engineering, and mic operator,<br />

said, “When I blink my eyes you start<br />

talking, and when I blink again you can<br />

stop.” That was followed by, “I bet you can<br />

do it in one take”, which I did. When the<br />

interview was complete, she ran off with<br />

my one-take performance, bypassed postproduction,<br />

and posted the video on their<br />

Web site within the hour.<br />

Welcome to video production in 2013.<br />

I went back to my hotel room later that day,<br />

found the email with the link to the Web site<br />

for the publication, and watched the video<br />

that seemed to be produced so hastily. Much<br />

to my surprise, it worked. The video did<br />

exactly what was intended: It communicated<br />

a message about my company without all the<br />

trappings and tools I thought were necessary<br />

to deliver content to an audience.<br />

This is a real life experience that<br />

demonstrates that a very simple production<br />

process is only one example of how changes<br />

in technology have changed how we produce<br />

and deliver content and view content.<br />

At one point in my career, I had the<br />

opportunity to oversee the design and<br />

installation of two very extensive video and<br />

film production facilities. The first of these<br />

projects had a construction and equipment<br />

budget of just under $30 million U.S., which<br />

included a live studio with multiple cameras,<br />

a smaller secondary studio, a sound and<br />

audio production suite, three fairly extensive<br />

editing rooms, graphics, and several remote<br />

video production systems. The second was<br />

nearly three times this size, with film-to-tape<br />

transfer, several NLE suites, three times as<br />

many graphic workstations, and more.<br />

The standard definition studio cameras in the<br />

first project were nearly US$80,000 each,<br />

while the 3D graphic systems were close to<br />

US$300,000. Despite the large price tags,<br />

neither production facility would have the<br />

diverse and compressive capabilities of the<br />

tools we use today, which are available at a<br />

fraction of the cost.<br />

Last year, I had the opportunity to<br />

recommend an integrated production<br />

product to someone who has managed<br />

live production for nearly 30 years. He<br />

was tasked with producing a multi-camera<br />

remote live production and delivering the<br />

content to viewers around the world on a<br />

very limited budget.<br />

Years ago, he would have used a remote<br />

production vehicle equipped with cameras<br />

and all the necessary gear. He would<br />

have contacted a company to set up a<br />

communications link, complete with<br />

microwave feed or uplink to a satellite. And<br />

after spending tens of thousands of dollars, he<br />

would pray that it all worked.<br />

Instead, he used an integrated production<br />

software package running on a laptop.<br />

The software included a production switcher,<br />

graphics, audio, streaming capabilities,<br />

and a virtual set - and he plugged in three<br />

consumer grade HD camcorders. For less<br />

than US$4,000 (and the help of an ISP), he<br />

delivered a high quality live production to<br />

locations in several countries.<br />

Fifteen years ago, if you wanted to deliver a<br />

commercial or TV program to be used on the<br />

air in California tomorrow and the production<br />

company was in London, you would put a<br />

production intern on a flight to Los Angeles<br />

with a copy of the videotape. Even five<br />

years ago, I could not have imagined that if I<br />

wanted to share news footage of the tsunami<br />

in Japan or flooding on the New Jersey<br />

shore, I could just upload it to the cloud<br />

and it would instantly appear in someone’s<br />

inbox 8,000 miles away, ready for use on the<br />

evening news.<br />

Television technology (or perhaps I should<br />

call it new media technology) is moving<br />

at such a fast pace that many young<br />

professionals who are just beginning their<br />

careers don’t remember a time when we did<br />

not have file-based workflows. The changes<br />

in our everyday production tools and how<br />

we deliver content is changing how we see<br />

the world. New media delivery systems,<br />

such as YouTube, give everyone equal access<br />

to viewers everywhere; these new media<br />

outlets can create empires and, in some cases,<br />

destroy them.<br />

It has been three decades since Tim Berners-<br />

Lee first postulated the idea of using the<br />

internet as a means to store and retrieve<br />

information. Working as a contractor in<br />

Switzerland, he was the first to believe<br />

that the <strong>World</strong> Wide Web was a medium<br />

that could connect business, employees,<br />

and others. In the years since, streaming<br />

television services have expanded at an<br />

unimaginable rate, and the giants of the<br />

broadcasting and cable industries have moved<br />

quickly to utilize the medium as well.<br />

Radio stations around the world have also<br />

joined the long list of others who utilize<br />

the Web. In particular, radio stations In<br />

the United Kingdom, France, and Germany<br />

are providing streaming video content to<br />

their customers. For the first time, radio<br />

stations and networks can compete with<br />

traditional television stations and networks<br />

by delivering video and audio to anyone,<br />

anywhere in the world.<br />

Whether you are in the United States,<br />

Europe, or Bangladesh, this concept of<br />

providing low-cost entertainment and<br />

information is a worldwide phenomenon.<br />

The number of content providers is growing,<br />

from large media giants to citizen journalists<br />

who stream video and audio news and<br />

content on the Web.<br />

This is the real world of content and<br />

modern media communication. It is no<br />

longer necessary to have big money,<br />

a TV transmitter, or a cable franchise<br />

to communicate an idea. With today’s<br />

advanced technology, the content can and<br />

will speak for itself.<br />

I imagine that if media and communication<br />

philosopher Marshall McLuhan were alive<br />

today, he would be not be surprised that his<br />

famous quote, “The medium is the message,”<br />

and his prediction that there would be a<br />

<strong>World</strong> Wide Web (decades before it was even<br />

invented) had become realities. But he might<br />

be very surprised that in our fast paced and<br />

quickly changing world it is no longer about<br />

the medium - it’s about the message. •<br />

EMEA 2013 • 7


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Digital broadcasting<br />

Winning digital audience<br />

by Solomon Mugera, BBC Africa Editor<br />

Nearly 60 per cent of Africa’s one billion people have mobile phones and this is transforming<br />

businesses, driving entrepreneurship, economic growth and the continent’s media landscape.<br />

A shift to mobile phones and other portable digital devices is fast overtaking radio<br />

broadcasting; these devices are becoming the mass medium for information, communication<br />

and social interaction. The challenge for mass media broadcasters is to develop ways to<br />

drive digital audiences to traditional platforms. Trends on social media now drive content<br />

for other platforms.<br />

As BBC Africa Editor, Solomon Mugera oversees the managerial and editorial direction of BBC Africa programmes. Before taking this<br />

position Mr Mugera headed the BBC Swahili service, where he started as a producer and presenter; this multimedia radio and online<br />

operation has staff located in the UK, Burundi, DR Congo, Kenya, Rwanda, Tanzania and Uganda.<br />

Mr Mugera also worked with various other BBC services and programmes and H pioneered BBC’s live, interactive debate across the<br />

continent Africa, Have Your Say which started as Africa Live! in 2002. Mr Mugera was instrumental in the launch of the first ever BBC<br />

TV bulletin dedicated to Africa and led the launch of a similar programme in Kiswahili for East and Central Africa.<br />

Before joining the BBC, Solomon worked for three years as a television journalist with the Kenya Broadcasting Corporation.<br />

The growth of mobile phone subscription<br />

across Africa is phenomenal. The <strong>World</strong><br />

Bank estimates that nearly 60 per cent of<br />

the continent’s one billion people have<br />

a mobile phone, more than in developed<br />

economies such as the United States and<br />

the European Union.<br />

It has become a life tool which, says<br />

the <strong>World</strong> Bank, is transforming<br />

businesses, driving entrepreneurship<br />

and economic growth.<br />

Mobile phone technology is also changing<br />

the media landscape across Africa. The<br />

UN predicts that the continent will become<br />

predominantly urban within 20 years. Over<br />

that time, 48 per cent of all Africans will be<br />

city dwellers. That number will continue to<br />

rise year on year.<br />

A study in 2012 by the US based Centre<br />

for International Media Assistance (CIMA)<br />

says increased urbanization and growth in<br />

technological development will bring about<br />

significant changes in the way people in<br />

Africa consume particularly digital media.<br />

The report shows that mobile ownership is<br />

higher in cities. Nigeria is a case in point.<br />

In 2012, 85 per cent of residents in big<br />

cities such as Lagos owned a cellphone<br />

compared to 72 per cent of rural residents.<br />

At this rate mobile penetration could reach<br />

or even surpass the 100 per cent mark in<br />

some cities within the next few years.<br />

And it will not be long before mobile<br />

phones and other portable digital devices<br />

inevitably become the mass medium for<br />

information, communication, interaction<br />

and other transactions.<br />

The traditional method of broadcasting<br />

to mass audiences via radio is fast<br />

being overtaken by a shift, particularly<br />

by the young, to mobile-phone and<br />

internet platforms.<br />

Take the case of Kenya where the number<br />

of mobile subscribers has risen to more<br />

than 30 million. However, according to<br />

the Communication Commission of Kenya,<br />

CCK, the rate of growth of one per c ent<br />

EMEA 2013 • 9


Digital broadcasting<br />

seen over much of 2012 shows the market<br />

“appears saturated and tending towards<br />

maturity.” That means nearly all adults in<br />

Kenya, which has a population of about 42<br />

million, has a mobile phone.<br />

The story is the same across most of Africa.<br />

Nigeria’s Communication Commission<br />

reports that mobile-phone subscriptions<br />

have risen to more than 100 million, the<br />

highest on the continent.<br />

Figures from Ghana’s National<br />

Communications Authority show there<br />

are nearly as many mobile phones as the<br />

country’s population of nearly 25 million.<br />

That presents a penetration of 100 per cent.<br />

Research shows that short message service<br />

(SMS) is still the most popular use of<br />

mobile phones in Africa. It facilitates<br />

interactivity, aids financial transactions and<br />

enhances communication. While it provides<br />

a platform for media content such as audio,<br />

video and text, SMS can be a direct and<br />

timely source of feedback and market<br />

intelligence for broadcasters.<br />

The high growth of mobile-phone use<br />

across Africa is also driven by various<br />

factors such as the low cost of handsets and<br />

competition among mobile-phone service<br />

providers, ensuring better price deals.<br />

The introduction of fibre-optic connectivity<br />

has enhanced mobile internet speed.<br />

Competition in the sector is also helping to<br />

keep connectivity costs relatively low.<br />

Recent statistics by the Communication<br />

Commission of Kenya, CCK, show<br />

the number of internet users in Kenya<br />

continues to grow, reaching 16.2 million by<br />

end of 2012. This represents nearly 40 per<br />

cent of the population. The growth trend<br />

cuts across internet penetration and usage<br />

of broadband.<br />

This increase is attributed to growing<br />

demand for internet and data services,<br />

including use of social media especially<br />

among the young. Competitive tariffs<br />

by the mobile operators could also have<br />

contributed to the growth in the number of<br />

internet users.<br />

A recent <strong>World</strong> Bank survey on mobile<br />

usage in Kenya shows that the majority are<br />

young people between the ages of 18 to<br />

29. This shift creates new opportunities for<br />

existing broadcasters to reach and engage<br />

with audiences. For the BBC, which has<br />

built a strong heritage in Africa thanks<br />

to radio, this shift to digital platforms<br />

poses both a number of opportunities and<br />

challenges. The debate is no longer about<br />

whether or not to tackle them, but how to<br />

do it in a cost-effective way that delivers<br />

reach and impact.<br />

First, there are thousands of mobile<br />

handsets in the market. Their screen sizes<br />

and capabilities vary, from basic to feature<br />

to smart phones. Through an approach<br />

called Responsive Design, the BBC is<br />

redesigning its websites so that web pages<br />

can resize themselves depending on the<br />

type of mobile phone or device with<br />

which a user is accessing the content.<br />

The challenge is how to fit content that is<br />

designed on a desktop computer to various<br />

screen sizes and retain as many elements of<br />

the content as possible.<br />

The African market is still dominated by basic<br />

and feature phones. Less than ten per cent of<br />

mobile phone owners have smartphones.<br />

One of the BBC’s first language service<br />

websites to move to Responsive Design is<br />

BBC Hausa’s bbchausa.com. The service<br />

which boasts a weekly radio audience of<br />

more than 23 million, commands a huge<br />

following on its Facebook site which has<br />

more than 300,000 likes. The BBC Swahili<br />

service, with a radio audience of nearly<br />

20 million, is also performing well on<br />

Facebook with nearly 90,000 likes. The<br />

majority of BBC Hausa and BBC Swahili<br />

digital audience access internet via their<br />

mobile phones rather than the desktop.<br />

The second challenge for broadcasters is<br />

how to strike a balance between the needs<br />

of traditional versus digital audiences.<br />

Research suggests that mobile users<br />

across Africa are rather different to BBC’s<br />

existing radio audiences. Whilst existing<br />

radio audiences tend to be rather older<br />

and predominantly male, African mobile<br />

users tend to be younger and more evenly<br />

balanced between male and female.<br />

Do we need a different editorial proposition<br />

to capture the digital market What sort<br />

of news is this audience looking for and<br />

in what formats Journalists used to one<br />

form of production for radio are having to<br />

adapt their skills to new platforms. How<br />

do broadcasters juggle limited resources to<br />

serve new audiences as well as old ones<br />

As highlighted above, there is a difference<br />

between radio and mobile phone audiences.<br />

Programming content for mobile telephone<br />

is not the same as for radio and TV. They<br />

differ in duration, tone and delivery.<br />

Beyond SMS, the rapid growth of online<br />

social networks such as Facebook,<br />

YouTube, Twitter and blogs offer<br />

broadcasters with potential to drive<br />

digital audiences. It can help increase<br />

reach, engagement and interactivity with<br />

audiences. Social media are also helping<br />

generate content for other platforms. On<br />

several occasions, BBC Hausa service has<br />

learned about events happening in northern<br />

Nigeria through its Facebook page.<br />

Take the case of Kenya’s elections last<br />

March. The polls passed off peacefully,<br />

a stark contrast to what happened<br />

when a dispute over the outcome of the<br />

December 2007 elections degenerated<br />

into violent protests.<br />

While there was calm on the streets,<br />

Kenyans resorted what some in social<br />

media described as digital violence.<br />

BBC Monitoring observed how Kenyans<br />

exchanged offensive ethnic slurs on<br />

Facebook, Twitter, blogs and other<br />

social networks.<br />

BBC Monitoring reported that the state<br />

National Cohesion and Integration<br />

Commission (NCIC) highlighted the<br />

use of ‘coded language’ and ethnic<br />

stereotypes to engage in ‘hate speech’ and<br />

stir ethnic intolerance.<br />

Beyond politics, Kenyans and Nigerians<br />

took to Twitter to taunt each other as<br />

their national teams braced for a <strong>World</strong><br />

Cup qualifier match. With hashtag<br />

#SomeoneTellNigeria, Kenyans complained<br />

about how unfairly their team had been<br />

treated by their hosts ahead of the match,<br />

and began to mock Nigerians. The<br />

latter responded in kind with hashtag<br />

#SomeoneTellKenya.<br />

Such trends on social media are a source<br />

of content for other platforms such as<br />

radio, TV and online. The challenge for<br />

mass media broadcasters in particular is<br />

how to develop capacity and technical<br />

ability to drive digital audiences to<br />

traditional platforms. •<br />

10 • EMEA 2013


Unified communications<br />

Content in a network context<br />

by Bill Wignall, President and CEO, Sangoma Technologies<br />

Demand continues to grow for rich and relevant content, but, it is still a challenge to deliver<br />

content reliably wherever it is needed. Today’s communications infrastructure has evolved<br />

over the last 50 years; it is a patchwork of disparate systems that, amazingly, manage to<br />

interconnect. Unified Communications (UC) solutions glue together this collection of<br />

disparate technologies, business processes and infrastructure. Simplified UC deployment<br />

will be the key to getting the most out of the available resources and information.<br />

Bill Wignall serves as President and Chief Executive Officer of Sangoma Technologies. A technology industry veteran for over 20 years,<br />

Mr. Wignall has held CEO and executive roles at Truition, Electronics Workbench, Northern Telecom, BNI and Telezone.<br />

Bill Wignall is a Registered Professional Engineer in Ontario and holds a B.A.Sc., Electrical Engineering from the University of Toronto.<br />

He is also a graduate of Stanford University’s Executive Program for Growing Companies.<br />

Many of us in the telecommunications<br />

world place a premium on creating the<br />

latest, fastest, most powerful technology<br />

solutions, applications, and services for<br />

targeting particular markets or solving special<br />

challenges. We tend to pay these innovations<br />

extra attention; perhaps, in some cases, more<br />

than they deserve. This rings especially<br />

true when one considers the mind of the<br />

individual end user who stands to benefit<br />

most from these emerging technologies. The<br />

focus is almost always on the sizzle - the<br />

flash, the productivity, or the entertainment<br />

value consumed by the user. No surprise, it’s<br />

all about the content.<br />

Communications technologies that were<br />

once considered blue-sky thinking,<br />

such as multimedia communications,<br />

collaboration tools in the workplace,<br />

presence management and more, have all<br />

become not just part of our daily lives, but<br />

indispensable tools and capabilities for<br />

living and competing in today’s high-paced<br />

global village. While many are looking<br />

for the flash and entertainment value of<br />

rich and immediate access to content, in<br />

the business world, content is regarded in<br />

a somewhat different, more crucial, light.<br />

Communications information in any format<br />

- voice, video, text, email, and more, as<br />

well as the inputs or outputs of any business<br />

process - are elements of content that can<br />

have a profound impact on the profitability<br />

or even survivability of an organization.<br />

Whether personal or professional content<br />

is the subject, one fact remains clear across<br />

the board: There continues to be an evergrowing<br />

demand across all markets and<br />

walks of life for rich and relevant content.<br />

As the saying goes: Content is king. Content<br />

keeps users and consumers busy, happy, and<br />

productive. Yet, if truth be told, content is<br />

nothing if it cannot be steadily and reliably<br />

delivered to the many endpoints where it<br />

is consumed. So, in this respect, though<br />

content may be considered king, if there are<br />

no dependable, robust, and seamless systems<br />

to ensure its uninterrupted delivery, this king<br />

has no kingdom.<br />

Behind the closed curtain<br />

When we peel back this thin surface veneer<br />

of exciting content, we reveal the frightening<br />

truth that the technologies, networks,<br />

standards, and environments that comprise<br />

our communications infrastructure, one that<br />

has evolved so dramatically and disruptively<br />

these past fifty years, is nothing more than an<br />

underlying patchwork of disparate systems<br />

that somehow, amazingly, still manage to<br />

interconnect - well, most times, though<br />

perhaps not very efficiently. With each new<br />

wave of technological evolution, from the<br />

first digital telephone circuits straight through<br />

to cellular, Voice-over-IP, mobile data, SMS<br />

and text, video chat, and “free” Internet<br />

calling services today, this hunk of legacy<br />

infrastructure continues to have new widgets<br />

and gadgets bolted onto its top, sides, bottom,<br />

and even its inside.<br />

This is not to suggest that nothing has been<br />

retired or taken out of service in all this time,<br />

of course, but it doesn’t take too long or too<br />

hard a look to still discover within today’s<br />

systems the residual working pieces of nearly<br />

everything invented since that first fateful<br />

telecom connection was made so many years<br />

ago - when Alexander Graham Bell first<br />

called Watson the adjacent room. Further<br />

complicating modern communications is the<br />

EMEA 2013 • 11


Unified communications<br />

fact that no single person or business ever sits<br />

still. Today’s organizations seldom operate<br />

from a single monolithic location. Rather,<br />

their offices, systems, and information assets<br />

are distributed throughout the world - whether<br />

down the block, or downtown, or across<br />

cities, countries, and continents. In addition,<br />

they increasingly rely on a workforce that can<br />

prove just as widely distributed, if not more so,<br />

with remote teleworkers conducting business<br />

from wherever they happen to be. With so<br />

much distribution to span today, with so much<br />

territory to be efficiently and cost-effectively<br />

covered - both physically and virtually - it’s<br />

little wonder that the rally cry for the last<br />

decade has been “Unified Communications!”<br />

But again, for content to rule as king in<br />

our circles, systems need to be continually<br />

integrated to ensure its non-stop delivery.<br />

UC to the rescue<br />

Now, an enterprise or their trusted system<br />

integrator can certainly deploy a UC solution<br />

that glues together all of the different parts<br />

and pieces of business processes, systems,<br />

and networks - and many have done so using<br />

media gateways, routers, PBX platforms,<br />

session border controllers, and a broad range<br />

of database engines, dialers, call servers, and<br />

workflow management systems. However,<br />

as time and technology continue to march<br />

on, and businesses continue to focus on<br />

serving customers with the effective use of<br />

content, the skills necessary to knit together<br />

a patchwork of disparate elements are<br />

becoming more difficult to find in any one<br />

organization. For many, overarching solutions<br />

that can take the complexity out of deploying<br />

UC will be the key to getting the most out of<br />

the resources and information available.<br />

Over the years the UC solutions developed<br />

by global UC leaders, has given us the<br />

means to deal with the challenges that<br />

bubble to the surface in nearly every<br />

implementation. Even though these<br />

providers sell technology suites and<br />

comprehensive solutions, there is still an<br />

incredible amount of complexity involved<br />

in deploying and implementing them. The<br />

‘out of the box’ experience does not really<br />

lend itself to a ‘set it and forget it’ mindset.<br />

Almost every installation has unique<br />

requirements and ecosystem tie-ins that<br />

require additional pieces that facilitate the<br />

seamless bridging of old and new systems<br />

and networks. It’s these little chinks in the<br />

armor of the total solution that can present<br />

the biggest challenges - and where vendors<br />

can apply what they have learned to hammer<br />

out these final wrinkles.<br />

To put this argument into tangible<br />

perspective, let’s consider for a moment, as<br />

a working example, the latest innovation<br />

in Unified Communications (UC) from<br />

Microsoft - Microsoft Lync. This is a<br />

powerful suite of business process tools and<br />

features that easily combine communications,<br />

common files and databases, real-time<br />

collaboration with the convenience of desktop<br />

sharing, presence management capabilities,<br />

multiple forms of messaging and media<br />

interactions, as well as business processes<br />

such as those typically used in contact centers<br />

and service bureaus just to rattle off a few<br />

scenarios. Now, that’s a great deal of stuff<br />

to pack onto a single platform - a heck of a<br />

lot of content! - and it’s almost never spread<br />

across easy ‘greenfield’ landscapes. In fact,<br />

in most enterprises, a UC solution such as<br />

Lync will have to seamlessly integrate with<br />

multiple disparate platforms and systems<br />

within the business ecosystem, both old and<br />

new, both proven and emerging, and must<br />

likely make multiple and varied network<br />

connections to the outside world. And yet, of<br />

course, we assume all of this heterogeneity<br />

will merge neatly, unify seamlessly, and work<br />

without a hitch, completely transparent to all<br />

who use it. Because if not, what’s the point<br />

The complexity of such an undertaking<br />

was once considered daunting. Today,<br />

such unification is not only doable, and<br />

preferable, but expected. Working on the<br />

front lines of business communications<br />

we see this dynamic manifesting itself in<br />

multiple ways every day. In fact, according<br />

to reports from the global systems integrator<br />

Ingram Micro, small and medium enterprises<br />

see the efficiencies and flexibility offered by<br />

UC as not just a business preference, but,<br />

indeed, a competitive necessity. However,<br />

without large in-house IT staffs, most of<br />

these companies require a solution that can<br />

bridge not only the server and application<br />

environment in the LAN (and sometimes in<br />

the Cloud), but can also unify the different<br />

outside world connections, including SIP<br />

trunking, Internet access and security,<br />

Public Switched Telephone Network<br />

(PSTN) connectivity, and multiple video and<br />

application sharing features.<br />

The good news for many is that, along<br />

with the crush of technological innovation<br />

across the industry, a focus has emerged<br />

from unique market leaders for bridging<br />

these varied and disparate ecosystems in<br />

simple and efficient ways. The Lync Express<br />

appliance from Sangoma is one such all-inone<br />

solution that covers all of the common<br />

integration pain points that can make UC<br />

and Lync a major headache for smaller<br />

companies that are running lean. This<br />

was precisely the case for Euroline AS, a<br />

distributor of telecommunications equipment<br />

and solutions based in Drammen, Norway.<br />

A small enterprise with locations in Norway<br />

and Denmark, Euroline’s management<br />

team was eager to replace a failing PBX<br />

and gain the advantages of UC through<br />

deploying Lync. However, without the correct<br />

internal expertise, they required a simple<br />

and comprehensive solution. According<br />

to technical manager Rune Jacobsen, who<br />

had no previous experience with Lync, the<br />

configuration was quite intuitive and easy<br />

to navigate, and the change was completed<br />

without disruption to everyday business.<br />

Without consistent delivery, content is<br />

inconsequential<br />

What has driven the need for this and so<br />

many other innovative solutions for unifying<br />

communications in the business world The<br />

same hunger we have in our personal worlds:<br />

an ever-constant demand for delivered<br />

content. Think about it. Every professional in<br />

the business world is also an avid consumer<br />

of content in their personal worlds, and<br />

the same expectations that drive them at<br />

home are those that, either consciously or<br />

unconsciously, are also driving them at work.<br />

There exists a constant demand for immediate<br />

access to rich content, delivered in ubiquitous<br />

and unimpeded ways. Granted, this is easily<br />

said, but not so easily done; however, and<br />

at the risk of invoking yet another cliché,<br />

necessity is the mother of invention.<br />

Thus, in markets around the world,<br />

enterprises of all sizes continue exploring<br />

UC-like solutions such as Lync to satisfy<br />

their content-hungry workforce. They want<br />

that familiar unified frontend that accesses<br />

the myriad of applications, networks, and<br />

technologies residing in the backend -<br />

separate, but connected - to deliver the<br />

seamless and consistent content we all so<br />

commonly crave.<br />

The desire and expectation of the business<br />

owner is not just for content, then, but<br />

for continuously connected content, with<br />

dependable distribution and delivery to all<br />

company-related constituents and consumers<br />

- both internal and external - without the<br />

prohibitive costs and complexities associated<br />

with such connectivity. This is why, for my<br />

money, sure, content may be king… but<br />

delivery will always reign! •<br />

12 • EMEA 2013


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Data traffic<br />

Managing rising data traffic to increase data revenues<br />

by Niall Norton, CEO, Openet<br />

Within a few years, ten per cent of all mobile connections will use 4G, but will generate<br />

45 per cent of the traffic. With increased data traffic comes additional costs and, as well, a<br />

chance to sell ever more sophisticated services to build revenue. Operators’ are becoming<br />

digital service providers and partners to those who provide digital services and content -<br />

everything from home automation services, to cloud based entertainment to mobile health<br />

products. Telecoms are becoming content delivery networks.<br />

Niall Norton is Openet’s Chief executive officer and is a member of its Board. Mr Norton previously served as Openet’s Chief financial<br />

officer. Prior to joining Openet, Mr Norton served as Chief Financial Officer and Corporate Secretary of O2 Ireland, the Irish<br />

operations of O2 Group Telecommunications PLC. Mr Norton also serves as a director of Clever Communications Limited, a mobile<br />

virtual network operator.<br />

Niall Norton holds a B.C. degree in Commerce from University College Dublin and is a Fellow of the Institute of Chartered<br />

Accountants in Ireland.<br />

I recently read that in 2012 only one per<br />

cent of global mobile connections were on<br />

4G networks, but this one per cent drove 14<br />

per cent of all global mobile data traffic. 4G<br />

has been described as the fastest growing<br />

mobile technology ever and market forecasts<br />

predicting that by 2017 ten per cent of all<br />

global connections will use 4G, but will<br />

generate 45 per cent of the world’s mobile<br />

data traffic. This will help account for the<br />

fact that data usage is continuing to grow,<br />

as is the penetration of mobile devices with<br />

Internet connectivity. According to recent<br />

Cisco 2013 VNI forecast, Western Europe is<br />

second only to North America in the growth<br />

of connected mobile devices with ten per<br />

cent CAGR from 2012 to 2017. Increasingly,<br />

many of these devices will be able to access<br />

LTE networks, with 96 per cent of European<br />

operators surveyed by Informa Telecoms &<br />

Media claiming to have a live or pending<br />

LTE network.<br />

These figures are useful in setting the<br />

context. Just a quick look at the websites<br />

of mobile operators and we can see how<br />

they’ve changed in a few years - they’re<br />

now data centric. In many bundles voice<br />

calls and text messages are unlimited, and<br />

it’s data usage that has caps (by volume,<br />

and increasingly speed). The next step in the<br />

operators’ evolution is moving to become<br />

digital services providers and partners<br />

to those who provide digital services.<br />

Several operators are now providing digital<br />

lifestyle products and services - from<br />

home automation services, to cloud based<br />

entertainment to mobile health products.<br />

Telecom networks have come a long way<br />

from being a phone company and are poised<br />

to be content delivery networks.<br />

At the heart of this evolution - services that<br />

require data.<br />

14 • EMEA 2013


Data traffic<br />

“Innovative operators are managing the mobile data gap, and many have taken steps to<br />

better optimize mobile data traffic. Operators have reported optimized data traffic growth due<br />

to such measures as web and video optimization, reduction in peer-peer traffic, as well as<br />

tight control and enforcement of fair usage policies.”<br />

With this increase in data traffic comes both<br />

opportunities and threats. The network and<br />

infrastructure CapEx costs, as well as the<br />

ongoing OpEx, are significant threats. The<br />

opportunities are there too - the optimal<br />

success formula being how operators<br />

best turn this massive increase in usage<br />

into profit. Many of the most innovative<br />

operators are rolling out LTE networks,<br />

seeing average data usage and revenues<br />

increase and facing the ever increasing data<br />

upsurge with a confidence that this will<br />

enable them to sell many more value based<br />

products and services to their customer base.<br />

And they’re doing so profitably.<br />

The key to success is to manage the mobile<br />

data gap - that is the data revenue per<br />

subscriber is greater than the data traffic<br />

cost (and associated cost to serve) per<br />

subscriber for delivering data. It is not just<br />

a case of managing down network costs to<br />

serve - it’s also clearly about increasing<br />

data enabled revenues.<br />

Innovative operators are managing the<br />

mobile data gap, and many have taken<br />

steps to better optimize mobile data traffic.<br />

Operators have reported optimized data<br />

traffic growth due to such measures as web<br />

and video optimization, reduction in peerpeer<br />

traffic, as well as tight control and<br />

enforcement of fair usage policies. These<br />

controls and traffic management initiatives<br />

are the start of an increased focus on proactive<br />

data traffic management, and we will<br />

continue to see an increase in their range and<br />

implementation over the next few years.<br />

Generating increased revenues on the other<br />

hand requires operators to be able to offer a<br />

more rich and diverse portfolio of ‘mobility<br />

enabled’ solutions to their customers<br />

directly, and indirectly via content partners.<br />

Such services include video, location based<br />

services, content and real time services that<br />

maximize the ever increasing features of<br />

their devices. Revenues also are now being<br />

also generated from partner deals where<br />

mobility is transforming existing business<br />

models, cloud based service offerings and<br />

machine-to-machine business models.<br />

These services are real time typically to<br />

make them valuable.<br />

Cost control to revenue generation<br />

When data usage started to cause some<br />

alarm bells to ring, many operators bought<br />

policy management systems to add controls<br />

to network usage. Typically the first use<br />

case was to implement fair usage policies.<br />

Policy management systems have come<br />

a long way since the early days of fair<br />

usage, and they’re now used by marketing<br />

in product development, as well as by<br />

network. Knowing which traffic to apply<br />

required bandwidth to, and what rules<br />

to apply to different traffic types, from<br />

different customers, all helps in controlling<br />

network cost. For example, deciding to<br />

off-load one traffic type (e.g. video) to wifi<br />

for certain customers, may result in cost<br />

optimization. Using the same policy system<br />

an operator may decide to allocate a higher<br />

QoS to traffic for one content partner for<br />

streaming videos, rather than just best<br />

effort - this example shows how policy is<br />

being used for product development as well<br />

as network optimization.<br />

However, traffic (and associated cost)<br />

optimization is only one part of the equation.<br />

The other is to increase data revenues at a<br />

fast enough rate. This comes from looking at<br />

increasing revenues for the delivery of data<br />

services and also looking at new business<br />

models and revenue sources.<br />

We know that mobile data can increase<br />

revenues and overall APRU, a challenge<br />

many operators face is that revenue uplift<br />

will not be enough to balance the cost<br />

of providing and maintaining networks<br />

to cater for the increases in mobile data<br />

traffic volumes. For many operators this<br />

is still a significant strategic issue, while<br />

others are meeting this challenge and are<br />

now starting to implement controls to<br />

decrease average network costs. The main<br />

challenge is now to consistently increase<br />

data revenues and to examine new revenue<br />

streams, which will ensure that mobile<br />

data revenues exceed costs and provide a<br />

solid foundation in which to roll out new<br />

networks and services.<br />

We’ve seen the move away from all you<br />

can eat plans to tiered data plans, with<br />

tiers typically volume based. This provides<br />

a more equitable approach to pricing and<br />

also attracts low volume customers, for<br />

whom an all you can eat plan doesn’t make<br />

economic sense. The addition of speed<br />

tiers is starting to happen in some countries<br />

(e.g. with LTE networks), and some<br />

operators are now offering off-peak time<br />

based pricing for mobile data to try and<br />

help balance network traffic. Tiered pricing<br />

of data is just the start - operators now<br />

know that they need to deliver data enabled<br />

services that customers will value, and pay<br />

for accordingly.<br />

It doesn’t end in tiers - The emergence of<br />

dynamic services<br />

Increases in sophistication in customer<br />

behaviour are radically changing how<br />

operators develop and market their<br />

services. The immediacy of customers’ data<br />

experience is resulting in the continuous<br />

marketing loop of analyzing behaviour,<br />

developing offers, launching and promoting<br />

services, and back to campaign measurement<br />

at a faster rate than ever before (see Figure<br />

1). Add new services from partners into the<br />

mix and the process becomes more complex<br />

as well as faster. New offer and service<br />

development will become increasingly<br />

dynamic, as operators continue to develop<br />

their pricing and product strategies based on<br />

value, rather than be involved in a race to<br />

the bottom by selling a generic commodity.<br />

As operators look at how to best monetize<br />

these new and enhanced services, they<br />

will need to look at pricing and packaging<br />

flexibility that exists in legacy systems and<br />

ask that it provides the flexibility and fast<br />

time to market that dynamic data driven<br />

services will require.<br />

Dynamic Services enables value based<br />

pricing options to be presented to<br />

appropriate segments in real-time based<br />

on their context and network usage<br />

patterns. This requires real-time visibility<br />

so that customers can see when they are<br />

approaching thresholds and select from the<br />

available options e.g. to purchase additional<br />

data entitlements or accept a slower<br />

network speed.<br />

Dynamic Services are enabled by advanced<br />

PCC (policy and charging controls) systems.<br />

EMEA 2013 • 15


Data traffic<br />

In addition to network access control and<br />

data monetization, PCC systems have access<br />

to real-time customer usage data which can<br />

be harnessed into customer intelligence to<br />

drive service innovation. Recent advances<br />

in PCC have seen the addition of interaction<br />

software which provides a secure channel<br />

to the customer device, which drives realtime<br />

customer interaction. This provides<br />

a step change in the evolution of PCC<br />

systems which speeds up the marketing<br />

continuum illustrated in Figure 1, by proving<br />

real-time offer presentation, interaction,<br />

communications and purchasing.<br />

There are many successful examples of<br />

Dynamic Services being launched by<br />

operators - ranging from data, application,<br />

speed ‘bolt-ons, to shared data plans,<br />

to service passes. What is consistent is<br />

that they need real-time charging and<br />

monetization, and policy is now being<br />

used to help develop products to increase<br />

revenues, as well as control costs. Realtime<br />

charging integrated with policy is now<br />

a given in providing the foundation for data<br />

offers. Operators are now evolving this to<br />

the next stage and delivering engagement<br />

with the policy and charging control<br />

infrastructure direct to subscribers, who can<br />

view and purchase services, and to content<br />

providers, with controlled access to Policy<br />

and Charging functions.<br />

PCC integrated with a real-time<br />

engagement capability is the key to<br />

operators delivering a Dynamic Services<br />

strategy and giving customers the choices<br />

needed to let them spend their money on<br />

the services that they want.<br />

Real-Time - The foundation for data<br />

monetization<br />

In order for operators to increase data<br />

revenues by offering innovative plans<br />

and dynamic services they need to be<br />

supported by systems that provide the realtime<br />

capabilities that customers need when<br />

buying and using data enabled services.<br />

For customers to understand and take<br />

advantage of compelling offers ‘right<br />

now’ they must be able to explore and<br />

purchase ‘right now.’ As operators move<br />

into a world of value based charging with<br />

its shared plans, sponsored services, and<br />

context specific passes, the emergence of<br />

the network as a platform drives us to the<br />

inevitable conclusion - with data and content<br />

we have to do everything, not just some<br />

things, in real-time.<br />

Real-time data is the key to securing a<br />

sustainable place in the value chain for<br />

operators. It enables customers to make<br />

more choices, faster. It allows QoS to be<br />

built in to an infrastructure that now plays<br />

the role of marketing enabler. Operators<br />

can expand real-time PCC direct to the<br />

device, run real-time analytics and by<br />

moving real-time capabilities direct to the<br />

customer deliver real customer choice and<br />

deliver value. This is starting to happen<br />

and operators are now seeing that with the<br />

potential of real time operations in the hands<br />

of the business, anything is possible.•<br />

An insight into the future!<br />

You are a decision maker;<br />

You understand your business;<br />

Do you understand how ICT affect the markets,<br />

the countries and the people you serve<br />

Gain insight into how ICT leaders see the future.<br />

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their personal assessment of the issues that drive<br />

the ICT revolution and change the lives of us all.<br />

16 • EMEA 2013<br />

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Quality content distribution<br />

Content is king - but quality reigns<br />

by Hui Zhang, Co-Founder and CEO, Conviva<br />

The TV industry is undergoing a massive transformation in the delivery of content to<br />

consumers. There are new ways to deliver content to meet the demands of ‘TV Everywhere‘<br />

and social entertainment. Over-the-top (OTT) video delivery - delivery via the Internet to<br />

any connected screen - is changing the economics of content delivery. Since the Internet<br />

was not designed for the quality video consumers expect, content providers are challenged<br />

to produce multiple Internet-streaming formats and different ways to advertise for each.<br />

Dr Hui Zhang is a Co-Founder and CEO of Conviva; he brings 20 years of pioneering research experience to the design and construction<br />

of media control platforms. As a professor of computer science at Carnegie Mellon University (CMU), Dr Zhang has established himself<br />

as a world authority on Internet Quality of Service (QoS), video streaming, network control and Internet architecture.<br />

Dr Zhang’s End System Multicast (ESM) research group at CMU pioneered the overlay multicast architecture and developed the world’s<br />

first peer-to-peer live streaming system. His paper on ESM won the ACM SIGMETRICS Test of Time Award in 2012 for its significant<br />

impact on research, methodology, application and transfer in the last decade. His 4D research project advocated the network control<br />

architecture that separates control logic from data devices, and was the precursor to the Software Defined Networks (SDN) initiative.<br />

The TV industry is undergoing a massive<br />

transformation in the delivery of content to its<br />

consumers. With more devices for watching<br />

content, come new techniques of content<br />

delivery particularly to meet the demands of<br />

TV Everywhere and social entertainment. We<br />

have seen the popular uptake of over-the-top<br />

(OTT) video delivery or delivery through a<br />

facilities-based service provider that can be<br />

sent to any connected consumer electronics<br />

device, regardless of location. Yet, the fact of<br />

the matter is, the internet was not originally<br />

designed for quality online video delivery.<br />

To meet the realisation of TV Everywhere<br />

consumers are coming to expect, content<br />

owners and publishers are faced with<br />

the technicalities of producing multiple<br />

internet-streaming formats use different<br />

types of authentication methods, and also<br />

have different ways of inserting adverts.<br />

Underpinning all this is a far greater<br />

challenge; maintaining high video quality<br />

despite external factors and optimising<br />

delivery without interruption to the end user.<br />

Dr. Zhang suggests that there are a few<br />

hurdles to overcome. Here, he discusses the<br />

challenges with TV Everywhere or rather<br />

‘content everywhere.’<br />

The TV Everywhere paradigm<br />

As imagined, there are a variety of new<br />

business and operational models emerging.<br />

TV Everywhere, an innovative business<br />

model, has been a welcome development<br />

within the Pay TV industry and is gaining<br />

traction. Park Associates research recently<br />

revealed 70 per cent of European PayTV<br />

area are able to access TV Everywhere.<br />

OTT services such as Netflix and Hulu have<br />

made significant strides and have proved<br />

popular with consumers particularly with<br />

attractive operational models alike Video On<br />

Demand (VoD). Its low-cost packages and<br />

access to content has caused broadcasters and<br />

PayTV providers to develop these innovative<br />

models to ensure they do not lose their large<br />

subscriber base.<br />

Added to this, most multiscreen TV content<br />

has until recently been served as VoD. The<br />

simplicity of obtaining the rights to VoD<br />

content has allowed OTT providers to boost<br />

their viewership numbers. Despite this, the<br />

majority of consumers’ time is still spent<br />

watching linear TV in their home and come to<br />

EMEA 2013 • 17


Quality content distribution<br />

“Delivering different types of content to different devices is especially complex when it<br />

comes to processes and distributing across networks. Live content particularly must be<br />

authenticated by subscribers on authorised devices before it can be viewed, adding yet<br />

another level of complication.”<br />

expect this type of content on-the-go. Events<br />

such as The 2012 Olympics and Paralympics<br />

pulled in record number of online viewers<br />

around the world using different devices to<br />

witness history being made. Consumers want<br />

to watch more live content wherever they are<br />

providing an opportunity for broadcasters<br />

and Pay TV providers to take the competitive<br />

advantage and secure its position far ahead of<br />

OTT service providers.<br />

To achieve this however, it is critical that<br />

certain elements are guaranteed. While the<br />

availability of different types of content is<br />

key, equally valuable is the assurance that the<br />

content will be delivered without interruption.<br />

Authentication and content access must be<br />

seamless and guaranteed and every viewer<br />

ideally needs to enjoy the high quality<br />

viewing experience on every size screen and<br />

from every type of network.<br />

Getting to the finish line<br />

In the race to gain this competitive edge,<br />

certain challenges need to be addressed<br />

before TV Everywhere or OTT can really<br />

take off. Firstly making content available<br />

by securing the rights to broader content<br />

distribution such as live content is necessary.<br />

PayTV providers have the benefit of being<br />

able to extend in-home access to live TV<br />

content, without incurring additional charges.<br />

OTT providers must negotiate new contracts<br />

for multiscreen live TV and do not have<br />

the large subscriber base and budgets to<br />

consolidate their case.<br />

Delivering different types of content to<br />

different devices is especially complex when<br />

it comes to processes and distributing across<br />

networks. Live content particularly must be<br />

authenticated by subscribers on authorised<br />

devices before it can be viewed, adding yet<br />

another level of complication.<br />

Coupled with the variety and availability<br />

of new content as well as the processes<br />

involved, consumers are in need of<br />

additional education about the realms of<br />

TV Everywhere services. Knowledge of<br />

what content is available across devices<br />

fragmented and is an area that is in need of<br />

support. What we do know however is that<br />

according to ABI Research, in addition to<br />

the computer, Apple’s iPad continues to be<br />

the most supported TV Everywhere device,<br />

particularly in the US market. In fact, it<br />

suggests that iOS and Android smartphones<br />

and tablets capture the lion’s share of<br />

device support, besting even the popular<br />

game consoles, reinforcing the importance<br />

mobility plays in the future of the TV<br />

Everywhere market.<br />

Quality viewing = opportunities for revenue<br />

Beyond variety, security and availability,<br />

quality remains a significant hurdle to<br />

overcome. We know that the technology is in<br />

place to offer wider reaching TV Everywhere<br />

services. Investments are being made in<br />

varying amounts across different regions<br />

towards building robust infrastructure that<br />

will deliver online video without interruption.<br />

The fact is a huge overhaul and massive<br />

investment is not necessarily the solution.<br />

Software is available today that can pre-empt<br />

the level of optimisation that is necessary<br />

to resolve quality issues and interruptions<br />

to video. By switching between content<br />

delivery networks (CDN) such technology<br />

can ensure that video is delivered optimally<br />

allowing for fast start up times, no buffering<br />

and at a highly sustained bitrate. To achieve<br />

this level of quality however, broadcasters,<br />

publishers and content owners need to be<br />

armed with the right data that illustrates the<br />

Quality of Experience (QoE) for each of<br />

their viewers. This knowledge and insight is<br />

extremely valuable as equipping publishers<br />

with real-time QoE data will mean revenue<br />

opportunities can be leveraged to help grow<br />

audience numbers and consolidate the brand.<br />

Publishers are particularly interested in seeing<br />

how long each viewer watches and how<br />

often each viewer returns to watch more. By<br />

eliminating buffering, avoiding video start-up<br />

failures and improving video bit-rates across<br />

all devices, a typical premium long form<br />

Video On Demand provider, with 10 million<br />

views per month, should increase revenue by<br />

approximately £1.9 million monthly.<br />

The concept of TV Everywhere is exciting<br />

and clearly within reach, yet challenges<br />

remain. TV Everywhere will allow content<br />

owners to extend the relationship they<br />

have with current subscribers onto digital<br />

platforms in a personalised way and<br />

represents expansive opportunities for<br />

revenue. With this in mind, it is important<br />

to note that while variety and availability of<br />

content will determine the success of TV<br />

Everywhere, QoE will determine its purpose<br />

and will reign supreme. •<br />

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18 • EMEA 2013


The world is<br />

greedy for data.<br />

Can you<br />

keep serving<br />

Social networks, video on demand, OTT<br />

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hunger for bandwidth. Where is the extra<br />

spectrum coming from - and who’s funding<br />

the network upgrade<br />

The 1 conversation that matters<br />

Participate now, visit world2013.itu.int


Telco evolution<br />

Content talks - but what’s the message<br />

by George Nikoloudis, COO, OTEGLOBE<br />

Although most of their market will still come from data and voice services, the telecom<br />

industry needs to reinvent itself in the next ten years. The rise of non-traditional services,<br />

explosive Internet demand, shifts in customer behaviour, an always connected digital world<br />

and innovations brought by OTT will force today’s telcos to choose between traditional<br />

revenue streams or look to higher growth services at a higher risk. Telcos need to climb the<br />

value chain of applications, content and media to grow.<br />

George Nikoloudis is OTEGLOBE’s Chief Operating Officer; he was previously OTEGLOBE’s Director of Voice Sales Services. Prior<br />

to OTEGLOBE, Mr Nikoloudis held a number of high-level positions at MCI Inc, later acquired by Verizon Business. As a Country<br />

Manager, Mr. Nikoloudis was responsible for the launch and operation of the regional office in Athens, which covered the markets of<br />

Greece, Cyprus, Bulgaria, Romania and FYROM.<br />

George Nikoloudis holds a University Degree in Electrical Engineering from the UNSW University of Sydney and a specialization<br />

in Informatics.<br />

Content booms in a connected world<br />

Remember when the Internet was known as<br />

the “information super highway” Back in<br />

these days, users connected to the Internet<br />

primarily through dial-up networking to<br />

look for information and email messages and<br />

then disconnect once their job was complete,<br />

freeing the phone line for traditional phone<br />

calls. Nowadays things are a little bit different<br />

but the context is the same: Spread the<br />

knowledge around the world and stay tuned in<br />

a global village called the <strong>World</strong> Wide Web.<br />

Today, the Internet isn’t just a side activity,<br />

it’s the main dish. It is a social medium<br />

where people are engaged. We shop online,<br />

do business online, we play games online,<br />

we read the news online, we listen to music<br />

on line, we watch TV and movies online,<br />

we connect on-line with social media, it’s<br />

a never-ending list. Our kids expect to find<br />

nearly all types of content available online<br />

and on all kind of different devices. Mobile<br />

devices, such as smartphones and tablets, as<br />

well as connected internet TV are likewise<br />

becoming the most popular and enjoyable<br />

medium for entertainment services.<br />

And what have we done as an industry to feed<br />

this content hungry, always connected Homo<br />

Sapiens We built high-speed, broadband<br />

connections to replace the old dial-up lines,<br />

we run thousand of kilometers of optical<br />

fibres around the globe, added mobility<br />

and layer-upon-layer of complexity on our<br />

network infrastructure to make sure that our<br />

services would always be there when people<br />

needed them.<br />

Oh, and by the way, somewhere along the line<br />

we made money, we increased our revenues<br />

and the size of our business, we transformed<br />

ourselves from simple voice carriers to fixed,<br />

mobile, internet, etc. service providers.<br />

So since our industry, the telecom industry, has<br />

benefited so much by this content boom during<br />

these last 30 years why’s everyone complaining<br />

Stop shouting! Listen to what the content has<br />

to say…..<br />

When it comes to our industry today’s<br />

customers have one thing in common: they<br />

are ignorant about the players in the content<br />

delivery chain. They don’t know - and<br />

couldn’t care less - who owns the content<br />

when they watch a movie on their iPad or<br />

who is responsible for their call when they<br />

use Skype.<br />

People in our industry say that this rapidly<br />

changing customer behaviour is reshaping the<br />

competitive landscape of Traditional Telecom<br />

Operators. Why<br />

Because on the one hand new entrants, also<br />

known as ‘over-the-top’ or OTT players<br />

20 • EMEA 2013


Telco evolution<br />

are offering free services via Internet<br />

directly to the end-customers, our eye-balls,<br />

eliminating voice and data revenue streams<br />

and on the other hand heavy network and<br />

IT investments are still required just to keep<br />

up with the traffic explosion coming from<br />

these same OTT sources, that generate little,<br />

if any, incremental revenues. It seems like<br />

moving in circles, but wasn’t it always like<br />

that More content needed bigger networks<br />

that connected more people asking for more<br />

content, it’s a never ending story. So what’s<br />

the difference today<br />

Become a utility or be like Google What are<br />

the options<br />

Sustaining new revenues is as important today<br />

for traditional telecom operators as it was<br />

when voice became the cash cow for potential<br />

revenue streams. International pressure on<br />

roaming and terminating tariffs diminishes<br />

high margin products like voice and text<br />

messages, paving the way for the rise of new,<br />

non-traditional services i.e. social media,<br />

M2M, etc. with tighter and riskier margins.<br />

This fundamental shift towards a different<br />

revenue mix and eroding margins is<br />

shaking up the industry and is introducing<br />

new metrics of service performance as<br />

well, like accelerating content delivery<br />

and overcoming problems of bandwidth<br />

bottlenecks and latency over long distances.<br />

Moreover with medium and large businesses<br />

and corporations moving much of their IT<br />

infrastructure to the cloud, the speed, quality<br />

and assured delivery of corporate content<br />

and applications over the cloud, as well as<br />

the increasingly vital e-commerce content,<br />

is also sensitive to the inherent delays - path<br />

congestion along the way - and vulnerabilities<br />

of public Internet.<br />

So it does not come as a surprise that<br />

trying to remain competitive more telcos<br />

are focusing on content delivery networks<br />

(CDN), that promise to increase and, most<br />

importantly, assure the speed and quality<br />

of content to the end user as if the origin -<br />

content server is located right down the<br />

corner. Some telcos are investing in CDN<br />

technologies to shape up their own networks<br />

for the growing content opportunity. Others<br />

are integrating CDN solutions of third<br />

parties in their network and service offering,<br />

either by acquiring or by partnering with<br />

pure-play CDN providers. Lately, there<br />

has also been a lot of debate in the CDN<br />

industry as to whether or not a federated<br />

CDN model will take place amongst<br />

independent operators taking on bilateral<br />

agreements or exchange based models and<br />

the establishment of CDN exchanges.<br />

But is this the magic solution for our industry’s<br />

growth Will another technological advance help<br />

our business to transform into highly efficient<br />

and innovative media entities, the Google, Apple<br />

and Amazon of the future Although moving<br />

higher up the value chain is raising the bar again<br />

for our industry, setting new and higher delivery<br />

standards, it is also sending another message: that<br />

all the key players in the value chain will need<br />

to co-operate in the immediate future to deliver<br />

content over managed networks instead of public<br />

Internet to improve performance and uptime,<br />

lower overall costs, improve quality of service<br />

and in the end improve the end user experience.<br />

Global experienced leading operators<br />

with extensive network infrastructure<br />

and presence in multiple markets, smart<br />

content distributors with efficient delivery<br />

platforms and creative OTT players with their<br />

innovative solutions should work together to<br />

build new business models, form alliances<br />

and commercial agreements and pave the<br />

way for the digital world of the future.<br />

But what about the smaller regional players<br />

or specialized wholesale providers What<br />

should a regional service provider do in the<br />

meantime to address the content explosion<br />

and the fundamental shifts towards new<br />

services in this new and unpredictable<br />

digital landscape<br />

I’m a regional player. What can I do now<br />

Every player in our industry should need to<br />

be prepared for the fundamental shift in the<br />

market by deciding which markets to address<br />

and which business models - tools to use in<br />

the short/mid -term.<br />

What the content tells us is that no matter<br />

our size and geographic reach, sitting on<br />

the fence is no longer an option as network<br />

costs are increasing and the revenues<br />

coming from traditional ‘cash cow’ services<br />

are starting to stagnate.<br />

A good short term plan to compete in the<br />

different parts of the value chain is to adopt<br />

a “reliable & smart pipe’ model focused<br />

on efficient connectivity selling, targeting<br />

CAPEX optimization and flexible cost<br />

structures that are the key success factors<br />

in securing customer loyalty and long term<br />

contracts. A short/mid-term approach is to<br />

address specific carriers, content providers<br />

and OTT players alike and co-operate<br />

to create better value for them and their<br />

customers by developing innovative, reliable<br />

and highly adaptable tailor-made solutions.<br />

Expansion into new products and adjacent<br />

markets along the value chain will also be<br />

necessary, but for a regional operator a high<br />

risk, high investment approach towards new<br />

products and services could only form part<br />

of a transformation process in the mid/longterm.<br />

We have to keep in mind that although<br />

new services such as cloud computing, will<br />

experience high revenue growth, they have<br />

significantly lower margins (less that 15<br />

per cent on an average) when compared to<br />

traditional voice and data services.<br />

The approach to evolve into a smart, next<br />

generation operator targeting specific<br />

markets might look conservative or even out<br />

fashioned to some, but at the end of the day<br />

there is no standard ‘one size fits all’ model,<br />

every operator will have to take their own<br />

decisions on how far they want to go and<br />

which path best suits their strategic model,<br />

capabilities and heritage.<br />

So what will it look like in ten years from<br />

now<br />

Few industries will have to re-invent<br />

themselves as the telecom industry will<br />

have to in the next 10 years. The rise of<br />

non-traditional services associated with the<br />

explosive internet demand, shifts in customer<br />

behaviour in an always connected digital<br />

world and the innovations brought in the<br />

supply of services by OTT players create<br />

strategic challenges for the telecom operators<br />

of today putting them at the crossroads<br />

between sticking to the traditional revenue<br />

streams or building new partnerships and<br />

tapping into higher growth services but at a<br />

higher risk.<br />

Although more than 65 per cent of the market<br />

is still expected to come from core telecom<br />

services (data and voice) in the next decade,<br />

the operators will need to move along the<br />

value chain to more applications, content and<br />

media-based solutions to preserve such as<br />

their growth potential.<br />

In a few words, our industry will need to<br />

transform not only to address new customer<br />

demands but also to adapt to the challenges of<br />

the new digital world.<br />

The content speaks now and we have to<br />

listen:<br />

Human evolution has always been about<br />

adaptability and co-operation, not survival of<br />

the fittest! •<br />

EMEA 2013 • 21


Communication service providers<br />

How CSPs can stay competitive<br />

by Gordon Rawling, Oracle Communications<br />

Competition has been hard on CSPs (communications service providers). Price competition<br />

- a race to the bottom - mines their businesses; still, CSPs don’t need to fight on price.<br />

Packages tailored to the individual user, based on usage data they already have, can help<br />

CSPs offer quality services which cannot be offered at the cheap, commoditised end of the<br />

market. Skilfully tailored services, based on analytics and insight, can fight churn as well as<br />

be a key to customer acquisition.<br />

Gordon Rawling is the Director of EMEA Marketing for Oracle Communications; he joined Oracle Communications as senior marketing<br />

director for market development in the EMEA region. Prior to his role at Oracle, Mr Rawling worked for Amdocs where he held a<br />

variety of roles, from delivery to product marketing. Prior to Amdocs, Mr Rawling worked for EDS, performing management consulting,<br />

relationship management and delivery roles throughout the organisation.<br />

Gordon Rawling graduated from Salford University with a degree in computer science.<br />

The Internet has done much to change the<br />

way we live and how we work and entertain<br />

ourselves, but our loyalty to those companies<br />

who first got us online, or who we’ve used<br />

for many years, is still something that can<br />

never be taken for granted. Especially if those<br />

companies fail to remain competitive with<br />

new entrants flooding the communication<br />

service provider (CSP) market.<br />

However, being competitive is no easy riddle<br />

to resolve. It would be easy to assume it is all<br />

about price but the truth is far from it, even in<br />

these straitened times. Our Internet access in<br />

particular has gone from being a nice to have<br />

to an essential in many homes.<br />

Network infrastructure is also coming under<br />

increasing pressure from industries. While<br />

consumers have been shopping, banking,<br />

reading and connecting with friends for<br />

some time, the rise of Machine-to-machine<br />

communications (M2M) to automate<br />

processes in industries including healthcare<br />

insurance, automotive, logistics, retail and<br />

utilities is a much newer phenomenon. The<br />

increasing volume of traffic related to M2M<br />

makes it even more important for CSPs<br />

to understand usage trends if they want to<br />

improve their service offering and find a way<br />

to monetise.<br />

But unlike other utilities where value for<br />

money relates to an intersection of price,<br />

availability and reliability, CSPs find a far<br />

greater array of customer preferences and<br />

expectations. Some customers are more<br />

motivated by speed, some by price, some by<br />

quality of service, and some by download<br />

limits or factors such as bundled content<br />

or value-added-services. However, none of<br />

those potential differentiators are mutually<br />

exclusive. Most consumers are likely to be a<br />

combination of these factors, skewed more<br />

or less towards price depending on the value<br />

they perceive their Internet service to provide<br />

them with, which is why M2M services are so<br />

crucial to CSPs.<br />

This means that first and foremost, the CSP<br />

must understand each customer and their<br />

22 • EMEA 2013


Communication service providers<br />

individual needs: from those willing to pay a<br />

premium for a better, faster service to those<br />

who just need a simple entry level service.<br />

For example, a customer who values a<br />

choice of on-demand premium content and<br />

high, uncapped speeds for streaming or<br />

downloading media and is online for several<br />

hours every night is likely to take a view that<br />

what they’re looking for in a CSP goes far<br />

beyond simply finding the lowest price. They<br />

want a quality of service which rarely comes<br />

cheap and they are most likely prepared to<br />

pay as long as the service they receive meets<br />

their expectations.<br />

Against such expectations, the CSPs don’t<br />

need to be fighting on price with every other<br />

company. It needs to be looking at what its<br />

tailored package for that user, based on the<br />

data they have, looks like and ensuring that it<br />

is competitively priced for the offering.<br />

It may seem obvious, but CSPs need to<br />

delve into their customer data and provide a<br />

customer centric offering based on genuine<br />

needs and behaviours rather than focusing<br />

on the offers of their rivals, because some of<br />

those rivals will be targeting very different<br />

customer segments.<br />

The market is becoming crowded and CSPs<br />

cannot afford to lose sight of their customers.<br />

A crowded marketplace<br />

Each day, millions of tablets, smartphones,<br />

smart TVs and home PCs connect to the<br />

Internet, fuelling an insatiable appetite for<br />

entertainment, online shopping, social media,<br />

news and on-demand content from film and<br />

television to music.<br />

There is no shortage of customers who need<br />

Internet services, but there is also no shortage<br />

of service providers vying for their custom.<br />

Today, there is an unprecedented amount of<br />

competitive offers and loss-leading deals on<br />

broadband being offered by traditional CSPs<br />

and new entrants such as retailers.<br />

The economics are fairly simple on the<br />

face of things. A supermarket, for example,<br />

which makes millions on its core groceries<br />

business can afford to subsidise Internet<br />

services in the same way it may also do so<br />

for credit cards or insurance. Such tactics<br />

are businesses’ pursuit of building a brand<br />

which touches every area of a customer’s<br />

life, finding cross-selling opportunities amid<br />

the customer data they collect.<br />

Similarly Internet services can be a loss<br />

leader for retailers looking to shift other<br />

goods. Recently we have seen UK high<br />

street retailer John Lewis offering an initial<br />

six months free Internet service to customers<br />

buying connected devices, such as tablets,<br />

PCs or smart TVs.<br />

But for those businesses which only sell<br />

Internet services the ability to compete on<br />

price is being squeezed. A loss-leader for<br />

them is simply a loss. And attracting new<br />

customers on a profitable basis is increasingly<br />

tricky for CSPs in such a climate if they try to<br />

compete purely on price.<br />

However, it is worth going back to the earlier<br />

point that not all consumers want the cheapest<br />

possible broadband access. In fact, as we<br />

become more sophisticated online citizens, it<br />

is quite likely more and more consumers want<br />

more from their Internet provider than a bogstandard<br />

Internet connection.<br />

Many consumers prioritise quality of<br />

service, the breadth of services offered<br />

- such as premium movie and television<br />

services - and the overall bundle they are<br />

being provided with. Stripping out any frills<br />

and service niceties therefore simply to offer<br />

the cheapest possible service may represent<br />

a false economy, or certainly may only be<br />

right for an entry level product for light<br />

users of the web.<br />

Free, a French CSP, is testament to this. A<br />

disruptive force in the telecommunications<br />

market, Free was the first tripleplay provider<br />

in the country offering broadband, landline<br />

and IPTV services. Having secured a 3G<br />

license in 2010, the company launched its<br />

mobile service in 2012 and secured 8%<br />

of the total market by the end of the year.<br />

Offering a service beyond broadband that<br />

utilised its full quadruple play product,<br />

Free was able to capture over 6 million<br />

subscribers in a year.<br />

And this is the key - not all consumers are<br />

the same. They want choice, some want high<br />

quality, some want cheap.<br />

CSPs therefore, must get on the front foot and<br />

review their service provision and the quality<br />

of what they are offering customers based<br />

on their customer data. They must ensure<br />

customers feel unique and that their needs<br />

are being catered for. Most importantly, CSPs<br />

need to offer the kind of quality of service<br />

which simply cannot be offered at the cheap,<br />

commoditised end of the market.<br />

Without that differentiation they will be<br />

drawn into a downward spiral of competing<br />

purely on price.<br />

This is something Portuguese cable operator,<br />

Zon, struggled with. Seeing an increase in<br />

competition offering cheaper services, Zon<br />

took the decision to focus on the quality of<br />

service delivered to its consumers and set<br />

about redesigning its entire user interface.<br />

What it achieved was an unrivalled user<br />

experience and quality of service that put the<br />

customer back in the centre of its service.<br />

A focus on skillfully tailored services, based<br />

on analytics and insight, should have the<br />

effect of fighting churn but can also be a key<br />

element in customer acquisition.<br />

It must start with understanding the full<br />

worth of a customer across all products<br />

and the full lifetime of their custom.<br />

In order to offer a service which keeps<br />

customers happy and bought in, CSPs<br />

must offer personalised deals and rewards<br />

based on the value of the customer. In an<br />

increasingly savvy marketplace customers<br />

will know their worth. CSPs cannot afford<br />

to take them for granted.<br />

Similarly, CSPs must be prepared to predict<br />

and pre-empt complaints. If they know how<br />

important Internet access is to customers<br />

then they must pre-empt the angry reaction<br />

when it is unavailable. Customers who are<br />

proactively notified of a problem in their area<br />

are likely to bear less ill will towards a CSP<br />

- providing it is quickly fixed - than if they<br />

have to find it and report it themselves.<br />

Fine tuning, based on understanding customer<br />

data, can start in the call centre and customer<br />

service operation with the faster, more<br />

focused resolution of customer enquiries and<br />

the more effective tailoring of packages and<br />

bundles to suit individual customers through<br />

to choice of premium content on offer. Cheap<br />

Internet access is often just that. It doesn’t<br />

come bundled with services such as cable TV.<br />

Therefore, CSPs offering bundles must ensure<br />

they are complementary. Data gleaned about<br />

Internet usage should inform the provision<br />

and promotion of such services.<br />

No two customers are the same<br />

Typically, the cheapest offerings at the<br />

more commoditised end of the market<br />

treat customers with a uniformity that<br />

ignores many trends in Internet usage and<br />

individual behaviour.<br />

EMEA 2013 • 23


Communication service providers<br />

For example, CSPs may know that customers<br />

who most regularly take advantage of an<br />

agreement to use Wi-Fi hotspots as part of<br />

their package may be most amenable to offers<br />

such as cloud based storage and back-up or<br />

packages of services related to getting the<br />

most out of multiple mobile devices and their<br />

mobile lifestyle.<br />

Security is another service which can be<br />

incorporated so that customers feel they<br />

are getting value on top of their basic<br />

connectivity. Similarly, content deals with<br />

music or movie studios can be brokered<br />

and tailored based on online behaviour.<br />

For example, CSPs who recognise the<br />

behaviours of families with children may<br />

be most successful in offering security<br />

packages, online safety guidelines and<br />

parental controls. Learning such things about<br />

customers must then be fed in to the overall<br />

customer service experience. Providing<br />

parental controls shouldn’t stop with parental<br />

controls. Those households with children<br />

may be a good market for packaged content<br />

such as Disney classic movies on-demand.<br />

Conversely, households with children may<br />

see higher instances of sport or more mature<br />

programming being watched on second<br />

screens or mobile devices, if the family TV<br />

is taken over by children, creating a captive<br />

audience for promoting such services.<br />

Getting customers engaged regularly with<br />

multiple services from one CSP makes it far<br />

less likely they will churn, even if they can<br />

get a better deal on one aspect of the offering.<br />

CSPs also have a wealth of infrastructure<br />

they can make work harder, providing cloud<br />

storage, applications and back-up services to<br />

customers where a need is identified. And for<br />

home office workers, CSPs can offer business<br />

applications and hosted email as well as<br />

helpdesk services to reduce the need for<br />

external IT support. All of these offers can be<br />

built around insights and behaviours the CSPs<br />

should be able to gain.<br />

Much of this isn’t about cost it’s about<br />

convenience and quality. Ultimately, CSPs<br />

need to break away from the race to the<br />

bottom taking place - in terms of pricing -<br />

and realise consumers are only going to get<br />

more sophisticated in the use of the Internet,<br />

with behaviours and usage only going to get<br />

more complex.<br />

They may lose a handful of customers<br />

to the novelty of free, no-frills Internet<br />

access, but the growth areas are going to<br />

be in providing a service which reflects<br />

the importance many people place on their<br />

Internet access at home.•<br />

An insight into the future!<br />

You are a decision maker;<br />

You understand your business;<br />

Do you understand how ICT affect the markets,<br />

the countries and the people you serve<br />

Gain insight into how ICT leaders see the future.<br />

<strong>Connect</strong>-<strong>World</strong>, The Decision Makers’ Forum for<br />

ICT Driven Development, brings you the thoughts<br />

and opinions of leaders from around the globe,<br />

their personal assessment of the issues that drive<br />

the ICT revolution and change the lives of us all.<br />

24 • EMEA 2013<br />

connect-world.com<br />

The Decision Makers’ Forum for ICT Driven Development<br />

Global House n 12 Albert Road n London E16 2DW n United Kingdom n Tel.: +44 20 7540 0876 n Fax: +44 20 7474 0090 n email: info@connect-world.com n URL: www.connect-world.com


Subscriber relations<br />

The value of empowered subscribers<br />

by Lucas Skoczkowski, founder and CEO, Redknee<br />

Communication service providers (CSP’s) need to keep all their subscribers happy, all the<br />

time. How do they create compelling service bundles to address subscriber needs How<br />

do they identify those needs, protect and increase revenues and reduce churn Insight into<br />

usage patterns drives the creation of clearer, more relevant services, and more competitive<br />

pricing plans. Give power to the subscribers over what and how they consume data, and<br />

they’ll give you the trust that forms the basis of all lasting relationships.<br />

Lucas Skoczkowski is founder and CEO of Redknee, a provider of real-time converged billing systems. Mr Skoczkowski previously gained<br />

experience in sales, operations, business and product development with a variety of international companies including Nortel Networks<br />

(USA, UK, Canada) and Clearnet Communications Inc. Mr Skoczkowski has been honoured with the Ernst & Young Entrepreneur of the<br />

Year Award in the Information Technology sector for Ontario, as well as a Top 40 Under 40 Award for Canada.<br />

Lucas Skoczkowski earned a BSc in Electrical Engineering from the University of Waterloo, where he was a Loran Scholar.<br />

Content service providers (CSP) today are<br />

competing in a dynamic, growing and datahungry<br />

market. Subscribers know what they<br />

want and they know how to shop around to<br />

get it. If one provider doesn’t offer the right<br />

solution, subscribers are becoming adept at<br />

switching to another. Increasing frustration<br />

with ‘bill-shock’, frequently triggered by<br />

roaming charges -- combined with the often<br />

complex schedules of pre-paid plans that fail<br />

to address certain subscriber needs -- creates<br />

barriers to loyalty. It’s a tough market, and<br />

it’s placing pressure on operators to transform<br />

their business models.<br />

That sounds like a daunting challenge.<br />

‘Transformation’ sounds like it involves<br />

significant investment, time and ingenuity.<br />

It doesn’t have to. When operators accept<br />

that they simply need to ‘recalibrate’ their<br />

positioning, shift on their axis a little, and<br />

realign the capabilities they already have<br />

so that the market perceives them and<br />

reacts to them in a different way, business<br />

opportunities come easier.<br />

CSPs are already doing this; identifying<br />

profitable new business models. They are<br />

looking more closely at customer experience,<br />

acknowledging variances in subscriber<br />

needs that can help shape modifications to<br />

pricing plans that make more sense to certain<br />

subscriber segments. They are re-evaluating<br />

the way in which customer care is delivered,<br />

moving away from old models of call centres<br />

which no longer resonate with the selfdetermination<br />

subscribers are accustomed<br />

to through the online channel. They are also<br />

looking afresh at their ability to charge for<br />

support services. Most encouragingly of all, they<br />

are achieving success with these new approaches.<br />

Subscriber segmentation<br />

Operators have been locked in a constant<br />

battle against declining ARPU for many<br />

years, aware that the revenue that is<br />

disappearing has not been evaporating<br />

from the mobile market, it has been flowing<br />

elsewhere - invariably to OTT service<br />

providers. LTE is upon us, OTT providers<br />

have introduced magnificently innovative<br />

services into the market, new breed operators<br />

are slicing and dicing consumer motivations<br />

as they launch targeted MVNOs. Subscribers<br />

today know how to manipulate service<br />

packages, swap SIM cards, and interchange<br />

EMEA 2013 • 25


Subscriber relations<br />

devices for different usage requirements.<br />

They know how to get the best deals. In<br />

many ways the market is at a tipping point.<br />

CSPs who fail to deliver clearer service<br />

propositions are likely to lose business to<br />

those who study subscriber usage patterns<br />

closely, assess that nature of services<br />

consumed and then align the services they<br />

offer accordingly.<br />

Agility is critical if operators accept that they<br />

need to shift away from a network-centric<br />

business model to a customer-centric model.<br />

Follow the customer; observe behaviours,<br />

requirements, journey patterns, usage peaks<br />

and troughs. Once you have followed them,<br />

you’ll be able to lead them. Winners in the<br />

market are those who make the content as<br />

accessible as possible. This entails giving<br />

subscribers flexibility and control over not<br />

just what they consume but -- perhaps even<br />

more importantly -- how they consume it.<br />

No subscriber likes to be wrapped over the<br />

knuckles half-way through his or her billing<br />

cycle because they’ve used up their data<br />

allowance. No one likes to be in the dark<br />

about precisely what they get for their money,<br />

so that bills arrive demanding much larger<br />

amounts than the subscriber thought they<br />

might be in for. That’s not a customer care<br />

approach; it’s a big corporation that isn’t<br />

too bothered about who it annoys. Annoyed<br />

customers have a tendency to become excustomers.<br />

Customer-centricity gives the<br />

customer control and in so doing, it also gives<br />

the operator a competitive edge.<br />

Self-care drives subscriber satisfaction<br />

Solutions are available, either in the cloud or<br />

as on-premise models, that enable operators<br />

to deliver self-care to their subscribers<br />

by implementing converged billing and<br />

customer care solutions that are low-risk,<br />

scalable and flexible. These are the solutions<br />

that MVNOs, for example, are using all<br />

over the world to drive agility; identifying<br />

subscriber segments, acting upon their needs<br />

and then relating to them in a caring fashion.<br />

These are the subscribers that stay loyal<br />

because they have no need to shop around.<br />

They are served with integrated self-care<br />

channels that synchronize web portals with<br />

the subscriber’s device, offering real-time<br />

updates if credits require attention or if other<br />

services become available.<br />

They are attracted by fair and flexible tariffs.<br />

For CSPs, the ability to intelligently package<br />

a new service or offering in a way that<br />

encourages frequent use of data is becoming<br />

more important. ‘Roaming’ is a good<br />

example. Traditionally many subscribers<br />

have been hesitant to use their phones when<br />

roaming because they’ve been worried about<br />

the cost. If CSPs focus on upselling and<br />

packaging roaming however, subscribers will<br />

be more receptive and it unlocks additional<br />

revenue for the CSP.<br />

Re-shaping the market<br />

One of the most recent developments in<br />

subscriber self-care is CSP investment<br />

in social media. Customers increasingly<br />

expect to be able to use social media<br />

tools as an engagement channel with their<br />

service provider; it’s a natural fit - for many<br />

subscribers their prime consumption of data<br />

arises from activity through social media<br />

platforms that are changing not just how<br />

they view their worlds but also how they<br />

communicate with every contact point within<br />

those worlds. It’s seamless, or it should be.<br />

For this reason, CSPs are starting to use<br />

Twitter as a channel where concerns can be<br />

raised from the mobile phone and responses<br />

provided by customer care agents through<br />

the same social media channel. CSPs can<br />

today simply introduce a full self-care portal<br />

within Facebook. This enables them to link<br />

the users’ Facebook profiles and their key<br />

friends on Facebook, who also use the same<br />

CSP, directly into their frequent calling plans.<br />

This is sophisticated mobile empowerment<br />

- relevant and targeted to subscriber<br />

behaviours. The self-care experience is<br />

shifted from the mobile to social media,<br />

where consumers are spending more of their<br />

online time. As well as customer care, CSPs<br />

are able to effectively utilise this transition<br />

for marketing new packages, promotions and<br />

new services to subscribers.<br />

Meanwhile, growing markets are adopting<br />

subscriber segmentation and self-care<br />

strategies at increasingly earlier stages in<br />

their evolution, demonstrating successes that<br />

more mature markets are learning from. Zain<br />

Kuwait’s approach is one example of an agile<br />

business model that delivers great business<br />

results by empowering the user.<br />

Analyst firm Pyramid Research believe the<br />

growth rate of mobile Internet in the Middle<br />

East and Africa will be faster than any other<br />

region in the world. While it contributed only<br />

three per cent of global mobile data revenue<br />

in 2008, projections are that the region will<br />

double its share of revenue by 2014. Leading<br />

communications provider Zain Kuwait<br />

launched Kuwait’s first national wireless<br />

broadband service in 2006.<br />

To maximise its data revenues Zain identified<br />

three target subscriber segments: young<br />

users, Arab expatriates, and inbound roaming<br />

markets. With 70 per cent of its subscriber<br />

base being prepaid, Zain wanted to get the<br />

services to its prepaid customers quickly.<br />

This involved changing its business model,<br />

to bring pricing into relevant packages that<br />

subscribers could easily understand and<br />

trust. Zain deployed a real-time rating and<br />

charging platform to enable flexible, tiered<br />

services and dynamic subscriber controls.<br />

The platform has enabled Zain to understand<br />

how its services are being used and how<br />

best to rate and charge for them -- increasing<br />

opportunities to monetise and better manage<br />

its data services and network assets.<br />

Zain’s customers now control their own<br />

mobile experience and can select daily,<br />

weekly, or monthly packages, gaining<br />

better clarity of the charges they will incur.<br />

Through the provider’s web portal, users<br />

have full visibility over the services they<br />

use, they can track their usage and decide<br />

whether they need to top up their credit or<br />

regulate their usage.<br />

Conclusion<br />

The experience of Zain Kuwait highlights<br />

an extremely interesting point relating to<br />

the stage of evolution a market has reached.<br />

Operators in this region generally are<br />

shaping their business models in parallel<br />

with emerging subscriber needs. They<br />

are learning lessons from more mature<br />

markets and responding in an agile way to<br />

opportunities. They are not taking forever to<br />

adapt. These lessons are now coming back to<br />

mature markets, where operators are reacting<br />

afresh to pressures they may once have had<br />

no choice but to succumb to. The cloud now<br />

puts agility and flexibility within reach for<br />

all CSPs, offering low-risk highly relevant<br />

capabilities that can drive customer-centricity<br />

and increase ARPU as well as loyalty.<br />

Operators should not be deterred by the idea<br />

of huge investment costs for any of these<br />

initiatives given the cloud-based business<br />

support systems they can access on a lowrisk<br />

basis. They need not be deterred by time<br />

to market, since these systems drive agility<br />

faster than ever before. And they need no<br />

longer think that subscriber churn is the<br />

inevitable by-product of doing business in<br />

a competitive market. Those days are over<br />

- power to the consumer is bringing power<br />

back into the business. •<br />

EMEA 2013 • 27


Signaling traffic<br />

Diameter signaling: the good, the bad, and the future<br />

by Doug Suriano, CTO, Tekelec<br />

Diameter is an authentication, authorization and accounting protocol for telecommunications<br />

networks that will generate a significant amount of signaling, as more sophisticated policy<br />

and charging systems require more messaging and communication. The dynamics of chatty<br />

apps and LTE-driven services will drive operators to lay a foundation for self-organizing,<br />

self- optimizing, software-defined networks that autonomously respond to surges in signaling<br />

and other unpredictable events. As such, more robust systems are needed for monitoring<br />

traffic, load balancing and congestion control, as well as enhancing the customer experience<br />

and potential for revenue generation.<br />

Doug Suriano is the CTO of Tekelec where he leads product development for intelligent mobile broadband solutions. His R&D team is<br />

responsible for architecting session, policy and subscriber data management products for software-defined networks. Mr Suriano joined<br />

Tekelec from Dynamicsoft, Inc. where he was VP, Engineering. Prior to Dynamicsoft, Inc., Mr Suriano served as Chief Information<br />

Officer for QAD Inc., an enterprise resource planning software developer, responsible for the company’s global information technology<br />

infrastructure, business systems and development support. Mr Suriano also managed IT for the U.S. Marine Corps.<br />

Doug Suriano earned a Master’s of Science degree in information technology at the U.S. Naval Postgraduate School and a Bachelor’s<br />

of Science Degree at the U.S. Naval Academy.<br />

Diameter signaling [‘Diameter’is an<br />

authentication, authorization and accounting<br />

protocol for telecommunications networks]<br />

surges are to be expected as more sophisticated<br />

policy and charging use cases trigger more<br />

signaling messages. But the increased pinging and<br />

communication should be embraced as a harbinger<br />

of more revenue opportunities for operators.<br />

The multi-tasking, mobile-social nature of<br />

subscribers, and the multi-session nature of<br />

new devices are making the concept of ‘busy<br />

hour’ obsolete. The majority of devices today<br />

are continually connected and perpetually<br />

busy thanks to ‘chatty’ apps like Facebook,<br />

Skype and WhatsApp. Constant signaling is<br />

also driven by the dynamics of Voice over<br />

LTE (VoLTE), Rich Communication Suite<br />

(RCS), and new machine-to-machine (M2M)-<br />

, over-the-top (OTT)- and advertising-driven<br />

business models.<br />

For operators in Europe, the Middle East and<br />

Africa, market pressures, regulatory changes<br />

and spectrum auctions are expected to drive<br />

more LTE roll outs.<br />

TeliaSonera, Telekom Austria, Deutsche<br />

Telekom and O2 Germany have been among<br />

the first, and Telefónica Spain, Vodafone and<br />

others have also announced more LTE spend<br />

for this coming summer.<br />

Further, by the end of 2015, about 7.5 million<br />

Middle East subscribers and 11 million African<br />

subscribers will be on LTE, according to figures<br />

issued by Signals and Systems Telecom.<br />

As LTE momentum builds across EMEA,<br />

there will be more sophisticated roaming<br />

arrangements, concurrent data sessions,<br />

video streaming, quality of service (QoS)<br />

guarantees and behavioral changes via social<br />

networking. All of this will cause increases<br />

in Diameter signaling. In fact, Tekelec’s LTE<br />

Diameter Signaling Index® predicts that LTE<br />

Diameter signaling traffic in EMEA will see<br />

a 320 per cent compound annual growth rate<br />

(CAGR) from 2011 to 2016.<br />

That CAGR will be driven by increased<br />

Diameter-based communication among<br />

gateways, policy servers, charging systems,<br />

subscriber profile databases, and mobility and<br />

session management functions.<br />

Some of the biggest increases in signaling<br />

traffic will be due to online charging and<br />

policy functions.<br />

Charging alone can generate multiple<br />

Diameter messages per session - depending<br />

on the type of session, billing arrangements,<br />

and other factors pertinent to the service.<br />

VoLTE and RCS and anything requiring<br />

dynamic charging, quality of service, and<br />

shared usage plans will further drive up<br />

Diameter signaling.<br />

Also, increased mobility will require that<br />

policy be active for longer durations,<br />

maintaining session ‘state’ and tracking<br />

subscriber usage for hours or days as<br />

subscribers move around networks.<br />

For example, if you think about policy in the<br />

context of authentication, messages have to<br />

be invoked every time a subscriber powers<br />

on an LTE device, or activates a new service.<br />

An event like a new iPhone launch - where<br />

millions of devices get activated within a<br />

condensed window - can suddenly generate<br />

a surge of Diameter messages. Similarly, an<br />

event like the Olympics can trigger millions<br />

of messages when smartphones and other<br />

devices become a conduit through which<br />

people share their experiences.<br />

The good news is that the swell in Diameter<br />

traffic will correlate to the sophistication of<br />

services and devices. More sophistication and<br />

more personalization means more revenuegenerating<br />

opportunities.<br />

The bad news, however, is that a wait-and-see<br />

approach to addressing Diameter traffic is no<br />

longer acceptable. As operators accommodate<br />

28 • EMEA 2013


Signaling traffic<br />

popular applications like Apple’s FaceTime<br />

over cellular or QoS-driven VoLTE and<br />

video, or tailor Mobile Ads with subscriber<br />

data, Diameter signaling will need to be<br />

addressed. If not, it will become increasingly<br />

difficult to personalize mobile data services.<br />

Operators need to apply advanced policy<br />

rules, and they will have to manage the<br />

consequent increase in Diameter messages<br />

among policy and charging systems, and<br />

subscriber databases.<br />

Why a centralized diameter approach<br />

‘Signaling storms’ have already hurt network<br />

performance and compromised the customer<br />

experience. In the shift from unlimited to<br />

usage-based data plans, for example, signaling<br />

surges were experienced by several operators.<br />

Operators that are now in the planning stages<br />

have learned from others to incorporate<br />

Diameter signaling strategies into their<br />

network architectures. The lesson: a separate,<br />

intelligent New Diameter Network is needed<br />

from the outset of LTE networks, and<br />

cannot wait until ten million or 20 million<br />

subscribers join the network. A meshed<br />

architecture-the direct connections between<br />

each network element-simply cannot scale<br />

sufficiently, even at low subscriber numbers.<br />

Scalability problems abound in the SS7<br />

world, too. But where SS7 did handle<br />

congestion, traffic overload and traffic<br />

throttling, Diameter does not!<br />

Operators assumed that IP networks would<br />

handle those responsibilities on a ‘best-effort’<br />

basis, but now it has become obvious that the<br />

Diameter protocol has to be deterministic to<br />

address issues at the IP layer.<br />

Currently, Diameter is at the end of year two<br />

of a five-year development cycle and the<br />

IETF is leading standardization to incorporate<br />

new capabilities into the protocol. In the<br />

meantime, operators should increase their<br />

focus on the signaling core.<br />

Building dynamic and resilient networks with<br />

a diameter signaling router<br />

As operators and vendors learn more about the<br />

impact of applications on the Diameter network,<br />

operators are focusing more on the signaling<br />

network and the role it plays in supporting<br />

innovative and sophisticated applications.<br />

Traffic engineers that understand how a<br />

signaling network works are looking more to<br />

Diameter Signaling Routers (DSRs) as a means<br />

to prevent further outages and optimize what<br />

they can do to enable or participate in new<br />

mobile-data business models.<br />

The DSR enables an architecture that<br />

reduces the cost and complexity of the<br />

core network, and it helps IP networks to<br />

grow incrementally in support of increasing<br />

service and traffic demands. Additionally,<br />

the DSR facilitates network monitoring by<br />

providing a centralized vantage point in the<br />

signaling network.<br />

When evaluating solutions, operators should<br />

consider how robust and proven a solution is<br />

in 3G mobile data and LTE networks, as well<br />

as its roadmap for the future.<br />

Important for a solution today is the ability to<br />

handle hundreds of thousands of messages;<br />

tens of millions of concurrent sessions;<br />

and millions of subscribers and devices.<br />

Also important are extensive scalability<br />

and congestion control features. But for the<br />

future, there has to be a path to virtualization,<br />

as operators are going to want to move the<br />

DSR and related elements like policy and<br />

subscriber data management into the cloud.<br />

As more architectural agility becomes<br />

necessary to handle signaling and data traffic<br />

surges, the DSR’s operations, administration<br />

and maintenance (OAM) functions will have<br />

to be virtualized.<br />

Already, operators in the Asia-Pacific<br />

region and IP Exchange (IPX) providers are<br />

deploying DSRs with virtualized elements.<br />

As the DSR becomes increasingly critical,<br />

it will become a key component within an<br />

independent control layer - one that should<br />

be comprised of signaling, policy and<br />

subscriber data management. Tekelec calls<br />

that independent layer the ‘New Diameter<br />

Network,’ a Diameter signaling layer in the<br />

network core that handles routing, traffic<br />

management, load balancing and protocol<br />

interworking. In that context, the DSR<br />

integrates with the Policy Server (PCRF) in<br />

order to define business rules for new service<br />

plans. It also integrates with subscriber data<br />

management (SDM) to personalize services<br />

and evolve them according to consumer<br />

circumstances and preferences.<br />

As a part of the NDN, the DSR, Policy Server<br />

and SDM manage the constant pinging among<br />

essential LTE network elements, including:<br />

Offline Charging<br />

Policy Servers (PCRF)<br />

Online Charging (OCS)<br />

User Data Repositories<br />

Mobility Management Entities (MMEs)<br />

Policy Control Enforcement Points (PCEFs)<br />

Session Management, like a Call Session<br />

Control Function (CSCF)<br />

In essence, the DSR becomes the network’s<br />

central nervous system, monitoring all<br />

Diameter traffic and making decisions<br />

regarding load balancing and congestion<br />

control based on its knowledge of the entire<br />

network, as opposed to a specific segment of<br />

the network.<br />

These capabilities lay the ground work for<br />

software-defined ThinkingNetworks -<br />

networks capable of self-organizing, selfoptimizing,<br />

and self-determining responses<br />

to unprecedented and unpredictable events.<br />

In essence, networks that have to think for<br />

themselves, yet remain malleable enough<br />

that network architects can adjust network<br />

resources as needed.<br />

While operational efficiencies and cost<br />

savings are some of the benefits of<br />

ThinkingNetworks, it will ultimately be<br />

innovation and personalization that are the<br />

crowning benefits.<br />

To get to that point, there are four phases to undergo:<br />

Phase 1, the creation of the New Diameter<br />

Network - a centralized, intelligent Diameter<br />

control layer governing all equipment that<br />

uses the Diameter protocol.<br />

Phase 2 comes when the NDN moves to<br />

the cloud, creating a fundamental shift<br />

in the way operators improve network<br />

scalability and flexibility in terms of sessions,<br />

transactions, and throughput. Tekelec<br />

calls this phase Cloud XG, as the nextgeneration<br />

of cloud will depend on network<br />

function virtualization and software-defined<br />

networks (SDNs). Here, operators will look<br />

to dynamically add and remove compute<br />

resources to available hardware, and to<br />

dynamically manipulate traffic flows entering<br />

or leaving the cloud.<br />

Phase 3 is MobileSocial, where subscribers<br />

are intimately known by their providers<br />

as individuals and as members of greater<br />

social circles - personal and professional.<br />

This is where the rubber meets the road, as<br />

operators become digital-lifestyle providers,<br />

customizing customer experience according<br />

to real-time data coming from networks and<br />

Big-Data sources.<br />

As operators unleash the valuable contextual<br />

data they hold, they build opt-in, mobile<br />

advertising, and other personalized offers to<br />

OTT application and content providers.<br />

Phase 4 culminates with ThinkingNetworks,<br />

which embody all critical components of<br />

the previous phases. Founded on policydirected<br />

SDN control and network event<br />

listeners (such as event records, analytics,<br />

alarms and probes), ThinkingNetworks<br />

give an analytical view of the relationship<br />

between all of the services supported - the<br />

characteristics of each as well as the impact<br />

of one service on another.<br />

The end goal is to significantly reduce<br />

network costs by giving service providers the<br />

ability to dynamically assign compute and<br />

storage resources where and when needed in<br />

the network, as well as to enhance service,<br />

application, device- and user-awareness in<br />

order to further personalize services.<br />

The ThinkingNetworks vision provides<br />

a roadmap to turning those goals into<br />

reality with carefully planned steps that<br />

get operators from where they are today to<br />

where they want to be tomorrow as Digital<br />

Lifestyle Providers. •<br />

30 • EMEA 2013


Over-the-top content<br />

Headline: Content for the masses<br />

by Zdeněk Gerlický, CTO, nangu.TV<br />

Zdeněk Gerlický is the CTO of ‘nangu.TV’ where he oversees all areas of development. Mr<br />

Gerlický joined Alnair a.s, the intellectual property owner of nangu.TV, as a Middleware<br />

System Developer for the IPTV platform. He later became Team Leader of the Java<br />

Development team iand recently assumed the position of CTO.<br />

Zdeněk Gerlický completed his graduate studies at the Faculty of Electrical Engineering at<br />

the Czech Technical University in Prague, majoring in Computer Networks and Internet.<br />

Zdeněk Gerlický is the CTO of ‘nangu.TV’ where he oversees all areas of development. Mr Gerlický joined Alnair a.s, the intellectual<br />

property owner of nangu.TV, as a Middleware System Developer for the IPTV platform. He later became Team Leader of the Java<br />

Development team iand recently assumed the position of CTO.<br />

Zdeněk Gerlický completed his graduate studies at the Faculty of Electrical Engineering at the Czech Technical University in Prague,<br />

majoring in Computer Networks and Internet.<br />

In the last decade the way that we send,<br />

receive and view information has changed<br />

exponentially. Twenty years ago we were<br />

marvelling at the capability of the internet<br />

and how it could potentially change our<br />

lives. We could never have imagined<br />

the technological breakthrough that<br />

smartphones and tablets would bring and<br />

what a difference they would make to how<br />

we operate both at work and at play.<br />

In 1983, when Madonna released her<br />

debut album and shoulder pads were all<br />

the rage, the first - very sizeable - mobile<br />

phone was launched. Motorola’s DynaTAC<br />

‘Dynamic Adaptive Total Area Coverage’<br />

had 30 minutes talk time, could go eight<br />

hours between charges, was 13 x 1.75 x<br />

3.5 inches in dimension, had eight hours of<br />

standby time, took ten hours to recharge,<br />

featured an LED display and memory to<br />

store thirty numbers. All that for a price tag<br />

of US$3,995!<br />

In 1993 the mobile phone was entering<br />

its second decade and a new phase in its<br />

technology; models were just small enough<br />

to fit into the palm of the hand, having<br />

shrunk from the size of a house brick, and<br />

features were beginning to include PDA<br />

capability such as a calculator, pager,<br />

address book and email. Fast forward to<br />

2013 and the change is incredible with<br />

people using their (small) device to search<br />

for content, watch content or interact either<br />

directly or via social media applications<br />

almost anywhere.<br />

A plethora of content consumption<br />

reports and studies support the huge<br />

rise in multi-screen viewing habits in<br />

countries across the world. Digital TV<br />

Europe recently highlighted The Mobile/<br />

Tablet TV & Video: Content, Broadcast<br />

& OTT Strategies 2013-2017 study. It<br />

stated that in 2017 the Western European<br />

market will account for over a fifth of<br />

mobile and tablet viewers, at more than<br />

430 million people. The report says that<br />

the success of online and multi-screen<br />

services like Netflix has begun to affect<br />

the pay-TV business, with the threat of<br />

consumers ‘cutting the cord’ resulting in<br />

many pay-TV providers, such as Sky in<br />

the UK, fighting back with multi-platform<br />

strategies of their own.<br />

EMEA 2013 • 31


Over-the-top content<br />

In May 2012, Nielsen’s Global Survey of<br />

Multi-Screen Media Usage reported that<br />

more than 28,000 internet respondents in<br />

56 countries indicated that watching video<br />

content on computers has become just<br />

as popular as watching video content on<br />

television among online consumers. Over<br />

80 per cent reported watching video content<br />

at home on a computer (84 per cent) or on<br />

TV (83 per cent) at least once a month. By<br />

contrast, in 2010, more online consumers<br />

reported watching video content on TV (90<br />

per cent) than on a computer (86 per cent)<br />

in a month-long period. Since the report<br />

was published these figures are likely to<br />

have swung further with the trend for tablet<br />

and mobile applications growing rapidly.<br />

In the Europe the Orange Exposure<br />

2012/2013 annual independent study<br />

by TNS published in November 2012,<br />

examined mobile media habits across<br />

UK, France and Spain for the advertising<br />

industry. It showed mobile as the primary<br />

screen of choice for 11-18 year olds with a<br />

very high penetration of smartphones and<br />

highlighted the power of social networking<br />

and social TV in this demographic. The<br />

study also showed that adults are using<br />

screens more interchangeably than ever<br />

before with less preference for one over<br />

another. The trend doesn’t just apply<br />

to adults and teenagers. Many young<br />

children wake up to find a tablet amongst<br />

their Christmas or birthday presents these<br />

days. These figures are being mirrored<br />

in countries across the world and as such<br />

operators need to be able to provide a<br />

combined service offering that’s simple to<br />

navigate with high quality services.<br />

There are three parties involved in the<br />

delivery of content to consumers: network<br />

owners/operators, service providers and<br />

third-party content aggregators (Hulu/<br />

Netflix etc). The development of Overthe-Top<br />

delivery (OTT) means that service<br />

provision can be separated from network<br />

ownership/operation allowing a much<br />

faster rate of service deployment and<br />

growth helping to satisfy the demands<br />

of the modern consumer. As we can see<br />

from the reports, audiences don’t just<br />

want the freedom to view content anytime,<br />

anywhere; they now expect it - they are<br />

truly network-agnostic.<br />

For ISPs, along with cable, mobile and<br />

hospitality TV service providers to survive<br />

in this highly competitive market they need<br />

a complimentary mechanism to deliver<br />

value-add additional features including:<br />

non-linear TV, VoD, triple- screen, hybrid<br />

boxes and mobile applications. That<br />

mechanism is OTT. OTT delivery - where<br />

the service provided is separated from<br />

the network - allows consumers to access<br />

the same content on their mobile, tablet<br />

and TV provided that they have a good<br />

enough internet connection and a service<br />

provider(s) that understands the pitfalls and<br />

the quality that’s expected. Not all OTT<br />

delivery is created equally as many of us<br />

know: video drop-out and buffering are<br />

common problems. Sometimes a complete<br />

loss of service is the result.<br />

The key to the success of OTT is the<br />

quality of delivery and this is where<br />

the wheat is separated from the chaff.<br />

Adaptive streaming technology is the<br />

driver in this arena. Adaptive streaming<br />

frequently checks the connection type and<br />

strength for both linear and non-linear<br />

content and adapts accordingly for quality<br />

optimisation. Therefore it allows service<br />

providers/content aggregators to deliver all<br />

their services to all devices (multi-screen<br />

delivery) via a single platform reducing<br />

resources and operational costs and<br />

providing a pay-as-you-grow model.<br />

With the integration of apps on mobile,<br />

tablet and smart TVs, watching OTT<br />

content across multi-screen devices has<br />

never been easier. Users simply purchase<br />

the application via the App Store or<br />

Google Play and access content on their<br />

platform using the pin number provided<br />

by their operator. The high level search<br />

functionality technology on smart phones<br />

and tablet devices provided by the delivery<br />

platform allows users to select and view<br />

content quickly and easily. The operator<br />

can also offer universal recommendations,<br />

increasing social TV interaction and<br />

advertising revenues.<br />

Recommendation technology is an<br />

important addition for viewers. There’s so<br />

much content available it can be frustrating<br />

to sift through the content that you’re not<br />

interested in to find content that’s relevant.<br />

Finding the right key words that describe<br />

what the user is looking for so that they get<br />

to the correct information is challenging.<br />

Having to fine tune those words and then<br />

filter through the content takes time and<br />

patience. Television continues to be a leanback<br />

experience and as such the process<br />

of searching for content that will satisfy<br />

should not be a struggle - in fact it should<br />

be the exact opposite if operators and<br />

content owners want to drive loyalty and<br />

therefore revenues. The key for content<br />

owners is how best to present content to the<br />

user in an orderly fashion.<br />

Remote viewing capability is also<br />

important as well having the ability<br />

to use the smartphone or tablet as a<br />

remote control for the television with<br />

significantly increased search capability.<br />

Remote applications enable simple browse<br />

capability whilst pop-up push notifications<br />

on the second screen alert the user that<br />

content is starting and a single click plays<br />

it on the TV via the set-top box. Search<br />

optimisation is highly advanced, enabling<br />

filtering based on chosen criteria. Users can<br />

search, record, bookmark or play content<br />

on the TV then freeing up the second<br />

device.<br />

Unlimited devices can be connected to the<br />

server allowing operators to set their own<br />

parameters. High-level security settings<br />

mean that subscribers can put in place strict<br />

parental control where necessary. Users can<br />

check which devices are connected to the<br />

platform and are able to disable or switch<br />

devices without having to purchase another<br />

application or connection.<br />

The multi-screen revolution is being driven<br />

by the consumer and is developing quickly.<br />

It offers huge potential and a bright future<br />

for operators adopting OTT across multiple<br />

devices. By delivering quality television<br />

services operators are expanding their<br />

market potential and thereby significantly<br />

increasing revenue and meeting the ever<br />

increasing demands of their customer base.<br />

•<br />

32 • EMEA 2013


Native language content<br />

Content speaks for itself - in the viewer’s language<br />

by Philippe Rouxel, CMO, GlobeCast<br />

For immigrant and expatriate viewers, the best experience is one that brings them ‘home’.<br />

There is an important, and lucrative, new market awaiting broadcasters - their own expatriate<br />

communities in other countries. People away from home want familiar content in their own<br />

language. With the right global partners, broadcasters can harness this demand and create<br />

new revenue streams. By producing a meaningful experience for their overseas viewers -<br />

they can bring new levels of closeness and connection to communities everywhere.<br />

Philippe Rouxel is Chief Marketing Officer (CMO) for GlobeCast, a content management and delivery company for broadcasters, and a<br />

member of the Orange Group. Mr Rouxel oversees the company’s global product strategy, including business units in Europe, Africa, the<br />

Middle East, Asia and the Americas. Prior to joining GlobeCast, Mr Rouxel served as the Vice President of International Distribution<br />

for France 24, an international broadcaster serving 165 million households in five continents. Previously, he held business development<br />

positions with channels belonging to Lagardère, Canal+/Multithémathiques, Viacom/MTV Networks International, Première, and Walt<br />

Disney International.<br />

Philippe Rouxel graduated from EDHEC and CELSA Paris-Sorbonne.<br />

Today’s connected world is one that embraces<br />

diversity: diversity of content and technology<br />

of course, but also the diversity of its viewers.<br />

In any given country, most of us belong<br />

to specific communities and cultures, but<br />

we’re also more mobile and more far-flung<br />

than at any time in history - and the days of<br />

cities and regions with a singular cultural<br />

identity are long past. The democratization<br />

of international travel and mass cultural<br />

migrations, enabled by the Schengen Zone in<br />

Europe and other international treaties, have<br />

made it easier than ever for large populations<br />

to pick up stakes and to create diasporas in<br />

new lands.<br />

But wherever we roam, we still have a basic<br />

human need to stay connected with the folks<br />

back home and get a dose of the familiar from<br />

time to time. In the old days, family might<br />

mail a newspaper, movie, or book to someone<br />

living in another country to make that person<br />

feel more connected to his or her roots. That<br />

basic need is still there today, but the means<br />

of keeping that connection have evolved in a<br />

big way.<br />

Perhaps more than any other technology<br />

trend, the availability of a vast array of<br />

content on an ever-growing and equally<br />

dazzling line-up of platforms and mobile<br />

devices has changed the way people stay<br />

connected and access information. As the<br />

world becomes more and more of a melting<br />

pot, viewers’ demand for international<br />

content on the device of their choice will<br />

present powerful new opportunities, and new<br />

challenges, for broadcasters.<br />

How we got here<br />

In the early years of television, channels<br />

never left their home market. Each country<br />

- and indeed each region - produced its<br />

own programming for a local audience.<br />

Beginning in the 1960s with the launch of<br />

satellite communications, technological<br />

innovations spawned an evolution. Suddenly<br />

the world started to shrink, and for the first<br />

time, events of international significance,<br />

including sports programming, began to<br />

cross international borders.<br />

There was no going back. Major news<br />

networks such as CNN and BBC were the<br />

first to create international versions of<br />

their channels for various regions of the<br />

world, followed by powerhouses such as<br />

EMEA 2013 • 33


Native language content<br />

MTV. Today, major international networks<br />

appear on cable and satellite systems on<br />

five continents.<br />

Initially, such a global operation was<br />

prohibitively expensive for all but the<br />

largest of the world’s broadcasters. Tailoring<br />

international content for overseas markets<br />

was a technically and financially gargantuan<br />

task and remained so through the end of the<br />

20th century. To effectively cater to these<br />

markets, a broadcaster had to establish local<br />

bureaus as well as purchase huge amounts of<br />

satellite capacity. However, once the digital<br />

age had replaced analogue broadcast and<br />

Internet bandwidth became robust enough<br />

to carry streaming video, the floodgates of<br />

information opened wide. All of this set<br />

the stage for an unprecedented explosion in<br />

international content.<br />

An ideal marriage: international content and<br />

multiplatform delivery<br />

We know that today’s connected world is<br />

all about content. But if content is king, the<br />

user experience is King Kong. International<br />

content has a built-in advantage in this<br />

respect; after all, what experience could be<br />

better than feeling “transported home” on any<br />

device, anywhere in the world This former<br />

niche area is finding exciting new ways to<br />

touch audiences far beyond their borders,<br />

sharing their unique world perspective and<br />

reaching expatriate, immigrant, and cultureminded<br />

viewers across the globe.<br />

Consumer demand is driving video delivery<br />

on user devices ranging from gaming<br />

consoles, mobiles, and tablets to PCs and<br />

connected TVs - and international content<br />

is no exception. As a result, today’s viewers<br />

live in an age in which, with a click of the<br />

mouse or a wave of the finger, they have<br />

unprecedented access to their program or<br />

channel of choice. For shrewd broadcasters<br />

who apply the right tools and choose the<br />

right distribution, it’s an opportunity to build<br />

loyalty and revenue by presenting engaging<br />

content to targeted audiences.<br />

The multiplatform, multi-device environment<br />

lends itself well to international content<br />

delivery for a variety of reasons. The<br />

first reason is the scalable nature of these<br />

solutions with the ability to control costs.<br />

This is particularly important to broadcasters<br />

who are launching in a brand new market.<br />

Even premier broadcasters in their home<br />

country may have to start from scratch from<br />

a budgetary standpoint when expanding to a<br />

new country. Conventional solutions such as<br />

satellite - although they have a wide reach -<br />

can be prohibitively expensive in some cases.<br />

Over-the-top (OTT) distribution via IP<br />

networks offers a more cost-effective entry<br />

point for broadcasters looking to establish<br />

themselves in new markets. While many<br />

broadcasters view OTT as a complementary<br />

strategy for their traditional services, others<br />

approach it as a primary launching pad for<br />

entering a new market. In some cases this<br />

choice can be dictated by technology as well<br />

- especially in less-developed regions where<br />

terrestrial networks are not as mature or<br />

reliable as mobile services.<br />

Despite the initial uncertainty of launching<br />

in a new country, if they do their research<br />

right, international broadcasters have a clear<br />

advantage over local and thematic content in<br />

the sense that they have a dedicated, built-in<br />

community of viewers hungering for content<br />

in their own language and culture. In fact,<br />

some viewers are so hungry that they will get<br />

their content through any means necessary<br />

- even illegal downloads off the Internet<br />

or satellite pirating. Therefore, it behoves<br />

broadcasters to proactively approach these<br />

markets and take control of content delivery<br />

through managed service offerings.<br />

From a technology standpoint, the increased<br />

mobility of viewers and the access that comes<br />

with a handy mobile device only enhances the<br />

opportunity to win these viewers over.<br />

Key ingredients for success<br />

In order to build a profitable operation and<br />

unlock every opportunity for monetization,<br />

broadcasters need to offer the widest possible<br />

variety of content at the highest quality, with<br />

relevance to different audiences wherever<br />

they may live. The best OTT offerings make<br />

full use of the broadcaster’s entire content<br />

portfolio by offering live programming that<br />

can be easily converted to VOD for catch-up<br />

viewing, as well as pre-existing VOD titles<br />

and assets from media libraries.<br />

Of course, each offering must be highly<br />

tailored to the target audience and region;<br />

simply time-shifting the content or trying<br />

to stream the same channel to every market<br />

might have worked before, but is no longer<br />

effective in today’s hyper-connected<br />

world. Therefore, robust tools for content<br />

regionalization and localization are a must,<br />

as are tools for graphic insertion, subtitling,<br />

and program substitution. The good news<br />

is that Internet-delivered content makes<br />

it much easier for broadcasters to create<br />

tailored offerings, by providing easy access<br />

to a wealth of statistics and metrics about<br />

their audiences. Better knowledge of viewers<br />

and their habits leads to better targeting of<br />

services and therefore better controls on the<br />

viewer experience with the goal of increasing<br />

audience loyalty. Also, a competent global<br />

service partner can help ensure a smooth<br />

rollout of tailored content offerings by<br />

providing an intimate understanding of<br />

the target markets, and also providing<br />

localization services.<br />

The future is now<br />

Although we might be a few years away<br />

from widespread availability of international<br />

content in any language and from any<br />

country, there’s already a groundswell of<br />

activity from broadcasters around the world.<br />

To date, leading broadcasters from Brazil,<br />

Africa, Romania, and Portugal have signed<br />

onto the service as an easy and cost-effective<br />

means of bringing local news, sports, and<br />

entertainment programming to their expatriate<br />

communities in the U.S.<br />

Other examples abound. beIN Sport a global<br />

network of sports channels jointly owned and<br />

operated by Qatari Sports Investments, now<br />

offers three channels in France and two in<br />

the U.S. The Cambodian Television Network<br />

(CTN) now delivers Cambodian-language<br />

content to viewers in the U.S. and also<br />

offers a mobile app for accessing the content<br />

from phones and tablets. Russia Today, a<br />

24/7 channel covering news, world affairs,<br />

and human interest stories from a Russian<br />

perspective, is now available in a range of<br />

Asian countries.<br />

To summarize, there is a bold and extremely<br />

lucrative new world awaiting broadcasters,<br />

and they need look no further than their<br />

expatriate communities in other countries<br />

- people who yearn for familiar content in<br />

their own language. With the right global<br />

partner, broadcasters can harness this<br />

demand not only to create new revenue<br />

streams, but to create a meaningful<br />

experience for their overseas viewers and<br />

bring new levels of closeness and connection<br />

to communities everywhere. •<br />

34 • EMEA 2013


Virtual working<br />

The essentials of virtuality<br />

by John Berry, Director and Management Consultant, TimelessTime<br />

Today, broadband connections are adequate for virtual working, but without richer<br />

communications, people will struggle to convince participants of the presence of others,<br />

and connections will not replace face-to-face. Most firms wish that at least some of their<br />

workers could work on the move or from home or client sites. Effective virtual teams<br />

need connectivity, computers, Internet connections from wherever they are; appropriate<br />

applications with relevant peripherals; methods that make teams function; and workers with<br />

the right competencies and behaviours.<br />

John Berry is a Director and Management Consultant with TimelessTime, a people-management consulting firm. Prior to founding,<br />

TimelessTime. Mr Berry served with Inter<strong>Connect</strong> Communications, part of Ericsson, as the director responsible for their consulting<br />

in wireless regulation. Previously, Mr Berry started and built ATDI Ltd, a wireless and spectrum management software and consulting,<br />

he also worked for Thales in radio spectrum management and led Maxon’s mobile marketing firm. Mr Berry started his technology<br />

management career with Philips, leading its base station lab, and then led its mobile systems marketing. Mr Berry is a regular presenter<br />

and speaker on technology and management.<br />

John Berry has a BSc in electronics and a BA in sociology, politics and economics. He also has an MBA, specialising in the management<br />

of technology and is just finishing an MSc in organisational technology at Birkbeck, University of London.<br />

Today, the majority of firms are looking at<br />

the prospect that at least some of its workers<br />

could benefit from working while on the<br />

move or from home or client sites. The<br />

idea that one can participate in an audiovisual<br />

conference call while on the train, for<br />

instance, must be hugely attractive. After<br />

all, time is money and reducing lost time<br />

through travel must be every manager’s<br />

aim. Similarly, the ability to run a workshop<br />

with clients from the comfort of home is an<br />

obvious benefit to a firm. Office space is an<br />

overhead and so any corporate real estate<br />

reduction must be eagerly sought.<br />

It’s 2013 and it feels as though all the pieces<br />

of the jigsaw are in place. Regulators have<br />

allocated spectrum, 3G (if not 4G) networks<br />

have rolled out, fibre is in the ground to<br />

cabinets, and every worker has a computer.<br />

Surely virtuality is with us<br />

Well perhaps… Today, most of us work in<br />

teams and for effective virtual team function,<br />

five things are necessary. From the technology<br />

side, firms need connectivity and computers.<br />

They need workers to be able to connect with<br />

the Internet from wherever they are located;<br />

and they need computers running appropriate<br />

applications with relevant peripherals. From<br />

the people side, they need methods that make<br />

teams function and workers with the right<br />

competencies and behaviours.<br />

How practical is virtuality today. There are<br />

technological advances that allow virtual<br />

operation. Then too, there are the people<br />

and there are companies either trying to<br />

foster the dual development of employees<br />

and technology virtuality requires. Other<br />

companies, though, simply wait expecting<br />

technology alone to drive the change towards<br />

the virtual organisation. Our experiences<br />

with a recent virtual project team, spread<br />

geographically across Europe and the<br />

Middle East, provides some insight into how<br />

technology benefits such operations.<br />

An EMEA case study<br />

As a backdrop to this discussion there’s a<br />

case study: around eight consultants located<br />

in the UK, The Netherlands, Saudi Arabia,<br />

Dubai and Qatar and around six clients<br />

located in Iraq. All worked recently on a<br />

cross-national, cross-company project. All<br />

the consultants worked from home or from<br />

touch-down centres and all clients worked<br />

from offices in the Green Zone in Baghdad.<br />

This case study tells us much about how<br />

advanced the technology and the people<br />

are and hence how well firms across the<br />

region can embrace virtuality. It will be used<br />

throughout to illustrate the various arguments.<br />

Raw connectivity<br />

For virtual operation, the participants must be<br />

afforded the ability to communicate wherever<br />

they are located. But what does that mean Team<br />

members need to communicate by voice. We<br />

have that today - although international mobile<br />

calls are costly and many operators block free<br />

services such as Skype. Luckily subscription<br />

services, such as GoToMeeting, are allowed and,<br />

today, local access points are provided in many<br />

countries. It was quite a shock when one project<br />

team member announced his participation while<br />

mobile across Jordan. So the team can associate<br />

and build trust through regular calls.<br />

It’s somewhat more effective though if voice<br />

is augmented by imagery. Watching the caller<br />

on screen can be a distraction but looking<br />

at and helping construct an organisational<br />

chart or a job description on-screen helps<br />

understanding. The audio and visual cues<br />

work together. So online workshops need<br />

Citrix-style applications which, in turn,<br />

EMEA 2013 • 35


PACIFIC TELECOMMUNICATIONS COUNCIL Facebook/PTC.org @ptcouncil Pacific Telecommunications Council


Virtual working<br />

need broadband connection with modest<br />

latency and near-continuous availability.<br />

Thankfully though the limiting characteristic<br />

is not the broadband speed - online meeting<br />

applications keep going even when only a<br />

few hundred kb/s are available.<br />

Not spots, islands and contention<br />

Now in principle, network operators report<br />

high percentage coverage of populated<br />

areas. But in reality, most countries suffer<br />

extensive not-spots. 3G services are focused<br />

in city centres and regulators have yet to<br />

allocate adequate spectrum. As recently<br />

reported extensively, around 700MHz of<br />

UHF spectrum is needed now by operators<br />

and while much has been identified, only<br />

a fraction has actually been allocated. The<br />

result is that demand exceeds supply and<br />

users suffer extensive contention, degrading<br />

any ability to sustain data connection.<br />

Luckily, hotels, cafes and other providers<br />

of wi-fi have now substantially stopped<br />

charging by the day. The result is that workers<br />

can get free or low-cost access just about<br />

whenever it’s needed, at least somewhere in<br />

town. Trains too are beginning to use mobile<br />

networks for mobile access, providing wi-fi<br />

access inside the carriage to users and while<br />

connection suffers contention, it works. So<br />

between mobile networks and wi-fi ‘islands’,<br />

connection is available.<br />

So it’s a mixed state. Our consultant participating<br />

while mobile across Jordan is good but today,<br />

such ubiquity is pretty much restricted to voice.<br />

Computers and applications<br />

For technology to afford workers function,<br />

they need applications. Workers need<br />

the ‘normal’ office packages but virtual<br />

workers need shared workspaces to replace<br />

the Sharepoints and the CRMs of the<br />

headquarters domain.<br />

Dropbox is possibly the most widely accepted<br />

shared file-space today and yet many<br />

corporate IT ‘police’ forbid such connection<br />

and sharing, citing security worries. Our<br />

EMEA project team suffered just this. Some<br />

team members could only receive working<br />

documents via email and since most of<br />

us receive hundreds of emails a day, it’s<br />

a real challenge to manage team material<br />

production and distribution.<br />

Collaboration is a challenge. But if workers<br />

adopt Web 2.0 technology, it can work. Social<br />

media allows teams to micro-blog, keeping<br />

one another up-to-date and applications such as<br />

GitHub allow issues to be shared and resolved.<br />

Methods<br />

Now, in our EMEA team case, consulting<br />

methods had to be settled on once the job was<br />

won. The clients were based in the Green Zone<br />

in Baghdad and few of the consultants were<br />

prepared to go there - so the conventional<br />

delivery of documents and the richness<br />

of face-to-face workshops were not going<br />

to work. This meant that new approaches<br />

were needed that would accommodate the<br />

infrequent lean connectivity available.<br />

And it happens that the world of software<br />

engineering has a method well suited to just this<br />

environment - Agile. The essence of Agile is the<br />

break-down of the project deliverables into multiple<br />

‘stories’, the production of a deliverable during a<br />

‘sprint’, its review at a ‘stand up’ and its subsequent<br />

revision and acceptance before repeating all again<br />

for the next ‘story’ in the project. Agile breaks the<br />

project into fortnightly periods. In the EMEA case,<br />

we broke the project into weeks.<br />

One of the biggest issues when operating in<br />

virtual teams is the building of trust. When<br />

face-to-face, trust is built through action but<br />

also through the basic liking and understanding<br />

between workers that comes from looking a<br />

colleague in the eye. In virtuality, trust comes<br />

only through action. Team members must do<br />

what they say they’ll do when they say they’ll<br />

do it. And trust won’t be built when conventional<br />

plans are developed with project phases lasting<br />

months before deliverables appear. Our variant<br />

of Agile helps build trust by demanding that team<br />

members produced smaller deliverables sooner.<br />

Action is simply measurable.<br />

So methods must be adjusted to<br />

accommodate virtual working and the<br />

nuances of dispersed teams.<br />

And the people<br />

People are defined by their individual and<br />

substantially unchanging characteristics: their<br />

personality, intelligence, competency, beliefs,<br />

attitudes and motives. The people are used to<br />

working in a particular way. They have beliefs<br />

about the success of the established method.<br />

The job they do motivated them, providing skill<br />

variety, task identity, task significance, autonomy<br />

and the necessary feedback. Now, people have a<br />

new, very different way of doing their jobs.<br />

Change means un-learning what they<br />

knew and re-learning new skills. Suddenly<br />

visual cues are absent - after all you can’t<br />

see your colleague - and shared working<br />

environments, email and micro-blogging<br />

prevail. Impressions are managed differently,<br />

more by performance than anything and all<br />

parties can multi-communicate - the idea that<br />

they can be on an audio-visual conference<br />

with a super-group, while communicating<br />

privately with others.<br />

People have competencies. When methods<br />

and technologies change, these competencies<br />

must be developed. Firms must therefore<br />

not only invest in technology - providing the<br />

connectivity, computers and applications - but<br />

must also invest in the people.<br />

Staff often take time to embrace the audiovisual<br />

workshops and to adjust their own style<br />

to this form of communication. Some may<br />

struggle to adjust to the pressure of the week<br />

bursts of activity and all must feel that the<br />

environment is sufficiently risk free to allow<br />

the experimentation needed to learn anew.<br />

Firms often assume that by implementing<br />

technology, change will just happen. This is<br />

not the case. Perhaps the youth of today, who<br />

grew up with the Cloud and social media, will<br />

embrace change, but those more established<br />

in their ways may reject, resist or work round<br />

the change or even leave the organisation.<br />

Conclusions<br />

There is a duality here - the social system in which<br />

people work together to achieve objectives and the<br />

technological system that facilitates this working.<br />

The social places pressure on the technological,<br />

modifying what people will use and how they<br />

use it and the technological modifies the social,<br />

affording the users of new approaches to old<br />

problems - if they chose to accept it. Technology<br />

affords connectivity and tools, encouraging<br />

virtuality and social systems mingle with the<br />

technology to afford new methods.<br />

Today, connectivity is adequate for virtual<br />

working but only if team members are fixed or<br />

nomadic, using fixed or nomadic broadband<br />

connection. Until mobile networks offer a richer<br />

communications, they will struggle through<br />

their slower information processing to convince<br />

participants of the presence of others, hence<br />

replacing face-to-face.<br />

Companies can wait and let the technology<br />

and colleagues force change - or they can<br />

plan change and train staff for the sort of<br />

virtuality they want. But just like in our<br />

EMEA team, change is inevitable and the<br />

technology is sufficiently mature to allow<br />

much to be achieved. •<br />

EMEA 2013 • 37


Secure content distribution<br />

Secure mobile distribution of corporate content<br />

by Ian Evans, Managing Director EMEA, AirWatch<br />

When sharing corporate content in the cloud, with everything accessed via mobile devices,<br />

it can be difficult to manage access. Free cloud file sharing services distribute corporate<br />

documents to employee-owned devices, but offer businesses little protection or control.<br />

Enterprise Mobility Management (EMM) solutions provide secure corporate content<br />

management and protection,; they prevent leakage and theft while enabling distribution.<br />

Hybrid approaches using a combination of internal and external storage can provide the<br />

most flexibility and help companies control employee user costs.<br />

Ian Evans is Managing Director for the European, Middle Eastern and African regions (EMEA) region at AirWatch, specialised in<br />

enterprise mobility management, mobile security, mobile device management (MDM) mobile application management (MAM) and<br />

mobile content management (MCM) solutions. Mr Evans has more than 20 years of experience in the software industry. Mr Evans<br />

worked previously as Managing Director, EMEA of Aste, a software solutions company. Before Astea, Mr Evans was director, EMEA for<br />

O4 Corporation, and a vice president at InforGlobal Solutions.<br />

Ian Evans holds a degree in Computer Science.<br />

Revoking all access to corporate content<br />

when an employee left a company used to<br />

be easy a decade ago, when removal of door<br />

entree blocked admission to all corporate<br />

information and data. The year 2013 brings<br />

new ramifications, as employees have come<br />

to expect easy access to corporate resources<br />

from any device, anywhere at any time. With<br />

corporate content often shared across users<br />

and in the cloud, IT departments may find<br />

it hard to keep control. As mobile access is<br />

becoming increasingly business-critical, IT<br />

departments in companies across EMEA<br />

are challenged to securely deploy content to<br />

mobile devices, to enable collaboration and to<br />

prevent data loss and leakage.<br />

Business challenges<br />

During the past few years I have seen the<br />

first generation of mobile natives enter<br />

the workforce. A new set of business<br />

challenges emerged, as mobile workers<br />

increasingly utilise widely available and<br />

free cloud file sharing services to distribute<br />

corporate documents, potentially risking<br />

data loss and leakage. Challenges exist also<br />

in the proliferation of personal accounts<br />

used for business, the rapid adoption of<br />

mobile devices and file sharing apps, and<br />

employee-owned devices with access to<br />

corporate content.<br />

In the cloud-collaboration space, users are<br />

very often ahead of IT. When employees<br />

started to collaborate online, they introduced<br />

basic, consumer-grade cloud storage solutions<br />

that do not normally offer the data protection<br />

or enterprise control capabilities businesses<br />

require into the workplace, as alternatives<br />

were not readily available. Today, Enterprise<br />

Mobility Management (EMM) solutions<br />

provide content management security and<br />

protection alongside wider mobility support<br />

to help businesses prevent leakage and theft<br />

and enable the distribution and sharing of<br />

corporate information while ensuring that it<br />

remains secure.<br />

38 • EMEA 2013


Secure content distribution<br />

The role of mobile content management<br />

across industries<br />

The uptake of mobile devices varies across<br />

countries, industries and job roles. While<br />

sharing content on tablets and mobile phones<br />

may not be suitable for everyone, many have<br />

seen great benefits:<br />

Aviation: This is an example of an<br />

industry where tablets have completely<br />

transformed customer experience and the<br />

work environment. Air France now offers<br />

customers the possibility to download digital<br />

versions of newspapers on their mobile<br />

devices on the day of their trip1, and KLM<br />

and Air France have recently announced the<br />

launch of inflight Wi-Fi2.<br />

Aircraft operators also utilise Electronic<br />

Flight Bags (EFBs) to streamline updates<br />

to their flight manuals. Instead of providing<br />

paper copies of manuals that had to be<br />

reprinted every two weeks, digital content can<br />

be stored on tablets and updated with ease.<br />

With a conventional flight bag containing an<br />

average of 12,000 sheets of paper per pilot,<br />

EFBs offer significant green benefits by<br />

reducing paper use and, through decreased<br />

weight, reducing fuel consumption. Having<br />

switched to EFBs, one airline expects to save<br />

nearly 16 million sheets of paper a year and<br />

326,000 gallons of jet fuel.3 By abolishing<br />

heavy 40-pound flight bags in favour of<br />

EFBs, airlines have also been able to address<br />

back injuries, a health and safety issue not<br />

uncommon among pilots. As EFBs are<br />

subject to stringent compliance and security<br />

measures to ensure passenger safety and<br />

protect sensitive data, a suitable enterprise<br />

mobility management solution is critical.<br />

Education: Tablet devices are changing the<br />

modern classroom, and schools see better<br />

engagement from students and increased<br />

relevancy of the instructional materials from<br />

eLearning, as videos, presentations and<br />

eBooks become readily accessible. Bringyour-own-device<br />

(BYOD) schemes that<br />

allow pupils to access teaching material on<br />

their own mobile devices are becoming more<br />

important to schools and universities, with 67<br />

per cent of UK schools currently considering<br />

BYOD important, up from 52 per cent in<br />

2012.4 To ensure that pupils have access to<br />

required classroom content, remain secure<br />

and not access unsuitable content, schools<br />

and universities utilise device and content<br />

management systems that enable them to<br />

restrict access to inappropriate websites<br />

as well as push relevant study material to<br />

devices in specified classrooms only.<br />

Healthcare: Healthcare providers across<br />

Europe are under increasing pressure to<br />

realise cost savings and improve patient<br />

care, which lead to this industry seeing rapid<br />

uptake of mobile devices. Health workers<br />

can access patient information on-the-go,<br />

eliminating the need to go into the practice<br />

before being able to see patients. Mobile<br />

devices are streamlining work processes,<br />

with doctors and nurses having information<br />

about a patient immediately available on their<br />

tablets, eliminating the need for a computer<br />

or paper chart. A lot of work is now done<br />

exclusively on tablets. Patient information<br />

is accessed through mobile devices that are<br />

shared across shifts and can travel anywhere<br />

and healthcare privacy laws requiring data<br />

security become increasingly important.<br />

Mobile device and content management<br />

solutions that enable shared device ownership<br />

ensure that patient data is only accessible to<br />

the appropriate healthcare individual.<br />

Field Sales: This is an area where tablets<br />

will ultimately take over and laptops will<br />

be phased out as companies update their PC<br />

inventory. Field sales teams will do sales<br />

presentations on mobile devices and access<br />

corporate content such as brochures and<br />

pricing information through these. With<br />

content managed centrally, any additional<br />

information a prospect or client may require<br />

can be pushed to the individual device<br />

immediately, providing the sales executive<br />

will any content required.<br />

Integration with existing infrastructure<br />

ensures simplicity<br />

The influx of mobile devices in enterprises<br />

has, to a large extent, been user driven and<br />

users have determined which solution is<br />

being used, without the enterprise taking cost,<br />

architecture, security, audit-ability or logging<br />

of activities into account. Professional<br />

procurement of content management<br />

solutions, with distinct prerequisites,<br />

regulatory and integration requirements is<br />

only now starting to emerge.<br />

Through integrated, secure content<br />

repositories, businesses are able to control not<br />

only content but also the geographic location<br />

the content is enabled for - only in proximity<br />

to the office for example, the tools that can<br />

be used to open and read content, and the<br />

rights and permissions around the content,<br />

limiting which content can be printed, edited<br />

or forwarded. To prevent leakage of corporate<br />

data and ensure that devices read contents<br />

securely, organisations can use network<br />

directory credentials for subscription access<br />

control lists to enable EMM integration<br />

with corporate repository services such as<br />

SharePoint or encrypted file share drives such<br />

as Amazon drives.<br />

The importance of user experience<br />

Enterprise-grade content management<br />

solutions need to be user-friendly and<br />

non-invasive if they are to successfully<br />

replace consumer-grade solutions in the<br />

enterprise. A hybrid approach where storage<br />

is a combination of internal and external<br />

storage can, for example, allow for the most<br />

flexibility. It enables companies to share<br />

content with their own employees through<br />

secure mobile access to SharePoint or File<br />

servers and allow employees to utilise<br />

personal storage areas, utilising third party<br />

repositories in cases where companies don’t<br />

have sufficient internal storage capacity.<br />

Cost ramifications of unmanaged content<br />

management solutions<br />

Collaboration is one of the two main factors<br />

in the content management space, the second<br />

one, which many businesses are not taking<br />

into account, is cost management. The cost<br />

ramifications of synchronising gigabytes of<br />

files are often overlooked. While data plans<br />

may be fairly generous in some countries,<br />

they can become a major cost factor when<br />

employees are using mobile devices while<br />

travelling across EMEA, or are using BYOD<br />

devices. Companies that sign employees up<br />

to automatically receive digital content but<br />

don’t limit content from downloading while<br />

roaming may face major cost implications.<br />

Cost control is a main control factor<br />

companies need to take into account and<br />

chosen enterprise mobility management<br />

solutions need to be able to facilitate this<br />

granular level of control. •<br />

EMEA 2013 • 39


Mobile security<br />

Cutting mobile content risks<br />

by Kees Van Veenendaal, VP and General Manager of EMEA, MobileIron<br />

The old model for content security - heavy containerization - protected data by separating it<br />

from other data and blocking unauthorized apps or users, but users did not like the experience.<br />

People that buy an iPhone or Android device do not want to flip between enterprise and<br />

personal screens and use third-party apps instead of the native experience they love. This<br />

compromises productivity and creates security risks as employees develop workarounds.<br />

Targeted containerization secures enterprise content within the native experience.<br />

Kees van Veenendaal is the VP and General Manager of EMEA at MobileIron; hebrings more than 25 years of experience throughout<br />

EMEA, the Americas and APAC to his role.<br />

Prior joining MobileIron, Mr van Veenendaal was Vice President <strong>World</strong>wide Sales for Trapeze Networks; Vice President of EMEA sales<br />

at Extreme Networks; and Managing Director of US Robotics Benelux. Mr van Veenendaal also held senior European management roles<br />

at Gandalf, Digital Communications Associates.<br />

Kees van Veenendaal has an MBA from Universiteit Nyenrode, the Netherlands.<br />

Mobile technology is driving a massive<br />

shift in the ability of IT departments to truly<br />

support the way people want to work. Across<br />

Europe, we see companies becoming Mobile<br />

First organizations, embracing mobility as<br />

a primary computing platform in order to<br />

transform their businesses and increase their<br />

competitiveness. A mobile deployment used<br />

to mean the company issued 200 BlackBerrys<br />

to executives. Now, it means that every<br />

employee in an organization is using mobile<br />

apps and accessing corporate content via a<br />

mobile device that may or may not be owned<br />

by the company.<br />

The result is that people expect to be able<br />

to access the corporate content they need on<br />

any device at any time. However, as soon as<br />

you put email on a mobile device you risk<br />

losing enterprise content. Email attachments<br />

can be forwarded or uploaded to a consumer<br />

cloud storage service. Content can be cut and<br />

pasted from one email account to another.<br />

Apps introduce additional security risks. Data<br />

moving between an app and the corporate<br />

network is vulnerable to man-in-the-middle<br />

attacks via rogue Wi-Fi hotspots. App data<br />

stored on the mobile device could be accessed<br />

by a malicious app a user inadvertently<br />

installed. Securing mobile content presents<br />

several distinct challenges.<br />

Mobile Content Security Challenges<br />

Mobile devices are consumer devices not<br />

corporate devices<br />

In the days of old mobile, everyone<br />

was issued BlackBerrys because the IT<br />

department could lock them down. That’s<br />

not possible with the new mobile operating<br />

systems. Now, mobile devices are no longer<br />

issued by IT. People who love using their<br />

smartphones and tablets in their personal<br />

lives bring them to work. Then the Mobile<br />

IT team needs to figure out how to secure<br />

corporate content without compromising the<br />

employee’s privacy in terms of their personal<br />

content. Regardless of whether the mobile<br />

device is owned by the employee or the<br />

company, most devices will be used for both<br />

personal and professional use.<br />

Mobile devices store large amounts of data in<br />

small, easy to lose packages<br />

Storage capacity is growing, and, in addition,<br />

most Android devices have removable SD<br />

cards. Content is stored in email attachments<br />

and in mobile apps. And all of it is in a small<br />

device that is easily lost or stolen. Enterprises<br />

need to be able to ensure the security of dataat-rest<br />

on the device.<br />

Mobile devices are hyper-connected<br />

Apple devices have iCloud and any device<br />

can connect to file-sharing services, such<br />

as Dropbox. This makes it very easy for an<br />

40 • EMEA 2013


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Mobile security<br />

employee to move data to clouds outside<br />

enterprise control. Mobile devices are also<br />

constantly connecting to any available<br />

network, private or public whether or not it<br />

is trusted. As a result, data moving between<br />

a device and the corporate network is<br />

vulnerable to man-in-the-middle attacks via<br />

rogue Wi-Fi hotspots. Mobile IT needs to be<br />

able to secure data-in-motion as it travels to<br />

and from the device.<br />

Lockdown will fail<br />

Mobile devices should never be locked down<br />

like laptops because lockdown fundamentally<br />

damages the user experience impeding<br />

productivity and impairing adoption. The<br />

core tenet of successful mobile deployments<br />

is the preservation of user experience. A<br />

mobile program will not be sustainable<br />

if user experience is compromised when<br />

employees start using their personal devices<br />

for corporate email and apps.<br />

Every computing deployment, whether<br />

mobile or not, carries some risk of content<br />

loss. With mobile, there are several best<br />

practices which organizations follow to<br />

mitigate this risk to the point that it is<br />

acceptable given the positive business value<br />

of mobile.<br />

Best Practices for Securing Mobile Content<br />

Email attachments are the primary source<br />

of enterprise documents on mobile devices.<br />

Mobile IT’s challenge is to give users access<br />

to business email on their mobile devices<br />

while ensuring those users cannot save<br />

business email attachments to apps or clouds<br />

outside IT security controls. The security<br />

challenge of mobility for the enterprise is<br />

that this one-click sharing of information<br />

from the device to external services is<br />

simple and frequent. A business email<br />

attachment can quickly end up in Dropbox<br />

without any malicious intent or even effort<br />

on the part of the user.<br />

Ensure every device is under management<br />

Every device needs to be connected to<br />

a Mobile IT platform that can secure<br />

and manage the device, the apps, and<br />

the content. If the user deactivates or<br />

removes the management client from the<br />

device, that will trigger a policy violation<br />

in the system. The system should be<br />

configured to immediate block the device<br />

and the apps on it from accessing the<br />

corporate network.<br />

Monitor the operating system<br />

When a device’s operating system is<br />

jailbroken or rooted the established data<br />

security measures are no longer reliable.<br />

Therefore, automated rules should<br />

immediately quarantine the device, remove<br />

corporate data, and notify the administrator.<br />

Companies should also determine what<br />

versions of an operating system they are<br />

willing to support. Devices running on<br />

the latest version will be up-to-date with<br />

all available security patches while older<br />

versions will not.<br />

Set and enforce passcode policy and<br />

encryption: Passcode enforcement prevents<br />

unauthorized access to the device. Companies<br />

should also implement an auto-wipe policy<br />

that wipes the device completely after<br />

a predefined number of failed password<br />

attempts. This minimizes the risk of brute<br />

force attacks on lost or stolen devices.<br />

Protect email and attachments<br />

Restricting email forwarding prevents<br />

corporate email from being forwarded<br />

through the user’s personal email account on<br />

the device. It also prevents emails from being<br />

moved by the user from a corporate inbox to<br />

a personal inbox. Companies also need to be<br />

able to restrict the ability to use third-party<br />

file readers or document management apps to<br />

open email attachments. When an attachment<br />

is opened in one of these apps, it can be<br />

saved or distributed completely without<br />

the knowledge of IT. As a result, email<br />

attachments are the biggest risk of mobile<br />

data loss.<br />

Establish identity<br />

Especially in BYOD initiatives, user and<br />

device identity must be strongly established.<br />

Securing email, Wi-Fi, and VPN access<br />

using certificates protects identity and<br />

also improves the user experience since<br />

certificates provide complex credentials<br />

automatically.<br />

Define the role of iCloud<br />

In a well-designed corporate deployment,<br />

iCloud will not increase the risk of data loss.<br />

iCloud does not back up any email or PIM<br />

content that comes from corporate sources<br />

such as Exchange or Notes. iCloud also does<br />

not back up encrypted data, which means data<br />

from apps that use iOS Data Protection will<br />

not be stored in iCloud.<br />

Blacklist known threats<br />

The mobile app landscape moves quickly<br />

but most organizations have identified a set<br />

of file readers or other apps that they do not<br />

trust. These apps should be blacklisted so that<br />

if an employee downloads a blacklisted app,<br />

a remediation action will be automatically<br />

triggered. This action could range from a<br />

simple non-compliance SMS notification to a<br />

full device quarantine which strips the device<br />

of all enterprise email, apps, connectivity, and<br />

settings until the threat is removed.<br />

Conclusion<br />

The old model for content security was<br />

‘heavy containerization’. A container is set of<br />

protected data. This data is separated from all<br />

other data on the device and is protected from<br />

unauthorized apps or users.<br />

In the first generation of enterprise mobility,<br />

all business data and associated apps were<br />

segregated into monolithic, email-based<br />

containers. While this protected business<br />

data, it forced users into an experience they<br />

did not like.<br />

People buy an iPhone, iPad or Android<br />

device because they love the user<br />

experience that was developed specifically<br />

for that device. When they use that<br />

device at work they want to be able to<br />

have that same experience. The heavy<br />

containerization approach forces people<br />

to flip between enterprise and personal<br />

screens on their device or requires they<br />

use a third-party email app instead of the<br />

native experience they love. Not only do<br />

these approaches compromise productivity<br />

but they create security risks as employees<br />

figure out workarounds.<br />

In the new generation of enterprise<br />

mobility, user experience is core and the<br />

new answer is ‘targeted containerization,’<br />

securing the enterprise content within the<br />

native experience and leaving the personal<br />

content untouched. Mobile First companies<br />

know that mobile access to corporate<br />

content is critical and their vision is that<br />

employees can work the way they want to,<br />

on the device of their choice, with the apps<br />

that they love, and access to the content<br />

they need, all in a secure environment. •<br />

42 • EMEA 2013


Ultra HD TV<br />

Ultra HD TV - real quality<br />

by Ian Trow, Senior Director of Emerging Technology and Strategy, Harmonic<br />

Ultra HD is an important opportunity for the broadcast television industry. There are significant<br />

hurdles concerning interfacing, format standardization, and bandwidth requirements, but<br />

solutions exist. Cost-effective deployment of services at lower resolutions is needed for<br />

services such as OTT HD, since costs are a major problem for broadcasters in a multi-screen<br />

world. Repurposing HD and cinema derived content is crucial to providing an exciting Ultra<br />

HD experience in the home environment and offer applications like movie download at<br />

resolutions beyond HD.<br />

Ian Trow is the Senior Director for Emerging Technology & Strategy at Harmonic; he has over 20 years of systems and design experience<br />

in High Definition and MPEG video products. Prior to Harmonic, Mr Tow’s worked at Thomson as Director of Compression Technology<br />

and at Envivio (VP of Technology & Marketing). Mr Trow also served at Tandberg Television as Engineering Group Manager and, later,<br />

as its Segment and Product Manager for satellite, terrestrial and IP delivery of compressed material. Before Tandberg, he was a design<br />

engineer at Snell & Wilcox and Sony Broadcast.<br />

Ian Trow obtained a B.Sc in Electronic Engineering from the University of Sussex and is Cisco CCNP & CCDA qualified.<br />

Since the introduction of television in<br />

1925, the user experience has dramatically<br />

changed. Aside from the resolution<br />

increasing, television has evolved in such<br />

a way that consumers can now watch highquality<br />

video content on a wide range of<br />

devices, including TVs, PCs, tablets, and<br />

smartphones. Some second-screen devices,<br />

like tablets, feature Retina® displays with<br />

a high enough pixel density that the human<br />

eye is unable to discern pixelation at a<br />

typical viewing distance.<br />

As consumer demand for a superior video<br />

quality increases, a new resolution format<br />

called Ultra High Definition Television<br />

(Ultra HD) promises to further optimize<br />

the television viewing experience, bringing<br />

cinema like clarity to the home television<br />

viewer. This article provides a detailed<br />

overview of the Ultra HD format, including<br />

the broadcast workflow, compression<br />

techniques, and other necessary steps that<br />

need to be accomplished in order to achieve<br />

widespread consumer adoption.<br />

What is Ultra HD<br />

Ultra HD is a new digital video format<br />

proposed by NHK Science & Technology<br />

Research Laboratories and defined<br />

and approved by the International<br />

Telecommunication Union (ITU). The Ultra<br />

HD format presents native video at two<br />

resolutions (See Figure 1.). In this article we<br />

shall limit discussion to the lower resolution<br />

of 3840 x 2160 pixels. This is a massive<br />

improvement in quality over the current HD<br />

format (1920 x 1080) and just a step below<br />

what is currently being offered by digital<br />

cinema 4K (4096 x 2160).<br />

The Ultra HD Workflow<br />

The Ultra HD workflow is extremely<br />

complex. This is due to three main factors.<br />

Broadcast involves high-bandwidth realtime<br />

transfer throughout the chain. Content<br />

EMEA 2013 • 43


Ultra HD TV<br />

is derived from a variety of ingest sources<br />

as well as consisting of both national and<br />

regional feeds. Lastly, even though the<br />

highlighted workflow relates to Ultra HD,<br />

television provision has to increasingly<br />

cater for an ever expanding number of<br />

multiscreen options.<br />

It is likely that in the interest of time<br />

broadcasters will provision their production<br />

environment for Ultra HD in the same way<br />

that most production facilities currently<br />

do for HD. To cater for resolutions lower<br />

than Ultra HD, transcoding the original<br />

broadcast content in a cost-effective manner<br />

is critical for broadcasters to maintain a<br />

healthy margin. While this article discusses<br />

the impact of Ultra HD and advocates<br />

the use of HEVC, such a compression<br />

scheme is equally applicable to the need for<br />

compression efficiency in multiscreen all the<br />

way up to OTT delivery. Many of<br />

the challenges a broadcaster faces<br />

when trying to establish an Ultra<br />

HD channel are easier to solve in<br />

a multiscreen environment. This<br />

is because there is often little<br />

legacy STB or PVR provision<br />

associated with multiscreen.<br />

Multiscreen playback relies on<br />

software running on standard<br />

platforms that can be quickly<br />

repurposed for new compression<br />

strategies like HEVC.<br />

HEVC: Enabling Broadcasters to<br />

Support Ultra HD<br />

A major concern for broadcasters and<br />

content providers is how to deliver<br />

high-bandwidth services like Ultra HD,<br />

specifically for catch-up TV. A new video<br />

compression standard called High Efficiency<br />

Video Coding (HEVC) provides the answer.<br />

HEVC significantly improves upon the<br />

current compression standard H.264 also<br />

known as MPEG-4 AVC (Advanced Video<br />

Coding) by reducing the data rate needed for<br />

high-quality video coding by approximately<br />

50 percent. This enables broadcasters to<br />

deliver higher-quality services like Ultra HD<br />

using the same amount of bandwidth. (See<br />

Figures 2, 3, and 4.)<br />

HEVC uses larger block sizes, enabling<br />

more efficient coding of large images,<br />

especially of regions with few changes<br />

in the picture content. This is extremely<br />

beneficial for applications like Ultra HD.<br />

Improved Intra-frame prediction allows<br />

better prediction of pixels by exploiting<br />

redundancy within the current frame.<br />

By offering more prediction directions<br />

than AVC, HEVC allows for a more<br />

sophisticated way of predicting and coding<br />

the intra mode selected.<br />

HEVC also addresses other issues, such as<br />

banding, which won’t be discussed in great<br />

detail in this article. However, it is important<br />

to note that HEVC may include support<br />

for multi-view video coding or stereo 3D<br />

video in the future. This, combined with<br />

scalable video coding, allows a video<br />

stream, sequence, or image to be represented<br />

in multiple ways and formats. In other<br />

words, content can be prepared in different<br />

resolutions, screen characteristics, frame<br />

or bit rates, for viewing on multiscreen<br />

devices, all while retaining a high level of<br />

coding efficiency. With consumer demand<br />

for multiscreen services rapidly increasing,<br />

this will be important feature of HEVC.<br />

Ultra HD and Multiscreen<br />

While Ultra HD brings prestige to the<br />

television screen, the real challenge is cost<br />

effective delivery in multiple playout and<br />

delivery scenarios, enabling increased<br />

opportunities for targeted advertising.<br />

The MPEG DASH standard will allow<br />

content delivery operators to deliver<br />

Internet services, including Ultra HD,<br />

while containing the CAPEX and OPEX<br />

associated with multiscreen delivery.<br />

DASH provides operators with a universal<br />

HTTP delivery format to cost-effectively<br />

scale adaptive streams to any connected<br />

device using a common encryption<br />

technology with one master key. Utilizing<br />

a single encryption standard, content is<br />

encrypted once and streamed to clients<br />

that support various digital rights<br />

management (DRM) systems. Each client<br />

receives a set of decryption keys and<br />

other necessary information using its<br />

specific DRM system, which is signaled<br />

in the DASH protocol, and then has<br />

the capability to stream the commonly<br />

encrypted content from the same server.<br />

DASH can be implemented across all<br />

content delivery vehicles – broadcast,<br />

mobile, interactive television, and the<br />

Internet – while providing interoperability<br />

between all DASH profiles and connected<br />

devices. As Ultra HD content makes its way<br />

onto multiple consumer devices, DASH will<br />

be a critical enabling technology.<br />

Applications and Consumer Adoption<br />

HD took nearly a decade to mature;<br />

therefore, Ultra HD will likely be a gradual<br />

process before becoming a worldwide<br />

broadcast format. When HD was first<br />

introduced, there was relatively little<br />

content. A lot of content was upconverted<br />

from SD. A move to Ultra HD requires an<br />

even greater stretch to allow HD<br />

content to be repurposed.<br />

It’s expected that Ultra HD will<br />

first take off in the production<br />

environment for applications<br />

like sports, where there’s a huge<br />

drive to achieve higher quality<br />

for major events like the <strong>World</strong><br />

Cup. Ultra HD allows the use of<br />

advanced slow-motion and pan<br />

and scan techniques to capture<br />

high-quality live and replay<br />

content, which will greatly<br />

enhance sporting event coverage.<br />

Ultra HD also has massive appeal in the<br />

download market, where industry giants like<br />

Netflix and YouTube are already encoding<br />

their files using HEVC to support Ultra HD<br />

for cinematic 4K releases.<br />

Before Ultra HD achieves mass adoption,<br />

work needs to be done on the consumer<br />

front. Current HDMI interfaces only support<br />

resolutions up to 1080p at 50Hz and 60Hz.<br />

Without a further iteration of the HDMI<br />

standard any move toward Ultra HD will<br />

be temporally hindered, unless the user is<br />

prepared to use dual synchronized HDMI<br />

connection into televisions. This approach is<br />

unlikely to appear on consumer equipment,<br />

although it is interesting to note that this<br />

approach has been adopted on 4K cameras<br />

where four HDMI synchronized connections<br />

are used to sustain the bandwidth required<br />

for baseband 4K video.<br />

HDMI does have competition, namely<br />

HDBaseT, an Ethernet-based standard using<br />

Cat 5e connectors with major manufacturer<br />

backing from the likes of Sony, Samsung,<br />

44 • EMEA 2013


Ultra HD TV<br />

and LG as well as Thunderbolt, commonly<br />

available on Apple devices. For Ultra HD<br />

to be a genuine successor to HD, consumer<br />

interface standards will need to evolve<br />

to support the data rates needed for Ultra<br />

HD at a minimum of 50 Hz and 60 Hz<br />

for broadcast and 100 Hz and 120 Hz for<br />

premium download applications.<br />

SES ASTRA: An Ultra HD Real-<strong>World</strong><br />

Case Study<br />

While work remains to be done on the<br />

consumer front, the satellite industry has<br />

already been successful at transmitting<br />

Ultra HD content. SES recently partnered<br />

with Harmonic and Broadcom Corporation<br />

to pioneer the first Ultra HD transmission<br />

in the new HEVC standard live from an<br />

ASTRA satellite at 19.2 degrees East.<br />

The end-to-end demonstration was<br />

powered by advanced HEVC transcoding<br />

(ProMedia Express) from Harmonic<br />

and an HEVC decoder from Broadcom<br />

for receiving HEVC encoded Ultra-HD<br />

television transmissions. The signal was<br />

broadcast in DVB-S2 using a data rate of<br />

20 Mbit/s, proving that the HEVC format<br />

is able to support Ultra HD content at<br />

manageable bitrates.<br />

This demonstration marked the first time<br />

that a full 3840 x 2160 pixel Ultra HD<br />

picture was broadcast live using HEVC<br />

compression. Previous demonstrations<br />

were broadcast in H.264 often using<br />

four HD encoders in parallel which<br />

introduces motion estimation and<br />

synchronization issues in the final decoded<br />

and reassembled picture. While Ultra HD<br />

delivery to consumer homes may still<br />

be a bit in the future, the demonstration<br />

iilustrates to broadcasters the potential for<br />

Ultra HD services.<br />

Conclusion<br />

Ultra HD is an exciting opportunity for<br />

the broadcast television industry. While<br />

there exist significant hurdles concerning<br />

interfacing, format standardization, and<br />

bandwidth requirements, solutions exist that<br />

will allow such services to launch within the<br />

next few years.<br />

Understanding the likely workflow<br />

associated with Ultra HD will aid the costeffective<br />

deployment of services at lower<br />

resolutions, for example OTT HD delivery.<br />

This is vital for broadcasters to improve<br />

their margins. CAPEX and OPEX have been<br />

an increasing problem for broadcasters in a<br />

multiscreen world.<br />

Native Ultra HD content is the ideal for a<br />

broadcast service, but this expectation will<br />

be seldom met with initial service launches.<br />

Understanding how to repurpose HD and<br />

cinema derived content will be crucial if<br />

Ultra HD sets are to deliver the wow factor<br />

in the home environment and open up<br />

parallel applications like movie download at<br />

resolutions beyond HD.<br />

The prospect of Ultra HD will further<br />

narrow the perception of a scene portrayed<br />

by television being indistinguishable<br />

from the live event, further immersing the<br />

viewer and enhancing the perception of<br />

broadcast television. •<br />

<strong>Connect</strong>-<strong>World</strong> now on<br />

Facebook & Twitter<br />

<strong>Connect</strong>-<strong>World</strong>, the world’s<br />

foremost discussion forum for<br />

leaders in the ICT industry, is now<br />

available on Facebook and Twitter.<br />

The world’s top ICT decision<br />

makers express their opinions in<br />

<strong>Connect</strong>-<strong>World</strong>. They use clear,<br />

non-technical, English to discuss<br />

how ICT helps shape regional<br />

and global development. The<br />

articles essentially examine the<br />

influence that ICT products and<br />

services have on the way people<br />

live and do business. With<br />

separate editions for each of<br />

the world’s regions, the reports<br />

highlight the most important ICT<br />

trends and issues influencing<br />

socio-economic growth.<br />

<strong>Connect</strong>-<strong>World</strong> is now available<br />

to follow on Twitter (http://twitter.<br />

com/#!/<strong>Connect</strong><strong>World</strong>ICT) and<br />

Facebook http://www.facebook.<br />

com/connectworld.ict<br />

Also, it is still possible, for FREE,<br />

to directly access all past and<br />

present <strong>Connect</strong>-<strong>World</strong> articles,<br />

ICT Industry press releases,<br />

eLetters, ICT News and more at<br />

www.connect-world.com.<br />

EMEA 2013 • 45


Bandwidth<br />

Conquering through copper - delivering content<br />

wherever needed<br />

by Lee Palmer, Commercial Director, The Kenton Group<br />

With the growing demand for bandwidth to deliver the content today’s users require, especially<br />

given the growth in mobile device ownership and bandwidth-hungry applications. So there<br />

is a growing concern of a crunch in the future. Dealing with a crunch means choosing the<br />

most effective medium will be the key to operator success. Fibre will always be the number<br />

one choice, but copper is everywhere, inexpensive and inherently reliable, but for the last<br />

mile copper is here and available now.<br />

Lee Palmer is the Commercial Director of The Kenton Group. He has more than 20 years of sales experience in senior roles: at Jtec, he<br />

served as EMEA Sales Director; at 3Com as Business Development Manager for the CommWorks division; ad at RAD /Axerra where he<br />

held the position of Carrier Business Development Manager and Sales Director.<br />

The perpetual demand for ever increasing<br />

bandwidth and capacity on the world’s<br />

telecom networks continues year after year.<br />

This growth is driven by the increasing use<br />

of mobile-connected devices such as tablets,<br />

Smartphones, laptops and smart TVs, to name<br />

a few. High-definition video and streamed<br />

content on consumer devices is on the rise,<br />

and there is no sign of this growth slowing<br />

anytime soon.<br />

There is a growing concern surrounding a<br />

future ‘capacity crunch’, where the ability<br />

to deliver capacity will be outstripped by<br />

demand. Each year new devices, increased<br />

capabilities and intelligence are being<br />

introduced in the market, with the number<br />

of mobile-connected devices set to exceed<br />

the number of people on earth by the end<br />

of 2013, reaching ten billion by 2016i.<br />

Regionally, Western Europe is going to have<br />

one of the fastest growth rates in mobile<br />

devices and connections with a 13 per cent<br />

and ten per cent compound annual growth<br />

rate from 2012 to 2017 respectively. By<br />

2017, the Middle East and Africa will have<br />

the strongest mobile data traffic growth of<br />

any region at 77 per cent compound annual<br />

growth rateii. These stats alone highlight the<br />

need for higher bandwidth – if we ignore the<br />

signals we will put increasing pressure on the<br />

networks, which may already be at risk of<br />

crashing in the next 20 years.<br />

As content increases, bandwidth needs to<br />

expand<br />

In order to stream high value content - TV,<br />

video, games or otherwise – uninterrupted,<br />

with zero buffering, more bandwidth is<br />

needed. Most cities and new commercial or<br />

residential developments are well connected<br />

as fibre infrastructure is now the de facto<br />

standard for connectivity, this means people<br />

can effectively use the myriad of IP services<br />

and more importantly, have the content they<br />

require delivered over a high speed medium.<br />

Fibre delivers unbeatable speeds and is as<br />

future proof as a technology can be. Fibre<br />

delivery reduces cost for deployment in areas<br />

where the population is higher. In fact fibre<br />

is now moving into the LAN environment<br />

with many corporates using Fibre to the Desk<br />

(FTTD) in buildings, by utilising GPON in<br />

the architecture, as it can reduce capital and<br />

operational costs by up to 70 per cent. This<br />

up and coming technology is called FiberLan<br />

46 • EMEA 2013


Bandwidth<br />

and will have the ability to deliver high speed<br />

content to the desk.<br />

While areas across EMEA, such as the<br />

big cities and urban areas of Scandinavia,<br />

England and France, are well served by<br />

carriers and already have superfast coverage<br />

(well above average at 65 per cent or more)<br />

iii, the suburbs and rural areas suffer.<br />

In rural areas it is significantly more<br />

expensive to deploy fibre as the civil works<br />

are such a big part of the deployment.<br />

Rural areas are suffering from well below<br />

average superfast coverage (under 35 per<br />

cent) in three of the biggest countries in<br />

Europe – Italy, France and the UKiv. This<br />

is unsurprising due to cost implications<br />

and means both business and residential<br />

customers in these areas are disadvantaged.<br />

They require higher levels of speed and<br />

service, but the service providers cannot<br />

support this without having to deploy new<br />

infrastructure. The costs associated with<br />

fibre installations are high and need to be<br />

divided over the number of customers served<br />

by the network and as such, costs become<br />

increasingly expensive as the number of<br />

customers served decreases.<br />

Other superfast technologies have been<br />

created and merged with the three main<br />

technologies to cover 70 per cent of<br />

Europe - Docsis 3 cable (Data over Cable<br />

Service Interface Specification Version 3),<br />

VDSL (Very-high-speed Digital Subscriber<br />

Line) and FTTP (Fibre to the Premises).<br />

However, because of overlaps of these<br />

technologies, they reach barely 50 per cent<br />

of householdsv. Mapping by broadband<br />

analyst Point Topic, reveals how much<br />

larger the digital divide is in rural areas,<br />

particularly where superfast broadband is<br />

concerned. 78 per cent of rural EU homes<br />

have access to standard broadband but only<br />

12 per cent - five million - have superfast<br />

broadband available. Therefore, 35 million<br />

of the 40 million rural homes in Europe are<br />

waiting for superfast broadband to arrive.<br />

Today’s technologies are very much built<br />

into everyday life and so digital deprivation<br />

can rightly be considered alongside more<br />

traditional social deprivations, such as low<br />

income, unemployment or poor education.<br />

Access to broadband brings great benefits<br />

to rural areas, improving quality of life<br />

through increased access to things like<br />

government services, e-learning, commerce<br />

and social interaction. Many of these<br />

services are delivered through video or<br />

VoIP and should be delivered effectively<br />

without interruption or buffering, and so<br />

bandwidth needs to increase.<br />

Delivering the solution<br />

It’s important to have the ability to deliver<br />

content wherever it is needed, regardless<br />

of location. Despite all the recent attention<br />

given to FTTH where cities and developing<br />

towns are benefitting from new superfast<br />

networks, it has reached only 12 per cent of<br />

Europe’s homesvi and the average take rate<br />

across MENA is only 33 per centvii. This<br />

shows that users only ‘pay’ for the bandwidth<br />

they require to receive the content they<br />

demand. The solution for rural areas is much<br />

more complex but this should be an area for<br />

carriers to focus on, improving the amount<br />

of bandwidth they can squeeze out of copper<br />

through new technological advancements to<br />

deliver what the customer needs not what he<br />

perceives he needs. For the carrier and service<br />

providers it’s about maximising existing<br />

assets to enable content delivery.<br />

For example, using innovative technologies<br />

to enhance the performance of existing<br />

copper-based networks, providers can<br />

extend the reach of broadband access<br />

lines and maximise usage on the existing<br />

infrastructure. By utilising technologies<br />

such as FTTX, VDSL, EFM bonding and<br />

even ADSL bonding, broadband reach can<br />

be extended and speeds can be increased.<br />

Utilisation of these new technologies makes<br />

it possible to achieve speeds of 10Mb,<br />

20Mb and higher. One such technology<br />

BET (Broadband Enabling Technology),<br />

extends broadband service to 12Km from the<br />

exchange and allows an improved service<br />

level to be provided to so-called ‘notspots’<br />

beyond a local telephone exchange’s<br />

normal limit of around 5km. Although not<br />

considered Superfast Broadband it enables<br />

uninterrupted gaming or video streaming<br />

content to the user.<br />

BET has been successfully deployed in the<br />

UK and, by using one or two pair copper<br />

cables, enables users to receive the same<br />

level of service as other broadband users<br />

positioned closer to an exchange. Broadband<br />

Regenerator (BBR) technology has also<br />

just been released to effectively boost the<br />

broadband speeds at the edge of the network,<br />

where users have ‘broadband’ but at relatively<br />

low speeds, say ½ Mb. BBR can boost this to<br />

up to seven times the current speed.<br />

Both solutions require a head end cabinet<br />

to be deployed in the serving exchange,<br />

but simple connectivity to the copper<br />

infrastructure with a mid-line length<br />

regenerator to the customers’ NTE (Network<br />

Terminating Equipment) provides a cost<br />

effective clean solution to the “Not Spots”<br />

and low speed edge users. These users can<br />

then have the content they require delivered<br />

over what has rapidly become the fourth<br />

utility, broadband access.<br />

Summary<br />

User habits have undoubtedly evolved and<br />

will continue to do so, placing increasing<br />

demand on bandwidth to deliver the content<br />

the users require, particularly with the growth<br />

of mobile devices and bandwidth-hungry<br />

applications. Looking at the average family<br />

today, they could be sat at home streaming<br />

content on a SmartTV and iPlayer, as well<br />

as downloading data on their tablet and<br />

Smartphone. With this in mind, demand for<br />

higher bandwidth is only going to continue to<br />

increase and should be seen as an opportunity<br />

for vendors and operators across EMEA to<br />

make a difference to broadband accessibility.<br />

Choosing the correct and most effective<br />

medium is the key. Fibre will always be the<br />

number one choice, but don’t forget copper;<br />

it’s everywhere, inexpensive and inherently<br />

reliable. Copper in the last mile is here and it<br />

is available now, so don’t overlook what can<br />

be achieved on this network. •<br />

EMEA 2013 • 47


48 • EMEA 2013


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