Monetizing the NGN Investment: Market Prospects and Business Case for IMS and SDP based Applications

Report Summary

Next Generation Networks (NGN) promises a high quality end-user experience. Telecommunications service providers expect the NGN framework to provide them with tools that would ensure customer loyalty. However, the path towards achieving the ideal NGN is fraught with formidable challenges. The most critical challenge confronting operators is optimizing their OSS and BSS platforms, systems, and processes.

Deciding where to invest in NGN applications is difficult without key business case analysis.  Planning NGN application deployment is difficult without insights into application value to customers, services blending opportunities, or strategies for services migration.

Two key elements of NGN are Service Delivery Platforms (SDP) and the IP Multimedia Subsystem (IMS) framework for service creation, delivery, and management. This report addresses the IMS and SDP ecosystem and value chain, applications, and provides a market forecast for 2011 through 2016.

The report also provides an overall business case analysis for IMS and SDP as well as a per-application assessment for major IMS based applications. Finally, the report provides specific recommendations for network operators, infrastructure providers, and application providers.

Key Benefits:

• Market forecast from 2011 through 2016
• Understand the business case for SDP and IMS
• Identify the key applications within NGN environment
• Identify services blending opportunities for various applications
• Identify what VAS applications represent leading service opportunities
• Understand how the mix of paid vs. unpaid services will evolve over time
• Understand the changing role of end-user services and experience management
• Identify the anticipated revenue opportunities for value-added service applications
• Understand why some services will be subscription based while others will be on-demand or third party subsidized
• Understand the evolution of value from bearer services to  value-added service applications, content and information
• Understand the role and importance of third parties in subsidizing services revenue and new content and applications

 Audience:

• System integrators will better ascertain the value of the market size for IMS and SDP
• Application developers that need a better understanding of the economics from the operator and end-user perspective
• Wireless and wireline operators will gain insights into the value provided by IMS and SDP and the  implications to their business
• Telecom network infrastructure vendors will assess the importance of establishing or maintaining their presence among IMS and SDP stakeholders

Table of Contents:

1. Executive Summary 5

2. Current Landscape of IMS and SDP  6
2.1. IMS 6
2.1.1. IMS Components 7
2.2. SDP  8
2.2.1. Definition 9
2.2.2. Evolution  10
2.2.3. Benefits of SDP  11
2.3. SOA  13
2.3.1. Definition 13
2.3.2. Evolution  14
2.4. IMS and SDP Ecosystem and Value Chain  15
2.4.1. Vendors 15
2.4.2. Operators  46
2.4.3. Content and Application Providers 47
2.5. Re-evaluating the Market Drivers for SDP and IMS 49
2.5.1. IMS Supports the Drive to a Next Generation Network (NGN) 50
2.5.2. Application Control: Central Control of IP based Services 50
2.5.3. Market Driver: Need for More Revenue and Better Margins  51
2.5.4. Market Driver: Capital Savings 52
2.5.5. Market Driver: New Revenue Opportunities  53
2.5.6. Market Driver: Targeted Offerings and Premium Services  53
2.5.7. Market and Technology Driver: Operational Cost Savings 54
2.5.8. Market Driver: Service Creation and Delivery 55
2.5.9. Market and Technology Driver: Convergence Driving IMS 55
2.5.10. Operational Driver: Evolving to an Integrated Network58
2.5.11. Turning Point in Telecom is Good for IMS 59

3. IMS and SDP Applications 60
3.1. Application Descriptions and Value Proposition 61
3.1.1. Services Capability Interaction 62
3.1.2. Presence  63
3.1.3. Dynamic Address Book 74
3.1.4. Personalized Communications and Information 76
3.1.5. Universal Prepay 77
3.1.6. Consumer and Business Voice Services 78
3.1.7. Rich Calls 80
3.1.8. Video Calls  82
3.1.9. Messaging  88
3.1.10. Unified Communications  90
3.1.11. Push-to-X 99
3.1.12. Wireless-Wireline Convergence  105
3.1.13. Entertainment 111
3.1.14. Video on Demand  116
3.1.15. Community of Interest Communications121
3.1.16. Augmented Reality 121
3.1.17. Customer Relationship Management (CRM) 124
3.1.18. Dispatch, Tele-workers and Remote Workforce125
3.1.19. Identity Protection  125
3.1.20. Universal Billing 126
3.1.21. Social Networking  126
3.1.22. Services Blending  127
3.1.23. IMS and Advertising 128
3.2. Application Feature/Functionality Analysis  129
3.2.1. Quality of Service (QoS) and Resource Allocation Critical 129
3.2.2. Communications Integration 132
3.2.3. Premium Services  133
3.2.4. New Services Delivery Model  134

4. Market Outlook and Forecast 134
4.1. SDP Forecasts 135
4.1.1. Markets for SDP Solutions135
4.1.2. Functional Break-up of SDP Solutions Revenue 135
4.1.3. Mediawise Break-up of SDP Solutions Revenue 137
4.1.4. Geographical Break-up of Mediawise SDP Solutions Revenues 139
4.1.5. Markets for SOA Platforms145
4.2. IMS Forecasts 148
4.2.1. Overall Metrics 148
4.2.2. Video Telephony 152
4.2.3. Unified Messaging 156
4.2.4. PTT 159
4.2.5. Wireless Wireline Convergence  162
4.2.6. Online Gaming 165
4.2.7. Video on Demand  168
4.3. Outlook by Region  171
4.4. Outlook by Operator Type  171
4.5. Outlook by Application  171
4.6. New Business Opportunities 172

5. Business Case Analysis  173
5.1. Overall Business Case Portfolio  173
5.1.1. Application Monetization Categories  173
5.1.2. Revenue Inputs to the Business Case  174
5.2. Key Application Trends 175
5.3. Application Business Cases 183
5.3.1. Presence  183
5.3.2. Dynamic Address Book 183
5.3.3. Personalized Communications and Information 184
5.3.4. Universal Prepay 185
5.3.5. Consumer and Business Voice Services 186
5.3.6. Rich Calls 187
5.3.7. Video Calls  187
5.3.8. Messaging  188
5.3.9. Unified Communications  188
5.3.10. Push-to-X 189
5.3.11. Wireless-Wireline Convergence  189
5.3.12. Entertainment 190
5.3.13. Video on Demand  191
5.3.14. Community of Interest Communications191
5.3.15. Augmented Reality 192
5.3.16. Customer Relationship Management (CRM) 192
5.3.17. Remote Workforce, Tele-worker and Dispatch  193
5.3.18. Identity Protection  193
5.3.19. Universal Billing 193
5.3.20. Social Networking  193
5.3.21. Services Blending  194
5.3.22. Advertising  194

6. Summary and Recommendations 194
6.1. Overall Recommendations 195
6.2. Operator Recommendations 197
6.2.1. New Applications, Features, and Development Approaches 198
6.2.2. Network Management and Operations Issues  200
6.2.3. Operator Interviewee Analysis 201
6.2.4. Challenges of IMS Rollout203
6.2.5. Customer Control  205
6.3. Infrastructure Recommendations206
6.3.1. Supplier Interviewee Analysis  206
6.3.2. Service Creation Management (SCM) and IMS210
6.4. Application Provider Recommendations211
6.4.1. IMS and Third-party Applications 211
6.4.2. IMS Changes to the Service Creation Paradigm 212
6.4.3. The Emerging Virtual Network Operator (VNO)213

7. Appendix  215
7.1. Technical Overview of IMS and SDP  215
7.1.1. SDP Architecture 215
7.1.2. SDP and OSS/BSS217
7.1.3. IP Multimedia Subsystem (IMS)  218
7.1.4. Technologies Supporting IMS  222
7.1.4.1. IMS and SIP 222