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Building a Successful Service Innovation Ecosystem with Huawei Digital SDP

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In the move to all-IP with LTE (Long Term Evolution) all operator services will be open to intense competition. Analysts suggest this could amount to a $100B revenue gap by 2018. A focus on a new service ecosystem will enable operators to expand their communication services to add value to multiple industry verticals by enabling an entirely new set of services, to offset the decline in traditional revenues and deliver innovative value to the emerging digital economy.

Asymmetric competition from growing, global OTT messaging and voice services mean that traditional telecom voice and SMS revenues and profits worldwide will face accelerating decline. Over the next five years, some analysts estimate this revenue decline could reach as much as 40% in some mature markets.

How can operators compete in an all IP-World?

However, Operators have a set of unique advantages that can be leveraged to grow their businesses in this new competitive environment. One way to leverage their unique assets and advantages is for operators to work with ecosystem partners to embed communications into applications, services and business processes. This approach is not just about exposing APIs, but is focused on delivering relevant and valuable services to customers and businesses.  Unique operator capabilities include:

    1. Interoperability with strong customer base: unlike siloed OTTs, operator services are interoperable across different networks leading to a strong customer base
    2. Ubiquity / Immediacy with footprints globally: for a business to reach a person, telephony and SMS remain the only ubiquitous methods in most countries.  Voice and SMS still matter for businesses.
    3. Enterprise Reach with deep insights to customer needs: operators have unparalleled access to businesses as they have access to understand its users’ behavior.
    4. Undeniable public credibility with unique Identity: the phone number remains the dominant ‘customer owned’ identity.  The phone number as a universal identity helps operators remain relevant as communications service providers.
    5. Presence of various telecom stores within users reach:   these stores can play crucial roles in promoting/recommending the digital services by also offering convenient and comprehensive one-stop digital service experience to its users.

How to build a thriving Service Innovation Ecosystem (digital individual, digital home, digital enterprise and digital industry)

First, operators need to focus on building a service innovation ecosystem that allows third party developers and service providers to build innovative communication and digital services that fulfil real consumer needs and solve real business problems for individuals, home users, enterprise and industry. External partners, developers or service providers should  work together with operators, allowing the value of the ecosystem to grow far beyond what an operator  or a service provide could create on its own.

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Second, operators should expose unique network assets through a platform that enables creation, deployment, execution, orchestration and management of new services for digital individual, digital home, digital enterprise and digital industry (including M2M etc.).  Operators are in a unique position to enable the easy consumption of communication capabilities industry applications. At the same time operators have to secure their network resources to ensure quality of service for every subscriber and every digital service in the ecosystem.

Finally, operators should focus on building a new go-to-market strategy that delivers these digital services to every sector of the emerging digital economy from travel to healthcare to financial services and beyond.

Huawei Digital SDP envision operators’ needs

Huawei Digital SDP (Service Delivery platform) equips operators with the latest technology that supports developers, service partners and individuals to rapidly define develop and deploy a full range of digital services using service templates and a comprehensive range of E2E business process. This simplification of the service creation activity results in a reduced TTM while enhancing the ability of both operators and their partners to innovate and manage a broad range of digital services pertaining to digital individual, digital home, digital enterprise or digital industry services (M2M etc.). With the features, resources and tools aggregated in one place, partners and developers can quickly assimilate new ideas and technologies.

Huawei Digital SDP allows the management of multiple services, content and partners in a highly efficient, streamlined way. It complies with and provides extensions to the TM frameworx (e-Tom, SID and DSRA) in the business enablement and commercial operation of digital services. It provides flexible processes to respond to changing business conditions and allows cross functional collaboration with a clear linkage between IT processes and business needs.

Some real digital services insights

China Mobile has stepped into multi-screen gaming industry by providing joystick SDK. It comes with a built-in encryption chip which is bound with user account supporting one-click payment in a secure way using operators billing account. User authentication is done through exposed openID capability in joystick that makes available to use for subscribers other than China Mobile subscribers. Easy payment and easy consumption has driven the sales of game services.

MegaFon, Russia have launched an application “shake shake” which enhances end users network speed just by shaking their mobile phone. Operator has made this possible by their QoS openness enabling both B2C and B2B2C business models. For example, if an enterprise is providing a video surveillance service by means of remote cameras and the end user of the service who is also an MBB subscriber of the operator can login to the video surveillance service and requests to improve the quality of the video by simply shaking the smart phone.

China Fujian Telecom,  exposed video call capability to third parties via SDK to be integrated into their applications. Tinyeyes, an Ipcamera vendor embedded this SDK into their terminal converting their IPCamera to be a communication device. Operator’s communication capability acts as a bridge between the IPCamera and any other communication device include the end users mobile phone, easy consumption of service on any communication device, anytime and anywhere makes a unique selling point for this service.



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About The Author

Mac Taylor, Chief Consultant of Digital Services Product Line, Huawei, has over 25 years experience in the telecom industry. He is a recognized industry leader in strategic telecom research and consulting projects. He is a well-known key-note speaker at industry conferences on topics related with Digital Services. He has worked with over 60 vendors in the telecom service layer space and has authored reports on OSA/Parlay, SDP, IMS, Next Generation Convergent Charging and Next Generation IN. He is presently working as Client Partner at Huawei to advice senior C- level telecom executives on business and strategic issues in the services and software domain

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