#FWIC: OTT Stats, Facts and Figures

The 4th Future of Wireless International Conference (#FWIC) is 2 weeks away and the main theme of the conference is "The Reshaping of the Mobile Industry". In some of the recent conferences I have attended, OTT has been one of the main topic of discussion and a concern for the operators. The operators are at the top of the food chain, whatever affects them eventually affects the other players within the mobile industry. With this is mind, we have prepared a document that collects all the figures in one place to be used as a handy reference for quoting stats and figures.

OTT Stats for FWIC

View more presentations from Zahid Ghadialy

The above presentation is available to download from Slideshare here.

The agenda for the conference is available here. I am also chairing track 4 on day 1, "Where next for devices" so please feel free to join us in the discussion if devices are an area of your interest.

You can also connect with the other attendees of the conference on Linkedin here.

Finally, here is my summary of the event from last year. I look forward to meeting all of you who will be attending this event.

The 'Virtual' Femtocell and a competition for OTT Apps

Over the last few months we have been thinking of so many ideas around small cells and this is something that we thought. It looks very simple and straightforward and having talked to a few small cells experts, off the record, none of them seem to be able to see anything wrong with this concept. With the 'Small Cells World Summit' just round the corner I am sure this could be something worth a discussion.

I am explaining the concept using an HSPA+ setup but there is no reason why this would not work in an LTE Setup. This is a typical connection for HSPA+ Femtocell setup with the gateway acting as a concentrator for all Iuh connections and having a single Iu connection towards the core. I have not shown CS/PS connection separately for simplicity. 

We propose a 'Virtual' or 'Invisible' Femtocell concept where we think that the Femtocell is redundant but the concept can be used to avoid the coverage and capacity problems faced by the operators and at the same time avoid the 'Signalling storm', atleast on the access network side. Now most smartphones have WiFi stack inbuilt. For this concept to work, WiFi in the phone is a must. Instead of having a Femtocell in between, a modified stack could be embedded in the phone itself. The output of the phone over WiFi are the Iuh messages that can terminate at the gateway and no difference would be needed from the core network side. This is illustrated in the picture below.

The phones would also need to have an enhanced UI to be able to allow a user to select only this option when roaming. You don't want a situation where the user thinks that he is camped on the 'Virtual' femtocell and making/receiving calls while he is not and run up a huge bill.

Advantages of this approach:

• The Femtocells are no longer really needed and the end customer does not require to buy a separate equipment, which is different for different operators.
• The phones can be working whenever a reliable WiFi connection is available, even if they are abroad without incurring costly roaming charges.
• Some operators that do not have a lot of spectrum available avoid using Femtocells as they can cause interference and black holes in the coverage. 
• There is no worry of a femtocell being used abroad illegally thereby causing interference with spectrum in another country.
• Some security issues can be totally avoided and it would be worth for the operators that the keys being used cannot be seen by others.
• A lot of people use OTT apps like Skype, Viber, Whatsapp when abroad, being camped on WiFi to avoid costly roaming charges. This approach would mean that the normal Voice and Messaging becomes similar to OTT and can help operator avoid losing out to the OTT apps. 

Disadvantages of this approach:

• WiFi spectrum is already congested and does not always give reliable coverage.
• Security issues would have to be looked in detail to make sure this would be secure enough. Since this concept is similar to creating a VPN between the phone and the gateway, I wouldnt think there would be any issues though.
• Roaming revenues are a big cash cow for the operators, most of them would be unwilling to lose this if the phones are using this approach.

I think this concept is more suitable for the Residential Femtocells rather than the other Small Cells (enterprise, metro, pico, etc.) and there will always be a need for them. The main reason being that on a large scale, WiFi is extremely unreliable, prone to interference and not future proofed. A new device may cause interference that may take forever to resolve. Operating a small cell in the licensed spectrum would always make sense and the reliability would be much higher.

If you think this makes sense please click the 'Useful' checkbox so that I know.

As a company we are always looking to engage with other companies to discuss similar ideas. If you are a company dealing with Small Cells and are open to discussing similar ideas, please let us know.

Joyn = SMS v2.0?

'Joyn' is the brand name for the RCS services that have been around in the name for a long while. Yesterday someone sent this link for the Fierce Wireless article that had the link to the above Vodafone video.

In theory this sounds great but in practice it may be a bit difficult for operators to sell. One of the selling point for this service is that it is going to be part of the standards so independent of the platform. Android and iOS are the two most popular platforms and more and more users are adopting them. The OTT apps are now available on both these platforms, meaning that it will have mass market adoption. If some other platforms have to succeed then they have to make these most popular apps available on their platform or they will not survive. Microsoft has been rumoured to have paid Rovio to develop the first Angry Birds for the WP platform and they may have to do the same again since the new Angry Birds space is not available on the Windows mobile platform.

In any case, Joyn may be good and it can provide enhanced services but I have a feeling that it may be a bit too little and too late to succeed.

Billing based on QoS and QoE

With Spectrum coming at a price the operators are keen to make as much money as possible out of the data packages being provided to the consumers. The operators want to stop users using over the top (OTT) services like Skype thereby losing potential revenue. They also want the users to stop using services that are offered by the operator thereby maximising their revenue.

A valid argument put forward by the operators is that 90% of the bandwidth is used by just 10% of the users. This gives them the reason to look at the packets and restrict the rogue users.

As a result they are now turning to deep packet inspection (DPI) to make sure that the users are not using the services they are being restricted to use. AllOt is one such company offering this service.

The following presentation is from the LTE World Summit:

They also have some interesting Videos on the net that have been embedded below. They give a good idea on the services being offered to the operators.

Finally, a term QoS and QoE always causes confusion. Here is a simple explanation via Dan Warren on twitter:

QoS = call gets established and I can hear what is being said, everything else is QoE

Over-the-top (OTT) Applications and Services

I keep on hearing about OTT apps everywhere I go nowadays. I know roughly what they mean but I couldnt find a proper definition anywhere. Here is my attampt to write a bit about what OTT means.

Traditionally lots of services like Voice and Television for example is delivered in a conventional way where Voice was transferred via a PSTN or a Mobile network and similarly TV was delivered via Cable, Satellite, DVB-T kind of technology. With Internet becoming common and Broadband access available to everyone, easily and cheaply, new applications are available to deliver Voice and TV kinds of services. The most popular voice app is for example Skype and Youtube is an example of TV (even though its more like Video On Demand)

These apps cause two main problems. The first problem is that the companies using this traditional medium starts losing customers and their cost per person goes up forcing their profits down. At the same time the amount of data traffic for the ISP increases thereby increasing the number of bits/cent (bits/pence). This forces them to upgrade their infrastructure to provide the same quality of service (QoS).

What this would mean is that in future it would not be possible to get flat rate packages for Mobile broadband or there may be restrictions where certain applications wont run unless you pay extra.

The dilemma for carriers is that LTE’s all-IP architecture will create a more open environment for Over The Top (OTT) applications, including third-party VoIP services, which threaten to further commoditize the network. To overcome this threat and realize revenue gains from LTE, carriers will need to partner with content and application providers, develop application store-fronts such as Apple’s App Store, and perhaps deploy APIs that expose LTE’s value-added network capabilities to third-party application and content developers for a fee.

The only way to ensure profitability in this ‘cost-per-bit’ model is to maximise scale. We have seen this clearly in mobile telephony, where a lack of differentiation has led to intense price pressure, flat rate tariffs and a decoupling of the revenues from the costs. The mobile operator suffers the cost of deploying ever increasing bandwidth while the ‘value’ that this bandwidth enables – the access to over the top (OTT) applications and services benefits the OTT providers.

To avoid this commoditisation, service providers need to add intelligence to the way they deliver these bits. Adopting a ’value-per-bit’ strategy ensures that the value added over and above the simple transport of data is seen and desired by the consumer and by any upstream content or application provider.

This creates a tighter coupling between infrastructure costs and the revenue that infrastructure can attract, thereby ensuring a far more sustainable business model for the service provider. It also benefits consumers and application providers by providing them levels of security, performance and reliability appropriate to the transaction being carried out and the subscribed service.

Most of us wouldn’t dream of paying for a customized Internet experience on a tailor-made device from our broadband service provider. But that is the way we used to buy telephone service, and it continues to be the way we do things for mobile and video services. Over time, all of these businesses will follow a similar pattern, breaking down into their component parts so that the best adapted players win in each piece of the business. The only questions are: “Who are the best adapted?” and “How long will it take?”

Further Reading: Making the Network Relevant in an Over-the-Top World