Mac Taylor's presentation in the TADS Telco Summit on 'Building a Successful Telecom Application Ecosystem: Huawei's Plan for Success.

1. www.huawei.com
Building a successful telecom application ecosystem:
A vision for success
Mac Taylor
Chief Business Consultant – Huawei Digital Services Product Line
HUAWEI TECHNOLOGIES CO., LTD.

2. Contents
1. Platforms, Ecosystems and Mobile Computing
2. What real value can a large NEP add?
3. A Vendor’s responsibility in the TAD Ecosystem
4. Building success with Partners
2013/11/23
Huawei Confidential
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3. Platforms, Ecosystems and Mobile
Computing
2013/11/23

4. There goes the industry…..
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5. Telecom Application Manifesto
1. Telecom voice and messaging revenues, a $1T market,
are under pressure from web-based Over the Top service
providers.
2. The telecommunications industry must deliver more
services faster to survive.
3. But the existing ecosystem has failed to deliver, hence
the need to recognize and develop a sustainable and
profitable telecom application ecosystem.
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6. Digital Service Percentage Forecasts
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7. The Mobile Digital Business Opportunity
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8. What real value can a large
Network Equipment Provider add?
2013/11/23

9. Invisible Engines – How Software
Platforms Drive Innovation and
Transform Industries
Evans, Hagiu and Schmalensee :MIT 2006
2013/11/23
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10. Software Platforms – Multisided Strategies
1. Businesses based on software platforms follow
multisided strategies
2. To get users, developers, and hardware makers
on their platforms.
3. These strategies are critical for harnessing
positive feedbacks.
4. Users value more applications, and applications
developers value more users.
2013/11/23
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11. Operators have THREE distinct businesses
The new telco Opportunity: build an
ecosystem to drive distribution of unique
telco services
Asymetric Competition: OTTs offer
services for free (e.g., Viber), close to free
(e.g., Whatsapp). The “bundle” biz model
of “service + connectivity” of telcos
makes it difficult to compete .
A symbiotic relationship between telcos
and OTTs: (e.g. iPhone apps drive data
revenue.)
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12. The Power of Digital Platforms and Ecosystems
1. An ecosystem allows you to spread the costs and
risks of development to your partners.
2. This allows the value of the ecosystem to grow far
beyond what a telco could create on its own.
3. Your external partners, developers or service
providers, become investors in the ecosystem,
4. They subsidize the expansion of the your business.
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13. Digital Services Platform – What is needed
1.
Network Gateway – Integration into operator networks
2.
Derived APIs, Other APIs and API services – APIs exposed from
other than the network gateway
3.
API management
4.
Developer platform – capabilities to enable developers to create
and run their applications using those APIs.
5.
Developer community – real people using the APIs to solve real
business problems.
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14. A Vendor’s Responsibility in the
TAD Ecosystem

15. Huawei Confidential
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16. What a responsible vendor should do to enable the TADE
1.
Telcos provide the communication resources and the large audience
as we all use communications every day;
2.
Vendors deliver easy to use platform for developers and critically
brokering.
3.
Brokering makes it easier for telco app developer to deliver across
many operators, and manage the cultural gap that exists in the
industry;
4.
Telco app developers create a multitude of communication enabled
services making the telco more useful; and
5.
End users enjoy a rich experience which keeps them consuming
communications services with a variety of business models.
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17. A Vendors Responsibility in the TAD Ecosystem

Meeting telecom application developer diverse needs from hardcore
programmers to those who create new services on application platforms
that require little programming knowledge;

Providing systems that support and protect the operators’ networks;

Brokering between Telcos and developers to enable a service innovation
engine; and

Creating a community of developers for Telcos to access.
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18. 3rd party ME and Global Developer Community
Developer SCE Platform and Business Enablers for CPs SPs
Huawei
Digital
Services
Platform
API Management, Partner Management, SLA management, Settlement etc.
API Platform: Derived APIs, other APIs and API Services
Network Gateway
Operator
Assets and
Capabilities
Communi
cation
Billing &
Payment
Network
Optimization
Contextual
Information
Identity &
User Profile
Data &
Info Mgmt
Cloud
Resource
Integration with multiple Operators across regions and the globe
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19. Exposing New Capabilities means new opportunities
Real Time
Communication
API (Network):
• Messaging
Contextual
Information
• Device
Connection Status
• Call control
• GPRS(APN, QoS)
• Call event
• Lock status
• IVR
• Ported-in network
• Conference
• Location
• RCS
• Device change
• Content
management
notification
• Access type
• e-Fax
• User balance
• USSD
• User Quota
SDK (Terminal):
• History usage
• Messaging
• Call control
• Call event
Charging &
Payment
Data & Info
service
• VAS charging
• OpenID
• In-App Charging
• Subscriber type
• Web App
• SMS/MMS
Network
Optimization
• Multi-ran
Coordination
• Cell Status
Charging
subscription
• Policy Control
• Package &
• Allowed access
Capability
bundle
• Payment
• Network data
type
• SSO capability
• OAuth Capability
• Generic Auth with
analysis capability
• Video
optimization
• Cache Capability
SIM/USIM
• Generic Auth with
Cloud service
• Elastic computing
service
• Elastic Storage
service
• Elastic Load
balance service
• App Hosting
Service
• RDS service
Application
• Promotion
• CRBT
Mgt & Operation
• Portal creation
Capability
• UC
• CMS Capability
• Conference
• Campaign
• Dynamic QoS
Apply
Capability
• Real-time decision
Capability
• Report &
dashboard
Capability
• Unified Product
Management
WiFi
• Anonymous
Identify
• Generic Validation
• Conference
• RCS
• e-Fax
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20. What Businesses want
1. Businesses want more than an API
2. They want a partner to help them build their business
3. They want to make their business better by adding telecom
capabilities
›
Such as messaging, payment, voice and communication services
4. They need advice, and someone they can trust
5. They need someone focused on their business success
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21. Platform economics – the Telecom API ecosystem
Global (Telecom) Developer Community
Customers
New applications and services creates demand for
operator capabilities
New business
value
Platform Partners
Exposed Telecom Capabilities
creates potential for new services
ME
SMEs and
Enterprises
Huawei Platform and APIs
Core Network, IT, Software and Services
Successful new communication services create new
demand for operators core business (voice,
messaging, data)
Operator A
Operator B
New communication services
add value to operator’s
customers and reduce churn
Operator C
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22. Vendors needs include:

Telcos must allow open promotion of the joint successes.

Publicity is essential to advertise

Success in a public forum where critical comment is possible,
and to help the industry learn

and meet the innovation challenge.
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23. Huawei
Building success with partners

24. Application Scenarios of Multiple Level Core Capability
SI



Identity&
Authentication







Information & Interactive service
Click to Dial, number hiding
Instant & reservation conference
Call center, information IVR
Video surveillance

Charging&
Payment



Query product
Subscribe product
Order & Query


SME/Enterprise
Developers
Single sign on
User authorization
OpenID
Data&
Information
Real Time
Communication
3
2
1
Location based Marketing & SNS
User profile based marketing
Behavior based marketing








Contextual
Information
Cloud Resource



Network
Optimization

Micro payment
In-app
payment
Mobile wallet
Platform & IT



Portal & CMS
integration
Promotion
Terminal adaption
Operation analysis
Elastic computing
Elastic storage
Load balance
App hosting
Database resource
Cell status：Perceive network status
E2E QoS：Video acceleration
Network data analysis：Network & usage
visualization
Video optimization：Accelerate video access
Cache：Improve experience & avoid congestion
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25. Achieving Business Success by Opening Core Capabilities
 More than 165 ASPs (Application Service providers)
 More than 130+ new services within 1 year
 Total Revenue (by December 2012) increased to $301M from $29.4M in 2011
Income 2012
America Movil HUB Monthly Revenue
Income 2011
60,000,000.00
Rev $49M in Dec
50,000,000.00
40,000,000.00
30,000,000.00
20,000,000.00
10,000,000.00
0,00
January
February
March
April
May
June
July
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August
September
October
November
December
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26. Global VAS Operation Experience
“Huawei has delivered a first-class maintenance
outsourcing Service to Starcomms, which met
the maintenance outsourcing needs of
Starcomms. Thanking Huawei Service engineers
for their efforts.”
Maher Qubain, CTO of Starcomms
Double VAS Revenue within 1 year
One Stop Multi Vendor MS Solution
"We wanted to have the same billing and prepaid
platform but the complexity around the integration
is huge, 13 countries are 13 differences and
Huawei had the ability to do the integration”
Joachim Mata, Director of Product Marketing at
Telefonica
Decrease the complexity of network management for
Customer
Launched 30 new MVAS within 3 quarters
Proud to have achieved the completion of Service
Delivery Platform (SDP) implementation within 4
months, surpassing the industry standards and
making it the fastest SDP implementation in the
history of Indian telecom industry.
Shorten TTM from 5-7 weeks to 5-7 days
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27. Thank you
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