"Converged Communications -- Impact and Requirements on future handsets" at IWPC Session: Future Handset Applications vs. Next-Gen Hardware December 4th - 7th 2007. http://www.iwpc.org/Workshop_Folders/07_12_Handset_Apps/Handset_Nokia.htm

1. The (Mobile) Surf’s Up!
Converged Communications -- Impact and
Requirements on future handsets
John Loughney
Nokia Research Center
http://research.nokia.com/people/john_loughney/
1 © 2007 John Loughney

2. Voice will be the killer app for some time
1300
1200
Mobile Data
1100
Fixed Data
1000 Mobile Voice
Global Revenue € Bn
900 Fixed Voice
800
700
600
500
400
300
200
100
0
2006
2007
2000
2003
2004
2005
2008
2001
2002
1992
1993
1994
1995
1997
1998
1999
1996
2 © 2007 John Loughney
From: Nokia March 2006

3. Business and Technology trends
Opportunities and benefits
Nokia’s strategy and offering
Conclusions
3 © 2007 John Loughney

4. Look How Far We Have Come
• First Generation - 1981 with NMT (Nordic Mobile Telephone) system
• Second Generation - 20th birthday of GSM this year
• First camera phone 2001 (VGA) Nokia 7650 (first GSM phone)
• First desktop-like mobile phone browser 2005
• 850 million people around the world connected with Nokia devices
• We estimate that Mobile subscriptions will surpass 3 billion this year and 4
billion by 2010
• But this story is not coming to end. It’s evolving fast… And consumer
expectations are higher. Much higher…
4 © 2007 John Loughney

5. Voice is still the driver for mobile phones
• Customers need communication on
the go.
• Mobility provides superior productivity,
flexibility & convenience benefits.
• Fixed–to-mobile substitution
happening in homes & offices
• Mobile customers expect to access
Internet communities & services.
• New technologies enabling broadband
services in mobiles
• 3G is a key driver for mobile rich Mobile Data users (millions)
communication
• WLAN has reached maturity to be a
reality for mobiles
• Unlicensed Mobile Access
• SIP (Internet and 3GPP)
5 © 2007 John Loughney

6. Mobile Internet Media Consumption is Booming
• Mobile broadband, Internet, and media player capabilities boost
new value in the market.
• The value of the mobile digital music sales will grow from €387M
in 2006 to €2.2Bn in 2010
• By 2010, digital music sales will account for over 33% of the
music retail revenue, or over 40% if ringtones are included.
• South Korea, Japan, and Spain are examples of markets where
OTA music downloads dwarf PC music downloads
• The number of worldwide mobile video subscribers will jump
8006% between 2005 and 2009
• Mobile video handsets sold worldwide is expected to grow from
28 million in 2005 to 336 million in 2009
Source: Nokia Hear New, 2007
6 © 2007 John Loughney

7. Internet communication - Broadband everywhere
• Rich Internet communication is growing fast
• Aggressively priced VoIP call
• New / Ad based business models
• Services combining VoIP + IM + Presence
• Numerous and fast evolving services from the ”long tail” of the Internet
• Enterprises adopting IP-PBX for cost savings and future proof technology
• Hundreds of millions of IM & VoIP service registered users
• 240 million MSN Messenger active accounts
• 80 million Yahoo! Messenger users
• 1.5 million GoogleTalk users
• 130 million registered Skype users
• Consumer market
• ISPs offering rich communication services for consumers already
• Numerous, niche services from the ”long tail” of the Internet
• Integrated IM, Email, VoIP, image & video sharing, etc.
• Over 400 Million active IM users, close to 500M email users
Source: xSPs own statements / press releases and MyMetrix
7
MediaTrend Report mid 2006
© 2007 John Loughney

8. 3G, LTE and WiMAX
• HSPA is available today to bring high-speed data to 3G networks, with a clear evolution
• Long Term Evolution (LTE) is the optimal evolution path from GSM and WCDMA/HSPA to
future networks and services
• WiMax offers an opportunity for operators primarily without 3G licenses to deploy wireless
broadband
HSDPA HSPUA I-HSPA
GSM EDGE WCDMA
LTE
WiMAX-2005 (Mobile)
WLAN
’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10
HSPA+
EDGE and (evolved WCDMA HSPA I-HSPA WiMax LTE
EDGE) HSPA Evolution (802.16e)
Latency 300ms 150ms 50ms 25ms 15ms 10ms
Peak data rate 200/100 kbit/s
384/384 kbit/s 14/5 Mbit/s 14/5 Mbit/s 70/40 Mbit/s 100/50 Mbit/s
DL/UL (400/200k)
CAPEX / OPEX
CS and high Broadband PS,
8Services John Loughney
© 2007 CS and PS
speed PS
Broadband PS optimised
VoIP
PS only, VoIP
broadband PS

9. Location Based Services (LBS) Market Data
Mobile LBS market will grow to $8.5 billion during the next four years.*
Almost 2.5 million GPS integrated navigation devices were sold in 2Q06 in EMEA, 97% growth from
2Q05.**
Consumer top most wanted cellular applications
other than voice communication***:
1. Navigation assistance - 33%
GPS/AGPS Mobile Phone Sales
2. Traffic conditions for route – 31%
Forecast, Gartner 2006
3. Weather Information – 27%
600000 4. Send/Receive Text messages – 24%
Thousands of Units
5. Find Points of Interest – 23%
500000
6. Monitor location of children – 23%
400000
7. Push to talk – 21%
300000 8. Send/receive emails - 21%
200000 9. Pedestrian directions - 20%
Hotel
100000
0 New Cafe Favorite Shop
2004 2005 2006 2007 2008 2009 2010
Rest of World Western Europe North America
Japan APAC
*Juniper Research 2006
9 © 2007 John Loughney
**Canalys 2006
***CJ Driscoll 2006

10. Nokia’s strategy and offering
Opportunities and benefits
Nokia’s strategy and offering
Conclusions
10 © 2007 John Loughney

11. Mobile Communication: Converged Access,
availability, communication & content
• Session-based real-time
conversational communication
• Over Cellular and wireless BB
• Unified user interface
• Person-to-person / group
• Voice or video calls
• Push to Talk conversations
• Instant Messaging / chat
• Sharing personal media content
within session
• Enabled by
• IP multimedia subsystem (IMS)
• Session Management with
Session Initiation Protocol (SIP)
• Presence, capabilities advertising
• Content / Group Management
11 © 2007 John Loughney

12. Service bundling becoming a key factor
• Service providers are User will perceive:
deploying “sticky • Consistent user experience
bundles” to increase • Service continuity/ availability
customer retention & • One bill instead of several
attainable market • Single sign-on becoming more relevant as
the number of services grows
Service bundling is a natural part of rich
& converged service offering
Triple/Quadruple play
Offer integrated services and leverage applications across: High speed Internet, TV, Wireless
Games
…
Value IPTV, VOD Adoption
communities
Voice and messaging
12 © 2007 John Loughney

13. Examples of operators enriching services
FT / / Orange Livebox with UMA
TeliaSonera HomeFree with UMA
TeliaSonera HomeFree with UMA FT Orange Livebox with UMA
• • “TeliaSonera is first in the world to introduce a voice
“TeliaSonera is first in the world to introduce a voice • • Livebox enables broadband connections for all
Livebox enables broadband connections for all
solution that combines mobile communications and home communications:
solution that combines mobile communications and home communications:
wireless broadband - - the mobile phone and voice over
wireless broadband the mobile phone and voice over • • Web, IP TV, VoIP, video call, on-line games,
Web, IP TV, VoIP, video call, on-line games,
IP become merged in one and the same telephone.
IP become merged in one and the same telephone. UMA calls, home surveillance, etc.
UMA calls, home surveillance, etc.
• • Subscription: ~25€ + 20kr/month, for free vowlan
Subscription: ~25€ + 20kr/month, for free vowlan •Launched July 2004, 3M subscribers by Mid
inland, mobile fee for international, ~10€ extra for free •Launched July 2004, 3M subscribers by Mid
inland, mobile fee for international, ~10€ extra for free 2006
international. 2006
international. • average 30€/month + 3€/month for Livebox
• average 30€/month + 3€/month for Livebox
(WiFi enabled) modem
(WiFi enabled) modem
BT Fusion UMA
BT Fusion UMA
• Bundle of voice minutes and texts,
• Bundle of voice minutes and texts,
• • With BT Home Hub or BT Openzone hotspots you
With BT Home Hub or BT Openzone hotspots you
can talk for 44 minutes but only use 1 of your inclusive
can talk for minutes but only use 1 of your inclusive
minutes.
minutes.
• FREE internet surfing on your mobile with Wifi
• FREE internet surfing on your mobile with Wifi
13 © 2007 John Loughney

14. Examples of operators bundling services
Singtel mio Mobile
Singtel mio Mobile Starhub pfingo
Starhub pfingo
• • AA dual-mode service that allows mobile users
dual-mode service that allows mobile users • • AA mobile Internet service suite that provides
mobile Internet service suite that provides
to use VoIP from home Wi-Fi and over 5,000 VoIP, IM, remote access to video and music
to use VoIP from home Wi-Fi and over 5,000 VoIP, IM, remote access to video and music
Wireless@SG hotspots;
Wireless@SG hotspots; files across the mobile phone and PC in a
files across the mobile phone and PC in a
• The commercial launch of the service took single, integrated application.
single, integrated application.
• The commercial launch of the service took
place on Jan 8, 2007; • • pfingoTALK is aa subscription-based VoIP
place on Jan 8, 2007; pfingoTALK is subscription-based VoIP
• The subscription (fixed monthly) fee for the service to make and receive calls over the
• The subscription (fixed monthly) fee for the service to make and receive calls over the
service is ~7€; Internet from a Wi-Fi hotspot or broadband
service is ~7€; Internet from a Wi-Fi hotspot or broadband
connected PC
• Available to consumers and SME customers connected PC
• Available to consumers and SME customers • • cross-carrier service will be open to any user
on postpaid mobile plans allowing them to cross-carrier service will be open to any user
on postpaid mobile plans allowing them to worldwide, not just StarHub subscribers
make unlimited local calls using Nokia SIP- worldwide, not just StarHub subscribers
make unlimited local calls using Nokia SIP-
enabled VoIP devices; • Users can also obtain an overseas phone
enabled VoIP devices; • Users can also obtain an overseas phone
• Supported on Nokia E60, Nokia E61, Nokia number that is linked to their pfingoTALK
• Supported on Nokia E60, Nokia E61, Nokia number that is linked to their pfingoTALK
N80 Internet Edition, Nokia E65 and Nokia account so that contacts in that country can
account so that contacts in that country can
N80 Internet Edition, Nokia E65 and Nokia dial this number and pay only local call rate.
N95. dial this number and pay only local call rate.
N95.
• Dual-mode calling with single-numbering • Currently in trials, expected to launch
• Dual-mode calling with single-numbering • Currently in trials, expected to launch
commercially at mid-2007
commercially at mid-2007
14 © 2007 John Loughney

15. Examples of 3G operators partnering
E-Plus and Skype 33Sweden and Skype X-series by 33
X-series by
E-Plus and Skype Sweden and Skype
• •3G data cards bundled with • •33Sweden and Skype offer • •Your TV, home PC and all
Your TV, home PC and all
3G data cards bundled with Sweden and Skype offer
Skype client and aaSkype mobile broadband the best of the web on your
the best of the web on your
Skype client and Skype mobile broadband
headset telephone (for laptop connection with mobile mobile.
mobile.
headset telephone (for laptop connection with mobile
use) VoIP, to challenge fixed
VoIP, to challenge fixed • •Free Skype calls. Search
use) Free Skype calls. Search
phone pricing
phone pricing the web with Yahoo!
• •In the future, integrated
In the future, integrated the web with Yahoo!
Skype client in the 3G • •Pricing: Download podcasts. Bid on
Download podcasts. Bid on
Skype client in the 3G Pricing:
smartphone • • Data card for ~100€ ++
Data card for ~100€ eBay. Or browse Google,
eBay. Or browse Google,
smartphone BBC and Amazon. Etc.
Skype subscription BBC and Amazon. Etc.
• •39€ per month for unlimited Skype subscription
39€ per month for unlimited ~20€/month for 1GB
~20€/month for 1GB • •5-10£/month in UK
3G data
3G data data/month 5-10£/month in UK
data/month • •Nokia N73, SE W950i
• •SkypeIn and SkypeOut
SkypeIn and SkypeOut • • Or ~50€/month for
Or ~50€/month for Nokia N73, SE W950i
charges apply for calls to
charges apply for calls to
unlimited data, data card
unlimited data, data card
PSTN and mobile networks inclusive
inclusive
PSTN and mobile networks
- Revenue sharing deals, Bundle price and/or
15 © 2007 John Loughney flat rate offering, etc.-

16. Broadband players are entering the game
Boingo
Boingo Sipgate
Sipgate
• • Aggregates and sells WiFi access to its subscribers,
Aggregates and sells WiFi access to its subscribers, • • Sipgate is a Pan-European VoIP ISP
Sipgate is a Pan-European VoIP ISP
mainly for data usage •Free VoIP calls, now also with Nokia E-series dual-
mainly for data usage •Free VoIP calls, now also with Nokia E-series dual-
• Expand the usage of its hotspots to voice mode phones
• Expand the usage of its hotspots to voice mode phones
• • WiFi toolkit available for handsets and other mobile
WiFi toolkit available for handsets and other mobile • • Free inside Sipgate networks and with some partner
Free inside Sipgate networks and with some partner
devices networks
devices networks
•Established Skype Zones, allowing Skype (via laptop) • • Competitive rates for normal PSTN, cellular, and
Competitive rates for normal PSTN, cellular, and
•Established Skype Zones, allowing Skype (via laptop)
users flat rate access to Skype through Boingo hotspots international calls
users flat rate access to Skype through Boingo hotspots international calls
(€6.65 per month)
(€6.65 per month)
Vonage
Vonage Freenet
Freenet
• Broadband telephone services provider with ~2M • Freenet Mobile and DSL-Telefonie (VoIP over
• Broadband telephone services provider with ~2M • Freenet Mobile and DSL-Telefonie (VoIP over
subscriber lines, started in 2001 WLAN) bundle offer
subscriber lines, started in 2001 WLAN) bundle offer
• • Phone adapter, USB PC adapter, or Wi-Fi Phone
Phone adapter, USB PC adapter, or Wi-Fi Phone • Available for Nokia dual-mode devices: N95, E65,
• Available for Nokia dual-mode devices: N95, E65,
• • Flat rate pricing inside US, Canada, and top 6 European
Flat rate pricing inside US, Canada, and top 6 European N80
N80
countries
countries
• • 25$ private unlimited
25$ private unlimited
• • 50$ business unlimited
50$ business unlimited
• • Low international rates elsewhere
Low international rates elsewhere
16 © 2007 John Loughney

17. Operator’s Role
Operator’s assets with internet services
Operator’s assets with internet services
•• Subscriber base, existing customers
Subscriber base, existing customers
•• Billing machinery
Connection provider for/to ISP Billing machinery
Connection provider for/to ISP • Wide area mobile access, frequencies
communities • Wide area mobile access, frequencies
communities •• Preferred provider of personal communications
Preferred provider of personal communications
services
services
• Brand & consumer awareness
• Brand & consumer awareness
•• Authentication and secure reputation
Authentication and secure reputation
Strong operator community service to
Strong operator community service to
compete against the ISPs
compete against the ISPs
Service level co-operation with ISPs
Service level co-operation with ISPs
- -Revenue sharing deals - -
Revenue sharing deals
17 © 2007 John Loughney

18. 3rd Party Communication Applications Available
• Several developers developing IMS/SIP and rich communication applications
• 3rd party SIP applications usable through SIP API
Company Application titles Application type
SIP Phone Gizmo SIP VoIP and IM
Fring Fring VoIP and IM, connects also to Skype,
Gtalk, MSN
Movial MIM Multimedia instant messaging
Movial Movial Connect Mobile Rich mobile application/service suite
Arcsoft Push to show Push to show
Noumena Subsonic racing, Jewel Several P2P game titles
Impulse, MVR Pool, Power
Darts, Black Jack, The Five,
Treasure Mine, Mad Macs
mBounce MoMo friends Networking application
N2N mBit client File sharing application
Futurice Photos to friends Album sharing application (+blogging)
… and more
18 © 2007 John Loughney

19. VoIP device competitors
New announcements appear
UMA devices WiFi SIP VoIP phones constantly …
And
many
more
…
Motorola UTStarcom Linksys
LG CL400 Samsung F1000G WIP300
A910
SGH-T709
VoIP over cellular “Skype phones”
- 3’s X-series-
Linksys NETGEAR Qtek 9100
MotoRZR CIT200 (WiFi) (dual-mode)
SE W950i LGU830 MaxxV3 (WiFi)
19 © 2007 John Loughney

20. Business and Technology trends
Opportunities and benefits
Nokia’s strategy and offering
Conclusions
20 © 2007 John Loughney

21. Mobile devices play key role in interactive
Web 2.0 sharing and blogging services
Nokia users share images and video on-line
• Attractive online photo and video blog services improve
ARPU and data subscription sales
• Popular photo & video blogging services integrated in more
and more Nokia devices
• New global and regional communities continuously added
• Nokia number 1 mobile device in Flicker
• Over 4 million photos originate from Nokia devices
21 © 2007 John Loughney

22. Convergence offers benefits and opportunities
for all
Enterprises
Operators & other • Increase productivity by anywhere access to key
corporate applications
service providers • Enable enterprise collaboration solutions also
• Innovative IP multimedia on mobiles
services portfolio: VoIP, IM,
• Reduce costs by moving voice and data to
Video, Presence, etc.
common IP networks
• Fast deployment of services
based on IP Enterprises
• Cost reductions by moving to
IP-based service machinery Operators /
Service Providers
• Cost efficient cellular services
indoors
• Satisfy the customer needs for
fixed-to-mobile-substitution
Consumers
• Enable the users to connect
their favorite internet • Be connected to the favourite
communities with mobiles. Consumers internet communities also when
on the move
• Service provider partnerships
for full bundled rich services • Attractive prices for basic voice
• Rich service bundles from one
service provider
22 © 2007 John Loughney

23. Convergence Business Landscape
Mobile technologies, networks and devices are
Mobile technologies, networks and devices are
mature for rich communication services.
mature for rich communication services.
Internet players offering
Disruptive business model Internet players offering
VoIP combined with
VoIP combined with
Numerous small VoIP and community service instant messaging, email, etc.
Numerous small VoIP and community service Internet instant messaging, email, etc.
providers innovating in the mobile space. - - and moving to mobile space.
and moving to mobile space.
providers innovating in the mobile space.
ISP’s
Operators and Mega ISPs enabling
Operators and Mega ISPs enabling New
internet communities with mobiles. Virtual
internet communities with mobiles. MobileContent vs.Operators
Virtual
Mobile Access based Enterprise
Operator Fixed
business models
Hybrid
Operators
Monopoly
Mobile operators
Mobile operators Fixed
deploying rich
deploying rich operators
communications Mobile
communications Operators
services.
services. Cable
operators
Fixed operators counter attack
Telecom Fixed operators counter attack
fixed substitution
fixed substitution
with VoIP and broadband
Established business model with VoIP and broadband
Mobile operators expanding services with broadband/WLAN
Mobile operators expanding services with broadband/WLAN
and IP based solutions –– partnerships, mergers, etc.
and IP based solutions partnerships, mergers, etc.
23 © 2007 John Loughney

24. Business and Technology trends
Opportunities and benefits
Nokia’s strategy and offering
Conclusions
24 © 2007 John Loughney

25. Nokia supports convergence in multiple ways
• Many technologies to choose from
• IETF SIP, 3GPP/IMS VoIP, UMA, IMS VCC
Communities
• Proprietary technologies for community services and Rich
messaging
enterprise solutions
Push to Video
Presence
• VoIP and other IP services over Cellular/3G/WiFi talk Content sharing
sharing
Inter-
• WLAN and WiMax are Messaging active
gaming Chat
Voice
complementary technologies to
cellular – EDGE, 3G, HSPA, LTE Packet-switched
network
are crucial for full mobility (3G, WLAN, xDSL)
The industry should continue to promote standards-based
technologies to ensure interoperability between devices
and networks.
25 © 2007 John Loughney

26. Convergence is happening
I am:
16502838068 +358504838068
john.loughney@nokia.com john.loughney@kolumbus.fi
gmail/gtalk:john.loughney jabber:loughney skype:loughney
gizmo:loughney(17476423923) aim:jlghny
yahoo:j_loughney http://www.flickr.com/j_loughney
http://www.geocities.com/j_loughney/ http://research.nokia.com/people/john_loughney/
http://del.icio.us/loughney
And I want to use these on my phone!
26 © 2007 John Loughney

27. Moving in to the mobile, always connected
Internet
• Nokia creates devices that enable communication, with very human
technology.
• Nokia Betalabs (www.nokia.combetalabs) used as a beta site for new and
interesting applications
• Nokia Research Center focused on Open Innovations with key partners
3
3 2 1
2
Phone
PC
Tablet
27 © 2007 John Loughney

28. Impact of IP over cellular
• UDP and TCP timeouts vary widely, a default 30 seconds may be needed for
UDP.
• Several different NAT traversal mechanisms are needed
• STUN, TURN, ICE, Teredo
• All bring additional terminal and network complexity
• Additional CAPEX and OPEX
• All NAT traversal mechanism do open some security holes.
• Even worse, you might be behind different NATs at different times of the day
• Home, office, hotspot networks often use different types of NATs.
• Each requiring a different traversal mechanism
• Performance over 3G is even worse
• UMTS radio state management prevents the mobile device from entering sleep mode,
often reducing standby time by days.
• http://www.niksula.hut.fi/~peronen/publications/haverinen_siren_eronen_vtc2007.pdf
28 © 2007 John Loughney

29. Thank You!
29 © 2007 John Loughney