high leverage network™, a platform for experience innovation
DESCRIPTION
How the evolution of devices, content and applications continues to guide the Alcatel-Lucent vision and strategy - and how it enables service providers to connect, captivate and capitalize.TRANSCRIPT
COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
HIGH LEVERAGE NETWORKTM
A PLATFORM FOR EXPERIENCE INNOVATION
Marcus Weldon May 22, 2012
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COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
WHAT IS
DRIVING THE
MARKET?
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STARTING POINT:
THE USERS ARE IN COMMAND
Sleep with
smartphone (USA)
Users/month on
Facebook apps platform
500M+
Content hours in 7hrs
by 8-18 years old (USA)
11.5
Would cut anything
but Mobile BB (UK)
67%
66%
84% Choose Internet over
partner or car (Germany)
70% Mobile-only Web users
in emerging markets
100M+ Tablets sold in 2012
globally
USERS WANT TO CONNECT, CONSUME AND CREATE ANYWHERE, ANYTIME
Broadband users
microblog (China)
100%
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Source: The Nielsen Company
STARTING POINT:
THE TABLET VERSUS. . . EVERYTHING ELSE
Don’t use device Use device less Same usage Use device more
Smart
Phone
GPS Gaming Console
Portable Gaming Console
Portable Media Player
eBook NetBook Laptop PC Desktop PC
TABLET ENHANCES THESE
DEVICES
TABLET REPLACES THESE
DEVICES
Connected
TV
Post vs. Pre-Tablet:
A DRAMATIC USAGE SHIFT IS HAPPENING
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THE NET EFFECT:
THIS IS VERY DEMANDING
MASSIVE GROWTH IN DEMAND REQUIRES NEW SUPPLY STRATEGY
24%
30%
13%
34%
54%
45X - 85X
GROWTH
0
200,000
400,000
600,000
800,000
TOTAL DAILY TRAFFIC BY YEAR (TB)
Wi-Fi Home
Metro Cell (Wi-Fi)
Metro Cell (3G/LTE)
Smart offload
Macro
2011 2012 2013 2014 2015 2016
CAGR 2011- 2016
Bell Labs
Modeling
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KEY INDUSTRY FOCUS:
RADIO CAPACITY
CELL SPLIT
ADD
CARRIERS
CARRIER
AGGREGATION
MIMO
(4TX) eICIC COMP AAA
METROCELLS/
HETNET
EXPENSIVE REQUIRES
SPECTRUM
<1.2X <1.2X ~1.25X <1.1X
(REL-11)
1.4X TO 2.5X GAIN = N
3D Beamforming
20 MHz 20 MHz Frequency
THE FUTURE IS WIRELESS – BUT HOW CAN WE MEET DEMAND?
2x
>10x
1.5x
MORE
SPECTRUM
(Hz)
MORE
SPECTRAL
EFFICIENCY
(Bits/Sec/Hz)
MORE
SPATIAL
EFFICIENCY
(Bits/Sec/Hz/
User)
INCREASE
CAPACITY
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OPERATORS COSTS AND PROFITS
2007 2008 2009 2010 2011
10%
20%
60%
70%
//
CAPEX / Revenue
Adjusted OP / Revenue
Adjusted OPEX/ Revenue
OPERATORS CONSUMER REVENUES
+2.5% WW revenue: ARPU decline offset by more subs. High pressure on CAPEX to control OP
ARPU ($)
2007 2008 2009 2010 2011
Mobile voice
Mobile data
Fixed data
Fixed voice
CAGR
2007-2011
-1.3%
-4.4%
-14.1%
+1.0%
25
20
15
10
5
0
THE ISSUE:
OPERATORS HAVE NOT CAPTURED THE FULL VALUE
NEED TO UNLOCK THE NETWORK VALUE TO MEET THE USER DEMAND
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WHAT IS THE
REAL VALUE OF
THE NETWORK?
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THE NETWORK:
THE ESSENTIAL BRIDGE BETWEEN HAND AND CLOUD
THREE DISTINCT FUNCTIONS BUT A SINGLE EXPERIENCE UNIVERSE
BEST EXPERIENCE BEST DELIVERY BEST MEDIA AND APPS
Handheld Cloud Network Cloud Content
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THE NETWORK:
THE ESSENTIAL BRIDGE BETWEEN HAND AND CLOUD
COMPUTING
COMMUNICATING
STORING
GAMING
STREAMING
VALUE VALUE UNREALIZED VALUE
Cloud Network
Latency
Total capacity,
time to load
Total capacity,
bandwidth
Total capacity,
bandwidth,
latency
Bandwidth, latency
THE NETWORK (AND THE OPERATOR) IS CRITICAL TO THE EXPERIENCE
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PERSPECTIVE:
ALCATEL-LUCENT RISES TO NETWORK CHALLENGE(S)
APPLICATION
ENABLEMENT
AE
Apps
Infra
lightRadio™
2011
HIGH LEVERAGE
NETWORK™
2010 2008 2009
AT THE FOREFRONT OF DEFINING AND ENABLING KEY INDUSTRY SHIFTS
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PERSPECTIVE: LEADERSHIP CREATES A UNIQUE MARKET SWEET SPOT
IP
WDM
Weak
Strong
Weak Strong
ALU
IP
NETWORK APPS
Weak
Strong
Weak Strong
ALU
IP
DSL & PON
Weak
Strong
Weak Strong
ALU
IP
WIRELESS RAN
Weak
Strong
Weak Strong
ALU
ALL-IP
AT THE
CORE
CORE VALUE: IP LEADERSHIP COUPLED TO TRANSPORT, ACCESS & APP ASSETS
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ADAPTING TO
A NEW
REALITY
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PERSPECTIVE:
PROFOUND SHIFT DRIVES POTENTIAL FOR REAL GLOBAL GROWTH
USERS ARE MAKING THE MOVE, ARE WE READY?
“ANALOG” ECONOMY
VERTICALIZED SECTORS
BO
OK
S
MU
SIC
VID
EO
TE
LE
PH
ON
Y
CO
NS
UM
ER
G
OO
DS
EN
ER
GY
• Independent economies
• Disconnected
• Subscriptions, brand loyalty
• Hardware-defined
• Unit of mass markets
• Proximity-based groups
• Innovation timescale = years
“DIGITAL” ECONOMY
• Interdependent markets
• Connected
• Digital cannibalization
• Software-defined
• Unit of family, friends, colleagues
• Rise of virtual social groups
• Innovation timescale = months
AE
APPS
INFRA
PARTIAL RECONSTRUCTION
TO DIGITAL INDUSTRIES
“NEXT DIGITAL” ECONOMY
• Global market and economy
• Hyper-connected
• A-la-carte user experience
• Software-driven
• Unit of one, highly empowered
• Virtual global communities dominate
• Innovation timescale = days
DEEP SOCIETAL CHANGE
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VISION: HIGH LEVERAGE NETWORK AS AN ENABLING PLATFORM FOR
USER EXPERIENCE
“ This is the clearest representation of our vision that I have seen – very compelling” TIER 1 OPERATOR EXECUTIVES – FEB 2012
ARTIFICIAL INTELLIGENCE
BUILT ON AND IN THE NETWORK
ALL IP INFRASTRUCTURE
DECISION ANALYTICS
OPTIMIZATION
CONTROL
EXPERIENCE CREATION AND ENABLEMENT
My
Storage
My
Media
My
Comms
My
Compute
My
Gaming
BEST LATENCY, BANDWIDTH, CAPACITY & UPLOAD TIME
EXPERIENCE PACKAGES
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SOLUTION:
THE RELATED ALCATEL-LUCENT PRODUCT AND SERVICES
NG OSS + BSS
IP portfolio
lightRadio
WDM portfolio
FTTX VDSL/PON portfolio
NETWORK
Customer Experience portfolio(2)
CloudBand +
Mobile Commerce portfolio(1)
Video Delivery System
IMS /Advanced Comms portfolio
Smart Charging/Policy
Open API Platform (OAP)
SOFTWARE
Note: NG OSS & BSS includes Billing & Payment, Context & Identity systems; (1) includes Optism; (2) includes Motive;
ALL IP INFRASTRUCTURE (E.G. ACCESS, TRANSPORT, EDGE, CORE)
EXPERIENCE CREATION AND ENABLEMENT
OFFERS AND ADVERTISING
YIELD
MANAGEMENT
NETWORK
POLICY
CHARGING
POLICY CONTROL
OPTIMIZATION
DECISION
ANALYTICS
CUSTOMER CONTEXT
AND IDENTITY
CLOUD
ORCHESTRATION
COMMS CONTENT
THE ESSENTIAL FOCUS OF OUR INVESTMENT AND ENERGY
SERVICES BRING IT TOGETHER: Transform and harness HLN as an enabling platform
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NEW INSTANTIATION OF THE STRATEGY
lightRadio METROCELLS
CREATING AN OPEN PLATFORM FOR DYNAMIC SERVICE ENABLEMENT
Best effort, variable
experience
QoS-enabled, constant
experience Converged backbone
Wireless Packet Core
FTTx /IP/optical backhaul
Metrocells
~ 100 Mbps IMS Gateways
Velocix CDN
PCRF/Smart Charging
Decision analytics
Optimization
Experience creation and enablement
CloudBand
Radio control & BBU
Motive WNG
OAP
Control
Alcatel-Lucent Professional Services
A platform of lightRadio cells
• Wireless + Wireline + IP + Optics + Control +
Optimization + Analytics
• “Invisible everywhere”
• Units of one, self-organized into groups
• Continuous capacity optimization
• The YOU network – YOU are in control of YOUR
experience and YOUR digital assets
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COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
SOLUTION:
THE NEW INNOVATION ENGINES
DRIVING THE USER EXPERIENCES OF THE NEXT DIGITAL ECONOMY
CONNECTIVITY INTELLIGENCE
INFRA
CLOUD CLOUD NETWORKING
USER-OPTIMIZED
ALL-IP NETWORKS
TOTAL EXPERIENCE
NETWORK ANALYTICS
PRIVACY CONTROL
AND SECURITY
CloudBand
BELL LABS
CO-CREATION
RAISING THE BAR ON THE NETWORKS
NEW
DOMAINS
WNG
CXT
Carrier Cloud
Motive Customer Experience
Wireless Network Guardian
OPENING
TO THE
CLOUD
19 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.