Finding Services and Business Models for the Next-Generation Networks

The innovation trail

The service provider’s strategy was to look towards other industries to learn from. At that time, the internet proved to be the best platform for launching new services. The internet was constantly evolving, bringing richer services to the end customers. This led to the conclusion that in order to bring innovation into the rigid mobile communications arena, a radical shift was needed. Building a worldwide communication network imposed certain conditions in terms of resilience and stability. Nonetheless, the internet at that time was a worldwide network; built from complex requirements that were able to cope with its demands. That reasoning allowed services providers to adopt the internet as their core protocol.
Adopting the IP family of protocols, service providers also brought the spark of innovation from the internet. Thanks to its architecture, the internet deploys its services at the endpoints, not at the core. The core is just responsible for the transport of data in the most efficient way. Therefore, small companies can innovate by creating compelling services at the endpoints. That schema was impossible with the core oriented architecture built by service providers.
The IMS is the perfect companion for service providers, as it can provide not only the quality needed, but also the innovation they are looking for. The trail lead by internet was used by the service providers as a guide for their networks.

6. The value of open systems

Early generations were built using proprietary hardware and software equipment, which blocked many companies from entering the market. With a few companies leading the innovation, service providers were totally dependent on their network providers. The shift made from circuit switched, towards packet switched networks enabled deploying standard equipment that any company could buy. However, there was still one barrier to overcome, and that was the proprietary software vendors.
The revolution came from the internet, as software was open, anyone could create applications over that software. The software required by service providers is now moving steady but slowly towards open systems. Consequently, innovation is open to any one with the desire to participate and bring in new ideas. The IT concept of SOA (Service Oriented Architecture), which is the based of the IMS network, is only possible if the protocol used to communicate is open.

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