Offering Rich Communications Services (RCS) as a Multimedia Application to combat OTT Competition

Offering Rich Communications Services
(RCS) as a Multimedia Application to
combat OTT Competition
By ALI Saghaeian
Chief Analyst & Consultant
Telecoms, IT and Media
Ali.Saghaeian [at] gmail.com

Objectives
• When shall mobile operators act on RCS
• What are the drivers for RCS adoption
• Exploring RCS as a platform in an Ecosystem
• Enabling enriched IP communication experiences
and an openAPI to expose assets for partnering
• How VoLTE and RCS fit together
• RCS/VoLTE to provide a Platform for Contextual
Communication Services

Agenda
• RCS to provide competitive like-for-like services
as OTT
• Providing promising business opportunities for
RCS based services
• RCS based business model, creating additional
revenues for telco operators
• RCS Feature request tsunami!
• RCS Monetization Options
• RCS-e to VoLTE evolution
• RCS and VoLTE to complement each other

RCS = Modern Communications
Foundation is IMS - “raise the bar”
… must view RCS as not a replacement
for telephony but as modern
communications..
The very nature of communication is
shifting
Give consumers what they expect, or
they go elsewhere
Multi-device… mobile/tablet/PC
experience integrating messaging,
media, video, voice

RCS enables operators to provide competitive
like-for-like services as OTT but better…
OTT competition
• RCS-e is about competing with
Whatsapp, etc.
• RCS v1-4 was about competing
with Skype, etc.
Quality of Experience
• Device capabilities discovery is
viewed as an essential way to
guarantee QoE
• Essential to avoid 3G pitfalls, i.e.
video calling
VoLTE synergies
• Common IMS core, interoperability
• Business case for new services
becomes more attractive with IMS
justified by VoLTE
IM/Chat Community Web Messaging / Message Storage Mobile VoIP & Video Multi Device Delivery All OTT services but with
•Single Number
•Single Integrated App
•Quality of Service (QoS)
•Carrier Grade Reliability
•HD Voice & Video
•Global interoperability
•Federation with OTT And more…
OTT Providers Mobile Service Providers
RCS 5.x gives operators a launch pad to tackle OTT threat head-on

RCS is a platform in an Ecosystem
… Operators
•Interoperable
•Interconnected
•Accredited RCS & IMS
… Intra & Inter market
B2C / B2B SMS End User
•Airtime, Messaging, RCS, VoIP/LTE…
•Targeted Propositions e.g. stickers, logos
•Installed base
$
RCS APIs
•Mobile as a channel
B2B2x
Global and local brands 3rd party applications
Other parties
Adjacent sectors Mobile payments Mobile marketing
3rd party applications Mobile Health
Services
•Customer Reach
•Valuable APIs & services
•Single interface

Rich Communication Services enables
enriched IP communication experiences and
an openAPI to expose assets for partnering
Network Enabled Services
Current IP transformation of mobile operators
2G/3G
Voice
&
SMS
LTE/2G/3G/W iFi
IMS
All-IP Transformation
Access Network
Core Network
mobile data
1.
User Identity
Routing
2.
Voice & Video Calls
Video Share
File Transfer
IP Messaging
Rich Communication Services
Charging
QoS
Authentication

Three main cornerstones provide promising
business opportunities for RCS based services:
Global reach, easy partnering and added value
for end customers
RCS enabled services based on three cornerstones
RCS Ecosystem
Global Reach
Mobile Devices
Operators Easy Partnering
 Existig platform
 otor
 Lower add. IT costs
Added Value
 Ed ustomr
 bfits ad
 hamts
RCS/IMS

The All-IP transformation towards IMS
provides a flexible platform for easy-to-
partnering and value add for customers based
on operator’s network assets
Already existing platform
For voice over LTE (VoLTE)IMS is a must-have
Standardized “connector”
GSMA openAPI
Lower add. IT costs and efforts
Interfaces already established
Flexible Charging
Service and volume based
Global Reach
RCS is not a closed-user group
Access and Device agnostic
Services over any access and any device (native)
Enhanced Quality-of-Service
End-to-end QoSfor highbandwidth real-time services
Reliability and Security
Reliable services andno privacy issues
RCS Enabled ServicesAll-IPIMS
Added Value
Easy Partnering

Easy-to-partner enablement and added value
for customers are the basis for a RCS based
business model, creating additional revenues
for telco operators
RCS based revenue sharing model
Possible use case practices for RCS based services
B2B
B2C
Telco Operators
Partners
Customer
B2B2x – Event Sharing 2.0 Enhancing experiences from major events by enabling sharing of personalized experiences
B2B – Mobile Video Surveillance Enabling authorities to innovate public safety & emergency response
B2C – W earable services Enabling customers to use new services through wearable gadgets (Smart Watch/Glasses)

Basis for this business model will be a unique
mobile application, offering enhanced
experience services to customers visiting live-
events like soccer games or concerts
Combined into a unique picture/video experience
including sharing options & cloud services
RCS/IMS
540
300
700
1,400
Google
3,600
Mobile
Operators
What’sApp Skype Facebook
Network Enabled Services – Event Sharing 2.0
Video input from various available sources can be
combined into one enhanced experience through a
mobile app
Venue-specific camera-angles TV-broadcasting
signals
Audience-Point-of-View
 Enhanced content
 perspectives+
 audio quality+
(music concerts)
 video quality+
 Mixed with own content
 Choose clips by preview clicks
 More time to enjoy the event

By introducing an enhanced experience
application service, operator could benefit
from a vast market and revenue potential
while broadening its innovation footprint
Revenues from IMS/RCS enhanced services are based on
New consumer-focused product:cloud-based photo-& video-share app
More events per year due to increased enhanced event experience
Non-recurring costs
Less than 500k Euro (software-and business development, hardware costs, integration, etc.)
Marketing expenses
Current costs
400k Euro per year (software support, broadcasting equipment/personnel, etc.)
Marktig xpss
46+ suitable event venues
36 high-capacity soccer stadiums
10 Multi-purpose arenas (e.g. for concerts)
25+ mn. visitors in event venues per year
18 mn. soccer game visitors/year (1./2. league) Ø 30.000 visitors/game
7.4 m. ort visitors pr yar
970+ mn. Euro in event based revenues per year
545 mn. Eurosoccer games
131 mn. Eurosoccer merchandize
259 mn. Euromusic event ticket sales
37 mn. Euroevent merchandize
Compound market potential of events in Germany
Possible revenues & invest

When shall mobile operators act on RCS?
•It is not too late and mobile operators have still a lot of value to protect
•However to stay relevant, acting now is key
Time really matters Shift of end-user to smartphone apps to communicate is happening fast
•Messaging: SMS is already less used than IM
•Voice: shift can accelerate with 4G availability and stronger capabilities of OTT apps.
Lots of value can still be protected
Messaging: 41% of OTT messaging App users use IM more than SMS
BUT
Voice: ONLY 7% of OTT voice App users use VoIP more than legacy voice

Drivers for RCS adoption
 Operators focusing on an all IP future
– Services like RCS and VoLTE key to maintaining customer
relevance
– VoLTE puts many of the building blocks in place
 Increasing availability of handsets with VoLTE+ RCS native
clients being shipped by operators including as Open Market
Devices
 Increased collaboration between operators resulting in greater
interoperability
– Interoperability operator to operator within one country
– Use of IPX Hubs to enable global interoperability
 Consistent high levels of consumer demand for rich
communications
Ubiquitous Access and Full Interoperability are still key!

Operators’ Quotes on RCS ...
44
W hat Operators say?...
Orange believes that RCS Blackbird and VoLTE will provide together a
compelling value-proposition (as communicati on suite) to our customers
The three pillars to a true Enriched Calling experience: Audio Quality, Video
Call, Rich Sharing
Call+
operators need to deploy VoLTE and RCS services in order to offer
innovative high quality services through their unique proposition of ubiquity,
global reach, quality and privacy management.
-8th October 2014, London
Uwa users consume more voice call minute and Data per month
( Voice call minute 3 times more / Data 2.5 times more).

RCS Feature request tsunami!
Video Voicemail
V-card pushing
Live screen share,
live sketching
Real-time text
Stickers and multi-media
Time / location-based
message delivery
Group video share
OMA S-CAB as RCS NAB Framework
Network Address Book
Converged Address Book
Address Book Extension for Enterprise
Support of Multi-device environment
Concurrent multi PDN/PDP on UE
HD icon support
Hold-to-Talk
Interworking with social networks
PUSH Notification
Rich Emoticons and Emoji

Hosted RCS solution enables full-blown RCS
experience and even more
•Capability Discovery
•Presence based on Capablity Polling
•Last Seen Online
•1-to-1 Chat
•Group Chat, including participant status
•Store & Forward (1-to-1, Group)
•Typing indicator
•Delivery and Read Indicator
•File –Image-Video Share (1-to-1, Group, in call)
•Geolocation and vCard Sharing (1-to-1, Group)
•Voice over IP P2P, including on WiFi
•Video over IP P2P, inlcuding on WiFi
•VoIP to Video Call upgrade during call
Rich Messaging and Rich Calling Interworking
with Legacy
Multi-device
•Multi-Device support (smartphone, tablets, PC)
•Parallel Calling
•Conversation Synchronization
•Device handover scenarios
•Voice Break Out, including on WiFi
•Voice Break In (if supported by MNO network),
including on WiFi
•SMS Break Out
•MMS Break Out
•SMS Break In (if supported by MNO network)
•MMS Break in (if supported by MNO network)
•Call barring and SMS barring
Other VAS
•Home Line Calling
•RCS Hub
•Push App Wake-Up
•RCS APIs
•Reporting Tools
SLA
•Full Geo-redundancy
•Service availability
•Time-to-repair

RCS Monetization Options
Compare different deployment options and business models in order to
illustrate several business models and their potential impact
•No RCS based services are launched – business as usual.
Case 0 – “Do Nothing”
•An RCS based messaging service is launched with a monthly fee per subscriber, but data usage is not charged.
Case 1 – “Launch with a Monthly Fee”
•An RCS based messaging service is launched, and data traffic is charged, but there is no specific monthly fee for the features
Case 2 – “Launch Free and Charge for Data”
•An RCS based messaging service is launched and emulates through advertising and other digital product sales (Games, stickers, etc.)
Case 3 – “Emulation”
•The user is charged for every RCS transaction, (chat, VoIP call, file share etc.)
Case 4 – “Pay per Use”
•A new RCS based service is launched to give mobile numbers to non-GSM devices in anticipation of conversion to paying customers in the future.
Case 5 – “Future Customer Recruitment”

Scope of Operator IP Communications
Services – How VoLTE and RCS fit together?
VoLTE Incremental Functionality
Extension to W iFi RCS Messaging RCS Voice Incremental functionality (from SMS / MMS)
Extension to W iFi Extension to W iFi and 3G
Incremental functionality RCS Video
Video calls over LTE ‘Green Button Promise’ communication services

The Stony Road to VoLTE: RCS-e to VoLTE
evolution – more than just a service
• RCS-e/Joyn marked the starting point for
voice evolution to VoLTE
• Requirements:
– Embedded Joyn clients on devices
– IP Multimedia Subsystem in place
– Evolved Packet Core in place
– MSC extension for SRVCC
– Integration with OSS/BSS
• Hypothesis:
– Operators will not be able to
compete against OTTs messaging and
VoIP services. The key for success of
Joyn is to offer it as a platform for
contextual communication services.

RCS/VoLTE provides a Platform for Contextual
Communication Services
Network support
EPC, SDN
2G 3G LTE 5G WiFi
fixed
networks
Communication
Services
RCS 5.0, VoLTE
Human-to-
Human
M2M
Multimedia
Call center
ehealth
Critical
Comms
Secure
Enterprise
Automation
eUtilities
Logistics
eEnergy

RCS and VoLTE to complement each other
SMS over IP
Voice Call
Supplementary
Services
Quality of Service
Voice Call
(IR.92)
Video Call
(IR.94)
Capability Discovery
Chat 1-to-1
Group Chat
File Transfer
Location Share
In-Call Sharing
SRVCC

Countries with RCS and VoLTE commercially
available
VoLTE deployments started later
than RCS, but are growing fast,
producing now the first full
IP.Comms scenarios
<-- RCS Commercial Launches

RCS on VoLTE Handsets
 RCS enhances the service
experience with Messaging
and Sharing features.
 RCS enriches VoLTE
messaging experience.
 RCS enriches VoLTE with
in-call content share like
location or image.
 Automatic capability
discovery

RCS on 3G Smartphones
 RCS extends native SMS
funcionality
 RCS enriches CS Voice with
in-call content share
 RCS provides interoperable
Video Calling with VoLTE
 Legacy SMS and CS Voice
are interoperable with
VoLTE devices

RCS on Tablets, PC and Web
 RCS provides
interoperable
Voice and Video
calling with
VoLTE devices.
 RCS messaging
and SMS over IP
coexist on the
same app.
 Message History
and Address book
sychronized across
devices

Case Study – Take Call from RCS/OTT
Typical RCS Skype or Viber
Sub B will see Sub A MSISDN and takes the call Sub B CANNOT see Sub A MSISDN as calling party info is not available. Sub B might not answer unidentified calls...

Case Study – Custom RBT
Sub B can receive the call via VoWifi/VoData, Sub A CAN hear customized RBT of sub B Sub B can receive the call via skype or viber client, but Sub A CANNOT hear custom RBT of sub B

Case Study – Video Calling with QoS
Sub B can receive the video callon LTE or managed WiFi without any QoS issues Sub B can receive the video call via skype or viber client, but the video quality cannot be guaranteed

Any Questions?

Offering Rich Communications Services (RCS) as a Multimedia Application to combat OTT Competition

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