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TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest [email protected] no.nl 27th September 2004

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Page 1: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

TNO Telecom

Supporting New Business Models for

Machine/Device based Services

Professor George Huitema Mobile Billing Systems 2004

Budapest

[email protected] 27th September 2004

Page 2: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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Overview

• What are machine/device based services?• Cases

• Location based Services (MiloWare & Services)• Telematics Services

• Development of business models• Operator roles• Effective pricing models and billing issues

Page 3: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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What are Machine/Device based Services?

Support of the interaction between entities (man/machine) by means of automatic processes

Combination of telecommuncations and computing (telematics)

Machine

Machine

Interaction

Page 4: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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What are Machine/Device based Services?

• Services can be found everywhere• Home• Transport• Environment• School

Page 5: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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What are Machine/Device based/ Services ?

• P-2-P: voice calls, SMS, file-sharing,…• P-2-M: browsing, dialing in to corporate

environments, …..

• M-2-P and M-2-M• Alerts, notifications, … • Alarms (security, breakdown, ..)• Resource Managing (stock control, navigation, fleet mgt,….)• Metering/Billing (measuring utilities, toll collection, vending

machines,..)

Page 6: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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What are Machine/Device based/ Services ?

• M-2-P & M-2-M• Location Based Services• Telematics Services

• Applications fall into two categories• Fixed entities: alarms, metering, …• Mobile entities: fleet management, automobile applications

• Mobile M-2-M is also called • Mobile Telematics or • Telematics or• In-car intelligence

Page 7: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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What are Machine/Device based/ Services ?

• M-2-P & M-2-M• Two Cases

• Location Based Services (MiloWare)• Mobile Telematics Services

• Business Models• Billing Issues

Page 8: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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Location Based Services

• Presence Services• Tracking and tracing• Finding Services• Navigation Services

• Location Technologies• GPS, GSM/UMTS, WiFi, RFID• Difference in availability, coverage, accuracy and costs

Page 9: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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Case MiloWare (TNO Telecom)• MiloWare Platform

Miloware platform

Clients

Locations

Location rules

SOAP interface to location based services

SOAP interface for location information

devices connected to location provider

Location Providers

Page 10: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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Case MiloWare (TNO Telecom)

• Functionality• Collecting location information of users and

equipment• Works with rulesets: trigger messages based on

locations• Making this location information available through

web services to Service Providers (standardized, open interfaces)

• Featuring• Respect of Privacy• Intelligent Services• Any –location- thing

Page 11: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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Case Mobile Telematics Services

• Telematics in vehicles • Processors (embedded computing)• Mobile networks• Positioning technology (GPS, …)

• It started with radio services• Traffic information• 2-way systems

• With the global coverage of mobile networks mobile

telematics gets a boost• Killer app: drivers love talking in their cars (60% of

total airtime)

Page 12: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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Case Mobile Telematics Services

Example of Services• Safety & Security

• Emergency Notification and SOS• Roadside Assistance• Remote Door Unlock• Vehicle Tracking• Vehicle Diagnostics• Hands-Free Voice Driven Services

• Navigation • Driving Directions• Route Selection• Traffic Reports

Page 13: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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Case Mobile Telematics Services

Examples• Convenience

• Hands-Free Personal Phone Calls• Voice-Driven Email Services• Voice-Driven Short Messaging (SMS)• Automatic assistant helps you: locate gas stations when you

need them; Locate destinations and guide you there, …• Concierge services for a variety of personal and professional

needs: restaurant suggestions and reservations,

accommodations, tickets to events, ….

Page 14: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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Business Models • Roles/parties

1. Network operators2. Service providers3. Content Providers 4. Large companies5. Equipment vendors6. Application Service Providers

• The needs of these parties are: 1,2,3,4,5,6 Differentiate from other competitors through innovative services

1,4,5 Enabling services in a fixed, mobile or converged network 1 Attract service providers 1,2 Attract content providers 4 Improve efficiency 1,2,3,6 Generate ARPU 1,2 Decrease CHURN 1,2,3,4,6 Increase user satisfaction

Page 15: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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Business Models

End usersMobileOperator

Aggregator

Access Network

Service ApplicationsPlatform

ServiceProvider

Services

MgtProcesses

Billing of services

Wholesale Billing

Billing of traffic

Page 16: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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Billing of services is essential for every party involved

Service Providerwith service/content

Access Operatorwith trafficAggregator

with commission

Win-winFlying wheel

Page 17: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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Billing issues

• Revenu Sharing• Real time billing• Content billing

• Pay per event• Data bundles• Service Plans

• Basic, Medium, Advanced

• Context Billing

Page 18: TNO Telecom Supporting New Business Models for Machine/Device based Services Professor George Huitema Mobile Billing Systems 2004 Budapest g.b.huitema@telecom.tno.nl

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Questions ?

Professor George Huitema

TNO Telecom

[email protected]

www.telecom.tno.nl