© 2004 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

Looking to the Future

An Extended Eco-System for Payment Solutions

An IMS Payment Foundation

Tony GallacherWW BDM IN Consolidationtony.gallacher@hp.com+44 7990 920 835

March 2, 2005 2

BDM – Positive Feedback

BDM

Markets Partners

Technology

Strategies

Customisation

Go To Market

P&L

The Customer

March 2, 2005 3

5 Forces CustomersNew Phones, New Tariff Plans

Limited Access to $$, New FacilitiesNew “Personal” Networks

Internet ConvergenceDevice Brand Loyalties

Upgrade OptionsEnterprise Options

Telco World

TelcoFierce Competition

Technology MigrationOperational CostsContent, Marketing

Brand Loyalty, TerminalsBit Pipe Dilemma

Billing Issues

Technology PushIT Telco

Rapid ChangeLow H/W cost

Operational Costs?Competing StandardsNo Firm Demand Proof

Not “Real” Services leadFederation Environment

External FactorsGovernment RestrictionsEnforced Competition

Financial MarketsStandards Control

Regulation

New EntrantsVoIP – P2P

FMCG DistributionMVNO BrandsAll IP Solutions

Wi-Fi / Converged N’wksRe-Birth of Broadband

March 2, 2005 4

WW Directives• Current WW BDM themes− “Expanding the Commercial Eco-System for Payment

Solutions”− “Marketing Themes for Payment Features & Launch

Strategies”− “Competing against FREE (give away payment systems)”− “Converged and Bundled Services – The Optimum Mix”− “Mixed Services on Flexible Payment IN Platforms”− “IMS – Avoid the Bit Pipe”

• Adding value to the customer IMS experience while maintaining control

March 2, 2005 5

• Theme – “Self Service”− Subscriber IVR Tariff Migration− Friends and Family Web Based Update− Web based SMS Distribution list

creation− Alerts – Balance, Zones, Bundle Burn

Out− Speech Portals for Recharge− Home Zone Selection− Bolt-On Selection

• Theme – “Flexibility”− Multi-Use Scratch Cards− “Purse” Accounts (multi-use)− Multi Account / Currency− MVNO Chain Credit

• Theme – “Churn Reduction”− Loyalty Schemes− Bonus Managers− Linked value transfer− Cumulative Validity Periods− Significant day benefits

• Theme – “Data Payment”− Offers Prepaid Wi-Fi and GPRS− Future VoIP & Roaming− Packet Based Billing− IMS integration

Development & Marketing Themes

• Theme – “Increase ARPU”− New sources of revenue

March 2, 2005 6

Operational Themes - Consolidation• Maximise Revenue

− “If you can’t bill for it, don’t try and sell it”

• Lower Operational Costs− Common systems, Reduce H/W variation− Reduce suppliers and supplier lock-in− Increase flexibility for application “plug and play”− Increase Automation and Customer Self Service− Multi-Purpose Elements

• Technology− IMS ready / IMS migration

• Solutions to be built from modular items in order to provide extension and adaptation into IMS (Application Service) environment

− Entry Level solution options • Leverage and maximise existing solutions where possible – fit to market

• Attempt to Maintain and Control the Customer

March 2, 2005 7

Technology People

Available cash limited by …•Overall GDP

•Alternative Purchases

•Price changes of alternatives

•Options for substitution

•Group trends

•Time of Year

But who has money ??•Governments

•Healthcare (Savings)

•Marketing & Advertising budge

•Global Retailers

•Technology

•Insurance (Savings)

•Security

•Family, Finance and Fear

Can we “Network” source$$ to destination$$ ?

Can we leverage Payment Platforms?

Look At Me !

Big Buddies

Friends & Family

Just Make It Work

..easily !

Save, Save , Save

BUT - Where is the Money?

March 2, 2005 8

SupplierService Provider

User

ControlControlControl OptionsOptionsOptions

ContentContentContent

MARKETING

PROFILIN

GBROKERING

VASVAS

$

$$

BenefitsBenefits

PaymentPurchases

$ Value Chain

March 2, 2005 9

Technology Ideas•Enhanced Voice,Data,Video •CUG/VPN •Data+•Instant Conference•Avatar

MVNO

Linked Sale Ideas•Terminal Credits•Download Credits•Site Channel Credits•Social Credits•Affiliation Credits

Functional Services•Basic Voice, Text,

Video •Home Watch•Health Watch•Social Care•Car Watch

Personal Services•Primary Customer

Service•Personal Profiles•Personal Selling Models•Personal Triggers

(Travel Routes/News)

Service Ideas•VoIP Transit-Roaming•VoIP transit-to Home•Affiliation Credits•Enhanced Affiliation

Models

MVNO

New Functional Services•Segment Push from

alternate service providers

•Healthcare (NHS)•Security (Chubb)

Complex Terminals

Conscientious Adopters

High Value $$

Market Approach

March 2, 2005 10

Eco-System Environment and Applications

• Build a value proposition that encompasses an End to End Value Eco-System and enables HP to assist in leveraging value to each of the players:− Identify key local clients of Telco that are also clients of HP− Identify key HP Verticals that could use an mobile infrastructure to

add value to their service proposition• E.g. Health Sector – personal diagnostics• E.g. FMCG – target marketing (create closed circle of value)• E.g. Distribution / Logistics – PTT / Goods tracking / Transport Issues

etc• E.g. International Call Centre applications• E.g. International roaming special corporate features

• Bring MVNO’s to Telco− Uncover niche opps from our enterprise verticals and bring them to

Telco

March 2, 2005 11

End User

Access Layer

Switch Network

Mediation/API/Parlay

Application Server

Applications

Enterprise

Service Control Bit

Pipe

Open View

Solutions

Identity

Management

The HP Value – Most Intense $$ Value Chain

March 2, 2005 12

• Medication reminders− Doctors load prescriptions on personal Web page− Linked calendar function triggers notification− Notification / Reminders includes medication detail

• Text message, voice message, e-mail− Simple, streamlined interface, Confirmation of action

• Health monitoring− Pace-maker, heart rate monitors (etc) − Wireless link to tracking / data centre

• Channel - Premier Affiliates • Healthcare providers looking to streamline operations and push “out”

to “Customer Self-Care” models− Additional players required – Terminal, IT, Database

• What about Payment?− Real time tracking of costs / Options for customers to call using “purse”− Differential charging and preferred destination

Personal Health – Heath-Care Solutions

March 2, 2005 13

• Monitor Home, Family, Car− SMS alarms− Low Resolution Video (and later Push to See) − Audio (Push to Hear)− Dial Triggers / SMS Triggers – Light’s On etc− Stay in Contact with Family – Kids Watch / Grandparents Watch− Personal Alarm – hot key to trigger location− Car – linked to Alarm (SMS etc)

• Channel− Premier Affiliates − PA take solution to customers and market – clear value proposition− Some specialist terminal S/W for simple connectivity

• What about Payment ?− Device seen a utility tool with bundled connection options (“N”

SMS, Voice etc)− Over bundle, or to non-bundle destination, calling plan invoked− Prepaid simplifies selling model for Affiliate

Security

March 2, 2005 14

• FMCG Driven Options− Location - Text shelf location and new product deals as entering store area

• User receives bonus point for accepting SMS, redeemed only against FMCG purchase− General Text and Audio Messages

• User receives bonus points for accepting messages• Messages will be streamlined from Retailer Database + FMCG Targeting• Bonus points only redeemed against FMCG branded products

• Retailer Points / Bonuses− Shoppers can accumulate “new” points that can be redeemed against in store

products OR additional telco units. Units could be Network Redeemed, MVNO only, FMCG only.

• Benefits− Major churn reduction Bonuses may be time controlled (3, 6, 12 months)− FMCG fund Bonuses and Points that can be redeemed “on network” – pay for user

traffic− Network takes ££ from MT SMS (premium)

• Payment Features & Value− Split purses and bonus / points allocation. Redirection of points to value options in

the Eco-System

Examples of New “Value” Options

March 2, 2005 15

$Bank

$BankVAS

$

VAS

$

VASVAS

VASVAS

BTSBTSGatewayGateway

Distributor “A”

Distributor “A”

VoiceVoice

Home

Intranet

Service Service RevenuesRevenues

• Shopping• Preferences• Services• Profile

Physical

BrandedProducts

OperatorNetwork

Internet

PP System

PP System

Flexible Billing - Buy Options

“A” Cash(vouchers)

$Cash

TelcoAccount VISA“A”

Account

Cash Prepaid Postpay

BonusPoints

FMCG and Markets – New “Value” Options

March 2, 2005 16

High value platform $ / MpsTrue Non-Stop PlatformsProven platform deploymentsOpen platforms & InterfacesMulti-Application / Reusable Platforms

OC SC INS

Service Access Control

CC – Foundation Layer

Payment Foundation Layer

A1 A2 A3

Market

New Mixed Application Concepts• Flexible Payment Linked to …

− Push to Talk / See / Hear / Share – Variable Rating, Purse and Cross-Over Options

− VPN – Closed User Group, Business, Domestic and Retail Options

− Number Portability – Into Network “Bring a Buddy”Bonus

− Voting by Mobile – “Vote 5 times, get one vote for free”/ Bonus Voting points

− Premium Rate Bonuses – Linked to Product Sale (Physical or Soft)

− Customer Service and Interaction Services− VoIP – long haul and Roaming options− Missed Call – “Call me Back” benefits− Enterprise Calling Schemes

March 2, 2005 17

Transition to IMS

March 2, 2005 18

The Reality of IMS – HP Play• Saving $$ ??

− Yes, but not to the same degree as the revolution from Strowger/Crossbar Digital Switching

• A Competitive Response ??− Yes. An infrastructure that can mimic and work alongside IP

(Internet) with the same reliability etc as Voice Switched Networks –but is this a critical business driver ?

• Services / Features / Application Drive ??− Yes. To compete against, or offer new distribution routes for …

• Internet functions (IM, Video, Voice etc) , Terminals, Content

• Customer Ownership - Yes• However the reality is…

− Winning customers will require a broad network of service, applications providers and terminal software developers. It needs a deep and controlled Eco-System

HP offers the broadest range of core technologies and the widest range of partners and existing Eco-System “Multi-Play” options for service providers to WIN and maintain customers in the IMS space

March 2, 2005 19

From Spaghetti …Today’s Service Layer

Stovepipe approach

The same basic functions are

replicated over-and-over again

Short term advantage: Project-driven, cheap implementationDrawbacks: No integration of services for the end-user

Repetition of efforts, functions and costsMultiple access paths for 3rd party applicationsNot ready for next generation wave of applications

Each application implements its own interface to network capabilities and OSS/BSS

…

Voice WAP SMS MMS

OSS

/BSS ?

2G, 2.5G network

3rd Party 3rd Party 3rd Party

…

Voice WAP SMS MMS

OSS

/BSS ?

2G, 2.5G network

3rd Party 3rd Party 3rd Party

March 2, 2005 20

A “User Centric World” – IMS…• The Paradox

− Telco’s used to own customers – wires, phones, numbers• Technology Default

− Now the Enterprise segment want to own customers• Brand Loyalty

− BUT - User’s want everything to be personalized• The “MY” world (Ringtones, Terminals, Screen Savers)

• Full IP and IMS Networks can deliver for all business models, but threatens to offer less Telco control− Possible IMS End-Points …

• Pure P2P (“you are” your Terminal) : A dumb network• P2P through Network Elements (“you are” your terminal and the network)

• Key HP IMS Elements ensure− Telco’s remain at the heart of the customer interaction− Flexible options exist for Enterprise (MVNO) and Personalized models

• HSS (HLR) – Know Your Customer• MRF (OCMP) – Communicate with the customer, wherever they are• CC – Charge, Bill and Manage customer Payment - All transaction types

March 2, 2005 21

… to LasagnaTarget architecture: Service Delivery Platform

Horizontal Service Layer

Decouple applications from the underlying networks

and supporting systems by using common functions

and interfaces

Advantages: New revenue opportunities via integrated servicesRe-use components (authentication, session mgmt, user profiles …)Common APIs towards network capabilities and OSS/BSS subsystemCommon APIs towards 3rd party applicationsEnable management of very large number of applications

Synergetic platforms, common interfaces, homogeneous integration frameworkN

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Network Assets

Service Enablers

Third-Party Framework

Applications Voice

Multi-M

edia

Data

Mobile Network

Fixed NetworkWLAN Broadband

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Network Assets

Service Enablers

Third-Party Framework

Applications Voice

Multi-M

edia

Data

Mobile Network

Fixed NetworkWLAN BroadbandMobile

NetworkFixed

NetworkWLAN Broadband

March 2, 2005 22

Industry transformation

1980s 1990 ---- Today Tomorrow

On-Switch telco servicesIntelligent Network Edge

leveraging standard IT architecture (SDP)Intelligent Network systems on

general purpose computing platforms

IN

• IMS offers a variety of Support and Control Functions, not just Sessions/Service Control• IMS Core Switch (CSCF) is service agnostic since the IMS Session Control (Via Gm, Mw, Mg) and Service Control (via ISC) are both based on SIP• IMS support real-time and non real-time services based on Internet technology, which simplifies the integration/extension of existing Applications/Applications Server

• IN is a pure a Service Control mechanism• IN is only partially service agnostic since it implies different protocols for Sessions Control (ISUP) and Service Control (CAP). This hinders the fast deployment of new services.•IN services are executed in CAMEL Service Environment (CSE)

Impact of IMS on service environment

March 2, 2005 23

Open Standard Concepts• Abstract the Business and Call Control Logic to the Enterprise /

Service Provider Layer.

End User

Access Layer

Parlay, ParlayX, OSA

Application Server

Applications

Enterprise

Switch Network

Service ControlSwitch Network

Service Control

Switch Network

Service Control

Access Layer Access Layer

Mobile 2G Fixed (Pots, ISDN, BB …) Mobile 3G/WiFi etc

Gateways

Wireless, Wireline, ADSL, Satellite

March 2, 2005 24

VPN – Federation• VPN must be developed to embrace…

− Content, Terminals, Shareware, Video/Visual− VPN becomes the “Bridge” between the functional areas− VPN needs to cross networks, servers, PBX’s, Calling Technology− VPN features and facilities must reflect business drivers and

strategies

Core CompanyPartner

Industries

PartnerIndustries Remote Company

Sites

Remote Company Sites

CustomerGroups

CustomerGroups

IndividualCustomers

IndividualCustomers

VPN Framework

CRM Systems

Data

VoiceInternet

PBX Systems

March 2, 2005 25

Application Abstraction - EVPN

MSC

HLR/HSS

HSS

Public NetworkPrivate

Network

RemoteOffices

Public VPN(Centrex)

Networks

Telco Bus AppsBusiness Apps

Business Database CRM Applications

ConsumersClients

Signalling GatewaysOC SAC

API’s

Sig GWOCMPAPI’s

WAN

March 2, 2005 26

The Enterprise / Telco Vision

• Business Logic− Build a bridge between the Enterprise Business Logic and the

Network Call Control Logic− Offer interworking between core HLR/HSS database and business

logic

• Networking− Offer bundled solutions around network capabilities, with an eye to

future IMS / IP standardization

• Terminals− Through collective database records, excellent customer interfaces,

maximise the use of terminal capabilties

• Replace Legacy PN Systems− With core network offerings / With IP based PBX systems

• Work with Business / Network Partners

March 2, 2005 27

Enhanced Interaction

HSS

Network

Business Apps

ConsumersClients

SMS

Notification

E-Mail

Call Back

Media Connection

Queue Function

Call Back Function

Information Svcs

Mixed Media Working

Enhanced Routing

Return to Agent

Queue on Agent

Pref Routing (History)

Caller ProfileTerminal CapabilitiesNetwork DetailsCaller HistoryRestrictions

March 2, 2005 28

Features / Benefits - Overview• Internal Calling

− Linked to “Outlook” – tracks movements, optimized routing− Linked to HLR/HSS – Presence detection on Mobile network

• Divert to Vm / Front desk on “No Detection”− “In Meeting” options – Voice prompt for SMS option− Calls from PBX – No “Phantom Numbers”

• Callers desk phone linked to number index• Number sending from network to mobile could be:

− Reception, A Party, A Party mobile• Full MSISN transferred to mobile for caller ID

− LCR – based on Calling and Called party• May wish to marry status and application to route options

− LCR from Fixed to Mobile / Mobile to Mobile• Optimized routing based on network trunk routes and VPN options –

network may wish to use PN for some routes− Network Features

• Call Back (from Voicemail), Camp On – available through networks

March 2, 2005 29

Features / Benefits - Overview• External Calling

− Call Queuing• Options presented to caller

− “Call Me Back” – options for Time, Number− “Leave a Voice Message” – and we will call back

• Customer sent SMS to confirm receipt and action− “Speech Recognition” – see if I can help you− “Other calling options” – SMS other calling number options (no need to

remember new numbers)− “Go to Portal” – GPRS / Data connected phone (3G)− “Call Back when 2nd in Queue” – no need to hold line

• Contact Database− Relate incoming caller to previous Agent, or Employee− Relate incoming caller to previous calling activity – queue time, device

type etc• Push Options

− Avatar IVR (Talking Image) with Speech recognition (Web or Mobile)− Push information while talking

March 2, 2005 30

Business Transactions• Business to Business

− Supplier Chain Enhancements• Example – Ordering with Voice and Visual mixed media for clarification• EVPN provides quick-dial and linked media applications / database

• Business to Employee− Networking and Performance Improvements

• Example – Push to Connect, Presence Detection (who is in), SMS, Push WEB, Tracking• EVPN provides supporting network information

• Business to Customer / Customer to Business− Major Improvements in Customer Care

• Example – Enhance Queuing systems, “Historical” connection, Push to Terminal• EVPN – manages connectivity

• Business Application to Employee− Automatic connection to services and updates on users / meeting scheduling− Auto conferencing – location independent

• Business Application to Customer− Information and Content sending based on customer terminal/network

• Example – Directory Enquiry• EVPN – manages call centre activity and optimised routing + content transmission options

• Application to Application− Database optimisation between network and enterprise− Tracking and monitoring options

March 2, 2005 31

Target Enterprises - Industry Verticals

• Key Attributes− Internal and External users of Mobile devices−Calls are generally group or person specific− “Customers” may have Urgent needs− “Customers” are considered valuable from

• Transaction basis, Loyalty, Competitive, Legal Issues−All sectors are under serious cost cutting/competitive

pressure−All sectors are either making $$ or are spending $$

Health Care

Super Markets

Security

Logistics

Travel/Airlines

Telco/ISPs

Insurance

March 2, 2005 32

Simply Put …

The Customer

The Network(s)

The Management

Payment/C Charging

Enterprise Apps/Svcs

Applications & Services Content Apps & Svcs

Device Apps and Svcs

+Partners+Partners

+Partners +Partners

Open View Portfolio

Open Call – HSS/OCMP

Open Call & OView

The Control

Open Call Service Control

March 2, 2005 33

HP’s telecommunication software strategyEnabling the Adaptive Enterprise for Network and Service Providers

• synchronize network & operations with business

• simplify & standardize infrastructure• anticipate and rapidly respond to

change

HP OpenCall, together with application partners, HPC&I, and 3rd

Party System Integrators, delivers market leading solutions thatconnect people & services with radical simplicity

HP OpenCall enables the three fundamental elements of the Adaptive Enterprise for NSPs with HP’s OpenCall suite of solutions

IT business management

OSS/BSS

Service delivery

management

Servicedelivery

Business services

Application services

Infrastructureservices

Business objectives and strategy

March 2, 2005 34

For additional information on:Looking to the future - An Extended Ecosystem for Payment Solutions

Enabled by HP OpenCallEnabled by HP OpenCall

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