Pipeline Publishing, Volume 4, Issue 11
This Month's Issue:
Confronting Fraud and Malice
download article in pdf format
last page next page
Service Complexity -
Driving Innovation and Partnership
back to cover

By Keith Willetts

There was a time, not that long ago, where fixed-line service providers built their own telephone handsets, but they don’t any more. The market pressure over a few decades took its toll and service providers eventually came to the realization that this was not a profitable enough pursuit for them. Soon a plethora of handset makers entered the market with much greater functionality, better looks and lower costs. Service providers concentrated on providing their services and handset manufactures made handsets.

An effective partnership was formed between the handset makers and service providers. Handsets encouraged new value-added functionality to boost service margins and handset makers sold handsets. Standardization of the sockets and the signaling ensured that each handset could work with any standard service provider.

So what’s different today? In short, service complexity. Look at the types of services now available that weren’t ten, twenty, or thirty years ago. Where the POTS (Plain Old Telephony Service) took fifty years to bed down in the market, there are now new service types being created with alarming frequency every month and new ingenious ways to create revenue for not only communications services but information and entertainment, as well. These new services with high functionality are so new that operational engineers at service providers can’t use standard interface and processes, because there aren’t any. The short-term issue of just getting the services running is much more important to them than using standards. Standards tend to follow market



trends in most cases; however clearly making standards that no one is going to use makes no sense. In some cases standards have been the essential catalyst that has created and defined whole new markets. For example, where would the mobile industry be today without GSM standards for handsets or base stations, Bluetooth for accessories, and of

Where the POTS (Plain Old Telephony Service) took fifty years to bed down in the market, there are now new service types being created with alarming frequency every month and new ingenious ways to create revenue for not only communications services but information and entertainment, as well.




course IP for the internet? Widely adopted standards help create healthy partnerships. The more the standard is adopted the bigger the market potential for each vendor and the bigger choice each buyer has. Competition drives innovation as vendors fight to constantly stay ahead of their competitors and build new and innovative features, functions, or price points into their products.

The mobile service providers from day one knew that they needed to rely on mobile handsets and a very different partnership was set-up than those with fix-line operators. Subsidized handsets ensured rapid take-up of services and generated much greater handset volumes in many parts of the Western Europe, for example. This “value-chain” for the service works as each component part of the chain is able to make money and there are clear demarcation points in the service.

However, the advent of services, such as those being produced for the 2008 Olympics in Beijing by Chunghwa Telecom to offer IPTV and mobile TV content to subscribers, needs much further levels of integration. Video services require content to be created and compressed based on their types of usage. A partnership with content providers is the starting point, and more advanced services are being created to offer interactive content and advertising based on user or device preferences. Another example of partnership is where SK Telecom has been working with local financial services company Citi to create the next generation of mobile banking technology in a drive to use mobile phones as a method of payment. SK
article page | 1 | 2 | 3 |
last page back to top of page next page
 

© 2006, All information contained herein is the sole property of Pipeline Publishing, LLC. Pipeline Publishing LLC reserves all rights and privileges regarding
the use of this information. Any unauthorized use, such as copying, modifying, or reprinting, will be prosecuted under the fullest extent under the governing law.