NMS at a Glance. Slide 1. Telecom Innovators Web Seminar Series. Sales & SE Support. Channel Partner s Headquarters
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1 NMS at a Glance Founded in 1983, publicly traded since 1994 Technology and solutions Designed into products deployed in 90 countries Major telecom operators, equipment and solution providers rely on NMS Product Development Sales & SE Support Channel Partner s Headquarters Slide 1
2 20+ Years of Innovation Open Communications Deploy in any network TDM to IP Blade to system versatility; superior scalability Innovative, future-proof solutions Rapid ROI Blue chip partnerships Applications, content, integration, support Slide 2
3 Implementing 3G Mobile Video Services with 3G Video Gateways Mike Katz Director, Vision Video Solutions NMS
4 Agenda Overview of the IP and mobile video market Business case for new video services Video applications Conversational video applications Interactive video applications The role of 3G-324M protocol and 3G-324M gateways Application use cases Slide 4
5 Mobile Video Services Market A Market on Fire Opportunity Market Conditions for Growth Opportunity Video Services & Applications Service providers are demanding new applications to drive ARPU & reduce churn New handset technology & improved 3G infrastructure are enabling innovative applications VoIP and video terminals are emerging Consumers are demanding Internet-like multimedia on their handsets Deliver new video base services to operators Increase their ARPU Deliver high-value integration of revenuegenerating video applications Messaging Streaming Content monetization Slide 5
6 Global Mobile Video Launches Mobile Video Services DoCoMo (11/01) Video SK (11/02) (June) Multimedia/Video MobiTV Launches on Sprint (11/03) Telefonica (late 03) MMS Video (Various 11/02) VOD Sprint (08/04) SingTel (02/05) Video MobiTV on Cingular (1/05) MobiTV Midwest Wireless (1/05) VCast (02/05) Orange (09/04) KT FreeTel (05/04) SkyLife Broadcasts (3G 5/02) KDDI (07/03) Video Clips Telus Mobility (11/04) MediaFLO (exp 10/06) O2 (5/05) Asia Europe North America Optus (04/03) Video Clips Vodafone (4/04) Analog Tuner Vodafone UK (11/04) T-Mobile EU (07/03) Video MMS (07/04) n-tv news Source: JupiterResearch, Executive Interviews, 2005
7 Mobile Video Services Equipment 3G Market Opportunity, Size and Evolution Video Service Platform Markets Video Service Platform Markets Total Addressable Equipment Market Per Year ($M's) Region North America $30 $33 $46 $66 $95 $124 Central and Latin America $24 $28 $33 $39 $45 $51 Western Europe $44 $67 $76 $100 $137 $174 Eastern and Central Europe $18 $18 $20 $26 $34 $43 Middle East and Africa $0 $0 $4 $6 $10 $13 Asia Pacific $145 $214 $312 $389 $476 $563 Total $260 $360 $491 $625 $796 $967 These numbers include video mail, conversational gateways and other applications *Source Ovum Slide 7
8 3G Mobile Video Market Trip Points Mobile video will take off when: Coverage exists 1 Video-enabled handsets are widespread 1 Mobile video applications are widely available and easy to use 1 Current Facts Worldwide WCDMA/UMTS subscribers = 32 million 2 Worldwide 40 WCDMA/UMTS live operators 3 Over 56 handset vendors with 615 terminals 2 1 Yankee Group and Ovum Research Data Slide 8
9 Operators' Challenge How to maintain growth in a maturing market Market share Revenue Profit Key business objectives Increase average revenue per user (ARPU) Increase minutes of use (MOU) Decrease churn Create new sticky applications Quickly At reasonable cost With high reliability Slide 9
10 Mobile Video Revenue Models Applications Drive the Revenue Indirect Create stickiness and drag along revenue based on the availability of video service Direct Create immediate payback for the service Create some stickiness Provide a means to up sell and cross sell to every mobile video user Creative pricing for mobile video Hutchinson 3 in Australia is offering low cost video minutes and free streaming video content $28 of video and multimedia package for free Includes 30 video minutes and 30 multimedia content for the first three months They have signed up 500K 3G subscribers to date Up sell and cross sell via a portal DoCoMo in Japan, TMN in Portugal and SFR in France all have working video portals Avatars or video menus that up sell and cross sell mobile video services Slide 10
11 Revenue Models Right Mix Indirect vs. Direct Go with both but offer multiple video applications Video mail will not make money by itself Pricing I-motion like pricing with micro-payment model Applications to offer: Conversational services See-what-I-see Video chat Messaging Hutchinson 3 and TI in Italy Absolute requirement from the market Streaming Live and clip driven video Sprint MobiTV, Verizon VCAST, DoCoMo I-motion, SKT Video IVR video catalog on line Universal Music Mobile like service MTV videos and other types of content Revenues shared with the operator Aggregate all the services together via a common gateway served interface Slide 11
12 Mobile and IP Video Applications Video gateways enable Conversational applications between mobile video and /IP video terminals Multimedia messaging and blogging Video chat and see-what-i-see Video conferencing Multimedia gaming Real-time video streaming Slide 12
13 Conversational Gateway Opportunity Offer 3G mobile video users a means to connect with other VoIP based customers. True person to person video communications from a mobile user to a wired video terminal Enable See what I see applications Offer triple play operators a way to capitalize on existing investments in mobile video and data Examples include France, Singtel, Italia, NTT DoCoMo Slide 13
14 Delivering Conversational Services Mobile & Wired to IP Video Devices QCIF: 3G-324M Mobile Devices MSC Circuit Switched PSTN Packet Switched /IP ISDN Video Phones 3G-324M Gateway Video Streaming Clients CIF: Video Phones Slide 14
15 Conversational Application Italia Live service as of 12/1/05 UMTS and phone in one 199 package Free to subscribers till Jan 31, per minute thereafter Between Italia will invest 10B in convergence applications Slide 15
16 Video Mail Mike initiates a video call Video Call Jane Call is diverted to the call answering system
17 Key Video Mail Features Message Deposit Allow callers to review and change their message; to feel comfortable in front of the camera Outgoing Message The ability to record and personalize their message Allow use of default greeting Notification Include message type indication, so that users can select how to access the system Message Retrieval 3G & IP video retrieval Don t make users wait till they are in 3G coverage to retrieve messages Slide 17
18 IVVR Key Benefits A unique technology to intuitively and interactively browse content on your mobile The interactivity of the IVR No buffering, instant response to keystrokes, interactivity allows games and quizzes The diversity & multimedia of WAP Access to a huge catalog of video entertainment and to customization Only more user-friendly and powerful Video interface making the most of 3G capabilities (c) Universal Music Mobile 2005 (c) Universal Music Mobile 2005 Giving the consumer the keys to the video experience Slide 18
19 Delivering Messaging Services Mobile or Wired IP Video Devices QCIF: 3G-324M Mobile Devices MSC Circuit Switched PSTN Packet Switched /IP 3G-324M Gateway ISDN Video Phones Video Mail or IVVR Clients CIF: Video Phones Slide 20
20 3G Video Network Architecture MPEG4, MP3 CIF, 30fps, RTP/UDP/IP Media Server MS Proxy Server Proxy H.263, G.711 CIF, 30fps, RTP/UDP/IP CDMA Network GSM Network MPEG4, AMR QCIF, 10fps 3G-324M 3G: CDMA2000 1xEV-DO (Evolution-Data Optimized) 3.1 Mbps/1.8 Mbps 3.5G (W-CDMA): High-Speed Downlink Packet Access (HSDPA) 3.1 Mbps/1.8 Mbps 3G (W-CDMA): Universal Mobile munications System (UMTS) 1920 kbps Um 3G Node B ATM or Radio Network IMA Controller T1/E1 lub RNC Radio Access Network (3G) Signaling Gateway SGW, RFC 2833 ISUP Video Gateway MSC VGW 3G-324M, UII Internet H.264, G.729A CIF, 30fps, RTP/UDP/IP H.263, G.723 CIF, 30fps H.323, RTP/UDP/IP QCIF = Quarter Common Intermediate Format CIF = Common Intermediate Format UII = User Input Indications (from DTMF selections) Slide 21
21 Video Gateway Conversational Configuration Management Console* CLI Private IP Network Web SNMP or CLI 3G-324M 64 kbps video phones Features 3G-324M 3G-324M <-> 3G Network Video play during connect Inbound and outbound calling Number translation RFC 2833 to DTMF UII QCIF, H.263, MPEG4 transcoding AMR, G.711, G.723 transcoding * Customer Provided Uses Vision Video Gateway Conversational gateway Video mail Video portal Vision Video Transcoder Operational Highlights 3G-324M or phone makes call Gateway plays video message while other phone ringing Gateway negotiates capability and transcoding requirements Conversation begins Called or Calling party hangs up and session is terminated Public IP Network Proxy* Video Phone Slide 22
22 Video Gateway Conversational (with Messaging) Configuration Management Console* CLI Web SNMP Private IP Network 3G-324M 64 kbps video phones Features 3G-324M 3G-324M <-> 3G Network Video play during connect Inbound and outbound calling Number translation RFC 2833 to DTMF UII QCIF, H.263, MPEG4 transcoding AMR, G.711, G.723 transcoding * Customer Provided Uses Conversational GW Video Mail Vision Video Gateway Video Portal Vision Video Transcoder Operational Highlights 3G-324M or phone makes call Gateway plays video message while other phone ringing Gateway negotiates capability and transcoding requirements Conversation begins, or non-answered call reroutes Caller navigates with DTMF or plays/records Caller hangs up Slide 23 Public IP Network Proxy* Video Mail Server* Video Phone
23 Video Gateway Interactive Configuration Management Console* 3G-324M 64 kbps video phones Features 3G-324M 3G-324M <-> 3G Network Video play during connect Inbound and outbound calling RFC 2833 to DTMF UII QCIF, H.263, MPEG4 transcoding AMR, G.711, G.723 transcoding Uses Vision Video Gateway CLI Vision Video Transcoder Video mail, entertainment applications, information applications, storefronts Operational Highlights Web SNMP Private IP Network 3G-324M call routed to a enabled interactive application Caller navigates interactive video menus with DTMF (2833) IVVR Server plays video of menus, avatars or video clips Interacts with caller to provide value Caller hangs up IVVR Application Server* * Customer Provided Slide 24
24 Vision in Mobile and IP Video Applications Video mail, conversational and interactive applications Create one application to deploy in multiple environments Enable real-time communications between 3G and IP video terminals Easily enhance voice applications to include video Slide 25
25 Vision Video Gateway Conversational and Interactive applications Bridge video services between broadband networks and mobile networks supporting 3G-324M High-performance support for real-time conversational and streaming services Fully integrated with audio and video transcoding to support IP and 3G video terminals Carrier-designed solution providing a full set of management and auditing tools PCI 2U form factor Slide 26
26 Vision Video Transcoder Provides video transcoding and rate transformation services deployed as a scalable networked resource Low-delay engine able to support real-time conversations in a heterogeneous environment of mobile video (3G-324M) and IP video terminals Programmable user menus overlays, or personalization features possible with features like programmable text or image overlay Designed as a sharable resource pool for applications Optimal scalability and cost-effective deployments PCI 2U form factor Slide 27
27 Rapid Deployment Maximized ROI NMS video products provide a platform for maximizing revenue potential for existing and new video services Built around an architecture that can efficiently deliver advanced video processing features Tuned and designed to be deployed in wireless or fixed network configurations Streamlined for services with high value for the consumer Vision Video Gateways & Transcoders Slide 28
28 Upcoming Events Shows 3GSM World Congress February 13-16, Barcelona, Spain, Booth # C46 in Hall 1 Globalcomm India February 20 22, New Delhi, India, Booth # 1033A Spring VON March 14 17, San Jose, CA, Booth # 525 Webinars March 15: Building Applications Fast with Vision Media Servers April 14: Interactive Mobile Video Applications via Video Enabled VoiceXML Slide 29
29 NMS COMMUNICATIONS
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