Enabling the Wireless Internet

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1 Enabling the Wireless Internet Presented to IEEE CVT-Dallas February 15, 2000 Barry Herbert barry.herbert

2 Operator Market Dynamics Price/Min in U.S. Cents Price/Min CAGR = -23% MOU CAGR = 25% MOU per month '98 '99 '00 '01 '02 '03 Wireless operators need services that provide differentiation and fill the revenue gap

3 General Packet Radio Service (GPRS) Voice MSC IWF PSTN BSC Data End User Benefits PCU SGSN Always connected (no call setup) Higher bandwidth possible Charge only for bandwidth used SGSN Managed IP Network SGSN GGSN Internet PCU = Packet Coder Unit SGSN = Serving GPRS Support Node GGSN = Gateway GPRS Support Node Network efficiency for the operator, enhanced services for the user

4 The Value Proposition for Wireless Internet

5 Wireless Internet Market Opportunities Wireless Voice Wireline Internet y >300M subscribers y 17% annual growth y 38%: most desired service is Internet y ~150M users y Users doubling every 4-6 months y 1000% annual traffic growth y 78M mobile professionals use wireless voice y 75% carry a mobile computing device y Understand value of wireless voice Given clear business value, mobile professionals are ideal candidates for Wireless Internet

6 Compelling Values of Wireless Internet Immediacy Real-time business decisions Ubiquity Anywhere access to information Localization Information based on current location Context Information tailored to individual s situation and device Success today depends on the ability to communicate, coordinate and collaborate with colleagues in in real time wherever they are

7 Competing in Time, not Bandwidth Wrong address? Wrong Address? 1998 HotData, Inc. There are times when you complete a task NOW with Wireless Internet or LATER on the wireline network

8 Barriers to Wireless Internet High Cost Technical and business concerns must be addressed Higher Priorities Security Concerns Unable to Build Business Case End-to-End Management Network/Application Reliability No Competitive Advantage Bandwidth Limitations Lack of Technical Support Source: Yankee Group December, 1997

9 Wireless Internet Key Success Factors Flexible platforms to address technical concerns Built on open Internet standards Enable rapid development of innovative mobility services Adapt existing applications to wireless environment Provide reliability, security & quality-of-service Mobility-centric services to address business concerns Combine data from wireless network, Internet & user profile Satisfy compelling values of mobility Value-based pricing Network flexibility and mobility values will drive market acceptance

10 Building Blocks of Wireless Internet

11 Building Blocks of Wireless Internet Virtual Networks Applications MiddleWare Content Adaptation Network Infrastructure = Why the network is used: Directions around traffic congestion Real-time group collaboration Event notification = What makes it work: Location data Content adaptation Bandwidth optimization QoS & VPN = What carries the bits: High-speed packet radio Next-generation switches

12 Key Middleware Services Virtual Networks Applications MiddleWare Content Adaptation Network Infrastructure Application Adaptation Services Optimization of network protocols Intelligent compression of content Intelligent filtering of graphics Mobile Positioning Center Enabling location services Managed Network Services Virtual Private Networking (VPN) QoS, Priority queuing Traffic & policy management

13 Intelligent Bandwidth Optimization Compression with knowledge of protocols & content formats Application (Web, Groupware) Presentation Session Transport (TCP, UDP) Network (IP) Data Link Physical (Ethernet, RS232 Cable, Radio) Data Link compression, such as V.42bis, applies the same compression technique to all data. Internet protocols assume high bandwidth and low error rate. Wireless needs optimal bandwidth usage and efficient error recovery. Intelligent compression optimizes application protocols and compresses content.

14 Internet protocols in wireless environment Transmission Control Protocol (TCP) Proven track record in large-scale deployment Highly adaptable (window size, timers) But, it Reacts poorly to non-congestion data loss Probes available bandwidth - SLOWLY HyperText Transfer Protocol (HTTP) Grammar highly compressible HyperText Markup Language (HTML) Contains white spaces, comments, META tags Inefficient English grammar Internet protocols were designed for a high-bandwidth environment

15 Application Adaptation Services Intelligent Compression Mobile Computing Device Web Browser Application Servers Client FTP Client Client Proxy Server Proxy Single, optimized TCP/IP session for all applications Optimizes Internet protocols for the wireless environment

16 Techniques for Protocol Optimization Transport protocol reduction Single TCP/IP connection Tune TCP slow start Differencing HTML grammar reduction HTML accept header removed (Capabilities sent on first request) Constant data stripped from response header Tokenization (substitute token for tag) Benefits: ~40% decrease in bytes transmitted

17 Application Adaptation Services Intelligent Filtering Original: 49k bytes 28k bytes Reduction: 43% 19k bytes Reduction: 61% 11k bytes Reduction: 78% Time to transmit at 14.4k bps (in seconds) Source:

18 Managed Network Services Access Networks Managed Services Core IP Networks DSL Cable Priority Queuing Firewall VPNs Policing Operator / Enterprise intranet Dial DiffServ Encryption Accounting Nortel Networks SSG-5000 Internet GPRS Rapid service creation and customization Economical service provisioning Access technology independent

19 Mobile Positioning Center E911 Position Determination Location API Secure XML Internet Mobile Positioning Center Where is a nearby ATM? Location Authentication Authorization Accounting Provisioning Business Locator Enables innovative location-centric applications using secure, open interfaces

20 Wireless Application Protocol (WAP)

21 Wireless Application Protocol Global wireless protocol specification Enables handset to be a mobile computing device Provides consistent service user interface across handsets Well-suited for delivery of: Internet content (news, sports, stocks) Customer care (billing, usage) Telephony services WAP brings information services to the mass markets

22 WAP Architecture Client WAP Gateway Web Server WML WML- Script WTAI Etc. WSP/WTP WML Encoder WMLScript Compiler Protocol Adapters HTTP CGI Scripts etc. Content WML Decks with WML-Script

23 Pricing Considerations

24 Price of Wireless Data Services Carrier Technology Voice Price/KB AT&T Wireless CDPD Yes $.67 Microcell (Canada) GSM Yes $.26 T-Mobil / Mannesman GSM Yes $.70 BellSouth RIM / Mobitex No $.40 BellSouth Palm 7 / Mobitex No $.18 Wireline ISP N/A N/A $.0012 * In exchange for limited information on a wireless terminal, users pay 1,000 times landline charges. Source: Herschel Shosteck Associates, Ltd., May, 1999 The limited market acceptance of wireless data suggests users do not see 1,000 times more value * Assumes 50Mb/month

25 Summary - Wireless Internet Opportunity Wireless and Internet are coming together, changing the way we work, communicate and share ideas Wireless Internet enables business leaders to compete in time, not bandwidth Compelling applications satisfy key mobility values: Ubiquity Immediacy Localization Context Flexible platforms are critical: enable rapid development of innovative mobility applications provide secure, reliable and cost-effective content delivery

26 Preparing for Tomorrow Today Today we must focus on low cost, flexible infrastructure as the portal to tomorrow s mobile information services We can t predict the future, but we sure can enable it

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