Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: Eric L who wrote (9986)	3/21/2001 1:26:30 PM
From: S100	Respond to of 34857

3G Billing a problem? snip First UMTS service launch Amidst all the speculation about the complexity of 3G billing, Manx Telecom, a wholly owned subsidiary of BT, is actually implementing the first UMTS commercial service in Europe on the Isle of Mann. Cerillion, in cooperation with mediation partners Xacct, is installing a fully convergent platform to cover all aspects of Manx's customer care and billing, incorporating existing GSM (20,000 subscribers) and fixed wire (40,000 subscribers) services and UMTS services. Initially, Manx approached 15 vendors and its selection criteria included: compliance with its statement of requirement (which hasn't been publicised); a strong focus on convergence; flexibility and ability to develop emerging requirements; scalability in terms of sizing, cost and performance; ability to act to short time-scales; and value for money and competitive costing benefits. Cerillion, in cooperation with meditation partners Xacct, were selected as having the highest level of compliance. The launch of commercial operation is set for May 2001, and includes UMTS services such as handset-to-handset voice calls and point-to-point video conferencing, among the range of Manx applications using the IP network. Due to industry limitations there will only be a certain number of 3G handsets available on launch, and this is currently under negotiation. There will also be image display units (IDUs) for the point-to-point video service. In addition, taxis on the Isle of Mann will be fitted with location-based services, targeted at visitors driving from the airport to the city centre. As they pass various points in the city, using global positioning systems (GPS), they will be sent messages about various discounts or special offers from shops and restaurants for example. Pricing model To illustrate the pricing model, Tom Meageen, 3G systems implementation manager, Manx Telecom, takes the example of a video streaming application. "It is possible to view short video clips via a 3G handset; those clips could be free or charged on a clip by clip basis. If it's not free a little message will click up and say 'This is 'x amount' to view do you wish to progress?'. If yes the application will create a file with details of the clip that was viewed, possibly a cost or product code that can be looked up on the billing system. The Xacct mediation platform sits on the IP network and monitors all billable events and identifies whether any services have been used. The platform captures all usage data from network and service elements in real-time. [Xacct's 'network to business' ('N2B') platform is an interface between back-office applications (e.g. billing, customer care, fraud management) and network elements (e.g. e-mail, routers, mobile networks, VoIP).] It then polls those events and copies them through in a common format known as XDR (extendable detail record) to the billing system for rating. "If the rating has already been applied by the application then it does no more than prepare the billable event for inclusion on the next bill; otherwise it will rate it according to the product code. These costs will include apportionment settlement charges with the application provider." Navigating the maze The impending launch of UMTS services on the Isle of Mann offers some hope that taking all the complexities of 3G billing into account, it is possible to develop and install a comprehensive system. However, it is still early days, and as Manx's Meageen says "service delivery between now and December will really be about feeling the market". The Isle of Mann system may only be a fraction of the size and subscriber base of billing systems other operators will be working on, but the issues remain the same. In fact, testing billing systems on a small scale like the Isle of Mann, rather than deploying large scale operations straight away, is advisable especially considering the pitfalls operators could face. Looking ahead, Geneva's Merrick believes that new market entrants will have an advantage over incumbents, because they will start business without the burden of a circuit-switched legacy system. "They will be able to specify and pick the best components to build systems around next- generation billing. That will help them grab market share from incumbent operators who will take slower migration paths." Geneva has done some trial installations of UMTS billing systems with some of its system integration partners and has managed to get systems up and running in the space of a few weeks. It claims that some start-ups are hoping to launch 3G services later this year. However, the launch of 3G services may not immediately follow network and infrastructure installation. As GBA's Leslie claims, "It has rapidly become clear that the challenges involved with billing for 3G services are not to do with technology advances alone, but a new way of thinking too." Protek's Butcher agrees claiming that many operators have not mapped out an effective revenue model yet. "UMTS services will not come into operation for a full 12 to 24 months after GPRS launch. People won't be walking around with a handset that is capable of downloading 2Mbps in 2002 -- it will be a phased approach." The 3G billing maze is a challenge that operators must face in order to remain competitive and maintain customers in the evolving telecoms market. Like a traditional maze, finding the way out depends on the path operators take -- some may find their way faster, tackling various barriers and facing different hurdles. Although their routes may diverge, finding the way out really depends on developing a flexible and effective 3G billing system. * telecoms-mag.com

To: Eric L who wrote (9986)	3/21/2001 2:20:07 PM
From: Eric L	Respond to of 34857

re: "Club Nokia" - the Nokia e-business initiative >> Nokia's Consumer Club Nokia Strategy Becomes Clearer Simon Buckingham Mobile Lifestreams 21 March 2001 Rumors of Nokia's direct to end user consumer strategy have abounded for many months since the initial announcement in December 2000 that: "Nokia is also expanding "Club Nokia", a value-added platform for Nokia handset users to further leverage the Nokia brand, increase customer loyalty and offer new phone related services." According to new information in press releases issued today: "The Nokia 3330 introduces a new set of features for Club Nokia Members. The gaming capabilities are improved with a totally new game 'Bumper', as well as with new game packs for Space Impact and Snake II, downloadable to the phone over WAP from Club Nokia. Users can send high scores to Club Nokia and compete with other players. Totally new are also the animated screen savers, downloadable from Club Nokia as well. Club Nokia offers exclusive services to owners of Nokia mobile phones in the Europe and Africa region. The Club Nokia web and wap services can be accessed once the Nokia phone is registered with Club Nokia." The animated screen savers feature is certainly an interesting one- Nokia's Smart Messaging standard is competing with Enhanced Messaging Service (EMS) compliant phones from Ericsson and Magcic4 compatible phones from Motorola, Philips and other handset vendors. Now all 3 post text pre multimedia formats support animated content- which is expected to be an area of key appeal to youngsters using the 3330 and other consumer devices. Nokia are yet to reveal whether the animated feature is enabled by a new updated release of its Smart Messaging standard or whether the 3330 simple renders static picture messages in a moving format. Nokia clearly wants to engage with users of its phones in an ongoing dialogue by providing bookmarks containing digital services such as games. lt also to tap into and engage the millions of people that already visit the Nokia corporate websites each month with these kinds of cool services- the Nokia website already features online games and other services. The wider picture is from its CEO's statement today that Nokia is trying to turn itself into an "eBusiness" along the lines of a Cisco Systems in which a a substantial percentage of its business orders are conducted over the Internet- network operators could visit Nokia's extranet and specify their own base station configurations for example. The Club Nokia Consumer Strategy is just a small part of this wider initiative. It will be fascinating to see whether Nokia's consumer strategy will be a success. Microsoft for example has a consumer division running MSN and other initiatives that currently accounts for about 7% (seven per cent) of its revenues. The wirefree Internet looks as though it will be following similar lines to how the wireline Internet originally developed- the telcos such as AT&T moved into the service provision and content provision business but pure play Internet portals such as Yahoo!, MSN and AOL eventually won the battle of the brands thanks to their focus and commitment to this part of their business. A critical success factor for Nokia's consumer strategy will be network operator backlash. It would be interesting to be a fly on the wall when the inevitable call from the CEO of Vodafone to the CEO of Nokia asking him to scale back or can the consumer strategy arrives. But more fundamental to the success of Nokia's initiative is having a clear business model on how they will earn money from their consumer services. This aspect is not yet clear. Whether Nokia's consumer initiative will succeed cannot be ascertained prior to its launch. Congratulations at least to Nokia for having the willingness to take innovate as it continues to try to retain its traditional leadership in nonvoice mobile services as the other handset vendors wake up finally to the importance of mobile entertainment and personalization, something Nokia has been implementing with Smart Messaging for several years. << - Eric -