WWDC2004 Session 720

Transcript

Kind: captions
Language: en
okay well first of all welcome and thank
you for attending this this session and
which is worse to have a panel directly
before lunch or directly after lunch but
hopefully we can we can keep you awake
here so as Frank Casanova talked about
in his digital media so the Union
presentation yesterday mobile videos is
really an exciting new opportunity for
for Apple and QuickTime with QuickTime
support for the creation delivery and
desktop playback mobile video standards
like three GBP and 3gpp2 we are a
leading provider of mobile video
infrastructure and technology and we're
working with a number of operators
worldwide on both the development and
deployment of multimedia services so in
today's session we're going to step back
a bit and take sort of a broader view of
the marketplace we have some experts
from various different leading companies
within the mobile universe and they're
going to take us through sort of their
unique perspective on the market drivers
that are helping to shape this this
marketplace and turn it into a reality
so first up we have David Bernanke with
18t Wireless we have Eugene Sarmiento
from Ericsson and last but not least we
have Gabriel sent home from France
télécom R&D so in terms of the format
they're each going to take you through a
presentation we could hold questions to
the end then we will go through some
questions we're actually a little bit of
demo in here as well so hopefully
that'll that'll deal with the after
lunch doldrums but that's that's
basically it and I'll open it up to
today thanks man german thanks everybody
hopefully I won't bore you too much I
wanted to spend a few minutes and give
you some background around the evolution
of data services and the work that ATT
Wireless has been doing in this space
and talk about some of the opportunities
that exist for leveraging some of the
convergence that we're seeing of
capabilities so you know all the
analysts have lots of reports around the
importance of wireless data and while
they vary on what they think how big the
opportunity is I think that are all in
agreement that it is pretty substantial
you know this is the u.s. forecast
through 2006
team forecast for mobile commerce in
Europe for example saying that just for
mobile commerce alone the forecast
there's five billion dollars and this is
a data revenue forecast so we're pretty
excited we think there's a pretty
substantial opportunity here and it's as
important to us I think it's important
to most of the other operators in that
data is our opportunity to reverse the
revenue erosion that we've seen
happening in terms of decline associated
with the pricing of Voice Minutes and
services around voice and a good example
of this is on the voice side the
opportunities to compete are relatively
limited there's only so many
permutations and voice bundles and
minutes that you could create to be
competitive and it's always a game of
catch-up okay they've got nights and
weekends okay now we got nights and
weekends so come over dressed so it's
just a mad dash of customers running
back and forth between different voice
plans so we back in 2001 we formed a
division within 18t Wireless called the
mobile multimedia services division as a
part of our investment agreement with
NTT DoCoMo and we realized early that we
wanted to make sure that we could get
ahead of the data game and really move
the differentiator or a from being
priced competition on on voice to being
data services that our consumers would
value and that would have provide some
stickiness that would keep the customers
with ATT Wireless so moving away from
the value that you would see in how many
Voice Minutes you have or what plan you
have to being able to look up the latest
sports court while you're on would go
being able to check your email from your
phone traveling to San Francisco it
should be nice to know we're a good
restaurant to eat is or even find
directions to the hotel
so we started this little M mode data
experiment way back in the mid-90s when
we used to call it pocket net and that
was back when there was lots of hyper on
the quote-unquote wireless internet I
think those two words together back in
the mid-90s were kind of an oxymoron
since there was really nothing internet
about seeing a 5-line black-and-white
LCD display trying to communicate what
was on the internet running at 9.6 414 4
kbps wasn't necessarily a very
compelling experience but it was a great
opportunity for us to get our feet wet
and learn some lessons and some of the
important things that we we picked up
through this was obviously devices
matter you know back then it was a big
clunky Mitsubishi or Sony Ericsson phone
and while it was pretty advanced in it
today I'm looking at the wireless enter
it now I'm pulling up my antenna and
waiting for it to connect was a rather
underwhelming experience unless you were
pretty patient individual and also other
thing we learned there was content
matters our approach then was a walled
garden approach where we said you can
have unlimited access to the wireless
internet but it's the wireless internet
that we give you within our garden and
back then there weren't a lot of
applications or services that were
necessarily enabled or could be easily
converted for application and use in the
wireless space and probably most
importantly one of the things that we
learned through this is it's really
important for us to focus on the
environment and what your customers are
going to use the services it's not
really practical to expect someone to
pick up their phone wait for the
connection to happen to try to look up a
phone number when they're competing with
Voice Minutes and all that to do is all
for one one or call somebody to get the
information that they're looking for so
I think one of the most important
takeaways that we had I think it was
important for folks to understand as
we're looking at creating more advanced
services whether they be multimedia
services or applications or any
application that they think they would
like to bring into the wireless space
that it needs to be relevant for the
mobility in scenario and environment and
be relevant to the timeslice because
that's really what it mobility is about
it's about I have a few seconds I have a
time slice of availability to be
entertained or client information or
connect to those that are important to
me
so we launched m-mode in early 2002 when
we were in the process of rolling out
our GPRS network nationwide and at that
point we had hundreds of content
providers we had lots of applications
Java applications ringtones you could go
to nineteen different places and get
news and it was like walking into
Walmart and having never been there
before and just having rows and rows of
aisle to step to look for and not really
knowing how to find it so one of the
things that we did in 2003 is rebuilt
that whole new and mode data service and
what was really important here was we
really were trying to focus on again at
the point I made earlier about it being
relevant to the mobile experience
there's some extensive customer
interviews and research and working with
a leading design firm here in San
Francisco we relaunched a mode we made
it and we launched it last we launched
it last November and what was really
important to us was needed to appeal to
the mass-market not to a Propellerhead
35 year old person like me who was
patient enough and understood the
complexities of trying to by phone
figure out how to launch a browser get
all the settings correct and make it
work because our real goal here was to
drive daily usage we wanted this to be
something that was important part of
people's lives and we wanted to be
invest in class service through work
that we're doing for content partners to
make sure it was compelling content and
it was meaningful and up to date so
today we have over 260 sites and
applications available through a mode
these are range anywhere from repurposed
Internet content or sites that have been
rewritten or have a mobile version of
their content such as some of the new
sites Google and others as well as
applications for download primarily a
lot of Java content available for phones
and additionally we even today still
already have some sites that are
providing streamed content on the GPRS
network so what some of the questions I
get from a lot of people is well how
does this whole end mode thing work for
me or the developer or content provider
somebody wants to create an application
and bring it to market we at agency
Wireless and through our mo platform we
don't post content we don't have big
servers in our data center aggregating
lots of job applications for people to
connect to and download and bin them
what we do is we follow very closely the
NTT DoCoMo's iMode model where M mode is
your portal your connection to those
content partners and providers within
our sphere or without we don't prohibit
our consumers or customers from
connecting anywhere they would like to
but for those content providers that
work with us they can have reach into
our entire customer base without having
to have an individual billing
relationship so it makes it really easy
for our content partners to bring an
application to market and to be able to
monetize it without having to worry
about how have to print a bill have to
figure out how to do all these
transactions with the customer because
we have a very flexible mobile commerce
platform that we've put in place to try
to take that burden off the content
partner so I know you're all probably
one in a while this is really cool what
does this have to do with the mobile
video or multimedia or QuickTime well
bear with me and I'll get there because
what we are constantly doing is we're
refining our platform and looking to
deliver new applications and content
some of the new examples of new
applications that we've recently
launched are the mobile traffic
application so that in over 70 cities in
the country you can pick up your phone
and within two clicks if you subscribe
to the application in your phone see the
traffic conditions so logical evolution
of this would be boy it's really nice I
can see the traffic conditions and I see
that there's a backup here but what
about the traffic cam associated with
that so there's a lot of natural
extensions that our multimedia
capabilities and devices and in the
network could enable to extend
applications like that we see the same
thing with some of the other
applications with news with games with
movies and movie trailers that we are
continually working with our content
providers trying to help them understand
what capabilities we have in the in the
devices and in the network and and our
billing platform to help them bring
these applications to certain services
to market
so we've seen some pretty substantial
success that we're really excited about
we hit in 2003 we crossed over the
million subscriber mark 4m mode
these are million active users and we
see on average seven to eight dollars a
month of revenue for those users in
addition to their voyage revenue so if
you remember back to that previous slide
I put up we're really seeing data
revenue reversing the decline there and
we see advanced applications being a
providing us a tremendous opportunity
for both ourselves and our developers
and content partners to continue that
trend so I talked a little bit yesterday
when Frank's keynote I mentioned 2004
being the year of convergence some of
you may have been there heard me make
that comment and some of the trends that
I see in that we see is a DAT at AT&T
Wireless and with our partners is three
key areas that are converging in the in
this year and the years to come and some
of these enables were already here so we
launched our edge Network last year we
completed the deployment nationwide so
edge if you're not familiar isn't an
advancement or enhancement to GPRS and
GPRS was the data standard that gsm
employees and I'll show a little network
evolution slide there but this allows us
to provide customers with devices that
have the capability to access data at
rates up 250 kilobits per second with
first up to 200 so the networks are
getting their new devices one of the big
challenges to delivering richer
applications was device capabilities we
had years ago Frank and I mentioned
going to Asia and seen demonstrations of
mobile streaming over wireless networks
and you know one of the big inhibitors
and challenges was devices we didn't
have enough devices that had the
horsepower to stream the video didn't
have the big enough color displays to
actually render it in a format that was
meaningful to customers and then there
was a battery life you know I walking
around with five batteries in my pocket
so I can you know watch 15 minutes of
video wasn't really compelling
experience and of course new types of
applications some of those which I've
showed you and
that will take advantage of and use this
capability but more importantly are the
tools that are needed to to bring this
these applications to market and three
years ago a Content partner of ours
would have been forced to say okay I
want to deliver rich content to my
consumers how am I going to do this well
I could go out and buy a real server and
pay for lots of hardware and lots of
licenses or should I use packet video
but if I use either of those then I have
to work with the device manufacturer to
make sure they're putting the
appropriate hardware codecs and
everything into them and there were a
lot of hodgepodge of standards standard
we're evolving and weren't quite there
yet but this year I think we've really
seen the standards turn the corner and
that we're actually seeing these
capabilities in standard compliant
capabilities implemented in tools and I
think what apples down with QuickTime
and the tool set there for content
authoring and creation it's a perfect
example of that it's that easy to create
your content author and deliver it to
the device so devices there's a whole
plethora of devices you walk into any of
our stores or competitor stores you have
a wide variety of devices to choose from
on the consumer side from smartphones to
camera enabled phones to music capable
phones to gaming devices some that have
been successful some not so successful
I'm sure some of you probably been to
that favorite Nokia non Nokia site side
talking comm where she lots of people
talking on their taco
so there's definitely been some lessons
learned by in both the operators and the
device manufacturers on the NFI side we
offer a pretty rich array of devices to
support our enterprise customers access
to their corporate data applications and
email in a secure manner both through
devices as well as PC cards and working
with various OEMs to ensure that the
capabilities are baked into the device
at the factory the network evolution has
been a really interesting journey for us
as I mentioned we launched two GSM and
GPRS and completed or build-out in late
2001 and that completed our GPRS
deployment last year we did an upgrade
nationwide across all of our network
which took us to edge which takes us up
to 384 kilobits per second aggregate
throughput and again that varies by
conditions and
as capability not every edge device is
going to be configured by the
manufacturer to take advantage of all
the throughput but on average the newer
devices such as the device I'll do a
little demo on this Nokia 6620 is a four
time slot edge device it's a class 10
device for those of you who may be
following the some of the wireless
standards but what that means is I have
the ability to access data at speeds up
to about 120-130 killers kilobits per
second that's pretty cool considering
I'm mobile and for the PowerBook users
in the audience this is the greatest
wireless modem I ever had because I just
turned bluetooth on turn bluetooth on on
my laptop and I'm connected blow dial-up
away and and now with improvements we've
made to our network it's accessible just
about everywhere we also announce that
this year we would be deploying the next
evolution on the GSM data path and that
is our move to wideband CDMA or you may
have heard it referred to as UMTS we
will launch UMTS in four cities this
year we've launched there ready it's
available in Dallas that was our
original launch city that we were
testing in we'll watch it in three other
cities this year and then some of you
may be familiar with the fact that we're
being acquired by singular and singular
has announced that they will be there
fully committed to UMTS and will be
launching the MTS nationwide as well so
we're really excited that the bandwidth
is increasing and there's a pretty
robust evolution path that takes us to
HS that's a actually misspelled it
should be DPA and expands for high-speed
data packet access but it's just the
next evolution in the gsm/gprs data path
so what does this edge thing I talked a
little bit about it but what's great
about edge is we rolled out edge and all
we had to do as a software upgrade to
our network we didn't have to go out and
replace radios and roll trucks and have
forklifts and edge is essentially just a
new algorithm that takes what was
previously required three data time
slots in the GPRS world and condenses
that into one one time slot an edge
which
is really important to us because it not
only it frees up capacity on the data
side frees up capacity on the boys side
so it's a big efficiency improvement for
us so what does this mean to services
and what does this mean to those folks
who want to create multimedia
applications and deliver those letting
see the evolution here I talked about
GPRS we have pretty excited when GPRS
came up but the reality is on average a
GPS device supports around 30 kilobits
per second which means you probably want
to do a typical video encode at around
24 kilobits per second and streaming is
probably something a lot of people would
avoid under GPRS unless you were doing
some lower quality a.m. quality audio
streams but it was good for cooed video
or more of a slideshow or download and
playback scenario with edge we've seen
significant improvement and edge is
substantially better in that we get
really good quality streaming for video
for audio you can have a pretty decent
experience with AAC of 32 K or 64 K
encodes an AAC work really well streamed
over edge you know pretty decent FM
quality and big benefit we get is the
latency is much improved that was one of
the biggest complaints we got from a lot
of folks with that's great you always
have an always-on GPRS connection but
the latency is really painful edges
substantial improvement in latency and
that's really important when it comes to
applications and then moving to UMTS we
have really excellent quality streaming
even lower latency and a typical video
encoded around 128 kilobits per second
provides a pretty compelling experience
so we're really excited about the
capabilities that are can have converged
this year and we're excited about our
partnership with Apple and the work that
Apple is doing to enable folks like
yourselves to create content and deliver
this content without having to figure
out am i delivering is the desktop
how do I encode this what are all these
standards that's the beauty of a
QuickTime and the offering tools is I
just select I want to export it and I
don't have to be the rocket scientist to
figure this out and it really works
recently a little side story here Frank
okay make fun of you not really no I
won't make any comments about your shirt
or anything because Franken ELISA were
recently up at our offices we were in a
meeting and I was introducing Frank and
telling them that you know this Apple
jobs just a distraction because Frank's
really a musician and he mentioned his
website to us well while we were sitting
in the meeting I brought that to the
Apple web Frank's web site downloaded
one of his video clips of him jamming
out with some famous guitar players put
it into QuickTime exported to 3gp and in
the meeting I streamed it over to my
phone and showed everybody in the
meeting that's how easy it is and that's
how easy Apple's made it so with that
I'd like to conclude with just a quick
demo so we're going to Benjamin what we
did is we took some movie trailers and
we encoded them and put them up on their
Apple QuickTime streaming server what
I've done is I've got a session queued
up here I'm going to connect to the
server and we'll actually stream the
alien vs. predator movie trailer over
the edge Network and if the demo gods
cooperate with him he will actually see
it working so let's see dawn over here
this is a two-minute clip and I could
let it stream and trim and I would get
about a Meg and a half worth of data
moves through the network so as an
operator I get pretty excited about the
customers moving on Megan half the data
obviously we have data plans and
arrangements available to our consumers
that make that affordable to them so the
best important as well and I don't know
necessary that someone wants to watch
the entire two-minute video clip which
is a great example of how easy it was to
take very rich content on the desktop
and convert it and deliver it to the
mobile device so that thanks thanks
thank you very much just a technical
expert I'm using a quick testing server
and the content is created using that
client happens to be a pack of video and
we were the number of compliant clients
yeah these devices come with the real
player on them which supports 3gp but
doesn't prevent anybody from downloading
other players that's the beauty of
having a device with an open operating
system and the pack of video player
works really well as available across
other devices so the operator we don't
have bias toward one one player or the
other our biases towards standards and
our biases towards great customer
experience thank you thanks okay so
coming in the next from Peter
in your structure perspective we have
Erickson he's going to talk to you a
little bit some of the some of the other
components that are involved in
delivering rich media to a handset we
play a very specific role that we are
the streaming engine that delivers
content to the handset but there's a
whole bunch of other stuff that has to
happen before that like billing and
authentication and that's really where
where Ericsson plays a role and we've
been working together to ensure that
both of our standards based solutions
work forth quite closely together so
with that
Thank You Benjamin can I borrow this
sure whatever so good afternoon
everybody first of all I'd like to thank
Apple for giving Ericsson this
opportunity to address the developer
community that you have and to give our
insights on the convergence of mobile
media we've seen already a lot of things
that I might be repeating but I'll try
to add the the world view to this in
terms of what we see in mobile media
from the holistic perspective to start
off my name again is Eugene sarmento I'm
a product marketing manager for Ericsson
I've been working with the streaming and
download solution from Ericsson for the
past two and a half years working with
with the global operators trying to push
them towards this mobile and major
convergence now the slides I'm about to
present to you will mainly cover three
main areas first of all what
opportunities we see in the mobile media
space what's Erickson's role in this
space and finally where the key success
factors that will you know basically
take what we have now into a full-blown
service earning millions or billions of
dollars so the first question I'd like
to address of course is why will mobile
when combined with media be successful
so what's so interesting about the
mobile network that you know will allow
for better services of media content
well was as a as a start off what I've
put on as a slide is of a huge number of
mobile subscribers that we addressed
today with 2g 2.5 g and 3g networks as
you can see in 2004 we have roughly 1.3
billion subscribers that are covered
with mobile phone technology
now this 1.3 billion subscribers are
potential subscribers for media content
and we see another billion of growth
within the next four to five years
so that's amount of potential revenue or
potential customers that the mobile
media industry will have we see a lot of
growth in countries such as re in a in
areas such as Asia Pacific specifically
talking about that say China and India
we see in China alone a growth of 5
million subscribers per month right and
in India we have roughly 2 to 3 million
subscribers per month and we see the
same growth in Southeast Asian countries
such as the Bangladesh Pakistan
Indonesia and the Philippines all having
a total let's say a total population of
100 million each and at this point in
time they're only at they only have
penetrations of 14% so there's still a
lot of growth out there and what you can
see is the penetration of mobile phones
is much much more than what there is for
the web today it's much more than the
TVs and what you can see also with the
number of phones that are coming out
there's more picture messaging
capability that are that are coming out
then there there are digital cameras
that are coming out so we see you know
all these factors as key points in
making mobile major successful now the
first thing that I'd like to address or
ask is what's so different what's so
different about mobile technologies well
I can basically sum it up in two things
the first thing is that it's very
personal the mobile phone is the only
device that you have
where you keep very personal information
if any of you have mobile phones with
picture capability a big probability is
that you have your family's picture
inside it you have credit card
information or password information as I
have it and basically this is the only
device that you keep right up to your
face no other device has that capability
and that would mean that you could push
content to the mobile phone anytime
anywhere and you know we always
emphasize in Ericsson mobility mobility
mobility because that's actually the key
for mobile mobile technologies so it's
the person personalization factor of
mobile phones the second part to that is
is that users are willing to pay for
content on a mobile phone this is
something that's very different from
internet or web technologies because
it's very difficult to have the user
perception that the Internet is a secure
way to pay for content although it's
taking off in with Apple's iTunes it's
taking off with real networks and a lot
of music downloads you see from the web
it's still easier for a user with a
mobile phone to pay for that content so
we see that as a big potential or a big
reason why mobile networks are so
different just to give you a small
example I saw American Idol at home
because my mom comes from well my
brother comes from San Francisco and you
know there was - I come from the
Philippines as well and there's two
contestants there that are have
philippine background and so when my mom
visited me in Sweden first thing she
said was oh do you know about the
American Idol
that's like what's that and so she
starts streaming you know using our
wireless LAN that at home she starts
streaming showing me oh these are the
singers now I think she would have done
the same thing if she had that
capability on her phone you know if I
was on the train going I think it was a
four months ago I was going
to an office in Atlanta and there is
this guy was just talking to me about
Michael Jackson's trial and then his
mother called is like Oh have you seen
the latest information about Michael
Jackson and what's happening there if he
could have sent him a link or a
telephone number to call to show him to
show her that I think she would I mean
he would have you know shown me that
Christmas at ACC huge here's what's
happening with Michael Jackson so
there's a lot of potential for mobile
media and 3gpp has seen this potential
has standardized codecs as well as
protocols to make sure that streaming is
available on mobile networks I think
they're forecasting roughly six billion
dollars worth of revenue in five years
from now
so that's 2008 so that's the first
reason why we think mobile media is
successful but there's growth drivers
and our colleague from AT&T has already
mentioned that one of the growth drivers
is the technologies that we have right
and what technologies that we have today
and in in most of the world is 2g
technologies where you have up to 28
kbps right if you've monitored how
Vodafone is addressed mobile media
content on the 2g space since there's
very limited bandwidth they don't push
or they don't provide streaming
applications as their thrust or as their
core services they're looking at
download services because then you would
have the quality of the video even
though the bit rates are quite low on on
these 2g networks but we've seen a lot
of the operators in 2003 move into edge
which have 64 to 144 kbps capabilities
one of them is AT&T and there's roughly
76 operators around the world who have
edge and have launched edge in 50
countries so now we have the network
technologies with huge bandwidths to
deliver mobile content so these are
growth drivers for for mobile media
services and then there's 3G which is 3
84 K with 2 megabits and finally for
3G evolved which was HSDPA as here as he
explained it 384 to 15 megabytes per
second I saw a session yesterday talking
about h.264 and other that stand that's
already been or it's being introduced in
3gpp and you know there's a lot of hype
on that and there's a lot of activity in
making that codec available for the
wireless handset and I think if you have
phones that have the not just 64,000
colors available but millions and
million of colors then you have almost
DVD DVD quality in 3G networks okay so
what else do we see we also see since
there's a lot of bandwidth and the
operator networks we see that the
revenue potential for mobile data is
increasing year by year this this figure
alone is is from q2 2002 to q4 2003 and
you see five percent increases in in in
the operators revenue in their in in the
revenue that they earn off of data and
this has moved up from roughly 10
percent to roughly 30 percent and that's
quite a big number for them ok another
driver for mobile media is as as you can
see here is the handsets there are a lot
of handsets coming out last year when we
were trying to set well two years ago
when we were trying to sell streaming
technologies I couldn't find we couldn't
find handset so we had to hire
application developers for 8 clients put
in the eye packs connected to a GPRS
phone and then stream content but that's
not the case today
ok you have all the big brands all the
big terminal manufacturers Sony Ericsson
Nokia Sonya LG all these Japanese
terminal manufacturers coming out with
phones which have video call
capabilities content streaming
capability capabilities download
capabilities and this is driving the
mobile media market
well okay so now that we we have a
handset so we have the bandwidth the
next thing is of course for operators to
take both and offer mobile media
services to the customers and what we've
seen is there's a last year it was more
marketing for Yenta a lot of operators
said okay we have streaming capability
but not really fully launched it so it
was more a marketing campaign that they
have that capability were first and
basically we have a service up and
running but we've seen services like TV
to the mobile video on-demand video
telephony services I'll just give you a
short example in in in Italy and in
Sweden they have a service called Big
Brother Live has anybody heard about Big
Brother here no stay there my brother is
a reality TV show and basically a group
of people stay in one place they live
there and they have cameras everywhere
what they did in in Sweden is they had
six live feeds of content Plus on-demand
content and a director's cut of course
the director's cut is the most important
aspects of this whole whole show and
they were able to generate roughly
50,000 streams per week and these
streams were to 1 to 2 euro each time
you access it so you know it generated a
lot of money for one show ok and this is
not the only thing that's picking up
we've also seen what we call the master
tone download service that's been
picking up here as well in the US but it
is very popular in Japan especially with
KDDI they have roughly 7 million
downloads of ringtones per month and
each ringtone download is one dollar
each so that's 7 million dollars every
month right in the US Beyonce launched
her song and with this master tone and
you could download the Beyonce song and
what you what what it generated was 1
million 1 million
1 million downloads so that's roughly a
million dollars so apart from that we
have the do telephony services where you
can call people have video video video
to the contrary conferences but also you
have the possibility to send numbers and
with these numbers stream content and
what advantages that have of course is I
could push a special number to you and
you would dial up through this number
and access specific content ok so what
else have we seen as you see all the big
operators such as Vodafone to t-mobile
with their teas owns NTT DoCoMo with
their I mode they're all looking at
packaging services and integrating that
to the handset ok it's all about the
personalization quickness to the to
access that content and in terms of the
services that Ericsson has launched with
our operators we've done live TV with a
lot of the Hutchinson companies for
infotainment services we've done a lot
with Telefonica we've done a lot with
Amana smart tone we have a traffic cam
service I think you were talking about
the picture based traffic cam we have
streaming based traffic cam services and
in Hong Kong where they have certain
streets that you can select and find out
what the traffic situation is but of
course the the most mature markets will
always be Japan and South Korea where
they have in specifically for South
Korea they have roughly 400 different
channels and they earn roughly seven
point five u.s. dollars per month on top
of their previous ARPU because of these
streaming and download services okay so
there is an opportunity and what we
would like to do is you know have a
special role in the mobile media space
and what is that role first of all we
address our customers needs and who is
Erickson's customers it's mainly
operators AT&T Orange Vodafone t-mobile
these are
customers and what we provide to them is
end-to-end solutions for
person-to-person services as well as
application to person services okay
person to person being sms/mms video
call right instant messaging as well as
voice over IP over wireless all right
apart from that we're also trying to
bridge the gap between the media
industry and the mobile industry
although AT&T is quite advanced in
having a lot of partners a lot of
content providers already having access
to the mobile network and to the mobile
clients there's still a lot of operators
out in the world that don't have that
relationship they don't know what the
content content industry is doing they
don't know what your competencies are
they think that oh maybe it's the same
thing as voice and I'll just wish you
know find my luck in this service and
then they fail so there's a lot of
things that we would like to do for them
and one of the major things that we
would like to do is aggregate content
and aggregate applications and this is
quite important for us and we have a
initiative called mobility world mainly
target mainly targeting content
developers application providers and
bringing bringing them in to our
portfolio right testing them verifying
it and then saying all right this is a
verified application it's a cool service
and we'd like to take it to market and
so that's what we do now we aggregate
applications we do a matchmaking and
tell the operator right which one do you
want
is it the live traffic-cam service is it
the music download service called EMU's
this is another service we provide and
then the operator selects from these and
we sell it as part of our portfolio okay
so that's what our role is and again as
I said we provide person-to-person and
application to person so what's
Erickson's offering mainly to our
operators we cover handsets from Sony
Ericsson as well as Erickson's
about platforms which is used by
terminal terminal six terminal providers
we provide access networks which is
routing radio base stations wireless
networks we have core networks okay
switching infrastructure service
networks which is basically enablers and
we have content and applications as part
of our portfolio and apart from the
hardware software infrastructure that we
sell we provide services to integrate
that to manage it and if necessary to
host it because we've we've won a lot of
outsourcing deals when it comes to
supporting wireless networks so we think
that we can take the next step towards
the convergence of mobile media and our
strength in the system side from 2g 2.5
g and 3g along with of course apple
because apple enables the whole
end-to-end flow without the authoring
without them supporting 3gpp it would be
very difficult it would submit the
market right so I think that the you
know our competencies in the wireless
network with apples content authoring
tools to streaming distribution
platforms you know when you tie these
these things together you have a very
good story and they're very good
offering for our operators ok so I have
two more slides and basically this one
is so now with now we know that there's
an opportunity we have a specific role
that we've taken as Ericsson and how do
we make it successful there's two
aspects to it there's the user aspect
and then there's an operator aspect from
the user aspect we need to make sure
that it's easy to use it's easy to pay
and it's relevant for the user and we
have a lot of initiatives that focus on
these three areas from the easy-to-use
aspect we have an initiative called zero
one two three which is no manuals so
zero manuals one button to access
Internet services such as that say T
zone service or an AT&T service and two
seconds to access the content that I
want and
maximum of three clicks to find that
content so that's zero one two three and
on the side for relevant relevant
services how we address that of course
as I said is we have mobility world
where we collect the best services
around the world and we resell this to
our operators but apart from that we do
ConsumerLab consumer studies we ask the
users what services do you want right is
it a peer-to-peer service is it an email
service is it a video call service and
these are things that we collect right
and that after we collect it we create
packages around that and then easy to
pay this is one of the things that we
really need to consider because at this
point in time a lot of the operators are
missing the growth they should be
getting because of the high prices they
put in on on the data I think it's
averaging roughly twenty to thirty
dollars per megabyte of data okay so we
need to make sure that the packages are
there or we have the capability to do
either subscription-based charging event
based charging or time-based charging
then finally we have the operator
aspects which is platforms and handsets
and application and content so these are
things that if you tie everything
together we'll make mobile media
successful so as a summary the mobile
net network offers great opportunities
for both you us because we sell systems
and the more traffic that goes in there
the more systems we sell Ericsson is
leading the way and we'd like to invite
all of you you know to if you have
bright ideas if you have applications
that you'd like to take a market we have
the mobility world forum to to take that
to allow you to take your applications
to market and finally the key to success
for mobile media is basically exceeding
user expectations it's about the user
it's about the user and it's always
about the user all right so thank you
thank you very much that was a great
presentation and not excellent choice of
hardware enough architecture slide
coming up next we have Gabrielle lucidum
from Franklin telephone Arne Gabriel and
France Telecom are in a unique position
and not only are they one of the lead
mobile operators in the world but
they're also one of the lead broadband
operators and they actually have a R&D
facility here in the Silicon Valley and
I think you know Gabrielle's role is to
be the liaison between what's what's
going on in the Silicon Valley and then
spreading that throughout all the france
telecoms operations worldwide so I'll
hand you the clicker all right thank you
so a couple of hard acts to follow so
I'll try so I wanted to start first by
introducing France Telecom just to set
the context where we're coming from
where we are today the kind of
challenges we're facing and then move
into our take on the the wireless data
space ok so we're we're a global group
present on five continents we have about
117 customers worldwide 117 million
customers worldwide and we have a some
global solution through strong brands
and they're listed there we're pretty
much a leader in most of our markets and
we have both multinational and
fixed-line solutions so these are our
brands we have orange which is our
wireless carrier one I do which is our
internet provider ich want is a
corporate provider global corporate
provider with about 200 220 countries
basically there's an airport ich want
will be there and then France Telecom
which is the brand you see in France and
then TP is a is the the Polish carrier
which we owned so where we those are our
two major fixed
properties now it's interesting because
this first of all if we go back six
seven years we're basically a fixed line
carrier you know doing phone doing some
basic data and in the last six years
through acquisition and growth we've
become a full-service provider and to a
certain extent this has caused giving us
opportunities caused us some problems of
course integration and so on but one
thing that's positive and all that it
has given us the view that we treat our
clients across all those different
contexts so for us it's really important
for us for the kind of in fact were
organized around client context the
client when he's with you at the
enterprise the client when he's at home
the client when he's in his personal
sphere that is in between those two so
our approach isn't so much to say okay
what are we going to give him when
they're you know what's our fix the
services what's our internet service
what is our wireless service but it's to
treat the customer as a whole and pretty
much sure of the different context that
that client finds in something market
position so if we look at the in France
in UK we're a mobile phone leader we
have about 47 million customers for our
wireless property internet access we
have about 10 million 10 million clients
and about a quarter of them have
broadband access which is probably not
impressive for the US but you know it's
a pretty good good good good rate for
Europe and we're a fixed service leader
in France with about half of 50 million
customers so basically half of our
customers or fixed customers and half
are our mobile customers
and so you know these are the we use so
we have the three major properties that
we have a distribution division that
distributes the the products and then
and that's very important in order to
reach that sort of to be able to meet
our clients context and then we have a
network organization that provides the
infrastructure to our business units so
let's talk a little about who we are in
terms of annual results so we're about a
forty seven billion euro company these
were the revenues for 2003 re bit about
seventeen billion operating results of
ten billion and a net income of 3.2
billion now last year this is a to show
the improvement over last year over last
year we turned ran into a debt problem
and have come out of that sense and a
lot of the debt issues that the carriers
were facing at least in Europe were due
to some investments that had to be made
for 3G licences so we're very interested
in monetizing these investments they
made in terms of R and D we have a
worldwide about 3,000 engineers and
scientists in R&D unit's makes us one of
the larger R&D units in terms of a
European telecom company in 14 sites
last year we had about 600 million euros
dedicated to R&D we owned about 6,000
patents including patents for mpeg-4 and
patents for ATM and in the last few
years we've created about 15 spin-off
startups from our R&D unit so these are
engineers and business people came up
with an idea and then it was
I know one company you might know is an
vivió who's in the mpeg-4 space in terms
of our team missions here in San
Francisco so one is technology transfer
the identification of technology
technologies and new business models
especially and then transferring those
back to the business unit visioning of
new cutting-edge concepts that is
developing either a mock-up or a demo or
prototype as as their needs are require
developing IP and inventions integrating
doing an analysis of the impacts of
technology integration into our network
unit development and management of
partnerships and then doing a sort of
operational support of our be use in the
US we have basically to be use in the US
one is equal and the other one is a
company called cold-cast which is a
satellite services provider anyways I'm
not going to go through through this is
basically this is our process in terms
of detection of new technologies
validations and implementation and then
a handoff an operational handoff and
then just keep doing that over and over
again what are our kind of key practices
right now they're wireless
communications and services the digital
content management web services identity
and messaging broadband and network
engineering emerging technologies and
advanced IT one of the sort of the
conclusions that we've come out come up
with is that as an operator we need to
move from being a transport carrier to
being an inter mediate ER for our client
and so that will as we go through the
presentation you'll see what that what
that means but that means really being
in a position to for example manage the
clients preferences and their context
and their identities
if so required and then because I think
the the future isn't so much clients
looking for information anymore
I think clients are going to want
information to find them based on their
where they are based on the context
they're in you know and so on and I
think that that that changing those two
words you know instead of clients
finding information but basically
information finding them it structures a
lot of what an operator traditional
operator needs to do to move on and
succeed because the face of transport as
a business is not it's not the future
that's a very mature product of the true
mature market IP you can become an IP
carrier with a very very low cost today
so they aren't the usual barriers of
entries that we saw ten years ago okay
so now let's move into a little of the
market positioning in terms of our of
our Wireless business so anyways I just
wanted to remind the remind you all of
the 47 million customers so what's going
on in the market right now we're in the
3G launch the official launch is is
slated for fourth quarter of this year
right now we're bringing up about one
city and france per week so it is in
test mode so we're testing a lot of the
interoperability we're testing a lot of
the device management that we can do and
of course looking at the users and
making sure that what we're providing is
is well integrated with the other
services we're providing in terms of to
A to G 2 and 1/2 G basically we want to
there is a growing customer base still
and growing our PU and so we're bundling
voice offers with some basic data
services there's significant pressure
from the regulators to open up our
network and provide MVNO services which
for us could on one hand is a source of
revenues and people like sprint have
done real good business with providing
these MEMS MVNO capabilities other hand
it does lower the barriers to entry into
market it allows people to come in with
more with integrated offers so it allows
a content creator some of the owns
content to enter the market and be able
to provide a bundle service we as a
traditional telecom operators have
really not gotten into the content
business almost stayed out of that
because you know we were very careful
not to cross certain certain of the
boundaries and in the in the value chain
so it provides some issues we have to
deal with but on the other hand it's
clear for us that it also means that we
just have to be much better at
partnering with content providers in
order to be able to play in this market
and then of course as we've all heard
image music games value-added services
that were going to be bundling with a
voice so here's what's going on with the
take off so the launch take off mass
market you see by end of 2004 were
pretty much at least for mobile TV and
video downloads and video and MMS and
photo MMS will be achieving sort of the
we'll be getting past the take off stage
and getting into the mass market and in
the next year having video phone and
blog broadcast video being launched
these are so in terms of the what's
going on in music these are some of the
offers in in the European companies of
love of ringtones so on average the
price of a ringtone is about three and a
half euros in Europe so that's one thing
that probably is a in contrast of the US
market is is the fact that people are
paying more for the for the ringtones
it's a it's an interesting market
because it shows the value of I mean if
you think of it you could buy the song
for $0.99 and then edit it out and then
you know take get the ringtone but it
shows that the value of having a service
you know that's perceived as being
different than actually buying the song
so in terms of the music okay so we lost
the references here okay I'm sorry so
what you see here is the the responses
of customers in Italy
the blue is UK and then the green is
Germany responses to and then we don't
so these would be a yeah we lost the the
index here so it was on a scale of 6 and
so that shows you the the percentage of
the people who said yes or no so as you
see of most people agreed with
downloading being something that's free
that people aren't willing to pay for a
service to download they might be
willing to pay for the content but not
for a service that allows them to do the
download they also think it's a way it's
a first step in perhaps sampling a CD
before they buy it what we've seen you a
big difference in UK versus some other
European countries is that UK kind of
like the customers like to pay as they
go as opposed to having a flat fee and
all-you-can-eat type of model said that
that was very interesting in terms of
behavior and and basically a
basically and AB people were on either
side of the scale as to whether
downloading was something that was
useful or appropriate given their
current terminals to stay on the music
so this is as we see what's happening in
the music market one is transmission
speed of the network increases and then
you get more powerful telephone and in
memory so started probably a couple
years ago with the monophonic rate rings
in Japan moved on to polyphonic rings
and what we see is as we implement 3G
the ability to have integral songs being
downloaded that is being able to use
your your wireless phone as an mp3
player and finally to look at the games
we we see a huge growth in people you
know downloading games to their to their
mobile we did a serve in and although it
was a significant differences it seems a
small difference but of the people we
surveyed 15 percent said they were ready
they saw their mobile phone as a way of
playing games as opposed to 11 percent
who had gaming platforms portable gaming
platforms now that could be also I think
that's probably a particular
characteristics of the of the European
market so in terms of some of the
conclusions I think that one we really
see that this is the way to to to
valorize work because let's face it
voice is still the killer application on
any type of wireless network and in fact
3G actually makes voice more efficient
and it's probably a value proposition
that's more more more appropriate in the
US where as you as you upgrade you get
better quality on your voice
second thing the point is very important
because I think that for us the it's
user created content that's going to
make this market take off and not
necessarily just professionally created
content some point I think we're going
to see the same phenomena we've seen
where people use a service a lot for the
first year and then there's a drop-off
I think what's truly going to have the
stickiness is when users can integrate
their own content with professional
content or just create their own content
and and be able to use it and display it
on their your phone of course that also
means that there needs to be some
developments in the metadata field the
fact is being able to capture in real
time metadata I think that's going to be
one of the source of innovations in the
years to come as well
you're indexing strategies of that
metadata and how you correlate it with
user preferences in order to be able to
push the right things in order to be
able to you make sure you you can
recommend to the client you know well if
you like this song you might like this
song and you know you can download it
right now or hear a sample right now and
finally well you think we're positioned
to provide innovative services that's
that sounds probably banal but I think
the reason I put that up there because
of the I think it's going to be
important to all carriers to treat their
clients in a holistic manner not as a
wireless client sometimes and sometimes
as a different type of client their one
client with different contexts in
different contexts they have access to
different devices and by understanding
what their contexts are you're in a
better position to be able to provide
them the content that they may need if I
think you
you