Lecture Notes in Computer Science 7768Commenced Publication in 1973Founding and Former Series Editors:Gerhard Goos, Juris Hartmanis, and Jan van Leeuwen

Editorial Board

David Hutchison, UK

Josef Kittler, UK

Alfred Kobsa, USA

John C. Mitchell, USA

Oscar Nierstrasz, Switzerland

Bernhard Steffen, Germany

Demetri Terzopoulos, USA

Gerhard Weikum, Germany

Takeo Kanade, USA

Jon M. Kleinberg, USA

Friedemann Mattern, Switzerland

Moni Naor, Israel

C. Pandu Rangan, India

Madhu Sudan, USA

Doug Tygar, USA

Services Science

Subline of Lectures Notes in Computer Science

Subline Editors-in-Chief

Robert J.T. Morris, IBM Research, USA

Michael P. Papazoglou, University of Tilburg, The Netherlands

Darrell Williamson, CSIRO, Sydney, Australia

Subline Editorial Board

Boualem Bentallah, Australia

Athman Bouguettaya, Australia

Murthy Devarakonda, USA

Carlo Ghezzi, Italy

Chi-Hung Chi, China

Hani Jamjoom, USA

Paul Klingt, The Netherlands

Ingolf Krueger, USA

Paul Maglio, USA

Christos Nikolaou, Greece

Klaus Pohl, Germany

Stefan Tai, Germany

Yuzuru Tanaka, Japan

Christopher Ward, USA

Emmanuel Bertin Noel CrespiThomas Magedanz (Eds.)

Evolution ofTelecommunicationServicesThe Convergence of Telecom and Internet:Technologies and Ecosystems

13

Volume Editors

Emmanuel BertinOrange Labs Caen42 rue des CouturesBP 624314066 Caen Cedex 4, FranceE-mail: emmanuel.bertin@orange.com

Noel CrespiMines-Telecom9 rue Charles Fourier91011 Evry, FranceE-mail: noel.crespi@mines-telecom.fr

Thomas MagedanzFraunhofer Institute FOKUSKaiserin-Augusta-Allee 3110589 Berlin, GermanyE-mail: thomas.magedanz@fokus.fraunhofer.de

ISSN 0302-9743 e-ISSN 1611-3349ISBN 978-3-642-41568-5 e-ISBN 978-3-642-41569-2DOI 10.1007/978-3-642-41569-2Springer Heidelberg New York Dordrecht London

Library of Congress Control Number: 2013950390

CR Subject Classification (1998): C.2, H.4, D.2, H.3, I.2, H.5

LNCS Sublibrary: SL 3 – Information Systems and Applications, incl. Internet/Weband HCI

© Springer-Verlag Berlin Heidelberg 2013This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part ofthe material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation,broadcasting, reproduction on microfilms or in any other physical way, and transmission or informationstorage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodologynow known or hereafter developed. Exempted from this legal reservation are brief excerpts in connectionwith reviews or scholarly analysis or material supplied specifically for the purpose of being entered andexecuted on a computer system, for exclusive use by the purchaser of the work. Duplication of this publicationor parts thereof is permitted only under the provisions of the Copyright Law of the Publisher’s location,in its current version, and permission for use must always be obtained from Springer. Permissions for usemay be obtained through RightsLink at the Copyright Clearance Center. Violations are liable to prosecutionunder the respective Copyright Law.The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoes not imply, even in the absence of a specific statement, that such names are exempt from the relevantprotective laws and regulations and therefore free for general use.While the advice and information in this book are believed to be true and accurate at the date of publication,neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors oromissions that may be made. The publisher makes no warranty, express or implied, with respect to thematerial contained herein.

Typesetting: Camera-ready by author, data conversion by Scientific Publishing Services, Chennai, India

Printed on acid-free paper

Springer is part of Springer Science+Business Media (www.springer.com)

Foreword

Of late, we have witnessed a new and encouraging phenomenon that telecom-munications are not confined to being a commodity, but are increasingly be-coming an enabler for an open-ended spectrum of customizable service offers inever-new application domains of our daily life. The convergence of technologiesand ecosystems in telecommunications, entertainment, and Internet industriesstarted 10 years ago with the introduction of next-generation networks (NGN).We have since seen new players arriving on the market, pushing innovative ideasand rolling out new products faster than ever. Needless to say, this convergence,coupled with allied ecosystems enabled by telecommunications, unlocks unpar-alleled growth potential for business as well as society, be it healthcare, disastermanagement, environment sustainability, or city management, to name a few.However, this convergence also comes with its own set of challenges, both fornetwork operators in terms of business sustainability, as well as for society in gen-eral, be it identity and security issues, infrastructure sabotage, financial fraud,etc. Technology awareness, research, innovation, and market orientation will bekey for a successful evolution towards a new telecom ecosystem.

In principle, we see four developments shaping our industry: (a) shift to all-IP,(b) cloudification, (c) webification, (d) software-enabled productivity increase. Itis obvious that technology and society evolve together with transition to all-IP.While the initial advances in telecommunications were primarily hardware-driven(imagine human-operated telephone switching centers), software soon becamethe key factor in Internet transmission technology, as exemplified by Internettraffic forwarding elements like switches and routers. This has led to a separa-tion of infrastructure from the services, giving birth to the over-the-top (OTT)domain, where anybody with a smart idea can offer services over the underlyingInternet infrastructure, without the need to own or control the infrastructure.The popularity of Google Chromebook and its cousins, along with the transitionof most big businesses to cloud applications, speaks for itself about the benefitsof cloudification. An increasing number of complex applications can now be runover a Web browser. A case in point is WebRTC, which provides high-qualityvoice over the Web, enabling Web developers to easily create communicationapplications. What once required millions of euro in communication equipmentinvestment, is now possible with a couple of backend servers and some smartsoftware code – welcome to webification! Lastly, software-enabled productivityis increasing manifold through use of open source, software libraries and APIs.Consider this – to produce 100 K lines of software code, the employee cost hasreduced by a factor of 8 to 10 in the last 10 years, accompanied by improvedbug fixing and shorter software cycles.

This book offers insights into this complex but exciting world of telecommu-nications characterized by constant evolution, and approaches it from technol-ogy as well as business perspectives. The book is appropriately structured in

VI Foreword

three parts: (a) an overview of the state of the art in fixed/mobile NGN andstandardization activities; (b) an analysis of the competitive landscape betweenoperators, device manufactures and OTT providers, emphasizing why networkoperators are challenged on their home turf; and (c) opportunities for businessmodelling and innovative telecom service offers.

I feel sure that students, researchers and industry executives alike will find ita good investment of their time and energy to absorb the contents of this book.All the best!

Dr. Heinrich Arnold,Senior Vice President, Research & Innovation,

Global Head of Telekom Innovation Laboratories,Deutsche Telekom

Preface

In the telecom world, services have usually been conceived with a specific mind-set. This mindset has defined the traditional characteristics of these services;services distinguished by their linkage with the access network, tight control overservice use (e.g., authentication, billing), lack of deep personalization capabilities(mass services only), and reliance on standardization to achieve end-to-end in-teroperability between all the actors of the value chain (e.g., operators, platformmanufacturers, device manufactures). In addition, telecom operators – which wewill also refer to as “Telcos” in the following – have been used to holding abrokering position because of their control of communication networks.

Many aspects of the telecom business model are being challenged by Webactors – often referred to as Over-The-Top (OTT) players – who also offer com-munication services, but services that are:

• Network-independent (relying on the universal internet network and on theweb technology)

• Loosely controlled (e.g., light authentication, credit card payment, and nomonthly billing)

• Largely customizable (e.g., based on each user’s profile, request history,context-awareness)

• Non-standardized, and often without interoperability between actors• Where consumers may also become producers (e.g., Web 2.0 wave, Apple‘app’ model)

These IT actors rely on sharp software competencies that enable them to quicklydevelop, test and deploy services. The Web development methods provide flex-ibility and faster time-to-market (TTM) and thus easier integration and vali-dation for new service deployments along with lower costs thanks to the use ofmassively deployed open-source information technology (IT). Moreover, theseWeb players benefit from a strong brokering position based on their key assets:e.g., a search engine for Google, a social network for Facebook, mobile devicesand a closely linked and easy-to-use App Store for Apple.

In response to the emergence of these new players, telcos are trying to rein-vent their organizational networks and business models in line with this emerg-ing service paradigm. This book surveys the major shifts in the telecom servicesecosystem, from both technical and business viewpoints, and introduces possibleresponses by telcos within three timeframes: now (the IP Multimedia Subsystem– IMS age), tomorrow (the post-IMS age), and afterwards (the Future Internetage). Each of the chapters’ authors are recognized experts, working for key play-ers in the telecom market: operators (Deutsche Telekom, Orange, Telecom Italia,and Telefonica), standards organizations (ETSI), regulators (ARCEP), manu-facturers (Alcatel-Lucent Bell Labs, Ericsson, and Tekelec), IT vendors (HP,

VIII Preface

SAP) and academia (Fraunhofer FOKUS, Mines-Telecom, Politecnica Madrid,TU Berlin, and Zurich University).

The first part of the book reviews the main telco assets in terms of servicesand their current disruptions, in order to better understand where the industryis coming from and how it stands now. Chapter 1 focuses on the network andcontrol layer evolution. It first introduces broadband network evolution as a high-way for services, with the Fiber-To-The-Home (FTTH) optical access networkand the Long-Term Evolution (LTE) wireless access network. It then depicts theconvergent core network evolution of fixed and mobile all-IP networks. It alsodeals with the evolution of the controlling and enabling layer. Chapter 2 surveyshow the application layer is evolving towards a convergence of telecom and Webservices. Applications have been the main driver for the incredible growth ofOTTs. Telcos are now preparing to open up their assets to third-party serviceproviders to enrich their application offerings. In addition, service compositionhas become a key value-added capability that enables end-users to adapt ser-vices for their own needs. The requirements for service delivery (e.g., identitymanagement, service brokering, service enablers) are presented first, followedby a survey of the various service delivery solutions, with their strengths andweaknesses. Chapter 3 is a showcase focusing on Value-added services (VAS).It contains an in-depth anthology of the evolution of the techniques supportingthe creation of Value-added services. This includes a break-down of the funda-mental building blocks and how these building blocks are used to build VAS forthe evolving/future multi-access multimedia communication networks. Chapter4 presents the current trends in the standardization landscape, from the per-spective of a standard development organization (SDO). It describes the recentkey technical achievements, as well as the standardization process and the col-laboration between different SDOs.

The second part highlights the new issues raised by the rise of the OTTsand the possible medium-term strategies beyond the IMS/NGN paradigm. Theimportance of an ecosystem model is emphasized, as well as the key regulationprinciples of the telecom market and their evolution. Chapter 5 recalls the historyof the VoIP standards that paved the way to many OTT multimedia communi-cation offers. Chapter 6 comes back to the main assumptions that have driventhe construction of telecom architectures during the last ten years (with theNGN paradigm), investigates how these assumptions were or were not realized,and offers perspectives for the future. Chapter 7 presents an IT viewpoint onstandardization. It especially questions when, why, and how the absence of stan-dards might be a strength. Beyond standardization, it introduces the “commonplatform” model and its importance for the IT mindset. It emphasizes the mainoptions for building such platforms (e.g., open-source or ecosystems). Chapter 8investigates the shifts in the roles of players and business models. It details therespective strengths and weaknesses of telcos and OTT players, and investigateswhether an ecosystem model is suitable for telcos. Chapter 9 deals with the shiftsin public regulation. The telecom operator business is indeed highly driven by

Preface IX

regulation. This chapter details the current regulatory trends, for both telcosand Web players. It also addresses net neutrality issues.

The last part is dedicated to the long-term service evolution driven by futureInternet research, especially virtualization, the Internet of Things, and serviceengineering. Chapter 10 surveys the rise of the service marketplace and applica-tion stores, as well both native and Web apps. It details how telcos may competein this area with a three-screen strategy (i.e., PC, mobile, TV). Chapter 11 ex-plains the rise of cloud computing and how telcos might operate cloud services ina de-perimeterized way, i.e., independently of access networks or regional mar-kets. Chapter 12 focuses on the corresponding network function virtualizationand software-defined network trends. It introduces the new network architec-ture models and technologies (e.g., Open Flow), and shows how telcos may ex-ploit it for more economic service provision. Chapter 13 presents the stakes andchallenges of the emerging Web of Things by applying the lessons learned fromcurrent machine-to-machine (M2M) services. It also introduces possible businessopportunities for telcos in the Web of Things. Chapter 14 covers the shifts inservice consumption. It introduces the paradigm shift from products to services,as well as the key concepts from service science and engineering. This chapterprovides a prospective view on services customized according to individual needs,along with a detailed survey of the research on that topic.

We would like to thank all of the authors for their diligent efforts and out-standing contributions to making this book a reality. We hope readers will enjoyreading the book and come to some fresh insights on this challenging field.

Emmanuel BertinNoel Crespi

Thomas Magedanz

Table of Contents

Part I: History and Perspectives on the TelecomStandardized Assets

Network and Control Platforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Marius Corici, Julius Muller, Dragos Vingarzan, andThomas Magedanz

Telecom Applications, APIs and Service Platforms . . . . . . . . . . . . . . . . . . . 25Niklas Blum, Julius Muller, Florian Schreiner, andThomas Magedanz

Value Added Services in the Evolving Multimedia CommunicationNetwork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Rogier Noldus

NGN Standardization as a Strength . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77Alain Sultan and Ultan Mulligan

Part II: A New Competitive Landscape betweenOperators, Device Makers and OTT ServiceProviders; Why Are the Operators Challenged andHow they Can Compete

A Short History of VoIP Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90Dorgham Sisalem, Jiri Kuthan, and Jorg Ott

NGN Shortcomings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111Luc Le Beller, Sebastien Cubaud

An IT Perspective on Standards, Service Architectures andPlatforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118

John O’Connell

A Review: What Matters for Ecosystem Business Strategy . . . . . . . . . . . . 138Quoc-Tuan Nguyen and Nicolai Schultz

New Regulatory Approaches in an Evolving Market Structure . . . . . . . . . 155Nadia Trainar

Part III: New Opportunities, Future Battlefields

Virtualizing Devices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182Andre Paul and Stephan Steglich

XII Table of Contents

Virtualizing Platforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203Roberto Minerva, Corrado Moiso, Antonio Manzalini, andNoel Crespi

Virtualizing Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227Roberto Minerva, Antonio Manzalini, Corrado Moiso, andNoel Crespi

Internet of Things . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257Gyu Myoung Lee, Noel Crespi, Jun Kyun Choi, andMatthieu Boussard

Internet of Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283Javier Soriano, Christoph Heitz, Hans-Peter Hutter,Rafael Fernandez, Juan J. Hierro, Juergen Vogel,Andy Edmonds, and Thomas Michael Bohnert

Author Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327