ITUT Regional Consultation on Conformance AssessmentInteroperability Sydney Australia

ITU-T Regional Consultation on Conformance Assessment/Interoperability (Sydney, Australia, 16 -17 September 2010) Open Standards and Innovation -a Pilgrims View to a New Nation Siva Ramamoorthy Sydney, 16 -17 September 2010

Innovation across the Pyramid India Dry Cleaners at $1 Kerala Fisherman Sydney, 16 -17 September 2010 2

Summary – Trickle Up Innovation "The dominant logic holds that innovation comes from the U. S. , goes to Europe and Japan, then gravitates to poor countries" says C. K. Prahalad, a strategy professor at the University of Michigan's Ross School of Business and author of The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits. "But now we're starting to see a reversal of that flow. " CK Prahalad (1941 - April 2010) Nadi, Fiji, September 2009 3

Agenda- Key Hypothesis Standards Help Innovation creates enormous Opportunities for Nations- especially emerging Nations Case Study Call to Action Sydney, 16 -17 September 2010 4

The Telecom Decade No of Subs CAPEX ARPU % of OPEN BUILDING BLOCKS in ICT Death of Telecom 1995 2000 Sydney, 16 -17 September 2010 2001 2005 2010 6

The Telecom Industry Over the Years Earlier: Completely End to End Proprietary Physical design of equipment Racks, Chassis, Boards OS Middleware 7

The Telecom Industry over the years Open Source and Linux Boards and Chassis FPGA Middle Ware (such as SA Forum Specs) Application/ Services Software Consortiums: -PICMG - Linux Foundation & Carrier Grade Linux - SCOPE Alliance - Service Availability (SA) Forum Interop Forums: ITU, MEF ITU Work on Conformity and Interop WTSA Res 76, ITU Pilot Conformity Database, Test Labs Global System for Conformity Assessment (ISO/CASCO) The Post 2000 Telecom Product resembles a Eco System 8

Innovation is multipronged Business Models: Risk/Reward Share, Revenue Share, Advertising based Technology: Open Hardware/ Software based building blocks Customer Usage: Costumer Intimacy to Incredible New Heights E Governance: Closer Government to Citizen initiatives Sydney, 16 -17 September 2010 9

The Innovation Curve Step 5: Customer Focused Apps – VAS, Mass Impact in the Lives of People Step 4: PC/Telecom Cross Pollination: -Server Based, Skype, Wideband Codecs Step 3: Architectural Realignment. Distributed Architectures, Additional Components (Security) Step 2: Bo. M Simplification of Existing Products – Soc, FPGA Step 1: Create Existing Products with Open Building Blocks 10

Innovation Barriers to Entry • Silicon FAB - $4 Billion • Designing a FPGA - $100 K • ATCA reuse - $100 K • Linux/Customization – Free/$10 K • Open Source Code – Free • Use Open Source Components – ex. codecs 11

Global Telecom Industry Observations Emerging Economies leap frog technology Operators are outsourcing their networks increasingly Move towards Converged Networks Greater Focus on Government to Citizen services 12

Large opportunity for Innovation Using Standards Product/IP Talent Big Local Market Standards IP Supportive Supply Chain Sydney, 16 -17 September 2010 Early Role models 13

Innovation Using Standards Large Opportunity to Innovate Re usable HW Building Blocks Open Source Democratization of Knowledge Standards Eco System of Innovation 14

Why is it Important for emerging economies Leapfrog technology Lost Capex Low Opex Best of breed technology Enabling local employment Technology Index Moves up Larger Range of Providers Interop’ing with each other 15

India Innovation Business Innovation Managed Services – Ex. Bharti Point to Point Mobile Services cheaper than a Postage Stamp Convert Fixed costs into Variable costs $0. 01 per minute Revenue growth of 120 percent Y-o-Y, Net profits 282 % (Reverse Innovation) Sydney, 16 -17 September 2010 16

Case in Point Applying Standards and Innovation to NGN Traffic “Carrier Ethernet” Sydney, 16 -17 September 2010

Case in Point Applying Standards and Innovation to Customer Intimacy “Value Added Services” Sydney, 16 -17 September 2010

Summary- Standards and Innovation Large Opportunity for emerging Economies Provides for a way to leap frog technology A large eco system of Providers of solutions and products with Standards Reuse of Known Hardware and Software Technology Building blocks Call to Action Sydney, 16 -17 September 2010 19

Thank You SIVA RAMAMOORTHY Sydney, 16 -17 September 2010 20