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IMS Executive Summit: Convergence is the Killer App

Panelists Hard-Pressed to Define What Will Drive the Technology

      

From a business standpoint, the ability of IMS to drive Fixed- Mobile Convergence (FMC) among wireless and wireline operators will be the legendary “killer application,” said panelists at FierceMarkets’ IMS Executive Summit in Washington DC.


Convergence is being driven by vendors who are building the first dual-mode wireless phones; by service providers who are building networks to deliver services across both ends of the networks; and by applications providers who are building applications that run on top of those networks.

Even while agreeing on convergence as the killer app, panelists were unable to agree on how to exactly define convergence and how IMS played into that and the applications that will eventually run on those converged networks. In fact, they didn’t even really agree on the meaning of convergence which, according to Masoud Loghmani, CTO of LogicTree, speaking at the appropriately named “Identifying Killer Apps Panel,” defined as “a nebulous term.”

Loghmani, like other members of his panel, said that IMS is a step towards converging networks and applications and that a parallel step must be to make those networks and applications run easily while offering something consumers want.

“People on the street are the ones that are going to pay the bills and it it’s not easy to use they won’t buy it,” Loghmani said.

Brian Caskey, vice president of worldwide marketing at UTStarcom agreed and added that convenience should accompany ease of use.

“We’re a society that wants instant gratification. There’s no reason why IMS is not the enabler that drives that,” Caskey said.

There was a deeper question – bordering, perhaps on a potential problem – of how this convenience, ease of use and personalized service delivery system will make money, especially among service providers who see users pretty stationary at $200 per month in disposal income for entertainment – including wireless voice services -- according to David Croslin, Chief Technologist at Hewlett-Packard, speaking at an earlier panel, the “Business Case for IMS.”

“You really can’t prove cap ex, op ex reductions; you really can’t prove a revenue stream,” he said, challenging vendors to sell the technology to service providers who are “still aggressively trying to slash, not spend money.”

Compounding that is the fear that the applications and their revenues may slip away from the service providers.

“Would it be bad if you built that roadway and others took advantage of it?” asked Loghmani. “It’s a hard question to answer. How do we bring in partners but not allow them to steal the show.”

Part of the answer, he said, is that the “walled garden” approach to IMS applications will probably not succeed. If it’s too difficult or too expensive for applications developers to get their wares on IMS networks “innovation will find a way around it and you will find companies coming in and taking advantage of what you have built,” Loghmani said.

The panelists almost universally agreed – with slight variations – on what IMS is and what it can be.

IMS is “an opportunity with staggering complexity,” said Colin Dixon, the killer app panel moderator and the leader of the IP Media practice at The Diffusion Group.

It is also, ideally, a “great enabler of what we think is coming in the next generations,” said Tony Kern, Deputy Managing Partner, Technology, Media & Telecommunications and Americas Managing Partner, Media and Entertainment at Deloitte & Touche.

IMS may be driven by the convenience of any network, any device, anyplace convergence, but that won’t happen if it’s too hard to do.

“The key is to hide the complexity from the end user,” said Graham Ellis, Program Manager, Convergence Marketing at Nokia Networks.

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