INNOVATION ECOSYSTEMSCASE STUDY – the 3rd generation partnership project (3gpp)

MIGUEL ANGEL PALLARES

ERICSSON RESEARCH

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 2

index

› Introduction to 3GPP, the 3rd Generation PartnershipProject

› Analysis of innovation aspects– Trade-off openness and control– Setup, Dynamics and Strategy

› Ericsson’s approach

Note: 3GPP stands for 3rd Generation Partnership Project

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 3

3gpp scope

“3GPP will provide globally applicable Technical Specifications for a 3rd Generation Mobile System based on the evolved GSM core network, and the

Universal Terrestrial Radio Access (UTRA), to be transposed by relevant standardization bodies into appropriate deliverables (e.g. standards)”

Source: 3GPP Partnership Project Description

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 4

3gpp scope

BSS

BSC

RNS

RNC

CN

Node B Node B

IuCS IuPS

Iur

Iub

USIM

ME

MS

Cu

Uu

MSC server SGSN

Gs

GGSN GMSC server

Gn HSS (HLR,AuC)

Gr

Gc C

D

E

EIR

F Gf

Gi PSTN

IuCS IuPS

VLR B

Gp

VLR G

BTS BTS

Um

RNC

Abis

SIM

SIM-ME i/f or

MSC server

B

PSTN

cell

CS-MGW CS-MGW

CS-MGW

Nb

Mc Mc

Nb

PSTN PSTN

Nc

Mc

A Gb

Nc

PDF Go

Gq Go*

CRF Gx

Rx

PCRF

3GPP TS 23.002“Basic Configuration of a PLMN supporting CS and PS services (using GPRS) and interfaces“

Source: 3GPP Partnership Project Description

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 5

A global organization

TTCTTCIn total 355

Individual Members

14 members

26+8members

12 members

20 members

275 members

CCSA

3GPP is a loose association of regional and national Standards Development Organizations

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 6

Expectations on technology…

… to enable New Business OpportunitiesSource: LTE for UMTS - OFDMA and SC-FDMA Based Radio Access

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 7

motivation

› Why do telco companies participate in standardsdevelopment?–To influence technology evolution–To benefit from technology evolution–To protect their R&D investments–As a source of business intelligence

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 8

Trade-off oppenness & control

Source: Open Innovation: Researching a New Paradigm

Val

ueca

ptur

ed

Profits

Closed standard

Open standard

100%

100%Value created

Developing a business model for commercializing innovations

Companies competingin implementation

Companies competingin standards

Appropriability

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 9

3gpp environment

Collaborative agreement involves regulation, SDOs and the ITU

PCG

TSGGERAN

TSGRAN

TSGCT

TSGSA

WGGERAN1

WGGERAN2

WGGERAN3

WGRAN1WG

RAN2WG

RAN3WG

RAN4WG

RAN5

WGSA1WGSA2WGSA3WGSA4WGSA5

WGCT1

WGCT3WGCT4

WGCT6

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 10

Working culture

› As with any standards organization, 3GPP has a set of governing rules (working procedures) and a set of working processes (working methods).

› However, much of the success of 3GPP is due to its working culture. – Delegates represent company positions, not individual or regional

positions – Consensus decision making with voting as a last resort – Delegates empowered to make decisions and compromises at

meetings – Voluntary work distribution among companies – High level of lateral communication and decision making between

WGs

Much of the success of 3GPP is due to its working culture

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 11

Intellectual Property Rights (IPR) Principles

› The Individual Members of 3GPP are bound by the IPR Policies of their respective Organizational Partner.

› Individual Members are encouraged to declare at the earliest opportunity, any IPRs which they may have and believe to be essential, or potentially essential, to any work ongoing within 3GPP.

› After comparing their respective IPR policies, ARIB, ETSI, T1, TTA and TTC have agreed that their IPR policies share common principles are quite similar and have agreed on the following additional principles to maximize the success of 3GPP.– (i) To encourage their respective members’ declaration of willingness to grant

licences on fair, reasonable terms and conditions on a non-discriminatory basis, and consistent with the respective Organizational Partners’ IPR policies.

– (ii) To encourage their respective members who may have IPR which they believe to be essential, or potentially essential, and are unwilling to license such IPR, that early indication of such unwillingness be provided to their respective Organizational Partners.

– (iii) To understand that essential IPRs mean essential IPRs relative to any or all parts of the content of the 3GPP technical specifications.

– (iv) A mechanism for exchanging information associated with the patent statement among the Organizational Partners will be introduced so that such information may be used when adopting relevant standards in each Partner Organization.

Source: 3GPP Partership Project Description

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 12

conclusions

› Successul ecosystem

› Aligned and complete ecosystem› IPR policy› Collaborative working culture for

progress

3GPP dynamics and strategy enable industry adoption and value capture

Source: LTE for UMTS - OFDMA and SC-FDMA Based Radio Access

Val

ueca

ptur

ed

Value created

Conditioned by the ecosystem dynamics

Ericsson’s approach

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 14

ITU-R, -T, -D

TTCTTC

Standardization Landscape

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 15

INFLUENCE RATE AND DIRECTION OF TECHNOLOGY DEVELOPMENT

Business-driven Standardization Strategy

Reported mobile subscriptions, by system standard (2006-2013)

link

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 16

ITU-R, -T, -D

From ITU to IETFStandards fundamental for communication

Global system Components and protocols

Spectrumand

systems

Open platforms

IP protocols

Mobilemultimedia

GSM, WCDMA,HSPA, LTE

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 17

Ericsson operational view Research, Patents, Standardization

StandardizationDefine efficient solutions for vendors and operators

PatentProtect our inventions

ResearchFirst to inventions

Continuously building Technology Leadership

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 18

PATENT licensing strategy

ericsson Licensing programs

› 3GPP Core Network › 3GPP IMS (IP Multimedia Subsystem) › 3GPP GSM/GPRS GERAN › 3GPP GSM/GPRS MS › 3GPP LTE RAN › 3GPP LTE UE › 3GPP TD-SCDMA UE › 3GPP TD-SCDMA UTRAN

› 3GPP WCDMA/HSPA UE

› 3GPP WCDMA/HSPA UTRAN

› 3GPP/OMA MMS (Multimedia Messaging Service)

› 3GPP/OMA WAP (Wireless Application Protocol)

› 3GPP MBMS (Multimedia Broadcast Multicast Service)

It is Ericsson´s philosophy that licenses for patents essential to standards should be widely available at fair, reasonable and non-discriminatory (FRAND) terms, subject to reciprocity, to provide compensation to companies that have made substantial investments in the development of these standards.

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 19

references

› 3GPP– About 3GPP

› Scope and Objectives› Partnership project description

– Working Procedures› 3GPP TS 21.900 “Technical Specification Group Working

Methods”

› Ericsson licensing programs

INNOVATION ECOSYSTEMS, CASE STUDY: 3GPP | M. A. Pallares | © Ericsson Spain 2010 | Page 20