About Telecom Finance

(Q3/2, SG2 plenary meeting. 9-18 Nov, Geneva)

Zhao Ping Q.13/2 Rapporteur China Telecom Guangzhou Research Institute

Telecom Value is Changing

Traditional telecom value
Anytime, anywhere, to communicate

New telecom value

Anytime, anywhere, to do everything in SP/NO Smart grid, E-health, ITS, USN, Railway communication, Reducation, entertainment, enterprise application, ebusiness such as Alibaba/Taobao/eBay etc.

Major factors are needed to do everything

Information flow - Telecom money flow - Finance Goods flow - Logistics

Telecom Needs Finance in SP/NO

In SP/NO world, Strong link between Telecom & Finance, which is Telecom Finance.
Future Telecom Business Transformations Service Provider (SP) - 10000 +
Video/Audio, IPTV, OnlineGame, eCommerce, Searching, BestTone, IM, VAS, CP etc.

Tier 3 Operators

4G/3G, NGN/IMS, internet, PSTN, Wimax, ICT, BroadBand etc.

Tier 2 Operators

Fiber, Copper, Duct, Physical media, etc.

Tier 1 Operators

Infrastructure Network Operator (NO) -10+

Telecom Advantages to Finance

Better coverage
Area Populations

Perfect interoperability Better interaction Better Individuals and group-link identification Mature ecosystems

Telecom Finance Definition

Telecom Finance
Is a common important infrastructure functionalities including Identification networking, E-money, payment, banking, exchange, investment, even P2P finance etc. for service/application entities or users in SP/NO world. With mobile and fixed telecom technologies, these features can be easily accessed anytime, anywhere, by anyone and could be supported in P2P mode.

Definition
E-Money
refers to money which is issued lawful and only exchanged electronically.

P2P finance
refers to person to person financial activities, such as lending, payment, without the intervention of banks through telecom network.

Telecom Finance Development

Current
Micropayment / Small number payment, China Mobile Online payment, Alibaba Mobile payment / Banking, KDDI / NTT E-Money, NII

Future
P2P finance /P2P bank-- generally refers to person to person lending without the intervention of banks, such as person to person, peer to peer. Telecom Finance - Finance as a necessary service merged into telecom operation
Payment is a very basic feature in Telecom Finance. Telecom Finance will be important part of Internet of Things. Telecom Finance will benefit social operation with P2P finance service, even avoid financial crisis today.

Telecom Finance Study

Telecom Finance Framework
Function & Requirements Technology
Infrastructure for SP/NO Identification Network in NGN and LTE Interface between Telecom Operators and Banks.

Management
Rules Regulation Enforcement.

Telecom Finance is also currently a subject in GSC (Global Standards Collaboration)

Key Requirements of Telecom Finance

Anytime, anywhere, can pay
Online payment Mobile payment Fixed payment Remote payment Onsite payment

Anytime, anywhere, can deal / business Anytime, anywhere, can finance

Payment Lending Banking

Anyone can be Alibaba/Taobao/eBay owner Telecom Finance activities will be implemented through telecom activities, maybe a finance data session or a call. Security / Everything Identification

Telecom Finance Functionalities Framework

B2B X-Wallet B2C Payment

Banking

P2P Finance

Exchange

Regulations

E-Money Management
Network/Terminal Identification Financial Facilities

About Security
General Basic Security Identification--Identification should be everything for security
Physical identification
Physical port/card Physical connection Physical Location/address

Network Identification
Network address Connection/route Terminal Signaling

Service/Application Identification
Service/Application Process

Business/User Identification
Individual / enterprise / SP SP/NO interface

Finance Identification

Telecom Finance implementation

Customer Terminal Business Terminal
SP/NO Applications

Bank Exchange Finance Etc.

Telecom Identification network Management & Regulation Telecom Finance Service Systems

Core Technologies
Identification networkingNGN/LTE Telecom Finance service protocol Interface
B2B interface B2C interface Telecom-Finance interface

E-money support P2P finance

Roadmap of Telecom Finance

Step 1
Telecom Finance architecture Identification networking Telecom Payment

Step 2
Telecom credit card/wallet Limited E-money Telecom Finance network

Step 3
Complete E-money in SP/NO world P2P finance Anytime, anywhere, anyone can finance

Scenario 1 in TF
E-money
Prepaid Credit limitation No limitation E-money is basic premise of e-business Possibility of global currency support

Scenario 2 in TF
Payment SP/NO B2BB2C and C2C
Online game Hotel and travel / Bestone Online payment

Scenario 3 in TF
P2P finance
Peer to peer Person to person Point to point

Scenario 4 in TF
Regulations
Money flow Tax

Co-operations
Telecom operators with Banks, payment companies such UnionPay. Business & service collaboration. Standards development

Target of Telecom Finance

Finance activities will be implemented through telecom activities, maybe a finance call. ID card, credit card embedded in phone/terminal can communicate anytime, anywhere. E-Money will replace traditional money step by step. P2P finance will be supported together with traditional finance. Telecom Finance will be a integrated infrastructure for B2B and B2C business in our society. Telecom Finance could be a possible strategy to support global currency beyond countries.

Problems
Regulations of Telecom Finance, as a technology Security Habit and Culture Technologies Co-operations

Benefits of Telecom Finance

Perfect payment in SP/NO cyber-society. Easily, equally and widely to access financial service for most population. Faster money flow, e-business promotion to boom global economy. Better financial regulations. Enhanced functionalities for both telecom and finance. More green. Make our society better.

Fora
OMA MeT Mobile Payments Forum Mobey Forum PayCircle Irda Raddichio Liberty alliance Parlay/OSA GSMA

Summaries
Telecom operation requires more financing functions. Telecom operators and banks will impact each other. Telecom Finance needs a IDENTIFICATION network technology. Telecom Finance, also Internet of Things (Internet of Money). Telecom Finance, a new important infrastructure to boom economy. Telecom Finance service will cover wider area and populations. Standardization of Telecom Finance.

Telecom Finance, Better Society.

Questions & Discussion

Thank you
zhaop@gsta.com +86 20 38639086

Reference
http://www.itu.int/md/T09-SG02-100517-TD-WP2-0065/en http://www.itu.int/md/T09-SG02-C-0014/en