New technologies, New Business Models, New Standards: Why Clementvale Baltic OÜ Joined ITU
Clementvale Baltic OÜ has recently become an Associate member of the ITU Telecommunication Standardization Sector (ITU-T) to help shape the development of international standards for innovative technologies in the telecom industry. ITU News recently caught up with Clementvale Project Director Alexander Yakovenko to discuss how the company is addressing shifting market trends and how they aim to participate in ITU standards.
What are some of the most important trends for mobile communications in 2019–2020?
The telecom industry has changed significantly over the last few years. Currently, it is undergoing a digital transformation at an increasingly rapid pace. In my opinion, there is no doubt that 2019 and 2020 are to be years of drastic change.
The power of the Internet of Things (IoT) and emerging technologies like 5G and eSIM will be leveraged, with Blockchain being no exception. Digital service providers will ensure implementation of these promising disruptive technological advancements to get access to new sales channels and lead in the market.
What new business models do you see emerging and how will Clementvale Baltic OÜ be part of them?
Currently, Clementvale Baltic OÜ is focused on the development of two innovative business models that leverage innovation solutions, including blockchain, and partnerships with other telecom players. Our business models provide telecom operators with the opportunity to receive additional revenue streams.
These new business models will provide different levels of ease in terms of compliance with the established mechanism for providing services for telecom operators — one will be simpler, and the other more complex.
The easier-to-use model is a marketplace where wholesale deals to purchase and sell telecom service packages are made. The traditional roaming infrastructure is preserved and operators can create wholesale offers that consist of, for example, seasonal packages, and are valid within a specified period. This approach is unique since it opens up the opportunity to purchase service packages in bulk within existing roaming agreements. In addition, deals are closed immediately, and prices can be changed at any time. Thus, this business model allows operators to provide a short time to market for products that are demanded by subscribers.
The more complex model represents a marketplace where mobile network operators, even those who do not have roaming agreements, interact securely and directly, without any complex integrations or intermediaries. These operators use multi-account SIM cards and allow their subscribers to upload local mobile profiles over-the-air, i.e. via special encrypted binary SMS messages or the data channel using an SMDP platform (eSIM standard). Thus, while travelling, subscribers can purchase service packages at the rates of local operators and use their existing SIM cards.
To speed up implementation of these business models, Clementvale Baltic OÜ is developing a blockchain-based platform and participating in standardisation of Distributed Ledger Technology (DLT). Our company continues to actively develop these business models and offer them to players in the telecom market.
Why are standards important and why have you just joined ITU’s Telecommunication Standardization Sector (ITU-T)?
Standards are part and parcel of the telecom industry. They serve as a basis for the way the whole industry operates, both technologically and legally.
Clementvale Baltic OÜ has joined ITU’s Telecommunication Standardization Sector (ITU-T) to actively participate in the development of standards for both DLT and other disruptive technologies.
There are also plans for participation in development of the standards that are related to the following areas: principles of service provision; the operational impact of the Internet, services and infrastructure convergence and new services, such as Over the Top (OTT) and Machine-to-Machine (M2M) communication and IoT on international telecommunication services and networks; management architecture and security; and others.
Currently, we are developing an mobile virtual network operator (MVNO) in Europe that is also focused on the use of these new business models. As our team has extensive experience in the telecom industry, we understand difficulties that telecom operators are now facing in the market. To overcome them, we are developing and implementing innovative technologies. Our team has useful experience in applying innovative technological solutions and is willing to share our expertise with others. We believe that those who set the standards for new technologies will be playing a key role in their implementation into the whole industry.
Can you tell us a little bit about your contributions to ITU-T’s Focus Group on the Application of Distributed Ledger Technology?
While participating in ITU-T’s Focus Group on the Application of Distributed Ledger Technology, we made technical recommendations for blockchain platforms designed for industrial application in the telecom industry. Among other things, our team proposed several business scenarios that are effective and promising for the world of telecom. As of now, Clementvale Baltic OÜ has developed 14 business scenarios that can disrupt the telecom industry.
What are your plans to contribute to that and other ITU focus and working groups?
We are planning to actively participate in further discussions, including those related to the business models that we developed, in order to put forward our proposals in the field of standardization of DLT and receive feedback from other participants of the ITU focus groups. Our team is also ready to participate in other study groups that work on issues related to DLT and other innovative technologies.