Presentation given at ALU customer event: Transforming the Customer Experience. The world has changed drastically over the past 3 years for operators. No longer are they the preferred service provider of their customers. Consumer electronics brands and web service providers are rapidly gaining that position. For iPhone customers they use FaceTime (video telephony), iTunes, App Store, Skype, Dial2do, HomeCamera, and many, many other services generally not over the operator’s mobile broadband, rather via WiFi. It’s a similar story for Android based devices and the rash of other smartphones and tablets coming on the market. Even in the once safe IPTV space, Google, Amazon and Apple are all making significant gains. Why should a customer pay $4.99 for a movie from their operator when they can get it for $2.99 from Amazon on demand? The case for opening the network has never been starker, the direct objective evidence of not remaining relevant to the customer is clear. But the landscape is changing dramatically: APIs are being commoditized, Apple offers thousands of them for free; Google and Apple have cornered the market for advertising on their platforms, while operators continue to struggle with advertising given their customers are paying them $1000s over the lifetime of their contracts. Knowing your customer and delivering compelling value to your customers has never been more important to operators. This session will explore what operators can do, firstly through a frank and independent presentation from Alan Quayle; and then a lively and informative panel discussion with leading developers whose services every operator should have deployed several years, and who now have a choice in how to get to market.

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 2008 Alan Quayle
The
Imperative
to Open the
Network
Alan Quayle
Business and Service Development
www.alanquayle.com/blog

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 2008 Alan Quayle
What‟s Changed?

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Re-Launch
An Operator‟s Product Development Process
Opportunity
Identified
Market
Research
Find Budget
New product
development processLaunch

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What‟s Changed?
Expectations

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What customers expect

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Why Aren’t Your Customers Already Using These Applications?

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Customer’s Critical Math (US Focused)
• Cost of premium Cable per year ($137.5) $1650
• Cost of premium Satellite $1460
• Cost to Replace Cable
– Digital antenna (local free to air) Free-$50
– Hulu+ $120
– Joost, YouTube, Fox, other websites Free
– Netflix on Demand $120
– Cost of box (TiVo, PS3, Wii, Xbox, DVR) Free-$80
– Amazon VoD $778
 (one show per week night in HD, 2:99)
• Total $1018-1148
• Cost of laziness $632-312
In the US people are already starting to migrate to interactive consumption: generally tech-savvy
early adopters, especially where Sports Package is not a decision criteria. GoogleTV and
AppleTV are bringing this awareness to the mass market.

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Developer
Perspective of the
Initiatives

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Developer Survey on Community Involvement
0% 20% 40% 60% 80% 100
%
Apple AppStore
Windows Mobile Catalogue
Blackberry App World
Android Market
Orange App Shop
Nokia OviStore
Samsung Mobile Applications
Other Operator Store
Working
Worked in past, no longer
Never worked
50 mobile application developers surveyed in June 2009. Roughly 50:50
split between North America and Europe
Critical Exodus!
Developers are voting with their feet, makes the problem far greater
than awareness, you‟ll need to change their minds

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 2008 Alan Quayle
Some Developer Quotes
AT&T and Verizon’s developer
communities are broken. We’re no
longer engaged, we’ve focused our
development efforts on iPhone,
Android and Ovi because there is a
clear path to cash (the customer).
An ADC is a large
undertaking, Operators
must resource adequately
to not repeat the problems
of the past.
We have spent 18 months
working with Orange Partner and
achieved nothing. Its simpler to
directly go to the relevant
product manager
They (Orange Partner) select
what apps their customers see!
How is that a developer
community? Isn’t it the customer
that decides; haven’t they learnt
even the basics from Apple!
Operators’ ADCs must
solve the 4 key challenges
facing developers:
distribution, discovery,
predictable process, and a
clear way to make money

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Capabilities Application Developers Seek
• Single sign-on
• Address Book API
• Age Verification
• Billing/Charging
• Identity/Authentication
• Location
• Messaging
• Profile API
• File Browsing
• Browser based API
• Presence
• SIP/VOIP/Call Control
• Mobile Lookup
• Connection status
• Discoverability
• Short codes
• Plus lots and lots more……
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 2008 Alan Quayle
Potential Telco API capabilities (from App Vendor Survey)
• Authentication & Single Sign-on
• Presence (device, application, call state)
and Availability
• Device Capabilities / Software
• Location (accuracies and freshness),
Proximity, Heading, Speed
• Preferences (policies or rules)
• Context – a combination of presence,
location, device status, application status,
meeting status (calendar), etc.
• Customer data (business intelligence)
• Call Control
• Messaging
• Network address book
• Group List Server (buddy lists)
• Enterprise Mobilization
• VoIP / SIP: tone insertion
• Call Flow: ACD, IVR, CRM, Helpdesk
• Charging / Billing
• Call Log / Call events
• Directory
• Message Store
• Home Network Enabler
• Content Delivery
• Policy (Quality of Service)
• IPTV enablers
• IPTV STB enablers
• Content Enablers
• Collaboration Enablers
• VoIP / SIP call control including invoking
supplementary services
• Fulfilment and other BOSS capabilities
• Digital Rights Management
• Device Management
• Local dial in number provisioning
• Ringtone purchase integration
• Video-ringtone platform
• Subscription status
• Mobile Video
• CDR number frequency search
• Calling Name dip
And the list goes on, much further on….. Prioritization is critical
High
Popularity
Developers are excited about the
many capabilities and information
an operator has available; there
are 2 business basics that are
much more important

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A Large Engaged Customer Base

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A Clear Path to Cash
$$$

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But is it really that bad?

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Google’s Offer You Can’t Refuse?
You will be granted favors, but there will come a
time to pay back...by accepting advertising.

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What’s Up Google’s Sleeve?
Google Says:
“Google is in the connection business. Google
is in the business of connecting buyers &
sellers.”

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What’s Up Google’s Sleeve?
READ BETWEEN THE LINES.
“Google is in the connection business. Google is
in the business of connecting buyers & sellers.”
SELLERS: Advertisers
BUYERS: Everyone else.
The sellers’ messages WILL be delivered.

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Fundamental Difference in Business Models
Customer
Provider
Means to
an End
$
Telecom Services
$
Hardware & Services
$
Inventory
Advertiser

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Global Value Added Service (Telecom App) Survey:
Early Insight
• Currently undertaking a global VAS market analysis
– Looking at the top 10 VAS for different regions around the world
 Western Europe, LATAM, China, India, Japan, Central and Eastern Europe, North
America, etc.
– Understanding regional differences in services, pricing, reasons for success,
addressable customers, etc.
• Just a couple of interesting points
– Amongst smart phone users (regardless of region – China, India, US, LATAM)
beyond voice, SMS, voicemail and internet access they positively do not use the
operator‟s VAS – unless it saves them money (e.g. myFavs in the US)
– Operator VAS main customer base is low-end phones and prepaid customers who
do not have easy access to the internet so access content (games, ring-tones and
wallpaper) and enterprise customers (VPN, Mobile Office) – this is a temporary
situation
• But what about all the hundreds of VAS such as:
– Missed call alert, missed call completion, do not disturb, communicator, spending
limits, pay4me, call screening, out of office indicator, bill reminder, sponsored calls
/ services, rented number, anti-SPAM, find-me follow-me, call back when free…
• Operators have been distracted by “copying” the web and “dysfunctional”
guidance of investment analysis (look what they did to the economy)
– You‟re in the communications business, your network should be the easiest way to
communicate. It is not. You still use „#784*2*3‟ - that‟s a 30 year old user interface
and a bad one at that!
– APIs enable you to embed your communication services everywhere

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Open Network Strategy: Consumer
• APIs extend your existing business model into the online world, its
not a silo business case
– Share the love with developers
 Use your business model to compete head-on with the OTT (Over The
Top) providers
– Focus APIs on Communications Enabled Business Processes
 Enterprises are still prepared to pay – but not for long as Skype, Google
and Apple have their sights set there as well
– Focus on the core of what developers need
 Large engaged customer base and a clear path to cash
• Customer experience matters above all
– Trial to buy is essential for ALL services – Freemium is mandatory
– Sponsored services should be as far as operators go in advertising –
your users are your customers not a means to an end
• Operator store front strategy is CRITICAL - DISCOVERY
– On Device Portal has been available for near 10 years, Apple showed
the industry how to do it
– Widgetize all communication service, „#784*2*3‟ is a joke not a user
interface

24. NYTimes: Why Are They Exposing APIs?
• Syndication: Drives traffic back to NYTimes.com through links
returned in the APIs
• Innovation: When others build applications and create mash-ups,
we gain fresh insights into how news and information can be
reimagined
– Applications we never we would have thought of ourselves
• Journalism: Helps the Times fulfill its journalistic mission by
putting more information in the hands of the public
• Branding: Spreads the Times brand throughout the Web, making
the Times an intrinsic part of finding and reading news and
information online
• New Business Models: As our APIs and the applications built with
them proliferate, new business models based on advertising and
licensing will emerge
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25. Verizon Releases 20 APIs
• Verizon Wireless released 20 different location-,
messaging- and network-based APIs
– Messaging APIs will allow developers to send, receive and
request receipt of text and multimedia messages.
– Messaging APIs will allow developers to offer features such as
“link-to-buy” a product or to allow users to get discounts or
more information about a product or service.
– Location APIs will allow developers to request and incorporate
location information in applications and services, providing
customers with specific offers or improved targeting of offers,
leading to more valuable and useful applications.
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Service
Provider
Utility
Connectivity
We’ve been talking about it for over a decade,
but now its the customer that’s going to decide