Strategies for Monetizing Mobile Content, Services and Applications in 4G and 4.5G Market

Strategies for Monetizing the
Mobile Content, Services and
Applications in 4G and 4.5G Market
By ALI Saghaeian
Chief Analyst & Consultant
Telecoms, IT and Media
Ali.Saghaeian [at] gmail.com

Objectives
• How to Monetize Mobile Content, Services and Apps
• What are the Key Monetization Strategies for
Operators
• Exploring OTT Monetization Opportunities and
Services
• How to Manage between Revenue Growth and Cost
Optimization
• Exploiting Monetization Opportunities in 4G & 4.5G
• Learning about recent initiatives in Data Monetization

Agenda
• Issues and Challenges in Telecom: Exploiting
Monetization Opportunities
• Key Monetization Strategies & Challenges
• Increase Revenue Streams from OTT Services
• Broad Set of Monetization Use Cases
• Monetization Efforts With Mobile Network
Geolocation
• Building New Business Model for Operators
• LTE as the key opportunity for monetization

Issues and Challenges in Telecom: Exploiting
Monetization Opportunities

Key Monetization Strategies
Pricing and Precise Marketing.
Network Consolidation and cost
optimization
Own the user experience
Combating the OTT threat
Shifting consumer segmentation
based on new era
More connected Devices / Users

Mobile Service Monetization Challenges
• Fragmented
business systems,
processes,
channels
• Inconsistent view
of customer types
(consumer,
enterprise,
prepaid,
postpaid)
Margins
Operational
Efficiency
ROI
Revenue
Growth
Data Revenue
Product
Innovation
Data OTT Competition

Enable Services the Market Demands
Increase Revenue Streams from OTT Services
•Tiered Pricing
•User, Device, & Application Aware
QoS Enabled Smart Offers
$$$
$$
$
Intelligent Fair Usage Control
Lifestyle offers
Tablet Pack
2G of Standard+ Data Off-Peak Booster Unlimited Fast Lane data access during off-peak hours
Social Network Pack
Unlimited access to your 5 favorite socials
Video Pack
Fast Lane access to YouTube and Netflix
International Roam ing Pack
200 MB / wk
Spend Control +
Set your own daily/weekly/monthly text notifications
Navigation Pack
Unlimited GPS access per day (+ appropriate QoS)

New Data Business Opportunities with
Multiple Monetization Approaches

Where will the Money Flow?
• Key challenge is increasing OTT service reach, quality and
profitability, driven by competitive pressure & consumer demand
• Lack of online video monetization by smaller players creates
negative circle
• Higher broadband speeds, better targeted ads and device-
centric experiences, and cloud are more urgent priorities
Content Management Content Protection Content Transformation Content Monetization

Monetization is much more than just content
Quality of Experience
Quality of Content
Content may be the most
visible component of the
Success Equation
Ignoring Quality of
Experience can put your
OTT offering in peril
Success = Quality of Content x Quality of Experience

How to Monetize?
Effective Lead / Opportunity Mgmt 360o view of Subscriber Centralized Product Catalog Real time credit control
Cloud based Billing
Convergent platform
Real time promotions
Integrated Policy & Charging
Integrated CRM & Lead Management Centralized view of subscriber usage, profile & plan Minimize CapEx & support all prepaid, postpaid & hybrid accounts from a single real-time converged platform for voice, SMS & data Single SPR and single point for metering
Eliminate bill shock and bad debt
Single view of all plans created, Plan rationalization with support for multiple business models. Launch new plans in a day
Cloud based hosted model for quick roll out of new services
Create new promotional plans in real time independent of MVNE
Subscriber Partner Offers Contextual Offers Add On Packages & Promotional Plans
Loyalty programs
Service bundles
Subscriber segmentation
Triple Play
Data Monetization IOT / M2M Key Monetization Functionalities Monetization Use Cases

Broad Set of Monetization Use Cases

Managing between Revenue Growth and
Cost Optimization
•Optimize Network Resources
–Control usage based on revenue
model
–Unified service delivery
architecture
•Enhance Subscriber
Experience
–Enhance level of feedback
–Universal user experience
regardless of access medium
•Create Revenue Opportunities
–Simplify the creation and
delivery of new services and
promotion
–Accelerate the introduction of
new business models
Machine to Machine Services Grow Revenue
Optimize
Cost Cloud Services
Over-the-Top Apps
Mobile Video
Social Networks
Fair Use & Congestion Management
Service Tiers Bandwidth on Demand
Parental Controls Flexible Bill-Shock Prevention

Building New Business Model: Redefine
Operators’ Subscriber
Users
Operators OTTs
• Telco Capability Centric:
 Experience SLA
 Network asset
 Network slice
MBB Open and
Interconnect
Massive Connections
Operators
OTTs
• APP Centric
• Experience Centric
• Connection Centric
• Traffic Centric
• Voice Centric
Capability Monetization
Verticals/IoT
Applications
SLA: Service-Level Agreement

Digital Content Explosion and Convergence
are Driving Industry Growth
Content
Devices
Networks
Broadcasters
Media Production
Enterprise Content
Studios
User Generated
Gaming Companies
Advertisers
Mobile Operators
Virtual Operators
Broadband Operators
Internet Service Providers
Television Carriers
Interactive, targeted, personalized on-demand content & services

What this means for Monetizing your Digital
Business
DIGITAL
OPERATING
MODEL
CUSTOMER
EXPERIENCE
NEW
OUTCOMES
With customers, workforce, suppliers,
through objects, places, spaces,
assets, services
Leadership, ambition,
creativity, innovation,
skills, practice, organization,
products & services
Performance, Stakeholders,
competitiveness, sustainability
governance, reliability, trust,
security, compliance
Creating the
Digital Vision
Enabling the
Value experience
Building growth
and return on investment
Modern Digital Business

Need to open new revenue streams
What will be the
most lucrative
new revenue
streams next
year?

OTT Monetization Opportunities
Going Off-Net to Increase Reach
Creating Targeted and
Bundled OTT Offerings
Upselling New and Existing Content

OTT Monetization: Offered Services
Specific LiveTV & VOD packages
nPVR & VOD
Live & VOD, OTT VOD Service,
Offline access
Smart device & VOD
Off-net market reach
VOD marketplace, 4K content,
offline access

Personalize the experience
34% would pay more
Self-change service plans
26% would pay more
Data roll-over 32% would pay more Source: Hot Telecom, 2015
4G users would pay more for these features

LTE is the industry opportunity for
monetisation

The Key to Monetizing LTE
•New Business Models
–Tiered/Usage based services
–OTT/Cloud/M2M
–Flexibility and Agility are Key
•Technology Evolution
–SS7/LTE/IMS interworking
–Network APIs
•Device Evolution
–Smartphones/Tablets/eReaders
–eHealth/Telemetry/Smart appliances

LTE offers a number of strategic pricing
options for monetization of LTE
Pricing of offerings is key upfront, ability to offer LTE at a premium to 3G depends on
2
First movers of LTE
Market challengers (2nd launcher)
Sample Entertainment package offerings
Operator
Price Offering
Operator
Price Offering Plan XS S M L
XL
Bandwidth (Mbps) 0.2 1 7.2 21
100
Price (CHF/month) 59 75 99 129
169

Will LTE users pay more for quality?
Information Security Level 1 – Confidential
© 2015 – Proprietary and Confidential Information of Amdocs
6
QoE drives retention
QoE is a revenue generator
How many would pay more? 40%
for faster download speed
47%
for better data coverage
How many would move and why?
35%
for faster download speed 41% for better data coverage

Need to invest in Quality
Better
QoE
More usage og Application&services Business Development Quality enhance exploitation Users with “buffer free experience”
+226% of video exploitation
“Less than 2s to start video
x4 probability that user will continue to watch the video
Maximize «viewer experience»
+20% revenues for Live Video Provider
“Lost time” Cost (^)
20B$ extimate for 2013- 2017 period

What’s Your Data Worth?
Subscriber Data
CRM, Lifetime value

WHO
Mobile Usage Data
Apps, Search, Browsing

WHAT
Geolocation Data
Position, Pattern

WHERE
The combination of 3 creates greater value

Monetization Efforts With Mobile Network
Geolocation

Monetising data – recent initiatives
Mobile financial services gaining momentum, although Kenyan M-
Pesa success yet to be replicated
GT Bank and Etisalat partner for savings account – May 2015
Nigeria GT Bank and Etisalat have partnered to introduce GTEasySavers, a savings account designed to enable “underbanked” and “unbanked” individuals to achieve their financial goals while operating a regular bank account via their mobile phones. Etisalat subscribers can open a GTEasySavers account by dialing a USSD short code.
Moov enables MFS transactions between 4 West African units – March 2015
Mobile operator Moov has enabled cross-border MFS transactions between Cote d’Ivoire, Benin, Togo, and Niger. Branded “Flooz”, the MFS platform allows users to send and receive up to XOF750,000 ($1,200) per day.
Orange and Airtel partner for cross border MFS in West Africa – March 2015
Orange and Airtel have enabled cross border MFS usage between Cote d'Ivoire and Burkina Faso. This partnership builds on the existing “Orange Money International Transfer” offer, which enables Orange Money customers based in Senegal, Cote d'Ivoire and Mali to carry out cross-border money transfers. Since its introduction in July 2013, the service has been a considerable success with over 200,000 users to date. Airtel Burkina Faso and MTN Cote d’Ivoire had reached a similar agreement in 2Q14.

MTN launches pan-African IoT platform (May 2015) MTN Business rolled out a
pan-African Internet of Things (IoT) platform, providing enterprises with greater
control and advanced management features for their connected devices and SIM
cards. The launch also sees the introduction of a global M2M SIM card, which gives
customers the same rate for M2M activity across MTN’s footprint in Africa. The
new IoT platform is now live in South Africa, with other MTN operating countries
set to follow over the next 12 months.

Spectranet and iRoko partner for
VOD on LTE
Nigerian ISP Spectranet has
partnered with online video service
provider iRoko TV to enable VOD on
Spectranet’s LTE network. As an
introductory offer, existing and new
Spectranet LTE customers will get 30
days free viewing and downloading
on iRoko platform. Subscribers can
access iRoko content by browsing
directly on the provider’s website or
by downloading iRoko’s Android app.
According to Ovum, Spectranet had
a 24% share of the Nigerian LTE
market, estimated at over 400,000
subscribers in 1Q15.

Monetization and service delivery : engagement is
driven by providing relevant and personalized offers
• Customer analytics enriched by real-time
‘trigger’ automates relevant offer to be made
direct to customer’s device
• Using Facebook with no data plan – provide
free Facebook pass – then upsell data
• Roaming with data switched off – upsell
roaming pass
• Watches a lot of Netflix or listening to lots of
streaming music – upsell to next tier that has
bundled TV or Spotify premium next time they
start listening to music
• Watches a lot of videos and stating to watch a
video– offer higher speed tier for HD viewing
• Poor network experience – send apology, or
suggest trying video at off peak time with
discounted rate, or re-allocate at a higher speed
for 1 week (if valuable customer)

Any Questions?

Strategies for Monetizing Mobile Content, Services and Applications in 4G and 4.5G Market

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (20)

Similaire à Strategies for Monetizing Mobile Content, Services and Applications in 4G and 4.5G Market

Similaire à Strategies for Monetizing Mobile Content, Services and Applications in 4G and 4.5G Market (20)

Dernier

Dernier (6)

Strategies for Monetizing Mobile Content, Services and Applications in 4G and 4.5G Market