1. The Future is Mobile
Co nverg ence a nd Teleco m O p era to r B us ines s
D r. K la us M . S teinm a urer (M B A )
IFCL A Co nference 20 10
Co nv erg ence here a nd no w
10 th a n d 11th June 20 10

2. T he Future is M o b ile
Ta b le o f Co ntent Co nv erg ence a nd Teleco m O p era to r B us in
Introduction
Convergence - a question of definition
Convergence - who needs it and why
Convergence - from the customers point of view
Convergence - from the operators point of view
Convergence - a question of IT
Convergence - a bunch of legal problems to discuss
Convergence - a few words at the end
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3. T he Future is M o b ile
Intro d uctio n Co nv erg ence a nd Teleco m O p era to r B us in
The future is mobile ……
So let me start with a short story …
…… to explain what this
headline has to do with the topic
of this conference …
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4. T he Future is M o b ile
Co nv erg ence - a q ues tio n o f d ef nitionv erg ence a nd Teleco m O p era to r B us in
i Co
n
Fixed Mobile Convergence (FMC)
 Seamless switching between cellular and local networks for
mobile users. The operator should be able to offer a customer
mobile and fixed (or fixed like) services seamlessly by
integrating fixed an mobile networks.
Challenge
 The handset has to support TDM technology for the cellular
system and switch instantly to packet based VOIP for the Wi-Fi
network.
Levels of Convergence
 no convergence at network level (MNO offering „fixed like
rates“)
 convergence at network level (f. e. integrated operators)
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5. T he Future is M o b ile
Co nv erg ence - a q ues tio n o f d ef nitionv erg ence a nd Teleco m O p era to r B us in
i Co
n
Mobile to Mobile Convergence (MMC)
 MMC is a technology that facitiates the interoperability of
mobile communication devices without the need for any fixed
capabilities or proprietary service provider.
 MMC is an alternative to conventional cellular and wireless
solutions.
MMC offers features such as
 interoperability with a wide area network (WAN)
 support of dual mode devices
 seamless roaming among Wi-Fi and cellular networks
… a t the end no t m uch d ifference to the
FM C d ef nitio n - o r?
i
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6. T he Future is M o b ile
Co nv erg ence - a q ues tio n o f d ef nitionv erg ence a nd Teleco m O p era to r B us in
i Co
n
… but what would you say about this definition:
B us ines s a nd P riva te L ife Co nverg ence (B P C)
 BPC means getting every information/content/service I want,
everywhere, at any time I want if from every source it is stored by
using any kind of access technology as available.
This kind of convergence focuses on the convergence of services and
mainly takes into account the customers needs. The convergence of
networks is secondary.
… .. rem em b er the s to ry fro m the b eg inn
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7. T he Future is M o b ile
Co nv erg ence - w ho need s it a nd w hy?erg ence a nd Teleco m O p era to r B us in
Co nv
Carriers need it, because
 their old (voice based) business models will not work much longer
 European Telecom Markets stagnate customer wise and shrink
revenue wise while network usage explodes and huge investments to
offer acceptable QoS are necessary.
 Broadband investments (mobile and fixed) must generate additional
revenues
 Convergence is necessary for customer retention in a saturated market
Customers need it, because
 Life (business and private) becomes more and more mobile.
 The days where we had a clear differentation between business and
private life are gone.
 It makes it easier to organize our life.
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8. T he Future is M o b ile
Co nv erg ence - fro m the cus to m ers p o int ond Teleco m O p era to r B us in
Co nv erg ence a
f v iew
EA S Y
S P EED
M O B IL IT Y S E R V ICE
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9. T he Future is M o b ile
Co nv erg ence - fro m the cus to m ers p o int ond Teleco m O p era to r B us in
Co nv erg ence a
f v iew
Convergence from the Consumer Perspective
Fixed Mobile Convergence from the Consumer Perspective
content access
mobile fix
media
one bill one discount one point of contact
services
customer
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10. T he Future is M o b ile
Co nv erg ence fro m the cus to m ers p o int encef ndvTeleco m O p era to r B us in
Co nv erg
o a iew
O FFICE
N T E R TA IN M E N T O W N CO N T E N T
IN T E R N E T B OOK S
M U S IC N E W S (P R IN T )
V O ICE N E W S (T V )
V ID E O
O ne s erv ice fo r a ll s creens - Co nv erg ence cha ng es the
va lue cha in 10

11. T he Future is M o b ile
Co nv erg ence fro m the cus to m ers p o int encef ndvTeleco m O p era to r B us in
Co nv erg
o a iew
What customers expect from convergence?
 lower costs
 higher mobility
 personalized services
 easy handling
 better service
Why many convergent services carriers offered till now failed?
 they did not focus on the customers needs but focused on
technology
This might have a huge impact on the future business of carriers who
loose their position in the value chain to Apple & Co.
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12. T he Future is M o b ile
Co nv erg ence - fro m the o p era to rs pCo nv erg ence a nd Teleco m O p era to r B us in
o int o f v iew
Fixed Mobile Convergence from the Operators Perspective
Integration
Convergent
Network
Convergent
Devices
Convergent
Services
Bundling
Cross Selling
Time
actual status 2010
This figure shows the most common approach of convergence in
todays operator
business. It is mainly focused on the convergence of fixed and
cellular access
technologies. In Europe this kind of convergence is the new strategy
of the former incumbents who own both kinds of infrastructure.
Mergeing the former devided business units is the actual tendency. 12

13. T he Future is M o b ile
Co nv erg ence - fro m the o p era to rs pCo nv erg ence a nd Teleco m O p era to r B us in
o int o f v iew
The real challenges for carriers in the future do not depend on the
access technology. The real challenges are:
 potential corporate agenda clashes
 spectrum usage and business models (investment needs)
 corporations/alliances with media firms
 different expectations and business models
 competition and market power
 off deck and on deck models
 navigation
 customer acquisition and retention
 regulatory impacts
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14. T he Future is M o b ile
Co nv erg ence - fro m the o p era to rs pCo nv erg ence a nd Teleco m O p era to r B us in
o int o f v iew
Those operators who have access to mobile and fixed
technology have an advantage in the future game for
additional revenues but those operators who are able to
manage the prediscussed questions first in favour of their
customers will lead the game independent of the access
technology they use to offer convergent services.
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15. T he Future is M o b ile
Co nv erg ence - a q ues tio n if IT a nd o utsenceurcing O p era to r B us in
Co nv erg
o a nd Teleco m
To make convergence reality in the market, operators have to handle
huge IT-challenges
 content management
 service management
 access management
 billing
Up to now most operators have an IT landscape which is able to
operate more or less their old businessmodel but convergence
demands a significant change (and investments).
Therefore operators have to
 rethink existing business models
 reorganize their existing business processes
 develop integrated services and drive standardisation to secure
interoperability 15

16. T he Future is M o b ile
Co nv erg ence - a q ues tio n if IT Co nv erg ence a nd Teleco m O p era to r B us in
O utco urcing O p p o rtunity
E x terna l Content Services Content
S o urce
3rd parties customer owned
S ta nd a rd is a tio n Is s ue
s etw o rk lev el
Integ ra ted IT
s erv ices o n
IT S erv ices
I N F R A S T R U C T U R E
O ne S erv ice fo r
a ll s creens
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17. T he Future is M o b ile
Co nv erg ence - a b unch o f leg a l p ro b lem s ato m O p era to r B us in
Co nv erg ence nd Teleco
d is cus s
To bring convergence to life and operate a sustainable business
model a bunch f legal questions have to be solved before
 Different Termination Rates for fixed on mobile services
 Spectrum usage & Financial Services
 Licensing
 Third Party Contract Management
 Intellectual Property Rights
 Quality of Service
……………..
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18. T he Future is M o b ile
Co nv erg ence - a few w o rd s o f the end ence a nd Teleco m O p era to r B us in
Co nv erg
 Convergence now is still at the beginning
 Closing the gap between technology focus and customer centricity
will be essential for a break through
 The solution for a sustainable business model will be found in the
future IT services and not in the access technology
 Listening to the customer is key to develop the right IT-tools
 To make the world convergent and to find the right place in the
future value chains operators have to define their investment
strategies for the near future
…….. and do not forget, every business model in a convergent
world will be customer driven.
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19. T he Future is M o b ile
Co nv erg ence a nd Teleco m O p era to r B us in
T ha nk yo u fo r yo ur a ttentio n
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