This document discusses various challenges faced by telecom operators in evaluating new service ideas from external partners and developers. It notes that operators often reject ideas due to unrealistic requirements around devices, customers, integration, processes and budgets rather than considering the merits of the idea itself. Roadblocks include outdated thinking, reluctance to experiment, complex approval processes and organizational silos within the operator.

1. Staring into the Abyss

2. $$$?

3. ISP

4. OTT VoIP to cost telcos $479b to 2020.
— Ovum

8. Now buy our reports and bespoke research – even though
we’ve never worked in a telco or supplier, we know your
business better than you! — Consultants and Analysts

9. Reports of declining SMS revenue are wrong;
annual revenue will exceed 2010 levels until
2017. — Portio Research
We’re in a very fortunate position, our customers
are addicted to the internet, they keep using
more and more. — Alan Quayle

10. >50%

11. 70%

12. 1900%

18. But isn’t KakaoTalk killing SKT?

20. The Brain Handles Positive and
Negative Information in Differently
“The brain handles positive and
negative information in different
hemispheres. Negative emotions
generally involve more thinking, and
the information is processed more
thoroughly than positive ones.” said
Professor Nass, Stanford University

28. KakaoTalk ChatON MyPeople Naver LINE
Free text yes yes yes yes
Free call yes no yes yes
Voice message yes yes yes yes
Send picture yes yes yes yes
Send video yes yes yes yes
Send… Contact
Contact, animation
message, calendar,
document, location
Contact, cloud,
location
Contact, location
Stickers and
emoticons
Basic ones for free,
everything else
additional charges
free free
Basic ones for free,
everything else
additional charges
Popup message ? yes yes yes
Language support 12 languages 60 languages Korean, English 9 languages
Available for
Android, iOS,
Windows Phone,
Bada OS, BlackBerry,
PC (June ’13)
Android, iOS,
Windows Phone,
Bada OS, BlackBerry,
web page
Android, iOS, and PC
Android,
iOS, Windows Phone,
BlackBerry, PC
Special features
•Create your own
theme for iPhone
and Android
•Plus friend (content
from your favorite
Kpop band)
•Animated messages
(scribble)
•Choose bubble
styles
•Broadcast
•Shake it to connect
•Bot friend •Send music

29. © 2013 Alan Quayle Business and Service
Development
29
How Operators Feel

30. © 2013 Alan Quayle Business and Service
Development
30
How Operators Act

31. MBA BS!

32. Partnership?

33. Partnership?

34. Losers!

35. Wholesale? This is Retail!
Customers
Direct
Relationship

36. This is also Retail
Customer Relationship = Survival

37. Fixed
Voice
($325B)
Mobile
Voice
($615B)
Fixed
Data
($275B)
Mobile
Data
($275B)
Regulated
Services
($1.5T)
Un-
regulated
Services
($650B)-5 to -7%
5.5 to 9%
3 to 4%
0 to 2%
0-2%
Total Telecoms
Services
($2.15T)
3-6%
+ =
Over the Top Messaging
hits SMS growth
Mobile substitution of fixed
broadband with LTE
OTT substitution,
saturation, competition
Mobile and OTT
substitution
Sources: operator averages across developed and developing markets, supplier estimates, Alan Quayle
1-3.3%
Threats to Revenue

43. Brown-Nosed
Middle
Manager!

44. Market Chatter
is Monopolized

45. Mobile
Everything,
WebRTC

46. Customers
Services

47. Fixed
Voice
($325B)
Mobile
Voice
($615B)
Fixed
Data
($275B)
Mobile
Data
($275B)
Regulated
Services
($1.5T)
Un-
regulated
Services
($650B)-5 to -7%
5.5 to 9%
3 to 4%
0 to 2%
0-2%
Total Telecoms
Services
($2.15T)
3-6%
+ =
Over the Top Messaging
hits SMS growth
Mobile substitution of fixed
broadband with LTE
OTT substitution,
saturation, competition
Mobile and OTT
substitution
Sources: operator averages across developed and developing markets, supplier estimates, Alan Quayle
1-3.3%
Threats to Revenue
There’s just 2 things we need to focus on

48. Make Telecoms an Essential Spice for every Business Recipe

49. Do more VAS!

50. This is Nature. Crawl, Walk, Run!
Not, Create some PowerPoint
& Go Big Game Hunting.

52. No. We tried a similar
service in our market
and it failed, and we’re
never ever going to try
again
What do you think of this service idea?

53. No. It will not work in
our market. Because
I’m a 50 year old guy
who understands all my
customers better than
they know themselves.
What do you think of this service idea?

54. No. A feature of your
service overlaps with an
existing.
What do you think of this service idea?

55. No. We have a similar
service launched, and
are not going to
experiment in trying to
make it better or
address other customer
segments.
What do you think of this service idea?

56. No. Our network can
not support such as
service, even though
such services are going
over the top today.
What do you think of this service idea?

57. No. It looks a bit like
Joyn, which we’re not
sure about, but because
it looks a bit like
something we may do
in the future we’re not
going to do it.
What do you think of this service idea?

58. No. It must work across
all devices, even though
most devices will never
use it.
What do you think of this service idea?

59. No. We need additional
(random) features
included before we
could consider it.
What do you think of this service idea?

60. No. It must work on
IMS (even though it
doesn’t need to).
What do you think of this service idea?

61. No. It must work across
all our customers from
day one, even though
most will never use it.
What do you think of this service idea?

62. No. It must conform to
our process and design
norms. But we’re not
going to tell you what
they are, and you’ll
have to build them in
on your dime.
What do you think of this service idea?

63. No. It must integrate
with all our existing
platforms, even though
it can work fine in the
current configuration.
What do you think of this service idea?

64. No. It must be delivered
through our preferred
SI or NEP, who will copy
/ kill the service
immediately.
What do you think of this service idea?

65. No. You must work
through our app store /
portal, which we’re in
the process of closing.
What do you think of this service idea?

66. No. We can only focus
on 4 service launches
per year. We only back
major successes like
Video Telephony,
Mobile TV, Push To Talk,
See What I See…
What do you think of this service idea?

67. No. We just don’t have
the bandwidth, to do
our job.
What do you think of this service idea?

68. No. We have a network
lock-down as we launch
LTE so cannot do
anything for the next 6-
9 month.
What do you think of this service idea?

69. No. Bob has left the
business and we’re
waiting on his
replacement, who
never comes.
What do you think of this service idea?

70. No. We’re waiting on
annual budgets to be
confirmed, sometime in
the next 6-12 months.
What do you think of this service idea?

71. No. We’re re-organizing
again this year.
What do you think of this service idea?

72. No. Someone in the
organization doesn’t
like such services.
What do you think of this service idea?

73. No. That cannot be
implemented without
changing our IN /
product catalog / CRM /
billing / network.
What do you think of this service idea?

74. No. We cannot bill / sell
services under $5 per
month.
What do you think of this service idea?

75. No. We have a backlog
of 24 months on billing
updates, even though
the service doesn’t
need to be in that
pipeline.
What do you think of this service idea?

76. No. You must work
through our innovation
group who we all hate
and ignore as they’re
parasites on our
business.
What do you think of this service idea?

77. No. You must talk with
Bob who will then pass
you to Bill, who will
then pass you to Mary,
who will then pass you
to Paul, who will then
pass you back to Bob.
What do you think of this service idea?

81. Telecom Application Developer EcosystemRevenue
Product
Internal Telco Developers
Partner Developers
Telecom App Developers
Mobile App Developers
Long Tail Developers

82. www.tadsummit.com