MWC 2017 by GSMA

1. Marco
Galvan,
GSMA

3. Lines Between Mobile Web And Apps Will Start Blurring
• Consumers will continue to spend their time in fewer apps, turning their attention
especially to messaging apps that will progressively become application ecosystems on
their own.
• However, the gap between mobile Web and app experiences will slowly start shrinking
and it will be easier to move between these environments.
Mobile Will Enable Brand Innovation With Artificial Intelligence, Virtual Reality, And
IoT
• Artificial intelligence (AI), virtual reality (VR), and the Internet of Things (IoT) are key
technologies going way beyond the mobile space. In 2016, smartphones will activate
them and enable B2C marketers to innovate.
Trends

4. Few apps will get most of users’ time, and messaging apps will morph into platforms.
• On average, Uk and US consumers use an average of about 25 apps per month. However, the average
smartphone owner spends more than 88% of his time on just ve downloaded apps (see Figure
• When observing the distribution of all US and Uk smartphone minutes spent on apps in each market,
messaging and social media apps make up a sizable chunk of all the app time spent on smartphones
— not gaming, as is commonly assumed
• Messaging apps like WeChat or Facebook Messenger will increasingly morph into marketing and
commerce platforms and emerge as alternative ecosystems to Android and iOS as brands look to serve
existing customers in context and developers ock to platforms with large audiences.
Action for marketers
• Create a strategy for “borrowing” mobile moments.
• In 2017, smart marketers will borrow their way to customers’ home screens by partnering with one of
the small number of apps that command the majority of consumers’ mobile prime time.
• Don’t just think media buys, but embed your services in other apps like hotel group AccorHotels is doing
by seamlessly integrating Uber’s car sharing service in its customers’ journeys.
• For example, if you are a global brand investing in China, you must deeply understand the WeChat
phenomenon and how it can be used to reinvent consumer relationships and a social CRM platform.
Trends

5. $44BUSD
Analysts Forecast for
Messaging as a
Platform by 20201
Proprietary + Confidential
Sources: 1) Pacific Crest Securities, “Messaging is a $44B Annual Rev Opportunity.” Ben Wilson, April 29, 2016. 2) TechCrunch, “Forget Apps, Now The Bots Take Over.” September 29, 2015.
2
Messaging is the Platform

6. § MaaP enables communications services between third-
party businesses such as applications, content and
service providers and consumers.
§ MaaP provides an interactive way of connecting
directly with customers, offering a similar experience to
conversing with a human agent or employee from a
service-based organization.
§ Operator messaging is particularly well placed to play
a role in MaaP as operators have a pre-existing
relationship with customers based on secure identity
and billing information.
§ According to Messaging Ecosystem Forum’s (MEF)
messaging report, 65% of consumers communicate
with businesses on chat apps; increasing to 76%
globally via SMS with 5% CAGR expected.
6
MaaP:
Business
opportunity
and
customer
relevance

7. AUTOMATION
is next frontier
Intelligent
Devices
Robotics
In
the
Home Drone
Delivery
Driverless
Cars

8. Explosion in AI USES
Artificial
Intelligence
Personal
Assistants
Speech,
Image
and
Video
RecognitionRobotics
Logistics
Virtual
Augmented
Reality,
Computer
VisionGaming
Machine
Learning
Surgery
and
Healthcare
Contextual
and
Recommendations

9. GROWTH IN AI INVESTMENT…
Opening a door to the post-smartphone era
AI to drive
engagement
AI cloud to replace
devices
Integrating AI
seamlessly
AI-­centric
strategy
Key
playersIn
last
year
Source:
GSMA,
CB
Insights
Key
Impact
CVC M&A
Role
of
computing:
on
device,
in
cloud
Distributed
network
opportunity
Value
in
exploitation
of
data/attributes
IoT
IoT complexity
unresolved
Battleground
for
access
to
identity
+53%
yoy
Venture Capital
$2.3bn
“Last 10 years were about
building a mobile-­first world,
next 10 years, is towards a
world that is AI-­first”
– Sundar Pitchai

10. 10
20202018
AI
enabled
Age
of
automation
and
the
connected
life
Age
of
digital
transformation
2012 2016
Cortana
Whatsapp
Wechat
IBM
Watson
Facebook
MApple
Siri
Google
Now
2014
... AND AI STARTUPS
Opening a door to the post-smartphone era

11. Artificial Intelligence is the key transformational technology
AI plus cloud is opening a door to the post-smartphone, post-app era
AI to drive
engagement
AI cloud to replace
devices
Integrating AI
seamlessly
AI-­centric
strategy
Key
playersIn
last
yearKey
Insights
“Last 10 years were
about building a mobile-­
first world, next 10
years, is towards a
world that is AI-­first”
Role
of
computing:
on
device,
in
cloud
Distributed
network
opportunity
Value
in
exploitation
of
data/attributes
IoT complexity
unresolved
Empowers
probabilistic
identity
models
709 deals
Venture Capital
$4.2bn

12. Artificial Intelligence
Venture capital and M&A reach unprecedented levels
Venture Capital is Fuelling Transition to Automation Major Players on an M&A Spree
AI
enabled
Age
of
automationAge
of
digital
transformation
2012 2016
Cortana
Whatsapp
Wechat
IBM
Watson
Facebook
MApple
Siri
Google
Now
2014 2012 201620152013 2014
Age
of
automation
Age
of
digital
transformation
AI
enabled

13. Conversational platforms are key to the post-app economy
Voice as a new interface in the human-machine interaction
Siri
October
2011
Cortana
April
2014
M
August
2015
(beta)
Google
Assistant
August
2015
(beta)
Echo
Tap
Echo
Dot
June
2015
March
2016
Aldebaran
Robotics
and
SoftBank
June
2015
• Using
voice
as
an
interface
liberates
users
from
the
constraints
of
screens
• Voice
interfaces
can
be
a
‘dumb’
terminal,
with
connectivity
allowing
users
to
access
intelligence
in
the
cloud
Tapia
May
2016

14. Video-ification of the Internet is happening
Moving towards a video-first Internet world
Video-­‐first
strategy
Advertising
(high
consumer
engagement)
Education/training
Healthcare
Entertainment
Commerce
Smart
cameras
VR/AR
High-­‐speed
networks
Deep
dive
in
the
January
2017
Radar
report
We
see
a
world
where
video
is
first,
with
video
at
the
heart
of
all
of
our
apps
and
services.
Within
five
years
or
so,
most
of
what
people
consume
online
will
be
video,
subsuming
words
and
photographs.
Mark
Zuckerberg
Enablers
Emerging
use
cases

15. Preparing for the NEW WAVE
Prepare
for
AI
and
Automation
Horizontal
Approach
Product?
or
Platform?
Focus
on
future
consumer
needs
Understand
your
control
points

16. Sources: Active Users: 1) Analysys Mason (2015), 2) Radicati Group (2014), 3) Statista (2016), 4)
Nexmo (2015).
Worldwide Communication Platforms
Ranked by Active Users (Millions)
Carriers still have the Largest Platfrom

17. TODAY FUTURE
Branding:
name, logo
Rich card
Suggested replies
Analytics for
business
A2P

18. A2P SMS is the world’s
most successful bot
platform.
Forecasted 2.21 trillion A2P
SMS messages in 2017 (31%
of all SMS traffic).
Bank: suspicious
transaction alert
Airline: boarding pass
A2P SMS
Proprietary + Confidential

19. ● Welcome Users
● Send Alerts
● Customer Care
● Sell Services
Proprietary + Confidential
MyTelco BOT

20. 20
Wide
Industry
Support
OPERATORS
who
have
Launched
RCS
29
Launched
Operators
Albania
Telekom
Albania
(OTE),Albania
Vodafone,
Canada
Rogers,
Czech
Republic
Vodafone,
Greece
Vodafone,
Greece
Cosmote Hungary
Vodafone,
India
Reliance
Jio,
Indonesia
XL
(Axiata),Ireland
Vodafone,
Italy
Vodafone,
Korea
KT,
SK
Telecom,
LGU+;
Malta
Vodafone,
Netherlands
Vodafone,
New
Zealand
Vodafone,
Portugal
Vodafone,
Romania
Orange,
Romania
Telekom,
Vodafone
Romania,
Orange
Slovakia,
Slovakia
Telekom;
MTS,
SingTel,
Vodafone
Turkey,
Vodafone
United
Kingdom
AT&T,
T
Mobile
USA,
Sprint
The Universal Profile is a
GSMA led initiative backed
by 60 global operators,
manufacturers and OS providers
IP
COMMUNICATIONS
LAUNCHES
INTERCONNECTIONS
Operators
planning
to
launch
RCS
in
2017
Argentina:
Claro;
Australia:
Optus,
Telstra;
Canada:
Telus,
Bell
(BCE),
China
Mobile
(already
in
soft
launch),;
Colombia:
Claro;
Softbank;
Mexico:
Telcel;
Norway:
Telia,
Telenor,
Ice;
Netherlands:
KPN;
Peru:
Claro;
Philippines:
Globe;
Russia:
Vimpelcom;
Sweden:
Telia,
Telenor,
Three,
UAE:
Etisalat;
23

21. OS
PROVIDERS
21
Partner
Engagement
and
Roadmap
HANDSET
MANUFACTURERS
The
majority
of
Android
OEMs
are
shipping
with
Android
Messages
natively:
LG,
Motorola,
Sony,
HTC,
ZTE,
Micromax,
HMD/
Nokia,
Archos,
BQ,
Cherry
Mobile,
Condor,
Fly,
General
Mobile,
Lanix,
LeEco,
Lava,
Kyocera,
MyPhone,
QMobile,
Symphony,
Wiko
Samsung exclusively
uses
its
own
RCS
Universal
Profile
client,
which
will
be
native
in
all
Samsung
devices
form
mid-­‐2017.
In
testing
(Mexico
and
Slovakia)
it
interoperates
with
Google
hosted
platform
and
clients.
Huawei,
Vivo
and
Oppo assessing
options
before
deciding
on
path
Android Messages
(RCS
and
SMS
client)
now
ships
with
the
Android
software
to
all
Android
OEMs
Android
P-­‐release
(2018)
will
introduce
RCS
APIs
to
the
Android
API
library
enabling
single
IMS
registration
and
more
OEM
control
of
RCS
UI
Microsoft committed
at
MWC
to
continue
to
support
RCS
when
they
re-­‐enter
handset
OS
market.
Apple
meetings
have
intensified:
Verizon
/
other
major
MNO
requests
for
RCS
support,
plus
poor
UX
on
SMS
fall-­‐back
may
yield
results
in
2018
NETWORK PROVIDERS
All on-­premises and hosted vendors are
committed to Universal Profile
Google are deploying Universal Profile
to their platform in releases
ZTE provide hosted system for China
Mobile and China Telecom (China pre-­
Universal profile) and are currently
awaiting accreditation for Universal
Profile (mid 2017)
Samsung will launch hosted service
(NewPace acquisition) in June 2017
Other vendors of on-­premises
equipment are WIT, Ericsson, Huawei,
Mavenir.
See All IP business guide for full details

22. § Eroded P2P messaging revenues have been
supplanted by A2P (application to person) SMS
services which continue to see strong growth and are
seen as precursor to Messaging as a Platform
§ Application–to-Person (A2P) services, are being
upgraded by adding richer message functionality via
RCS and a diverse and more flexible range of
functions that can be taken over by Chatbots.
Chatbots will grow as functionality improves.
§ A2P SMS provides operators with an opportunity to
migrate their SMS traffic to enriched RCS based
messaging and then further into Chatbots. This is a
huge market -The global A2P share of SMS traffic
has nearly doubled in the last five years from 11.7 per
cent in 2010 up to 22 per cent in 2015 and over.
22
Messaging
as
a
Platform:
Opportunity
GSMA
forecast
for
Messaging
as
a
Platform
by
2021
$74bn
USD
Messaging
is
transforming
to
a
personal
assistant
Removes
the
barrier
of
another
app
to
download
2
http://www.mobilesquared.co.uk/blog/
mobilesquareds-­‐latest-­‐databook-­‐says-­‐mobileoperators-­‐key-­‐to-­‐unlocking-­‐massive-­‐a2p-­‐messagingopportunity/

23. Age
of
industrialisation
(offline,
physical
world)
Age
of
digital
transformation
(internet,
information
and
digital
services)
Age
of
automation
(Artificial
Intelligence,
machine
learning,
Internet
of
Things)
Entering the age of AUTOMATION
…1970 1980 2000 2020 2030…1990 2010

24. FIVE MEGATRENDS
driving this transformation
Geographic
shift
in
growth
and
innovation
Internet
=
mobile Platform
economy
Shift
to
open
–
access
and
networks
Device
ubiquity
Artificial
Intelligence
– a
catalyst
that
will
accelerate
the
pace
of
these
trends

25. GEOGRAPHICAL SHIFT
to emerging markets
Top
10
countries
in
terms
of
projected
NEW
mobile
subscribers,
2015-­‐20
Note:
the
size
of
the
stacked
bar
equals
the
total
number
of
unique
mobile
subscribers
in
a
country
by
2020
(e.g.
India
=
864m)
Source:
GSMA
Intelligence,
IMF
0
200
400
600
800
1000
1200
1400Million
Mobile
subscribers
(2015) New
mobile
subscribers
(2015-­‐20)

26. 0
1
2
3
4
5
Billion
People
Online
1995 2000 2014 2020
Internet =
MOBILE
Mobile
Internet
Users Smartphones
Source:
GSMA,
a16z
Smartphones
=
installed
base,
not
unique
users
0.2bn
0.4bn
2.9bn
4.7bn
5.7bn
2.0bn

27. Connected device
EXPLOSION COMING
Connected
devices
worldwide
0
5.000
10.000
15.000
20.000
25.000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Installed
base
(million)
Source:
GSMA
Intelligence,
Cisco,
Forrester,
Analysys Mason,
Machina,
Gartner
Smartphone
Tablet
PC
Wearables
IoT – cellular
IoT –
non-­‐cellular

28. Rise of PLATFORM ECONOMY
‘Platform beats product’
1M
DEVELOPERS1BN
USERS
Anchor:
messaging
Ecommerce
Games
&
Media
Advertising
Horizontal
Platform
LOCAL
MONOPOLY
-­‐ GLOBAL
MARKET
FRAGMENTATION
NOT
ALL
PLATFORMS
ARE
THE
SAME!

29. Rise of PLATFORM ECONOMY
‘Platform beats product’
650K
HOME
OWNERS 100M
TRAVELLERS
Match
supply
/
demand
Safety
checks
Billing
engine
GLOBAL
MONOPOLY
– LOCAL
CHALLENGES
HOUSE APARTMENT OTHERS
NOT
ALL
PLATFORMS
ARE
THE
SAME!

30. OPERATORS
riding platform wave
SERVICE
PROVIDERS5BN+
CONSUMERS
GLOBAL
SCALE
THROUGH
COLLABORATION
NOT
ALL
PLATFORMS
ARE
THE
SAME!
Advanced
Messaging
Identity
IOT

31. PLATFORMS
are reshaping many industries
Verticals
HOTELS
TRANSPORT
COMMS
ENERGY
FOOD
DELIVERY
taxis
sms &
voice
restaurants
energy
companies
hotels
FOOD
PRODUCTION
HEALTH
EDUCATION
INDUSTRY
INFORMATION
farms
doctors
universities
libraries
factories

32. HORIZONTAL PLATFORMS
consolidates value
Moving
from
Sector
Specific
platforms
to
Horizontal
platforms
creating
two
sided
digital
marketplaces
VERTICAL
PLATFORMS
HORIZONTAL
PLATFORMS
Device management
Storage Discovery Aggregation Harmonisation Security
Analytics
Devices
Connectivity
Services Taxi,
Logistics,
Food,
Health
Mapping,
Routing
Algorithm
App,
Driver
Platform
’Full
Stack’
tech
Device/Service
API

33. New PLATFORMS are coming
Voice,
Car,
Virtual
Reality:
Autonomous
cars,
platform
for
entertainment,
distribution,
work
CAR
Immersive
content
becomes
next
communications
platform
AI
driven
interface
between
man
and
machines
VOICE
VR

34. 34
ALTERNATIVE NETWORKS
Open, alternative connectivity on the rise
Mesh networks for internet sharing
People powered networks
Open Garden
Disrupting legacy infrastructure
Cheaper to scale
Facebook TIP
New wholesalers for network access
Alternative Access
Google Loon

35. 35
Achieved
Accuracy
• Resolved
network
problems
• Enhanced
operational
control
• Constant
over
country
coverage
Capacity
Reseller
• Licence
as
MVNO
• Wholesale
capacity
to
MNO
• Last
mile
access
“Significant
progress
in
Loon
over
the
past
year.
Loon
could
provide
connectivity
“200x
cheaper
than
traditional
towers”
– suitable
for
low-­‐
density
rural
areas”
-­ Google X
Project Loon
Google
has
matured
the
Loon
solution
to
position
it
as
a
MVNO
last
mile
access
provider
that
will
lease
capacity
back
to
MNOs.
GOOGLE: LOON
Connectivity that is “200x cheaper than traditional towers”

36. RealityPublic
Message
“Aims
to
improve
network
performance
and
reduce
costs
in
an
open
collaboration
methodology,
seeks
to
deploy
new
ideas
efficiently
at
large
scale.”
-­Facebook
Telecoms Infra Project
Improve network
performance
Reduce costs
Open
collaboration
Deploy ideas
at large scale
1
2
3
4
Commoditisation,
disrupting legacy
backhaul, access, core
Use open source
to scale faster
Holistic approach
to cost efficiency
… not just about
emerging markets
1
2
3
4
FACEBOOK: TELECOM INFRA PROJECT
Open sourcing to innovate the backhaul, access and core

37. “P2P data can move through the
network without using spectrum,
and at no cost. The phone
becomes an end point and the
impact on battery is negligible.
250m endpoints by 2017”
-­OpenGarden CEO
Connects
smartphones and
lets users share
data without
net access
Data hops from
one device to
another until it
reaches an
internet endpoint
Powered by
developers,
MeshKit
connects apps
of different types
Poor coverage
areas, but
density enables
data rich services
3G
/4G
FEMTOCELL Partner
WIFI
network
Open
Garden
WIFI
community
OPENGARDEN
Unbundling spectrum via mesh and Wi-Fi networks

38. Next wave of INDUSTRIAL REVOLUTION
moves from digital transformation to automation
ENABLERS
…1970 1980 2000 2020 2030…1990 2010
Age
of
industrialisation Age
of
digital
transformation Age
of
automation
Connectivity
Cloud
Computing
power
Analytics
Artificial
intelligence
(AI)
Software
Smart
phones/devices

39. Impact of automation is SIGNIFICANT
Reshaping
industries,
emerging
new
players
Change
in
way
services
are
delivered
and
consumed
Challenge
to
jobs
through
automation
Speed
of
change
likely
to
be
exponential
Changing
role
of
government
when
information
is
ubiquitous
Requirement
for
new
regulation
Significant
reduction
in
hard
assets?
Consumer
trust
in
automation?

40. Megatrends
Ten megatrends were discussed by the community throughout 2017…
Communications
Unbundling Software
Defined
Infrastructure
Alternative
Networks
1 2 3
Business
Models
Customer
Experience
Platforms Security
&
Privacy
4 5 6
Products
and
Services
Data
Analytics
&
AI
IoT Devices Digital
Trust
Virtual
Reality
7 8 9 10

41. The ecosystem is evolving to platform-first approach
The march to 1 billion users is getting shorter…
Windows
Office
Search
Gmail
Maps
YouTube
Android
Chrome
Play
Facebook
Groups
WhatsApp
‘86 ‘88 ‘90 ‘92 ‘94 ‘86 ‘96 ‘00 ‘02 ‘04 ‘06 ‘08 ‘10 ‘12 ‘14 ‘16
Time
(Years)
25.8
21.7
12.0
11.8
7.3
8.1
5.8
6.7
6.9
8.7
11.3
6.8
…and
platforms
drive
faster
consumer
adoption
and
exponential
business
growth
WeChat 6/7
Source:
GSMA,
Visual
Capitalist

42. Two sided digital marketplaces are now driving value capture and
consolidation
Device
management
Analytics
Devices
Connectivity
Services
+
Vertical Platforms Horizontal Platforms
Storage Discovery Aggregation Harmonisation Security

43. Platforms are disrupt multiple industries
New use cases and players emerge
Use
Cases
and
Players
FINANCIAL
SERVICES
HEALTH
EDUCATION
INDUSTRY
INFORMATION
money/
payment
doctors
universities
libraries
factories
HOTELS
TRANSPORT
COMMS
ENERGY
FOOD
DELIVERY
taxis
sms &
voice
restaurants
energy
companies
hotels $

44. Marco Galvan
mgalvan@gsma.com
Thank you
Contact