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• Long-standing Experience in Telecoms
• Chairman and Keynote Speaker in
various World Telecoms Events
• Project Manager a...
4
Mobile VAS and Multimedia Ecosystem and
Value‐Chain over 4G and 4.5G Network:
Key Drivers and Critical Success Factors
N...
Driving Mobile VAS Adoption and Creating a Sustainable
VAS Proposition in New Mobile Generations
Exploring Mobile Apps Cat...
CONTENT & AGENDA – III / III
Deploying Value-Added Service (VAS) Applications
over LTE Network as an Advantage against Ove...
Mobile VAS and Multimedia Ecosystem and
Value‐Chain over 4G and 4.5G Network:
Key Drivers and Critical Success Factors
By ...
Objectives
• Understanding Today’s Challenges of Operators
• What are the Global Market Developments
• Learning about the ...
Agenda
• 4G and 4.5G as the Next Uplift of Growth
• The Evolution of Digital Technologies
• Global Mobile Data Traffic Gro...
Definition of Value-Added Service (VAS)
A value-added service (VAS)
•is non-core services i.e. all services beyond standar...
4G and 4.5G are bringing the next uplift of
growth
Today, Telecommunication industry is in data–centric world …
MNOs to re...
The Evolution of Technologies
1970 - 80 1990 2000 2010 2020 2030
Early
Information
Systems
Mobile
Number
Connected
Objects...
Some key trends observed over the last year
6
Rise of the second device 1
Mobile penetration has crossed 100% in many of t...
The big problem for the mobile industry…
Copyright Disruptive Analysis Ltd 2014
June 2014
0
200
400
600
800
1000
1200
1400...
Today’s Challenges of Operator
IT/Network Convergence
Improve and Enrich Customer Experience Rapid service launch and ove...
Monumental Disruption by 2020
9 billion
people on
the planet
collaboration
will be
KEY
Internet is the
dominant
delivery
m...
Global Mobile Data Traffic Growth: Mobile
Video Will Generate Three-Quarters by 2020
Cisco Forecasts 30.6 Exabytes per Mon...
Global Mobile Traffic by Connection Type
Ali.Saghaeian [at] gmail.com
LTE users – what’s important?
New opportunities, new challenges
69% say Internet access has to work at all times from ever...
Global market developments
Customers would rather spend money for content than connectivity,
putting pressure on telcos – ...
APAC Telecom revenues: Increasing data
consumption will drive the revenues
3 Source: Frost & Sullivan analysis
2013
2018
2...
Possible changes in the value chain also adds
a new level of uncertainty
Creation Packaging
Distribution Access Devices
En...
Data is the key to creating value and competing
– in all parts of the media value chain
Advantage from data in media
Conte...
Mobile Operators Business Model Evolution
Number and structure of network parameter have become large and complex…
..e.g. ...
Understand and anticipate the strategies of other
players in the value chain
Communication services business models
[Sourc...
DIGITAL ECONOMY to create top value
Operators must operate the 4 “complexity dials”
beside handling the continuously growi...
Smart Pipe VAS Strategy!
Retention / fight churn!
Create new revenue models!
Create communication channels!
Acquire new us...
New Evolving Ecosystem
Ali.Saghaeian [at] gmail.com
4
Mobile VAS and Multimedia Ecosystem and
Value‐Chain over 4G and 4.5G Network:
Key Drivers and Critical Success Factors
N...
New Service Development and
Service Delivery Innovation in
Mobile VAS and Multimedia
By ALI Saghaeian
Chief Analyst & Cons...
Objectives
• How to Support various types of Digital Services
• Service Delivery Innovation in Mobile VAS and
Multimedia
•...
Agenda
• Digital Transformation for Mobile Operators
• Most popular lines of Business by 2017
• New Service Development: T...
Digital Industry Transformation for Mobile
Operators
Ali.Saghaeian [at] gmail.com
Market is Evolving and Convergence is a
Starting Point
•Highly fragmented market to be unified either by consolidation or ...
Supporting various types of Digital Services
Digital Services Provider Rich media •TV •Games •Music •Video Commerce and fi...
New Product Rollouts
› Currently mostly offering value-added services and roaming services
› New targets for increased rol...
New Service Development: Telecom
Operators’ Value over Time
CEBP: Communications Enabled Business Processes
Opportunity: E...
Hard Times for Telcos
Ali.Saghaeian [at] gmail.com
Mobile is the ONLY Media Time on the Rise
US Consumer Media Consumption
5%
TV
Online
Radio
Print
Other
Mobile
45%
43%
42%
...
Time Spent on Mobile is Growing
Ali.Saghaeian [at] gmail.com
Media Time spent per screen: Mobile on top!
Nigeria 193 mobile minut es 43% of media t ime
SA 127 mobile minut es
29%
K en...
Voice is Becoming Cool Again…
“Wi-Fi First”
Multi-Device
Multi-mode Communication
WebRTC, CaaS
Ali.Saghaeian [at] gmai...
VoIP, Wi-Fi calling, VoWiFi and RCS/VoLTE:
Voice is getting cheaper and richer
•Multi-device
•Enriched calling
•Extends re...
VoLTE as a QoS Enabled Services:
VoLTE is a QoS enabled LTE service
•VoLTE driven by service improvements and/or operator ...
VoLTE –Key Take Aways
Ali.Saghaeian [at] gmail.com
Voice over WiFi Evolution (Monetizing VoLTE)
IMS Over Internet
IMS-based Mobility
UMA devices
IMS Client
Embedded VoLTE/Vo...
Rogers started down the VoLTE path 4 years ago
Shall be part of a company strategy, not just network/technology exercise
•...
Rogers started down the VoLTE path 4 years ago (Cont’d)
Wi-Fi Calling Considerations
• Primary benefit is coverage extensi...
Video Services Opportunity
•Ease of use
•Telepresence - immersive experience
•Community / network / intradomain based – vo...
Multiscreen TV: New Rules of Consumer
Engagement
W atch-list
Personalized
Linear
On-Demand
Download
The New TV Experience
...
Multiscreen TV: the Service Provider’s
Perspective
Ali.Saghaeian [at] gmail.com
Multiscreen Service Platform
Ali.Saghaeian [at] gmail.com
A Standard Ecosystem for future
Communication Services: WebRTC, RCS,
VoLTE & GSMA OneAPI
Address new verticals as
ehealth,...
4
Mobile VAS and Multimedia Ecosystem and
Value‐Chain over 4G and 4.5G Network:
Key Drivers and Critical Success Factors
N...
World’s Best Practices and
Success Stories in Launching
Multimedia and Value Added Services
By ALI Saghaeian
Chief Analyst...
Objectives
• Can we make sense of the OTT Video Market
• Success Stories for OTT-Telco Collaboration
• Learning about some...
Agenda
• OTT Communications and APAC Players as
Innovators
• Success Stories for OTT-Telco Collaboration
• Redefining Mobi...
2015 has been an eventful year!
Jan Feb Mar Apr May Jun Jul Aug
Sep Oct Nov Dec
1. US venture-backed private
companies val...
OTT is a big world, its growing fast and its
fluid
SVOD AVOD UGC TVOD Linear OTT TV Everyw.
Ali.Saghaeian [at] gmail.com
Can we make sense of the OTT video market?
Source: A.T. Kearney
Mass Digital MCN
Social Video Center Mass Aggregator
Thema...
APAC OTT communication players are leaders in
innovation and offer a multi-feature platform
15 COMMUNICATION OTHERS
IM Voi...
Larger, and un-concentrated, markets are
attracting a bigger fight among OTT players
for market share
21
W hich apps do co...
Starz Arabia and Du, September 2015
First significant OTT-telco collaboration.
Starz launched in MENA in April. Within six...
OTT Monetization: Case of Telefonica Spain
Ali.Saghaeian [at] gmail.com
Enterprise OTT: Telefonica Mobile
Collaboration and Productivity
Ali.Saghaeian [at] gmail.com
Redefining Mobile Calling
Case of Direct-Talk (in Brazil)
Talk Instantly
w/o Setup Delay
Whisper-in to Indicate Intent
Whi...
Smart Dialler, Visual IVR: Modernize Legacy
Touch-points
Ali.Saghaeian [at] gmail.com
Key VAS offerings by Telna (Telecom North
America)
Ali.Saghaeian [at] gmail.com
Case of Vodafone Message+: RCS-based
service
Features
• Text, picture, voice
and video
messaging
• Emoticons and
emojis
• ...
Libon is Orange’s Rich Communications Suite
Ali.Saghaeian [at] gmail.com
Some early results for VoLTE/VoWiFi
VoLTE offers better voice quality and connects calls 20 times faster than the 3G avera...
T-Mobile US WiFi Calling
Ali.Saghaeian [at] gmail.com
Case Study: T-Mobile USA VoWiFi Rate
Ali.Saghaeian [at] gmail.com
AT&T earns new revenue with connected car
Concierge pays for pre-paid minutes
User pays connected device
User pays pre pai...
Cloud Automation Service Model: Case of
Telecom Italia
Telecom Italia Digital Solutions
5
APPLICATIONS
Proprietary Service...
China Telecom earns new wholesale revenue
with virtual numbers
Didi buys the service from app developer
Developer buys vir...
Smart Home and Telcos: Operators’
Positioning
HOME AUTOMATION
MONITORED SECURITY
LINKED W ITH FIXED CONNECTION
LINKED W IT...
Case Study: Remote Patient Monitoring
› Remote Patient Monitoring is a service provided to
AT&T, built on the Service Enab...
4
Mobile VAS and Multimedia Ecosystem and
Value‐Chain over 4G and 4.5G Network:
Key Drivers and Critical Success Factors
N...
Optimizing Strategies to
Stimulate Mobile VAS Usage and
Maximize Operators’ Revenues
By ALI Saghaeian
Chief Analyst & Cons...
Objectives
• Operators’ VAS Positioning for different Segments
• Current status of Operators' Next-Gen Initiatives
• Opera...
Agenda
• Future Telecom Service Business Models
• Classifications for Value added services
• Revenue-Generating VAS servic...
Future Telecom Service Business Models
3 types of Revenue Categories in Communications
Service
Revenues Communication as a...
Classifications for Value added services
• ”Value added services” have existed
in telecommunications for decades
– E.g. “S...
Revenues not keeping pace with Traffic
Growth
Improve
Revenues by
offering:
• VoLTE
• RCS
• and Video
VAS
Revenues
Traffic...
The Rules of Value Added Service Game are
Changing!
Ali.Saghaeian [at] gmail.com
Revenue-Generating VAS services
– Video Services with RCS
– Video Adverts and Ring-Back Tones
– Messaging (record and play...
Various strategies to conquer and secure
customers and protect margins
Ali.Saghaeian [at] gmail.com
Operators’ Positioning for different Segments
Proffesional
Premium
Phone Type & Features
SMS Usage
Social Presence
Househo...
Awareness and usage of VAS
- 26%* of customers not aware of VAS that came with
the core service
- 68%* have never used the...
Stimulating Mobile VAS usage via Sponsored
Data
Consumer Data Charges
 80% of mobile users surveyed avoided using an app ...
This is happening………
• Multi-play: many operators getting involved in multi-play
• Impact on churn
Ali.Saghaeian [at] gmai...
Bundling value added services can support
higher prices for superfast broadband
• Price is the most
important criteria for...
Bundling & selling services with access
Positioning strategies for services bundled with access
Ali.Saghaeian [at] gmail.c...
Operators and Flexible Partnership Options
Operators in US are looking to adopt the "Freemium" model in their
markets defe...
Partnerships with value added service
providers has shown effective
Partnering with value added service providers have bee...
Operators are responding with a variety of
approaches
Strategy
Objectives
Examples
Block OTT services
Prevent OTT becomin...
OTT and Operator Partnerships/Competition
Scenarios - UseCases Operators offering OTT Services Using Operator Key Assets t...
An example: OTT partnerships
Zero rating OTT video messaging
Monetization models
●“Try and buy” offers – upgrades or add-o...
Operator content and OTT partnerships
Ali.Saghaeian [at] gmail.com
The current status of next-gen initiatives
varies considerably by region
29
Figure: Number of live next-generation communi...
Collaboration between Telco and OTT
providers
More strategic collaboration and the movement from competing to new
market-c...
What are Operators doing on the App front?
Ali.Saghaeian [at] gmail.com
Operators and OTT players can benefit in
many ways from each other and co-exist for
greater opportunities
31
Customer acqu...
Applying Lessons Learnt from the Us Market
• Compelling content is the key differentiator
• Original series is the most cr...
Any Questions?
Ali.Saghaeian [at] gmail.com
Driving Mobile VAS Adoption and Creating a Sustainable
VAS Proposition in New Mobile Generations
Exploring Mobile Apps Cat...
Driving Mobile VAS Adoption and
Creating a Sustainable VAS Proposition
in New Mobile Generations
By ALI Saghaeian
Chief An...
Objectives
• What are the transforming drivers in our industry
• How to effectively drive Mobile VAS Adoption
• How Video ...
Agenda
• Mobile VAS and Real time Contextual offers
• Go-To-Market Solution for Next Generation
Mobile Operators
• Superio...
Five drivers are transforming our industry
Intensifying M&A
and consolidation
Fierce competition from
traditional & OTT pl...
Mobile VAS – Real time Contextual offers
• Flexible Offer design ,rule based promotions based on usage, loyalty, traffic a...
Go-To-Market Solution for Next Generation
Mobile Operators
Launch Monetize
Personalize
•Target Customers & Market Position...
Freemium Business Model
It is based on the up-sale of high-margin value-added and digital services
to a ‘low-cost’ freemiu...
Superior Monetisation Potential
Once a 'free' end-user has been acquired, the most important next step is
its conversion f...
New Sales Potential via Value Added Services
•VAS are typically used to boost new sales with a bundle model, i.e. customer...
Churn Reduction Potential via VAS Offering
Churn 20%
Loyalists 25%
Premium service penetration 6-24%
Churn prevented by VA...
Value for money offers with Distinctive Value
Added Services
Case of PosteMobile (in Italy)
PosteMobile is positioned as t...
The strong adoption of Distinctive VAS is
confirmed by the high volume of transactions
Total transaction value of Distinct...
The Global Media and Entertainment
industry: Opportunities for VAS Providers
TV subscriptions and licence fees
2019
2014
$...
Digital music: The potential for growth is
significant
Global music streaming revenue will exceed US$4bn in 2018
0
500
100...
Global, consumer spending on digital music,
2014- 2018
• Mobile operators’ share in developed markets is very little – neg...
TV and Video over 4G
•LTE is a Video Distribution Network
•Innovation enables differentiation
•Differentiation drives mone...
Video is Shaping the Telecom Industry
1 million minutes of video content will cross the network by 2018.
Globally, IP vide...
Key Numbers in the Market
Global video traffic *Cisco
Online global video subscription revenue *Statista
Online video adve...
Online Video Viewing Habits
Internet TV show and movie viewership continues to grow for adults
18-24 and 55+, but is relat...
Barriers to Mobile Video Consumption
•The number one barrier to usage is still ‘Data Shock’
•Adaptive streaming makes it d...
Mobile Device Usage in Online Video Services
Consumers who use online video services on a smartphone or tablet do
so prima...
Video Content & MNO Video Business
Models Mandates
A Flexible Set of Edge-based Delivery Strategies
Mobile-Edge Delivery S...
Location is a data play, not just a service
enabler
Ali.Saghaeian [at] gmail.com
Location Application Domains: An expanding
remit across many domains
Ali.Saghaeian [at] gmail.com
Location Based Services Ready for Growth
30% CAGR between 2014-19 Source: Convergence Catalyst 74% Of US smartphone owners...
Spectrum of LBS applications for mobile
operators with extended Wi-Fi
Ali.Saghaeian [at] gmail.com
Paradigm Shift: A Buying Led Approach
Order
Control
Care
International Roaming Pack
200 MB / wk
European Roaming Pack
500 ...
Driving Mobile VAS Adoption and Creating a Sustainable
VAS Proposition in New Mobile Generations
Exploring Mobile Apps Cat...
Exploring Mobile Apps Categories
and Successful Mobile VAS
and Multimedia Applications
By ALI Saghaeian
Chief Analyst & Co...
Objectives
• What are different Mobile App Categories &
Functions
• Reviewing Successful Mobile VAS and Multimedia
Applica...
Agenda
• Communications as an important part of
smartphone usage
• Mobile data: traffic share by application type
• Operat...
Communications remains an important part of
smartphone usage... but its role is diminishing
Average time per day spent usi...
Mobile data: traffic share by application type
In 2014 video already represented almost half of the whole data traffic,
a...
Consumers continue to use apps
Penetration of top five communications apps in selected countries (smartphone owners only),...
Composition of online communities changes
with penetration
Source: Analysys Mason - 2015
Average number of comms apps used...
Operators’ Mobile App Functions
Source: Openet, 2015
Ali.Saghaeian [at] gmail.com
Operators’ Mobile App Functions (Continued)
Source: Openet, 2015
Ali.Saghaeian [at] gmail.com
Operators should be looking for growth in
consumer attention and identifying
service/partnership opportunities
Penetration...
Create new opportunities to boost the consumption
and increase revenue monetization streams
Case of Telecom Malaysia
Ali.S...
Can operators leverage the native interface
as a platform?
Time spent on smartphones by interface type [Source: Analysys M...
Operator APIs
9
App/Service Portfolio
Enable operators to exploit core Telco assets better.
Ali.Saghaeian [at] gmail.com
What APIs can Telcos offer?
Capabilities Opportunities
Telco API
internal systems
billing, rating, charging
lower operatio...
Top APIs operators could implement
Telco Network APIs market is expected to account for $157 Billion in global
revenues wo...
Helping developers deliver the right
applications on the right device to over 100
Million customers
Case of AT&T Developer...
Case Study: AT&T API Platform
The API Platform exposes core capabilities through RESTful public APIs
•Free 90-day trial
•C...
Success Story: In-App Messaging from Mobile
Number (IMMN)
Send texts from the subscriber’s AT&T mobile number – and
keep u...
TELUS API Offering: 75+ APIs and growing
Ali.Saghaeian [at] gmail.com
Overview of Orange API offers AMEA
priorities for 2015
Evolution of Orange Money into a Digital payment solution open to a...
Open API Hackathon – ideas summed up:
Case of Orange
Ali.Saghaeian [at] gmail.com
Development of new services: Case of
Orange
34
Connected
devices
Internet of
Machines
Internet of
Objects
IoT API
Data Ope...
Telecom Italia: Network API Platform
Ali.Saghaeian [at] gmail.com
Service Exposure: APIs catalog & billing
models
Telecom Italia’s update on Network API Platform
Ali.Saghaeian [at] gmail.c...
Making the most of enterprise apps:
managing the full lifecycle
Deploy
Monitor
Fix
Analyze
Update / retire
Users
Time
Freq...
Which Enterprise Apps are being Deployed/Used
within Asian Telecom Operators?
* Doc sharing and E-mail are viewed as criti...
How Many Enterprise Mobile Applications are
being Deployed by Asian Telecom Operators?
85% deploy at least 1 app; 38% depl...
Who Are the Users of Enterprise Mobile Apps?
90% of all users have access to mobile apps, although it started with Office
...
Pros and Cons for Providing Mobile Apps to
Operators’ Employees
Companies deploy mobile apps for efficiency and productivi...
Driving Mobile VAS Adoption and Creating a Sustainable
VAS Proposition in New Mobile Generations
Exploring Mobile Apps Cat...
Strategies for Monetizing the
Mobile Content, Services and
Applications in 4G and 4.5G Market
By ALI Saghaeian
Chief Analy...
Objectives
• How to Monetize Mobile Content, Services and Apps
• What are the Key Monetization Strategies for
Operators
• ...
Agenda
• Issues and Challenges in Telecom: Exploiting
Monetization Opportunities
• Key Monetization Strategies & Challenge...
Issues and Challenges in Telecom: Exploiting
Monetization Opportunities
Ali.Saghaeian [at] gmail.com
Key Monetization Strategies
Pricing and Precise Marketing.
Network Consolidation and cost
optimization
Own the user experi...
Mobile Service Monetization Challenges
• Fragmented
business systems,
processes,
channels
• Inconsistent view
of customer ...
Enable Services the Market Demands
Increase Revenue Streams from OTT Services
•Tiered Pricing
•User, Device, & Application...
New Data Business Opportunities with
Multiple Monetization Approaches
Ali.Saghaeian [at] gmail.com
Where will the Money Flow?
• Key challenge is increasing OTT service reach, quality and
profitability, driven by competiti...
Monetization is much more than just content
Quality of Experience
Quality of Content
Content may be the most
visible compo...
How to Monetize?
Effective Lead / Opportunity Mgmt 360o view of Subscriber Centralized Product Catalog Real time credit co...
Broad Set of Monetization Use Cases
Ali.Saghaeian [at] gmail.com
Managing between Revenue Growth and
Cost Optimization
•Optimize Network Resources
–Control usage based on revenue
model
–U...
Building New Business Model: Redefine
Operators’ Subscriber
Users
Operators OTTs
• Telco Capability Centric:
 Experience ...
Digital Content Explosion and Convergence
are Driving Industry Growth
Content
Devices
Networks
Broadcasters
Media Producti...
What this means for Monetizing your Digital
Business
DIGITAL
OPERATING
MODEL
CUSTOMER
EXPERIENCE
NEW
OUTCOMES
With custome...
Need to open new revenue streams
What will be the
most lucrative
new revenue
streams next
year?
Ali.Saghaeian [at] gmail.c...
OTT Monetization Opportunities
Going Off-Net to Increase Reach
Creating Targeted and
Bundled OTT Offerings
Upselling New a...
OTT Monetization: Offered Services
Specific LiveTV & VOD packages
nPVR & VOD
Live & VOD, OTT VOD Service,
Offline access
S...
Personalize the experience
34% would pay more
Self-change service plans
26% would pay more
Data roll-over 32% would pay mo...
LTE is the industry opportunity for
monetisation
Ali.Saghaeian [at] gmail.com
The Key to Monetizing LTE
•New Business Models
–Tiered/Usage based services
–OTT/Cloud/M2M
–Flexibility and Agility are Ke...
LTE offers a number of strategic pricing
options for monetization of LTE
Pricing of offerings is key upfront, ability to o...
Will LTE users pay more for quality?
Information Security Level 1 – Confidential
© 2015 – Proprietary and Confidential Inf...
Need to invest in Quality
Better
QoE
More usage og Application&services Business Development Quality enhance exploitation ...
What’s Your Data Worth?
Subscriber Data
CRM, Lifetime value

WHO
Mobile Usage Data
Apps, Search, Browsing

WHAT
Geolocat...
Monetization Efforts With Mobile Network
Geolocation
Ali.Saghaeian [at] gmail.com
Monetising data – recent initiatives
Mobile financial services gaining momentum, although Kenyan M-
Pesa success yet to be...
Monetising data – recent initiatives
MTN launches pan-African IoT platform (May 2015) MTN Business rolled out a
pan-Africa...
Monetising data – recent initiatives
Spectranet and iRoko partner for
VOD on LTE
Nigerian ISP Spectranet has
partnered wit...
Monetization and service delivery : engagement is
driven by providing relevant and personalized offers
• Customer analytic...
Driving Mobile VAS Adoption and Creating a Sustainable
VAS Proposition in New Mobile Generations
Exploring Mobile Apps Cat...
Value Creation and Customer Experience
Management in Mobile VAS
for an Enhanced Customer Journey
By ALI Saghaeian
Chief An...
Objectives
• How to Map the Customer Experience and create
Value
• What are the main Objectives for Customer
Experience Ma...
Agenda
• The primacy of the customer experience is taking
root
• Mapping the Customer Experience
• Customer experience as ...
The primacy of the customer experience is
taking root
Progress towards digital transformation
Source: Ovum | TMT intellige...
Mapping the experience
W eb
IVR
Live Chat
Email
Agent Events
Social Media
Surveys Feedback
Calls
Customer Service
Operatio...
Why bother engaging with YOUR customers?
• If you don’t, your competition will!
• Who will be your most fierce competition...
The way we engage our customers needs to
change as a result of the shift to digital
Empowered and
demanding:
personalised ...
Customer Service Vs Customer Experience
Customer Service Customer Experience
Happens only when there is a
problem
Overall ...
Customer experience is an eco-system play
Operator's Network
Radio network, backhaul,
coverage etc
Subscribers
Subscriber ...
The main objectives for Customer Experience
Management (CEM) are:
6 Improving operational efficiency and quality
•Understa...
Traditional customer service vs. Next Gen
proactive support
Interaction type
Traditional reactive post-sales
customer inte...
Customer Experience Management (CEM) is a
key milestone for Telecom Operators
Please rank in order of importance the opera...
Understand your current state and aim for
the next level of maturity
Customer-Adaptive
CEO, board level sponsorship, enter...
Organizations are largely disconnected from
their customers, putting their futures at risk
Critical areas of weakness iden...
Consumers expect a personalized experience
1 - Teradata & Celebrus Research 2015.
2 - Location Score Index (Q1 2025) Think...
Customer experience – various sources of
complexity can make solutions difficult
Complexity of
products
Pricing complexity...
Top business and process challenges for
customer experience programs
Getting a holistic view of the customer
Understanding...
Telcos are in the early phases of improving &
managing CE
Has you organization deployed any of the following customer expe...
Successful enterprise innovators have 10
attributes in common
Leadership Prioritize and foster innovation – remove barrier...
Deepen engagement over the lifecycle of the
customer
Use cases Pricing: Recommendation:
Bundled pricing plans
Location b...
Your Customer’s Journey Should Be Like
This….
9
1. Provide me with relevant
and timely information
2. Tailor my engagement...
Importance of Self Service in better customer
experience
New support paradigm for customers
SATISFACTION
DISSATISFIED CUST...
Right Message, Right Time, Right Location
Brazil
UK
55%
78%
US UAE 63%
68%
The messages you receive are not in line with y...
Look into economic principles for superior
customer experience
Match right product to right customer
Implement 3rd degree ...
RECOGNIZE INDIVIDUAL TRAJECTORIES
Identify structure in routine
Do video chats Location
Reading mails
Location
Individual ...
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators
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Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators

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The topics covered in this master slide deck:
* Mobile VAS and Multimedia Ecosystem and Value‐Chain over 4G and 4.5G Network: Key Drivers and Critical Success Factors
* New Service Development and Service Delivery Innovation in Mobile VAS and Multimedia
* World’s Best Practices and Success Stories in Launching Multimedia and Value Added Services
* Optimizing Strategies to Stimulate Mobile VAS Usage and Maximize Operators’ Revenues
* Driving Mobile VAS Adoption and Creating a Sustainable VAS Proposition in New Mobile Generations
* Exploring Mobile Apps Categories and Successful Mobile VAS and Multimedia Applications
* Strategies for Monetizing the Mobile Content, Services and Applications in 4G and 4.5G Market
* Value Creation and Customer Experience Management in Mobile VAS for an Enhanced Customer Journey
* Deploying Value-Added Service (VAS) Applications over LTE Network as an Advantage against Over-The-Top (OTT) Players
* Next Generation Service Platforms for Multimedia and Value Added Services
* Offering Rich Communications Services (RCS) as a Multimedia Application to combat OTT Competition
* Applications of Internet of Things (IoT), Big Data and Cloud Services in 4G-based Mobile VAS

Publié dans : Mobile

Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators

  1. 1. • Long-standing Experience in Telecoms • Chairman and Keynote Speaker in various World Telecoms Events • Project Manager and Consultant to several national VAS Projects • Based in Sydney - Australia Telecommunications, IT, and Media Emerging Markets & Developing Countries Mobile: +61 447 808 987 Email: Ali.Saghaeian [at] gmail.com Professional Experiences About Me Developing Multimedia and Value Added Services on 4G and 4.5G for Telecom Operators
  2. 2. 4 Mobile VAS and Multimedia Ecosystem and Value‐Chain over 4G and 4.5G Network: Key Drivers and Critical Success Factors New Service Development and Service Delivery Innovation in Mobile VAS and Multimedia World’s Best Practices and Success Stories in Launching Multimedia and Value Added Services Optimizing Strategies to Stimulate Mobile VAS Usage and Maximize Operators’ Revenues 1 3 2 CONTENT & AGENDA – I / III
  3. 3. Driving Mobile VAS Adoption and Creating a Sustainable VAS Proposition in New Mobile Generations Exploring Mobile Apps Categories and Successful Mobile VAS and Multimedia Applications Strategies for Monetizing Mobile Content, Services and Applications in 4G and 4.5G Market Value Creation and Customer Experience Management in Mobile VAS for an Enhanced Customer Journey8 5 7 6 CONTENT & AGENDA – II / III
  4. 4. CONTENT & AGENDA – III / III Deploying Value-Added Service (VAS) Applications over LTE Network as an Advantage against Over-The- Top (OTT) Players Next Generation Service Platforms for Multimedia and Value Added Services Offering Rich Communications Services (RCS) as a Multimedia Application to combat OTT Competition Applications of Internet of Things (IoT), Big Data and Cloud Services in 4G-based Mobile VAS12 9 11 10
  5. 5. Mobile VAS and Multimedia Ecosystem and Value‐Chain over 4G and 4.5G Network: Key Drivers and Critical Success Factors By ALI Saghaeian Chief Analyst & Consultant Telecoms, IT and Media Ali.Saghaeian [at] gmail.com
  6. 6. Objectives • Understanding Today’s Challenges of Operators • What are the Global Market Developments • Learning about the New Evolving Ecosystem • Strategies of other Players in the Value Chain • Evolution of Mobile Operators' Business Model • How to take the Smart Pipe VAS Strategy • Key Drivers and Success Factors in Future Networks Ali.Saghaeian [at] gmail.com
  7. 7. Agenda • 4G and 4.5G as the Next Uplift of Growth • The Evolution of Digital Technologies • Global Mobile Data Traffic Growth • Possible Changes in the Value Chain • Data as the key to create Competing Value • Mobile Operators' Business Model Evolution • Operators' Strategies in the Value Chain • Value with Digital Economy and the Evolving Ecosystem Ali.Saghaeian [at] gmail.com
  8. 8. Definition of Value-Added Service (VAS) A value-added service (VAS) •is non-core services i.e. all services beyond standard voice calls, SMS and data products; •enable mobile operators to develop additional revenue streams; and •can be used in any service industry, for services available at little or no cost, to promote their primary business. Ali.Saghaeian [at] gmail.com
  9. 9. 4G and 4.5G are bringing the next uplift of growth Today, Telecommunication industry is in data–centric world … MNOs to reinvent business model and build new engine for growth … SON: Self-Organizing Networks Ali.Saghaeian [at] gmail.com
  10. 10. The Evolution of Technologies 1970 - 80 1990 2000 2010 2020 2030 Early Information Systems Mobile Number Connected Objects & Locations Augmented Reality, Virtual Reality, Artificial Intelligence EVOLUTION OF DIGITAL TECHNOLOGIES Internet of Things IOT Big data Cloud Computing Social Networks Broadband Impact of technology on Experience and Productivity EVOLING TECHNOLOGICAL CAPABILITIES Ali.Saghaeian [at] gmail.com
  11. 11. Some key trends observed over the last year 6 Rise of the second device 1 Mobile penetration has crossed 100% in many of the countries and consumers are carrying second connection/ device. Effective ARPU monetization from the second device is a major challenge for Service providers Decline of traditional Voice ARPU 2 Service providers are losing traditional Voice Revenues but are now fighting back to ensure the “share of wallet”. Strategies include Bundling voice, launching digital voice and creating innovative services targeting voice revenues Network Congestion/ Outage 3 Increased data demand and spikes in geographies are leading to Network congestion / outage. The continuous outage is forcing Service Providers to relook at their long term network strategy Social media savvyconsumers 4 APAC now has one of the highest Facebook users/ Linked in users. Service providers are increasingly looking at social media but do not have a clear strategy. OTT – Clear and present danger 5 OTT threat is clear and present danger and operators do not have a well defined strategy to counter the threat of OTT players. Ali.Saghaeian [at] gmail.com
  12. 12. The big problem for the mobile industry… Copyright Disruptive Analysis Ltd 2014 June 2014 0 200 400 600 800 1000 1200 1400 2012 2013 2014 2015 2016 2017 2018 2019 Voice telephony VAS / digital Internet/data access SMS/MMS $bn – Global Mobile Operator Revenue ? New/partner services? Voice/video-based? Verticals? Ali.Saghaeian [at] gmail.com
  13. 13. Today’s Challenges of Operator IT/Network Convergence Improve and Enrich Customer Experience Rapid service launch and overall service performance Address OTT competition The “dump pipe” / commoditization challenge Leverage Big Data Data Analytics from OSS & BSS Build Ecosystems - Digital Services and M2M/IoT To compensate for traditional services erosion Stronger focus on Enterprise Solutions Cloud, ICT & managed services Technology shift All-IP & 4G/LTE + pre 5G Data monetization Lean & Mean – new paradigms for CAPEX and OPEX spendings New business models and managed services Ali.Saghaeian [at] gmail.com
  14. 14. Monumental Disruption by 2020 9 billion people on the planet collaboration will be KEY Internet is the dominant delivery medium mobile traffic will grow 10X Media value chain will forever evolve content will grow Richer & bigger agile networks will thrive IP traffic will grow 3x 90% of the world will be covered by MBB 78% of all traffic will be Video Ali.Saghaeian [at] gmail.com
  15. 15. Global Mobile Data Traffic Growth: Mobile Video Will Generate Three-Quarters by 2020 Cisco Forecasts 30.6 Exabytes per Month of Mobile Data Traffic by 2020 Ali.Saghaeian [at] gmail.com
  16. 16. Global Mobile Traffic by Connection Type Ali.Saghaeian [at] gmail.com
  17. 17. LTE users – what’s important? New opportunities, new challenges 69% say Internet access has to work at all times from everywhere 45% want to be rewarded based on usage history 40% would pay more for better download speeds 40% want to manage their plan in real-time 64% prefer access to data over voice in time of crisis Ali.Saghaeian [at] gmail.com
  18. 18. Global market developments Customers would rather spend money for content than connectivity, putting pressure on telcos – who need to develop innovative service delivery capabilities 8 Customers would rather spend money for content than connectivity, putting pressure on telcos – who need to develop innovative service delivery capabilities Source: Arthur D. Little- Exane BNP 2012, PWC 2011 Telcos will have to establish an innovation portfolio that enables them to start charging the supply side of content & applications Customer Spending on Telecom Services Is Forecast to Decrease Customer Spending on OTT Applications Is Forecast to Increase Content & Application Providers Are W illing to Pay for Quality Content Delivery 104 100 98 97 0 20 40 60 80 100 120 CAGR: -2.2% 2012 2013 2014 2015 16 22 26 12 0 5 10 15 20 25 30 CAGR +30% 2012 2013 2014 2015 6 5 4 3 2 1 0 2.8 CAGR +28% 2015 5.8 2014 4.5 2013 3.5 2012 CDN revenues in bn USD OTT app revenue in bn EUR Telco revenues in bn EUR Share of Telecom Services in Customer Spending is Forecast to Decrease 2% 88% 10% Content & Application Providers OTT Applications Telecom services 75% 5% 20% Customer spending in 2012 Customer spending in 2015 1 Global Trends & The Role of Telcos Global market developments Ali.Saghaeian [at] gmail.com
  19. 19. APAC Telecom revenues: Increasing data consumption will drive the revenues 3 Source: Frost & Sullivan analysis 2013 2018 2.8% -0.6% 1.9% 2.7% 4.1% 4.7% Others North Asia ANZ South East Asia India China In Billion USD CAGR (2013 -2018) 532.5 Billion ANZ High smartphone penetration of 72% drive mobile broadband and value-added services around digital content. North Asia (Japan & Korea) Marketing and promotions aimed at acquiring and upgrading subscribers to high value added service. Others* Low cost smartphones priced below US$80 driving data usage among first time users in emerging markets. SE Asia India Growing ubiquity of smartphones and tablets in the second tier market bringing about mobile data growth. 1.0% 5.2% Voice Non-voiceKey demand drivers by region China Private consumption backed by steady economic growth offer a boost to spending on handheld devices and spending on mobile services. Generous voice and data packages through bundling of service to reduce churn and drive steady growth. Ali.Saghaeian [at] gmail.com
  20. 20. Possible changes in the value chain also adds a new level of uncertainty Creation Packaging Distribution Access Devices End user Lots of legal and illegal free content sources User owned devices are getting smarter and more connected Distributor network providers still have a strong lock on large audiences OTT players are separating the packaging from the distribution layer Content creators are experimenting with direct viewer access Ali.Saghaeian [at] gmail.com
  21. 21. Data is the key to creating value and competing – in all parts of the media value chain Advantage from data in media Content licensing/ creation Content discovery personalisation Churn reduction Improved ad targeting Targeted promotions Cross selling/ ecommerce Locational relevance Reduced costs Audience experience Revenue growth Ali.Saghaeian [at] gmail.com
  22. 22. Mobile Operators Business Model Evolution Number and structure of network parameter have become large and complex… ..e.g. UK telecoms are focused on finance fundamentals, innovative solutions, improving user experience and keeping their competitive position stable… Ali.Saghaeian [at] gmail.com
  23. 23. Understand and anticipate the strategies of other players in the value chain Communication services business models [Source: Analysys Mason, 2014] Value of communicati on services increasingly co-opted Increasing overlap between communications services and social networking Operators’ standalone value proposition currently looks weak Player Core business Feature set Comms Voice Messaging Video Location Social business model Hardware Indirect Advertising Indirect Advertising Indirect Software licensing Moving to indirect Communication services Direct Content distribution Indirect MNOs Communication services? Direct Ali.Saghaeian [at] gmail.com
  24. 24. DIGITAL ECONOMY to create top value Operators must operate the 4 “complexity dials” beside handling the continuously growing data traffic Manufacture Government Utility Finance Home Appliance /CPE Telecommunications Media Healthcare Self-driving Mobile Finance ecommerce Convergent Communications Digital Health Smart Home Social Media Digital Gov Smart City Retail Terminal view on Digital Economy, focus on Telecom Operator role Interdependence Connectedness Diversity Adaptation& Learning Increase ARPx via personalized bundles Smart connectivity drives diversity of smart devices Market differentiation through selective partners Develop adjacent products and services Become a service & platform enabler for B2B Value Fabric Ali.Saghaeian [at] gmail.com
  25. 25. Smart Pipe VAS Strategy! Retention / fight churn! Create new revenue models! Create communication channels! Acquire new users Ali.Saghaeian [at] gmail.com
  26. 26. New Evolving Ecosystem Ali.Saghaeian [at] gmail.com
  27. 27. 4 Mobile VAS and Multimedia Ecosystem and Value‐Chain over 4G and 4.5G Network: Key Drivers and Critical Success Factors New Service Development and Service Delivery Innovation in Mobile VAS and Multimedia World’s Best Practices and Success Stories in Launching Multimedia and Value Added Services Optimizing Strategies to Stimulate Mobile VAS Usage and Maximize Operators’ Revenues 1 3 2 CONTENT & AGENDA – I / III
  28. 28. New Service Development and Service Delivery Innovation in Mobile VAS and Multimedia By ALI Saghaeian Chief Analyst & Consultant Telecoms, IT and Media Ali.Saghaeian [at] gmail.com
  29. 29. Objectives • How to Support various types of Digital Services • Service Delivery Innovation in Mobile VAS and Multimedia • What is the Standard Ecosystem for Future Communication Services • Operators’ Value in New Service Development • New Rules of Consumer Engagement and Service Providers’ Perspective Ali.Saghaeian [at] gmail.com
  30. 30. Agenda • Digital Transformation for Mobile Operators • Most popular lines of Business by 2017 • New Service Development: Telecom Operators’ Value over Time • VoLTE and Voice over WiFi Evolution & Growth • New Rules of Consumer Engagement by Developing New Services • Service Providers’ Perspective in Service Delivery Innovation • Standard Ecosystem for future Comms Services Ali.Saghaeian [at] gmail.com
  31. 31. Digital Industry Transformation for Mobile Operators Ali.Saghaeian [at] gmail.com
  32. 32. Market is Evolving and Convergence is a Starting Point •Highly fragmented market to be unified either by consolidation or partnerships •Integration of siloed systems in a workflow •Content portability across three screens •Cloud access for content and collaboration •Highly interactive and seamless consumer experiences •Targeted content and advertising Market Trends Convergence Consolidation & Partnerships Emerging Applications Next Gen Interactive Content Services Peak activity between now and 2016 Peak activity 2015 to 2017 Peak activity 2017 to 2020 •Blurring the lines for service providers, content creators and device makers •Need to make content available to customers anytime, anywhere, any device – on demand! Ali.Saghaeian [at] gmail.com
  33. 33. Supporting various types of Digital Services Digital Services Provider Rich media •TV •Games •Music •Video Commerce and finance •Banking •Advertising •Payments IP communication •VoIP •Instant Messaging •Unified Communication Cloud •Personal services •Enterprise services Contextual •Social networks •Big data •Location based services M2M •Connected Car •Connected Home •Smart Grid •Security •... Health •Medical •Paramedical •Wellness and fit Network Voice Data Messaging M2M VAS Ali.Saghaeian [at] gmail.com
  34. 34. New Product Rollouts › Currently mostly offering value-added services and roaming services › New targets for increased rollout till 2017 › new technologies: 4G, WiFi, etc. › new applications Source: Telesperience Survey, 2015 Ali.Saghaeian [at] gmail.com
  35. 35. New Service Development: Telecom Operators’ Value over Time CEBP: Communications Enabled Business Processes Opportunity: Evolving the Enterprise and SMB value proposition Value Time Telephony (fixed and mobile) Broadband IP Communications (eg. VoIP, Voice mail, audio conference ) Storage / hosting (eg. Cloud-based) Unified Communication & Collaboration (eg. WebRTC, SIP <> Web interoperability) Specialist apps (eg. Vertical, CEBP) Adapted from InformaTelcom& Media Bandwidth, Voice, SMS Declining Revenue Own the Communication Experience Increase Revenue Ali.Saghaeian [at] gmail.com
  36. 36. Hard Times for Telcos Ali.Saghaeian [at] gmail.com
  37. 37. Mobile is the ONLY Media Time on the Rise US Consumer Media Consumption 5% TV Online Radio Print Other Mobile 45% 43% 42% 38% 37% 25% 26% 26% 26% 20% 18% 17% 16% 15% 14% 12% 11% 9% 8% 7% 6% 4% 3% 7% 8% 7% 5% 2% 4% 6% 9% 12% 20% 24% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 44% 2009 2010 2011 2012 2013 2014 2 Ali.Saghaeian [at] gmail.com
  38. 38. Time Spent on Mobile is Growing Ali.Saghaeian [at] gmail.com
  39. 39. Media Time spent per screen: Mobile on top! Nigeria 193 mobile minut es 43% of media t ime SA 127 mobile minut es 29% K enya 174 mobile minut es 42% Germany 137 mobile minut es 36% Media Time spent per screen. Mobile is now the first screen across the globe, but especially in Africa. Ali.Saghaeian [at] gmail.com
  40. 40. Voice is Becoming Cool Again… “Wi-Fi First” Multi-Device Multi-mode Communication WebRTC, CaaS Ali.Saghaeian [at] gmail.com
  41. 41. VoIP, Wi-Fi calling, VoWiFi and RCS/VoLTE: Voice is getting cheaper and richer •Multi-device •Enriched calling •Extends reach •Free in-app calls VoIP Wi-Fi calling VoWiFi RCS/ VoLTE Ali.Saghaeian [at] gmail.com
  42. 42. VoLTE as a QoS Enabled Services: VoLTE is a QoS enabled LTE service •VoLTE driven by service improvements and/or operator optimisation. •All mobile VoLTE launches to date include HD voice, implying that service evolution is a key driver. •LTE QoS mechanisms underpin the service delivery for VoLTE. Ali.Saghaeian [at] gmail.com
  43. 43. VoLTE –Key Take Aways Ali.Saghaeian [at] gmail.com
  44. 44. Voice over WiFi Evolution (Monetizing VoLTE) IMS Over Internet IMS-based Mobility UMA devices IMS Client Embedded VoLTE/VoWi-FiClients Device Support for steering GAN Controller IMS Core e ePDG, AAA ANDSF 2G/3GWi-Fi No Call Handover LTE Wi-Fi DRVCC (Wi-Fi to CS) LTE Wi-Fi DRVCC (Wi-Fi to CS) RCS 2011 2014 Traffic Steering RCS Devices Handovers s Services Future Legacy First Gen Next Gen Next Gen+ UMA: Unlicensed Mobile Access Ali.Saghaeian [at] gmail.com
  45. 45. Rogers started down the VoLTE path 4 years ago Shall be part of a company strategy, not just network/technology exercise • Platform for new converged services and revenue streams : ViLTE , VoWiFi , RCS, IMS services roaming • Service centralization / migration / introduction / retirement strategy • Service Charging / rating strategy Follow industry guidelines while aligned with your own company strategy and requirements • Interoperability is a key : inter-vendor , inter-domain , network – UE , UE – UE , operator to operator (non-roaming NNI) , operator to operator (roaming NNI) Start testing as early as possible and test as much as possible • Consider POC , Lab testing , Production testing , Drive testing and service performance tuning • Secure enough capable devices to be used as test tools for early test stages , while certifying devices and use them for later phases test activities Develop necessary processes, tools and cross-organization skills to support converged IP services • Service Management Processes , Service KPIs , Platform KPIs • Troubleshooting and diagnostic tools • Train personnel , engage as early as possible in testing process Ali.Saghaeian [at] gmail.com
  46. 46. Rogers started down the VoLTE path 4 years ago (Cont’d) Wi-Fi Calling Considerations • Primary benefit is coverage extension of core wireless services using device native UI • Location based charging is an important consideration as there is no concept of Wi-Fi roaming • OEM based crowd sourced location is most accurate but need a device agnostic solution • SIM authentication provides best user experience but is not widely available from OEMs • Off setting the cost of in building systems to provide coverage helps the business case • Operator assisted 911 not available internationally • Data blocking requires careful design consideration to avoid impacts to customers CSFB will be needed for many years • We do not have ubiquitous LTE coverage • Carriers are deploying VoLTE at difference cadences • Inbound roaming will require circuit switched considerations for many years • In the interim, service consistency and parity across both domains remains a concern Inter-carrier VoLTE - ViLTE • Network to network interface is prerequisite • IXP easier and faster to market, direct connect cheaper but resource intensive • Not all Operators support ViLTE • Capability exchange required to drive ViLTE uptake and lay foundation for rich messaging Ali.Saghaeian [at] gmail.com
  47. 47. Video Services Opportunity •Ease of use •Telepresence - immersive experience •Community / network / intradomain based – voice/video/ IM “islands” •Acceptance of new UIs in mass consumer domain •Managed network services for QOS •Initial interworking and standards bodies •New delivery models – cloud, hosted •First cost-effective business solutions •Limited intradomain support •Consumerization of IT •SIP trunking •Ubiquitous B2B B2C social net connectivity •Web/mobile communications clients (WebRTC) •Low cost services mass adoption w/ QOS •Cloud enabled deployments •Fat pipes: LTE rollouts and enterprise SIP trunking Build Deploy Scale up and cost reductions 2012 Carriers, MNOs, and Over-the-Top / cloud SPs planning / readying video services Moving out of Early Adopter phase Ali.Saghaeian [at] gmail.com
  48. 48. Multiscreen TV: New Rules of Consumer Engagement W atch-list Personalized Linear On-Demand Download The New TV Experience Lean Back Morning at home 1-2 hours TV, Tablet, Phone Commute to work 1 hour Phone Commute home 1 hour Phone W ork 8-10 hours Laptop, Tablet, Phone Evening 4-6 hours TV, other screens 24 midnight 12 noon Multiscreen Daily Usage Ali.Saghaeian [at] gmail.com
  49. 49. Multiscreen TV: the Service Provider’s Perspective Ali.Saghaeian [at] gmail.com
  50. 50. Multiscreen Service Platform Ali.Saghaeian [at] gmail.com
  51. 51. A Standard Ecosystem for future Communication Services: WebRTC, RCS, VoLTE & GSMA OneAPI Address new verticals as ehealth, e-commerce, gaming, etc. enables RCS 5.x (IP Address book, presence, IM, video/voice call) Group chat, content sharing Web-based RTC voice & video TV-based RTC voice & video Video conferencing Ali.Saghaeian [at] gmail.com
  52. 52. 4 Mobile VAS and Multimedia Ecosystem and Value‐Chain over 4G and 4.5G Network: Key Drivers and Critical Success Factors New Service Development and Service Delivery Innovation in Mobile VAS and Multimedia World’s Best Practices and Success Stories in Launching Multimedia and Value Added Services Optimizing Strategies to Stimulate Mobile VAS Usage and Maximize Operators’ Revenues 1 3 2 CONTENT & AGENDA – I / III
  53. 53. World’s Best Practices and Success Stories in Launching Multimedia and Value Added Services By ALI Saghaeian Chief Analyst & Consultant Telecoms, IT and Media Ali.Saghaeian [at] gmail.com
  54. 54. Objectives • Can we make sense of the OTT Video Market • Success Stories for OTT-Telco Collaboration • Learning about some of Operators' Key VAS Offerings • Cases of Operators with Rich Communication Services • Operators' Approach in emerging Vertical Markets • World’s Best Practices in launching New Voice Technologies Ali.Saghaeian [at] gmail.com
  55. 55. Agenda • OTT Communications and APAC Players as Innovators • Success Stories for OTT-Telco Collaboration • Redefining Mobile Calling and Modernizing Legacy Touch-points • Key VAS Offerings by Telecom Operators • Best Practices for RCS-based Services • Successful launches of VoLTE and VoWiFi • Operators' Success across Vertical Markets Ali.Saghaeian [at] gmail.com
  56. 56. 2015 has been an eventful year! Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1. US venture-backed private companies valued at over $1 billion Amazon takes on Top Gear presenters for global series (July) Netflix announces more subscriber adds abroad than in the US for the first time (January) Twitter buys Periscope for $87M (March) YouTube launches YouTube Red. More than half of YouTube views now come from mobile devices (October) “Now only US 12-17 year-olds watch 15 hours of linear TV per week (40% down from 2011)” - Nielsen) (September) Disney launches DisneyLife OTTv in UK (October) Snapchat launches Discover – now with 15 publishers (January) Facebook launches Mentions live streaming (August) $37bn wiped off US Media stocks. Disney down 9%, Time Warner down 9%, 21CF down 7% (Netflix up 12% that week) (5th August) David Beckham launches MyEye video streaming (August) Number of US “Unicorns” reaches 113 (August) “Half of Netflix’s Millennial users stream on smartphone”- Comscore (January) Snapchat opens live streams from Mecca during Ramadan – earns great praise (July) Country launches “YouTube is the second largest search engine in the world” (May) Yahoo wins rights to the first NFL streaming-only game (June) PayPal IPOs with valuation more than Netflix, eBay or Twitter (July) Ali.Saghaeian [at] gmail.com
  57. 57. OTT is a big world, its growing fast and its fluid SVOD AVOD UGC TVOD Linear OTT TV Everyw. Ali.Saghaeian [at] gmail.com
  58. 58. Can we make sense of the OTT video market? Source: A.T. Kearney Mass Digital MCN Social Video Center Mass Aggregator Thematic Addict Niche Premium Semi-Premium Discovery Specialist Community Big Media Home Hybrid Hub Segment Positioning Mainstream Targeted (Niche/Verticals) Experience (Discovery/Social/Community) Content (Premium/Branded) Primary Usage Trigger Ali.Saghaeian [at] gmail.com
  59. 59. APAC OTT communication players are leaders in innovation and offer a multi-feature platform 15 COMMUNICATION OTHERS IM Voice (on-net) Voice (off-net) Video chat Video sharing Social platform Games Cloud storage Location based Asia–Pacific WeChat          Line          KakaoTalk          W orldwide WhatsApp          Viber          BBM Ali.Saghaeian [at] gmail.com
  60. 60. Larger, and un-concentrated, markets are attracting a bigger fight among OTT players for market share 21 W hich apps do consumers use in various markets 0%20%40%60%80%100%South KoreaMalaysiaIndonesiaPercentage of respondentsViberKakaoTal kWhatsAppLINEWeChatFacebookMessengerBBMSkype2.6 Ali.Saghaeian [at] gmail.com
  61. 61. Starz Arabia and Du, September 2015 First significant OTT-telco collaboration. Starz launched in MENA in April. Within six months, it has partnered, indicating fertile territory for telco collaboration with international operators. Ovum expects this to be the first of many in the coming years. Du mobile customers have access to Starz HD content via the Starz app for $13 monthly, billed directly through their du line. Sidesteps customer fears of using credit cards. Ali.Saghaeian [at] gmail.com
  62. 62. OTT Monetization: Case of Telefonica Spain Ali.Saghaeian [at] gmail.com
  63. 63. Enterprise OTT: Telefonica Mobile Collaboration and Productivity Ali.Saghaeian [at] gmail.com
  64. 64. Redefining Mobile Calling Case of Direct-Talk (in Brazil) Talk Instantly w/o Setup Delay Whisper-in to Indicate Intent Whisper-out, Shout or Answer Shout, Whisper or Text Invite Check Response, Run Huddle Customize Vertical Experience Mimic Real-life Collaboration Join Later if Still Huddling  Streamline Voice Interactions  Enable Efficient, Predictable Behavior Ali.Saghaeian [at] gmail.com
  65. 65. Smart Dialler, Visual IVR: Modernize Legacy Touch-points Ali.Saghaeian [at] gmail.com
  66. 66. Key VAS offerings by Telna (Telecom North America) Ali.Saghaeian [at] gmail.com
  67. 67. Case of Vodafone Message+: RCS-based service Features • Text, picture, voice and video messaging • Emoticons and emojis • Location sharing • Group messaging • Status/message read notification Market positioning • Enhanced messaging experience • RCS-based alternative to third party messaging apps Challenges • Integrated messaging not available on iOS • Limited availability of Message+ natively on devices and in markets Ali.Saghaeian [at] gmail.com
  68. 68. Libon is Orange’s Rich Communications Suite Ali.Saghaeian [at] gmail.com
  69. 69. Some early results for VoLTE/VoWiFi VoLTE offers better voice quality and connects calls 20 times faster than the 3G average of five seconds. SKT is promoting VoLTE to improve customer experience and boost customer loyalty. VoLTE: More than10% of T-Mobile calls run over VoLTE by March 2015; T-Mobile seeing better quality and better performance. Launches with iPhone and Samsung Galaxy helpful. Wi-Fi Calling: reportedly 7mn users by March 2015 RCS: VoLTE the baseline for RCS; RCS coming “soon” ViLTE: will be built on top of VoLTE IMS infrastructure has allowed T-Mobile to build services on top of LTE. Source: http://www.lightreading.com/mobile/4g-lte/qanda-the-castle-in-t-mobiles-lt e-netw ork-/d/d-id/714087?page_number=2 3 UK’s VoWiFi app, Three in Touch, had 1mn downloads in nine months since launch in mid-2014 Ali.Saghaeian [at] gmail.com
  70. 70. T-Mobile US WiFi Calling Ali.Saghaeian [at] gmail.com
  71. 71. Case Study: T-Mobile USA VoWiFi Rate Ali.Saghaeian [at] gmail.com
  72. 72. AT&T earns new revenue with connected car Concierge pays for pre-paid minutes User pays connected device User pays pre paid minutes and concierge fees Consumer AT&T •AT&T’s VoLTE service includes cars •OnStar used by GM: •Hands free calls to and from car •Automatic emergency call in accident •Concierge services •Theft alarm notification to car owner •New revenue for AT&T from: •$10/month connected car fee (to shared data plan) •Pre-paid voice minutes •Next step wearables... Ali.Saghaeian [at] gmail.com
  73. 73. Cloud Automation Service Model: Case of Telecom Italia Telecom Italia Digital Solutions 5 APPLICATIONS Proprietary Services (provider specific) Integration Interfaces CLOUD AUTOMATION PLATFORM CLOUD OFFERING UNIQUE TO CUSTOMER & RESELLERS SIMPLIFIED CUSTOMER EXPERIENCE Package A (Telco) Package B (Cloud SaaS) Package C (Infrastructure) + Syndicated or Hosted Multi-tiered Reseller Support (Direct, VAR, Online, Wholesale,…) CRM (web ads, telesales, lead generation,…) SERVICE PROVISIONING BUSINESS ORCHESTRATION 1 panel 1 bill 1 login 1 integrated experience Marketplace Vouchering System Sales Automation Portal AUTOMATED BILLING Service Onboarding Consulting & System Integration services Solutions Services REPORTING + + + TIDS Cloud Automation Service Model Ali.Saghaeian [at] gmail.com
  74. 74. China Telecom earns new wholesale revenue with virtual numbers Didi buys the service from app developer Developer buys virtual numbers and pays per call (APIs usage) User pays the taxi service Didi taxi Developer Consumer 70K APIs calls/day 70 2.5 Million users in 2 cities Disposable virtual numbers launched using China Telecom’s APIs Alcatel-Lucent Rapport™ Didi Dache Taxis 58.com real estate Personal Ali.Saghaeian [at] gmail.com
  75. 75. Smart Home and Telcos: Operators’ Positioning HOME AUTOMATION MONITORED SECURITY LINKED W ITH FIXED CONNECTION LINKED W ITH MOBILE CONNECTION OTT Poland France Bundles? W ith fixed or mobile access? Or OTT? Ali.Saghaeian [at] gmail.com
  76. 76. Case Study: Remote Patient Monitoring › Remote Patient Monitoring is a service provided to AT&T, built on the Service Enablement platform – Ericsson owns the roadmap and evolves the service together with AT&T – Vivify Health and Polycom are part of the service – Ericsson provide the kits which includes a preconfigured tablet with wireless sensors › AT&T promote, provide and owns the commercial ownership with care givers – Since 2011 AT&T have their own Chief Medical Information Officer (Geeta Nayyar) – A 400+ strong sales force focusing entirely on AT&T’s solutions for healthcare Ali.Saghaeian [at] gmail.com
  77. 77. 4 Mobile VAS and Multimedia Ecosystem and Value‐Chain over 4G and 4.5G Network: Key Drivers and Critical Success Factors New Service Development and Service Delivery Innovation in Mobile VAS and Multimedia World’s Best Practices and Success Stories in Launching Multimedia and Value Added Services Optimizing Strategies to Stimulate Mobile VAS Usage and Maximize Operators’ Revenues 1 3 2 CONTENT & AGENDA – I / III
  78. 78. Optimizing Strategies to Stimulate Mobile VAS Usage and Maximize Operators’ Revenues By ALI Saghaeian Chief Analyst & Consultant Telecoms, IT and Media Ali.Saghaeian [at] gmail.com
  79. 79. Objectives • Operators’ VAS Positioning for different Segments • Current status of Operators' Next-Gen Initiatives • Operators and Flexible Partnership Options • How to Stimulate Awareness and Usage of VAS • Optimizing Strategies for VAS Bundling • Strategies to Conquer and Secure Customers and Protect Margins Ali.Saghaeian [at] gmail.com
  80. 80. Agenda • Future Telecom Service Business Models • Classifications for Value added services • Revenue-Generating VAS services • Operators’ Positioning for New Segments • Stimulating Mobile VAS usage via Sponsored Data • Positioning strategies for bundled services • Partnerships with VAS providers • Applying Lessons Learnt from the US Market Ali.Saghaeian [at] gmail.com
  81. 81. Future Telecom Service Business Models 3 types of Revenue Categories in Communications Service Revenues Communication as a Platform Communication as a Sales/Service Channel Direct Service Revenue Termination / Interconnect Revenue 3rd party VAS sales/rev share Customer Data Utilization* Wholesale Access In-service product/feature upselling/crosselling Marketing Products with Platform as Sales/Service Channel Tariff Upsell Premium for additional Value on top of Access Opportunity Values Business Case Values Ali.Saghaeian [at] gmail.com
  82. 82. Classifications for Value added services • ”Value added services” have existed in telecommunications for decades – E.g. “Speaking clock” was launched in France, February 14th, 1933 • Mobile VAS services built on SMS and WAP carriers have long been in decline in mature markets, replaced by services based on mobile data • Services can be further classified into transactional services and subscription based services • For subscription services, several business models exist regarding service branding and billing Operator own services White label 3rd party services 3rd party branded services on operator invoice Co-marketed OTT services True OTT services Ali.Saghaeian [at] gmail.com
  83. 83. Revenues not keeping pace with Traffic Growth Improve Revenues by offering: • VoLTE • RCS • and Video VAS Revenues Traffic Revenues & Traffic Gap W idening Revenue vs. Traffic Growth Voice Era Data Era Ali.Saghaeian [at] gmail.com
  84. 84. The Rules of Value Added Service Game are Changing! Ali.Saghaeian [at] gmail.com
  85. 85. Revenue-Generating VAS services – Video Services with RCS – Video Adverts and Ring-Back Tones – Messaging (record and playback) – Multimedia Conferencing – And many more…. Source: Seeing through the Cloud Senza Fili Consutling Ali.Saghaeian [at] gmail.com
  86. 86. Various strategies to conquer and secure customers and protect margins Ali.Saghaeian [at] gmail.com
  87. 87. Operators’ Positioning for different Segments Proffesional Premium Phone Type & Features SMS Usage Social Presence Household OTT Partnership + Emulation Increase data revenue Data Cons. OTT Usage Bundling + Emulate (Telco OTT + SMS pack) Maintain SMS revenue Neutralize (Big SMS + MMS Bundles) Maintain SMS revenue High Low Moderate Bundling (Large voice & data & sms bundle packages ) Data & SMS revenues in control Youth Ali.Saghaeian [at] gmail.com
  88. 88. Awareness and usage of VAS - 26%* of customers not aware of VAS that came with the core service - 68%* have never used the service!!!! *Source: Frontier Communications Ali.Saghaeian [at] gmail.com
  89. 89. Stimulating Mobile VAS usage via Sponsored Data Consumer Data Charges  80% of mobile users surveyed avoided using an app due to data limit concerns1  71% of men and 62% of women would use more mobile data if it was sponsored1  AT&T’s sponsored data service charges data from eligible services to the sponsor2  Possible uses for sponsored data:  Promote movie trailers or games  Encourage browsing mobile shopping sites  Provide sponsored access to products and services2 56 58 60 62 64 66 68 70 72 Men Women Use Data on Mobile More if Data W as Sponsored?1 Ali.Saghaeian [at] gmail.com
  90. 90. This is happening……… • Multi-play: many operators getting involved in multi-play • Impact on churn Ali.Saghaeian [at] gmail.com
  91. 91. Bundling value added services can support higher prices for superfast broadband • Price is the most important criteria for consumers, followed by speed • Customers are reluctant to pay premium for faster speeds; however there is traction for superfast broadband if it includes value- added services Category Product or service Service add-ons International calls packages International roaming Speed boost, additional data Content and services Offer-specific content (video, audio) Gaming Cloud storage Anti-virus Home security Extending connectivity Multi-device (e.g. tablets) or shared data Multi-screen access Wi-Fi out-of-home access Ali.Saghaeian [at] gmail.com
  92. 92. Bundling & selling services with access Positioning strategies for services bundled with access Ali.Saghaeian [at] gmail.com
  93. 93. Operators and Flexible Partnership Options Operators in US are looking to adopt the "Freemium" model in their markets defensively or partner to expand to new markets offensively Ali.Saghaeian [at] gmail.com
  94. 94. Partnerships with value added service providers has shown effective Partnering with value added service providers have been successful way to promote uptake of LTE premium packages Sample Entertainment package offerings Operator Value Added Offering Operator Value Added Offering Vodafone Red 4G entertainment packs, Sky Sports 1 & 2, anywhere VOD service where EE cover any mobile data you use to stream and download films Vodafone is in the final stages of expanding its LTE offering to include Netflix Premium LTE packages comes bundled with HBO & Spotify premium O2 LTE subscribers can download exclusively games for free from Gameloft 6 month free access to premium package services Ali.Saghaeian [at] gmail.com
  95. 95. Operators are responding with a variety of approaches Strategy Objectives Examples Block OTT services Prevent OTT becoming mainstream Potentially gain value from high-end bundles Pakistan (Sindh province) Stimulate usage Defend legacy communication services Buy time SingTel Launch ‘telco OTT’ services Differentiate own services ‘Retain relevance’ as a communications provider LG Uplus Launch IMS-based services Improve operator portfolio ‘Retain relevance’ as a communications provider SK Telecom Partner with OTT players Appeal to attractive market segments Support core data business with move to bundles 3 Hong Kong, DiGi (Malaysia) Globe Telecom Ali.Saghaeian [at] gmail.com
  96. 96. OTT and Operator Partnerships/Competition Scenarios - UseCases Operators offering OTT Services Using Operator Key Assets to Support OTT Services Partnership with Content providers (Music, TV and Movies Sponsored data (Tollfree on Data) Network selection for selected usage Direct Operator billing QoS for OTT Telecom APIs Ali.Saghaeian [at] gmail.com
  97. 97. An example: OTT partnerships Zero rating OTT video messaging Monetization models ●“Try and buy” offers – upgrades or add-ons ●Sponsored data/revenue share ●VoLTE subscriber opts into 1-day free trial of OTT video messaging with HD quality ●Data usage is zero-rated for 24 hours, followed by add-on offer Ali.Saghaeian [at] gmail.com
  98. 98. Operator content and OTT partnerships Ali.Saghaeian [at] gmail.com
  99. 99. The current status of next-gen initiatives varies considerably by region 29 Figure: Number of live next-generation communication service initiatives at June 2014, by region [Source: Analysys Mason, 2014] 0 10 20 30 40 50 Partnership Telco OTT RCS (IMS) VoLTE (IMS) Number of initiatives SSA MENA EMAP DVAP LATAM NA CEE WE Ali.Saghaeian [at] gmail.com
  100. 100. Collaboration between Telco and OTT providers More strategic collaboration and the movement from competing to new market-creating business opportunities of transformation Revolutionary Evolutionary Tactical Area of Focus Strategic * Adapted from , N Venkataraman, Sloan Management More strategic collaboration and the movement from competing to new market-creating business opportunities Ali.Saghaeian [at] gmail.com
  101. 101. What are Operators doing on the App front? Ali.Saghaeian [at] gmail.com
  102. 102. Operators and OTT players can benefit in many ways from each other and co-exist for greater opportunities 31 Customer acquisition Operator grade services Operator billing Local knowledge Decreased churn Customer acquisition Revenue share Consumer data Benefits to OTT players Benefits to operators Ali.Saghaeian [at] gmail.com
  103. 103. Applying Lessons Learnt from the Us Market • Compelling content is the key differentiator • Original series is the most credible way of building brand awareness and differentiation • Ability to secure long term exclusive deals on content is key to success • Localization of product and delivery • User friendly and robust multi lingual product interface • Building content library keeping in mind the heterogeneity of markets • Funding and capitalization • Since the time taken to build the critical mass is long (as seen in Netflix and Hulu Plus), there is need for stable funding • Building partnerships • Key to build scalable distribution network rather quickly • Symbiotic relationship that can monetize the network by increased data usage & spending • Engaging and effective user experience • Recommendation engine that facilitates content discovery and improves engagement • Data analytics • Insights into usage habits and preferences of individuals, households, friends, and consumer segments to tailor product design and offering • Helps in personalization of service Ali.Saghaeian [at] gmail.com
  104. 104. Any Questions? Ali.Saghaeian [at] gmail.com
  105. 105. Driving Mobile VAS Adoption and Creating a Sustainable VAS Proposition in New Mobile Generations Exploring Mobile Apps Categories and Successful Mobile VAS and Multimedia Applications Strategies for Monetizing Mobile Content, Services and Applications in 4G and 4.5G Market Value Creation and Customer Experience Management in Mobile VAS for an Enhanced Customer Journey8 5 7 6 CONTENT & AGENDA – II / III
  106. 106. Driving Mobile VAS Adoption and Creating a Sustainable VAS Proposition in New Mobile Generations By ALI Saghaeian Chief Analyst & Consultant Telecoms, IT and Media Ali.Saghaeian [at] gmail.com
  107. 107. Objectives • What are the transforming drivers in our industry • How to effectively drive Mobile VAS Adoption • How Video is Shaping the Telecom Industry • Understanding Location Application Domains • What are New Sales Potential via Value Added Services • How to build a solid VAS Proposition for Operators Ali.Saghaeian [at] gmail.com
  108. 108. Agenda • Mobile VAS and Real time Contextual offers • Go-To-Market Solution for Next Generation Mobile Operators • Superior Monetisation Potential and Freemium Business Models • Churn Reduction Potential via VAS Offering • Video Content & MNO Business Models • Spectrum of LBS applications for mobile operators with extended Wi-Fi Ali.Saghaeian [at] gmail.com
  109. 109. Five drivers are transforming our industry Intensifying M&A and consolidation Fierce competition from traditional & OTT players Changing customer expectations These game-changers require service providers to adopt new strategies Regulatory interventionism Technology & innovation accelerating Ali.Saghaeian [at] gmail.com
  110. 110. Mobile VAS – Real time Contextual offers • Flexible Offer design ,rule based promotions based on usage, loyalty, traffic and events • Event based Offer Management , Integrated with Real time Analytics • Personalized offers based on subscriber historical data records • Proactive Real time updates and notifications for upsell Data Top Up Turbo Boost Day special offer Wi-Fi Add on Plan Location based Promotions Data Passes Data Roaming Uses Cases that Substantially Increase Offer Uptake Ali.Saghaeian [at] gmail.com
  111. 111. Go-To-Market Solution for Next Generation Mobile Operators Launch Monetize Personalize •Target Customers & Market Positioning • Decide business model •Selecting the Right IT Platform •Increase Revenue & ARPU •Flexible Pricing •Monetization Use Cases •Enhanced Customer experience •Value Added Services •Mobile Self Care App •Analytics to Personalize user experience Go-To-Market Solution for Next Generation To succeed, Operators must pursue a strategic approach, with next-generation BSS systems that leverage the opportunities of real-time interaction and commerce Ali.Saghaeian [at] gmail.com
  112. 112. Freemium Business Model It is based on the up-sale of high-margin value-added and digital services to a ‘low-cost’ freemium-acquired customer base Basic Plan Up-sell high margin Value Added Services Usage Alert Extended Warranty Private Internet Data Rollover Security Premium VIP Services € 1.99 € 3.99 € 7.99 € 3.99 € 2.99 € 3.99 € X.XX / month X Mins Y SMS Z MBs MONTHLY € 0.00 / month X Mins Y SMS Z MBs FREE € Y.YY / month X Mins Y SMS Z MBs YEARLY Upgrade and up-sell implemented through sophisticated conversion platform Upgrade to Subscriptions Ali.Saghaeian [at] gmail.com
  113. 113. Superior Monetisation Potential Once a 'free' end-user has been acquired, the most important next step is its conversion from a 'free' into a 'paying' user, resulting in the monetization of the newly acquired base Underlying technology platform drives paid conversion better than world's best Internet companies "Free" converts to revenue generation as subs use more data and take up value-added services 35% 42% 35% 37% 41% 42% 47% 48% 49% 48% 48% Q1-2013 Q2-2013 Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014 Q4-2014 Q1-2015 Q2-2015 Q3E-2015 Traffic bundles, 36% Pay as you go, 6% Value Added Services, 29% Free traffic, 29% 7% 8% 9% 10% 11% 14% 18% 23% 29% 32% 35% Q1-2013 Q2-2013 Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014 Q4-2014 Q1-2015 Q2-2015 Q3E-2015 Monthly conversion rate (%) Distribution of 'pay' services among customer base (%) VAS adoption rate (%) Required conversion rate to 'break-even': 30% Current conversion rate: 48% Once a 'free' end-user has been acquired, the most important next step is its conversion from a 'free' into a 'paying' user, resulting in the monetization of the newly acquired base Ali.Saghaeian [at] gmail.com
  114. 114. New Sales Potential via Value Added Services •VAS are typically used to boost new sales with a bundle model, i.e. customer receives the VAS for free for a certain period when taking a new subscription or porting from competitor •Bundle can extend to full subscription contract period or be of shorter duration •Bundle can be ”hard” or ”soft” –In a hard bundle, the service is connected to all customers signing up for subscription –In a soft bundle, the service is optional to customers signing up for subscription •After bundle period, customers either retain the service and start paying standalone, or revert to the free version Impact on new sales New sales ARPU ~25 € ex VAT Bundle cost 25-85% standalone price (~10 €/month incl. VAT) Bundle validity vs. contract validity (3-24 months) Bundle is hard or soft Service retention rate Average sales commission (taking into account online share) Ali.Saghaeian [at] gmail.com
  115. 115. Churn Reduction Potential via VAS Offering Churn 20% Loyalists 25% Premium service penetration 6-24% Churn prevented by VAS 20-50% 0,06-0,60 percentage points Will churn regardless Non-users Bargain hunters 75% Premium service penetration 0% Churn is not homogenous – your most loyal customers are most likely also to buy your value added services Extremely sensitive to the nature of the service – how much effort the customer must put into changing the VAS provider Ali.Saghaeian [at] gmail.com
  116. 116. Value for money offers with Distinctive Value Added Services Case of PosteMobile (in Italy) PosteMobile is positioned as the enabler of the mobile digitalization with innovative, simple and secure services 4 Voice Messaging Internet Contents Products Distinctive VAS M-Banking M-Payment A Complete and Distinctive Offer e-mail Pay per use Browsing Tariff Plan Bundle Tariff Plan Customised Options Social Networks M-Commerce M-Postal Services M-ticketing News Entertainment Finance Sports Gossip Pay per use Tariff Plan Bundle Tariff Plan Handsets Smart phones Internet Keys Tablets PCs W hat’s next? Mpos & Merchant Services M-Ticketing (parking, transporta tion, car&bike sharing) Mobile Banking Mobile Payment Mobile Money Transfer Mobile Commerce Mobile Proximity Services Access (corporate, m-government highways) Insurance (house, health, car) Ali.Saghaeian [at] gmail.com
  117. 117. The strong adoption of Distinctive VAS is confirmed by the high volume of transactions Total transaction value of Distinctive VAS keeps growing since PosteMobile’s launch, as well as the number of transactions al Transaction Value Number of Transactions 29.7 Eur Mil Transactions, Mil 256 290 339 +17% +20% Total transaction value of Distinctive VAS keeps growing since PosteMobile’s launch, as well as the number of transactions Cumulative 18.7 23.3 24.6 2011 2012 2013 2014 198 2011 2012 2013 2014 Ali.Saghaeian [at] gmail.com
  118. 118. The Global Media and Entertainment industry: Opportunities for VAS Providers TV subscriptions and licence fees 2019 2014 $ billions Ali.Saghaeian [at] gmail.com
  119. 119. Digital music: The potential for growth is significant Global music streaming revenue will exceed US$4bn in 2018 0 500 1000 1500 2000 2500 3000 3500 4000 4500 2013 2014 2015 2016 2017 2018 Global music streaming revenue ($USmn) Ali.Saghaeian [at] gmail.com
  120. 120. Global, consumer spending on digital music, 2014- 2018 • Mobile operators’ share in developed markets is very little – negligible - but can command a bigger share of the retail price of mobile formats - ring tones, ring back tones - in the less developed territories 6,258 6,520 6,755 6,891 7,057 2,692 3,174 3,557 3,837 4,035 1,230 1,212 1,233 1,292 1,399 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 2014 2015 2016 2017 2018 Consumer spend ($m) Downloads Subscriptions and streaming* Mobile Ali.Saghaeian [at] gmail.com
  121. 121. TV and Video over 4G •LTE is a Video Distribution Network •Innovation enables differentiation •Differentiation drives monetisation Ali.Saghaeian [at] gmail.com
  122. 122. Video is Shaping the Telecom Industry 1 million minutes of video content will cross the network by 2018. Globally, IP video traffic will be 79 percent of all IP traffic by 2018 Consumer VoD traffic will double by 2018. Content delivery network traffic will deliver over half of all Internet video traffic by 2018. IP Video and Mobile trends converge Ali.Saghaeian [at] gmail.com
  123. 123. Key Numbers in the Market Global video traffic *Cisco Online global video subscription revenue *Statista Online video advertising spending in the U.S *DTVR TV viewing done through digital streaming *gfk MRI Consumers watch streaming video daily *Nielsen Abandonment rate immediately with poor quality *Akamai Abandonment rate with 5 sec startup delay *Akamai Consumers are frustrated with video buffering *Research Now Severely irritated when a video didn’t load quickly *Research Now Users heart rate increase when buffering *Ericsson 25,000,000 TB $10B $6.5B 28% 43% 33% 50% 66% 21% 38% Ali.Saghaeian [at] gmail.com
  124. 124. Online Video Viewing Habits Internet TV show and movie viewership continues to grow for adults 18-24 and 55+, but is relatively flat for other age groups How often do you watch TV shows or movies on the internet? (% of respondents who watch at least weekly) Base: AllSource: 2012-2014 AV&Co. Surveys, 2015 AV&Co./EPIX Survey (n=3,461), AV&Co. analysis 62% 60% 45% 33% 24% 75% 72% 54% 37% 26% 81% 80% 68% 51% 36% 79% 82% 77% 66% 48% 89% 84% 73% 65% 60% 18-24 25-34 35-44 45-54 55+ 2011 2012 2013 2014 2015 Ali.Saghaeian [at] gmail.com
  125. 125. Barriers to Mobile Video Consumption •The number one barrier to usage is still ‘Data Shock’ •Adaptive streaming makes it difficult to explain what an hour of TV ‘costs’ •W e need communicate the maximumamount of data used for programmes •W e can do this for most of the mainstream UK broadcasters •Do we need to start to think about charging in duration not MB/GB? •What challenges would that bring? Consumer barriers to watching mobile video Data costs too high Content costs too high Low internet speed Poor Coverage Device limitations Accessing Content too difficult Quality poor Content poor Ali.Saghaeian [at] gmail.com
  126. 126. Mobile Device Usage in Online Video Services Consumers who use online video services on a smartphone or tablet do so primarily to watch short clips they can only find online or TV series Short clips I can only find online TV series Music videos News Movies TV series I can only find online Short shows I can only find online Live sports Game shows, Reality TV cooking, etc How often do you watch the following types of content on a mobile device (e.g., smartphone, tablet)? (% of respondents who watch video on mobile devices at least weekly) Ali.Saghaeian [at] gmail.com
  127. 127. Video Content & MNO Video Business Models Mandates A Flexible Set of Edge-based Delivery Strategies Mobile-Edge Delivery Strategy OTT Cooperative Content Delivery (Billing-Based Rev. Share Agreement) OTT Encrypted Content Delivery (Cooperative or Non-Cooperative) Video Content Type + Session Encryption (e.g. SSL) + Content Encryption (e.g DRM) Managed Content Delivery (MNO owned Quad-Play) OTT Content provider + CDN + Session Encryption (e.g. SSL) OTT Encrypted Content Delivery (Key Sharing Agreement) OTT Hosted Content Delivery (Edge-based CDN Hosts: OTT SW + Content) MNO Video Strategy Ali.Saghaeian [at] gmail.com
  128. 128. Location is a data play, not just a service enabler Ali.Saghaeian [at] gmail.com
  129. 129. Location Application Domains: An expanding remit across many domains Ali.Saghaeian [at] gmail.com
  130. 130. Location Based Services Ready for Growth 30% CAGR between 2014-19 Source: Convergence Catalyst 74% Of US smartphone owners use LBS Source: Pew Research $43 B Market Size By 2019 Source: Juniper Research How W ill You Capture the Opportunity? Location Based Services Ready for Growth Guest Wi-Fi Navigation Analytics Push Notification Staffing & Asset Management Ali.Saghaeian [at] gmail.com
  131. 131. Spectrum of LBS applications for mobile operators with extended Wi-Fi Ali.Saghaeian [at] gmail.com
  132. 132. Paradigm Shift: A Buying Led Approach Order Control Care International Roaming Pack 200 MB / wk European Roaming Pack 500 MB / wk Off-Peak Booster Unlimited Fast Lane data access during off-peak hours $3 for 30 days (subject to F.U.P) Tablet Pack 2G of Standard+ Data $6 / month Social Media Pack Unlimited access to your 5 favourite socials $2 / month Offer for One Create your own personalized plan that’s just for you! Gaming Pack Unlimited Fast Lane access to your 5 favourite online games $1 / hour SpendControl+ Set your own daily/weekl/monthly text notifications $3 / month Navigation Pack Unlimited GPS access per day (+ appropriate QoS) $1.5 / day Share Everything Unlimited TALK Unlimited TEXT Shareable DATA On up to 10 devices Starting from $100 / month Fair Usage 1 GB Fast Lane data & usage notifications. Additional usage @ normal lane speed. Purchase of additional Fast Lane data bundles Concert Replay 3 day Fast Lane concert replay streaming no other data charges during off-peak $5 for 3 days Ali.Saghaeian [at] gmail.com
  133. 133. Driving Mobile VAS Adoption and Creating a Sustainable VAS Proposition in New Mobile Generations Exploring Mobile Apps Categories and Successful Mobile VAS and Multimedia Applications Strategies for Monetizing Mobile Content, Services and Applications in 4G and 4.5G Market Value Creation and Customer Experience Management in Mobile VAS for an Enhanced Customer Journey8 5 7 6 CONTENT & AGENDA – II / III
  134. 134. Exploring Mobile Apps Categories and Successful Mobile VAS and Multimedia Applications By ALI Saghaeian Chief Analyst & Consultant Telecoms, IT and Media Ali.Saghaeian [at] gmail.com
  135. 135. Objectives • What are different Mobile App Categories & Functions • Reviewing Successful Mobile VAS and Multimedia Applications • How to boost the consumption and increase revenue monetization streams • What APIs can Telcos offer • Which Enterprise Apps are being Deployed/Used • Pros and Cons for Providing Mobile Apps Ali.Saghaeian [at] gmail.com
  136. 136. Agenda • Communications as an important part of smartphone usage • Mobile data: traffic share by application type • Operators’ Mobile App Functions • Boosting consumption and increasing revenue monetization streams • Top APIs operators could implement • Case Study: Network API Platform • Making the most of enterprise apps Ali.Saghaeian [at] gmail.com
  137. 137. Communications remains an important part of smartphone usage... but its role is diminishing Average time per day spent using various functions and apps on smartphones [Analysys Mason and Nielsen, 2014] Ali.Saghaeian [at] gmail.com
  138. 138. Mobile data: traffic share by application type In 2014 video already represented almost half of the whole data traffic, and for 2020 the percentage share is expected to increment Browsing and audio do not affect much on the network traffic and social networks are expected to keep the same traffic share (around 15%) Ali.Saghaeian [at] gmail.com
  139. 139. Consumers continue to use apps Penetration of top five communications apps in selected countries (smartphone owners only), July/August 2015 Source: Analysys Mason - 2015 France Germany Spain UK USA South Korea Skype Messenger WhatsApp SnapChat iMessage Ali.Saghaeian [at] gmail.com
  140. 140. Composition of online communities changes with penetration Source: Analysys Mason - 2015 Average number of comms apps used, by age, Europe/USA/S Korea Indicative usage of different comms apps in Spain Questions: various; n = 8270 0 0.51 1.52 2.53 3.518–24 25–34 35–44 45–54 55–64 65+ Average number of apps WhatsApp App communities in Spain 29%23% 33%Skype Facebook Messenger Snap Chat iMessage Viber LINE Ali.Saghaeian [at] gmail.com
  141. 141. Operators’ Mobile App Functions Source: Openet, 2015 Ali.Saghaeian [at] gmail.com
  142. 142. Operators’ Mobile App Functions (Continued) Source: Openet, 2015 Ali.Saghaeian [at] gmail.com
  143. 143. Operators should be looking for growth in consumer attention and identifying service/partnership opportunities Penetration of apps by category, and corresponding growth between 2011 and 2013;(2011: n =1079; 2013:n =1596) Social networking Productivity Gaming TV and video Commerce Music Financial services Health Addressable market growth Percentage of panellists Penetration: 2011 2013 Growth Ali.Saghaeian [at] gmail.com
  144. 144. Create new opportunities to boost the consumption and increase revenue monetization streams Case of Telecom Malaysia Ali.Saghaeian [at] gmail.com
  145. 145. Can operators leverage the native interface as a platform? Time spent on smartphones by interface type [Source: Analysys Mason and Nielsen, 2015] SK Telecom’s T-Phone 2.0 service • Taxi apps • Job search • Used goods • Restaurant apps Third-party APIs Internal APIs • Real-time usage • Directory services Enhanced dialler experience • Group calling • Video calling • Improved address book • Safe-call feature • Message pop-up (dialling) Interface Native dialler/SMS Device functions Browser Apps Ali.Saghaeian [at] gmail.com
  146. 146. Operator APIs 9 App/Service Portfolio Enable operators to exploit core Telco assets better. Ali.Saghaeian [at] gmail.com
  147. 147. What APIs can Telcos offer? Capabilities Opportunities Telco API internal systems billing, rating, charging lower operational costs payment services calling identity and security location customer insight customer profile cloud call centers enterprise cloud messaging device CRM VAS personalization hypervoice communication enabled business processes directory fraud management Ali.Saghaeian [at] gmail.com
  148. 148. Top APIs operators could implement Telco Network APIs market is expected to account for $157 Billion in global revenues worldwide by 2018 growing at a CAGR of 38% between 2013 and 2018 Source: MindCommerce: Public advertisement for “Telecom Network API Marketplace: Strategy, Ecosystem, Players and Forecasts 2013-2018” Click to call, meet me at my number, alerting, etc Payment across goods & services USSD in developing markets Advertising with user profile under customer control Presence & location enabled call centers Number provisioning Messaging enabled customer service & business processes Other (Directory services, IVR, M2M, etc) Ali.Saghaeian [at] gmail.com
  149. 149. Helping developers deliver the right applications on the right device to over 100 Million customers Case of AT&T Developer Program •Online API Platform, AT&T ARO, Development Resources, Device Specs, SDK and Tools. •Community and Support Live Chat, Forums, Webcast, Tech Support •Events and Contests Developer Summit, Hackathons, Contests, Fun events Access to all site information $99 gives you full access to all APIs , and One Million API-points per month. Example: 750K Speech API transactions per month without any additional cost. Diagnosis tools that help you efficiently implement apps that run faster. Sample code and Toolkits that simplify the integration, and speed-up your development. Development Tools Tons of Resources Free Membership Ali.Saghaeian [at] gmail.com
  150. 150. Case Study: AT&T API Platform The API Platform exposes core capabilities through RESTful public APIs •Free 90-day trial •Competitive pricing: Annual fee of $99 grants access to all APIs on the platform and 1,000,000 calls per month. –After 1,000,000 API calls a month, pay at the rate of only a penny per call •Easy, self-service access to RESTful APIs •Extensive documentation •Tools and SDKs to ease development for HTML5 and native apps •Sample apps and code © 2013 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. 5 API CATALOG •Speech (Speech-to-Text & Text-to-Speech) •SMS & MMS Messaging •Payment (with AT&T billing) •Location •Device Capabilities •In-app Messaging from Mobile Number •Advertising •Call Management (Beta) IN ALPHA TESTING •Call Management with WebRTC •Account Details Test the Alpha APIs at https://auth.tfoundry.com/sign_in Ali.Saghaeian [at] gmail.com
  151. 151. Success Story: In-App Messaging from Mobile Number (IMMN) Send texts from the subscriber’s AT&T mobile number – and keep users engaged in your app No other U.S. carrier offers the ability to send SMS and MMS from a 3rd party site to the mobile number of the sender – and have the message sent from the subscriber’s mobile number. Ali.Saghaeian [at] gmail.com
  152. 152. TELUS API Offering: 75+ APIs and growing Ali.Saghaeian [at] gmail.com
  153. 153. Overview of Orange API offers AMEA priorities for 2015 Evolution of Orange Money into a Digital payment solution open to a selection of partners Orange Money API Evolution of Bulk SMS into a self-service, multi-country product allowing developers to easily send SMS to all Orange countries SMS A2P API Evolution of Premium SMS into a Digital payment solution, directly connected to Prepaid and Postpaid Orange accounts Carrier Billing API Multi-country USSD shop , open to partner services on a dedicated short code in a Kiosk model, and accessible through APIs USSD Shop API Ali.Saghaeian [at] gmail.com
  154. 154. Open API Hackathon – ideas summed up: Case of Orange Ali.Saghaeian [at] gmail.com
  155. 155. Development of new services: Case of Orange 34 Connected devices Internet of Machines Internet of Objects IoT API Data Operator API IoT API Data Operator API Data Operator API Orange is working on a data powered open platform for the development of new services for enterprises and the mass market : Orange Datavenue Smart Data Aggregation Platform Enterprises Data Open Data Data Data Cloud Storage Data Connectors Privacy Authentication User Profile Rules Management B2B B2B2C Developers IOT data aggregation platform Liveobjects Flexible Data Secured & isolated environments Ali.Saghaeian [at] gmail.com
  156. 156. Telecom Italia: Network API Platform Ali.Saghaeian [at] gmail.com
  157. 157. Service Exposure: APIs catalog & billing models Telecom Italia’s update on Network API Platform Ali.Saghaeian [at] gmail.com
  158. 158. Making the most of enterprise apps: managing the full lifecycle Deploy Monitor Fix Analyze Update / retire Users Time Frequency Activities Crashes Bugs Tack usage in real time Push OTA Discover in enterprise app store Apply learning Wipe Off-board Ali.Saghaeian [at] gmail.com
  159. 159. Which Enterprise Apps are being Deployed/Used within Asian Telecom Operators? * Doc sharing and E-mail are viewed as critical apps accessed from tablets/smartphones Web Conferencing CRM and Business Intelligence Social Media Collaboration Video Conferencing Voice Based Apps (Softphones) Email Documents and File Sharing Ali.Saghaeian [at] gmail.com
  160. 160. How Many Enterprise Mobile Applications are being Deployed by Asian Telecom Operators? 85% deploy at least 1 app; 38% deploy between 1 to 10 apps None One to five apps Six to 10 apps 11 to 19 apps 20 to 49 apps 50 or more apps Don’t know Current Apps New Apps During Next 12 months Ali.Saghaeian [at] gmail.com
  161. 161. Who Are the Users of Enterprise Mobile Apps? 90% of all users have access to mobile apps, although it started with Office management, it has spread to Sales and delivery personal Office management (e.g. personnel in managerial or executive roles) Mainstream office workers (e.g. analysts, professionals, administration, etc.) Field sales personnel Field service or delivery personnel Other Ali.Saghaeian [at] gmail.com
  162. 162. Pros and Cons for Providing Mobile Apps to Operators’ Employees Companies deploy mobile apps for efficiency and productivity gains. The strongest adoption barrier continues to be data security worries. More efficient business processes More productive employees To keep up with our competition To establish a competitive advantage To make more money Results in cost savings To enhance customer engagement Enables more employee collaboration More satisfied employees Data security concerns High cost Back-office integration concerns No real business need Lack of executive support Unclear ROI Lack of internal resources Resources toselect app(s) Mobile device issues Worker resistance Ali.Saghaeian [at] gmail.com
  163. 163. Driving Mobile VAS Adoption and Creating a Sustainable VAS Proposition in New Mobile Generations Exploring Mobile Apps Categories and Successful Mobile VAS and Multimedia Applications Strategies for Monetizing Mobile Content, Services and Applications in 4G and 4.5G Market Value Creation and Customer Experience Management in Mobile VAS for an Enhanced Customer Journey8 5 7 6 CONTENT & AGENDA – II / III
  164. 164. 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
  165. 165. 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 Ali.Saghaeian [at] gmail.com
  166. 166. 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 Ali.Saghaeian [at] gmail.com
  167. 167. Issues and Challenges in Telecom: Exploiting Monetization Opportunities Ali.Saghaeian [at] gmail.com
  168. 168. 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 Ali.Saghaeian [at] gmail.com
  169. 169. 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 Ali.Saghaeian [at] gmail.com
  170. 170. 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) Ali.Saghaeian [at] gmail.com
  171. 171. New Data Business Opportunities with Multiple Monetization Approaches Ali.Saghaeian [at] gmail.com
  172. 172. 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 Ali.Saghaeian [at] gmail.com
  173. 173. 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 Ali.Saghaeian [at] gmail.com
  174. 174. 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 Ali.Saghaeian [at] gmail.com
  175. 175. Broad Set of Monetization Use Cases Ali.Saghaeian [at] gmail.com
  176. 176. 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 Ali.Saghaeian [at] gmail.com
  177. 177. 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 Ali.Saghaeian [at] gmail.com
  178. 178. 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 Ali.Saghaeian [at] gmail.com
  179. 179. 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 Ali.Saghaeian [at] gmail.com
  180. 180. Need to open new revenue streams What will be the most lucrative new revenue streams next year? Ali.Saghaeian [at] gmail.com
  181. 181. OTT Monetization Opportunities Going Off-Net to Increase Reach Creating Targeted and Bundled OTT Offerings Upselling New and Existing Content Ali.Saghaeian [at] gmail.com
  182. 182. 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 Ali.Saghaeian [at] gmail.com
  183. 183. 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 Ali.Saghaeian [at] gmail.com
  184. 184. LTE is the industry opportunity for monetisation Ali.Saghaeian [at] gmail.com
  185. 185. 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 Ali.Saghaeian [at] gmail.com
  186. 186. 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 Ali.Saghaeian [at] gmail.com
  187. 187. 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 Ali.Saghaeian [at] gmail.com
  188. 188. 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 Ali.Saghaeian [at] gmail.com
  189. 189. 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 Ali.Saghaeian [at] gmail.com
  190. 190. Monetization Efforts With Mobile Network Geolocation Ali.Saghaeian [at] gmail.com
  191. 191. 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. Ali.Saghaeian [at] gmail.com
  192. 192. Monetising data – recent initiatives 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. Ali.Saghaeian [at] gmail.com
  193. 193. Monetising data – recent initiatives 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. Ali.Saghaeian [at] gmail.com
  194. 194. 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) Ali.Saghaeian [at] gmail.com
  195. 195. Driving Mobile VAS Adoption and Creating a Sustainable VAS Proposition in New Mobile Generations Exploring Mobile Apps Categories and Successful Mobile VAS and Multimedia Applications Strategies for Monetizing Mobile Content, Services and Applications in 4G and 4.5G Market Value Creation and Customer Experience Management in Mobile VAS for an Enhanced Customer Journey8 5 7 6 CONTENT & AGENDA – II / III
  196. 196. Value Creation and Customer Experience Management in Mobile VAS for an Enhanced Customer Journey By ALI Saghaeian Chief Analyst & Consultant Telecoms, IT and Media Ali.Saghaeian [at] gmail.com
  197. 197. Objectives • How to Map the Customer Experience and create Value • What are the main Objectives for Customer Experience Management (CEM) • Comparing Traditional Customer Service vs. Next Gen Proactive Support • Looking into economic principles for Superior Customer Experience • Understanding Customer Issues and moving through Customer’s Journey Ali.Saghaeian [at] gmail.com
  198. 198. Agenda • The primacy of the customer experience is taking root • Mapping the Customer Experience • Customer experience as an ecosystem play • Top business and process challenges for customer experience programs • Deepen engagement over the lifecycle of the customer • Importance of Self Service in better customer experience Ali.Saghaeian [at] gmail.com
  199. 199. The primacy of the customer experience is taking root Progress towards digital transformation Source: Ovum | TMT intelligence | informa 13.3% 14.0% 15.1% 15.2% 22.8% 27.1% 28.1% 26.9% 30.0% 28.8% 33.7% 33.4% 35.7% 35.3% 32.3% 27.8% 30.2% 29.8% 29.3% 31.3% 20.0% 16.8% 17.5% 18.2% 14.9% 15.9% 12.9% 11.4% 7.2% 7.8% 7.5% 10.2% 6.5% 7.2% 6.2% 5.0% 5.8% 4.0% 3.5% 4.9% 5.1% 4.4% 2.8% 3.8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Transform IT capability Modernize legacy systems Build the modern workplace Adopt cloud services Exploit business information Connect the physical world Manage security, identity and privacy Enhance customer experience Percentage of respondents Progress towards digital transformation Complete Well advanced In progress Early stages Not started Not relevant Ali.Saghaeian [at] gmail.com
  200. 200. Mapping the experience W eb IVR Live Chat Email Agent Events Social Media Surveys Feedback Calls Customer Service Operations Sales Management Marketing Product Mgt Customer Experience Human Resources Mobile Applications Ali.Saghaeian [at] gmail.com
  201. 201. Why bother engaging with YOUR customers? • If you don’t, your competition will! • Who will be your most fierce competition next year? Ali.Saghaeian [at] gmail.com
  202. 202. The way we engage our customers needs to change as a result of the shift to digital Empowered and demanding: personalised content and differentiated experiences are key ‘Always on’: have constant access to news and information Increasing their expectations: companies must engage digitally Pioneers: embracing new technology at high speed Networking: using digital tools and platforms to build cross-border networks Today’s customers are... Ambitious: keen to harness the power of digital to further their careers and development Ali.Saghaeian [at] gmail.com
  203. 203. Customer Service Vs Customer Experience Customer Service Customer Experience Happens only when there is a problem Overall perception A point The line What the organization does What the customer thinks An event A feeling Covers 3 marketing P’s: people, physical evidence, process Covers 7 marketing P’s: people, physical evidence, process, product, price, distribution, promotion Transactional and quantifiable Subjective and experiential Ali.Saghaeian [at] gmail.com
  204. 204. Customer experience is an eco-system play Operator's Network Radio network, backhaul, coverage etc Subscribers Subscriber usage behaviour and Personalization Devices Device behaviour, quality, battery performance Environment Location, weather conditions and other external factors Applications App behaviour, performance Operating System Operating system stability, usability etc Ali.Saghaeian [at] gmail.com
  205. 205. The main objectives for Customer Experience Management (CEM) are: 6 Improving operational efficiency and quality •Understand issues and challenges •Use SQM as a key part to ensure operational quality levels •Allow proactive and “real-time” decision making Enhancing customer touch points •Integrate different metrics to allow a holistic customer view •Provide a seamless experience across the different touch points •Understand and manage the customer journey 3.Supporting differentiation & new business models •Differentiation and monetization support •Consulting and libraries of actions/ use cases/ experience packages •Data and profile brokering Ali.Saghaeian [at] gmail.com
  206. 206. Traditional customer service vs. Next Gen proactive support Interaction type Traditional reactive post-sales customer interactions Pro-active pre- and post-sales customer interactions Channels Inbound telephone customer care Inbound service-to-sales Outbound telesales Email Pro-active web chat Click-to-call Chat-to-Voice escalation Interaction triggers None Individual customer journeys Behavioral attributes Purchase and experience history Value at stake Customer lifecycle attributes Approach “Waiting for the phone to ring” or email to come in “Reaching out to customers in need, targeted and contextualized” Cost & ROI Cost per minute, regardless of sales conversion Unit based and variable compensation model ensures positive ROI Ali.Saghaeian [at] gmail.com
  207. 207. Customer Experience Management (CEM) is a key milestone for Telecom Operators Please rank in order of importance the operational issues that communications service providers must address in the next three years Ali.Saghaeian [at] gmail.com
  208. 208. Understand your current state and aim for the next level of maturity Customer-Adaptive CEO, board level sponsorship, enterprise-wide commitment Focused on: • New business models • Continuous innovation • Anticipating the future • Disruptive force Customer Experience Coherence as an organisation Omnichannel CX CEO, board level sponsorship, enterprise-wide commitment • Customer journey’s mapped • Integrated channels • Context 360 Multichannel Basic integration between systems but siloed mentality and product/cost driven Departmental Departmental silos, Fragmented CX Class leading Ali.Saghaeian [at] gmail.com
  209. 209. Organizations are largely disconnected from their customers, putting their futures at risk Critical areas of weakness identified  Leadership ‒ Slow decision-making, suggesting command-and-control is still prevalent  Partially engaged workforce ‒ Lack of empowerment or concern for their aspirations  Weak sensing capabilities ‒ Largely flying blind as lack both insight and foresight  Fragmented/disjointed customer experience ‒ Insufficient to meet rising customer expectations of what a good experience should be – a bolt on approach to technology  Innovation is haphazard ‒ No disciplined broad- based innovation management capability in place = hostage to fortune  Poorly aligned, overly complex & disconnected mission critical processes ‒ Negative impact on productivity and efficiency & critical information flows  Lack an adaptive enterprise architecture ‒ Held back by legacy systems and ad hoc IT approaches. User experience is not consumer-grade level Ali.Saghaeian [at] gmail.com
  210. 210. Consumers expect a personalized experience 1 - Teradata & Celebrus Research 2015. 2 - Location Score Index (Q1 2025) Thinknear via GPS Business News Poor Monetization Efforts can be Damaging 1. Teradata & Celebrus Research 2015. 2. Accenture Personalization Survey 2015 Nearly 60% of consumers want real-time promotions and offers.2 63% of consumers across every age group like to receive personalized offers.1 Only 37% of geo-tagged mobile ad impressions are within 100 meters of the user’s true real-time location.2 77% say they would take action to poorly personalized experiences.1 Ali.Saghaeian [at] gmail.com
  211. 211. Customer experience – various sources of complexity can make solutions difficult Complexity of products Pricing complexity Switching processes Contractual restrictions on ability to switch Imbalance between parties’ rights & obligations Bundled services Importance of services The complexity of products and speed of change means that consumers may find it difficult to understand the products they are buying and to compare them in order to reach a purchasing decision. Pricing complexity can make choosing the best deal difficult. These can lead to poor consumer experiences and result in harm to consumers who attempt to switch (and/or port their number). This can be a feature in mobile markets where there are low incentives on CPs to agree to switching processes that are good for consumers. There is an increasing trend towards CPs seeking to introduce contractual restrictions on customers’ ability to switch e.g. longer minimum contract periods (‘MCPs’) and penalties if they wish to exit the contract during this period. W here both parties to a contract have equal information and resource, they will also have equal ability to negotiate terms and to enforce. However, in consumer-to-business contracts this is not the case. It is often difficult to understand the implications of small print. The growth of bundles can generate valuable upside for consumers, but can also serve to exacerbate many of the issues identified above. The growing importance of communications services such as mobile to enable citizens to take full part in society and the economy has drawn attention to gaps in provision or take-up where there has not been a commercial case for CPs to invest and provide service. Ali.Saghaeian [at] gmail.com
  212. 212. Top business and process challenges for customer experience programs Getting a holistic view of the customer Understanding customers’ needs Providing responsive support Understanding account profitability Meeting SLA conditions Providing customized solutions/products Bringing new products to market Process complexity Management support Account Management Partnering with others in the value fabric Agreement of core metrics Ali.Saghaeian [at] gmail.com
  213. 213. Telcos are in the early phases of improving & managing CE Has you organization deployed any of the following customer experience management projects? Source: Ovum | TMT intelligence | informaIntegrating social media analytics with CRM Speech analytics Contact center analytics Digital marketing/marketing automation Mobile device tracking and profiling Social media and Big Data mining Order-to-activation Multi-channel routing Feedback and surveys (voice-of-customer) Setting up service monitoring/ operation centers Integrating inputs from OSS/BSS into CRM Fully deployed Trialing Planning Considering use, but no firm plans Not considering Ali.Saghaeian [at] gmail.com
  214. 214. Successful enterprise innovators have 10 attributes in common Leadership Prioritize and foster innovation – remove barriers, provide resources/time, set challenges and priorities, enable Deep insight and foresight Market-led insights, current voice of the customer (VoC), and horizon scanning of emerging technologies Coherent innovation strategy Determine where and how to innovate. Select markets in which to compete/engage. Cast ideation net wide: crowdsourcing, coinnovation Balanced innovation portfolio Healthy mix of sustaining and disruptive innovation – products/services/customer experience and business models Adaptive planning Continuous versus annual planning cycle. Rapid allocation of resources for disruptive innovation Dedicated innovation team Dedicated team to act as catalyst and 100% focused on innovation Formal innovation management Coherent process from ideation through to selection, prototyping and launch, and product lifecycle management Culture Foster experimentation; fail fast, succeed sooner philosophy; agile approach Highly collaborative Across the enterprise, and with customers, partners, and suppliers Relevant ecosystem Innovation partners, venturing and options, incubation with entrepreneurial start-ups Ali.Saghaeian [at] gmail.com
  215. 215. Deepen engagement over the lifecycle of the customer Use cases Pricing: Recommendation: Bundled pricing plans Location based pricing Acquire Grow Retain W inback Incentives for the first top-up Discount on VAS trials Real-time Offers Personalized real time offers Next best offers Data/VAS/mMoney promotions Location based offers Churn control: Churn propensity scoring Customer experience optimization Winback campaigns Service/content recommendations Loyalty programs Tenure based personalized rewards Rewards & incentives: Ali.Saghaeian [at] gmail.com
  216. 216. Your Customer’s Journey Should Be Like This…. 9 1. Provide me with relevant and timely information 2. Tailor my engagement based on past interactions 3. Personalize offer to my budget and needs 6. Personalize my services on demand 7. Help me manage my services/spend 8. Share my experiences 5. Deliver right first time and every time 4. Keep the contracting process simple Ali.Saghaeian [at] gmail.com
  217. 217. Importance of Self Service in better customer experience New support paradigm for customers SATISFACTION DISSATISFIED CUSTOMERS ✔ Self Service customer support ✗ TRADITIONAL CHANNELS: Online, call center, Point of sale On device Self service - Quick Fixes - Personnalized support - Seemless user journeys - Self-service (no waiting time) - Qualified order bookings Still not migrated to Self-Service support Ali.Saghaeian [at] gmail.com
  218. 218. Right Message, Right Time, Right Location Brazil UK 55% 78% US UAE 63% 68% The messages you receive are not in line with your areas of interest Communicate with your customers at the precise MOMENT and LOCATION when it offers the most value Only mobile devices can deliver relevant experience! Ali.Saghaeian [at] gmail.com
  219. 219. Look into economic principles for superior customer experience Match right product to right customer Implement 3rd degree price discrimination Increase producer’s surplus by recommending right plan/pack to right segment of users based on their price elasticity Reduce dead weight loss in operator’s favour Demographic segmentation to identify price conscious users Send promotions at right time Price inelastic Price elastic Customer’s state of mind changes with the time of the day and day of the week Channel preference and location also changes with the time Build 360° customer profile Identify user’s interest , liking, usage behavior , etc to recommend right kind of product to the user Superior Customer Experience Personalization and Recommendation Bring together Buyer and Seller Ali.Saghaeian [at] gmail.com
  220. 220. RECOGNIZE INDIVIDUAL TRAJECTORIES Identify structure in routine Do video chats Location Reading mails Location Individual Places Life Pattern Streaming Music 8 am 10 am 12 am 14 pm 16 pm 18 pm use App‘s xyz Home A School Shop Office Home B Ali.Saghaeian [at] gmail.com

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