‘ Two-Sided’ Telecoms Markets The $375 billion growth opportunity Simon Torrance, CEO, Telco 2.0 TM Initiative 20th January 2009 [email_address] www.telco2.net Business Model Innovation for the Digital Economy

What do telco execs really think today? Source: Telco 2.0 Executive Brainstorm, 4-5 Nov 2008. Participant survey N = 250

Telcos have a wealth of untapped data assets… MY CREDIT MY PERSONAL DATA MY STUFF MY IDENTIFIERS MY INTERACTIONS MY RELATIONSHIPS MY CONTEXT MY DEVICES Bad debt Demographics Average balance Name Address Gender Profile Preferences SIM SoftSIM Serial Number Device details Number SIP Number IP Address Location Presence On/Off Roaming Pictures Videos Calendar Address Book Bank School Friends Workplace Browsing History .mobi domains QR Codes

…by contrast, Google has very few Search Term URLs

Google is a ‘two-sided’ business model master FREE! Attracts audience that upstream players (advertisers) value $$$ Advertisers Audience

Many successful two-sided market players

The Telco 2.0 platform connects providers to users, creating a ‘two-sided’ market $ ‘ Upstream’ Customers ‘ Downstream’ Customers Millions of Customers Thousands of Segments $ Developers Retailers Government Brand Advertisers Content Owners Telco – Retail Content Owners Telco Platform

New Telco 2.0 revenue sources – from ‘two sides’ now $$ Downstream End Users Consumers Retail Platform SMEs Enterprises Public Sector 1. Developers Retailers Government Brand Owners Content Owners Telco (Retail) $$ Wholesale Platform Upstream Customers 2. B2B VAS Platform $$ 2.

Telco growth potential (Mature Markets) to 2017 $1,230bn $689bn

B2B VAS: seven buckets of value potential Total Market: $125 Billion

Only telcos have the breadth of capabilities Note: The relative quality of solutions has not been considered. Ability for players to offer specific B2B VAS platform capabilities 1. Via Google Checkout Identity, Authentication and Security     Advertising, Marketing & Business Intelligence   Content Distribution   Billing and Payments  (  ) 1.  (Voice-based) Customer Care  

Telco 2.0 strategies now seen by leading practitioners as very important to future profitability (comparison with current strategies) Source: Telco 2.0 Executive Brainstorm, 4-5 Nov 2008. Participant survey N = 250 Very important Not important Telco 2.0 Strategies Telco 1.0 Strategies

Powerful Platform Performance Precedent

Thank you More at: www.telco2.net [email_address] Business Model Innovation for the Digital Economy