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Market Drivers and New Business Models

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While the drivers of change have been talked about by many, and vary somewhat from one discussion group to the next, there is no question that evolution of mobile user devices (not just tablets), …

While the drivers of change have been talked about by many, and vary somewhat from one discussion group to the next, there is no question that evolution of mobile user devices (not just tablets), network technology advances, regulatory updates, increased customer involvement with social networking, and the rise of cloud services will keep the communications marketplace in a state of flux for some time to come. With such monumental change, there is also a need to do business differently. This is especially important with regard to:

- The way pricing plans for communications services are defined;
- How offerings of network connectivity and content are monetized; and
- To what level of detail communications service providers (CSPs), working with supplier partners, can manage the monetization processes.

This webinar will:

- Provide insight into the game-changing realities that are affecting the CSP business landscape.
- Define how CSP business strategy is changing.
- Deliver insight about how business operations can now offer a new level of capability for meeting the monetization needs of today’s changing business environment.

Published in: Business, Technology

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  • 1. Karl Whitelock – Director Global OSS BSS Strategy Stratecast | Frost & Sullivan Analyst Briefing Presentation July 24, 2013 Market Drivers and New Business Models The Impact on Business Operations – What is Really Going On?
  • 2. Page 2 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Today’s Presenter  One of the original founders of Stratecast focused on the business strategies of the communications industry, Mr. Whitelock established the OSS/BSS Competitive Strategies practice.  He has authored over 175 publications concerning problems relative to the OSS/BSS marketplace. He presently covers the BSS functions including mediation, rating & charging, core billing, policy management, interconnect & settlements, content partner management, and subscriber data management. Director Global OSS BSS Strategy Stratecast | Frost & Sullivan
  • 3. Page 3 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Agenda  Where Are We Today?  Game Changing Realities • Business and Operations Impacts  Conclusion
  • 4. Page 4 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. What Customers Really Want CSPs to Get Right for Them Consumers, Small Business and Enterprise But do customers really know what they need? Did anyone want touch screen technology before it was available? But do customers really know what they need? Did anyone want touch screen technology before it was available?
  • 5. Page 5 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. But Something Weird is Happening Source: Cognizant
  • 6. Page 6 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. The World Around Us is Changing Dramatically ?What Industry Will Be Next? Source: Graphics from Cognizant  Many companies are only configured to address the business challenges of the past, even those of just five years ago …  If companies stop evolving, customers will stop coming.
  • 7. Page 7 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Communications Industry – Business Model of Yesterday Our Connected World Fixed-Line MobileIP  Voice  MMS / SMS  2.5G Data (GPRS/EDGE)  3 G Data (UMTS)  3.5G Data (HSPA)  4G Data (LTE) Mobile  Routers  Switches  Databases IP  Voice  Broadband DSL  Cable Fixed-Line Network Technology Source: TM Forum TAM, TMF GB929 Fulfillment Assurance Billing Customer Management Service Management Resource Management Supplier/Partner Management Enterprise Management Product Management Market/Sales Management OSS / BSS • Consumers • Small Medium Business • Enterprise Focus on Technology: •Fixed-line Voice •Mobile •Broadband Data
  • 8. Page 8 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Today’s New Business Reality Our ConnectedWorld Market Changes And Business Drivers A New Business Landscape
  • 9. Page 9 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Agenda  Where Are We Today?  Game Changing Realities • Business and Operations Impacts  Conclusion
  • 10. Page 10 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Key Business Drivers for the Communications Marketplace Today (1 of 2) Enterprise Solutions • Mobility Into Existing Services • Personalized Access RetailHealthcare UtilitiesTransport Logistics Education 3rd Party Applications •Retailing •Gaming & Entertainment •Business Enablement •Books & Education •Sports & Finance Regulatory Change •Bill Shock (Roaming) •National Broadband Networks •Lawful Data Retention (EUDR) •Corporate Compliance (SOX) Multi-Industry Convergence • Multi-Service • Multi-Technology • Multi-Partner • New Business Models CSP Industry Maturation Technology Infrastructure • IP expansion from network core  access plane (fixed and mobile) • Cloud Convergence (IaaS, PaaS) • LTE, HSPA, SDP, IMS, SOA, ITIL. … + IP PSTN Mobile User Device Evolution Consumer Electronics + Telecommunications • Multi-function & Multi-purpose • Portable and Individualized
  • 11. Page 11 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Key Business Drivers for the Communications Marketplace Today (2 of 2) Mobile Security • BYOD • User Access (Email, Social) • Data Usage (Time, Location) • Encryption and Backup NFC and mCommerce • Transaction Accountability • Security and Governance • Customer Acceptance • Banking Regulatory Real-Time Analytics • Usage Analysis for Personal Pricing Offers • Customer Behavior Analysis • Resource Planning New Business Models • B2B and B2C Together • Monetize Cloud Services • Mobility in Everything • Cross-Industry 2.0 Machine- to-Machine • Customer Solutions • Multi-Layer M2M Services • “Everything as a Service” HealthcareTransport Logistics Insurance Low Tech Retail Cloud Services • E2E Customer Solutions • Business Virtualization • SaaS, PaaS, IaaS • Data Storage Social Networking • Virtual Presence • Small Office / Home Office • Consumer / Business Circles • Online Substitution
  • 12. Page 12 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Game Changers for the Communications Industry 1. Smartphones and Tablets 2. Fast Mobile Networks (4G LTE) 3. Social Networking 4. Healthcare Industry Adoption of Smartphones 5. Cross Industry Interaction 6. Business Solutions with M2M 7. Mobile Retail and Customer Payments 8. Multi-Sided Business Models: B2B2…2C 9. Mobility Services Within Other Industries 10.Augmented Reality
  • 13. Page 13 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. 37.43 47.79 26.91 26.03 35.06 37.04 17.07 20.34 18.65 16.24 14.1 8.4 8.75 8.74 7.37 5.21 3.79 4.36 6.89 0.72 1.7 2.32 1.19 0.27 0 10 20 30 40 50 Q2 2013 Q4 2012 Q2 2012 Q4 2011 Q2 2011 Q4 2010 Q2 2010 Q4 2009 Q2 2009 Q4 2008 Q2 2008 Q4 2007 Game Changer #1 – User Device Evolution , an Improved Experience January 9, 2007 June 29, 2007 Announced: First Available: iPhone 356 million sold to date!! (Mar 2013) Worldwide iPhone Sales by Apple Fiscal Quarter (Q2 2013 = Jan – Mar 2013)
  • 14. Page 14 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. 19.48 22.86 14.04 17.04 11.8 15.43 11.12 9.25 4.69 7.33 4.19 3.27 0 5 10 15 20 25 Q2 2013 Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012 Q4 2011 Q3 2011 Q2 2011 Q1 2011 Q4 2010 Q3 2010 Game Changer #1 – User Device Evolution, an Improved Experience January 27, 2010 April 30, 2010First Available: Announced: 140+ million sold to date!! (Mar 2013) Worldwide iPad Sales by Apple Fiscal Quarter (Q2 2013 = Jan – Mar 2013) iPad
  • 15. Page 15 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Impacts of Touch-Screen Technology on CSP Business Operations  How Do Touch Screen User Devices: • Change the Meaning of Real-Time Support? • Billing Mediation? • Convergent Charging? • Of Service Quality? • Tiered Pricing Plans? • Network Capacity Planning? … 3G Smartphones generate 50 times and tablets generate 120 times more data traffic than a regular feature phone. In addition, 4G LTE networks generate at a minimum, 10 times more data traffic than 3G networks. 3G Smartphones generate 50 times and tablets generate 120 times more data traffic than a regular feature phone. In addition, 4G LTE networks generate at a minimum, 10 times more data traffic than 3G networks.
  • 16. Page 16 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Game Changer #2 – 4G LTE Technology is Now Mainstream  Network operators have invested in 4G LTE in 124 countries  Networks commercially launched through April 7, 2013  4G LTE service is now available in 37 more countries than a year ago 4G LTE is the Fastest Developing Mobile Technology Ever4G LTE is the Fastest Developing Mobile Technology Ever 415 163 37 4G LTE Network Launches Source: Global Mobile Suppliers Association (GSA)
  • 17. Page 17 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Game Changer #4 – Healthcare Adoption of Smartphone Technology  Digitizing a human being is: • “… remotely and continuously monitor each heart beat, moment-to-moment blood pressure readings, the rate and depth of breathing, body temperature, oxygen concentration in the blood, glucose, brain waves, activity, mood… • “… image any part of the body and do a 3D reconstruction, eventually leading to the capability of printing an organ. • “assembling all of this information about an individual from wireless biosensors …” “Medicine is about to go through its biggest shakeup in history!” Dr. Eric Topol, Cardiologist “Medicine is about to go through its biggest shakeup in history!” Dr. Eric Topol, Cardiologist
  • 18. Page 18 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Game Changer #8 – Multi-Sided Business Models: B2B2C The monetization function, isn’t just about end-user customers. It must include all concerns with suppliers, distribution channels, and resellers, as applicable The monetization function, isn’t just about end-user customers. It must include all concerns with suppliers, distribution channels, and resellers, as applicable Source: MetraTech
  • 19. Page 19 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Agenda  Where Are We Today?  Game Changing Realities • Business and Operations Impacts  Conclusion
  • 20. Page 20 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. CSP Community is at a Crossroads – Now More Than Ever Before “If I Had Asked My Customers What They Needed, They would Have Told Me a Faster Horse.” – Quote Often Attributed to Henry Ford “If I Had Asked My Customers What They Needed, They would Have Told Me a Faster Horse.” – Quote Often Attributed to Henry Ford
  • 21. Page 21 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Next Steps Develop Your Visionary and Innovative Skills Growth Partnership Service Share your growth thought leadership and ideas or join our GIL Global Community Join our GIL Community Newsletter Keep abreast of innovative growth opportunities Phone: 1-877-GOFROST (463-7678) Email: myfrost@frost.com
  • 22. Page 22 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Your Feedback is Important to Us Growth Forecasts? Competitive Structure? Emerging Trends? Strategic Recommendations? Other? Please inform us by “Rating” this presentation. What would you like to see from Frost & Sullivan?
  • 23. Page 23 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. http://twitter.com/frost_sullivan Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter http://www.facebook.com/FrostandSullivan https://www.linkedin.com/groups?gid=4480787 http://www.slideshare.net/FrostandSullivan
  • 24. Page 24 © 2013 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. For Additional Information Mireya Espinoza Corporate Communications Information & Communication Technologies (210) 247-3870 Mireya.espinoza@frost.com Karl M. Whitelock Director Global OSS BSS Strategy Stratecast | Frost & Sullivan kwhitelock@stratecast.com Mike Suby Vice President of Research Stratecast (720) 344-4860 Mike.suby@frost.com Perry Somers Director of Business Development Stratecast (360) 416-4982 psomers@frost.com

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