HUAWEI TECHNOLOGIES CO., LTD.
From Vision to Reality:
Building Successful Service Innovation
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Situation Analysis: Analysys Mason Prediction
on Messaging (severe competition) and ARPU
Telco messaging will become niche, anticipate rapid revenue decline as SMS moves to data.
Analysys Mason is predicting a >25% ARPU decline by 2018 in Western Europe.
Industry needs to find >$100B in new revenues within 5 years, else face decline.
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Services are the key to future profits
Horace Dediu Asymco: April 2014
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Operators have THREE distinct businesses
The new telco Opportunity: build an
ecosystem to drive distribution of unique
Asymetric Competition: OTTs offer services
for free (e.g., Viber), close to free (e.g.,
Whatsapp). The “bundle” biz model of
“service + connectivity” of telcos makes it
difficult to compete .
A symbiotic relationship between telcos and
OTTs: (e.g. iPhone apps drive data
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Platform economics – the Telecom API
Global (Telecom) Developer Community
Huawei Platform and APIs
Core Network, IT, Software and Services
Operator B Operator C
Exposed Telecom Capabilities
creates potential for new services
New applications and services creates
demand for operator capabilities
Successful new communication services
create new demand for operators core
business (voice, messaging, data)
services add value to
and reduce churn
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Indonesia (On going)
Aggregation: Huawei Hosting Centers to
support digital service transformation
l Now Huawei has 7 hosting centers (1 central, 6 regional) all over the.
l Other three regional hosting centers in Egypt, South Africa and Brazil are in building.