The Two-sided Telecoms Business Model Voice & messaging: Future products and business models 30 May 2008 Martin Geddes, Chief Analyst, STL Partners [email_address]

The Questions

What’s telephony for? What’s the unmet user need? Where’s the money? What’s next?

What’s telephony for?

What’s the unmet user need?

Where’s the money?

What’s next?

Ring, Pickup, Talk, Goodbye?

Voice built on obsolete assumptions

Context: Three propositions 2017 % of Total Mobile Voice Minutes, Europe 2007 2012 Traditional Telephony Enhanced Carrier Voice Private Voice Apps & Handsets Other Sold to upstream customers Sold to downstream customers Three Core Propositions Four Product Sets 1. Bundled voice, video and data plus VAS 3. Logistics Services for Data 2. Bulk Wholesale Platform Products (partners’) Products (own) Packets & Platters Processes

The telephony interaction pyramid Comm- unities Relationships Conversations Interactions Rendezvous VOLUME TELEPHONY SOCIAL NETWORKING

Economics of telephony Devices Connectivity Privacy Presence Availability Directory Integration Social networking Transactions BEFORE CALL DURING CALL AFTER CALL

Growth areas: B2C, C2B… B2B? PUBLIC ENTERPRISES

Hotel autobuddy Hotel as temporary IM buddy?

The Need

Douglas Galbi: “Sense in Communications” Information transfer Storytelling or Narrative Presence Text Audio Images

Paris telephony - opera

Things happen out of sight… Other times Other places

Just a bunch of colored pixels (but you made sense of them)

Hamzanama Folios (1542-1605) Akbar, 3 rd Mughal Emperor of Hindustan

They had presence

She felt a presence

Budapest Heat See http://www.aether.hu/budapestheat.htm

Media Lab Europe: Floral Display See http://web.media.mit.edu/~stefan/hc/projects/one2one/

Led Zeppelin’s take on Presence

Is this the best we can do? (NO!)

The Answer

Distribution

Social awareness Is she the boss or the secretary?

Is she the boss or the secretary?

Directory Directory

Presence “ Presence” (really availability)

Comprehension Comprehension & Media Richness

Privacy

Privacy Security

Transactions Transactionality

User interface

Comparing different communications systems

The Answers: 1. Logistics (Distribution)

Dating – friction in today’s market www.vodafone.co.uk is not the context in which to sell a temporary dating plan!

Let someone else sell the “call your dates” plan Need wholesale products to enable 3 rd parties to bundle voice, video and data into their service

Packaging and presenting teleco services Face out vs. edge on

Can you sell stuff here? The rise of indirect retail channels.

The Answers: 2. Logistics (B2B2C VAS)

Reverse voicemail Voicemail: The world can leave me a message Reverse voicemail: I can leave a message for the world

Communications-enabled business processes Get the right message to the right person at the right time on the right device and right medium… … and get a response! “ Freephone 2.0” – no need to dictate your name, address and credit card details. “ Voicemail 2.0” – directly deposited into your inbox, with a notification sent at the right time, and ‘live’ IVR options built in. “ SMS 2.0” – e.g. timed so you’re not roaming, in a call, or away from home.

Get the right message to the right person at the right time on the right device and right medium…

… and get a response!

“ Freephone 2.0” – no need to dictate your name, address and credit card details.

“ Voicemail 2.0” – directly deposited into your inbox, with a notification sent at the right time, and ‘live’ IVR options built in.

“ SMS 2.0” – e.g. timed so you’re not roaming, in a call, or away from home.

The Answers: 3. Retail

Telcos: still not product innovation businesses How well do we as an industry understand what additional needs users have for voice and messaging products, over and above what they have today?

Revenue opportunities OPEN APIs PRIVACY FEATURES REAL-TIME SERVICES CALLING FEATURES Strongly Agree Agree N=83 INTERNALLY-DRIVEN INNOVATION EXTERNALLY-DRIVEN INNOVATION

What’s next?

PSTN 2.0?

PSTN 2.0?

A Closing Thought

Henri Matisse There is nothing more difficult for a truly creative painter than to paint a rose, because before he can do so he has first to forget all the roses that were ever painted.

There is nothing more difficult for a truly creative painter than to paint a rose, because before he can do so he has first to forget all the roses that were ever painted.

The Two-sided Telecoms Market Opportunity THANK YOU More info at www.telco2.net/blog