Transforming Services Delivery " Crossing the Chasm to Telco 2.0"

Carrier Market has Changed Core Services New Services Subscribers $ Traditional Competition Emerging Competition Voice Hosting Broadband SaaS Web 2.0 Business Impact : Commoditization Declining Profits Subscriber Churn Marketshare Loss What is the impact on business models?

Business Impact :

Commoditization

Declining Profits

Subscriber Churn

Marketshare Loss

Business Models are Changing How will carriers make money?

Revenue Sources are Changing What does it mean to be a 'carrier'?

Telco 1.0 vs. Web 2.0 Web 2.0 revenue model is inverse of Telco model Web 2.0 providers generate higher profits than Telcos Web 2.0 overall market growth much higher than Telcos Yet Telcos provide customer access... Revenue Share Telco Web 2.0 Services Platform Core Network Access Network Licenses Market Growth Low Rapid $ $ low low high percentage high percentage Who 'owns' the customer?

Web 2.0 revenue model is inverse of Telco model

Web 2.0 providers generate higher profits than Telcos

Web 2.0 overall market growth much higher than Telcos

Yet Telcos provide customer access...

Services

Platform

Core Network

Access Network

Licenses

Defining Customer Value Services Delivery Network Expertise Market Reach Quality of Service Services Creation Content Expertise Time to Market Continuous Innovation Web 2.0 Telco 2.0 Boundaries will blur, but what's your primary focus?

Services Delivery

Network Expertise

Market Reach

Quality of Service

Services Creation

Content Expertise

Time to Market

Continuous Innovation

Converged Services Provider Aggregating Core and External Services SMBs SOHO Verticals Enterprise Application Services IT/Managed Services Telephony Services Customer Value : One provider One bill One log-in One view One helpdesk Trusted Provider Converged Services How can carriers transform?

Customer Value :

One provider

One bill

One log-in

One view

One helpdesk

Telco 1.0 Approach won't Work Millions in CAPEX and OPEX Silo'd services delivery Technology stack built ground-up Many integration touch-points High maintenance Limited flexibility Oriented towards single services Resource-intensive Limited new deployments per year Long development cycles Time-to-market, and profit, for delivering new services Challenge to Revenue Avoiding the time-to-market trauma...

Millions in CAPEX and OPEX

Silo'd services delivery

Technology stack built ground-up

Many integration touch-points

High maintenance

Limited flexibility

Oriented towards single services

Resource-intensive

Limited new deployments per year

Long development cycles

Time-to-market, and profit, for delivering new services

Transcending Transformation (Making Change Work) "As for service creation, there's a need for new investment here, in things like Jamcracker." "You clearly can't have projects that spend 6-12 months working on OSS BSS integration any more." Crossing the chasm to converged services... Steve Zimba Managing Director Global Telecoms Business

Jamcracker Delivers On-Demand Wholesale best-of-breed value-added services Established processes for sourcing, integrating, testing, branding, bundling, and delivering on-demand services Master distribution agreements support multi-tiered services delivery Dozens of "off the shelf" solution partners with >100 service offerings Provide infrastructure, operations, support, and programs for branded on-demand services marketplaces Enabling distribution partners to rapidly source, bundle, and sell new value-added services Ability to rapidly on-board core carrier services and local ISVs, allowing value-added service bundling Unified provisioning, single sign-on, administration, billing, and support With minimal cost, effort, and risk Technology and services in development since 1999 Offering everything from A to Z for services delivery...

Wholesale best-of-breed value-added services

Established processes for sourcing, integrating, testing, branding, bundling, and delivering on-demand services

Master distribution agreements support multi-tiered services delivery

Dozens of "off the shelf" solution partners with >100 service offerings

Provide infrastructure, operations, support, and programs for branded on-demand services marketplaces

Enabling distribution partners to rapidly source, bundle, and sell new value-added services

Ability to rapidly on-board core carrier services and local ISVs, allowing value-added service bundling

Unified provisioning, single sign-on, administration, billing, and support

With minimal cost, effort, and risk

Technology and services in development since 1999

A to Z Includes ISV Vendor Management, On-Boarding & Settlement ISV Self Service – Integration Portal Hosting Portal(s) & Catalog(s) for Every Market Segment Order Management Identity Management and Single Sign-On Provisioning End User Services Administration Help Desk – Ticketing Support – Unified 1 & 2 Billing & Metering SLA Services Monitoring Product Management & Reporting Integration Orchestration Global Services Distribution Ecosystem Services Market Launching & Testing Sales & Marketing Support Multi-Tier Distribution Unified End User – Business, Consumer, Mobility Interface Let's put theory into practice...

ISV Vendor Management, On-Boarding & Settlement

ISV Self Service – Integration Portal

Hosting

Portal(s) & Catalog(s) for Every Market Segment

Order Management

Identity Management and Single Sign-On

Provisioning

End User Services Administration

Help Desk – Ticketing

Support – Unified 1 & 2

Billing & Metering

SLA Services Monitoring

Product Management & Reporting

Integration Orchestration

Global Services Distribution Ecosystem

Services Market Launching & Testing

Sales & Marketing Support

Multi-Tier Distribution

Unified End User – Business, Consumer, Mobility Interface

Carrier Business Case Study Business Objectives Further monetize broadband investment through service differentiation Expand markets without expanding networks Expand business model for future earnings growth Market Approach Offer broad array of on-demand services to grow net new customer acquisition Differentiate "cash cow" broadband offerings via bundled services to reverse margin erosion / churn Get to market quickly and cost-effectively with a flexible foundation for future growth Quickly, efficiently, profitably...

Business Objectives

Further monetize broadband investment through service differentiation

Expand markets without expanding networks

Expand business model for future earnings growth

Market Approach

Offer broad array of on-demand services to grow net new customer acquisition

Differentiate "cash cow" broadband offerings via bundled services to reverse margin erosion / churn

Get to market quickly and cost-effectively with a flexible foundation for future growth

Carrier-Branded SaaS Marketplace Help Desk Support User Management Billing & Settlement Services Provisioning Security Services Integration Jamcracker Services Delivery Network Jamcracker Solution Partners Carrier Partners Core Services Broadband Hosting Mobile Networking Voice Customers Local ISVs Channels Carrier - Jamcracker Partnership

Federated Services Delivery Universal Services, Localized Delivery Help Desk Support User Management Billing & Settlement Services Provisioning Security Services Integration Jamcracker Services Delivery Network Marketplace Partners Solution Partners Others...

Carrier's Perspectives on Jamcracker Market-leader in pure-play SaaS delivery Met all functional requirements Demonstrable, 'out-of-the-box' solution Lower implementation cost / improved speed to market Leverage ongoing development for global JSDN Telco partners Provides a catalogue of pre-enabled applications – with existing connectors and commercials APIs and roadmap for integrating with other systems Established program for on-boarding new ISVs Open source / non-aligned Objectives aligned through revenue share agreement Sales and marketing support Flexible commercial model enabling selective insource/outsource functions Delivering Web 2.0 services via Telco 2.0...

Market-leader in pure-play SaaS delivery

Met all functional requirements

Demonstrable, 'out-of-the-box' solution

Lower implementation cost / improved speed to market

Leverage ongoing development for global JSDN Telco partners

Provides a catalogue of pre-enabled applications – with existing connectors and commercials

APIs and roadmap for integrating with other systems

Established program for on-boarding new ISVs

Open source / non-aligned

Objectives aligned through revenue share agreement

Sales and marketing support

Flexible commercial model enabling selective insource/outsource functions

Transformation is Good Business Service Bundles Subscribers $ Business Gains : Differentiation Increase Profits Subscriber ARPU Marketshare Gain Expanded Offerings Voice Hosting Broadband SaaS Web 2.0 Core Services New Services

Business Gains :

Differentiation

Increase Profits

Subscriber ARPU

Marketshare Gain

Change Benefits Everyone Customers - One-stop-shop of many best-of-breed services - Single point of purchasing, billing, and support - Unified provisioning and user experience Carriers - Increase stickiness, reduce churn - Grow net-new ARPU - Increase sales/channel productivity - Bundling differentiates core services ISVs - Expand distribution - Bundle offerings with new services

The Future is Now! "Voice, video, and data, digitally delivered across interconnecting networks to a variety of different terminals with different uses. As always, the technology takes shape long before its full consequences for society take place." "The internet, in particular, is remarkable for its many different capabilities. It is more than just a means of communicating: it is a marketplace, a library, a distribution chain ." Frances Cairncross, "The Death of Distance"