Social Networks and Telecoms Convergence
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Social Networks and Telecoms Convergence

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Fixed-mobile convergence, communities and the challenges of subscriber base (and revenue) protection. The role of Web 2.0 business principles and techniques.

Fixed-mobile convergence, communities and the challenges of subscriber base (and revenue) protection. The role of Web 2.0 business principles and techniques.

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Social Networks and Telecoms Convergence Social Networks and Telecoms Convergence Presentation Transcript

  • Fixed-Mobile Convergence Summit 2007 SOCIAL NETWORKING AND CONVERGENT SERVICES Vladimir Dimitroff Sanderson & Neale
  • Social Networking - What is all the noise about?
    • Networking existed before the Pyramids; it is an inseparable attribute of society
    • The wider meaning of ‘social’: interconnections at family, community, economic, political and… ‘social’ levels
    • 21 st Century networks: the digitalisation of communities; Main implications:
    • - the disappearance of distance (global village)
    • - the shrinking of time (instant interactions)
    • - exponential growth
    • What all this means to business? To an inherently network business (telecoms)?
  • Social Networking - Fundamental principles
    • Based on shared needs : from fundamental needs (to stay in touch, be part of a ‘family’) to niche interests (hobby, profession, faith, political ties).
    • The value of a network is exponentially related to the number of ‘nodes’ in it. (How powerful is a team of one member? How useful was a single telephone?)
    • Some ‘nodes’ are more connected than others!
    • - quantity of connections, frequency of interactions and depth of relationships
    • - influence and influencers
    • Communities Dominate*: why you can never ‘manage’ or ‘run’ a digital social network.
    • * “Communities Dominate Brands” by T. Ahonen and A. Moore, 2006
  • Social Networking, mobile and convergent telecoms
    • ‘ Social networks’ before convergence: voice, SMS, IM/chatrooms, mobile gaming, mobile front-ends for SN portals
    • Mobile communities currently number 50M members worldwide, to grow to 174M by 2011(ABI Research)
    • Examples of community / SN applications and services:
    • www.playtxt.net/playtxt.do
    • www.streethive.com
    • www.dodgeball.com
    • The ‘other’ convergence: telecoms and (broadcast) media
    • MTV ‘Mobile Junk 2.0’: uploading mobile UGC to web sites  downloading to mobiles  voting  broadcast on MTV channels (MTV, VH1, Nickelodeon, Comedy Central)
    • “ Nobody is as clever as everybody”
    • Alan Moore, co-author of “Communities Dominate Brands”
  • Generation ‘ C ’ (for c ontent)
    • Social networks thrive around interactions and content
    • Content exists within the interactions, but also separately as object of exchange and consumption. This can be
    • - professionally created for mass consumption
    • - created within the community for sharing
    • From ‘the audience of one’ to the UGC explosion - and back (the ‘long tail’ effect)
    • The example of video content:
    • TV
    • video clips
    • ‘ see what I see’
  • What’s different with convergence?
    • Convergence is a journey :
    Fixed Mobile Bundles Converged billing Dual mode / UMA IMS / S I P Full IP integration
  • Challenges of convergence - and opportunities
    • Fundamental difference between the fixed and mobile phone:
    • - The home line is ‘family’ ( shared ) and just needs ‘to be there’ for everyone and work reliably
    • - The mobile phone is highly personal , people identify with their phones and have very specific preferences
    • 2/3 of mobile MOU takes place from within the home (O2 Germany)
    • The challenge of pricing/economy expectations
    • - BT Fusion started marketing ‘cheap’ mobile calls; their learning experience: value to people with poor mobile coverage, now fast surfing is in their message
    • - TIM Unica still shouts ‘Parli gratis…’
    • The opportunities of added value
    Image source: BT Fusion
  • Potential adopters and target communities
    • So, who would be our ideal converged subscribers?
    • Demographics: four generations exist side by side in today’s marketplace:
    • - Veterans born before 1946
    • - Boomers born from 1946 to 1964
    • - Gen Xers born from 1965-1980
    • - Gen Yers (Millennials) born after 1980
    • There are significant differences in how quickly and completely these groups embrace technology and how they learn and communicate. Gen Yers prefer to learn in teams or networks , using multimedia, and learning experientially (like video gaming). Gen Y decision-making is much more collaborative
    • Counter-intuitive trend: >50% of active MySpace members are older than 35
    • Behaviour/lifestyle segments (DiamondCluster research):
    • - "technophiles“ - mainly males in their late teens to early 30s; already on a mobile contract, above average usage of cable TV, VoIP, broadband and mobile phone services.
    • - "convenience seekers“ - adults in their late 20s to mid 40s in a household with children, and above-average buyers of mobile services.
  • Potential adopters and target communities
    • ‘ Social’ networking exists in the business community, too:
    • - 60% of workers now travel for business and the figure keeps rising (IDC)
    • - 30.3M mobile professionals worldwide, growing to 41.1M by end of 2007; only 21% equipped for mobile email (Gartner)
    • - CRM and SFA seen as leading applications to be deployed (IDC)
    • Music is not only a huge industry, but also one of the main shared subjects around which many (digital) social networks are formed
    • ‘ Hybrid’ communities and convergence model variations: the Skype / T-Mobile / Sony case
    • Mobile gaming is a vast
    • (and growing) industry:
    Source: Telephia / eMarketer Inc.
  • ‘ Show me the money!’
    • Generation ‘ C ’ (for c a$h)
    • One lucrative target community is that of digital traders:
    • users who joined online communities are
    • - spending 54% more money in total
    • - paying 24% higher prices
    • - earning 6 times as much per month
    • - winning 25% more auctions
    • Resulting in 56% increase in sales for e B a y
  • ‘ Show me the money!’
    • Monetizing social networks on converged services :
    • Direct operator revenues (subscription and/or traffic)
    • - Trend towards flat rate mobile data drives usage of services
    • - Similarly, ‘at home’ speed/cost will boost uptake
    • Advertising: variety of evolving models
    • - AdMob served 1Bn mobile ads in its 1 st year
    • - Search advertising on mobile expected to explode
    • Brand sponsorships (of relevant communities)
    • Community-specific revenue (merchandise, UGC)
    • Already worth $3.45Bn in 2006 (IHT). Data traffic will soon dominate over voice and data revenues will be the main source for operators by 2014 (ABI Research).
    • Notable deals by Vodafone with MySpace, YouTube, eBay and Google Maps.
  • Wrapping up - a checklist
    • Have you got a clear, long-term convergence roadmap ?
    • Do you know your target communities ?
    • Are you building strong content capabilities ?
    • - through acquisition and in-house production
    • - through strategic alliances and partnerships
    • - through the power of UGC
    • Think stakeholders : are you ready to accept the customers as your employees - and investors?
    • If you answer positively, you are on a firm path to long-term success!
    • Q&A ?
  • Thank you! Vladimir Dimitroff Director PRISM Consulting (UK) Ltd 22 Cheviot Drive Charvil Reading RG10 9QD United Kingdom Phone: +44 (0)7947034944 E-Mail: [email_address] www.prism-gb.com Austria • Czech Republic • Germany Hungary • Italy • Malta • Poland • Russia Spain • Switzerland • Turkey • UK