Helping mobile operators address revenue cannibalisation from OTT communication services

Myriad GroupHelping operators address revenuecannibalisation from OTT communication servicesMark Watts-Jones @MWJDirector of Social Mobile +44 7073 963539June 2012

Myriad Group has over 100 operator and 25 OEMrelationships globallyDeveloped MarketsEmerging Markets2 @MWJ #fwic

Fact: Consumers communications needs areevolving leading to increased use of OTT services Consumers have greater choice for their communication services Smartphones increasing impacting operatorFROM: revenues Basic devices Voice and text only Operator services Data increasing3 @MWJ #fwic

Forecast: As OTT services gain a foothold operators core voice/text revenues are at risk OTT messaging starts to substitute SMS Lower SMS use = lower SMS1 Lower SMS revenue revenue Lower demand for SMS = Lower plan/tariff revenue as customers2 Lower plan/tariff revenue move to lower value plans Operators become „pipes‟ as OTT services become primary3 Lose customer relationship means of communications Future voice, messaging and Operators cannot monetise their VAS revenues at risk position as trusted, mass market consumer brands Ref: Ovum, 2012, Counteracting the social4 @MWJ #fwic messaging threat

Problem: As Bob Dylan said the times are achangin’ FROM TO Operator-centric Service centric Own the network Control the device “They‟re using our Own the Provide the network to do spectrum services whaaattttt?!!!” Own the Determine the brands price Universal, Compete with interconnected each other5 @MWJ #fwic

…but OTT services aren’t playing the same game as mobile operatorsUSER PERCEPTION: OPERATOR PERCEPTION: Cool, exciting Fast, dynamic Creative, new Challenging „Free‟ Close to end users Very viral Don‟t care about operators The users friend Performance or security issues tolerated Happy to pivot 6 @MWJ #fwic

Ok we hear you… …but what do we do?7 @MWJ #fwic

Well to start with operators have assets that OTT services can only dream of Millions of paying customers Cash Mass market consumer brands Customer relationships Ability to bundle Large (often IP) networks Cost advantage Skills, experience Distribution, support networks8 @MWJ #fwic

And plenty of possible strategies. For exampleoperators could do one or all of… PricingOperator assets Create extra consumer Focus on the network value Differentiate through Lower costs brand, marketing, distribution or support CustomersServices Do what customers want! Partner with OTT Get them before your services competitors do Create copycats Technology Target niches Innovate new services Open up, work in new ecosystems Use all of that big data Differentiate by QoS Support industry initiatives e.g. RCS9 @MWJ #fwic

Erm, ok, but you’ve still not told us what to do. Well…that depends on…10 @MWJ #fwic

…what the most important people in all of this want– the end users 11 @MWJ #fwic

Understand the needs of your customers. They’reall different and all special! They‟re in different life stages, with different experience, skills, expectations and willingness to do things 12 @MWJ #fwic

To illustrate this point …who here today…?13 @MWJ #fwic

Owns a Nokia?14 @MWJ #fwic

Has heard of Textfromdog.tumblr.com?15 @MWJ #fwic

Watched the OMG Cat?16 @MWJ #fwic www.youtube.com/watch?v=C_S5cXbXe-4

Wears a suit?17 @MWJ #fwic

Any idea what icanhascheezburger.com is?18 @MWJ #fwic

Actually used Instagram.com? No, really.19 @MWJ #fwic

Or Pinterest.com?20 @MWJ #fwic

The answer is the ‘Do something’ scenario • Know your customer – who they are and what they need - and relentlessly target them • Do something, anything • Identify niches and grow with them • Be confident! Try, fail, try again • Increase value to offset the perceived benefit of OTT services • Engage customers early before they become OTT users21 @MWJ #fwic

Which could be summarised as… Be quick Be creative Be committed Be great for the end user22 @MWJ #fwic

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Helping mobile operators address revenue cannibalisation from OTT communication services

by Mark Watts-Jones on Jun 28, 2012

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Helping mobile operators address revenue cannibalisation from OTT communication services Presentation Transcript