Monetizing LTE and Improving customer satisfaction through API exposure and Advanced Analytics

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Monetizing LTE and Improving customer satisfaction through API exposure and Advanced Analytics

  1. 1. 1 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  2. 2. Monetizing LTE and Improving customer satisfaction through API exposure and Advanced Analytics Steve Northridge email: steve.northridge@oracle.com twitter: @stevenorthridge 2 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  3. 3. 3 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  4. 4. Cross Industry Collaboration and Innovation … more than 50 carriers have now implemented integrated carrier billing on the BlackBerry App World™ storefront for their customers. - “BlackBerry App World Integrated Carrier Billing Now Implemented with More Than 50 Carriers”, Blackberry website, November 26, 2012 the Wall Street Journal reported that ESPN has talked to at least one major carrier about paying to enable customers to access ESPN Mobile without exceeding their data limits - “Analyst Angle: OTT as a revenue source for carriers”, Jeffery Wang, IBB Consulting, RCR Wireless, May 15, 2013 4 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Europe’s telecoms and media companies must embrace innovation in key areas such as mobile, cloud computing and big data, as well as forge strong strategic relationships with other industry players… IDATE’s Didier Pouillot said: “Telcos do have certain leverage to deal with this change, starting with creating more value from network access now that OTT services are increasing user consumption. “NGN technologies allow telcos to increase speeds and to introduce noticeable quality improvements, both of which can differentiate their offerings. But it is clear 2013 is a pivotal year and telcos must embrace innovation. A simple Darwinian case of evolve or die!” “2013 a ‘Darwinian tipping point’ for Europe’s telcos, Jamie Beach, May 31, 2013, Telecoms.com”
  5. 5. Service Exposure through APIs Enabling Innovation and Collaboration “Telephony” 279 “Messaging” 272 Other CSP enable API’s in other categories 5 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  6. 6. Telecom Network API’s Becoming the CSP’s second revenue stream  APIs allow carriers to disseminate a wealth of internal information and resources to third parties  Today:  24% of Web and 15% of mobile apps use APIs  By 2018:  Apps using APIs are expected to exceed 68% Source: MindCommerce: Public advertisement for “Telecom Network API Marketplace: Strategy, Ecosystem, Players and Forecasts 2013-2018”, June 2013 6 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  7. 7. Network API Revenue Opportunity $115B opportunity by 2015 $1.5 $2.6 $2.0 $1.0 $1.0 Click to call, meet me at my number, alerting, etc $5.9 Payment across goods & services $3.0 USSD in developing markets $4.0 Advertising with user profile under customer control $42.0 $4.5 Presence & location enabled call centers Number provisioning Messaging enabled customer service & business processes $7.5 Directory services IVR / voice store / other voice related VAS Machine to machine $14.0 Unified communications & collaboration Content delivery $26.0 Source: Alan Quayle Business and Service Development, April 2012 7 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Other
  8. 8. Operator Payment Revenue Opportunity Opportunity by 2015 is $26B Click to call, meet me at my number, alerting, etc $3.0 $4.0 $14.0 Payment across goods & services $42.0 $4.5 USSD in developing markets Advertising with user profile under customer control $7.5 Presence & location enabled call centers Number provisioning $14.0 $26.0 Messaging enabled customer service & business processes Other (Directory services, IVR, M2M, etc) Source Alan Quayle Business and Service Development estimate for 2015 based on the top 15 APIs operators could implement. 8 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  9. 9. Direct Carrier Billing  An opportunity for CSPs to improve the bottom line  Opportunity to improve the customer experience  Gain significant traction in markets – Developing Markets: where mobile penetration > credit cards – Developed Markets: with younger/teenage subscribers This is a market where the key pieces of the jigsaw are starting to come together. Firstly, where mobile billing has been supported as an additional payment option, we have recently seen examples of merchant revenue increasing by over 200 per cent,” said Danny Barclay, Head of Interactive at O2 Media. – October 2012 “ 9 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  10. 10. Business Case for typical storefront Google Play, Windows Phone Store, Facebook etc Cost for storefront (without operator billing): Revenue for Carrier with 10M subscribers  ~$1.50 average purchase value “Windows Phone developers earn three times more revenue per active user on average in markets • Developers pay a 30% transaction fee for apps  30% on average in emerging markets where where carrier billing is offered (and six times more revenueof subscribers make purchases or in-app purchase – Average purchase rate (3 per month) credit card usage is more limited), according to Microsoft. The feature is available in 26 markets so • but of course purchase value far,~$1.50 averagethe company wants to expand thatnumber as quickly revenue to carrier monthly $13.5M additional as possible.” - $0.45 is for storefront Source: “Microsoft passes 9 million Windows Phone transactions daily, promises carrier payouts to • Storefront is 30 days” By credit card fee Carriers avoid recurring developers aftercharged $0.23Emil Protalinski, Friday, 13 Sep 2013. thenextweb.com credit card fees – Fee: ~2% + $0.20 – Deductions from subscribers’ pre-paid balance – Over 50% of storefront share going towards the payment transaction – Charges applied at month end in post-paid billing cycle – Storefront is left with only $0.22 per purchase • Over 50% of storefronts transaction profit is lost in credit card payment fee 10 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.  Carrier can negotiate a favorable fee for OTT – E.g. 5 to 15% per transaction rather than the current $0.23+ credit card fee  Addl profit to carrier of ~$0.7 - $2.0 M monthly
  11. 11. Charging Gateway for Carrier Billing Distribute Developer Storefront Subscriber Charging Gateway Access Control & Policy Management Google Play Charging Service Charging Settle 11 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Online Charging System Purchase
  12. 12. Impact of Online Video Unpredictable User Experience  182.5 million people in the US watched 39.3 billion online content videos in March 2013. (Comscore, 2013)  Over 60% Growth in Worldwide Over-the-top Video Revenue in 2012 driving the over-the-top (OTT) video market past $8 billion in 2012. – The three largest markets—North America, Europe, and Asia-Pacific—experienced YoY growth in excess of 50% in 2012. Data Quota – The continued spread of connected consumer equipment and increasingly mobile devices, like How Can the CSP Participate? tablets, are expected to push the market past $20 billion by 2015  Tablet computers are becoming the “second screen” Source: “Over 60% Growth in Worldwide Over-the-top Video Revenue in 2012, Says ABI Research”, April 10, 2013, FierceWireless.com 12 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  13. 13. Network Policy as a Service – Win3  Win - CSP receives revenue for use of network assets  Win - End user receives a predictable user experience  Win –Video provider gains higher customer retention rates due to the positive user experience CSP Network Buffering… 13 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Buffering… Buffering…
  14. 14. Mobile Policy Gateway Network Policy as a Service • Bandwidth on demand for QoS sensitive services including: • Entertainment • Surveillance Users Service Platform Service Request Request Bandwidth API Mobile Policy Gateway Access Control & Management • Telemedicine QoS Service • Video Conferencing QoS Policy Policy Content 14 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Managed Bandwidth
  15. 15. Bundled Quality of Service Delivering the Experience No data charge to customer Request High Bandwidth Watch Now for $4.99 plus Data Charges Watch Now in High Quality for $5.99 plus Data Charges Watch Now in High Quality for $3.99 plus Advertisement Including Data Charges 15 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Mobile Policy Gateway QoS
  16. 16. Video Entertainment – Bundled QoS Business Value Subscribers 6.5M % Who purchase a movie 20%  CSP has 6.5M subscribers Movies purchased per month 1  20% purchase a movie in the month CSP revenue for QoS $0.80  On average those that purchase a movie Monthly Revenue $1.04M Annual Revenue $12.48M  Assumptions: do it 1 time per month  The CSP receives on average $0.80 for the QoS provided for the movie – paid by the OTT provider either directly or subsidized via advertizing  Note: This does not include revenue that may be obtained from providing carrier billing and from the OTT provider for transitioning the data charges from the subscriber to the OTT Note: Business value is an estimate 16 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  17. 17. Video Surveillance Protecting lives and property  Driven by Homeland security concerns and applications across commercial, institutional, infrastructure, industrial, and residential domains  Technology paradigm shift from analog to IP $25.43 B making solutions more readily available and lower in cost  Mobile video surveillance is more cost effective for covering multiple locations and enables video surveillance while in motion (e.g. trains, buses, taxis, ships, shipping containers)  Software used to analyze images and combined with additional M2M sensor data Source: “New Report Video Surveillance Market (2011-2016) by MarketsandMarkets”, PRWeb, June 17, 2012 Source: “Electronic Eyes: How M2M Surveillance Saved a Historic Landmark”, Markus Breitbach, wired.com, August 6, 2013 Source: “Video Surveillance Market – Global Forecast (2011-2016)”, Report Description on marketsand markets.com, January 2012 17 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  18. 18. M2M Video Surveillance Threat Assessment and Validation Security Co. Monitoring HD Video Streaming Mobile Policy Gateway QoS 18 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Threat Analysis
  19. 19. M2M Surveillance Business Value Subscribers 6.5M % of subscribers with security 30%  CSP has 6.5M subscribers % of security subscribers with video 20%  30% of those have security systems Monthly premium for video (revenue to CSP) $8 Monthly Revenue $3.12M Annual Revenue $37.44M Note: Business value is an estimate 19 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.  Assumptions:  20% of the security subscribers have video in addition  CSP receives $8 for each subscriber with video security to provide QoS
  20. 20. Information as a Service Aggregate and Analyze Information - Trends - Predictions Analytics and Information Create offers, campaigns, shape network and customer behavior 20 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Put it in the right hands - Internal Developers - Partners Optimize the Experience Expose Knowledge
  21. 21. Analytics Provides the Intelligence Analytics Data Analysis Charging Usage Segmentation Campaign Management Online Charging Campaigns Offline Charging SPR Policy Management 21 Business Systems Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Network Systems
  22. 22. Information Exposure Internal MVNO Network and Subscriber Information Exposure Access Control Analytics 22 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Subscriber Data
  23. 23. Knowledge Driven Campaigns 100 Data Network Utilization Area 1 Area 2 50 Area 3 Area 4 Area 5 0 5PM Analysis Action Result 23 6PM 7PM 8PM Area 1 and 5 continue the trend of being underutilized Offer customers in area 1 and 5 that have an older home an opportunity to watch an HD home improvement video from a home improvement store – delivered at no charge Customer gains knowledge of home improvement and the home improvement store’s products and the home improvement store is provided with cost effective delivery of content Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  24. 24. Knowledge Driven Campaigns  Target Micro Segments with Plan Offers or Promotions Analysis Action Result Identify department store customers that have traveled into the vicinity of a store and are department store club card holders Send personalized offer directly to the customer that is time sensitive to encourage the customer to enter the store Customer receives a relevant contextual offer Department store increases revenue from the sale and brand affinity with the customer CSP provides differentiated experience for department store customers 24 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  25. 25. Oracle Communications Services Gatekeeper Open, standards based network API exposure platform Telco Developers 3rd Party Developers Partners & Enterprises API Interfaces Oracle Communications Services Gatekeeper Access Control & Policy Management Communication Services  Multiple service facades including support for REST, SOAP, SOA and native interfaces  Comprehensive policy, SLA and subscriber & network resource management  Extensive pre-built communication services with network plug-ins  Multi-channel authorization and privacy management leveraging OAuth Network Plug-ins IT 25 Network Copyright © 2013, Oracle and/or its affiliates. All rights reserved.  Easily customizable and extendable
  26. 26. Oracle Communications Services Gatekeeper Enabling the Programmable Network • Delivering: QoS Control • QoS Control • Messaging • Trusted Identity Management • Carrier Billing Trusted Identity Management Oracle Communications Services Gatekeeper • and other telco and IT network services Messaging Service 26 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Carrier Billing
  27. 27. Monetize LTE Through Service Exposure Optimize Innovate Thrive 27 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Maximize network utilization and revenue for data services Enable partners and internal developers to create differentiated services and increase customer satisfaction Establish new revenue streams through multisided business models
  28. 28. The preceding is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. 28 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  29. 29. Thank You Steve Northridge email: steve.northridge@oracle.com twitter: @stevenorthridge 29 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  30. 30. 30 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  31. 31. 31 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.

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