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Convergence business models and services dr. klaus m. steinmaurer

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Convergence business models and services dr. klaus m. steinmaurer

  1. 1. The Future is Mobile Co nverg ence a nd Teleco m O p era to r B us ines s D r. K la us M . S teinm a urer (M B A ) IFCL A Co nference 20 10 Co nv erg ence here a nd no w 10 th a n d 11th June 20 10
  2. 2. T he Future is M o b ile Ta b le o f Co ntent Co nv erg ence a nd Teleco m O p era to r B us in Introduction Convergence - a question of definition Convergence - who needs it and why Convergence - from the customers point of view Convergence - from the operators point of view Convergence - a question of IT Convergence - a bunch of legal problems to discuss Convergence - a few words at the end 2
  3. 3. T he Future is M o b ile Intro d uctio n Co nv erg ence a nd Teleco m O p era to r B us in The future is mobile …… So let me start with a short story … …… to explain what this headline has to do with the topic of this conference … 3
  4. 4. T he Future is M o b ile Co nv erg ence - a q ues tio n o f d ef nitionv erg ence a nd Teleco m O p era to r B us in i Co n Fixed Mobile Convergence (FMC)  Seamless switching between cellular and local networks for mobile users. The operator should be able to offer a customer mobile and fixed (or fixed like) services seamlessly by integrating fixed an mobile networks. Challenge  The handset has to support TDM technology for the cellular system and switch instantly to packet based VOIP for the Wi-Fi network. Levels of Convergence  no convergence at network level (MNO offering „fixed like rates“)  convergence at network level (f. e. integrated operators) 4
  5. 5. T he Future is M o b ile Co nv erg ence - a q ues tio n o f d ef nitionv erg ence a nd Teleco m O p era to r B us in i Co n Mobile to Mobile Convergence (MMC)  MMC is a technology that facitiates the interoperability of mobile communication devices without the need for any fixed capabilities or proprietary service provider.  MMC is an alternative to conventional cellular and wireless solutions. MMC offers features such as  interoperability with a wide area network (WAN)  support of dual mode devices  seamless roaming among Wi-Fi and cellular networks … a t the end no t m uch d ifference to the FM C d ef nitio n - o r? i 5
  6. 6. T he Future is M o b ile Co nv erg ence - a q ues tio n o f d ef nitionv erg ence a nd Teleco m O p era to r B us in i Co n … but what would you say about this definition: B us ines s a nd P riva te L ife Co nverg ence (B P C)  BPC means getting every information/content/service I want, everywhere, at any time I want if from every source it is stored by using any kind of access technology as available. This kind of convergence focuses on the convergence of services and mainly takes into account the customers needs. The convergence of networks is secondary. … .. rem em b er the s to ry fro m the b eg inn 6
  7. 7. T he Future is M o b ile Co nv erg ence - w ho need s it a nd w hy?erg ence a nd Teleco m O p era to r B us in Co nv Carriers need it, because  their old (voice based) business models will not work much longer  European Telecom Markets stagnate customer wise and shrink revenue wise while network usage explodes and huge investments to offer acceptable QoS are necessary.  Broadband investments (mobile and fixed) must generate additional revenues  Convergence is necessary for customer retention in a saturated market Customers need it, because  Life (business and private) becomes more and more mobile.  The days where we had a clear differentation between business and private life are gone.  It makes it easier to organize our life. 7
  8. 8. T he Future is M o b ile Co nv erg ence - fro m the cus to m ers p o int ond Teleco m O p era to r B us in Co nv erg ence a f v iew EA S Y S P EED M O B IL IT Y S E R V ICE 8
  9. 9. T he Future is M o b ile Co nv erg ence - fro m the cus to m ers p o int ond Teleco m O p era to r B us in Co nv erg ence a f v iew Convergence from the Consumer Perspective Fixed Mobile Convergence from the Consumer Perspective content access mobile fix media one bill one discount one point of contact services customer 9
  10. 10. T he Future is M o b ile Co nv erg ence fro m the cus to m ers p o int encef ndvTeleco m O p era to r B us in Co nv erg o a iew O FFICE N T E R TA IN M E N T O W N CO N T E N T IN T E R N E T B OOK S M U S IC N E W S (P R IN T ) V O ICE N E W S (T V ) V ID E O O ne s erv ice fo r a ll s creens - Co nv erg ence cha ng es the va lue cha in 10
  11. 11. T he Future is M o b ile Co nv erg ence fro m the cus to m ers p o int encef ndvTeleco m O p era to r B us in Co nv erg o a iew What customers expect from convergence?  lower costs  higher mobility  personalized services  easy handling  better service Why many convergent services carriers offered till now failed?  they did not focus on the customers needs but focused on technology This might have a huge impact on the future business of carriers who loose their position in the value chain to Apple & Co. 11
  12. 12. T he Future is M o b ile Co nv erg ence - fro m the o p era to rs pCo nv erg ence a nd Teleco m O p era to r B us in o int o f v iew Fixed Mobile Convergence from the Operators Perspective Integration Convergent Network Convergent Devices Convergent Services Bundling Cross Selling Time actual status 2010 This figure shows the most common approach of convergence in todays operator business. It is mainly focused on the convergence of fixed and cellular access technologies. In Europe this kind of convergence is the new strategy of the former incumbents who own both kinds of infrastructure. Mergeing the former devided business units is the actual tendency. 12
  13. 13. T he Future is M o b ile Co nv erg ence - fro m the o p era to rs pCo nv erg ence a nd Teleco m O p era to r B us in o int o f v iew The real challenges for carriers in the future do not depend on the access technology. The real challenges are:  potential corporate agenda clashes  spectrum usage and business models (investment needs)  corporations/alliances with media firms  different expectations and business models  competition and market power  off deck and on deck models  navigation  customer acquisition and retention  regulatory impacts 13
  14. 14. T he Future is M o b ile Co nv erg ence - fro m the o p era to rs pCo nv erg ence a nd Teleco m O p era to r B us in o int o f v iew Those operators who have access to mobile and fixed technology have an advantage in the future game for additional revenues but those operators who are able to manage the prediscussed questions first in favour of their customers will lead the game independent of the access technology they use to offer convergent services. 14
  15. 15. T he Future is M o b ile Co nv erg ence - a q ues tio n if IT a nd o utsenceurcing O p era to r B us in Co nv erg o a nd Teleco m To make convergence reality in the market, operators have to handle huge IT-challenges  content management  service management  access management  billing Up to now most operators have an IT landscape which is able to operate more or less their old businessmodel but convergence demands a significant change (and investments). Therefore operators have to  rethink existing business models  reorganize their existing business processes  develop integrated services and drive standardisation to secure interoperability 15
  16. 16. T he Future is M o b ile Co nv erg ence - a q ues tio n if IT Co nv erg ence a nd Teleco m O p era to r B us in O utco urcing O p p o rtunity E x terna l Content Services Content S o urce 3rd parties customer owned S ta nd a rd is a tio n Is s ue s etw o rk lev el Integ ra ted IT s erv ices o n IT S erv ices I N F R A S T R U C T U R E O ne S erv ice fo r a ll s creens 16
  17. 17. T he Future is M o b ile Co nv erg ence - a b unch o f leg a l p ro b lem s ato m O p era to r B us in Co nv erg ence nd Teleco d is cus s To bring convergence to life and operate a sustainable business model a bunch f legal questions have to be solved before  Different Termination Rates for fixed on mobile services  Spectrum usage & Financial Services  Licensing  Third Party Contract Management  Intellectual Property Rights  Quality of Service …………….. 17
  18. 18. T he Future is M o b ile Co nv erg ence - a few w o rd s o f the end ence a nd Teleco m O p era to r B us in Co nv erg  Convergence now is still at the beginning  Closing the gap between technology focus and customer centricity will be essential for a break through  The solution for a sustainable business model will be found in the future IT services and not in the access technology  Listening to the customer is key to develop the right IT-tools  To make the world convergent and to find the right place in the future value chains operators have to define their investment strategies for the near future …….. and do not forget, every business model in a convergent world will be customer driven. 18
  19. 19. T he Future is M o b ile Co nv erg ence a nd Teleco m O p era to r B us in T ha nk yo u fo r yo ur a ttentio n 19

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