The document discusses new business models that mobile operators can adopt to monetize changing communication behaviors and the growth of data usage: 1) Operators must evolve their traditional business models of charging per call/text as people spend more time on data activities like social media on smartphones. 2) New models like providing richer service bundles that improve the customer experience, exploring two-sided models where other parties help pay for communication, and leveraging all capabilities to address new segments can help operators monetize changes. 3) The document invites operators to workshops to collaboratively explore these new business models through open-ended discussion and sharing of insights from other markets.

1. Embracing the new era in
communication services
REACH
beyond

2. exploring new
business models
REACH
beyond
program
The rapid expansion of smartphone
use is transforming the way we
communicate, socialize and do
business. Not that long ago,
mobile phones were primarily
used for making calls on the
move. But with smartphones, we
now spend a lot more time doing
other activities, such as emailing,
surfing the web, sharing pictures,
watching films and playing games.
How do we manage? We multitask.
Whether traveling, in a restaurant,
in bed, watching television or
even when attending a concert
or a sporting event, we share and
communicate. Our need to share
and communicate seemingly knows
no bounds, and smartphones
give us the means to do so.
The mobile industry has so far
been very successful in monetizing
this need for communication – in
the past, every phone call or text
message meant profit for the
operator. But as we move into a
data-centric world, this traditional
business model is not sustainable.
Charging per call or per text
may be simple, but it’s not
optimized to monetize the
opportunities provided in the new
communications landscape.
As a mobile operator you have a
great advantage. Delivering excellent
communication services is at the
core of your expertise. The telephony
community is the largest and
most widespread communication
community in the world.
You already have the customers, and
they have a strong need and desire to
communicate in their daily lives – with
businesses, services and each other.
The challenge is to evolve current
business models to better monetize
this growth in communications.
As the world’s leading supplier to the
mobile industry, we want to share our
insights from markets all around the
world. Together, we want to explore
the opportunities of new business
models in this data-centric world. It
is only by truly understanding your
business that we can excel as a
supplier. That is why we have created
this program – so we can ‘reach
beyond’ today’s business models and
explore future possibilities together.
This is your invitation to take part.
We live in a Networked
Society. In the future,
everything that can benefit
from being connected will be.

3. ReachBeyond
Sharing an unforgettable
experience – how can
we monetize on this?

4. Stand out
by exceeding
customer
expectations
> Embrace new
communication demands
> Price is not a differentiator
> Focus on bundles and
service quality
> Continuously improve the
customer experience
BEYOND
USUAL
Provide richer service
bundles with increased
user experience and quality
How can multitasking
be monetized – at
home and at work?

5. BeyondUsual
Thinking
beyond the USUAL
In a crowded market, the key to creating and keeping loyal
customers is to continuously improve their experience.
It’s about taking the ordinary and making it special.
In a world where all operators
offer similar talk and text
bundles at a similar price, you
need to stand out by providing
more attractive bundles and
superior service quality. The
plain vanilla voice, text and data
bundle needs to be spiced to
catch each customer segment’s
attention. Instant messaging,
music, social media, video,
terminals, fixed services,
enterprise solutions and much
more, can be used to create
bundles beyond the usual.
When bundles and price
levels are similar, customers
will focus on quality. No call
drops, full coverage, video
calling, HD voice quality, ease
of use, customer services and
more are all weighed in to the
perceived service quality.
Subscribers choose how they
want to communicate, and it’s
up to you to provide them with
a superior service experience.
The Beyond Usual business
model represents a commitment
to continuously improving
the customer experience. It
is not a one-off event, but a
constantly evolving process.
Successful enhancements are
quickly copied and absorbed
by competitors, and they
rapidly become the new level
of expectation. Customer
expectations also vary, and
often each customer segment
requires its own individual
improvements to exceed
its unique expectations.
> What can make your bundled offer more
attractive than your competitors?
> Can communication take place while sleeping,
eating or showering?
> What does great service quality mean for your
most valued customers?
> Can a smartphone create friendships and
improve business?

6. Explore a two-sided
business model to reach
beyond current subscribers
and business areas
Visual communication.
What innovative
businesses can
you support?
Exploring a
two-sided
business model
> Let someone else pay –
advertisers, governments
and enterprises
> Facilitate employers and
families in covering
communication costs
> Allow communication to be
embedded into and enhance
services, for example, education,
healthcare and entertainment
BEYOND
LIMITS

7. BeyondLimits> Which IP addresses could or should be toll-free?
> Will it be possible to visit a doctor in India, or take a
class with a Nobel prize winner?
> Could a smartphone automatically send tourist
information when the user is traveling?
Thinking
beyond limits
Beyond Limits is about transferring the cost of
communication from your customers to those who
want to reach them, and building it into how we do
business together.
Enterprises will pay to access
customers. Toll-free numbers
and postage-paid envelopes
have been around for years,
as have commercial television
and free newspapers. More
recent trends in communication
include homepages, social
media and blogs. Most
industries have a history of
paying to communicate with
potential customers.
By paying for it, they can
decide the parameters. If the
sender wants HD quality, why
should your subscriber pay for
even a single byte of advertising
traffic or HD voice call?
But if the sender is footing
the bill, they can tailor their
medium and message to suit
their ends. Take for instance
an app offering hotel rooms
or restaurants to tourists.
The sender decides if they want
to provide the information via
text, pictures or videos and pays
accordingly.They can even send
to customers who don’t have a
data subscription.
Businesses can target
customers directly, and those
customers can use their phones
to research the products and
services they need, and even
find out where to buy them.
If they need help they can
use their device to contact
customer support – and of
course they can use it to
communicate how happy they
are with their purchase to family
and friends.
Communication is an essential
part of every business.
Working together, we can
help businesses target your
customers in a meaningful way.

8. Leverage all your capabilities
to address new segments,
markets and industries
Monetize all
your capabilities
> Your customer base and
billing relationship has a
large commercial value
> Your ability to make anything
connect and talk is unique
> Widespread use of mobile
screens could spell major
profits for operators
BEYOND
PEOPLE

9. Thinking
beyond PEOPLE
In many industries, the main service is not the main
source of revenue. That is, petrol stations do not make
most of their profits from motor fuel, and cinemas profit
from both tickets and sales of popcorn and candy.
While mobile operators still
charge for core services
like talk, text and data, they
increasingly find new revenue
streams by leveraging assets
such as their subscriber
base, the mobile screen
and the billing relationship
with the customer. Mobile
payments is one example of
how operators use the billing
relationship to offer services
outside of the core offering.
It’s also worth considering
that many smartphone users
spend more time looking at
the screens of their phones
than they do watching
traditional TV – and not only
that, their smartphone is an
interactive communications
device. The ability to receive
messages and act on them
immediately opens up new
possibilities for everything from
advertising to e-commerce.
For years, operators
have excelled in building
relationships and bringing
people together through their
networks. The database of
loyal customers and deep
knowledge and insight into their
behavior and preferences is one
of the most valuable assets.
Machine-to-Machine (M2M),
big data and the cloud will also
present great opportunities in
the coming years. As users,
we increasingly communicate
with machines and in turn
they communicate with
us – when buying over the
internet, receiving a parcel
and making a payment.
As more and more devices are
connected and smartphones
become the dominant tool for
most people to access the
internet, mobile operators’
opportunities grow to provide
secure and reliable services.
How can M2M
make people
safer and more
comfortable?
> What would people like to control using their mobile
phones as a remote?
> How can you profit from the increased time people
spend viewing content on their mobile screen?
> In the future, what things do you see people
communicating with?
BeyondPeople

10. BE A PART OF
REACH
The objective is simple. We want
to explore these new business
models with you and see how
they could be applied to monetize
the growth in communication that
the Networked Society brings.
In the process we will share our
insights from markets all around
the world. At the same time we
hope to get a feel for your vision of
the future and where you expect
your revenue streams to be in the
short to medium term – and of
course to help you create them.
beyond
Over 100 co-creation workshops based on exploring
new business models have been conducted to date.
We have a well-proven methodology which allows
us to collaborate with your team and share and
discuss insights from operators all around the world.
Agenda
Introduction
to the
business models
Co-creation of
customer offer
Insights from
other markets
Customer offer
improvement
Revenue
potential of
selected offer
Next steps
discussion

11. What is
our target
customer segment?
How do we
make the offer
more attractive?
What does
this segment
need/desire?
What pricing
model is
most suitable?
What is our value
proposition
to them?
What limitations
are acceptable?
Which channels can we use? How do we reach them?
To spur creativity and openness during the Reach Beyond
workshop a number of open-ended questions are used, along
with films and success stories from other industries. At the end
of the workshop, participants will have a number of documented
business ideas based on these new business models. Naturally,
we are happy to continue supporting you in pursuing these ideas.
TakePart

12. Ericsson
SE-126 25 Stockholm, Sweden
Telephone +46 10 719 00 00
www.ericsson.com
EAB-13:074679 Uen
© Ericsson AB 2014
METHODS OF CONTACT
Engagement Practice – Communication Services
Business Unit Networks – Marketing and Communications
www.ericsson.com/reachbeyond
Ericsson is a world-leading provider of communications
technology and services to mobile and fixed network operators.
We support customers’ networks, servicing more than 2.5 billion
subscriptions in over 180 countries. Today, 40 percent of the
world’s mobile traffic goes through Ericsson networks.
As communication changes the way we live and work, Ericsson is
playing a key role in this evolution. Using innovation to empower
people, business and society, we are working towards the
Networked Society, in which everything that can benefit from a
connection will have one.
Our vision is to be the prime driver in an all-communicating world.
The content of this document is subject to revision without
notice due to continued progress in methodology, design and
manufacturing. Ericsson shall have no liability for any error or
damage of any kind resulting from the use of this document.