Staring into the abyss. Why Retaking Control over Service Innovation is Essential for Telcos' Survival

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Presentation given at the Opencloud Customer Forum. Review why Telcos must re-take control of service innovation from the brown-nosed middle managers of their strategic suppliers. Focus on customers and services. Embed telecom services everywhere and do more value added services. But it requires cultural change from the litany of excuses stifling innovation and a focus on telecom application developers.

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Staring into the abyss. Why Retaking Control over Service Innovation is Essential for Telcos' Survival

  1. 1. Staring into the Abyss
  2. 2. $$$?
  3. 3. ISP
  4. 4. OTT VoIP to cost telcos $479b to 2020. — Ovum
  5. 5. Now buy our reports and bespoke research – even though we’ve never worked in a telco or supplier, we know your business better than you! — Consultants and Analysts
  6. 6. Reports of declining SMS revenue are wrong; annual revenue will exceed 2010 levels until 2017. — Portio Research We’re in a very fortunate position, our customers are addicted to the internet, they keep using more and more. — Alan Quayle
  7. 7. >50%
  8. 8. 70%
  9. 9. 1900%
  10. 10. But isn’t KakaoTalk killing SKT?
  11. 11. The Brain Handles Positive and Negative Information in Differently “The brain handles positive and negative information in different hemispheres. Negative emotions generally involve more thinking, and the information is processed more thoroughly than positive ones.” said Professor Nass, Stanford University
  12. 12. KakaoTalk ChatON MyPeople Naver LINE Free text yes yes yes yes Free call yes no yes yes Voice message yes yes yes yes Send picture yes yes yes yes Send video yes yes yes yes Send… Contact Contact, animation message, calendar, document, location Contact, cloud, location Contact, location Stickers and emoticons Basic ones for free, everything else additional charges free free Basic ones for free, everything else additional charges Popup message ? yes yes yes Language support 12 languages 60 languages Korean, English 9 languages Available for Android, iOS, Windows Phone, Bada OS, BlackBerry, PC (June ’13) Android, iOS, Windows Phone, Bada OS, BlackBerry, web page Android, iOS, and PC Android, iOS, Windows Phone, BlackBerry, PC Special features •Create your own theme for iPhone and Android •Plus friend (content from your favorite Kpop band) •Animated messages (scribble) •Choose bubble styles •Broadcast •Shake it to connect •Bot friend •Send music
  13. 13. © 2013 Alan Quayle Business and Service Development 29 How Operators Feel
  14. 14. © 2013 Alan Quayle Business and Service Development 30 How Operators Act
  15. 15. MBA BS!
  16. 16. Partnership?
  17. 17. Partnership?
  18. 18. Losers!
  19. 19. Wholesale? This is Retail! Customers Direct Relationship
  20. 20. This is also Retail Customer Relationship = Survival
  21. 21. Fixed Voice ($325B) Mobile Voice ($615B) Fixed Data ($275B) Mobile Data ($275B) Regulated Services ($1.5T) Un- regulated Services ($650B)-5 to -7% 5.5 to 9% 3 to 4% 0 to 2% 0-2% Total Telecoms Services ($2.15T) 3-6% + = Over the Top Messaging hits SMS growth Mobile substitution of fixed broadband with LTE OTT substitution, saturation, competition Mobile and OTT substitution Sources: operator averages across developed and developing markets, supplier estimates, Alan Quayle 1-3.3% Threats to Revenue
  22. 22. Brown-Nosed Middle Manager!
  23. 23. Market Chatter is Monopolized
  24. 24. Mobile Everything, WebRTC
  25. 25. Customers Services
  26. 26. Fixed Voice ($325B) Mobile Voice ($615B) Fixed Data ($275B) Mobile Data ($275B) Regulated Services ($1.5T) Un- regulated Services ($650B)-5 to -7% 5.5 to 9% 3 to 4% 0 to 2% 0-2% Total Telecoms Services ($2.15T) 3-6% + = Over the Top Messaging hits SMS growth Mobile substitution of fixed broadband with LTE OTT substitution, saturation, competition Mobile and OTT substitution Sources: operator averages across developed and developing markets, supplier estimates, Alan Quayle 1-3.3% Threats to Revenue There’s just 2 things we need to focus on
  27. 27. Make Telecoms an Essential Spice for every Business Recipe
  28. 28. Do more VAS!
  29. 29. This is Nature. Crawl, Walk, Run! Not, Create some PowerPoint & Go Big Game Hunting.
  30. 30. No. We tried a similar service in our market and it failed, and we’re never ever going to try again What do you think of this service idea?
  31. 31. No. It will not work in our market. Because I’m a 50 year old guy who understands all my customers better than they know themselves. What do you think of this service idea?
  32. 32. No. A feature of your service overlaps with an existing. What do you think of this service idea?
  33. 33. No. We have a similar service launched, and are not going to experiment in trying to make it better or address other customer segments. What do you think of this service idea?
  34. 34. No. Our network can not support such as service, even though such services are going over the top today. What do you think of this service idea?
  35. 35. No. It looks a bit like Joyn, which we’re not sure about, but because it looks a bit like something we may do in the future we’re not going to do it. What do you think of this service idea?
  36. 36. No. It must work across all devices, even though most devices will never use it. What do you think of this service idea?
  37. 37. No. We need additional (random) features included before we could consider it. What do you think of this service idea?
  38. 38. No. It must work on IMS (even though it doesn’t need to). What do you think of this service idea?
  39. 39. No. It must work across all our customers from day one, even though most will never use it. What do you think of this service idea?
  40. 40. No. It must conform to our process and design norms. But we’re not going to tell you what they are, and you’ll have to build them in on your dime. What do you think of this service idea?
  41. 41. No. It must integrate with all our existing platforms, even though it can work fine in the current configuration. What do you think of this service idea?
  42. 42. No. It must be delivered through our preferred SI or NEP, who will copy / kill the service immediately. What do you think of this service idea?
  43. 43. No. You must work through our app store / portal, which we’re in the process of closing. What do you think of this service idea?
  44. 44. No. We can only focus on 4 service launches per year. We only back major successes like Video Telephony, Mobile TV, Push To Talk, See What I See… What do you think of this service idea?
  45. 45. No. We just don’t have the bandwidth, to do our job. What do you think of this service idea?
  46. 46. No. We have a network lock-down as we launch LTE so cannot do anything for the next 6- 9 month. What do you think of this service idea?
  47. 47. No. Bob has left the business and we’re waiting on his replacement, who never comes. What do you think of this service idea?
  48. 48. No. We’re waiting on annual budgets to be confirmed, sometime in the next 6-12 months. What do you think of this service idea?
  49. 49. No. We’re re-organizing again this year. What do you think of this service idea?
  50. 50. No. Someone in the organization doesn’t like such services. What do you think of this service idea?
  51. 51. No. That cannot be implemented without changing our IN / product catalog / CRM / billing / network. What do you think of this service idea?
  52. 52. No. We cannot bill / sell services under $5 per month. What do you think of this service idea?
  53. 53. No. We have a backlog of 24 months on billing updates, even though the service doesn’t need to be in that pipeline. What do you think of this service idea?
  54. 54. No. You must work through our innovation group who we all hate and ignore as they’re parasites on our business. What do you think of this service idea?
  55. 55. No. You must talk with Bob who will then pass you to Bill, who will then pass you to Mary, who will then pass you to Paul, who will then pass you back to Bob. What do you think of this service idea?
  56. 56. Telecom Application Developer EcosystemRevenue Product Internal Telco Developers Partner Developers Telecom App Developers Mobile App Developers Long Tail Developers
  57. 57. www.tadsummit.com

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