Telco Evolution Sample

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I presented at a recent sales conference for a large security / IT solution provider on the evolution of the telco industry and the role security and protection plays in that evolution.
In summary: customer data, trust, security and protection are critical for operators to get right in this emerging environment.
Operators need an integrated security and protection layer, not point solutions for each service as is the case today. Protection from malware across all network services e.g. IP, SMS, MMS, WAP push, widgets, apps, etc. Protection in the network, in devices and in services.
SDP vendors need integrated security solution across network, services and end-points, which means a partnership with security / IT providers is key. Its a rapidly growing problem as its a highly profitable and more importantly safe criminal business compared to drugs smuggling or prostitution; hence a specialist security/protection partner is essential.

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  • Good comments. btw reg the SMS. in APAC, many operators (inc..SingTel) offering SMSPlus as a VAS. This helps to set out of office notifications, auto reply and most importantly SMS Copy to a e-mail. So both MT & MO SMS can end up in GMail.
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Telco Evolution Sample

  1. 1. Evolution of Telco Industry Alan Quayle Business and Service Development www.alanquayle.com/blog
  2. 2. The Telco Business Model, its the customer that’s going to decide! Utility Service Connectivity Provider P/E=1 P/E=7
  3. 3. Strategic Context: Re-engineering the Web Era Date Characteristic Access Operator Implications Development of the <100kbps Focus on infrastructure, Web 1.0 ’90-’05 capacity expansion and mass basic platform. market connectivity. Focus on user Partner with media experience, open <10Mbps companies, social networking, Web 2.0 ’00-’10 programmable systems, advertising based models, IP connecting people. control and QoS. Web becomes intelligent, Fundamental shift in business understand / anticipates <100Mbps model, dumb or smart pipe? Web 3.0 ’10-’20 users needs – rise of the Question mark of operators’ ‘trusted agent.’ role as ‘trusted agent.’ Can Operators become the Trusted Agent? Security / Protection is critical
  4. 4. Google knows nothing about a person compared to Operators (especially true in APAC!) • Everything Google knows and much, much more……… • Where you are at all times of the day, how fast you’re driving, where you like to go on weekends, where you have dinner, where you had lunch, how long you were at lunch… • When you entered a country, how often you enter that country, how much you spend on communication services, what web services you use when in that country • When and where you use value added / web services – If you use lots of data services at home, offer FMC • The phone numbers of your friends, who you ignore, when you ignore calls • The phone numbers of your business associates, who you talk to most • Your favorite TV programs, when you like to watch TV, what interactive TV services you use • All your SMS – why are they not searchable and stored in the network? • All your voice messages – why are they not searchable? • China Mobile, Telstra, Maxis, SingTel are all have customer data projects underway The list goes on, much further on, and yet T-Mobile my mobile operator has never contacted me throughout the 6 years I’ve been with them, and they’ve taken >$10k from me in that time – is that really a customer centric business?
  5. 5. The Three Pillars of an Operators Customer Experience From Tier 1 APAC CTO Interview Product and High-Quality Channel Service Portfolio Network Consistent Device portfolio Reliable branded Bundled/unbundled Optimum cost experience plans Performance across Applications on/off web, retail, deck content center, devices and kiosk Customer Experience System Customer data, revenue, service and business process management Telco are moving towards a real-time enterprise model
  6. 6. Strategic Context: Power of Devices Drives Peer to Peer Assumptions Shattered Always Online Intelligently Connected Faster CPUs, 3D graphics Multiple PDP context Push as well as pull Massive storage Multiple access Pervasive P2P High definition displays Application driven Smart UIs Media centric Web-centric Context aware Smartphone penetration >50% Intelligence is now at the edge: It’s the PC model!
  7. 7. Fragmentation has Stifled the Mobile Industry
  8. 8. Fragmentation has Stifled and is now Killing the Industry 20,000 Phones * 750 Operators 25 OS * 375,000,000 Mobile apps just didn’t have the scale – now the web is taking over
  9. 9. Smartphones are the Key Driver: Fragmentation Mitigation Gartner analysis shows market consolidating on 5 OS given Smart Phone penetration has reached the tipping point in many tier 1 markets Developing markets such as Malaysia and Indonesia have a surprisingly high smart phone penetration: it acts as their laptop and status symbol
  10. 10. Strategic Context: Customer’s Perceptions are Changing Applications are no User doesn’t care if longer ‘web’ or message delivered Other ‘telecom’ services – by SMS, MMS, IM. Voice they’re just apps. Utility Messaging Subscribers are no Productivity longer ‘voice Mobile subscribers,’ they’re broadband PIM Internet subscribers substitutes fixed – voice is just an broadband app. Games Browsing Multimedia Access to multimedia is no Source: Nokia Smartphone 360 Survey longer constrained Time allocated to different applications Customers expectations are changing rapidly – “There’s an app for that!” Web and Telco services have converged for customers
  11. 11. Strategic Context: Web-based Service Providers are Innovating Faster And customers expect this rate of innovation from their service providers
  12. 12. An Operator’s Product Development Process Find Budget Opportunity Market Identified Research 18-30 month 12-18 month s s New product Re-Launch Launch development process
  13. 13. What’s Changed? Expectations
  14. 14. What Customers Expect 18-30 month 6-12 months s 4 months Weekly
  15. 15. Which Means That….. Fixed and mobile Services independent of Rapid usage growth and Broadband is an enabler the network innovation •Broadband is the •Broadband is an •Growth of Web 2.0 growth engine for enabler for all services community services telecom. •Market boundaries •“Freemium” models •Increasing access diminish as customers •‘Boiling Frog’ capacity increases expectations change. expansion into voice web-service •Move from vertically to capabilities horizontally integrated •Web 2.0 significantly cannibalizes telco’s services •Voice, messaging, IPTV •Multi-play becomes multi-access Operators must act now or become a dumb pipe
  16. 16. Telecom Cake BOSS $45B Services $2000B Telecom Middleware $6B (IN / IMS / SDP) Core (Routing/Switching) $30B Transport (DSL / $300B wireless / optical) Devices (fixed / mobile) $300B Services revenue drives the industry – need to focus on impacting there
  17. 17. What This Means • It’s a fight to remain relevant as a service provider – Fight to maintain a P/E ratio of 7 not 1 • Trusted agent is key: Google knows nothing compared to an operator – Security / protection is critical • Mobile is finally moving to the PC model • Users do not differentiate between telco and web services – Contextually relevant (customer data) is critical • Accelerate service innovation – Apps store, open innovation, opening the network – Trust / security / protection is critical • Telecom Services is a $2T business – Its all about the services Customer data, trust, security and protection are critical

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