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Introduction to Telco-OTT Services


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Introduction to Telco-OTT Services

  1. 1. Introduction toTelco-OTT (‘over the top’) Services © 2012 Disruptive Analysis Ltd and Martin Geddes Consulting Ltd
  2. 2. Telco World OTT World Service-centric Experience-centricTelco-controlled devices Any combination of Telco-owned access device, access Telco-created services and service* Network roaming Experience roaming * Supported within any one ecosystemThis is the familiar world …and this is the world of telecoms service they see encroaching on providers… their territory
  3. 3. The telecoms world today IMPORTED InterconnectedIMPORTED call & SMS A-B CLOUD IPTV, WEB APPS CONTENT Telco A Telco B Interconnected/federated services make up the bulk of telecoms profits Telco C EXPORTEDEXPORTED BULK SMSCONTENTDELIVERY On-net call / SMS C-C
  4. 4. The “traditional” vision of future IP/4G telecom Interconnected VoLTE & RCS A-B IMPORTEDIMPORTED M2M HDTV, SERVICESSOCIAL TV Telco A Telco B “More of the same” has been the main strategy response to OTT Telco C EXPORTEDEXPORTED RICH APIs QoSDELIVERY On-net VoLTE / RCS C-C
  5. 5. Sessions Subscription Service basedRegulated bundling Minutes & Telco Converged messages World Services Customer Phonebook -centric Ubiquity & loyalty & churn Interconnect This response is based on unspoken assumptions as to “what really matters”
  6. 6. Problem: What worked in the past……won’t work in the future
  7. 7. Because in parallel….Consumer Enterprise Contextual Comms Comms & BYOD change Telcos keep pursuing a “convergence” approach when “divergence” rules…
  8. 8. Multiplicity of services + Multiplicity of devices + Multiplicity of networks + Multiplicity of ecosystems + Multiplicity of interactions Federated telecom services …and telcos rely on (lowest common denominator) “ubiquity” – but they can’teven deliver that any more
  9. 9. Device diversity means OTT models inevitable Probability of all of a user’s On-Net Internet devices being on a • WiFi roaming & Next-Generation single telco’s network Hotspot100% • Telco QoS (?) Free 3rd party WiFi80%60% Off-Net40% • More devices (and rising)20% • More (free) WiFi & 3rd party connections 0% • More places of use 1 2 3 4 5 6 • Roaming & federation scaling issues # connected devices owned • Slow uptake of triple/quadplay The math of a multi-device world works against the federated telco model
  10. 10. Servicee.g. Telephony Meanwhile, the Web is turning telco services into browser capabilities Product e.g. Skype Feature e.g. Xbox Live Function
  11. 11. Unsustainable Going from Changing user Collaboration isnumber of local scarcity to behaviour too slow, service abundance in (apps are cool, bureaucratic & creators apps not geeky) non-creative NOW! SmartphoneOperators need & tabletto compete at a penetration service level So it’s time for rocketing a change of strategy Clever adaptiveNo more “you’ll Good-enough Viral uptake of softwareeat what you’re fixed & mobile apps makes OTT given” networks work better
  12. 12. $1tn questionHow can telcos meet theOTT services challenge? (deep breath…)
  13. 13. Answer:If you can’t beat them… …join them (…phew!)
  14. 14. Telco World Telco-OTT World OTT WorldService-centric Product-centric Experience-centric Telco device Mixture of telco and Any combination of Telco access 3rd party devices, device, access Telco service access and services and service* Network roaming Experience roaming ? Bring the best of both * Supported within any one ecosystem worlds together
  15. 15. Telco World Telco-OTT World OTT World Service-centric Product-centric Experience-centric Telco device Mixture of telco and Any combination of Telco access 3rd party devices, device, access Telco service access and services and service Network roaming Experience roamingComms Connec -tivity ? There are four Telco-OTT segments – already with Content Cloud many products & services
  16. 16. How? Build businesses that……use OTT strategies
  17. 17. Operators must offer OTT extension servicesOperator A is at a competitive disadvantage Telco A Telco B C-IPTV app on 3G Interconnected call (A gets data C-B charges) On-net rich IP A Prisoners’ Dilemma call & UC C-C effect forces losers to Telco Ccarry cost, but no revenue Telco-OTT disrupts call & SMS origination and termination regimes Telco C’s domain OTT extension
  18. 18. Logical end-point? Full Telco-OTT services Telco C’s OTT apps Telco A Telco B We are seeing a free-for-all to retain the Telco Cuser & billing relationship On-net QoS- optimised call C-C
  19. 19. OTT is a trade-off for users More choice of applications Wider distribution for applications Lower cost of usage (Sometimes) better performance atDemand low network load Make the trade-off to give users a broader reach of Performance is richer services - more variable, and - worse at high network load
  20. 20. OTT is a trade-off for telcos New markets & new customers Extend value of existing services & retain customers Remain relevant beyond transmission Supply Direct competition with Internet-OTT Accept that your business players & “cult of free” strategy needs to change Lack of control can damage brand if to achieve this experience is poor Stresses organisation and exceeds core competence
  21. 21. Create value propositions that address both telco and OTT characteristicsTelco-style Familiar Functionality OTT-style services Transmission Reach services Convenient Storage Delivery Mobility Universality Tailored Rentable Usability Ubiquity Coolness Preinstalled Relevance Governance Exclusivity Availability Urgency Simple Personalised Accountability Dependable Affinity Example: Peer-to-peer messaging
  22. 22. Telco-style OTT-style services Adopt a design rather than services engineering culture in solving user needs Design! Engineer!
  23. 23. Pick use cases which are less sensitive to variable Mobile VoIPPerceived or poorer performance value Mobile Acceptable telephony Application performance (speed, WORST BEST Unacceptable accuracy, CASE CASE responsiveness, continuity) Better Worse “best case” “worst case”
  24. 24. Other characteristics may be equally or moreimportant than the network DEVICE DISTRIBUTION Screen size Pre-installation Battery life Apps store promotion Understand & mitigate all the bottlenecks to QoE and value-in-use REGULATION CONTENT RIGHTS Legality (e.g. intercept) DRM Numbering License agreements
  25. 25. What next? Join in……everyone’s at it!
  26. 26. CommsConnec Over 100 identified -tivity Telco-OTT products in the market.ContentCloud
  27. 27. Operator strategies & positioning vary widely Key partnerships, customisation, Full details in report from co-branding Disruptive Analysis (click for information)Internet-OTT Tactical enthusiasm collaboration Hostility Skeptical Tactical / Strategic niche focus Telco-OTT enthusiasm Source: Disruptive Analysis Telco-OTT Strategies report
  28. 28. Free resourcesDean BubleyFounder & Director, Disruptive Analysis Ltd @disruptivedean Blog: disruptivewireless.blogspot.comMartin GeddesFounder, Martin Geddes Consulting Ltd @martingeddes Newsletter:
  29. 29. Premium resources Click for full details of Click to join free Future of Click for details of Telco-OTT Strategies & Communications list and Premium Twitter feeds Case Studies report be notified of future events Public and @DAPremium private workshops on @GeddesPlus Telco-OTT services Next public workshops: US East Coast, Summer 2012To be first to know when & where, sign up for the newsletter at
  30. 30. & Thank you.