T2 Use Case Project Overview V1


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An overview of the 2009 Telco 2.0 Project on Use cases.

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T2 Use Case Project Overview V1

  1. 1. The ‘Two-Sided’ Business Model Use Case Project: Introduction<br /><ul><li>‘Two-sided’ platform-based business models’ have the potential to open up new market opportunities for telcos</li></ul>They create significant value for multiple stakeholders in the ‘digital economy’ by addressing everyday business process problems <br /><ul><li>The concept is increasingly established and now needs additional support through practical worked examples and actual cases</li></li></ul><li>The ‘Two-Sided’ Telecoms Business Model - Overview<br />Side 1: <br />Upstream Customers<br />Side 2: <br />Downstream Customers<br />Developers<br />A ‘two-sided’ operator :<br />Provides services to ‘upstream’ service providers and ‘downstream’ end-users by enabling them to interact via a Telco platform<br />Collects revenue from either or both sides<br />Note: Downstream customers are both consumers (B2C play) and businesses (B2B play)<br />Telco<br />Retailers<br />Millions of Customers<br />Thousands of Segments<br />Government<br />Media Companies<br />$<br />$<br />ASPs<br />Telco – Retail<br />
  2. 2. A new ‘two-sided’ operator has 3 revenue streams<br />Side 1: <br />Upstream Customers<br />Side 2: <br />Downstream Customers<br /> End-User Service Business<br />Voice, messaging, media and data delivered to and paid for by end users – as now.<br />A Distribution Platform Business<br />Allows third-party service providers to distribute voice, content & data services as part of their proposition to end users across multiple distribution systems: internet, broadcast, multicast, SMS, circuit voice etc.<br />A VASPlatform Business<br />Allows third-party service providers to better interact with downstream customers by providing enabling services<br />1.<br />Developers<br />1.<br />End-User Services<br />$$<br />Retailers<br />2.<br />Millions of Customers<br />Thousands of Segments<br />New B2B Platform Services<br />Government<br />Media<br />2.<br />Distribution Platform<br />$$<br />3.<br />Advertisers<br />3.<br />VAS Platform<br />$$<br />Utilities<br />Financial Services<br />
  3. 3. Potential Growth Opportunity: up to $375 billion p.a.<br />Source: STL Partners/Telco 2.0 Analysis, ‘Two-Sided Telecoms Platform Sizing’; ‘Future Broadband Business Models’<br />
  4. 4. Distribution Platform - six main product areas<br />Source: STL Partners/Telco 2.0 Analysis, ‘Two-Sided Telecoms Platform Sizing’; ‘Future Broadband Business Models’<br />
  5. 5. VAS Platform - seven service capabilities<br />Source: STL Partners/Telco 2.0 Analysis, ‘Two-Sided Telecoms Platform Sizing’<br />
  6. 6. Senior Telco execs appreciate the need for new business models<br />“I don’t like the word ‘carrier’. We operate customer platforms, billing systems and so on. A carrier is not what Vodafone wants to be…We need to find the right models for all the new content and applications.”<br />VittorioColao, CEO, Vodafone, 2009<br />“We have to find a way for applications to work across devices, platforms and operating systems…I think we should use standard APIs... that would allow developers to access platforms worldwide.”<br />Ralph de la Vega, CEO, AT&T, 2009<br />“The challenge is not the technology. The challenge is not the applications. The challenge is the business model.”<br />Chairman Wang Jianzhou, China Mobile<br />
  7. 7. What next?<br />The need for, and theory and concept of, the ‘two-sided’ business models are now understood and accepted by many senior strategy executives in Telcos...<br />...but a deeper, practical understanding is required.<br />The Telco 2.0 ‘Two-Sided’ Business Model Use Case Project will provide detailed examples of specific actual and potential examples of the practical application of the theory. <br />
  8. 8. The Use Cases provide:<br />A detailed and workable illustration of the new business model in operation<br />Insight on how existing ‘best practice’ can be enhanced<br />Direction to investment prioritisation<br />
  9. 9. To be published in a new Telco 2.0TM Strategy Report and presented at the Telco 2.0TM Executive Brainstorm Events (see http://www.telco2.net/event/).<br />The 5 ‘Two-Sided’ Business Model Use Cases<br />Telco 2.0 ‘Use cases’ are detailed “business level” descriptions of illustrative commercial models for new Telco 2.0 B2B platform services across the most accessible opportunity areas:<br />Marketing and Advertising 2.0: Exploiting Telco data<br />Mobile Broadband 2.0: Managed data offload service <br />Digital Money 2.0: Mobile Banking for the unbanked in mature markets <br />Digital Utilities 2.0: Smart Grid<br />Voice and Messaging 2.0: SME productivity platform <br />