Presentation by Manuel Vexler from Huwei discusses impact of the ICT (Informatoin and Communication Technologies) indexes on various areas of interest for service providers
A new look at video communications from an ICT perspective
1. A new look at video
communications from
an ICT perspective
Manuel Vexler
CMO ICT, Huawei Technologies
October 6, 2013
2. Slide 2
• About ICT and industry transformation
• Video with and without the television
• When ICT and Video meet?
• Conclusions
Agenda
3. Slide 3
• ICT is a major global indicator measuring all nations’
readiness to use IT and CT
• It contains crucial marketing information for all
participants in the IT and CT industries
Information and Telecommunications
Technologies or ICT
-
4. Slide 4
Measuring and using ICT
• ICT captures 10 major indexes and over 30 sub-
indexes of Political, Regulatory, Business, Individual,
and Socio-Economic impact on a country or region
5. Slide 5
Service Providers
ICT
Internal
IT (ITSP)
OSS BSS Other IT
(e.g. HR)
CT+ IT
Services
Network Svc.
Business Srvc.
Outsourcing,
Consulting
External IT
Enterprise
SMB, LB
Verticals
Telco SMB Gov Banks
ETC
…
For SP ICT provides a new services,
business & operations framework
Monetization of
BSS + Reduced
OSS OPEX
Monetization of
Consulting
Services
Monetization of ICT delivers new
services for consumers, businesses,
government
6. Slide 6
• About ICT and industry transformation
• Video with and without the Tv
• When ICT and Video meet
• Conclusions
Agenda
7. Slide 7
History repeats itself…
every time a television is on
1961: Newton N. Minow calls TV a "vast wasteland." The FCC chair
(1961-63) speaks at a meeting of National Association of Broadcasters
& tells media execs what he thinks of the boob tube
"When television is good . . . nothing is better. But when television is bad, nothing is worse.
I invite you to sit down in front of your television set & keep your eyes glued to that set until
the station signs off. I can assure you that you will observe a vast wasteland. You will see a
procession of game shows, violence blood & thunder, mayhem, violence, sadism, murder &,
endlessly, commercials — many screaming, cajoling & offending.
8. Slide 8
45 year on… opportunity finally arrives as
many left the Tvs, but kept the video
10. Slide 10
Video markets hyper fragmentation…
83%
91%
88%
86% 85% 84% 84%
12-17 18-24 25-34 35-44 45-54 55-64 65+
Content Fragmentation:
Educational Videos added to Youtube
grow by 15% between Apr. & Aug 2013
Device Fragmentation:
The media remains the message!
Demographic Fragmentation:
No surprise
Consumers preference fragmentation:
Content when wanted & on own device
11. Slide 11
• About ICT and industry transformation
• Video with and without the Tv
• When ICT and Video meet
• Conclusions
Agenda
12. Slide 12
• ICT: Developing countries leverage broadband to
deliver enhanced video services!
• It follows mobile leapfrogging trend with over 75%
mobile phones are in developing world (Total 6.3B/2012)
ICT Video enables leapfrogging for
developing economies
14. Slide 14
OTTs step in video delivery by
lowering costs on non-Tv devices
15. Slide 15
ICT drivers: SPs enter the fight as
revenues from voice and data shrink
Infrastructure Services
Transmission Connectivity Hardware
Infrastructure Enablement
Internet enabling services, web
hosting, conferencing, IT consulting
Internet software, mobile software,
software as a service, M2M
Consumer Services Enablement
Advertising, media, ad networks,
measurement, social media tools
Search directories, navigation
Consumer Services
Content, games, music,
video, publisher
Commerce, financial,
travel, retail
Social networks, media
VOICE MESSAGING DATA
Telco
Media
ValueChain
16. Slide 16
ICT at work: enters Video
Conferencing and UC(Multimedia)
17. Slide 17
• Cloud becomes the preferred tool to compete both
against Cable Tv and OTTs
Service providers everywhere are rushing
to complete in the video markets
18. Slide 18
DC
Cloud
Service
Management
Web
Builder
ITaaS Oss/
BSS
CRM/DB Hosting Storage
Resource Pool Management
Service
Automation
DC 2 DC nDC 1
Cloud Service
Mgt.
IT Service
Mgt.
Facility
Mgt.
IT Operation
Mgt.
ManageOne
Security
Resource
Computing
Resource
Network
Resource
Storage
Resource
Device
Resourc
e
• SP have the unique capability to combine cloud
managed services with QoS and QoE functions
SP offer cloud-based managed services
Virtual
PC
19. Slide 19
• About ICT and industry transformation
• Video with and without the Tv
• When ICT and Video meet
• Conclusions
Agenda
20. Slide 20
We are visual and remain visual!
Video markets will grow: Tv or no-Tv!
22. Slide 22
Service providers are transforming their businesses,
operations and ecosystems to face the challenges of
IT and CT convergence
Consumers decide what to buy,
where to buy and what to use!
23. Slide 23
Large Carriers Become the ICT
Services Supermarket
Elastic Resource Pool
SME Gov. & Group
Cloud
Service
Brokerage
(Carrier)
Server
Storage Network SMS
Voice
Resellers
System
Integrator
Bundles for every size business
SME/Soho Medium
Size
Large
Enterprise
Web
OA
Email
UC
Web
OA
Email
UC
Storage IP
Backup
Web
OA
Email
UC
Storage IP
Backup
CRM
ERP HRM
Editor's Notes
961 -- US: Newton N. Minow calls TV a "vast wasteland." The Federal Communications Commission chair (1961-63) speaks at a meeting of National Association of Broadcasters & tells media execs what he thinks of the boob tube (quote):"When television is good . . . nothing is better. But when television is bad, nothing is worse. I invite you to sit down in front of your television set & keep your eyes glued to that set until the station signs off. I can assure you that you will observe a vast wasteland. You will see a procession of game shows, violence blood & thunder, mayhem, violence, sadism, murder &, endlessly, commercials — many screaming, cajoling & offending.Â
And there’s more bad news for cable companies in the report: The number of households that will never subscribe to pay TV will double from around 2.5 million this year to five million in 2016. Together, both groups will make up a whopping nine million households without a monthly pay TV bill.All of this won’t just impact the bottom line of pay TV providers, but also the way people watch TV. One of the technologies negatively impacted is the DVR, which makes sense: As people cut the cord, they also have to return those cable DVRs they’ve been renting. And as they discover new ways to catch up on TV content online, recording shows isn’t as necessary as it used to be. One example: Time Warner Cable actually saw DVR subscriptions drop by 47,000 in the second quarter of 2011.Does that mean the DVR is dead? Not so fast: Magnaglobal is still predicting that DVR ownership will grow over the next five years, but at a slower pace than previously forecast. The company now estimates that 57.5 million households will have a DVR by 2016.Another interesting tidbit in the report comes from the U.K.: Brits have actually been using their DVRs less as the iPlayer and other online options have become more popular:“Interestingly, time-shifted viewing as a share of all viewer hours has leveled off: the DVR accounted for 14% of all viewer hours in 2010 vs. 15% in 2007.”
Mobile devices are becoming an increasingly common part of our daily TV routines. According to the latest Nielsen survey of connected device owners, nearly half of smartphone owners (46%) and tablet owners (43%) said they use their devices as second screens while watching TV every day. And more than two-thirds of tablet and smartphone owners said they used these second screens multiple times a week during Q1 2013.So if consumers are using second screens while watching TV, are they using them merely as distractions? Or are they using these second screens to engage more deeply with what they’re watching? The answer is both. Among tablet owners, general Web searches (76%) and general Web browsing (68%) are still among the top second-screen activities. But consumers are also using second screens for activities that are directly related to the content they’re viewing, as almost half of tablet owners look up information about what they’re watching.
One billion smart connected devices — tablet, smartphones, and PCs — will be delivered to emerging markets in 2014. According to the International Data Corporation ,  1.7 billion shipments of these devices are expected to go out worldwide next year.The shift in demand for smart connected devices is moving from developed markets to emerging markets. Of the one billion devices being delivered to emerging markets, 662 million will go to BRIC countries — Brazil, Russia, India, and China. That’s more than the total number being shipped to the U.S., U.K., and Japan combined (400 million units) and all developed markets (650 million units). The shift can also be seen in demand growth. Emerging markets will see a compound annual growth rate (CAGR) of 17 percent from 2012-2017, while developed markets will have a CAGR of seven percent during that same time.And in both developed and emerging markets it’s the smartphone and tablet, not the PC that’s driving growth. Of those 1.7 billion units that will be delivered worldwide next year, 1.4 billion will be smartphones and tablets. Here’s the market share breakdown: