1) The traditional telecom business model is threatened by new technologies and competitors in the 2.0 world, but these changes also open new opportunities for telecom companies that can adapt. 2) To take advantage of opportunities in the 2.0 world, telecom companies need flexible front and back office systems to offer both traditional and new services, and adopt a business approach within and beyond the traditional ecosystem. 3) By identifying and prioritizing potential new customers, designing the right go-to-market strategy, and offering innovative services, telecom companies can turn competitors into customers in the 2.0 world.

1. Telco 2.0 : What is it & How to
Business models Media & Telecom 2.0:
Key monetization strategies
Moskow April 24, 2012

2. Agenda
2.0 world threatens traditional Telcos business model but
•
opens new opportunities to those able to catch them :
 Implement an agile and adequate front & back office BSS
 Adopt a new approach to business, within and beyond the
traditional telecom ecosystem
Turn your competitors into customers by offering new
•
services to businesses and taking a Telco 2.0 approach to
business
Confidential  © 2010 BearingPoint UK Ltd 2

3. 2.0 world threatens traditional Telcos
•
business model…
Telco 1.0 value chain is threatened by many factors…
Cloud services
Social networks Disintermediation
Horizontal market structure Overthe topplayers
Applications
Content Application Portal Network Handset
ISP
provider developer provider Operator provider
Increased price competition Piracy Smartphones
Advertisement Internet players
Commoditization
… and lots of organizations are trying to take advantage of the changes
Utilities, Broadcasters, Device Manufacturers, Health & Medical Services, Government
Departments, Retailers, etc. are seeking to deploy new Business Models
Telcos need new capabilities to avoid them going OTT
Confidential. © 2012 BearingPoint 3

4. …but at the same time opens up new
•
opportunities to those able to catch them
Telco 2.0 will enable new business
•
•Core Telco 1.0 business models is one
models for many different industries
sided and include 3 and 4 play services
with their final customers
Suppliers = Costs Telco Users = Revenue Upstream Downstream
Eg. Developers
Content, Apps, Partner Blackberry,
Devices Products Nokia Music
Retailers
Store
Millions of
Network Eg. Fixed Government Customers
Elements, Protected Voicemail, $$ Telco $$
Termination Products SMS Voting Thousands
Google of
Segments
Interconnect, Packets &
Eg. ISP ASPs
Storage Platters Access,
Hardware hosting
Telco
(Retail)
STL Partners STL Partners
Confidential. © 2012 BearingPoint 4

5. Exploit the two business models requires significant
flexibility in the front and back office systems
• In Telco 2.0 business models, operators • … and need agile and adequate front &
are logistics solutions providers… back office BSS
 Make sure data is delivered to the
right place at the right time in the right
way, and enable different parties to get
paid in appropriate ways
 Make use of multiple distribution
systems (e.g. internet, mobile,
broadcast, network caching, physical
media) some of which they own, some of
which they don’t
 Get paid by upstream partners as
well as downstream end-users
Confidential. © 2012 BearingPoint 5

6. A new approach to business, within and
•
beyond the traditional telecom ecosystem
Telco Wholesale clients
B2C and B2B retail Mo Car
Wholesale activities ISP …
activities bile rier
1 2
Offer wholesale services
Current offer and services Current offer and services
to other operators
portfolio portfolio
 «Services Push»
4 Enrich wholesale 3 Detect potential services
portfolio according to that could complement
Enrich retail portfolio
market needs the current wholesale
 « Market Pull » portfolio
Developing new services for the wholesale market will in the end enrich the
retail service portfolio
Confidential. © 2012 BearingPoint 6

7. Telcos should correctly prioritize the services
•
to offer
• Assess your existing and potential
• Prioritise each service
services
Investment Margin contribution
in %
- +
Easily
repeatable Priority 1
Repeatable
Priority 2
Hardly
repeatable
Priority 3
+
-
- + +
-
Service Repeatability
maturity
Confidential. © 2012 BearingPoint 7

8. Clearly identify and segment the potential
•
customers
• Identify priority targets • Refine your sample
Type Acces
Mkt Legiti
of Categories
size macy
s MNO
target ease
 Independant MNO
MNO  Regional MNO
 MNO / start-up
+/- 5H distant
 Fixed operator
Fixed before
Operat
privatisation
or Independant
 VoIP Operator
 ISP
Intern
 BBVNO Customer base
et/TV
 TV broadcaster
<500K subs.
Confidential. © 2012 BearingPoint 8

9. Detect the necessary steps to take in order to
•
propose the new services
Analyze each target identified…
Define the
Identify the main Identify the
value
stakes for the offer Identify the
proposition
actor with regard permitting to contacts to
for the
to your possible deliver the approach
prospect
responses pledge
customer
…and the steps you have to take to propose an adapted service
Which steps to take in
Which steps to take in
terms of Which TTM ?
terms of HR ?
infrastructure ?
Confidential. © 2012 BearingPoint 9

10. • Design the right go to market approach
Prospect new customers Qualify opportunities Propose your service
Systematize commercial Detail identified Elaborate technical and
approach for key opportunities and commercial offer
accounts evaluate their success
probability
Confidential. © 2012 BearingPoint 10

11. Turn your competitors into customers by
•
offering new services to businesses
Connected TV
Cloud VOD & Billing
computing
Network
management Country short
Audiotel
code
Content
CRM Service market place
platforms
Scratch card
provisioning E-marketing
Billing
M-Banking
Open transit
Web portal Consulting
Internet
Smart
Hosting
metering
Confidential. © 2012 BearingPoint 11