Excelacom's 15 communications trends for 2015

2. ERA OF MOBILE ADDICTION

3. This has major impacts on
how Communications Service
Providers manage their systems
& run their businesses
Mobile connectivity has
moved from luxury to
necessity to addiction within
half a generation
Consumer expectations – for
service quality, availability
and cost – have undergone a
similarly swift advance

8. CONSUMERS: DEMAND FOR BANDWIDTH
WORLDWIDE, the amount
of traffic on electronic
networks is exploding – and
that’s before the Internet of
Things fully comes online
THE MOBILITY PARADOX:
Within three years, traffic from
wireless/mobile devices will exceed
traffic from wired devices
Consumers demand even more
powerful unplugged connections
so they can remain plugged into
work, home and entertainment

9. CONSUMERS: WEARABLES
TODAY:
Prototypical, limited – smartphone
augmenters rather than
replacements

10. CONSUMERS: WEARABLES
TOMORROW:
Huge potential for truly
connected devices
Who will bill consumers
for all these devices?
Apple, Google, wireless
providers…someone
new?

11. CONSUMERS:
SELF-CARE
Web-based customer management
and self-care functions improves
the quality of sales and support
Ability to quickly introduce new
products and services
Allows for any service to be offered
at any time to a customer base
Consumers want everything and
they want it now!
IMPROVED USER EXPERIENCE

12. CONSUMERS:
CONTENT CONTENT CONTENT
As more portable content is available:
Laptops, tablets and smartphones poised to dominate
TVs as primary viewing device will decline
Rise in time-shift offerings via streaming sources
Consumers want convenience:
the ability to choose…what,
when and how they want to
watch content
The way content is being consumed is changing dramatically

13. CONSUMERS: WORLD OF APPLICATIONS
…or even to apps beyond
“all my friends are there”
Smartphones, tablets and
PCs now open platforms for
communication services
Huge impacts on
monetization
DECLINING LOYALTY
TO PROVIDERS

15. PROVIDERS: DEMAND FOR BANDWIDTH
…and at an increasing rate
Driven in part by new services
crowding onto old networks
Online video streaming on the rise
with free video viewership growing at
an exponential rate
By 2018, mobile data traffic is
estimated to reach a staggering
16 EB per month – equivalent to
streaming over 36,000 HD movies
per second
TOTAL IP TRAFFIC IS GROWING

16. PROVIDERS: CLOUD
CLOUD COMPUTING
Delivery of hosted computing
services from a central
resources pool
Shift CapEx to OpEx
Take advantage of stiff
competition in cloud space
VIRTUALIZATION
Decrease hardware costs by
housing multiple applications and
operating systems on a single
physical server
Virtualization ratio (up to
10-to-1) significantly reduces both
OpEx and CapEx
& VIRTUALIZATION

17. PROVIDERS:
MACHINE2MACHINE
M2M is the engine powering the
Internet of Things
Devices can cross-communicate across
wired or wireless connections, with
impacts to industry, municipalities and
nations (defense)
Forward-looking providers are investing
now in M2M to enable new services in
healthcare, connected vehicles, etc.
Business models are deeply in flux and
ecosystem still complex – partnerships
can help spread risk and test innovation

18. PROVIDERS: NEW BUSINESS MODELS
Shifting CapEx to OpEx: Lean balance
sheet & optimum cash flow
Connected cloud
ecosystems will
be used as a
launch pad to
next-generation
business models,
including
anything as a
service (XaaS)
Products need to get to market
quickly and must be flexible and
adaptable to change
Smart Revenue
Sharing by
integrating with
partners in
industry-related
markets to meet
consumer needsSaaS, PaaS and IaaS will
continue to be in heavy growth mode

19. PROVIDERS: OTT COMPETITION
OTT chat apps like WhatsApp are putting pressure on telcos because they offer
social networks that retain user loyalty
This pushes customers to choose smaller voice/text plans with a big data plan
Providers must look for partnerships and reinvent their offerings to
include embedded connectivity
The telecom industry will lose ~$400 BILLION
between 2012 and 2018 from customers using Over
The Top voice and messaging applications

20. PROVIDERS: LEGACY SYSTEMS
All this growth and change surpassing the capacities of networks
and capabilities of back office systems as they are today
Carriers are competing with Internet challengers at Internet
speeds – but with legacy systems that have been marginally
modernized, if at all…
Modern telecommunications industry
changing faster than ever

21. PROVIDERS: REVENUE/TRAFFIC DECOUPLING
Communication Service Providers (CSPs) are facing a major challenge:
Traffic is going up…but revenue is going down

23. MARKET: MERGERS & ACQUISITIONS
PROVIDERS
Crossing borders and expanding
internationally means facing new
regulation challenges
In-country consolidation with
significant IT consolidation and
business process challenges
Expanding non-core business to
provide new products and
services

24. MARKET: MERGERS & ACQUISITIONS
VENDORS
Large and small vendors come
together, complementing
capabilities
Acquisition spree among
companies:
Celcite Management
Actix
Volubill
Ascade
Telcocell
TeleOSS Consulting
ConceptWave

25. Over 4 million IT
jobs are predicted to
be created in 2015,
and demand for
digital business jobs
will increase five
fold by 2018
China and India producing many qualified people,
but Western nations much less aggressive
There will be an increase in demand and competition for top talent
in-house data scientists, developers and designers, but there will be
a scarce amount of these digital skills in 2015
MARKET: SKILLED WORKFORCE SHORTAGE

26. MARKET: BIG DATA & ANALYTICS
THE NEXT FRONTIER FOR ACHIEVING
COMPETITIVE ADVANTAGE
Enables organizations to develop more
accurate and timely forecasts
 Understand customers
 Predict their behaviors
 Change their behaviors
 Improve targeting and reduce churn
Huge potential upside for the industry