The document discusses the challenges mobile operators face due to the rise of over-the-top (OTT) communication services, which threaten traditional revenue streams like SMS and voice calls. It emphasizes the need for operators to leverage their existing assets, such as customer relationships and networks, to counteract this threat by innovating and engaging with customers. Strategies suggested include understanding customer needs, targeting niches, and forming partnerships with OTT services to create competitive advantages.

1. Myriad Group
Helping operators address revenue
cannibalisation from OTT communication services
Mark Watts-Jones @MWJ
Director of Social Mobile +44 7073 963539
June 2012

2. Myriad Group has over 100 operator and 25 OEM
relationships globally
Developed Markets
Emerging Markets
2 @MWJ #fwic

3. Fact: Consumers communications needs are
evolving leading to increased use of OTT services
Consumers
have greater
choice for their
communication
services
Smartphones increasing impacting
operator
FROM: revenues
Basic devices
Voice and text
only
Operator
services
Data increasing
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4. Forecast: As OTT services gain a foothold
operators core voice/text revenues are at risk
OTT messaging starts to
substitute SMS
Lower SMS use = lower SMS
1 Lower SMS revenue revenue
Lower demand for SMS = Lower
plan/tariff revenue as customers
2 Lower plan/tariff revenue move to lower value plans
Operators become „pipes‟ as
OTT services become primary
3 Lose customer relationship
means of communications
Future voice, messaging and Operators cannot monetise their
VAS revenues at risk position as trusted, mass market
consumer brands
Ref: Ovum, 2012, Counteracting the social
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5. Problem: As Bob Dylan said the times are a
changin’
FROM TO
Operator-centric Service centric
Own the
network
Control the
device “They‟re using our
Own the Provide the network to do
spectrum services
whaaattttt?!!!”
Own the Determine the
brands price
Universal, Compete with
interconnected each other
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6. …but OTT services aren’t playing the same
game as mobile operators
USER PERCEPTION: OPERATOR PERCEPTION:
Cool, exciting Fast, dynamic
Creative, new Challenging
„Free‟ Close to end users
Very viral Don‟t care about operators
The users friend Performance or security
issues tolerated
Happy to pivot
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7. Ok we hear you…
…but what do we do?
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8. Well to start with operators have assets that
OTT services can only dream of
Millions of paying customers
Cash
Mass market consumer brands
Customer relationships
Ability to bundle
Large (often IP) networks
Cost advantage
Skills, experience
Distribution, support networks
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9. And plenty of possible strategies. For example
operators could do one or all of…
Pricing
Operator assets
Create extra consumer
Focus on the network value
Differentiate through Lower costs
brand, marketing,
distribution or support
Customers
Services Do what customers want!
Partner with OTT Get them before your
services competitors do
Create copycats Technology Target niches
Innovate new services Open up, work in new ecosystems
Use all of that big data Differentiate by QoS
Support industry initiatives e.g. RCS
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10. Erm, ok, but you’ve still not told us what to do.
Well…that depends
on…
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11. …what the most important people in all of this want
– the end users
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12. Understand the needs of your customers. They’re
all different and all special!
They‟re in
different life
stages, with
different
experience, skills,
expectations and
willingness to do
things
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13. To illustrate this point
…who here today…?
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14. Owns a Nokia?
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15. Has heard of Textfromdog.tumblr.com?
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16. Watched the OMG Cat?
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17. Wears a suit?
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18. Any idea what icanhascheezburger.com is?
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19. Actually used Instagram.com? No, really.
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20. Or Pinterest.com?
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21. The answer is the ‘Do something’ scenario
• Know your customer – who they are and what
they need - and relentlessly target them
• Do something, anything
• Identify niches and grow with them
• Be confident! Try, fail, try again
• Increase value to offset the perceived benefit
of OTT services
• Engage customers early before they become
OTT users
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22. Which could be summarised as…
Be quick
Be creative
Be committed
Be great for the end user
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23. 23 29/06/2012 Confidential & Proprietary © Myriad Group AG 2012