Using geolocation data to enhance mobile network revenue

Using geoinformation technology in the
mobile communication's revenue stream
Making value from the cloud based services - examples from selected European
mobile communication providers
Leon Šagovac, Dražen Jurković, Vedran Bubalo

products and solutions that
harmonize growth and efficiency

• Core services
– Voice
– SMS
– MMS
– Data
• Trends
– Voice revenue declines
– SMS threaten to disappear/replaced
with social media
– MMS never proved to be the next
killer application
– Data/connectivity becomes
commodity

Business models

Technology

Target market

Risks

Strategy
Competition harmonize growth and efficiency

• Selling m2m SIM cards • Fleet tracking and
only tracking m2m service in
– 3 € ARPU/month the cloud
– Low switching cost – 15 € ARPU/month
– Low customer loyalty – Barrier to switch (e.g.
– No competitive advantage subsidized m2m devices)
– High loyalty
– Cross-sell, up-sell

competes
or complements?

100.000 € = 33.333 pcs x 3 € 100.000 € = 6.666 pcs x 15 €

Cloud service premium


• Customer base (residential and
business)
• Trained customer service
• Strong business sales
• Superior marketing and communication
• Trusted brand name
• Unique billing and collection systems
• cross-selling and up-selling
opportunities
• m2m devices subsidies
• 24/7 support
• …

• Value Added Services in the Cloud
• CSPs do not have to do everything alone!
• New competences and Business Models Needed
– White label or vendor’s label
– Revenue and risk sharing
– Managed service (with or w/o IaaS)
– Strategic partnerships
– Joint ventures
– Platforms for developers/application enablement
platforms (where CPSs OSS/BSS adds value)

Examples of Value Added Services based
on Esri and GDi GIS/VAS underlying technology products and solutions that

3PP
PERSONAL PORTAL BUSINESS PORTAL
SERVICES

fleet, vessel, workforce E112
Info, LBA, directory, weather

Remote Video Surveillance
Salesforce, working hours,
People, child, pet, cars

Business Managemen
Family and Friends

Track&Trace m2m
game, hunt, vote

routing, HRM, BI
Fun and Games

Information

MobilSocial
MobilSocial
Social

workforce,

working
,

…
Games

, pet,
Friends

m2m
vote

weather

Shared
Admin SSO GPS tracking SMS/MMS Video
records
GDi Ensemble
Capabilities Geocoding/r
OpenLS Mapping Routing A-GPS …
everse

Database, Geodatabase and records GDi ATLAS
BSS/OSS

SDP SMS-C WAP GMLC,MLP, Billing (Parlay-X,
Ticketing O&M SSO Provisioning
Parlay-X MMS-C Gateway SUPL productsCDR)
and solutions that

GDi ENSEMBLE Services
Application Software • Application delivering end user services i.e. Fleet Management, Child Safety,
Sales Automation…

Infrastructure Software • Middleware enabling service-layer applications
ArcGIS Server, GDi ENSEMBLE
platform, DBMS, Geodata

Management Software • Orchestration layer, systems management

Operating Systems • Virtual machine Oses

Virtualisation • Virtualisation management software

Servers • Physical servers, racks, blades

Networking • Network infrastructure, swithec and routers

Data centra • Buildings, power, cooling


Vodafone Hungary


Telecom Austria Group - VIPnet


• Re-use service enablement platform for
further products added to the portfolio
• Boat tracking devices for the Adriatic Coast

• Mass market fleet management services
• Positioning and Pricing based on joint market research
• Hardware + Service at a monthly fee
• Innovative product design for out-of-the-box setup with web-
based provisioning
• Marketed and sold via Vipnet sales channels at remarkable
success rate


LARGE KEY
Residential
ACCOUNTS
customers SME, SOHO (business
(safety, expensive (cost control, 5-
optimization, cost
cars, youngsters 25 vehicles)
control,
driving cars) 100+vehicles,
custom)

Easy to use effect Market Cost effect
penetration

10% 80% 10%


• Product development • Product sales
• Functional and non-functional • Comply to requirements but
requirements development focus on business benefits
• Initial Customization, packaging • Customization on-demand
• Interface to technology • No technology
• Testing, staging and launching • Selling, selling, selling;
services specific KPIs
• Maintaining and supporting long- • Cross-selling, up-selling,
term service success bundling

Who drivers the process
and when?


MTS Ukraine


BH Telecom


• CSPs will not make money from GIS directly,
but GIS can surely enable a range of value
added services which can bring revenue to
CSPs
• Especially if the Cloud becomes the quintuple
play.

• Global Telecoms Business Innovation Awards
2011, London, UK


• Europe-wide cloud based machine-
to-machine (m2m) service gateway
for small and medium enterprises


Thank you.


Using geolocation data to enhance mobile network revenue

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