1) The document discusses a "two-sided" business model for telecom companies where they generate revenue from both upstream business customers and downstream end users. 2) It estimates that this two-sided platform approach could be worth over $250 billion annually for telecom companies in mature markets. 3) Implementing this new business model would require telecom companies to utilize their underused assets to offer logistics services for data and facilitate transactions between various players in the digital economy.

1. Two-sided Telecoms Business Models “ Is there $250bn in new ‘Two-Sided’ Business models?” Simon Torrance, Founder, Telco 2.0 TM Initiative [email_address] www.telco2.net

4. Let’s define core ‘Telco’ Telco Utility (pipes and cell towers) Systems Integrator Packaging Products (partners’) Products (own) Packets & Platters Plumbing

5. Today: a ‘one-sided’ business model $ $ Is this model sustainable? Suppliers = Costs End Users = Revenue Telco Content, Apps, Devices Network & Termination Interconnect & Storage Consumers Enterprises SMEs Multi-Nationals Products (partners’) Products (own) Packets & Platters

6. Our Survey* said: Pressure on core Voice & Data Services 2017 % of Total Mobile Voice Minutes, Europe 2007 2012 Traditional Telephony Enhanced Carrier Voice Private Voice Apps & Handsets Other Broadband Data (fixed/mobile ISP product) * Telco 2.0 Business Model Survey, Sept 07. 800 Respondents. See: www.telco2.net/blog

7. Our Survey said: Can we really be a media company? * Telco 2.0 Business Model Survey, Sept 07. 800 Respondents. See: www.telco2.net/blog

8. Our Survey* said: New Business Models needed ISP OK Triple or quad play OK New business model 20% 25% 55% * Telco 2.0 Business Model Survey, Sept 07. 800 Respondents. See: www.telco2.net/blog

9. Wouldn’t it be nice if… Upstream Players End-Users … telcos could reduce friction in the digital economy Telco $

10. Telcos: many valuable but latent assets (user data most important) Core customer data Name, Address, Gender, National ID, Profile & Preferences MY PERSONAL DATA Digital Lifestyle Aggregators & PIM Pictures, Videos, Bookmarks, History, Files ; Calendar, Address Book, To Do, Notes MY STUFF Identity and persona creation for user Number, address or ID provisioning; porting; avatars MY IDENTIFIERS Naming and tracking non-human resources .mobi domains, web browsing history, QR codes read MY INTERACTIONS Knowledge of personal and business interactions My bank, school, workplace, friends MY RELATIONSHIPS User real-time activity and environment Location, Motion, Temperature, On/Off, Roaming, In-call MY CONTEXT User ID linked to physical device or token; configuration SIM, USIM, SoftSIM, serial number, profile & settings MY DEVICES

11. Telcos: Opportunity to create a 2-sided platform-based business model $ $ Customers: Revenue Side 2 Customers: Revenue Side 1 B2B VAS Distribution Telco Platform Developers Retailers Government Brand Advertisers Content Owners Telco – Retail Millions of Customers Thousands of Segments

12. Richer wholesale aggregation will be a key enabler $ $ Customers: Revenue Side 1 Customers: Revenue Side 2 B2B VAS Distribution Channel Partners Telco Platform Developers Retailers Government Brand Advertisers Content Owners Telco – Retail Millions of Customers Thousands of Segments

13. New Value Proposition: ‘Logistics Services for Data’ 1. Distribution (multi-modal) Broadband… + Voice & Messaging + Broadcast + Content delivery networks + Edge caching 2. B2B Value Added Svcs Advert Insertion… + Identity & Authentication + DRM + Payments + Content controls + Vertical solutions … for data

14. Potential New Market* of $250bn +? (Mature Markets alone) * Telco 2.0 Future Broadband Business Models Report, Jan 2008. See: www.telco2.net

15. New Revenues (1): ‘New’ Wholesale and New Distribution Platform Re-mix telco assets with apps, content, and devices to enable value-based pricing, increased usage and higher margins. Video Data Voice “ Skype minutes” vs. “ Ordinary minutes” Content delivery networks for 3 rd parties “ Postage and packing included!” – for data

17. New research and major event interrogate this $250bn+ opportunity Event: www.telco2.net/event/april2008 Research: www.telco2.net

18. Two-sided Telecoms Business Models More on this topic: www.telco2.net/blog [email_address]