Presentation at 2013 ETIS community gathering. Discussion of trends in carrier service innovation and their impact on back office infrastructures.

1. The Innovation Imperative
Why Innovation Matters More Than Ever…
…and What It Means for Operations and Billing Infrastructures
Peter N. Jarich
VP, Consumer and Infrastructure
October 18, 2013
Washington, DC / London / Paris
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2. Agenda
The Innovation Imperative
• carrier innovation circa 2013
• market realities & innovation foundations
• operator implications
Carrier Innovation in Practice
• the myth of operator DNA
• innovation across the globe
• service diversity across the globe
• monetization diversity across the globe
Operations, Billing and Innovation Supports
• new partners
• new business lines
• new monetization models
• same old expectations
Conclusion: The Way Forward
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3. The Innovation Imperative
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4. Innovation Imperative: The World Before Data
Remember Phone Innovation 15 Years Ago?
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5. Innovation Imperative: The World Before Data
Remember Service Innovation 15 Years Ago?
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6. Innovation Imperative: An Evolving Market
Innovation Circa 2013: AT&T’s Foundries
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7. Innovation Imperative: Mobile Broadband Ubiquity
LTE = Proxy for Demand + Supply
300
250
200
150
100
50
0
LTE Network Launches: 2009 – 2013 (E)
2009 2010 2011 2012 2013
Source: GSA, Sept 2013
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8. Innovation Imperative: Mobile Broadband Ubiquity
LTE = Proxy for Demand + Supply
1200
1000
800
600
400
200
0
LTE Device Launches: 2011 – 2013
Feb-2011 Jan-2012 Jan-2013 Aug-2013
Source: GSA, Aug 2013
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9. Innovation Imperative: Mobile Computing Ubiquity
Smart Devices = The New Normal
US Mobile Device Presence: Aug 2013
78%
22%
Smartphone
Featurephone
Source: Current Analysis - CurrentTRACK, Aug 2013
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10. Innovation Imperative: Mobile Computing Ubiquity
Smart Devices = Coming to Every Corner of the Map
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11. Innovation Imperative: Today’s LTE Services
Common Marketing Message: Speed, Speed, Speed
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12. Innovation Imperative: Today’s Service Competition
Competition is Changing, But What Is It Changing Into?
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13. Innovation Imperative: Today’s Consumer Services
OTT’s Proving Faster, Better at Value-Add Innovation
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14. Innovation Imperative: Carrier Market Realities
An Industry Identity Crisis?
Market Drivers Challenges
Access Market Rapidly
Evolving
 voice decline
 data commoditization
New Competitors
New Service Capabilities
 buckets & caps
 zero-rating
 time-based
 location-based
 multi-access
New Customer
Expectations
New Competitors
Developing and
Validating Service
Roadmaps
Trend Visibility Beyond
the Home Market /
Business
 unfamiliar services
 unfamiliar geographies
The Search For New
Partners
 tap market diversity
 filling service gaps
 leverage new thinking
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15. Carrier Innovation in Practice
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16. What Is Innovative: Looking for a Definition
It’s Easy to Spot, Right?
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17. What Is Innovative: Looking for a Definition
It’s Easy to Spot, Right?
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18. What Is Innovative: Looking for a Definition
It’s Easy to Spot, Right?
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19. What Is Innovative: Looking at Examples
Carrier Services Beyond Voice and Data?
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20. What Is Innovative: Looking at Examples
Broader Partnerships in Service of Driving Data?
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21. What Is Innovative: Looking at Examples
Moving into New or Adjacent Markets?
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22. What Is Innovative: Looking at Examples
Disrupting Your Existing Business?
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23. What Is Innovative: Looking at Examples
Somewhat Disrupting Your Existing Business?
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24. What is Innovative: Sorting out the Details
…From A Wealth Of New Service Opportunities
operator apps data multi-sim
multi-screen
data roaming
zero rating
SERVICE TYPES
ad-funded
IP comms location
bundled content
OTT integration
app market integration
cloud services
mobile payments
mobile marketing
connected devices
secondary brands WiFi
4G
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25. What is Innovative: Sorting out the Details
…From A Wealth Of Ways To Make Money
revenue sharing
service cost reduction
direct monetization
(service fees)
MONETIZATION
ad-funded
freemium
customer acquisition customer retention
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26. Operations, Billing and Innovation
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27. OSS + BSS + Innovation: Beyond Access or Core
Who’s Ready For A “Blast From The Past?”
applications as an
equal part of solution
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28. OSS + BSS + Innovation: New Partners
How To Play Nice With Others?
New
Partners
API INTEGRATION
OTT MANAGEMENT
CATALOG INTEGRATION
HOLISTIC VISIBILITY +
MANAGEMENT
BILLING MEDIATION
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29. OSS + BSS + Innovation: New Services
New Services Require More Than Just New Ideas
New
Services
API MANAGEMENT
APPLICATION LIFECYCLES
DATA ANALYTICS
SELF-CARE, SELF-FULFILLMENT
CEM SUPPORTS
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30. OSS + BSS + Innovation: New Monetization Schemes
Because We All Hope To Get Paid
New
Monetization
MEDIATION
POLICY
ANALYTICS + CEM
CRM INTEGRATION
MICRO PAYMENTS
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31. OSS + BSS + Innovation: Networks Are Changing
But Are Consumer Expectations Around Them?
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32. OSS + BSS + Innovation: Consumer Expectations
SPs Are Not OTTs, And There Are Many Reasons Why
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33. Conclusion: What Does The Fox Say?
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34. Conclusion: The Way Forward
Carrier Service Innovation Is Everyone’s Business
Carrier Service Innovation Is An Evolution
• Different Today Than It Was Yesterday
• Who Knows Where It’s Going Tomorrow?
Innovation Must Move Faster Than An Evolutionary Pace
OSS/ BSS Infrastructures Must Be There To Support It
• New Service Rollouts
• Meaningful Partnerships
• Complex Monetization and Billing Schemes
• All Done With a “Fail Fast” Mentality
• All Done Against The Backdrop of Quality Expectations
Embrace The Excitement
• New Services + New Competition
• New Capabilities
• New Vendors
• New Relevance for Operations and Billing
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35. Thank You
Questions?
Presented by:
Peter Jarich
VP, Consumer and Infrastructure
Current Analysis is the leading provider of continuous, actionable market intelligence, analysis and
advice. For over 15 years, Current Analysis has helped global telecom, IT and software companies
leverage market events to identify strategic growth opportunities, innovate, and position themselves
as leaders in the marketplace to win more business. Relied upon as a trusted partner, the company
serves more than 35,000 professionals at over 1,400 global enterprises.
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