Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators

• Long-standing Experience in Telecoms
• Chairman and Keynote Speaker in
various World Telecoms Events
• Project Manager and Consultant to
several national VAS Projects
• Based in Sydney - Australia
Telecommunications, IT, and Media
Emerging Markets & Developing Countries
Mobile: +61 447 808 987
Email: Ali.Saghaeian [at] gmail.com
Professional Experiences
About Me
Developing Multimedia and Value Added Services on 4G and 4.5G for Telecom Operators

4
Mobile VAS and Multimedia Ecosystem and
Value‐Chain over 4G and 4.5G Network:
Key Drivers and Critical Success Factors
New Service Development and Service Delivery
Innovation in Mobile VAS and Multimedia
World’s Best Practices and Success Stories in
Launching Multimedia and Value Added Services
Optimizing Strategies to Stimulate Mobile VAS Usage
and Maximize Operators’ Revenues
1
3
2
CONTENT & AGENDA – I / III

Driving Mobile VAS Adoption and Creating a Sustainable
VAS Proposition in New Mobile Generations
Exploring Mobile Apps Categories and Successful
Mobile VAS and Multimedia Applications
Strategies for Monetizing Mobile Content, Services
and Applications in 4G and 4.5G Market
Value Creation and Customer Experience Management
in Mobile VAS for an Enhanced Customer Journey8
5
7
6
CONTENT & AGENDA – II / III

CONTENT & AGENDA – III / III
Deploying Value-Added Service (VAS) Applications
over LTE Network as an Advantage against Over-The-
Top (OTT) Players
Next Generation Service Platforms for Multimedia
and Value Added Services
Offering Rich Communications Services (RCS) as a
Multimedia Application to combat OTT
Competition
Applications of Internet of Things (IoT), Big Data
and Cloud Services in 4G-based Mobile VAS12
9
11
10

Mobile VAS and Multimedia Ecosystem and
Value‐Chain over 4G and 4.5G Network:
Key Drivers and Critical Success Factors
By ALI Saghaeian
Chief Analyst & Consultant
Telecoms, IT and Media
Ali.Saghaeian [at] gmail.com

Objectives
• Understanding Today’s Challenges of Operators
• What are the Global Market Developments
• Learning about the New Evolving Ecosystem
• Strategies of other Players in the Value Chain
• Evolution of Mobile Operators' Business Model
• How to take the Smart Pipe VAS Strategy
• Key Drivers and Success Factors in Future Networks

Agenda
• 4G and 4.5G as the Next Uplift of Growth
• The Evolution of Digital Technologies
• Global Mobile Data Traffic Growth
• Possible Changes in the Value Chain
• Data as the key to create Competing Value
• Mobile Operators' Business Model Evolution
• Operators' Strategies in the Value Chain
• Value with Digital Economy and the Evolving Ecosystem

Definition of Value-Added Service (VAS)
A value-added service (VAS)
•is non-core services i.e. all services beyond standard voice calls, SMS and data products;
•enable mobile operators to develop additional revenue streams; and
•can be used in any service industry, for services available at little or no cost, to promote their primary business.

4G and 4.5G are bringing the next uplift of
growth
Today, Telecommunication industry is in data–centric world …
MNOs to reinvent business model and build new engine for growth …
SON: Self-Organizing Networks

The Evolution of Technologies
1970 - 80 1990 2000 2010 2020 2030
Early
Information
Systems
Mobile
Number
Connected
Objects
& Locations
Augmented
Reality,
Virtual Reality,
Artificial Intelligence
EVOLUTION OF DIGITAL TECHNOLOGIES
Internet of
Things
IOT
Big data
Cloud Computing
Social Networks
Broadband
Impact of
technology
on Experience
and Productivity
EVOLING TECHNOLOGICAL CAPABILITIES

Some key trends observed over the last year
6
Rise of the second device 1
Mobile penetration has crossed 100% in many of the countries and consumers are carrying second connection/ device. Effective ARPU monetization from the second device is a major challenge for Service providers
Decline of traditional Voice ARPU
2
Service providers are losing traditional Voice Revenues but are now fighting back to ensure the “share of wallet”. Strategies include Bundling voice, launching digital voice and creating innovative services targeting voice revenues
Network Congestion/ Outage
3
Increased data demand and spikes in geographies are leading to Network congestion / outage. The continuous outage is forcing Service Providers to relook at their long term network strategy
Social media savvyconsumers
4
APAC now has one of the highest Facebook users/ Linked in users. Service providers are increasingly looking at social media but do not have a clear strategy.
OTT – Clear and present danger
5
OTT threat is clear and present danger and operators do not have a well defined strategy to counter the threat of OTT players.

The big problem for the mobile industry…
Copyright Disruptive Analysis Ltd 2014
June 2014
0
200
400
600
800
1000
1200
1400
2012
2013
2014
2015
2016
2017
2018
2019
Voice telephony
VAS / digital
Internet/data access
SMS/MMS
$bn – Global Mobile Operator Revenue
?
New/partner services?
Voice/video-based?
Verticals?

Today’s Challenges of Operator
IT/Network Convergence
Improve and Enrich Customer Experience Rapid service launch and overall service performance
Address OTT competition The “dump pipe” / commoditization challenge
Leverage Big Data Data Analytics from OSS & BSS
Build Ecosystems - Digital Services and M2M/IoT To compensate for traditional services erosion
Stronger focus on Enterprise Solutions Cloud, ICT & managed services
Technology shift All-IP & 4G/LTE + pre 5G Data monetization
Lean & Mean – new paradigms for CAPEX and OPEX spendings New business models and managed services

Monumental Disruption by 2020
9 billion
people on
the planet
collaboration
will be
KEY
Internet is the
dominant
delivery
medium
mobile traffic
will grow
10X
Media
value chain
will forever
evolve
content
will grow
Richer
& bigger
agile
networks
will
thrive
IP traffic
will grow
3x
90% of the
world will be
covered by
MBB
78%
of all traffic
will be
Video

Global Mobile Data Traffic Growth: Mobile
Video Will Generate Three-Quarters by 2020
Cisco Forecasts 30.6 Exabytes per Month of Mobile Data Traffic by 2020

Global Mobile Traffic by Connection Type

LTE users – what’s important?
New opportunities, new challenges
69% say Internet access has to work at all times from everywhere 45% want to be rewarded based on usage history 40% would pay more for better download speeds
40% want to manage their plan in real-time
64% prefer access to data over voice in time of crisis

Global market developments
Customers would rather spend money for content than connectivity,
putting pressure on telcos – who need to develop innovative service
delivery capabilities
8
Customers would rather spend money for
content than connectivity, putting pressure on
telcos – who need to develop innovative service
delivery capabilities
Source: Arthur D. Little- Exane BNP 2012, PWC 2011
Telcos will have to establish an innovation
portfolio that enables them to start charging the
supply
side of content & applications
Customer Spending on
Telecom Services Is
Forecast to Decrease
Customer Spending on
OTT Applications Is
Forecast to Increase
Content & Application
Providers Are W illing to
Pay for Quality Content
Delivery
104 100 98 97
0
20
40
60
80
100
120 CAGR: -2.2%
2012 2013 2014 2015
16
22
26
12
0
5
10
15
20
25
30
CAGR +30%
2012 2013 2014 2015
6
5
4
3
2
1
0
2.8
CAGR +28%
2015
5.8
2014
4.5
2013
3.5
2012
CDN revenues in bn
USD
OTT app revenue in bn
EUR
Telco revenues in bn EUR
Share of Telecom
Services in Customer
Spending is Forecast
to Decrease
2%
88%
10%
Content & Application Providers
OTT Applications
Telecom services
75%
5%
20%
Customer
spending
in 2012
Customer
spending
in 2015
1 Global Trends & The Role of Telcos
Global market developments

APAC Telecom revenues: Increasing data
consumption will drive the revenues
3 Source: Frost & Sullivan analysis
2013
2018
2.8%
-0.6%
1.9%
2.7%
4.1%
4.7%
Others
North Asia
ANZ
South East Asia
India
China
In Billion USD CAGR (2013 -2018)
532.5 Billion
ANZ
High smartphone penetration of 72% drive mobile broadband and value-added services around digital content.
North Asia (Japan & Korea)
Marketing and promotions aimed at acquiring and upgrading subscribers to high value added service.
Others*
Low cost smartphones priced below US$80 driving data usage among first time users in emerging markets.
SE Asia
India
Growing ubiquity of smartphones and tablets in the second tier market bringing about mobile data growth.
1.0%
5.2%
Voice
Non-voiceKey demand drivers by region
China
Private consumption backed by steady economic growth offer a boost to spending on handheld devices and spending on mobile services.
Generous voice and data packages through bundling of service to reduce churn and drive steady growth.

Possible changes in the value chain also adds
a new level of uncertainty
Creation Packaging
Distribution Access Devices
End user Lots of legal and illegal free content sources
User owned devices are getting smarter and more connected
Distributor network providers still have a strong lock on large audiences
OTT players are separating the packaging from the distribution layer Content creators are experimenting with direct viewer access

Data is the key to creating value and competing
– in all parts of the media value chain
Advantage from data in media
Content
licensing/
creation
Content
discovery
personalisation
Churn
reduction
Improved ad
targeting
Targeted
promotions
Cross
selling/
ecommerce
Locational
relevance
Reduced
costs
Audience
experience
Revenue
growth

Mobile Operators Business Model Evolution
Number and structure of network parameter have become large and complex…
..e.g. UK telecoms are focused on finance fundamentals, innovative solutions,
improving user experience and keeping their competitive position stable…

Understand and anticipate the strategies of other
players in the value chain
Communication services business models
[Source: Analysys Mason, 2014]
Value of
communicati
on services
increasingly
co-opted
Increasing
overlap between
communications
services and
social networking
Operators’ standalone value
proposition currently looks weak
Player Core
business
Feature set Comms
Voice Messaging Video Location
Social business model
Hardware Indirect
Advertising Indirect
Advertising Indirect
Software
licensing Moving to indirect
Communication
services Direct
Content
distribution Indirect
MNOs Communication
services? Direct

DIGITAL ECONOMY to create top value
Operators must operate the 4 “complexity dials”
beside handling the continuously growing data traffic
Manufacture
Government
Utility
Finance
Home
Appliance /CPE
Telecommunications
Media
Healthcare
Self-driving
Mobile Finance
ecommerce
Convergent
Communications
Digital Health
Smart
Home
Social
Media
Digital Gov
Smart City
Retail
Terminal
view on Digital Economy, focus on Telecom Operator role Interdependence
Connectedness
Diversity
Adaptation&
Learning
Increase ARPx via personalized bundles
Smart connectivity drives diversity of smart devices
Market differentiation through selective partners Develop adjacent products and services
Become a service & platform enabler for B2B Value Fabric

Smart Pipe VAS Strategy!
Retention / fight churn!
Create new revenue models!
Create communication channels!
Acquire new users

New Evolving Ecosystem

New Service Development and
Service Delivery Innovation in
Mobile VAS and Multimedia
By ALI Saghaeian

Objectives
• How to Support various types of Digital Services
• Service Delivery Innovation in Mobile VAS and
Multimedia
• What is the Standard Ecosystem for Future
Communication Services
• Operators’ Value in New Service Development
• New Rules of Consumer Engagement and Service
Providers’ Perspective

Agenda
• Digital Transformation for Mobile Operators
• Most popular lines of Business by 2017
• New Service Development: Telecom Operators’ Value over
Time
• VoLTE and Voice over WiFi Evolution & Growth
• New Rules of Consumer Engagement by Developing New
Services
• Service Providers’ Perspective in Service Delivery Innovation
• Standard Ecosystem for future Comms Services

Digital Industry Transformation for Mobile
Operators

Market is Evolving and Convergence is a
Starting Point
•Highly fragmented market to be unified either by consolidation or partnerships
•Integration of siloed systems in a workflow
•Content portability across three screens
•Cloud access for content and collaboration
•Highly interactive and seamless consumer experiences
•Targeted content and advertising
Market Trends
Convergence
Consolidation
& Partnerships
Emerging Applications
Next Gen Interactive Content Services Peak activity between now and 2016 Peak activity 2015 to 2017 Peak activity 2017 to 2020
•Blurring the lines for service providers, content creators and device makers
•Need to make content available to customers anytime, anywhere, any device – on demand!

Supporting various types of Digital Services
Digital Services Provider Rich media •TV •Games •Music •Video Commerce and finance •Banking •Advertising •Payments IP communication •VoIP •Instant Messaging •Unified Communication Cloud •Personal services •Enterprise services Contextual •Social networks •Big data •Location based services M2M •Connected Car •Connected Home •Smart Grid •Security •... Health •Medical •Paramedical •Wellness and fit
Network
Voice
Data
Messaging M2M VAS

New Product Rollouts
› Currently mostly offering value-added services and roaming services
› New targets for increased rollout till 2017
› new technologies: 4G, WiFi, etc.
› new applications
Source: Telesperience Survey, 2015

New Service Development: Telecom
Operators’ Value over Time
CEBP: Communications Enabled Business Processes
Opportunity: Evolving the Enterprise and SMB value proposition
Value
Time
Telephony
(fixed and mobile)
Broadband
IP Communications
(eg. VoIP, Voice mail, audio conference )
Storage / hosting
(eg. Cloud-based)
Unified Communication & Collaboration
(eg. WebRTC, SIP <> Web interoperability)
Specialist apps
(eg. Vertical, CEBP)
Adapted from InformaTelcom& Media
Bandwidth, Voice, SMS
Declining Revenue
Own the Communication Experience
Increase Revenue

Hard Times for Telcos

Mobile is the ONLY Media Time on the Rise
US Consumer Media Consumption
5%
TV
Online
Radio
Print
Other
Mobile
45%
43%
42%
38%
37%
25%
26%
26%
26%
20%
18%
17%
16%
15%
14%
12%
11%
9%
8%
7%
6%
4%
3%
7%
8%
7%
5%
2%
4%
6%
9%
12%
20%
24%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
44%
2009
2010
2011
2012
2013
2014 2 Ali.Saghaeian [at] gmail.com

Time Spent on Mobile is Growing

Media Time spent per screen: Mobile on top!
Nigeria 193 mobile minut es 43% of media t ime
SA 127 mobile minut es
29%
K enya 174 mobile minut es
42%
Germany 137 mobile minut es
36%
Media Time spent per screen. Mobile is now the first screen across the globe, but especially in Africa.

Voice is Becoming Cool Again…
“Wi-Fi First”
Multi-Device
Multi-mode Communication
WebRTC, CaaS

VoIP, Wi-Fi calling, VoWiFi and RCS/VoLTE:
Voice is getting cheaper and richer
•Multi-device
•Enriched calling
•Extends reach
•Free in-app calls
VoIP Wi-Fi calling
VoWiFi
RCS/
VoLTE

VoLTE as a QoS Enabled Services:
VoLTE is a QoS enabled LTE service
•VoLTE driven by service improvements and/or operator optimisation.
•All mobile VoLTE launches to date include HD voice, implying that service evolution is a key driver.
•LTE QoS mechanisms underpin the service delivery for VoLTE.

VoLTE –Key Take Aways

Voice over WiFi Evolution (Monetizing VoLTE)
IMS Over Internet
IMS-based Mobility
UMA devices
IMS Client
Embedded VoLTE/VoWi-FiClients
Device Support for steering
GAN Controller
IMS Core
e ePDG, AAA
ANDSF
2G/3GWi-Fi
No Call Handover
LTE Wi-Fi
DRVCC
(Wi-Fi to CS)
LTE Wi-Fi
DRVCC
(Wi-Fi to CS)
RCS
2011
2014
Traffic Steering
RCS
Devices
Handovers
s
Services
Future
Legacy
First Gen
Next Gen
Next Gen+
UMA: Unlicensed Mobile Access

Rogers started down the VoLTE path 4 years ago
Shall be part of a company strategy, not just network/technology exercise
• Platform for new converged services and revenue streams : ViLTE , VoWiFi ,
RCS, IMS services roaming
• Service centralization / migration / introduction / retirement strategy
• Service Charging / rating strategy
Follow industry guidelines while aligned with your own company strategy
and requirements
• Interoperability is a key : inter-vendor , inter-domain , network – UE , UE – UE ,
operator to operator (non-roaming NNI) , operator to operator (roaming NNI)
Start testing as early as possible and test as much as possible
• Consider POC , Lab testing , Production testing , Drive testing and service
performance tuning
• Secure enough capable devices to be used as test tools for early test stages ,
while certifying devices and use them for later phases test activities
Develop necessary processes, tools and cross-organization skills to
support converged IP services
• Service Management Processes , Service KPIs , Platform KPIs
• Troubleshooting and diagnostic tools
• Train personnel , engage as early as possible in testing process

Rogers started down the VoLTE path 4 years ago (Cont’d)
Wi-Fi Calling Considerations
• Primary benefit is coverage extension of core wireless services using device native UI
• Location based charging is an important consideration as there is no concept of Wi-Fi
roaming
• OEM based crowd sourced location is most accurate but need a device agnostic solution
• SIM authentication provides best user experience but is not widely available from OEMs
• Off setting the cost of in building systems to provide coverage helps the business case
• Operator assisted 911 not available internationally
• Data blocking requires careful design consideration to avoid impacts to customers
CSFB will be needed for many years
• We do not have ubiquitous LTE coverage
• Carriers are deploying VoLTE at difference cadences
• Inbound roaming will require circuit switched considerations for many years
• In the interim, service consistency and parity across both domains remains a concern
Inter-carrier VoLTE - ViLTE
• Network to network interface is prerequisite
• IXP easier and faster to market, direct connect cheaper but resource intensive
• Not all Operators support ViLTE
• Capability exchange required to drive ViLTE uptake and lay foundation for rich messaging

Video Services Opportunity
•Ease of use
•Telepresence - immersive experience
•Community / network / intradomain based – voice/video/ IM “islands”
•Acceptance of new UIs in mass consumer domain
•Managed network services for QOS
•Initial interworking and standards bodies
•New delivery models – cloud, hosted
•First cost-effective business solutions
•Limited intradomain support
•Consumerization of IT
•SIP trunking
•Ubiquitous B2B B2C social net connectivity
•Web/mobile communications clients (WebRTC)
•Low cost services mass adoption w/ QOS
•Cloud enabled deployments
•Fat pipes: LTE rollouts and enterprise SIP trunking
Build
Deploy
Scale up and cost reductions
2012
Carriers, MNOs, and Over-the-Top / cloud SPs planning / readying video services
Moving out of Early Adopter phase

Multiscreen TV: New Rules of Consumer
Engagement
W atch-list
Personalized
Linear
On-Demand
Download
The New TV Experience
Lean Back
Morning at home
1-2 hours
TV, Tablet, Phone
Commute to work
1 hour
Phone
Commute home
1 hour
Phone
W ork
8-10 hours
Laptop, Tablet, Phone
Evening
4-6 hours
TV, other screens
24 midnight
12 noon
Multiscreen Daily Usage

Multiscreen TV: the Service Provider’s
Perspective

Multiscreen Service Platform

A Standard Ecosystem for future
Communication Services: WebRTC, RCS,
VoLTE & GSMA OneAPI
Address new verticals as
ehealth, e-commerce,
gaming, etc.
enables
RCS 5.x (IP
Address book, presence, IM, video/voice call)
Group chat, content sharing
Web-based RTC
voice & video
TV-based RTC
voice & video
Video
conferencing

World’s Best Practices and
Success Stories in Launching
Multimedia and Value Added Services
By ALI Saghaeian

Objectives
• Can we make sense of the OTT Video Market
• Success Stories for OTT-Telco Collaboration
• Learning about some of Operators' Key VAS
Offerings
• Cases of Operators with Rich Communication
Services
• Operators' Approach in emerging Vertical Markets
• World’s Best Practices in launching New Voice
Technologies

Agenda
• OTT Communications and APAC Players as
Innovators
• Success Stories for OTT-Telco Collaboration
• Redefining Mobile Calling and Modernizing Legacy
Touch-points
• Key VAS Offerings by Telecom Operators
• Best Practices for RCS-based Services
• Successful launches of VoLTE and VoWiFi
• Operators' Success across Vertical Markets

2015 has been an eventful year!
Jan Feb Mar Apr May Jun Jul Aug
Sep Oct Nov Dec
1. US venture-backed private
companies valued at over $1 billion
Amazon takes on Top Gear
presenters for global series
(July)
Netflix announces more
subscriber adds abroad
than in the US for the first
time
(January)
Twitter buys
Periscope for $87M
(March)
YouTube launches
YouTube Red.
More than half of
YouTube views now come
from mobile devices
(October)
“Now only US 12-17
year-olds watch 15 hours
of linear TV per week
(40% down from 2011)”
- Nielsen)
(September)
Disney launches
DisneyLife OTTv in UK
(October)
Snapchat launches
Discover – now with 15
publishers
(January)
Facebook launches
Mentions live streaming
(August)
$37bn wiped off US Media
stocks. Disney down 9%,
Time Warner down 9%,
21CF down 7%
(Netflix up 12% that week)
(5th August)
David Beckham launches
MyEye video streaming
(August)
Number of US
“Unicorns”
reaches 113
(August)
“Half of Netflix’s
Millennial users stream
on smartphone”-
Comscore
(January)
Snapchat opens
live streams from Mecca
during Ramadan –
earns great praise
(July)
Country
launches
“YouTube is the second
largest search engine in
the world”
(May)
Yahoo wins rights
to the first NFL
streaming-only game
(June)
PayPal IPOs with
valuation more than
Netflix, eBay or Twitter
(July)

OTT is a big world, its growing fast and its
fluid
SVOD AVOD UGC TVOD Linear OTT TV Everyw.

Can we make sense of the OTT video market?
Source: A.T. Kearney
Mass Digital MCN
Social Video Center Mass Aggregator
Thematic Addict Niche Premium
Semi-Premium Discovery
Specialist Community
Big Media Home
Hybrid Hub
Segment
Positioning
Mainstream
Targeted
(Niche/Verticals)
Experience
(Discovery/Social/Community)
Content
(Premium/Branded) Primary Usage Trigger

APAC OTT communication players are leaders in
innovation and offer a multi-feature platform
15 COMMUNICATION OTHERS
IM Voice (on-net) Voice
(off-net) Video chat Video sharing Social platform Games
Cloud storage Location based
Asia–Pacific WeChat   
   
  Line 
   
   
KakaoTalk   
   
 
W orldwide WhatsApp   
   
  Viber 
   
   
BBM

Larger, and un-concentrated, markets are
attracting a bigger fight among OTT players
for market share
21
W hich apps do consumers use in various markets 0%20%40%60%80%100%South KoreaMalaysiaIndonesiaPercentage of respondentsViberKakaoTal kWhatsAppLINEWeChatFacebookMessengerBBMSkype2.6

Starz Arabia and Du, September 2015
First significant OTT-telco collaboration.
Starz launched in MENA in April. Within six months, it has partnered, indicating
fertile territory for telco collaboration with international operators. Ovum expects
this to be the first of many in the coming years.
Du mobile customers have access to Starz HD content via the Starz app for $13
monthly, billed directly through their du line.
Sidesteps customer fears of using credit cards.

OTT Monetization: Case of Telefonica Spain

Enterprise OTT: Telefonica Mobile
Collaboration and Productivity

Redefining Mobile Calling
Case of Direct-Talk (in Brazil)
Talk Instantly
w/o Setup Delay
Whisper-in to Indicate Intent
Whisper-out, Shout or Answer Shout, Whisper or Text Invite Check Response, Run Huddle Customize Vertical Experience
Mimic Real-life Collaboration Join Later if Still Huddling
 Streamline Voice Interactions
 Enable Efficient, Predictable Behavior

Smart Dialler, Visual IVR: Modernize Legacy
Touch-points

Key VAS offerings by Telna (Telecom North
America)

Case of Vodafone Message+: RCS-based
service
Features
• Text, picture, voice
and video
messaging
• Emoticons and
emojis
• Location sharing
• Group messaging
• Status/message
read notification
Market
positioning
• Enhanced
messaging
experience
• RCS-based
alternative to third
party messaging
apps
Challenges
• Integrated
messaging not
available on iOS
• Limited availability
of Message+
natively on devices
and in markets Ali.Saghaeian [at] gmail.com

Libon is Orange’s Rich Communications Suite

Some early results for VoLTE/VoWiFi
VoLTE offers better voice quality and connects calls 20 times faster than the 3G average of five seconds. SKT is promoting VoLTE to improve customer experience and boost customer loyalty.
VoLTE: More than10% of T-Mobile calls run over VoLTE by March 2015; T-Mobile seeing better quality and better performance. Launches with iPhone and Samsung Galaxy helpful.
Wi-Fi Calling: reportedly 7mn users by March 2015
RCS: VoLTE the baseline for RCS; RCS coming “soon”
ViLTE: will be built on top of VoLTE
IMS infrastructure has allowed T-Mobile to build services on top of LTE.
Source: http://www.lightreading.com/mobile/4g-lte/qanda-the-castle-in-t-mobiles-lt e-netw ork-/d/d-id/714087?page_number=2
3 UK’s VoWiFi app, Three in Touch, had 1mn downloads in nine months since launch in mid-2014

T-Mobile US WiFi Calling

Case Study: T-Mobile USA VoWiFi Rate

AT&T earns new revenue with connected car
Concierge pays for pre-paid minutes
User pays connected device
User pays pre paid minutes and concierge fees
Consumer
AT&T
•AT&T’s VoLTE service includes cars
•OnStar used by GM:
•Hands free calls to and from car
•Automatic emergency call in accident
•Concierge services
•Theft alarm notification to car owner
•New revenue for AT&T from:
•$10/month connected car fee (to shared data plan)
•Pre-paid voice minutes
•Next step wearables...

Cloud Automation Service Model: Case of
Telecom Italia
Telecom Italia Digital Solutions
5
APPLICATIONS
Proprietary Services
(provider specific)
Integration Interfaces
CLOUD AUTOMATION PLATFORM
CLOUD OFFERING
UNIQUE TO CUSTOMER & RESELLERS
SIMPLIFIED CUSTOMER EXPERIENCE
Package A (Telco)
Package B (Cloud SaaS)
Package C (Infrastructure)
+
Syndicated or Hosted
Multi-tiered Reseller Support (Direct, VAR, Online,
Wholesale,…)
CRM
(web ads, telesales, lead generation,…)
SERVICE PROVISIONING
BUSINESS ORCHESTRATION
1 panel
1 bill
1 login
1 integrated experience
Marketplace
Vouchering System
Sales Automation Portal
AUTOMATED BILLING
Service Onboarding
Consulting & System Integration services
Solutions
Services
REPORTING
+
+
+
TIDS Cloud Automation Service Model

China Telecom earns new wholesale revenue
with virtual numbers
Didi buys the service from app developer
Developer buys virtual numbers and pays per call (APIs usage)
User pays the taxi service
Didi taxi
Developer
Consumer
70K APIs calls/day
70
2.5
Million users in 2 cities
Disposable virtual numbers launched using China Telecom’s APIs Alcatel-Lucent Rapport™ Didi Dache Taxis
58.com
real estate
Personal

Smart Home and Telcos: Operators’
Positioning
HOME AUTOMATION
MONITORED SECURITY
LINKED W ITH FIXED CONNECTION
LINKED W ITH MOBILE CONNECTION
OTT
Poland
France
Bundles? W ith fixed or mobile access? Or OTT?

Case Study: Remote Patient Monitoring
› Remote Patient Monitoring is a service provided to
AT&T, built on the Service Enablement platform
– Ericsson owns the roadmap and evolves the service together
with AT&T
– Vivify Health and Polycom are part of the service
– Ericsson provide the kits which includes a preconfigured tablet
with wireless sensors
› AT&T promote, provide and owns the commercial
ownership with care givers
– Since 2011 AT&T have their own Chief Medical Information
Officer (Geeta Nayyar)
– A 400+ strong sales force focusing entirely on AT&T’s solutions
for healthcare

Optimizing Strategies to
Stimulate Mobile VAS Usage and
Maximize Operators’ Revenues
By ALI Saghaeian

Objectives
• Operators’ VAS Positioning for different Segments
• Current status of Operators' Next-Gen Initiatives
• Operators and Flexible Partnership Options
• How to Stimulate Awareness and Usage of VAS
• Optimizing Strategies for VAS Bundling
• Strategies to Conquer and Secure Customers and
Protect Margins

Agenda
• Future Telecom Service Business Models
• Classifications for Value added services
• Revenue-Generating VAS services
• Operators’ Positioning for New Segments
• Stimulating Mobile VAS usage via Sponsored Data
• Positioning strategies for bundled services
• Partnerships with VAS providers
• Applying Lessons Learnt from the US Market

Future Telecom Service Business Models
3 types of Revenue Categories in Communications
Service
Revenues Communication as a Platform
Communication as a Sales/Service Channel
Direct Service Revenue
Termination / Interconnect Revenue
3rd party VAS sales/rev share
Customer Data Utilization*
Wholesale Access
In-service product/feature upselling/crosselling
Marketing Products with Platform as Sales/Service Channel
Tariff Upsell
Premium for additional Value on top of Access
Opportunity Values
Business Case Values

Classifications for Value added services
• ”Value added services” have existed
in telecommunications for decades
– E.g. “Speaking clock” was
launched in France, February
14th, 1933
• Mobile VAS services built on SMS
and WAP carriers have long been in
decline in mature markets, replaced by
services based on mobile data
• Services can be further classified into
transactional services and subscription
based services
• For subscription services, several
business models exist regarding
service branding and billing
Operator own services
White label 3rd party services
3rd party branded services on operator invoice
Co-marketed OTT services
True OTT services

Revenues not keeping pace with Traffic
Growth
Improve
Revenues by
offering:
• VoLTE
• RCS
• and Video
VAS
Revenues
Traffic
Revenues & Traffic Gap W idening
Revenue vs. Traffic Growth
Voice Era
Data Era Ali.Saghaeian [at] gmail.com

The Rules of Value Added Service Game are
Changing!

Revenue-Generating VAS services
– Video Services with RCS
– Video Adverts and Ring-Back Tones
– Messaging (record and playback)
– Multimedia Conferencing
– And many more….
Source:
Seeing through the Cloud
Senza Fili Consutling

Various strategies to conquer and secure
customers and protect margins

Operators’ Positioning for different Segments
Proffesional
Premium
Phone Type & Features
SMS Usage
Social Presence
Household
OTT Partnership + Emulation
Increase data revenue
Data Cons.
OTT Usage
Bundling + Emulate
(Telco OTT + SMS pack)
Maintain SMS revenue
Neutralize
(Big SMS + MMS Bundles)
Maintain SMS revenue
High
Low
Moderate
Bundling
(Large voice & data & sms bundle packages )
Data & SMS revenues in control
Youth

Awareness and usage of VAS
- 26%* of customers not aware of VAS that came with
the core service
- 68%* have never used the service!!!!
*Source: Frontier Communications

Stimulating Mobile VAS usage via Sponsored
Data
Consumer Data Charges
 80% of mobile users surveyed avoided using an app due to data limit concerns1
 71% of men and 62% of women would use more mobile data if it was sponsored1
 AT&T’s sponsored data service charges data from eligible services to the sponsor2
 Possible uses for sponsored data:
 Promote movie trailers or games
 Encourage browsing mobile shopping sites
 Provide sponsored access to products and services2
56
58
60
62
64
66
68
70
72
Men
Women
Use Data on Mobile More if Data W as Sponsored?1

This is happening………
• Multi-play: many operators getting involved in multi-play
• Impact on churn

Bundling value added services can support
higher prices for superfast broadband
• Price is the most
important criteria for
consumers, followed
by speed
• Customers are
reluctant to pay
premium for faster
speeds; however
there is traction for
superfast
broadband if it
includes value-
added services
Category Product or service
Service add-ons International calls packages International roaming Speed boost, additional data
Content and services Offer-specific content (video, audio) Gaming Cloud storage Anti-virus
Home security
Extending connectivity Multi-device (e.g. tablets) or shared data Multi-screen access Wi-Fi out-of-home access

Bundling & selling services with access
Positioning strategies for services bundled with access

Operators and Flexible Partnership Options
Operators in US are looking to adopt the "Freemium" model in their
markets defensively or partner to expand to new markets offensively

Partnerships with value added service
providers has shown effective
Partnering with value added service providers have been
successful way to promote uptake of LTE premium packages
Sample Entertainment package offerings
Operator
Value Added Offering
Operator
Value Added Offering
Vodafone Red 4G entertainment packs, Sky Sports 1 & 2, anywhere
VOD service where EE cover any mobile data you use to stream and download films
Vodafone is in the final stages of expanding its LTE offering to include Netflix
Premium LTE packages comes bundled with HBO & Spotify premium
O2 LTE subscribers can download exclusively games for free from Gameloft
6 month free access to premium package services

Operators are responding with a variety of
approaches
Strategy
Objectives
Examples
Block OTT services
Prevent OTT becoming mainstream
Potentially gain value from high-end bundles
Pakistan (Sindh province)
Stimulate usage
Defend legacy communication services
Buy time
SingTel
Launch ‘telco OTT’ services
Differentiate own services
‘Retain relevance’ as a communications provider
LG Uplus
Launch IMS-based services
Improve operator portfolio
‘Retain relevance’ as a communications provider
SK Telecom
Partner with OTT players
Appeal to attractive market segments
Support core data business with move to bundles
3 Hong Kong,
DiGi (Malaysia)
Globe Telecom

OTT and Operator Partnerships/Competition
Scenarios - UseCases Operators offering OTT Services Using Operator Key Assets to Support OTT Services
Partnership with Content providers (Music, TV and Movies
Sponsored data (Tollfree on Data)
Network selection for selected usage Direct Operator billing QoS for OTT
Telecom APIs

An example: OTT partnerships
Zero rating OTT video messaging
Monetization models
●“Try and buy” offers – upgrades or add-ons
●Sponsored data/revenue share
●VoLTE subscriber opts into 1-day free trial of OTT video messaging with HD quality
●Data usage is zero-rated for 24 hours, followed by add-on offer

Operator content and OTT partnerships

The current status of next-gen initiatives
varies considerably by region
29
Figure: Number of live next-generation communication service initiatives at June 2014, by region [Source: Analysys Mason, 2014] 0 10 20 30 40 50 Partnership Telco OTT RCS (IMS) VoLTE (IMS) Number of initiatives SSA MENA EMAP DVAP LATAM NA CEE WE

Collaboration between Telco and OTT
providers
More strategic collaboration and the movement from competing to new
market-creating business opportunities
of transformation
Revolutionary
Evolutionary
Tactical Area of Focus Strategic * Adapted from , N Venkataraman, Sloan Management
More strategic collaboration and the movement from competing to new market-creating business
opportunities

What are Operators doing on the App front?

Operators and OTT players can benefit in
many ways from each other and co-exist for
greater opportunities
31
Customer acquisition
Operator grade services
Operator billing
Local knowledge
Decreased churn
Customer acquisition
Revenue share
Consumer data
Benefits to OTT players
Benefits to operators

Applying Lessons Learnt from the Us Market
• Compelling content is the key differentiator
• Original series is the most credible way of building brand awareness and
differentiation
• Ability to secure long term exclusive deals on content is key to success
• Localization of product and delivery
• User friendly and robust multi lingual product interface
• Building content library keeping in mind the heterogeneity of markets
• Funding and capitalization
• Since the time taken to build the critical mass is long (as seen in Netflix and Hulu
Plus), there is need for stable funding
• Building partnerships
• Key to build scalable distribution network rather quickly
• Symbiotic relationship that can monetize the network by increased data usage &
spending
• Engaging and effective user experience
• Recommendation engine that facilitates content discovery and improves
engagement
• Data analytics
• Insights into usage habits and preferences of individuals, households, friends, and
consumer segments to tailor product design and offering
• Helps in personalization of service

Any Questions?

Driving Mobile VAS Adoption and
Creating a Sustainable VAS Proposition
in New Mobile Generations
By ALI Saghaeian

Objectives
• What are the transforming drivers in our industry
• How to effectively drive Mobile VAS Adoption
• How Video is Shaping the Telecom Industry
• Understanding Location Application Domains
• What are New Sales Potential via Value Added
Services
• How to build a solid VAS Proposition for Operators

Agenda
• Mobile VAS and Real time Contextual offers
• Go-To-Market Solution for Next Generation
Mobile Operators
• Superior Monetisation Potential and Freemium
Business Models
• Churn Reduction Potential via VAS Offering
• Video Content & MNO Business Models
• Spectrum of LBS applications for mobile operators
with extended Wi-Fi

Five drivers are transforming our industry
Intensifying M&A
and consolidation
Fierce competition from
traditional & OTT players
Changing customer
expectations
These
game-changers
require
service providers
to adopt
new strategies
Regulatory
interventionism
Technology & innovation
accelerating

Mobile VAS – Real time Contextual offers
• Flexible Offer design ,rule based promotions based on usage, loyalty, traffic and
events
• Event based Offer Management , Integrated with Real time Analytics
• Personalized offers based on subscriber historical data records
• Proactive Real time updates and notifications for upsell
Data Top Up Turbo Boost
Day special
offer Wi-Fi Add on Plan
Location based
Promotions
Data Passes
Data
Roaming Uses Cases that Substantially Increase Offer Uptake

Go-To-Market Solution for Next Generation
Mobile Operators
Launch Monetize
Personalize
•Target Customers & Market Positioning
• Decide business model
•Selecting the Right IT Platform
•Increase Revenue & ARPU
•Flexible Pricing
•Monetization Use Cases
•Enhanced Customer experience
•Value Added Services
•Mobile Self Care App
•Analytics to Personalize user experience
Go-To-Market Solution for Next Generation
To succeed, Operators must pursue a strategic approach, with next-generation BSS systems that leverage the opportunities of real-time interaction and commerce

Freemium Business Model
It is based on the up-sale of high-margin value-added and digital services
to a ‘low-cost’ freemium-acquired customer base
Basic Plan
Up-sell high margin Value Added Services
Usage Alert
Extended Warranty
Private Internet
Data Rollover
Security
Premium VIP Services
€ 1.99
€ 3.99
€ 7.99
€ 3.99
€ 2.99
€ 3.99
€ X.XX / month
X Mins
Y SMS
Z MBs
MONTHLY
€ 0.00 / month
X Mins
Y SMS
Z MBs
FREE
€ Y.YY / month
X Mins
Y SMS
Z MBs
YEARLY
Upgrade and up-sell implemented through sophisticated conversion platform
Upgrade to Subscriptions

Superior Monetisation Potential
Once a 'free' end-user has been acquired, the most important next step is
its conversion from a 'free' into a 'paying' user, resulting in the
monetization of the newly acquired base
Underlying technology platform drives paid conversion better than world's best Internet companies
"Free" converts to revenue generation as subs use more data and take up value-added services
35%
42%
35%
37%
41%
42%
47%
48%
49%
48%
48%
Q1-2013
Q2-2013
Q3-2013
Q4-2013
Q1-2014
Q2-2014
Q3-2014
Q4-2014
Q1-2015
Q2-2015
Q3E-2015
Traffic bundles, 36%
Pay as you go, 6%
Value Added Services, 29%
Free traffic, 29%
7%
8%
9%
10%
11%
14%
18%
23%
29%
32%
35%
Q1-2013
Q2-2013
Q3-2013
Q4-2013
Q1-2014
Q2-2014
Q3-2014
Q4-2014
Q1-2015
Q2-2015
Q3E-2015
Monthly conversion rate
(%)
Distribution of 'pay' services among customer base
(%)
VAS adoption rate
(%)
Required conversion rate to 'break-even': 30%
Current conversion rate: 48%
Once a 'free' end-user has been acquired, the most important next step is its conversion from a 'free' into a 'paying' user,
resulting in the monetization of the newly acquired base

New Sales Potential via Value Added Services
•VAS are typically used to boost new sales with a bundle model, i.e. customer receives the VAS for free for a certain period when taking a new subscription or porting from competitor
•Bundle can extend to full subscription contract period or be of shorter duration
•Bundle can be ”hard” or ”soft”
–In a hard bundle, the service is connected to all customers signing up for subscription
–In a soft bundle, the service is optional to customers signing up for subscription
•After bundle period, customers either retain the service and start paying standalone, or revert to the free version
Impact on new sales
New sales ARPU ~25 € ex VAT
Bundle cost 25-85% standalone price (~10 €/month incl. VAT)
Bundle validity vs. contract validity (3-24 months)
Bundle is hard or soft
Service retention rate
Average sales commission (taking into account online share)

Churn Reduction Potential via VAS Offering
Churn 20%
Loyalists 25%
Premium service penetration 6-24%
Churn prevented by VAS 20-50%
0,06-0,60 percentage points Will churn regardless Non-users Bargain hunters 75%
Premium service penetration 0%
Churn is not homogenous – your most loyal customers are most likely also to buy your value added services
Extremely sensitive to the nature of the service – how much effort the customer must put into changing the VAS provider

Value for money offers with Distinctive Value
Added Services
Case of PosteMobile (in Italy)
PosteMobile is positioned as the enabler of the mobile digitalization
with innovative, simple and secure services
4
Voice Messaging Internet Contents
Products Distinctive VAS
M-Banking
M-Payment
A Complete and Distinctive Offer
e-mail
Pay per use Browsing
Tariff Plan
Bundle Tariff
Plan
Customised
Options Social
Networks
M-Commerce
M-Postal Services
M-ticketing
News
Entertainment
Finance
Sports
Gossip
Pay per use
Tariff Plan
Bundle Tariff
Plan
Handsets
Smart phones
Internet Keys
Tablets
PCs
W hat’s next?
Mpos & Merchant
Services
M-Ticketing
(parking, transporta
tion, car&bike
sharing)
Mobile Banking
Mobile
Payment
Mobile
Money
Transfer
Mobile
Commerce
Mobile
Proximity Services
Access
(corporate,
m-government
highways)
Insurance
(house, health, car)

The strong adoption of Distinctive VAS is
confirmed by the high volume of transactions
Total transaction value of Distinctive VAS keeps growing since
PosteMobile’s launch, as well as the number of transactions
al Transaction Value Number of Transactions
29.7
Eur Mil Transactions, Mil
256
290
339 +17%
+20%
Total transaction value of Distinctive VAS keeps growing since PosteMobile’s launch, as well as the
number of transactions
Cumulative
18.7
23.3
24.6
2011 2012 2013 2014
198
2011 2012 2013 2014

The Global Media and Entertainment
industry: Opportunities for VAS Providers
TV subscriptions and licence fees
2019
2014
$ billions

Digital music: The potential for growth is
significant
Global music streaming revenue will exceed US$4bn in 2018
0
500
1000
1500
2000
2500 3000
3500
4000
4500
2013 2014
2015
2016 2017
2018
Global music streaming revenue ($USmn)

Global, consumer spending on digital music,
2014- 2018
• Mobile operators’ share in developed markets is very little – negligible - but can command a bigger share of the retail price of mobile formats - ring tones, ring back tones - in the less developed territories
6,258
6,520 6,755
6,891
7,057
2,692
3,174 3,557
3,837
4,035 1,230
1,212
1,233
1,292
1,399
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2014
2015
2016
2017
2018 Consumer spend ($m)
Downloads
Subscriptions and streaming*
Mobile

TV and Video over 4G
•LTE is a Video Distribution Network
•Innovation enables differentiation
•Differentiation drives monetisation

Video is Shaping the Telecom Industry
1 million minutes of video content will cross the network by 2018.
Globally, IP video traffic will be 79 percent of all IP traffic by 2018
Consumer VoD traffic will double by 2018.
Content delivery network traffic will deliver over half of all Internet video traffic by 2018.
IP Video and Mobile trends converge

Key Numbers in the Market
Global video traffic *Cisco
Online global video subscription revenue *Statista
Online video advertising spending in the U.S *DTVR
TV viewing done through digital streaming *gfk MRI
Consumers watch streaming video daily *Nielsen
Abandonment rate immediately with poor quality *Akamai
Abandonment rate with 5 sec startup delay *Akamai
Consumers are frustrated with video buffering *Research Now
Severely irritated when a video didn’t load quickly *Research Now
Users heart rate increase when buffering *Ericsson
25,000,000 TB
$10B
$6.5B
28%
43%
33%
50%
66%
21%
38%

Online Video Viewing Habits
Internet TV show and movie viewership continues to grow for adults
18-24 and 55+, but is relatively flat for other age groups
How often do you watch TV shows or movies on the internet?
(% of respondents who watch at least weekly)
Base: AllSource: 2012-2014 AV&Co. Surveys, 2015 AV&Co./EPIX Survey (n=3,461), AV&Co. analysis
62%
60%
45%
33%
24%
75%
72%
54%
37%
26%
81%
80%
68%
51%
36%
79%
82%
77%
66%
48%
89%
84%
73%
65%
60%
18-24
25-34
35-44
45-54
55+
2011
2012
2013
2014
2015

Barriers to Mobile Video Consumption
•The number one barrier to usage is still ‘Data Shock’
•Adaptive streaming makes it difficult to explain what an hour of TV ‘costs’
•W e need communicate the maximumamount of data used for programmes
•W e can do this for most of the mainstream UK broadcasters
•Do we need to start to think about charging in duration not MB/GB?
•What challenges would that bring?
Consumer barriers to watching mobile video
Data costs too high
Content costs too high
Low internet speed
Poor Coverage
Device limitations
Accessing Content too difficult
Quality poor
Content poor

Mobile Device Usage in Online Video Services
Consumers who use online video services on a smartphone or tablet do
so primarily to watch short clips they can only find online or TV series
Short clips I can only find online
TV series
Music videos
News
Movies
TV series I can only find online
Short shows I can only find online
Live sports
Game shows, Reality TV cooking, etc
How often do you watch the following types of content on a mobile device (e.g., smartphone, tablet)?
(% of respondents who watch video on mobile devices at least weekly)

Video Content & MNO Video Business
Models Mandates
A Flexible Set of Edge-based Delivery Strategies
Mobile-Edge Delivery Strategy
OTT Cooperative Content Delivery
(Billing-Based Rev. Share Agreement)
OTT Encrypted Content Delivery
(Cooperative or Non-Cooperative)
Video Content Type
+ Session Encryption
(e.g. SSL)
+ Content Encryption
(e.g DRM)
Managed Content Delivery (MNO owned Quad-Play) OTT Content provider + CDN
+ Session Encryption
(e.g. SSL)
OTT Encrypted Content Delivery
(Key Sharing Agreement)
OTT Hosted Content Delivery
(Edge-based CDN Hosts: OTT SW + Content)
MNO Video Strategy

Location is a data play, not just a service
enabler

Location Application Domains: An expanding
remit across many domains

Location Based Services Ready for Growth
30% CAGR between 2014-19 Source: Convergence Catalyst 74% Of US smartphone owners use LBS Source: Pew Research $43 B Market Size By 2019 Source: Juniper Research How W ill You Capture the Opportunity? Location Based Services Ready for Growth Guest Wi-Fi Navigation Analytics Push Notification Staffing & Asset Management

Spectrum of LBS applications for mobile
operators with extended Wi-Fi

Paradigm Shift: A Buying Led Approach
Order
Control
Care
International Roaming Pack
200 MB / wk
European Roaming Pack
500 MB / wk
Off-Peak Booster
Unlimited Fast Lane data access during off-peak hours
$3 for 30 days (subject to F.U.P)
Tablet Pack
2G of Standard+ Data
$6 / month
Social Media Pack
Unlimited access to your 5 favourite socials
$2 / month
Offer for One
Create your own personalized plan that’s just for you!
Gaming Pack
Unlimited Fast Lane access to your 5 favourite online games
$1 / hour
SpendControl+
Set your own daily/weekl/monthly text notifications
$3 / month
Navigation Pack
Unlimited GPS access per day (+ appropriate QoS)
$1.5 / day
Share Everything
Unlimited TALK Unlimited TEXT Shareable DATA On up to 10 devices
Starting from $100 / month
Fair Usage
1 GB Fast Lane data & usage notifications. Additional usage @ normal lane speed. Purchase of additional Fast Lane data bundles
Concert Replay
3 day Fast Lane concert replay streaming no other data charges during off-peak
$5 for 3 days

Exploring Mobile Apps Categories
and Successful Mobile VAS
and Multimedia Applications
By ALI Saghaeian

Objectives
• What are different Mobile App Categories &
Functions
• Reviewing Successful Mobile VAS and Multimedia
Applications
• How to boost the consumption and increase
revenue monetization streams
• What APIs can Telcos offer
• Which Enterprise Apps are being Deployed/Used
• Pros and Cons for Providing Mobile Apps

Agenda
• Communications as an important part of
smartphone usage
• Mobile data: traffic share by application type
• Operators’ Mobile App Functions
• Boosting consumption and increasing revenue
monetization streams
• Top APIs operators could implement
• Case Study: Network API Platform
• Making the most of enterprise apps

Communications remains an important part of
smartphone usage... but its role is diminishing
Average time per day spent using various functions and apps on smartphones
[Analysys Mason and Nielsen, 2014]

Mobile data: traffic share by application type
In 2014 video already represented almost half of the whole data traffic,
and for 2020 the percentage share is expected to increment
Browsing and audio do not affect much on the network traffic and social
networks are expected to keep the same traffic share (around 15%)

Consumers continue to use apps
Penetration of top five communications apps in selected countries (smartphone owners only),
July/August 2015
Source: Analysys Mason - 2015
France Germany Spain UK USA South Korea
Skype Messenger WhatsApp SnapChat iMessage

Composition of online communities changes
with penetration
Source: Analysys Mason - 2015
Average number of comms apps used, by age, Europe/USA/S Korea
Indicative usage of different comms apps in Spain Questions: various; n = 8270 0 0.51 1.52 2.53 3.518–24 25–34 35–44 45–54 55–64 65+ Average number of apps WhatsApp App communities in Spain 29%23% 33%Skype Facebook Messenger Snap Chat iMessage Viber LINE

Operators’ Mobile App Functions
Source: Openet, 2015

Operators’ Mobile App Functions (Continued)
Source: Openet, 2015

Operators should be looking for growth in
consumer attention and identifying
service/partnership opportunities
Penetration of apps by category, and corresponding growth between 2011 and 2013;(2011: n =1079; 2013:n =1596)
Social
networking
Productivity
Gaming
TV and
video
Commerce
Music
Financial
services
Health
Addressable market growth
Percentage of panellists
Penetration: 2011 2013 Growth

Create new opportunities to boost the consumption
and increase revenue monetization streams
Case of Telecom Malaysia

Can operators leverage the native interface
as a platform?
Time spent on smartphones by interface type [Source: Analysys Mason and Nielsen, 2015]
SK Telecom’s T-Phone 2.0 service
• Taxi apps
• Job search
• Used goods
• Restaurant apps
Third-party APIs
Internal APIs
• Real-time usage
• Directory services
Enhanced dialler experience
• Group calling
• Video calling
• Improved address book
• Safe-call feature
• Message pop-up (dialling)
Interface
Native dialler/SMS Device functions
Browser
Apps

Operator APIs
9
App/Service Portfolio
Enable operators to exploit core Telco assets better.

What APIs can Telcos offer?
Capabilities Opportunities
Telco API
internal systems
billing, rating, charging
lower operational costs
payment services
calling identity and security
location
customer insight
customer profile
cloud call centers
enterprise cloud
messaging
device
CRM
VAS
personalization
hypervoice
communication enabled
business processes
directory fraud management

Top APIs operators could implement
Telco Network APIs market is expected to account for $157 Billion in global
revenues worldwide by 2018 growing at a CAGR of 38% between 2013 and
2018
Source: MindCommerce: Public advertisement for “Telecom Network API Marketplace: Strategy, Ecosystem, Players and Forecasts 2013-2018”
Click to call, meet me at my number, alerting, etc
Payment across goods & services
USSD in developing markets
Advertising with user profile under customer control
Presence & location enabled call centers
Number provisioning
Messaging enabled customer service & business
processes
Other (Directory services, IVR, M2M, etc)

Helping developers deliver the right
applications on the right device to over 100
Million customers
Case of AT&T Developer Program
•Online API Platform, AT&T ARO, Development Resources, Device Specs, SDK and Tools.
•Community and Support Live Chat, Forums, Webcast, Tech Support
•Events and Contests Developer Summit, Hackathons, Contests, Fun events
Access to all site information $99 gives you full access to all APIs , and One Million API-points per month. Example: 750K Speech API transactions per month without any additional cost. Diagnosis tools that help you efficiently implement apps that run faster. Sample code and Toolkits that simplify the integration, and speed-up your development. Development Tools Tons of Resources
Free Membership

Case Study: AT&T API Platform
The API Platform exposes core capabilities through RESTful public APIs
•Free 90-day trial
•Competitive pricing: Annual fee of $99 grants access to all APIs on the platform and 1,000,000 calls per month.
–After 1,000,000 API calls a month, pay at the rate of only a penny per call
•Easy, self-service access to RESTful APIs
•Extensive documentation
•Tools and SDKs to ease development for HTML5 and native apps
•Sample apps and code
© 2013 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. 5 API CATALOG
•Speech (Speech-to-Text & Text-to-Speech)
•SMS & MMS Messaging
•Payment (with AT&T billing)
•Location
•Device Capabilities
•In-app Messaging from Mobile Number
•Advertising
•Call Management (Beta)
IN ALPHA TESTING
•Call Management with WebRTC
•Account Details
Test the Alpha APIs at https://auth.tfoundry.com/sign_in

Success Story: In-App Messaging from Mobile
Number (IMMN)
Send texts from the subscriber’s AT&T mobile number – and
keep users engaged in your app
No other U.S. carrier offers the ability to send SMS and MMS from a 3rd party site
to the mobile number of the sender – and have the message sent from the
subscriber’s mobile number.

TELUS API Offering: 75+ APIs and growing

Overview of Orange API offers AMEA
priorities for 2015
Evolution of Orange Money into a Digital payment solution open to a selection of partners
Orange Money API
Evolution of Bulk SMS into a self-service, multi-country product allowing developers to easily send SMS to all Orange countries
SMS A2P API
Evolution of Premium SMS into a Digital payment solution, directly connected to Prepaid and Postpaid Orange accounts
Carrier Billing API
Multi-country USSD shop , open to partner services on a dedicated short code in a Kiosk model, and accessible through APIs
USSD Shop API

Open API Hackathon – ideas summed up:
Case of Orange

Development of new services: Case of
Orange
34
Connected
devices
Internet of
Machines
Internet of
Objects
IoT API
Data Operator API
IoT API
Data Operator API Data Operator API
Orange is working on a data powered open platform for the development of
new services for enterprises and the mass market : Orange Datavenue
Smart Data Aggregation Platform
Enterprises Data Open Data
Data
Data Cloud Storage
Data Connectors
Privacy
Authentication
User Profile
Rules Management B2B
B2B2C
Developers
IOT data aggregation platform
Liveobjects
Flexible Data
Secured & isolated environments

Telecom Italia: Network API Platform

Service Exposure: APIs catalog & billing
models
Telecom Italia’s update on Network API Platform

Making the most of enterprise apps:
managing the full lifecycle
Deploy
Monitor
Fix
Analyze
Update / retire
Users
Time
Frequency
Activities
Crashes
Bugs
Tack usage in real time
Push OTA
Discover in enterprise app store
Apply learning
Wipe
Off-board

Which Enterprise Apps are being Deployed/Used
within Asian Telecom Operators?
* Doc sharing and E-mail are viewed as critical
apps accessed from tablets/smartphones
Web Conferencing
CRM and Business Intelligence
Social Media
Collaboration
Video Conferencing
Voice Based Apps (Softphones)
Email
Documents and File Sharing

How Many Enterprise Mobile Applications are
being Deployed by Asian Telecom Operators?
85% deploy at least 1 app; 38% deploy between 1 to 10 apps
None
One to five
apps
Six to 10
apps
11 to 19
apps
20 to 49
apps
50 or more
apps
Don’t know
Current Apps
New Apps During Next 12 months

Who Are the Users of Enterprise Mobile Apps?
90% of all users have access to mobile apps, although it started with Office
management, it has spread to Sales and delivery personal
Office
management
(e.g. personnel
in managerial
or executive
roles)
Mainstream
office workers
(e.g. analysts,
professionals,
administration,
etc.)
Field sales
personnel
Field service or
delivery
personnel
Other

Pros and Cons for Providing Mobile Apps to
Operators’ Employees
Companies deploy mobile apps for efficiency and productivity gains.
The strongest adoption barrier continues to be data security worries.
More efficient business
processes
More productive employees
To keep up with our
competition
To establish a competitive
advantage
To make more money
Results in cost savings
To enhance customer
engagement
Enables more employee
collaboration
More satisfied employees
Data security concerns
High cost
Back-office integration
concerns
No real business need
Lack of executive support
Unclear ROI
Lack of internal resources
Resources toselect app(s)
Mobile device issues
Worker resistance

Strategies for Monetizing the
Mobile Content, Services and
Applications in 4G and 4.5G Market
By ALI Saghaeian

Objectives
• How to Monetize Mobile Content, Services and Apps
• What are the Key Monetization Strategies for
Operators
• Exploring OTT Monetization Opportunities and
Services
• How to Manage between Revenue Growth and Cost
Optimization
• Exploiting Monetization Opportunities in 4G & 4.5G
• Learning about recent initiatives in Data Monetization

Agenda
• Issues and Challenges in Telecom: Exploiting
Monetization Opportunities
• Key Monetization Strategies & Challenges
• Increase Revenue Streams from OTT Services
• Broad Set of Monetization Use Cases
• Monetization Efforts With Mobile Network
Geolocation
• Building New Business Model for Operators
• LTE as the key opportunity for monetization

Issues and Challenges in Telecom: Exploiting
Monetization Opportunities

Key Monetization Strategies
Pricing and Precise Marketing.
Network Consolidation and cost
optimization
Own the user experience
Combating the OTT threat
Shifting consumer segmentation
based on new era
More connected Devices / Users

Mobile Service Monetization Challenges
• Fragmented
business systems,
processes,
channels
• Inconsistent view
of customer types
(consumer,
enterprise,
prepaid,
postpaid)
Margins
Operational
Efficiency
ROI
Revenue
Growth
Data Revenue
Product
Innovation
Data OTT Competition

Enable Services the Market Demands
Increase Revenue Streams from OTT Services
•Tiered Pricing
•User, Device, & Application Aware
QoS Enabled Smart Offers
$$$
$$
$
Intelligent Fair Usage Control
Lifestyle offers
Tablet Pack
2G of Standard+ Data Off-Peak Booster Unlimited Fast Lane data access during off-peak hours
Social Network Pack
Unlimited access to your 5 favorite socials
Video Pack
Fast Lane access to YouTube and Netflix
International Roam ing Pack
200 MB / wk
Spend Control +
Set your own daily/weekly/monthly text notifications
Navigation Pack
Unlimited GPS access per day (+ appropriate QoS)

New Data Business Opportunities with
Multiple Monetization Approaches

Where will the Money Flow?
• Key challenge is increasing OTT service reach, quality and
profitability, driven by competitive pressure & consumer demand
• Lack of online video monetization by smaller players creates
negative circle
• Higher broadband speeds, better targeted ads and device-
centric experiences, and cloud are more urgent priorities
Content Management Content Protection Content Transformation Content Monetization

Monetization is much more than just content
Quality of Experience
Quality of Content
Content may be the most
visible component of the
Success Equation
Ignoring Quality of
Experience can put your
OTT offering in peril
Success = Quality of Content x Quality of Experience

How to Monetize?
Effective Lead / Opportunity Mgmt 360o view of Subscriber Centralized Product Catalog Real time credit control
Cloud based Billing
Convergent platform
Real time promotions
Integrated Policy & Charging
Integrated CRM & Lead Management Centralized view of subscriber usage, profile & plan Minimize CapEx & support all prepaid, postpaid & hybrid accounts from a single real-time converged platform for voice, SMS & data Single SPR and single point for metering
Eliminate bill shock and bad debt
Single view of all plans created, Plan rationalization with support for multiple business models. Launch new plans in a day
Cloud based hosted model for quick roll out of new services
Create new promotional plans in real time independent of MVNE
Subscriber Partner Offers Contextual Offers Add On Packages & Promotional Plans
Loyalty programs
Service bundles
Subscriber segmentation
Triple Play
Data Monetization IOT / M2M Key Monetization Functionalities Monetization Use Cases

Broad Set of Monetization Use Cases

Managing between Revenue Growth and
Cost Optimization
•Optimize Network Resources
–Control usage based on revenue
model
–Unified service delivery
architecture
•Enhance Subscriber
Experience
–Enhance level of feedback
–Universal user experience
regardless of access medium
•Create Revenue Opportunities
–Simplify the creation and
delivery of new services and
promotion
–Accelerate the introduction of
new business models
Machine to Machine Services Grow Revenue
Optimize
Cost Cloud Services
Over-the-Top Apps
Mobile Video
Social Networks
Fair Use & Congestion Management
Service Tiers Bandwidth on Demand
Parental Controls Flexible Bill-Shock Prevention

Building New Business Model: Redefine
Operators’ Subscriber
Users
Operators OTTs
• Telco Capability Centric:
 Experience SLA
 Network asset
 Network slice
MBB Open and
Interconnect
Massive Connections
Operators
OTTs
• APP Centric
• Experience Centric
• Connection Centric
• Traffic Centric
• Voice Centric
Capability Monetization
Verticals/IoT
Applications
SLA: Service-Level Agreement

Digital Content Explosion and Convergence
are Driving Industry Growth
Content
Devices
Networks
Broadcasters
Media Production
Enterprise Content
Studios
User Generated
Gaming Companies
Advertisers
Mobile Operators
Virtual Operators
Broadband Operators
Internet Service Providers
Television Carriers
Interactive, targeted, personalized on-demand content & services

What this means for Monetizing your Digital
Business
DIGITAL
OPERATING
MODEL
CUSTOMER
EXPERIENCE
NEW
OUTCOMES
With customers, workforce, suppliers,
through objects, places, spaces,
assets, services
Leadership, ambition,
creativity, innovation,
skills, practice, organization,
products & services
Performance, Stakeholders,
competitiveness, sustainability
governance, reliability, trust,
security, compliance
Creating the
Digital Vision
Enabling the
Value experience
Building growth
and return on investment
Modern Digital Business

Need to open new revenue streams
What will be the
most lucrative
new revenue
streams next
year?

OTT Monetization Opportunities
Going Off-Net to Increase Reach
Creating Targeted and
Bundled OTT Offerings
Upselling New and Existing Content

OTT Monetization: Offered Services
Specific LiveTV & VOD packages
nPVR & VOD
Live & VOD, OTT VOD Service,
Offline access
Smart device & VOD
Off-net market reach
VOD marketplace, 4K content,
offline access

Personalize the experience
34% would pay more
Self-change service plans
26% would pay more
Data roll-over 32% would pay more Source: Hot Telecom, 2015
4G users would pay more for these features

LTE is the industry opportunity for
monetisation

The Key to Monetizing LTE
•New Business Models
–Tiered/Usage based services
–OTT/Cloud/M2M
–Flexibility and Agility are Key
•Technology Evolution
–SS7/LTE/IMS interworking
–Network APIs
•Device Evolution
–Smartphones/Tablets/eReaders
–eHealth/Telemetry/Smart appliances

LTE offers a number of strategic pricing
options for monetization of LTE
Pricing of offerings is key upfront, ability to offer LTE at a premium to 3G depends on
2
First movers of LTE
Market challengers (2nd launcher)
Sample Entertainment package offerings
Operator
Price Offering
Operator
Price Offering Plan XS S M L
XL
Bandwidth (Mbps) 0.2 1 7.2 21
100
Price (CHF/month) 59 75 99 129
169

Will LTE users pay more for quality?
Information Security Level 1 – Confidential
© 2015 – Proprietary and Confidential Information of Amdocs
6
QoE drives retention
QoE is a revenue generator
How many would pay more? 40%
for faster download speed
47%
for better data coverage
How many would move and why?
35%
for faster download speed 41% for better data coverage

Need to invest in Quality
Better
QoE
More usage og Application&services Business Development Quality enhance exploitation Users with “buffer free experience”
+226% of video exploitation
“Less than 2s to start video
x4 probability that user will continue to watch the video
Maximize «viewer experience»
+20% revenues for Live Video Provider
“Lost time” Cost (^)
20B$ extimate for 2013- 2017 period

What’s Your Data Worth?
Subscriber Data
CRM, Lifetime value

WHO
Mobile Usage Data
Apps, Search, Browsing

WHAT
Geolocation Data
Position, Pattern

WHERE
The combination of 3 creates greater value

Monetization Efforts With Mobile Network
Geolocation

Monetising data – recent initiatives
Mobile financial services gaining momentum, although Kenyan M-
Pesa success yet to be replicated
GT Bank and Etisalat partner for savings account – May 2015
Nigeria GT Bank and Etisalat have partnered to introduce GTEasySavers, a savings account designed to enable “underbanked” and “unbanked” individuals to achieve their financial goals while operating a regular bank account via their mobile phones. Etisalat subscribers can open a GTEasySavers account by dialing a USSD short code.
Moov enables MFS transactions between 4 West African units – March 2015
Mobile operator Moov has enabled cross-border MFS transactions between Cote d’Ivoire, Benin, Togo, and Niger. Branded “Flooz”, the MFS platform allows users to send and receive up to XOF750,000 ($1,200) per day.
Orange and Airtel partner for cross border MFS in West Africa – March 2015
Orange and Airtel have enabled cross border MFS usage between Cote d'Ivoire and Burkina Faso. This partnership builds on the existing “Orange Money International Transfer” offer, which enables Orange Money customers based in Senegal, Cote d'Ivoire and Mali to carry out cross-border money transfers. Since its introduction in July 2013, the service has been a considerable success with over 200,000 users to date. Airtel Burkina Faso and MTN Cote d’Ivoire had reached a similar agreement in 2Q14.

MTN launches pan-African IoT platform (May 2015) MTN Business rolled out a
pan-African Internet of Things (IoT) platform, providing enterprises with greater
control and advanced management features for their connected devices and SIM
cards. The launch also sees the introduction of a global M2M SIM card, which gives
customers the same rate for M2M activity across MTN’s footprint in Africa. The
new IoT platform is now live in South Africa, with other MTN operating countries
set to follow over the next 12 months.

Spectranet and iRoko partner for
VOD on LTE
Nigerian ISP Spectranet has
partnered with online video service
provider iRoko TV to enable VOD on
Spectranet’s LTE network. As an
introductory offer, existing and new
Spectranet LTE customers will get 30
days free viewing and downloading
on iRoko platform. Subscribers can
access iRoko content by browsing
directly on the provider’s website or
by downloading iRoko’s Android app.
According to Ovum, Spectranet had
a 24% share of the Nigerian LTE
market, estimated at over 400,000
subscribers in 1Q15.

Monetization and service delivery : engagement is
driven by providing relevant and personalized offers
• Customer analytics enriched by real-time
‘trigger’ automates relevant offer to be made
direct to customer’s device
• Using Facebook with no data plan – provide
free Facebook pass – then upsell data
• Roaming with data switched off – upsell
roaming pass
• Watches a lot of Netflix or listening to lots of
streaming music – upsell to next tier that has
bundled TV or Spotify premium next time they
start listening to music
• Watches a lot of videos and stating to watch a
video– offer higher speed tier for HD viewing
• Poor network experience – send apology, or
suggest trying video at off peak time with
discounted rate, or re-allocate at a higher speed
for 1 week (if valuable customer)

Value Creation and Customer Experience
Management in Mobile VAS
for an Enhanced Customer Journey
By ALI Saghaeian

Objectives
• How to Map the Customer Experience and create
Value
• What are the main Objectives for Customer
Experience Management (CEM)
• Comparing Traditional Customer Service vs. Next
Gen Proactive Support
• Looking into economic principles for Superior
Customer Experience
• Understanding Customer Issues and moving through
Customer’s Journey

Agenda
• The primacy of the customer experience is taking
root
• Mapping the Customer Experience
• Customer experience as an ecosystem play
• Top business and process challenges for customer
experience programs
• Deepen engagement over the lifecycle of the
customer
• Importance of Self Service in better customer
experience

The primacy of the customer experience is
taking root
Progress towards digital transformation
Source: Ovum | TMT intelligence | informa
13.3%
14.0%
15.1%
15.2%
22.8%
27.1%
28.1%
26.9%
30.0%
28.8%
33.7%
33.4%
35.7%
35.3%
32.3%
27.8%
30.2%
29.8%
29.3%
31.3%
20.0%
16.8%
17.5%
18.2%
14.9%
15.9%
12.9%
11.4%
7.2%
7.8%
7.5%
10.2%
6.5%
7.2%
6.2%
5.0%
5.8%
4.0%
3.5%
4.9%
5.1%
4.4%
2.8%
3.8%
0% 10% 20% 30% 40% 50% 60% 70% 80%
90% 100%
Transform IT capability
Modernize legacy systems
Build the modern workplace
Adopt cloud services
Exploit business information
Connect the physical world
Manage security, identity and privacy
Enhance customer experience
Percentage of respondents
Progress towards digital transformation
Complete Well advanced In progress Early
stages Not started Not relevant

Mapping the experience
W eb
IVR
Live Chat
Email
Agent Events
Social Media
Surveys Feedback
Calls
Customer Service
Operations
Sales
Management
Marketing Product Mgt
Customer Experience
Human Resources
Mobile Applications

Why bother engaging with YOUR customers?
• If you don’t, your competition will!
• Who will be your most fierce competition next year?

The way we engage our customers needs to
change as a result of the shift to digital
Empowered and
demanding:
personalised content
and differentiated
experiences are key
‘Always on’: have
constant access to
news and
information
Increasing their
expectations: companies
must engage digitally
Pioneers:
embracing new
technology at high
speed
Networking: using digital
tools and platforms to build
cross-border networks
Today’s
customers
are...
Ambitious: keen to
harness the power
of digital to further
their careers and
development

Customer Service Vs Customer Experience
Customer Service Customer Experience
Happens only when there is a
problem
Overall perception
A point The line
What the organization does What the customer thinks
An event A feeling
Covers 3 marketing P’s:
people, physical evidence,
process
Covers 7 marketing P’s:
people, physical evidence,
process, product, price,
distribution, promotion
Transactional and quantifiable Subjective and experiential

Customer experience is an eco-system play
Operator's Network
Radio network, backhaul,
coverage etc
Subscribers
Subscriber usage
behaviour
and Personalization
Devices
Device behaviour, quality,
battery performance
Environment
Location, weather conditions
and other external factors
Applications
App behaviour, performance
Operating System
Operating system
stability, usability etc

The main objectives for Customer Experience
Management (CEM) are:
6 Improving operational efficiency and quality
•Understand issues and challenges
•Use SQM as a key part to ensure operational quality levels
•Allow proactive and “real-time” decision making
Enhancing customer touch points
•Integrate different metrics to allow a holistic customer view
•Provide a seamless experience across the different touch points
•Understand and manage the customer journey
3.Supporting differentiation & new business models
•Differentiation and monetization support
•Consulting and libraries of actions/ use cases/ experience packages
•Data and profile brokering

Traditional customer service vs. Next Gen
proactive support
Interaction type
Traditional reactive post-sales
customer interactions
Pro-active pre- and post-sales customer
interactions
Channels
Inbound telephone customer care
Inbound service-to-sales
Outbound telesales
Email
Pro-active web chat
Click-to-call
Chat-to-Voice escalation
Interaction
triggers
None
Individual customer journeys
Behavioral attributes
Purchase and experience history
Value at stake
Customer lifecycle attributes
Approach
“Waiting for the phone to ring” or email
to come in
“Reaching out to customers in need, targeted
and contextualized”
Cost & ROI
Cost per minute, regardless of sales
conversion
Unit based and variable compensation model
ensures positive ROI

Customer Experience Management (CEM) is a
key milestone for Telecom Operators
Please rank in order of importance the operational issues that communications service
providers must address in the next three years

Understand your current state and aim for
the next level of maturity
Customer-Adaptive
CEO, board level sponsorship, enterprise-wide commitment Focused
on:
• New business
models
• Continuous
innovation
• Anticipating
the future
• Disruptive
force
Customer Experience
Coherence as an organisation
Omnichannel CX
CEO, board level sponsorship, enterprise-wide commitment
• Customer
journey’s
mapped
• Integrated
channels
• Context 360
Multichannel
Basic integration between systems but siloed
mentality and product/cost driven
Departmental
Departmental silos,
Fragmented CX
Class leading

Organizations are largely disconnected from
their customers, putting their futures at risk
Critical areas of weakness identified
 Leadership ‒ Slow decision-making, suggesting
command-and-control is still prevalent
 Partially engaged workforce ‒ Lack of
empowerment or concern for their aspirations
 Weak sensing capabilities ‒ Largely flying blind as
lack both insight and foresight
 Fragmented/disjointed customer experience ‒
Insufficient to meet rising customer expectations of
what a good experience should be – a bolt on
approach to technology
 Innovation is haphazard ‒ No disciplined broad-
based innovation management capability in place =
hostage to fortune
 Poorly aligned, overly complex & disconnected
mission critical processes ‒ Negative impact on
productivity and efficiency & critical information
flows
 Lack an adaptive enterprise architecture ‒ Held
back by legacy systems and ad hoc IT approaches.
User experience is not consumer-grade level

Consumers expect a personalized experience
1 - Teradata & Celebrus Research 2015.
2 - Location Score Index (Q1 2025) Thinknear via GPS Business News
Poor Monetization Efforts can be Damaging
1. Teradata & Celebrus Research 2015.
2. Accenture Personalization Survey 2015
Nearly 60% of consumers want
real-time promotions and offers.2
63% of consumers across every age group like to receive personalized offers.1
Only 37% of geo-tagged mobile ad impressions are within 100 meters of the user’s true real-time location.2
77% say they would take action to poorly personalized experiences.1

Customer experience – various sources of
complexity can make solutions difficult
Complexity of
products
Pricing complexity
Switching
processes
Contractual
restrictions on
ability to switch
Imbalance between
parties’ rights &
obligations
Bundled services
Importance of
services
The complexity of products and speed of change means that consumers may find it difficult
to understand the products they are buying and to compare them in order to reach a
purchasing decision.
Pricing complexity can make choosing the best deal difficult.
These can lead to poor consumer experiences and result in harm to consumers who attempt
to switch (and/or port their number). This can be a feature in mobile markets where there are
low incentives on CPs to agree to switching processes that are good for consumers.
There is an increasing trend towards CPs seeking to introduce contractual restrictions on
customers’ ability to switch e.g. longer minimum contract periods (‘MCPs’) and penalties if
they wish to exit the contract during this period.
W here both parties to a contract have equal information and resource, they will also have
equal ability to negotiate terms and to enforce. However, in consumer-to-business contracts
this is not the case. It is often difficult to understand the implications of small print.
The growth of bundles can generate valuable upside for consumers, but can also serve to
exacerbate many of the issues identified above.
The growing importance of communications services such as mobile to enable citizens to
take full part in society and the economy has drawn attention to gaps in provision or take-up
where there has not been a commercial case for CPs to invest and provide service.

Top business and process challenges for
customer experience programs
Getting a holistic view of the customer
Understanding customers’ needs
Providing responsive support
Understanding account profitability
Meeting SLA conditions
Providing customized solutions/products
Bringing new products to market
Process complexity
Management support
Account Management
Partnering with others in the value fabric
Agreement of core metrics

Telcos are in the early phases of improving &
managing CE
Has you organization deployed any of the following customer experience
management projects?
Source: Ovum | TMT intelligence | informaIntegrating social media analytics with CRM
Speech analytics
Contact center analytics
Digital marketing/marketing automation
Mobile device tracking and profiling
Social media and Big Data mining
Order-to-activation
Multi-channel routing
Feedback and surveys (voice-of-customer)
Setting up service monitoring/ operation centers
Integrating inputs from OSS/BSS into CRM
Fully deployed Trialing Planning Considering use, but no firm plans Not considering

Successful enterprise innovators have 10
attributes in common
Leadership Prioritize and foster innovation – remove barriers, provide resources/time, set challenges and priorities, enable Deep insight and foresight Market-led insights, current voice of the customer (VoC), and horizon scanning of emerging technologies Coherent innovation strategy Determine where and how to innovate. Select markets in which to compete/engage. Cast ideation net wide: crowdsourcing, coinnovation Balanced innovation portfolio Healthy mix of sustaining and disruptive innovation – products/services/customer experience and business models Adaptive planning Continuous versus annual planning cycle. Rapid allocation of resources for disruptive innovation Dedicated innovation team Dedicated team to act as catalyst and 100% focused on innovation Formal innovation
management Coherent process from ideation through to selection, prototyping and launch, and product lifecycle management Culture Foster experimentation; fail fast, succeed sooner philosophy; agile approach Highly collaborative Across the enterprise, and with customers, partners, and suppliers Relevant ecosystem Innovation partners, venturing and options, incubation with entrepreneurial start-ups

Deepen engagement over the lifecycle of the
customer
Use cases Pricing: Recommendation:
Bundled pricing plans
Location based pricing
Acquire
Grow
Retain W inback
Incentives for the first top-up
Discount on VAS trials
Real-time Offers
Personalized real time offers
Next best offers
Data/VAS/mMoney promotions
Location based offers
Churn control:
Churn propensity scoring
Customer experience optimization
Winback campaigns
Service/content recommendations
Loyalty programs
Tenure based personalized rewards
Rewards & incentives:

Your Customer’s Journey Should Be Like
This….
9
1. Provide me with relevant
and timely information
2. Tailor my engagement
based on past interactions
3. Personalize offer to my
budget and needs
6. Personalize my
services on demand
7. Help me manage
my services/spend
8. Share my experiences
5. Deliver right first
time and every time
4. Keep the contracting
process simple

Importance of Self Service in better customer
experience
New support paradigm for customers
SATISFACTION
DISSATISFIED CUSTOMERS
✔
Self Service customer support
✗
TRADITIONAL
CHANNELS: Online, call
center, Point of sale
On device Self service
- Quick Fixes
- Personnalized
support
- Seemless user
journeys
- Self-service (no
waiting time)
- Qualified order
bookings
Still not migrated to
Self-Service support

Right Message, Right Time, Right Location
Brazil
UK
55%
78%
US UAE 63%
68%
The messages you receive are not in line with your areas of interest
Communicate with your customers
at the precise MOMENT and LOCATION
when it offers the most value
Only mobile devices can deliver relevant experience!

Look into economic principles for superior
customer experience
Match right product to right customer
Implement 3rd degree price discrimination
Increase producer’s surplus by recommending right plan/pack to right segment of users based on their price elasticity
Reduce dead weight loss in operator’s favour
Demographic segmentation to identify price conscious users
Send promotions at right time
Price inelastic
Price elastic
Customer’s state of mind changes with the time of the day and day of the week
Channel preference and location also changes with the time
Build 360° customer profile
Identify user’s interest , liking, usage behavior , etc to recommend right kind of product to the user
Superior Customer Experience Personalization and Recommendation
Bring together Buyer and Seller

RECOGNIZE INDIVIDUAL TRAJECTORIES
Identify structure in routine
Do video chats Location
Reading mails
Location
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Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators

Developing Multimedia and Value Added Services (VAS) on 4G and 4.5G for Telecom Operators

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