digital value chain
TRANSCRIPT
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Digital Value Chain
James McEachernManager Application Enabler Standards Nortel Networks
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Todays Business Challenges Hyper Competitive Environment
All out battle for the digital home New competitors are being enabled
by ubiquitous broadband access MSOs aggressively adding voice Telcos responding with video
Over-the-top providers are a newthreat.
Google Voice, Skype, Vonage Traditional SPs are left out of the
over-the-top business model High risk of being relegated to just
pipes
SPs need new services strategies todifferentiate and compete
TraditionalCompetitors
Over-the-TopProviders
TraditionalTelecom SP
Getting squeezed
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Service Bundles
> Industry dynamics are driving service providers to create newpackages; consumers will continue to adopt bundles.
However,
> Bundling is losing its effectiveness as consumers move from
bundle to bundle in search of savings.So> The integration of voice, video, and broadband applications
delivered over a wireless or wireline network becomes the nextimportant strategy.
Consumersthat do not
subscribe to a
bundle are asunlikely tochurn as those
in a bundle
0%10%20%30%40%50%
60%70%80%
T o
t a l U
. S . H
o u s e h o
l d s
( % )
2 0 0 6
2 0 0 7
2 0 0 8
2 0 0 9
2 0 1 0
2 0 1 1
BundledHouseholdsQuad Play
Triple Play
Source: IDC
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Advertising is not the only answer
Advertising can augment a model for carriers, not be the model
Realities in the new Communications world
20082012
Telecom Services
Fixed + Mobile
Global Ad
Revenue
Interactive
Ad Revenue
$2 Trillion
$1 Trillion
$500 Billion
Sources: - Global Telecom Market Status and Forecasts: Hot Telecom- The Kelsey Group
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Mobile Video
TVMobile Phone
Voice
Fixed Phone
Unified Experience
Service Silos Service Convergence
Identity enabled converged services with a commonuser experience that converges communications across
devices inside and outside the digital home
Service Convergence
PC
Home PC
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Increasing sales
service providers
carrier
consumer
carriers sell to consumers
Diminishing sales
The single-sided model
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carriers sell to consumers and service providers
Increasing sales opportunity
Increasing sales
service providers
carrier
consumer
Diminishing sales
the double-sided model:
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Core customer dataName, Address,
Gender, National ID,Profile & Preferences
MY PERSONAL DATA
Knowledge of personal
and business interactionsMy bank, school,
workplace, friends,address book
MY RELATIONSHIPS
Naming and trackingnon-human resources
.mobi domains, webbrowsing history,QR codes read
MY INTERACTIONS
User ID linked to physicaldevice or token;
configurationSIM, USIM, SoftSIM, serialnumber, profile & settings
MY DEVICES
Identity and personacreation for user
Number, address or IDprovisioning; porting; avatars
MY IDENTIFIERS
Digital LifestyleAggregators & PIM
Pictures, Videos, Bookmarks,History, Files ; Calendar,
Address Book, To Do, Notes
MY DATA
User real-time activityand status
Location, On/Off,Roaming, In-call
MY CONTEXT
Carrier Brand/Business valueroaming agreements, secure
distribution networks, sophisticated(micro-)payment, order fulfillment andprocessing capability, trusted brand,
near universal subscriber base
MY TRUST
The carrier's (latent) assets
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100,000 +
third-party
Developers
i-Phone
Google
Amazon
consumer
Third-Party Applications Web 2.0
...
...
i-Phone receives 8500 new or updated Apps per week!i-Phone receives 8500 new or updated Apps per week!
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100,000 +
third-party
Developers
Telco A
Telco B
Telco C
consumer
Third-Party Applications Telco Today
Fragmentation reduces appeal to 3 rd party developersFragmentation reduces appeal to 3 rd party developers
Telco x
...
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100,000 +
third-party
Developers
Telco A
Telco B
Telco C
consumer
Third-Party Applications Standard APIs
Creates critical mass for 3 rd party developersCreates critical mass for 3 rd party developers
Telco x
... C o n s i s
t e n
t a c c e s s
t o u n
d e r l y
i n g c o m
m u n
i c a
t i o n s e r v
i c e s
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Third-Party Applications Value Proposition
What will appeal to application developers? Consistent access to underlying services that telecom operators can provide... authentication, security ability to readily customize the new services ease of integration ability to monetize
common telecom world interface for web developers
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Standards Initiatives ATIS SON Forum
Service Enablers 3 rd Party Interfaces Catalog of enablers Data Model requirements Name Space requirments IT Infrastructure virtualization
See: http://www.atis.org/SON/
GSMA Rich Communications Suite (RCS) OneAPI
OMA TMF OASIS
Coordination between standards forums is increasing.Coordination between standards forums is increasing.
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Web Services/SOA: The key to Application Velocity
> Marriage of IT and Telecom technologiesusing web services/SOA to transform
service development> Dramatically increased service velocity
Rapid prototyping Rapid deployment
Promotes experimentation Service, business models Productize only those services that get traction in
the market
Reinvent the Applications Space
Telecom IT Enabler Building Blocks New Services
Months/Years Days/Weeks
Long Tail:New services/businessmodels
R e v e n
u e s
Low
Med
High
Number of Services
Short Tail:Core Operator Revenues
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Real World Example
> Click-to-call targetedadvertising
> Click-to-call yellowpages or customerservice
> Click-to-purchase ads
with credit cardvalidation> Communications
enabled servicesleverage the Nortel CM9520
Click-to-purchase ads
Click-to-call ads
Click-to-call yellow pages
Web Services Exposure Enables Mashup Composition of newServices and Applications on TV & PC
Web Services Exposure Enables Mashup Composition of newServices and Applications on TV & PC
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Service Evolution:From Service Silos to Converged Services
Service Silos
Bundled Services
Converged Services
Innovation
D i f f e r e n
t i a
t i o n
LocationAndrewSusan
Alert
Enhanced Services
IPTV
Mash-ups
Communicationson TV
Mobile TVCommunications
on PC
ConsumerMobile
Extension
More than the sum of bundled services Exponential increase in services
Service Oriented Networks
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