ott and the customer dividend

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Digital City Network Device

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Page 1: OTT and the Customer Dividend

Digital City

Network

Device

Page 2: OTT and the Customer Dividend

Osvaldo Coelho 02nd February 2014

It is what the customer experiences

Google

Facebook

You give the user an experience Customer start trusting you More customers flock in You look what they are doing. You mine the data. You sell the data you mined.

Out of giving the user an experience, you made money

If a new provider appears -like WhatsApp- and start giving users a good experience You already know what is going to happen You go there and buy that provider

As the money is shifting to the providers

Investors’ money go towards providers Market will become over provided

Page 3: OTT and the Customer Dividend

Osvaldo Coelho 02nd February 2014

And what does that mean for an Operator?

Network=>Access=Device=Applications=Network FIXED LINE: Intelligence concentrated in the network’s core=Limited Access=Device costs

high=needed just a smaller network MOBILE: Access widespread via mobile=Device costs went down=needed bigger network MOBILE 3G: Intelligence concentrated in the device=Access widespread=Device costs go down=enabled building applications=need bigger network

Applications drive the customer to buy Smartphones=benefit the operator by opening new market for data=Upgrade to a bigger network As Smartphones become Phablets (Phone/Tablets) prices go further down=operator needs bigger access pipes=need new network (LTE) Build a new network with providers , not users, in mind.