outcomes of the mobile world congress press conference 2016 · pdf filethey seek...
TRANSCRIPT
103.05 103.05
Industry lines are blurring between players in the market...
They seek diversification in new industry verticals
In these new industries, Telcos should play new roles
Telcos will leverage their proprietary data to differentiate
Telcos will likely encounter new types of cybersecurity risks
...leading Telcos to adapt their business model in response to competition from OTT players
11-33 36
67
63
18
eHealth
eHealthTackle market concerns in well-being wearable market
Connected CarsRelevant in entertainment and connectivity
Mobile Financial ServicesDefine a new way of banking
Utilities Industry 4.0 TransportationSmart Cities
Sources: IDC, Ovum, Technavio, MarketsAndMarkets, GSMA, Grand View Research, Navigant Research, Mind Commerce, Strategy& analysis
Sources: Global State of Information Security Survey 2016, Strategy& analysis
Estimated global addressable market for Telcos, Bn USD-2020
10
Connected Car
Mobile banking
Unbanked populationEmergent countries
Banked populationDeveloped countries Disease Management
Remote patient monitoring
Well-being wearables
Tele-diagnostic
Telcos' legitimacy to play a significative role
NFC based payments
Mobile commerce
Money transfers in developing countries
Telco Key Differentiators in Mobile Banking
Well-being wearables market state
Customer knowledge
Best-In-Class Customer Journey
Lower fees and product bundling
Consumers have not embraced health wearable technology in large numbers, but they are interested• 10% own a wearable and wear it everyday
Most consumers do not want to pay much for their wearable devices• 38% would pay $100 for a fitness band• 68% would wear employer-provided wearables
Consumers remain concerned about privacy• 23% of consumers want to share their health
information• 82% only felt concerned that wearables would
invade their privacy
Sources: PwC’s 18th annual Global CEO Survey 2015, Strategy& Analysis
Mobility Management
Vehicle Management
Well-being
Safety
Autonomous Driving
• Keep a dominant position in the connectivity space• Play a central role in the distribution of new
service offerings• Leverage brand trust to reinforce data protection
Major M&A Deals from 2011 – 2015, In €bn
• Weve delivered couponing campaigns for Tesco and drove 40k customers to retail stores
• Orange’s Flux vision analyze visits & mobility behaviors for Bouches-du-Rhône Tourisme
• Vodafone Analytics improve and balance the flow of traffic in London by analyzing movement on the different types of transport
• Life cycle-based behavior churn and profit forecast modelling decreased attrition by 50-60%
• Network optimization based on data consumption analysis and customer geo-localization — network quality improvement
• Network operations enhancement through identifying potential BTS failure due to defective batteries caused by temperature decrease
FMC convergence observed in all markets
A second trend is local mobile convergence
Further international expansion possible
On average, number of players per market expected to be reduced to three
FormerEmployees
Current Employees Hackers Competitors
38%33%
30%25%
Increasing cybersecurity threats
Strategic initiatives adopted by Telcos
Cybersecurity – an opportunity
45%Increase in detected security incidents in Telcos between 2014 and 2015
62%Have an overall security strategy
58%Have a CISO in charge of security
57%Have security standards for 3rd parties
58%Employee security training
54%Conduct threat assessments
54%Monitor actively security intelligence
Most-cited sources of incidents
• Cybersecurity can create competitive advantages by boosting customer trust in brand and reputation, giving the company a leg up in entering new industries
• Some Telcos like Singtel have already entered the cybersecurity business
1 Passenger vehicles only excluding light commercial vehiclesSources: Strategy& analysis
Sources: Web search, Strategy& analysis
Consolidation is another way for telcos to adapt their business model
International expansion
Local mobile consolidation
FMC
2.6
2.3
Current trends
7
Smart Home
Tele- consultation
Externally
Internally
7
7.78.6
America Movil / KPN
3 Ireland - O2
Telefonica Deutschland / Eplus
Free / Orange
VimpelCom / Wind
Vodafone / Kabel Deutschland
1.3
3 / Orange
Mobile Financial Services
Opportunities for telcos
SafetyAutonomous drivingVehicle managementMobility management
• Requires auto knowledge – OEM specific
• Relevance in connectivity only
• Telcos are already providing entertainment solutions
• Requires specific technology
• Low relevance but might communicate with eHealth and Smart Home offerings
• Relevance in connectivity
Entertainment
Well-beingHome integration
BT / EE
Vodafone / Cable Wireless Worldwide
Altice - SFR
Orange - Jazztel
Altice / Portugal Télécoms
Vodafone - ono
7.47.2
3.4
17.0
16.50.9
1.3
Internally
ExternallyKey challenges• Improve data quality
across all IT systems• Develop enhanced Data
Analytics capabilities• Manage confidentiality
issues• Detect and mitigate
Cyber security threats
Find new areas of growth outside of core business1
56% of CEOs saying competition will come from another industry16% of CEOs expect competition to come from Telcos
• Voice and Messaging (WhatsApp, Skype…)
• Infrastructure (Google Loon, Fiber, Microsoft WiFi…)
• Pay TV• Gaming and Video• Mobile Money
• Apple TV, Apple Pay, Maps• Samsung Tizen
• Google Nest, Google Car• Amazon Firephone
• Russia (MTS, Megafon)
• Orange (PIXI, KLIF)• Apple SIM
Differentiate by leveraging customer data both internally and externally2
65% of Telco CEOs consider Data Mining & Analysis capabilities as strategically important for their organization
• Credit scoring based on big data
• Geolocalized discounts
• Look and Feel• Leverage mobile to
eliminate pain points
• Bundle with Telco services• Lower cost due to lower
structural cost & revenue synergies
Evolution of Mobile Financial Services Most promising eHealth markets for Telcos
Estimated Market potential for Connected Car technologies (€bn)1
Entertainment
Embrace OTT growth to drive data consumption through content offering3
71% of Telco CEOs are extremely concerned or somewhat concerned by the threat of new entrants in their industry
Consolidation426% of Telco CEOs plan to initiate a domestic M&A in 201624% plan to initiate a cross-border M&A in 2016
AppleHuaweiSamsung
GoogleFacebookMicrosoftSkypeNetflix
SpotifyWhatsAppSkyGoDeezer
Device manufacturer OTT / Digital players
TelefonicaAT&TT-MobileVodafoneOrange
New PlayerSigfox
Telcos
5
7
713
36
47
2020∑115
4
426
10
16
2016∑40
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Disclaimer: This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
Outcomes of the Mobile World Congress Press Conference 2016