THE WAY PEOPLE COMMUNICATE IS CHANGING

People have moved from voice to data-centric forms of communication like VOIP, IM, social networking, and file sharing.

Mo

nth

ly P

etab

ytes

1000

2000

3000

4000

5000

6000

7000

8000

99

00

01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

Voice

Data : Mobile Phones

Data : Mobile PCs/Tablets

Mobile phones get popular

Skype is launched

Data traffic overtakes voice

Smart phones take off with

iPhone

iPad is launched

Mobile Web (Social networking, new forms of sharing, information access)

Video

Mobile M2M (VOIP, IM etc.)

File Sharing

Mobile Data Traffic 2012-17

But communication has truly diversified. VOIP is only a small part of the data explosion

Communication remains an important part of the data explosion

Top Applications for data consumption

Smartphones Tablets

Video/ Communications

Information Web Browsing

Social Networking

Music/Audio Streaming

Other

Erri

cso

n T

raff

ic &

Mar

ket

Re

po

rt 2

01

2

Cisco Data Meter, September–December 2012

Cisco VNI Mobile Forecast 2013

SMS, the traditional text based messaging protocol is being replaced by new forms

19.1B OTT messages/day

17.6B SMS messages/day

41B OTT messages/day

19.5 B SMS messages/day

OTT vendors: WhatsApp, Skype, Facebook etc.

2012 2013 Informa Telecoms & Media 2013

ATTENTION! SERVICE PROVIDERS

Why should you care? What is the way forward?

Skype makes 3rd of all international

calls

WHY SHOULD CARRIERS CARE?

Carrier data revenues haven’t kept up with data growth

As mobile data surges, carrier revenues from data are growing

As the world enters the data era, the strategic dynamics of the market are changing.

30,000

40,000

50,000

60,000

70,000

80,000

90,000

08 09 10 11 12 13E

THE GOOD NEWS THE BAD NEWS

Voice revenues are declining faster than data revenue growth

Da

ta R

even

ues

US

D M

$45

$10

08 09 10 11 12 13 07 14

Ch

etan

Sh

arm

a C

on

sult

ing

20

13

(minus)

AR

PU

Data ARPU gained in Q4 2012

Voice ARPU lost in Q4 2012

Carriers are conceding ground to OTT (Over the top) and VAS (value added services) providers

$55

Voice

Data

Overall APRU

Traffic

Revenues

Voice era Data era

85% of the traffic in the 4 major mobile networks is pure data but it only accounted for 39% of all mobile data revenues.

Chetan Sharma Q4 2011 No

kia-

Siem

ens;

IBM

Inst

itu

te f

or

Bu

sin

ess

Val

ue

anal

ysis

Users

Carrier

Users

Carrier

48¢ 64¢

Access Voice SMS

Access Voice SMS

Mar

kets

and

mar

kets

.co

m ,

Gar

tner

Carriers have a smaller share of a growing revenue pie

Carriers yesterday

Carriers today

Carriers face lower switching barriers and increased churn as they no longer control their customer’s data

Back

Carrier

OTT Application Customer’s Data

Apple, Microsoft, Google, Skype etc.

OTT Application Customer’s Data

SW

ITC

HIN

G C

OS

T

LOYA

LTY

Psst..i’ll give you a cheaper deal

Customers follow their data

© 2013

WHAT IS THE WAY FORWARD? As the boundaries between voice, messaging, and platforms get blurred, carriers need a

fundamental shift in strategy

Prepare for the 4th revenue wave

Chetan Sharma Consulting 2013

Net

rev

enu

e

Subscriber penetration

0-25% 25-70% 70-90% 90+%

US

The 2st Revenue Wave – Messaging is no longer sufficient

2010 20

11

20

12

20

16

8.7 B

54 B

23 B 13.9 B

SMS Revenues Lost (Billion)

Ovu

m 2

01

2

The 3st Revenue Wave – Access will not last much longer N

et r

even

ue

Subscriber smartphone penetration

0-25% 25-70% 70-90% 90+%

US

Enter the 4th Revenue Wave – OTT Value Added Services

Vo

ice

Acc

ess

Mes

sagi

ng

Ente

rpri

se

Clo

ud

Co

nsu

mer

C

lou

d

Mo

bile

A

dve

rtis

ing

Tran

spo

- rt

atio

n

Ho

spit

alit

y

Wel

lnes

s

_ _

Today Tomorrow

AR

PU

Rev

enu

e in

Bill

ion

s

Service/Application areas

Op

erat

or’

s d

ilem

ma:

Th

e 4

th

wav

e C

het

an S

har

ma

20

12

“It is becoming clear that the (carrier’s) long-term value will be in the portfolio of value -added services (VAS).”

The 1st Revenue Wave – Voice is no longer sufficient

HyperOffice lets you launch key OTT services under your own brand & keep your customer’s data

HyperOffice is an award winning leader in cloud communication and collaboration since 2002

Benefits Leverage HyperOffice technology

to enter key OTT markets

Cloud based enterprise UCC

Social VOIP/Web Conferencing

Consumer Cloud

Who?

White labeling: Build your own brand

Deploy in the HyperOffice cloud or your own cloud

Best in market margins

1.240.428.1700 x 107

Back

Contact us