tavess b2b telecom challenges ind,ch,vn

8/6/2019 Tavess B2B Telecom Challenges Ind,Ch,Vn

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1 Tavess Private & Confidential


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f

Introduction

Tavess research on challenges in the Telecom markets of India, China and Vietnam from the

perspective of C-Level executives across various disciplines (IT/ IS/ MIS, Engineering, Sales/Marketing, Legal/ Regulatory, Finance and General management) is founded on primary-

based research involving Tier-I and II Fixed and wireless carriers and MVNOs across the

three target countries. This deck presents the summary of the study.

Note: The main objective of the study was to understand opportunities for third party vendors/ consultants on the grounds of

business challenges faced by Telecom Services Providers. This part of the study is not included in this deck in respect to

confidentiality agreements established.



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KEY CHALLENGES & RESPONSE TO CHALLENGES



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Key Challenges

Tavess Private & Confidential

Raise Profitability

Increase ARPU

Manage Declining Tariffs

Pursue Income-generating Opportunities

Tapping New / First-time Subscribers

Build Ecosystem of Expert Support

VERBATIM

High investments and slow returns; while ARPU is declining, the biggest challenge is how to increase earnings

China Mobile

We must act quickly to introduce new tariffs and packages; Nonstop races of huge promotion and reducing charges

directly affect our annual revenue VinaPhone

Trends are new; and there is often not an established ecosystem of expert support internal to organizations Airtel

Increasing profitability and tapping GSM users Reliance


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Response to Challenges


Innovation

More Relevant and Targeted Offerings

VAS with Focus on QoS

Leverage Consulting

VERBATIM

First, focus on innovation and value-added offerings; second, concentrate on quality of service China Telecom

Develop new services and diversify value-added services. Target different groups of customers according to their

needs and offer personalized services; Concentrate on producing more personalized mobile phones China Mobile

Were looking at consulting organizations Airtel

Implications are always there and all challenges are somewhat threatening. Wed constantly innovate and get the kind

of products needed for different user groups Vodafone

Working on long-term strategy on short-term schedules S-Fone


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Perspective New Revenue Opportunities


3G, Video-content & Value Added Services

Bridging Service Providers and their

Customers

New Markets

Advertising

VERBATIM

The opportunities are in the areas of 3G wireless internet access and 3G value-added services related to video; we also need to

cooperate with more Service Providers to provide new value-added services, such as mobile wallet and mobile payment China

Mobile

Overseas markets; In addition, further revenue is generated by on-demand video and direct merchandise sales Airtel

Value added services, advertising, and being a medium for service providers to reach new user groups which are business

specific Reliance

New countries to explore, having successfully invested in six countries overseas Viettel Mobile


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Perspective Capacity Management


Capacity Vs. Cost Supply Vs. Demand

VERBATIM

Because of China Mobiles huge customerbase, the capacity management is sometimes under excessive stress. The

challenge is that the demand for this service will hinder our cost saving targets China Mobile

Focus is on being proactive, in that Capacity Management helps ensure that IT infrastructure functions to meet both

current and future business demands; By gathering and analysing relevant data, it helps plan for upcoming needs and

optimize purchasing decisionscontinuously balancing Airtel


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Perspective Cost Structure Management


Multi-play Bundles

Targeted Advertising

On-demand Model

Cut Staffing Costs

VERBATIM

Multi-play bundles and new differentiating services such as multi-screen, high-speed internet and new communication

services, the new functionality creates interesting business cases for advertising and commerce Vodafone

Advertising can be targeted specifically to each and every person, ensuring that you receive information that you are

interested in, instead of the traditional 30-second spot that is shown to everyone, regardless ofinterest Reliance

Primarily, we have to reduce costs. There is an opportunity by introducing self-service and reduce pressure on call

centre by using fewer employees to operate normalbusiness China Mobile

There are many areas like Advertising, Marketing, Sales and IT as well in which an third party can assist you in the

right way so that we can control the cost and get better service and generate revenue Airtel


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RELEVANCE OF BUSINESS ISSUES:

NEW REVENUE OPPORTUNITIES

NEW BUSINESS MODELS

NETWORK CAPACITY MANAEMENT

COST STRUCTURE TRANSFORMATION



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Relevance of Business Issues New Revenue Opportunities


0%

20%

40%

60%

80%

100%

120%

Expand share of

customers wallet:

use data toincrease ARPU and

retention

Launch new

services that

customers willvalue

Speed up new

service time-to-

market

Maximize

wholesale

revenues

Exploit

convergence in the

value chain and inend-user services

Exploit device

convergence and

divergence, deviceconnectivity, andnon-traditional

devices

Improve customer

care, service

delivery, andcustomer and

developer

satisfaction


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Relevance of Business Issues New Business Models


72%

74%

76%

78%

80%

82%

84%

Developing an ecosystem of

application

and content provider partners

Use new business models to

move

into adjacent markets

Build mission-critical networks

for verticals

Develop to serve the demand for

cloud computing

Note - New Business Models: models that do not rely exclusively on increased subscriber voice, video, or data access fees but instead, create mutuallybeneficial agreements with third party developers, content owners, select partners, businesses and enterprises


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Relevance of Business Issues Network Capacity Management


78%

80%

82%

84%

86%

88%

90%

92%

94%

Expand share of customers wallet: use data

to increase ARPU and retention

Launch new services that customers will

value

Speed up new service time-to-market


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Relevance of Business Issues Cost Structure Transformation


64%

66%

68%

70%

72%

74%

76%

78%

80%

82%

Decide what to own, what to operate,what to out-source, what to share,

and what to wholesale

Improve content delivery efficiencyand quality

Increase profitability in largeARPU range markets


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FOCUS ON BUSINESS ISSUES (IN RESPONSE TO

CHALLENGES & OPPORTUNITIES):

CUSTOMER EXPERIENCE

NETWORK & TECHNOLOGY

COLLABORATION WITH APP DEVELOPERS & CONTENT OWNERS

VERTICALIZED APPROACH

ADVERTISING & VIDEO-SHARING



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Areas of Focus Customer Experience


Enrich Customer Experience (3G Free Trials)

New Offerings

Satisfactory Customer Service

Build Loyalty

VERBATIM

Launch new offerings and offer free trials to customers China Telecom

Gather from all possible areas and it is this customer experience that ensures loyalty Reliance

Focus on 3G Experience and regularly invite customers to have an experience of 3G services China Mobile

Keeping customers is now harder than ever; but were proud to be one of the few to be good at this Viettel Mobile


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Areas of Focus Network & Technology


VERBATIM

Networkstrengthen and make the most of it; optimal usage and new services leveraging technology and network

Reliance

We continuously upgrade our network and technology Viettel Mobile

Use network to provide data services of high quality China Mobile

Network capable of delivering high speed internet and data services Vodafone

Strengthen and make Optimal Use Regular Upgrades


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Areas of Focus Verticalized Approach


VERBATIM

That is where were at and think the industry will be moving in this direction; where well see high level of

verticalized operations and offerings and GTM Airtel

I dont see it happening in the near future. China Telecom

Not at the moment China Mobile

Definitely! Vodafone

We realize its importance and were starting to look at it Viettel Mobile

Verticalized GTM & Vertical-Specific

Offerings

ChinaNot with the Trend


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Areas of Focus Advertising & Video-Sharing


VERBATIM

Advertising were seeing things that would increase revenues by 3-digit rate Airtel

Video sharing online communities etc. all these are on the rise and seem to go on forever China Telecom

Yes, we definitely will. We tend to go on this direction China Mobile

There is ample room in the future for this to be developed Viettel Mobile

Revenue Driver Long-term Opportunity


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Take-Home Notes (i)


Greatest challenge faced by Telecom cos. in all three countries - India, China and Vietnam - is addressing bottom-line - to

raise ARPU, overall profitability and manage falling tariffs.

Next challenge is tapping first-time customers.

Service providers resort to innovation and customer-relevant and more targeted offerings. Some look for consulting services.

Value added services, 3G services and Video-content based services are the key revenue driving opportunities, and

Advertising is a more lucrative opportunity.

Capacity management is all about balancing supply against demand and cost against capacity.

Cost structure across organizations is subject to see changes at various dimensions.

Speeding up service time to market is an issue relevant to most organizations, followed by Optimal TCO of networks and new

services launch. Managing capacity crunch and Exploiting convergence in the value chain and in end-user services.


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Take-Home Notes (ii)


Enriching customer experience by allowing free trial usage is a key focus area, in addition to building loyalty.

Strengthening networks and technologies and making optimal use is critical in managing networks and leveraging technology.

Collaboration with App-developers and Content-owners is perceived very essential by most carriers.

Vertical specific offerings and GTM is perceived essential and put to practice in India; with Vietnam following the trend while

China staying away.

Advertising and Videos-sharing are very promising opportunities, especially from revenue perspective.


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Questions?

Please write to:

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tavess b2b telecom challenges ind,ch,vn

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