thomashowe-netcentrex.ppt

Netcentrex Converged IP Communications

Triple Play Service Creation in Lifestyle Markets

Thomas McCarthy-Howe, Netcentrex

VP of Technology

2 Netcentrex Converged IP Communications

#2 SMS#1 Unified Messaging

#1 Voice Mail

#1 Real-Time Billing

#1 Telecom Voice Applications

#1 Mobile Music

#3 MMS

#1 Mobile Instant Messaging

#1 VoIP Application Servers

Market Leadership

#1 Total Communications

Recent Acquisitions

Kenan Acquisition- Convergent Billing LeadershipNetcentrex Acquisition- VoIP Application Server Leadership


Netcentrex + Comverse Leading the Converged Communication World

• Innovative, field-proven VoIP, FMC and IMS offering

• Technological excellence and highly skilled professionals

• Leading market position

• VoIP infrastructure & expertise

• Advanced consumer & business services

• Leading VoIP market position

• 300 employees, offices in 12 countries

• $50 million 2005 revenues

• 50+ service operators

• 3 Million VoIP subscribers

• Leading VAS & billing market position

• Mobile expertise and know-how

• Global market reach

• 5,000 employees, offices in 41 countries

• $1 billion revenues

• 500+ service operators

• 1 billion subscribers


IMS: The Enabler of Blended Services

Voice

SMS

InstantMessaging

Video

VoiceVideo

Multimedia Services

Presence AppsMessaging

GamingApplication

Sharing

Separate, single-media sessions

Simultaneous, multimedia sessions

Services Today Services with IMS


The Past and the Future

• Mass market, no segments

• Telephone company branding

• Same services for everyone

• Same phones for everyone

• Separate services on separate devices

• Separate providers for• Communication

• Entertainment

• Information

• Segmented markets

• Personal lifestyle branding• Narrow psychographic segments

• Specific services for each lifestyle

• A user-centric view of the world. "it’s all about me" — my applications, my identity, my availability

• Customized GUIs & phones

• All services available on all devices• Fixed phone, PC, TV and mobile phone

• Single provider can offer• Communication

• Entertainment

• Information

The Past: The Network Was King The Future: The User Is King

Evolution towards branding & lifestyle services


Worlds of Telecom and Broadcasting Collide

Broadcasting

Telecom

Mobile phone

TV

PC

Fixed phone

Content Devices


Service Provider Challenges

Challenge # 1: Keep Control Over Subscribers

Response: branding, segmentation, & service bundles



Challenge # 2: New Sources of ARPU

Response: context-aware lifestyle services


Response: context-aware lifestyle services


How are Service Providers Goingto Create New Value?

1. Value comes from the combination of bundles + new services• Bundling communication + entertainment + content, etc.• New value thanks to cross-leveraging of services

• Voice, video, SMS, presence, free content, wireless broadband access

2. There is increasing value in narrow end-user segments• Specific groups of end-users can be profitably addressed with customized

services thanks to Quad Play/FMC technology (“long tail” principle)

3. New value can be created with context-aware services• An interaction is established according to a context, in real time or near-

real-time mode from:• User to user (voice and video communication)• User to content such as quad play services• Users to machines, servers or third party applications

• Strong input from local and culturally differentiated services

The value is created with Lifestyle Services


Video Is a Key Service Enabler Across All Lifestyles

• Interactive video services (Mobile - TV - PC)

• Dating services

• Videoblogging / moblogging

• Televoting

• Video window on TV show

• Real estate virtual tours

• Information portals

• Home surveillance and monitoring services

• Sports betting

• Video telephony (Mobile - TV - PC)

• “See what I see” from mobile to TV

• Holiday photo/video message (combined with music or comments) on PC and TV

• Video mail messages from mobile to TV

• Video conferencing between mobile, PC and TV

“Communication is 7% verbal, 38% vocal and 55% non-verbal” Albert Mehrabian, Professor Emeritus of Psychology, UCLA


Lifestyle Service Segmentation

Number of subs per service

Segmentation

General lifestyle markets Specialized lifestyle marketsBranded lifestyle markets

2003

2006

Senior medical Senior medical monitoringmonitoring



Number of subs

Segmentation


2003

2006


General lifestyle markets:• Segmentation by age group• Same brand for all age groups• Services designed to keep up existing ARPU & customer loyalty• Low cost pricing thanks to economies of scale and historic public investments• High investment in infrastructure• Low investment in terminals & GUIs• Large, integrated service providers• Long established market

General lifestyle markets:• Segmentation by age group• Same brand for all age groups• Services designed to keep up existing ARPU & customer loyalty• Low cost pricing thanks to economies of scale and historic public investments• High investment in infrastructure• Low investment in terminals & GUIs• Large, integrated service providers• Long established market



Number of subs

Segmentation


2003

2006


Branded lifestyle markets:• Segmentation by community• Target segments unreachable by mass market operators• Unique brand for each community lifestyle• Services customized to each user community• Premium / value pricing thanks to strong branding• Limited investment in infrastructure• High investment in branding, terminals & GUIs• Link all elements of lifestyle, including content• MVNOs since 2003, integrated with TV & PC from 2006

Branded lifestyle markets:• Segmentation by community• Target segments unreachable by mass market operators• Unique brand for each community lifestyle• Services customized to each user community• Premium / value pricing thanks to strong branding• Limited investment in infrastructure• High investment in branding, terminals & GUIs• Link all elements of lifestyle, including content• MVNOs since 2003, integrated with TV & PC from 2006



Number of subs

Segmentation


2003

2006


Specialized lifestyle markets:• Multidimensional segmentation based on psychographics and context• Unique brand by niche segment• Services designed for and triggered by specific context of users• Premium / value pricing in line with context• High investment in terminals & GUIs• High investment in partnerships• Initial market from 2006

Specialized lifestyle markets:• Multidimensional segmentation based on psychographics and context• Unique brand by niche segment• Services designed for and triggered by specific context of users• Premium / value pricing in line with context• High investment in terminals & GUIs• High investment in partnerships• Initial market from 2006


Contents

• General lifestyle services

• Branded lifestyle services

• Specialized lifestyle services

• Conclusion


General Lifestyle Services

• Segmentation by age groups

• 8 – 15 years old pre-teens / teens

• Key applications: IM, video greetings, gaming, multimedia ringback tones, SMS/MMS, friend locator

• 15 – 25 years old students / young adults

• Key applications: single directory, video greetings, video blogging, video “see what I see”, personalization, SMS/MMS, IM, televoting, friend locator, place-shifting

• 25 – 55 years old working adults

• Key applications: parental controls, teen locator, single directory, personalization, speech dialing, security, work productivity

• Key value proposition

• Offer service bundles which increase personal utility of communication, entertainment and information


Examples of General Lifestyle Services

Televoting

Personalization of TV viewing

Telephony services on TV

Media center content on mobile phone


• Over 800K subscribers, IP-TV over DSL and FTTHOver 800K subscribers, IP-TV over DSL and FTTH• 10 M calls per day, 910 € ARPU / year; five 9s reliability10 M calls per day, 910 € ARPU / year; five 9s reliability

Fastweb’s General Lifestyle IP PlatformEnables Wide-Scale Applications Fastweb’s General Lifestyle IP PlatformEnables Wide-Scale Applications

Residential VoIP plus IP-TV, IP-VOD, Data, Teleconferencing, PVR, Video Telephony, Gaming … and many other services


Consumer Education and MarketingIncrease General Lifestyle AdoptionConsumer Education and MarketingIncrease General Lifestyle Adoption

• The first incumbent telco to offer video telephony over their network – November 2004

• Video telephony platform

• Offer: 99 Euros for 1 phone and the second for free

• Benefits for the Incumbent:

• A way to escape the pure price war

• A way to increase DSL penetration by addressing “non PC-savvy” users with easy-to-use video terminals (“grandmother/grandchild effect”)

• A way to differentiate against a pure VoIP telephony offering


Contents




• Conclusion


Branded Lifestyle Services

• Segmentation criteria = communities of interest

• Groups of users who have common requirements for communication,

entertainment and information

• Leverage existing content and/or brand promise

• Disney: family

• NRJ: young, cool

• Yahoo!: different

• Google: pioneering

• Creating new brands and segmentation using the following criteria:

• Age, gender, geography, interests, hobbies

• Other examples

• Amp’d

• Virgin

• Breizh

• ESPN


Disney Mobile: The Lifestyle Brand forFamilies with Young Children

• Mobile phone service (MVNO) designed for families, expected to launch mid-2006

• Family-package• Multiple handsets within the same

subscription

• Features to improve family communication

• Family entertainment content

• Parental controls

• Limited Internet access and no chat room access

• Almost 2/3 of parents with children aged 8-16 interviewed as part of a Disney study said they would welcome a package designed with families in mind

• Other Disney lifestyle services:• Entertainment: resorts, cruises, games,

books, cinema, TV channel, merchandising, etc.


Amp’d: The Lifestyle Brand for18-25 Year Old American Men

• MVNO services designed for young men, launched in 2005

• Branding and positioning• Amp'd is focusing on serving their target segment well (2-3M)

• Services include several elements of lifestyle service: voice + Web site + mobile entertainment + original content

• Custom mobile phones• Cool, inexpensive handsets ready to receive streaming video,

music downloads, and pictures of pin-up girls

• Custom user interface: “Amp'd Live”• Combines music downloads, video clips, ringtones, games,

and wallpaper into a single application

• Custom TV / video content• 4 streamed TV stations from major broadcasters and a 5th

channel that will carry self-produced shows ranging from action sports coverage to its own spoof reality TV shows

• Fox Sports, Fox News, Spike TV and International Music

• Clips from the Late Show With David Letterman and highlights from America's Next Top Model

• Also produces its own (mobile) television network


Contents




• Conclusion


Specialized Lifestyle Services

• Segmentation

• Multidimensional segmentation based on psychographics and context

• Niche-services designed for and triggered by special context

• Unique brand by niche market

• Example of target segment

• Remote biometric monitoring and medical alarm notification for people with chronic conditions, at high risk, or the elderly

• Solution based on custom wireless devices that seamlessly transmit situation-based and location-based data in real-time, for online monitoring, analysis and care


Examples of the Multitude of Specialized LifestyleServices for the Senior Market

Healthcare:Medication reminderPharmacy re-orderPsychological AssistanceHeart monitoringDiabetes trainingRespiratory monitoringDrink reminderAlzheimer monitoring(nPVR + Video, device tracking)

Security:Emergency locationservices ID and social security checkAlarm monitoring

Commerce:Payment guardianshipProximity video Shopping ServicesFood supply re-ordering(I-fridge)

EdutainmentSenior University (TV-Based)Retired education programsnPVR

Gaming/gamblingVideo conferencingLotto/bingoNetwork-based card playingVirtual slot machine

Automotive, travel & transportation:Wheeling chair battery monitoring & replacementLocation/map servicesCar sleeping control, Emergency services

EntertainmentInfotainmentProfiled nPVRGood old times filmsFamily video storageTTS newspaper reading

Senior HarmonyService Bundle


Specialized Triple Play forStudents at SJSU

• Project Description• Initial pilot project “Campus Village”

opened Fall 2005

• Over 4,500 students and staff

• Campus Village provides:• Triple Play via fiber to the pillow

• High-speed Internet access

• VoIP (residential and IPCentrex)

• Video on-demand

• Edutainment

• E-learning for recording classrooms

• Distance learning and multi-campus content

• Computer lab

• Interactive gaming center

• Onsite restaurants, including Starbucks!


Conclusion


Response: lifestyle services


Response: lifestyle services





General lifestyle markets

Specialized lifestyle markets

Branded lifestyle markets

thomashowe-netcentrex.ppt

Documents

branding lifestyle services

community lifestyle

new services

separate services

services available

differentiated services

elements of lifestyle

customized services