Working with OTT player in the Cloud
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1. This document discusses strategies for mobile network operators (MNOs) to manage the challenge of over-the-top (OTT) players in areas like voice, messaging, media, and cloud. 2. It suggests MNOs transform their business models, collaborate with OTT players through APIs and revenue sharing, and leverage their assets like billing relationships, networks and data centers to develop new offerings. 3. The document also discusses opportunities for MNOs in enterprise messaging and cloud, as well as evolving services like RCS and developing differentiated quality propositions.
Working with OTT player in the Cloud
- 1. This document is offered compliments of BSP Media Group. www.bspmediagroup.com All rights reserved.
- 2. Working with OTT players in the Cloud Vuyani Jarana
- 3. Double Sided OTT Business Model Sponsored : Revenue Streams Advertising platform twitter BBM whatsup Advertising Revenues skype Google twist Communities Content & context facebook Consumer Freemium services Pay per use premium services Collaboration and content services Business 1. 2. 3. Free content Free messaging service Free Voice service Accept exposure to adverts
- 4. The no-revenue business model? Viber statements: We will NOT charge for the app We will NOT charge for Viber-to-Viber calls We will NOT charge for Viber-to-Viber texts We will NOT advertise on the Viber app “We will NOT sell, rent or in any other way abuse your data” 3
- 5. Freemium Services Sponsored free service… ads or induced to services so that customers can buy and follow through with premium Underlying Infrastructure The underlying infrastructure will never be free. Someone is paying for your free wifi… either your neighbour, restaurant or advertisers APs
- 6. But social network platforms are not built for philanthropy 160 Investment per customer Sponsored Revenue Streams 140 Freemium services customers Paid for Premium Services Subscriptions 120 100 80 Freemium service Subscriber base Size of community 60 Average investment Per customer 40 20 0 A B C D E F G H I J … the Freemium service is paid for K L M N O P Q R S T U V W X Y Z
- 7. Challenges MNOs are facing: Scissor Shaped and ABC Voice Broadband Connection Ultra Broadband and User Centric B ARPU Can it be enhanced? Golden Year A Bandwidth C SMS Value/Bit Voice Leased Line Can cost remain same while Bandwidth increase 10 times? Cost HSI Mobile BB Can they be controlled within the target? IPTV Increase User Base Lower the cost Killer Application Era Model courtesy of Huawei Can it be achieved beyond demand? HDTV Long Tail Application Era
- 8. Drivers of adoption of OTT services beyond cost Community Content Context
- 9. The current model where operators continue to invest in the underlying network and OTT players take the UPSIDE is not sustainable. A new model that is balanced must evolve. Operators have to develop new ideas around this issue.
- 10. VS MNO’s facilitate the underlying platforms thus creating a possibility to VS facilitate real interoperability. Billing relationships with clients create biggest potential upside for both OTT & VS 1. 2. 3. MNO Amazon does not know how to talk to ebay Facebook does not know how to talk to Linkedin Google search engine does not know how to talk to Bing search engine Build standard APIs and expose them to OTT to connect at easy and therefore create a partnering context
- 11. The next evolution of OTT service will be mission critical yet underexplored applications such as for mhealth mHealth evolution Activity & health tracking & monitoring Wearable smartphones Html 5 will enable simple service integration for APPS … the key is for Telcos to shape this future so that the ecosystem is rebalanced. Html5 , Access networks, Standardised open APIs, Data storage capability , Trusted brands and Billing relationships , Customer service context give MNO in unassailable position to participate in the ecosystem
- 12. What should MNO’s do? 1. Transform : transform traditional ( voice centric) business model into data centric business model, then the issue of OTT becomes that of gain sharing than revenue cannibalisation. 2. Collaborate : collaborate with OTTPs and provide billing context for service bundles so that customers are always on regardless of the underlying service plan from MNO. 3. Innovate : create end to service by developing open APIs for OTT to engage with ease and cross service integration leveraging developments such as html5 etc. 4. Lead and Shape health and education ecosystem
- 13. Vodacom’s pricing transformation programme
- 14. Collaborate with OTT players 1. MNO have data centre and cloud assets 2. MNO have channel capability which OTT tend to struggle with at enterprise level 3. Value bundling of OTT services and increase ARPU as customers move to higher price plans 4. Billing relationships with clients 5. Build end to end rich communications service platform as industry standard (RCS) 6. Leverage OTT systems capability to build commercial offers
- 15. MNOs are still the go to service point for OTT services… When a customer has a problem with BBM or facebook not working, they call their MNO first as some of the OTTPs have no direct service support context, which tends to be crucial requirement when the service fails. …despite not benefiting from the OTTP upside
- 16. What is RCS-e? Rich communication service (RCS) ete An industry GSMA standard Chat & Group chat Video sharing The simplicity of SMS with the richness of IM. Add video to a running voice call contrary to 3G video calls Capability discovery An end-to-end seamless service : File sharing Share multimedia content during a chat or voice call session
- 17. Operator strategies to manage OTTP challenge Mobile Voice 1. Hold ground and transform business model 2. Migrate to integrated price plans 3. Create a differentiated voice quality proposition Messaging 1. Drive enterprise messaging strategy especially for Sme 2. Collaborate with OTT 3. Develop APIs and expose them to OTT to create a revenue share relationship 4. Evolve sms / mms into a value added platform for enterprise b2c. 5. Accelerate m2m Media 1. Integrated offers quad play with focus on quality of service and experience. Cloud 1. Leverage customer billing relationship, access network and data centre assets to carve a distinct position in the market. 2. Leverage IaaS, PaaS & SaaS capability to lead in enterprise 3. Value Bundling: Bundling third party cloud services and get customers into a higher price plan.
- 18. Thank you