MobileIndustry– StrategicConsiderations
ChetanSharma
ITUASPCOESeniorManagementTraining
On
TelecomStrategyforthePacific– NextFiveYears
16-18November2015
Nadi,Fiji
FRAMEWORKFOR4TH THINKING
Revenue
Growthintelecomservices
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Increasepenetration
Upgradenetwork
Introducenewservicesonthecurve
Bundleservices
Decreasecost
Regulatorystimulusasneeded
4th waveservices
Apps
Access
Voice
Messaging
Subscriptions
©ChetanSharmaConsulting,2015.AllRightsReserved
MobileOperators:StrategicImperatives
Source:Operator’sDilemma(Opportunity): TheFourth Wave
©ChetanSharmaConsulting,2015.AllRightsReserved
VOICE:GROWà HARVEST
• Infrastructure
– Cable
– CellularDeployment
• Complimented byWiFi
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RemoteIslandcoverage
SatelliteServices
NetworkSharing
Government incentives
• ImproveAffordability
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IncreaseReach
Cheaperdevices
GranularPlans
Morechoices,bundles (devices, services)
Competition
• MVNOs
– Government incentives
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VOICE:HARVESTà MAINTAIN
• Affordability
– IncreaseReach
– Cheaperdevices
– GranularPlans
– Morechoices,bundles
– Competition
– Governmentincentives
• AlternateOTTmodels
©ChetanSharmaConsulting,2015.AllRightsReserved
VOICE:MAINTAINà TRANSITION
• Voiceisbundledinwithdataservices
• IPbasedOTTservicesdominate
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DATA&DIGITAL:Whereisyourgrowthteam?
• AllleadingOTTplayershavegrowthteamswhofocuson
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Acquiringnewsubs
Introducingexistingsubstonewservices
Convertinglatentsubsintoactivesubs
Buildoffers,strategies,marketingaroundaddingnewcustomersastheirsole
focus
• Similardisciplineisrequiredattheoperatorleveltofocuson
growthandnewareas
©ChetanSharmaConsulting,2015.AllRightsReserved
DATA:GROWà HARVEST
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Infrastructure
– Cable
– Cellular Deployment
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WiFi
Movefrom2Gto3Gto4G
Satellite Services
RemoteIslands
NetworkSharing
Governmentincentives
Affordability
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IncreaseReach
Cheaper devices
Granular Plans
Morechoices,bundles
Competition
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MVNOs
AccessRegulations
Wholesaleregulations
– Governmentincentives
– OTTframeworktodogranularservices (e.g.Lotusflare)
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DIGITAL:CreatingDemand
• Prioritizeapplicationareas
– Govt-2-Citizens
– Operator-2-Consumers
– OTT-2-Consumers
• Mainapplicationareaswillmirrorexistingindustries
– GovtServices
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EmergencyManagement
FinancialServices
Education
Agriculture
Mining
Health
– CommercialServices
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Mining
Agriculture
Tourism
Fishing
Entertainment
Communications
Dataservices
©ChetanSharmaConsulting,2015.AllRightsReserved
CaseStudies:Leading
4th wavemobileoperators
ApplicationArea
ActivityType
E.g.operator
Health
Remotepatientmonitoring,Compliance management
AT&T,Verizon
Counterfeitdetection
AfricanOperators
Telemedicine
Bharti,Telefonica
SenddiagnosticstotheOEM,dealer
AT&T,Telefonica,Verizon
Buildconsumerservices – navigation,apps,
entertainment
AT&T,Sprint
Cloud
Hosting,Storage,Applications
Verizon
Content
Video
Verizon,Telefonica
Security
End-to-endenterprise offeringacrossmultiple countries
AT&T,Verizon
Consumersecurityofferingfordevices, Homesecurity
AT&T
B2B
Vodafone,Telefonica
B2C
Vodacom,Smart
ConnectedCar
Payments
©ChetanSharmaConsulting,2015.AllRightsReserved
ApplicationAreas
ApplicationAreas
ApplicationArea
Activity Type
E.g.operator
M2M
Connectivity,Roaming
Vodafone, Telefonica, AT&T,Verizon
Environmental
Sensorsinthephonecollecting dataandproviding info
NTT DoCoMo
Consumer
Digital services likemusic(service builtandoperated)
ChinaMobile
Agriculture
Commoditypricing, disease info
Developing nationoperators
SmartCity
Working withcities toinstall sensorstomanagetraffic,
env,infotocitizens
Telefonica
IndustrialAutomation
Puttingsensorsinjetengines,turbines,operations
AT&T
Education
Language courses
Bharti
Analytics
Analyticsasaservice
Telefonica,AT&T,Sprint
©ChetanSharmaConsulting,2015.AllRightsReserved
Howcanyouparticipateonthe4th wave?
• Collaboration is the only way to go
– To have a shot at any of the vertical areas, one has to have scale
– Just like collaborating on handset procurement gives some scale, working
together on a platform that can be jointly rolled out is essential
• Individual corporate strategy is generally not in sync
• Work with partners who have developed vertical expertise to help you address the
market opportunities
• Collaborate/Resell Regional Operator solutions in your markets
• What’s your platform for innovation?
– Using a combination of LTE and WiFi provides better ROI and quicker
time-to-market
– An all-IP network enables new and/or enhanced services – voice,
messaging, content, enterprise
– Modular network components to launch new services
TransformationChallenges
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Acknowledgement
Organization/Realignment
Rethink Platform
Communication
Execution
©ChetanSharmaConsulting,2013
Organizingforsuccess
©ChetanSharmaConsulting,2013
SettinguptheDigitalPractice
• Setupadigitalgroupseparatefromcoreoperations
– Digitalgroupdirector’scharteristo
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Identifyresources
Secureinvestment
Buildtheplatform
Identify2-5servicesthatcanbelaunchedinshort-term
Engagepartnersandcollaborators
• Failuresshouldbeembracedandconsideredasteppingstone
tosuccess
• Buildlocalcapability
SettinguptheDigitalPractice
• Someobviousservicesforcollaborationseemtobe:
– EmergencyManagement
– MobileMoney
– IndustrySectorApplications
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Tourism
Agriculture
Fishing
Mining
Health
• Involveallrelevantstakeholdersforinput
• Involveactualusersinpilotstoiterateondesignandfunctionality
• Recruitchampionsandtrainersofappsinthecommunity
Howtogoaboutbuildingapps
• Solutionshaveto“always”focusonaspecificneedthatneeds
addressing
– Howcanefficiency,simplicity,andubiquitybeintroducedintothedesign
ofthesolutionset?
– Solutionshouldtrytobeplatformanddeviceagnostic
– MobileshouldbepartofabroaderICTinitiative
– Thereshouldbeaclearpathfrompilot,initialtestingtobroaddeployment
andadoption
– Initiativesacrossvariousverticals– agriculture,finance,health,etc.should
beconnected
©ChetanSharmaConsulting,2015.AllRightsReserved
Apps
• Pilotsgalore!Migrationfrompilottoimplementationoften
tough
• Pilotsneedtobepartofalongerroadmapforassessing
progressandfunding
• Citizensneedtobeactivelyinvolvedinthedesignphase
©ChetanSharmaConsulting,2015.AllRightsReserved
PolicyQuestions
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Security
Privacy
DataCollection
UbiquityofSolutions/Apps
DeviceSupport
Liability
Other
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Privacy
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Howisdatacollected– opt-in/opt-out
Howisdataused
Howisthedatashared
Whereisthedatastored
Howareviolationsdealtwith
Howlongisthedatastored
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Regulatoryframework
• Developed
– Europe:Strictestprivacypolicies
– NorthAmerica:Regulatorybodiesarestartingtogetinvolvedw/
privacyviolations.Approvedsmartphonestobeusedformedical
purposes
• Developing
– Laxpolicies,notenforced
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Incentivestodevelopforruralareas
• PhysicalIsolation,poorinfrastructure,fewassets,weakIT
access,weakinformationflow
• Greatneedfortimelyinformationandresponse
• Integrationoflocal,regional,andinternationalsupplyand
valuechains
• Volatilityofcommoditymarketsandfoodsecuritychallenges
• Wideavailability andaffordabilityofmobile
• SMSaslowtechbutpowerfulmobiletechnology
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NewBusinessModels
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Granulartieredpricing
Shareddatapricing
Personalizedpricing
Equipmentleasing(Smartphonesandotherdevices)
Solutionpackaging
QoSbasedpricing/solutions
CustomizedOTTservices
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Private-PublicCollaboration
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Funding
TechnicalCollaboration
RegulationsandPolicy
DeveloperEcosystem
ConsumerEducationandawareness
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ChallengeforRegulators
• PromoteCompetition
– Newoperators
– NewMVNOs
– AccessRegulations
• Ensurethatthewholevalue-chainisbenefittingfromthe
mobileappsexplosion
• Localdevelopercommunityshouldbedeveloped
©ChetanSharmaConsulting,2015.AllRightsReserved
StrategicFactors
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Broadbanddeployment
Availabilityofaffordabledevices
Policyandregulationstoprotectconsumer
Policyandregulationstopromotecompetition
TrackindustryKPIs
Investmentinkeyareas– infrastructure,cloud,security
ClearG2Cinitiativesandroadmap
– Collaborativeapproachbetweenministries
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Localcapacitybuilding
Localization
Leverageexistingsynergiesandframeworks
Platformapproachforcollaborationandreducetime-to-market
Datacollection,privacy,andsecurity
©ChetanSharmaConsulting,2015.AllRightsReserved
CollaborativeFramework
ForDigitalServices
• Fordigitalservicestothrive,acollaborativeframeworkisneededin
thepacificislands
– Acentralcoordinatingauthority(perhapsPITA)
• Workonthebasicroadmapoftheplatform
• Requirementsforthekeyapplications
– Agriculture,Tourism,Mining,Fishing
• Capacitybuilding
– Technicalrepresentationfromeachinterestedpartytofeedinthe
requirementsfortheroadmap
– AllowcustomizationasneededontheUXandappdesign
– Backendrunsonacloudservicethateveryonecantakeadvantageof
©ChetanSharmaConsulting,2015.AllRightsReserved
InSummary
• Morechangeinthenext10yearsthantheprevious100
• Mobilewilltransformeveryindustry
• Opportunitiesabound.
– NewServiceAreas– Commerce,Remittance,Games,Health,
Retail,Advertising,Energy,etc.
©ChetanSharmaConsulting,2015.AllRightsReserved
ThankYou.Questions?
ChetanSharma
chetan@chetansharma.com
TW:@chetansharma
http://www.chetansharma.com
MobileFutureForward
info@mobilefutureforward.com
TW:@mfutureforward
http://www.mobilefutureforward.com
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