Triple Play Service Creation
in Lifestyle Markets
Thomas McCarthy-Howe,
Netcentrex
VP of Technology
Netcentrex
Converged IP Communications
Market Leadership
#1 Total
Communications
#1 Voice Mail
#1 Mobile Music
#1 VoIP Application Servers
#1 Real-Time Billing
#1 Telecom Voice Applications
#1 Mobile Instant Messaging
#1 Unified Messaging
#2 SMS
#3 MMS
Recent Acquisitions
Kenan Acquisition- Convergent Billing Leadership
Netcentrex Acquisition- VoIP Application Server Leadership
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Netcentrex
Converged IP Communications
Netcentrex + Comverse
Leading the Converged Communication World
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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
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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
• Innovative, field-proven VoIP, FMC and IMS offering
• Technological excellence and highly skilled professionals
• Leading market position
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Netcentrex
Converged IP Communications
IMS: The Enabler of Blended Services
Services Today
Services with IMS
Separate, single-media
sessions
Simultaneous, multimedia
sessions
Voice
Video
SMS
Instant
Messaging
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Netcentrex
Converged IP Communications
Voice
Video
Multimedia
Services
Presence Apps
Messaging
Gaming
Application
Sharing
The Past and the Future
The Past: The Network Was King
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Mass market, no segments
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Telephone company branding
Same services for everyone
Same phones for everyone
Separate services on separate
devices
Separate providers for
• Communication
• Entertainment
• Information
The Future: The User Is King
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Segmented markets
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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
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Customized GUIs & phones
All services available on all devices
• Fixed phone, PC, TV and mobile phone
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Single provider can offer
• Communication
• Entertainment
• Information
Evolution towards branding & lifestyle services
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Netcentrex
Converged IP Communications
Worlds of Telecom and Broadcasting Collide
Fixed
phone
PC
Telecom
Broadcasting
Mobile
phone
TV
Content
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Netcentrex
Converged IP Communications
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
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Netcentrex
Converged IP Communications
How are Service Providers Going
to Create New Value?
1. Value comes from the combination of bundles + new services
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Bundling communication + entertainment + content, etc.
New value thanks to cross-leveraging of services
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Voice, video, SMS, presence, free content, wireless broadband access
2. There is increasing value in narrow end-user segments
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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
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An interaction is established according to a context, in real time or nearreal-time mode from:
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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
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Netcentrex
Converged IP Communications
Video Is a Key Service Enabler Across All Lifestyles
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Interactive video services (Mobile - TV - PC)
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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)
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“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
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Netcentrex
Converged IP Communications
Lifestyle Service Segmentation
2003
Number
of subs
per
service
2006
Segmentation
General lifestyle markets
Branded lifestyle markets
Specialized lifestyle markets
Senior medical
monitoring
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Netcentrex
Converged IP Communications
Lifestyle Service Segmentation
Number
of subs
General lifestyle markets: 2003
• Segmentation by age group
2006
• 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
Segmentation
General lifestyle markets
Branded lifestyle markets
Specialized lifestyle markets
Senior medical
monitoring
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Netcentrex
Converged IP Communications
Lifestyle Service Segmentation
2003
Number
of subs
Branded lifestyle markets:
2006
• 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
Segmentation
General lifestyle markets
Branded lifestyle markets
Specialized lifestyle markets
Senior medical
monitoring
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Netcentrex
Converged IP Communications
Lifestyle Service Segmentation
2003
Number
of subs
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
Segmentation
General lifestyle markets
Branded lifestyle markets
Specialized lifestyle markets
Senior medical
monitoring
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Netcentrex
Converged IP Communications
Contents
• General lifestyle services
• Branded lifestyle services
• Specialized lifestyle services
• Conclusion
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Netcentrex
Converged IP Communications
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
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Netcentrex
Converged IP Communications
Examples of General Lifestyle Services
Telephony
services on
TV
Media center
content on
mobile phone
Televoting
Personalization
of TV viewing
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Netcentrex
Converged IP Communications
Fastweb’s General Lifestyle IP Platform
Enables Wide-Scale Applications
• Over 800K subscribers, IP-TV over DSL and FTTH
• 10 M calls per day, 910 € ARPU / year; five 9s reliability
 Residential VoIP plus IP-TV, IP-VOD, Data, Teleconferencing,
PVR, Video Telephony, Gaming … and many other services
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Netcentrex
Converged IP Communications
Consumer Education and Marketing
Increase General Lifestyle Adoption
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The first incumbent telco to offer video
telephony over their network –
November 2004
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Video telephony platform
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Offer: 99 Euros for 1 phone and the
second for free
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Benefits for the Incumbent:
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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
Netcentrex
Converged IP Communications
Contents
• General lifestyle services
• Branded lifestyle services
• Specialized lifestyle services
• Conclusion
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Netcentrex
Converged IP Communications
Branded Lifestyle Services
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Segmentation criteria = communities of interest
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Groups of users who have common requirements for communication,
entertainment and information
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Leverage existing content and/or brand promise
• Disney: family
• NRJ: young, cool
• Yahoo!: different
• Google: pioneering
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Creating new brands and segmentation using the following criteria:
• Age, gender, geography, interests, hobbies
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Other examples
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Amp’d
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Virgin
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Breizh
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ESPN
Netcentrex
Converged IP Communications
Disney Mobile: The Lifestyle Brand for
Families 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.
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Netcentrex
Converged IP Communications
Amp’d: The Lifestyle Brand for
18-25 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
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Netcentrex
Converged IP Communications
Contents
• General lifestyle services
• Branded lifestyle services
• Specialized lifestyle services
• Conclusion
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Netcentrex
Converged IP Communications
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 locationbased data in real-time, for online monitoring, analysis
and care
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Netcentrex
Converged IP Communications
Examples of the Multitude of Specialized Lifestyle
Services for the Senior Market
Healthcare:
Medication reminder
Pharmacy re-order
Psychological Assistance
Heart monitoring
Diabetes training
Respiratory monitoring
Drink reminder
Alzheimer monitoring
(nPVR + Video, device tracking)
Entertainment
Infotainment
Profiled nPVR
Good old times films
Family video storage
TTS newspaper reading
Edutainment
Senior University (TV-Based)
Retired education programs
nPVR
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Netcentrex
Converged IP Communications
Security:
Emergency location
services
ID and social security check
Alarm monitoring
Senior
Harmony
Service
Bundle
Gaming/gambling
Video conferencing
Lotto/bingo
Network-based card playing
Virtual slot machine
Commerce:
Payment guardianship
Proximity video
Shopping Services
Food supply re-ordering
(I-fridge)
Automotive, travel &
transportation:
Wheeling chair battery monitoring
& replacement
Location/map services
Car sleeping control,
Emergency services
Specialized Triple Play for
Students at SJSU
• Project Description
• Initial pilot project “Campus Village”
opened Fall 2005
• Over 4,500 students and staff
• Campus Village provides:
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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!
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Netcentrex
Converged IP Communications
Conclusion
Challenge # 1: Keep Control Over Subscribers
 Response: branding, segmentation, & service bundles
Specialized lifestyle markets
Branded lifestyle markets
General lifestyle markets
Challenge # 2: New Sources of ARPU
 Response: lifestyle services
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Netcentrex
Converged IP Communications