OSS BSS World Presentation – Telco trends and their
impact on IT
Jean-Marc Steffann
Sep 2011
Introduction
Challenges
Role of BSS/OSS
Rapid growth of mobile data consumption has seen mobile broadband
reaching high penetration levels in developed countries
Internet penetration in developed countries has grown
rapidly to more than double the global average (29%)
Mobile broadband in developed countries has seen faster
uptake than fixed in the last five years
HH Internet Penetration of Developed Countries, 2002-2010
Broadband per 100 Inhabitants, Developed Countries,
2000-2010
35.0%
38.8%
2002
2003
41.7%
44.1%
47.4%
53.7%
57.8%
61.8%
65.6%
60
51.1
Crossover point
50
40
2004
2005
2006
2007
2008
2009
2010
Fixed & Mobile Broadband subscribers (Mn), % Household
(HH) broadband access, select developed countries, 2010
30
24.6
20
250
63.5
200
100
50
10
60.0
150
69.5
64.6
95.9
57.5
51.3
39.0
Spain
Italy
0
0
U.K.
Germany France
Fixed
Mobile
U.S.
Japan
% HH Broadband Access
Fixed
Korea
Mobile
Note: Mobile Broadband includes all types of wireless high-speed internet access on
mobile phones and other devices through portable modems
Note: The developed/developing country classifications are based on the UN M49, see: http://www.itu.int/ITU-D/ict/definitions/regions/index.html
Source: Capgemini TME Strategy Lab analysis; ITU Statistics 2010 , OECD Broadband statistics
Copyright © 2011 Capgemini. All rights reserved.
2
Introduction
Challenges
Role of BSS/OSS
Telcos are facing significant challenges to their business model due to the the
inability of forecasted revenue to keep pace with consumption and cost
Worldwide Mobile Data Consumption
Volume, PB/Month, 2010- 15
Index of Mobile Data Revenue and Data
Volume (Base year 2010)
6,107
CAGR
92.5%
3,717
2,146
231
533
2010
2011
Data Revenue
Data Volume
Data Cost
Telco Squeeze
1,136
2012
2013
2014
2015
Worldwide Mobile Data Revenue, $Bn,
2010 - 15
26X
CAGR
12.3%
255
297
338
380
419
456
4-6X
2X
2010
2011
2012
2013
2014
2015
2010
2011
2012
2013
2014
2015
Source: Capgemini TME Strategy Lab analysis; WCIS Forecasts, 2011; Cisco, “Cisco Visual Networking
Index: Global Mobile Data Traffic Forecast Update, 2010–2015”, 2011
Copyright © 2011 Capgemini. All rights reserved.
3
Introduction
Challenges
Role of BSS/OSS
OSS/BSS holds the key to address key operator goals in the current market
Key Operator Goals in Today’s world
Drive Revenues
•
New service areas such as M to
M (telematics, ehealth,... )
•
Rapidly evolve and
commercialize services
•
Capitalize on the rising demand
for content
•
Partner and offer third party
services
•
Increasing the gamut of
services offered
•
Flexible and standards based IT
systems
•
Real-time Services
•
Better align IT with the longterm strategic goals
•
IT as a business enabler and
not a cost center
•
Outsource routine functions to
focus on innovation
•
Improve & sell QoS
Cut Costs
•
Personalized service offerings
•
Usage of cloud to ‘rent rather
than buy
•
Network optimisation through
usage observation.
Create new
revenue
opportunities
Develop Flexible
Business Models
OSS/BSS Systems
Align QoS with
Customer Class
of Service
Align IT spend
with strategic
goals
Copyright © 2011 Capgemini. All rights reserved.
4
Challenges
Introduction
Role of BSS/OSS
Advent and growth of of smart portable devices is driving significant uptake of
mobile content consumption
The rapid surge in smartphone penetration over the
past few years is excepted to continue
Top Mobile Activities in EU5 by % Share of Total
Mobile Users, December 2010
Growth in Smartphone Penetration, Percentage of Wireless
Subscribers, North-America and Western Europe, 2009-2014
Weather
54%
51%
44%
44%
37%
33%
32%
49%
16.4%
Social N/W and
Blog
18.0%
Email
37%
32%
28%
25%
22.2%
Apps
28.0%
Internet
Browsing
28.8%
News and
Information
32.2%
Connected
Media
41.1%
Photos
57.5%
Text
Messaging
2009
2010
North America
2011
2012
2013
2014
82.7%
0%
20%
40%
60%
80%
100%
Western Europe
Source: eMarketer: “Canadian Mobile Subscriptions to Climb 20% by 2014”, June
2010; comScore, “The comScore 2010 Mobile Year in Review”, February 2011
Copyright © 2011 Capgemini. All rights reserved.
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Challenges
Introduction
Role of BSS/OSS
The demand for new services and adoption of devices with higher data usage
levels will further accelerate this trend
File sharing and Video are expected to be the largest
segments of consumer internet traffic, fueled by content
sharing amongst digital consumers
Mobile Internet Devices with higher processing power and
access speeds have higher data consumption
Average Data Consumption per month by Device Type, Mb,
2010
Global Consumer Internet Traffic by
segment, PB per month, 2009-2014
45,000
8,000
40,000
7,000
7 GB
35,000
CAGR
36%
30,000
6,000
25,000
5,000
20,000
4,000
15,000
3,000
10,000
5,000
2,000
1-1.4 GB
0
2010
2011
2012
2013
File Sharing
Internet Video
Web/Data
Internet Video to TV
Video Calling
Online Gaming
VoIP
2014
300-500 MB
1,000
1-25 MB ~50 MB
~150 MB
0
Basic or
Blackberry
Multimedia
Phone
Other
Smart
Phone
iPhone
3G
Wireless
Card
4G
Wireless
Card
Source: KPCB, 2011, FCC,” Annual Report and Analysis of Competitive Market Conditions
With Respect to Mobile Wireless, Including Commercial Mobile Services”, May 2010,
Cisco, “Cisco Visual Networking Index: Usage Study”, October 2010
Copyright © 2011 Capgemini. All rights reserved.
6
Challenges
Introduction
Role of BSS/OSS
The market is also witnessing emergence of multiple pricing models that bring
forth with them new IT challenges
Pricing Models
Description
Example
Indicative IT Challenge
Pay-per-Use
Allowing consumers to access
content per usage instance
WSJ
Mobile
App
CRM/Billing systems not capable of handling
dynamic scenarios with real-time charging and
payment
Context Based
Pricing
Pricing involving combination of
service type, partner subsidy,
subscriber segment, location
Location
-based
Services
Billing systems are not capable of real-time charging
based on multiple variables defining context
QoS /
bandwidth
Based Pricing
Charging based on QoS / bandwidth
demands and network resource
utilization
Netflix
Billing systems do not have capability to dynamically
charge based on real-time session / network data
In-app
purchasing
Allowing consumer to purchase
content within application
Angry
Birds
Partner billing is not capable of handling dynamic
scenarios where charging / billing depends on
customer’s purchase decision
Advertising
supported
Cross subsidies / freebies for
accepting ads
Groupon
Mobile
Billing systems may not be capable of handling
dynamic charging scenarios based on customer’s
decision of accepting advertisement
Personalized
Bundles
Offering personalized bundles
based on a customer’s
behavior / preferences
Behaviorbased
Personalization
Billing silos, lack of single view of customer and lack
of real-time pricing makes personalized offers
difficult
Copyright © 2011 Capgemini. All rights reserved.
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Challenges
Introduction
Role of BSS/OSS
Operators will need to modify the operational models and the nature of their
involvement to address emerging opportunities
Product Description

Electronic book reader,
with bundled global 3G
access

Product has access to
Kindle bookstore for
purchasing e-books

Car navigation device with
bundled 3G access
Key Consumer Benefits
Operator’s Involvement

Pervasive global access to
3G for purchasing content
without worrying about
data harges

AT&T provides wholesale
access to Amazon for the
device

AT&T’s involvement is
limited to network access
without billing

Bundled 3G access
enabling real-time traffic
updates

Vodafone offers one year
of free bundled access


Access bundled for one
year
Consumers to decide on
whether to continue the
plan beyond an year
Operators will have to be prepared to work with models where they potentially need to integrate billing with
partners for revenue share
Copyright © 2011 Capgemini. All rights reserved.
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Challenges
Introduction
Role of BSS/OSS
Managing services in a multi-partner, multi-device environment poses
significant challenges to the operator
Content
Aggregators
Customer Journey:
Requesting a movie
Devices
Request
Video
1
Operators
Allocate
Bandwidth
Portal
2
Stream
Video on
the network
Network
4
Invoice
3
Send event to
charge the customer
Customer Billing
5
6
Payments
Payments
Partner
settlement
7 Revenue
CHALLENGES
Sharing
FULFILLMENT
 Providing a seamless experience with real-time
activation / service delivery
 Effective handling of order fallout / jeopardy situations
and keeping the customer informed
 Managing devices to ensure Quality-Of-Experience
ASSURANCE
 Managing Quality-of-service in a muti-partner domain
 Ensuring effective bandwidth to provide ubiquitous,
quality service
BILLING
 Handling dynamic pricing revenue sharing scenarios
e.g. user decision of in-app purchase
 Dispute settlement / revenue sharing with multiple
partners
Copyright © 2011 Capgemini. All rights reserved.
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Introduction
Role of BSS/OSS
Challenges
Upgrading the CRM layer will allow operators to increase their service breadth
and depth to implement an integrated multi-channel customer service strategy
Capability Maturity
Channel Breadth
Social Media Customer
Service
Customer Service Bots
Multichannel Integrated
Customer Service
Social media
presence
Simple self-service
assistant
Uniform experience
across channels
Dedicated social
media care teams
Simple chat-bots
Availability of crosschannel interaction
history
Social media
integration
Advanced chat-bots
Optimized call
handling strategy with
seamless switch-over
Grand-slam
Automated social
media monitoring and
analytics
Mature
Presence
Growing
Presence
Untapped
Source: Capgemini Analysis; Company Websites
Copyright © 2011 Capgemini. All rights reserved.
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Introduction
Role of BSS/OSS
Challenges
Automation and intelligent targeting using social media will increasing be a
critical component of next generation customer service
Next Generation Customer Service Solutions and Implementation
Next Gen Solution
Pro-active identification of
customer needs and
dissemination of
information
Behaviour based product
discovery
Multiple customer service
channels with uniform
experience
Leveraging knowledge of
other customers for query/
problem resolution
Brand-building by
managing the experience of
the customers
Examples
Elaboration


Scan social media activity to identify new prospects
or cross-sell / up-sell opportunities
Place promotional content about new products on
social media and invite users to view it
Vodafone, Orange and T-Mobile
Netherlands have started
deploying influencer marketing
solutions

Drive cross-selling and up-selling by analyzing
customer’s past purchasing patterns
Amazon’s recommendations are
based on predictive analysis
based on customer’s past history
and comparisons with customers
with similar purchase patterns

Recommend optimum call strategy based on
customer’s channel preferences and call types, etc
Escalate from a self-service session to bot and
agent assisted session without losing context
BT’s ‘Ask Emma’ is a virtual
agent service that answers
customer’s queries about
products and provides basic
support

Create open discussion boards to discuss
customer issues and enable peer resolution
AT&T has customer care on
Twitter where customers can post
problems / share knowledge or
seek support from AT&T support
team

Promote knowledgeable and influential customers
as brand evangelists on social media
Leverage advanced social media search
capabilities to pro-actively identify customer issues
Invite users to participate in promotional events



Comcast monitors twitter for
customer conversations and proactively contacts the customers
to address their concerns
Source: Capgemini Analysis; Company Websites; Pursway.com, ‘Vodafone, Orange , other mobile
leaders and consumer companies step up influencer marketing approach’, Feb 2010; Company
Facebook Pages; Businessweek.com, ‘Comcast’s twitter man’, Jan 2009
Copyright © 2011 Capgemini. All rights reserved.
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Introduction
Role of BSS/OSS
Challenges
Focus on increased personalization, new revenue & pricing models in a multidevice multi-partner environment will drive operator’s OSS/BSS evolution
Functional Domains Impacted
BSS
New Business Requirements
New Revenue and
Pricing Models
Multi-party
Services
Personalization
and Customer
Control of Service
Dynamic Context
Based Charging
Real-Time for prepaid
OSS / Mediation
Integrated Policy
Management
Converged Billing
Platform
Real-time Interfaces
Dynamic
Wholesale
Charging
Partner
Management
Subscriber Data Management
Real-time ondevice reports
Real-time
Bandwidth, QoS,
Resource
Management
Enhanced Policy
Management
New Functionality
Required
Source: Capgemini TME TS Lab analysis,
Policy Management
OTA Updates
Existing Functionality that
needs Enhancement
Copyright © 2011 Capgemini. All rights reserved.
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Introduction
Role of BSS/OSS
Challenges
The existing OSS/BSS landscapes are insufficient and must be adapted to
meet the market demands
Utilize BI
solutions for
network and
service quality
De-couple
channels from
order
processes
Increased
order
automation
Innovate your
social media
strategy
Ensure billing
systems can
support new
models
Prepare
systems for
increased use
of third parties
Improved self
service
solutions
Usage data
warehouses
Re-think traffic
data solutions
Mediation is
key in reducing
billing data
Build social
CRM solutions
Copyright © 2011 Capgemini. All rights reserved.
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