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Peter N. JarichVP, Consumer and InfrastructureOctober 18, 2013

The Innovation ImperativeWhy Innovation Matters More Than Ever……and What It Means for Operations and Billing

Infrastructures

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Agenda

The Innovation Imperative• carrier innovation circa 2013• market realities & innovation foundations • operator implications

Carrier Innovation in Practice• the myth of operator DNA• innovation across the globe• service diversity across the globe• monetization diversity across the globe

Operations, Billing and Innovation Supports• new partners• new business lines• new monetization models• same old expectations

Conclusion: The Way Forward

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The Innovation Imperative

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Innovation Imperative: The World Before DataRemember Phone Innovation 15 Years Ago?

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Innovation Imperative: The World Before DataRemember Service Innovation 15 Years Ago?

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Innovation Imperative: An Evolving MarketInnovation Circa 2013: AT&T’s Foundries

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Innovation Imperative: Mobile Broadband Ubiquity

Source: GSA, Sept 2013

2009 2010 2011 2012 20130

50

100

150

200

250

300

LTE Network Launches: 2009 – 2013 (E)

LTE = Proxy for Demand + Supply

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Innovation Imperative: Mobile Broadband Ubiquity

Source: GSA, Aug 2013

Feb-2011 Jan-2012 Jan-2013 Aug-20130

200

400

600

800

1000

1200

LTE Device Launches: 2011 – 2013

LTE = Proxy for Demand + Supply

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Innovation Imperative: Mobile Computing Ubiquity

78%

22%

US Mobile Device Presence: Aug 2013

Smartphone

Source: Current Analysis - CurrentTRACK, Aug 2013

Smart Devices = The New Normal

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Innovation Imperative: Mobile Computing UbiquitySmart Devices = Coming to Every Corner of the Map

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Innovation Imperative: Today’s LTE ServicesCommon Marketing Message: Speed, Speed, Speed

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Innovation Imperative: Today’s Service CompetitionCompetition is Changing, But What Is It Changing Into?

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Innovation Imperative: Today’s Consumer ServicesOTT’s Proving Faster, Better at Value-Add Innovation

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Innovation Imperative: Carrier Market Realities

Access Market Rapidly Evolving voice decline

data commoditization

New Competitors

New Service Capabilities buckets & caps

zero-rating

time-based

location-based

multi-access

New Customer Expectations

New CompetitorsDeveloping and Validating Service RoadmapsTrend Visibility Beyond the Home Market / Business unfamiliar services

unfamiliar geographies

The Search For New Partners tap market diversity

filling service gaps

leverage new thinking

Market Drivers Challenges

An Industry Identity Crisis?

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Carrier Innovation in Practice

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What Is Innovative: Looking for a DefinitionIt’s Easy to Spot, Right?

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What Is Innovative: Looking for a DefinitionIt’s Easy to Spot, Right?

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What Is Innovative: Looking for a DefinitionIt’s Easy to Spot, Right?

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What Is Innovative: Looking at ExamplesCarrier Services Beyond Voice and Data?

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What Is Innovative: Looking at ExamplesBroader Partnerships in Service of Driving Data?

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What Is Innovative: Looking at ExamplesMoving into New or Adjacent Markets?

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What Is Innovative: Looking at ExamplesDisrupting Your Existing Business?

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What Is Innovative: Looking at ExamplesSomewhat Disrupting Your Existing Business?

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What is Innovative: Sorting out the Details

SERVICE TYPESad-funded

app market integration

bundled content

cloud services

connected devices

data multi-sim

data roaming

IP comms location

mobile marketing

mobile payments

multi-screenoperator apps

OTT integration

secondary brands WiFi

zero rating

4G

…From A Wealth Of New Service Opportunities

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What is Innovative: Sorting out the Details

MONETIZATION

ad-funded

service cost reduction

customer acquisition customer retention

direct monetization(service fees)

freemium

revenue sharing

…From A Wealth Of Ways To Make Money

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Operations, Billing and Innovation

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OSS + BSS + Innovation: Beyond Access or CoreWho’s Ready For A “Blast From The Past?”

applications as an equal part of solution

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OSS + BSS + Innovation: New PartnersHow To Play Nice With Others?

New Partners

OTT MANAGEMENT

CATALOG INTEGRATION

BILLING MEDIATION

API INTEGRATION

HOLISTIC VISIBILITY + MANAGEMENT

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OSS + BSS + Innovation: New ServicesNew Services Require More Than Just New Ideas

New Services

APPLICATION LIFECYCLES

DATA ANALYTICS

CEM SUPPORTS

API MANAGEMENT

SELF-CARE, SELF-FULFILLMENT

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OSS + BSS + Innovation: New Monetization SchemesBecause We All Hope To Get Paid

1

2

3

4

5

New Monetizati

on

POLICY

ANALYTICS + CEM

MICRO PAYMENTS

MEDIATION

CRM INTEGRATION

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OSS + BSS + Innovation: Networks Are ChangingBut Are Consumer Expectations Around Them?

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OSS + BSS + Innovation: Consumer ExpectationsSPs Are Not OTTs, And There Are Many Reasons Why

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Conclusion: What Does The Fox Say?

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Conclusion: The Way Forward

Carrier Service Innovation Is Everyone’s Business

Carrier Service Innovation Is An Evolution• Different Today Than It Was Yesterday• Who Knows Where It’s Going Tomorrow?

Innovation Must Move Faster Than An Evolutionary Pace

OSS/ BSS Infrastructures Must Be There To Support It• New Service Rollouts• Meaningful Partnerships• Complex Monetization and Billing Schemes• All Done With a “Fail Fast” Mentality• All Done Against The Backdrop of Quality Expectations

Embrace The Excitement• New Services + New Competition• New Capabilities• New Vendors• New Relevance for Operations and Billing

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Questions?

Thank You

Current Analysis is the leading provider of continuous, actionable market intelligence, analysis and advice.  For over 15 years, Current Analysis has helped global telecom, IT and software companies leverage market events to identify strategic growth opportunities, innovate, and

position themselves as leaders in the marketplace to win more business. Relied upon as a trusted partner, the company serves more than 35,000 professionals at over 1,400 global

enterprises.

Presented by:

Peter JarichVP, Consumer and Infrastructure