business case for openning the network

1© 2008 Alan Quayle

The Business Case for Opening the Network

Alan QuayleBusiness and Service Developmentwww.alanquayle.comwww.alanquayle.com/blogwww.linkedin.com/in/alanquayle


What’s Changed?

Business Case Discussion

DeveloperPerspective


What’s Changed?


Re-Launch

An Operator’s Product Development Process

Opportunity Identified

18-30 months

Market Research

Find Budget

New product development processLaunch

12-18 months


What’s Changed?

Expectations


What customers expect

6-12 months

Weekly

18-30 months

4 months


High StreetStores

SubsidizedPhones

NetworkControl

EcosystemControl

CustomerRelationship

Brand

BillingRelationship


Developer Perspective of the

Initiatives


Some Developer Quotes

AT&T and Verizon’s developer communities are broken. We’re no longer engaged, we’ve focused our

development efforts on iPhone, Android and Ovi because there is a clear path to cash (the customer).

An ADC is a large undertaking, Operators

must resource adequately to not repeat the problems

of the past.

We have spent 18 months working with Orange Partner and achieved nothing. Its simpler to

directly go to the relevant product manager

They (Orange Partner) select what apps their customers see!

How is that a developer community? Isn’t it the customer that decides; haven’t they learnt

even the basics from Apple!

Operators’ ADCs must solve the 4 key challenges facing

developers: distribution, discovery, predictable

process, and a clear way to make money


Developer Survey on Community Involvement

0% 20% 40% 60% 80% 100%

Apple AppStore

Windows Mobile Catalogue

Blackberry App World

Android Market

Orange App Shop

Nokia OviStore

Samsung Mobile Applications

Other Operator Store

WorkingWorked in past, no longerNever worked

50 mobile application developers surveyed in June 2009. Roughly 50:50 split between North America and Europe

Critical Exodus!

Developers are voting with their feet, makes the problem far greater than awareness, you’ll need to change their minds


Sample Developer Survey: Please rank the following initiatives by who best serve the needs of the developer community (UK focused developers)

Unsurprisingly Apple and Android are top. However, Nokia Ovi appears to be in the pack with the other operators

Good

OK

Bad


Mapping the Operator Developer Community Landscape

Enterprise App Consumer App

Enterprise IT Content

Three API

Cricket

Telus

BT Ribbit

AT&T

Vodafone Betavine

Sprint ADPVerizon

OrangeChinaMobile

TelenorCPA

Globe

Only Telus and BT Ribbit have a solid enterprise focus, Orange Partner, VDC and China Mobile are attempts at enterprise, they lack focus


Enterprise App Consumer App

Enterprise IT Content

Mapping the Consumer Electronics / Operating System Developer Community Landscape

Salesforce.comAppExchange

Sun

FacebookPalm

Nokia OviGetjar

AndroidHandango Samsung

MicrosoftiPhone

RIM

Apple has successfully executed a plan supporting enterprise app developers and internal enterprise IT developers over the passed year


Developer Community Magic QuadrantAbility toExecute

Completenessof Vision

VisionariesNiche

Challengers Leaders

Sun

getjar

Salesforce

Android

Apple

NokiaMicrosoft

Telenor/Globe

Handango

Palm

Samsung

BT

Telus3

Verizon

RIM

China Mobile

AT&T

Orange

Sprint

Vodafone

Operators have failed to compete in most western markets


Capabilities Application Developers Seek

• Single sign-on• Address Book API• Age Verification• Billing/Charging• Identity/Authentication• Location• Messaging• Profile API• File Browsing• Browser based API• Presence• SIP/VOIP/Call Control• Mobile Lookup• Connection status• Discoverability• Short codes• Plus lots and lots more……


Potential Telco API capabilities (from App Vendor Survey)

• Authentication & Single Sign-on• Presence (device, application, call state)

and Availability• Device Capabilities / Software• Location (accuracies and freshness),

Proximity, Heading, Speed• Preferences (policies or rules)• Context – a combination of presence,

location, device status, application status, meeting status (calendar), etc.

• Customer data (business intelligence)• Call Control• Messaging • Network address book• Group List Server (buddy lists)• Enterprise Mobilization• VoIP / SIP: tone insertion• Call Flow: ACD, IVR, CRM, Helpdesk• Charging / Billing• Call Log / Call events • Directory • Message Store

• Home Network Enabler• Content Delivery• Policy (Quality of Service)• IPTV enablers• IPTV STB enablers• Content Enablers• Collaboration Enablers• VoIP / SIP call control including invoking

supplementary services• Fulfilment and other BOSS capabilities• Digital Rights Management• Device Management• Local dial in number provisioning • Ringtone purchase integration• Video-ringtone platform• Subscription status• Mobile Video• CDR number frequency search• Calling Name dip

And the list goes on, much further on….. Prioritization is critical

High

Pop

ular

ity

Developers are excited about the many capabilities and information

an operator has available; but getting the community / business

basics is more important


Summary of Telus Developer Ingestion Process• Service Delivery Framework exposes

– Current APIs: messaging, location and presence• No website or online ingestion mechanism

– No developer community – works with targeted developersAs APIs are ParlayX most target developers already have interfaces build into their apps

– Consider it a form of collaborative innovation rather than open innovation

– NPD (New Product Development) had too many new service ideas to even think about without opening up the innovation process

• Developer requests come in through the traditional direct contact with the NPD group

• Process is designed to enable Telus to launch more apps and faster with a focus on SME (Small Medium Enterprise)– Achieved a 4 to 40 annual service launch improvement– Reduce cost by 75% in launching new apps

• Profitable within the first year of operation

Key in Telus’ decision making: too small to create a viable developer community, and more confidence in ability to innovate in enterprise services


Telus Going Forward

• Adopting OneAPI– Will work opportunistically with developers that have

innovative consumer applications or apps launched on competitors networks that it needs to emulate

• Expanding focus to large enterprise– Examining was to work with IT groups in large enterprise to

mobilize their processes• Does not plan to expand this model to consumer

– Telus is too small – Working with other Canadian operators in the OneAPI pilot

http://canada.oneapi.gsmworld.com/– Will let CE/OS app stores flourish as it drives data plan

adoption• Will expand APIs to other enterprise centric services and

enable mash-up capabilities with web-services– Very focused and in close co-operation with specific partners

Telus will partner for a consumer-focused developer community but look to build closer ties to IT groups in large enterprise customers


Business Case


Scenario Assumptions

• Converged operator in a mature internet centric market– 10 million customers 20:80 prepaid : post-pay split

• Year 1– Silo consolidation across messaging, location and

billing– Service Exposure business creation

• Year 2– Initial service exposure capabilities

Call control, enterprise mash-up, presence

• Year 3– Service exposure expansion

IPTV, streaming, and quality of service


Year 1 Analogy based on Real World Results

• BT implemented a service creation process transformation project• Identify and consolidate ‘common capabilities’

– 650 applications that run on top of its IP network • BT measured the benefits by the number of people that managed

these common capabilities. – 60% decrease in workforce, a reduction of >1000 staff.

• For the Scenario that would mean a saving of 500 staff – Equivalent annual cost of $40 million. – Typically ROI (Return on Investment) within 3 months

• Quoting Bhaskar Gorti, senior vice president and general manager of Oracle Communications SDP savings of:

– Development cost and time reduced by 50% – Reduced IT support cost of 30% – RFT (Right First Time) improvement of 30% – TTL (Time To Launch) improvement from 30 days to 1 day – Lowered provisioning costs by 30%

• In a small operator, SDP improves an operator’s ability to scale its partner management without increasing headcount


Example Year 2 and 3 Services (example third party applications available today)

• Communication enabled business processes– Communication enabled CRM (Voicesage, WorldxChange Communications/Sulaco

Technology, Callwave, search-to-phone, local SI)– Communications dashboard / widgets (WIT-Software, FeedHenry)

• Enterprise and Voice Mash-ups– eHealth, eGovernment (Agnity, Creative North, local SI)– Voice based messaging/meeting coord (Dial2do, Excendia)

• Content 2.0– Operator community widget (Useful Networks, AirG, PartyStrands, Movial)– UGC widgets (Shozu)– Place-shifting of subscribed and personal content (Quartics)

• Presence / Location– M2M, Integrated asset tracking (Kore Wireless, Vianet, Wireless Maingate)– Integrated Field Force Automation (Gearworks)– Location application aggregators (uLocate)– Community location/presence (Aka-Aki, Geo-Me, Gypsii, Locatrix, Sense Networks,

Wavemarket)– Enterprise messaging (Tango Networks, Elitnet, GinTel, OptiMobile, Mobile Max, Adomo)

• STB services– Widgets (HomeCamera, Miniweb)– TV 2.0 channels on STB (Hulu, Blinx)

• QoS enabler– Streaming to place shifting, TV 2.0, music/audio streaming, and other premium web

based streaming servicesResult: $30-75M revenue by Year 3

Just from ‘key services’ anything else is “jam” on top


Why Aren’t Your Customers Already Using These Applications?


Critical Issues in Opening the Network

• Copy Smart – don’t copy dumb– An operators business is not the same as Apple’s– Don’t be a “40 year old” dressed as a “20 year old”

• Opening the network impacts all lines of business not just trendy ‘2.0’ stuff– Make business an equal focus

• Its not a ground-breaking business case for revenues– But the strategic impact of doing nothing will be

fundamental to the business

Bottom line: Engaged customer access and a clear path to cash matters above all to developers


ServiceProvider

UtilityConnectivity

We’ve been talking about it for over a decade, but now its the customer that’s going to decide