Download - Tavess B2B Telecom Challenges Ind,Ch,Vn
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Introduction
Tavess research on challenges in the Telecom markets of India, China and Vietnam from the
perspective of C-Level executives across various disciplines (IT/ IS/ MIS, Engineering, Sales/Marketing, Legal/ Regulatory, Finance and General management) is founded on primary-
based research involving Tier-I and II Fixed and wireless carriers and MVNOs across the
three target countries. This deck presents the summary of the study.
Note: The main objective of the study was to understand opportunities for third party vendors/ consultants on the grounds of
business challenges faced by Telecom Services Providers. This part of the study is not included in this deck in respect to
confidentiality agreements established.
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KEY CHALLENGES & RESPONSE TO CHALLENGES
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Key Challenges
Tavess Private & Confidential
Raise Profitability
Increase ARPU
Manage Declining Tariffs
Pursue Income-generating Opportunities
Tapping New / First-time Subscribers
Build Ecosystem of Expert Support
VERBATIM
High investments and slow returns; while ARPU is declining, the biggest challenge is how to increase earnings
China Mobile
We must act quickly to introduce new tariffs and packages; Nonstop races of huge promotion and reducing charges
directly affect our annual revenue VinaPhone
Trends are new; and there is often not an established ecosystem of expert support internal to organizations Airtel
Increasing profitability and tapping GSM users Reliance
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Response to Challenges
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Innovation
More Relevant and Targeted Offerings
VAS with Focus on QoS
Leverage Consulting
VERBATIM
First, focus on innovation and value-added offerings; second, concentrate on quality of service China Telecom
Develop new services and diversify value-added services. Target different groups of customers according to their
needs and offer personalized services; Concentrate on producing more personalized mobile phones China Mobile
Were looking at consulting organizations Airtel
Implications are always there and all challenges are somewhat threatening. Wed constantly innovate and get the kind
of products needed for different user groups Vodafone
Working on long-term strategy on short-term schedules S-Fone
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Perspective New Revenue Opportunities
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3G, Video-content & Value Added Services
Bridging Service Providers and their
Customers
New Markets
Advertising
VERBATIM
The opportunities are in the areas of 3G wireless internet access and 3G value-added services related to video; we also need to
cooperate with more Service Providers to provide new value-added services, such as mobile wallet and mobile payment China
Mobile
Overseas markets; In addition, further revenue is generated by on-demand video and direct merchandise sales Airtel
Value added services, advertising, and being a medium for service providers to reach new user groups which are business
specific Reliance
New countries to explore, having successfully invested in six countries overseas Viettel Mobile
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Perspective Capacity Management
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Capacity Vs. Cost Supply Vs. Demand
VERBATIM
Because of China Mobiles huge customerbase, the capacity management is sometimes under excessive stress. The
challenge is that the demand for this service will hinder our cost saving targets China Mobile
Focus is on being proactive, in that Capacity Management helps ensure that IT infrastructure functions to meet both
current and future business demands; By gathering and analysing relevant data, it helps plan for upcoming needs and
optimize purchasing decisionscontinuously balancing Airtel
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Perspective Cost Structure Management
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Multi-play Bundles
Targeted Advertising
On-demand Model
Cut Staffing Costs
VERBATIM
Multi-play bundles and new differentiating services such as multi-screen, high-speed internet and new communication
services, the new functionality creates interesting business cases for advertising and commerce Vodafone
Advertising can be targeted specifically to each and every person, ensuring that you receive information that you are
interested in, instead of the traditional 30-second spot that is shown to everyone, regardless ofinterest Reliance
Primarily, we have to reduce costs. There is an opportunity by introducing self-service and reduce pressure on call
centre by using fewer employees to operate normalbusiness China Mobile
There are many areas like Advertising, Marketing, Sales and IT as well in which an third party can assist you in the
right way so that we can control the cost and get better service and generate revenue Airtel
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RELEVANCE OF BUSINESS ISSUES:
NEW REVENUE OPPORTUNITIES
NEW BUSINESS MODELS
NETWORK CAPACITY MANAEMENT
COST STRUCTURE TRANSFORMATION
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Relevance of Business Issues New Revenue Opportunities
Tavess Private & Confidential
0%
20%
40%
60%
80%
100%
120%
Expand share of
customers wallet:
use data toincrease ARPU and
retention
Launch new
services that
customers willvalue
Speed up new
service time-to-
market
Maximize
wholesale
revenues
Exploit
convergence in the
value chain and inend-user services
Exploit device
convergence and
divergence, deviceconnectivity, andnon-traditional
devices
Improve customer
care, service
delivery, andcustomer and
developer
satisfaction
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Relevance of Business Issues New Business Models
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72%
74%
76%
78%
80%
82%
84%
Developing an ecosystem of
application
and content provider partners
Use new business models to
move
into adjacent markets
Build mission-critical networks
for verticals
Develop to serve the demand for
cloud computing
Note - New Business Models: models that do not rely exclusively on increased subscriber voice, video, or data access fees but instead, create mutuallybeneficial agreements with third party developers, content owners, select partners, businesses and enterprises
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Relevance of Business Issues Network Capacity Management
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78%
80%
82%
84%
86%
88%
90%
92%
94%
Expand share of customers wallet: use data
to increase ARPU and retention
Launch new services that customers will
value
Speed up new service time-to-market
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Relevance of Business Issues Cost Structure Transformation
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64%
66%
68%
70%
72%
74%
76%
78%
80%
82%
Decide what to own, what to operate,what to out-source, what to share,
and what to wholesale
Improve content delivery efficiencyand quality
Increase profitability in largeARPU range markets
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FOCUS ON BUSINESS ISSUES (IN RESPONSE TO
CHALLENGES & OPPORTUNITIES):
CUSTOMER EXPERIENCE
NETWORK & TECHNOLOGY
COLLABORATION WITH APP DEVELOPERS & CONTENT OWNERS
VERTICALIZED APPROACH
ADVERTISING & VIDEO-SHARING
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Areas of Focus Customer Experience
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Enrich Customer Experience (3G Free Trials)
New Offerings
Satisfactory Customer Service
Build Loyalty
VERBATIM
Launch new offerings and offer free trials to customers China Telecom
Gather from all possible areas and it is this customer experience that ensures loyalty Reliance
Focus on 3G Experience and regularly invite customers to have an experience of 3G services China Mobile
Keeping customers is now harder than ever; but were proud to be one of the few to be good at this Viettel Mobile
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Areas of Focus Network & Technology
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VERBATIM
Networkstrengthen and make the most of it; optimal usage and new services leveraging technology and network
Reliance
We continuously upgrade our network and technology Viettel Mobile
Use network to provide data services of high quality China Mobile
Network capable of delivering high speed internet and data services Vodafone
Strengthen and make Optimal Use Regular Upgrades
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Areas of Focus Verticalized Approach
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VERBATIM
That is where were at and think the industry will be moving in this direction; where well see high level of
verticalized operations and offerings and GTM Airtel
I dont see it happening in the near future. China Telecom
Not at the moment China Mobile
Definitely! Vodafone
We realize its importance and were starting to look at it Viettel Mobile
Verticalized GTM & Vertical-Specific
Offerings
ChinaNot with the Trend
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Areas of Focus Advertising & Video-Sharing
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VERBATIM
Advertising were seeing things that would increase revenues by 3-digit rate Airtel
Video sharing online communities etc. all these are on the rise and seem to go on forever China Telecom
Yes, we definitely will. We tend to go on this direction China Mobile
There is ample room in the future for this to be developed Viettel Mobile
Revenue Driver Long-term Opportunity
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Take-Home Notes (i)
Tavess Private & Confidential
Greatest challenge faced by Telecom cos. in all three countries - India, China and Vietnam - is addressing bottom-line - to
raise ARPU, overall profitability and manage falling tariffs.
Next challenge is tapping first-time customers.
Service providers resort to innovation and customer-relevant and more targeted offerings. Some look for consulting services.
Value added services, 3G services and Video-content based services are the key revenue driving opportunities, and
Advertising is a more lucrative opportunity.
Capacity management is all about balancing supply against demand and cost against capacity.
Cost structure across organizations is subject to see changes at various dimensions.
Speeding up service time to market is an issue relevant to most organizations, followed by Optimal TCO of networks and new
services launch. Managing capacity crunch and Exploiting convergence in the value chain and in end-user services.
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Take-Home Notes (ii)
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Enriching customer experience by allowing free trial usage is a key focus area, in addition to building loyalty.
Strengthening networks and technologies and making optimal use is critical in managing networks and leveraging technology.
Collaboration with App-developers and Content-owners is perceived very essential by most carriers.
Vertical specific offerings and GTM is perceived essential and put to practice in India; with Vietnam following the trend while
China staying away.
Advertising and Videos-sharing are very promising opportunities, especially from revenue perspective.
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