introduction to telco-ott - disruptive analysis ltd and martin geddes consulting ltd
DESCRIPTION
Summary slides from Telco-OTT workshop from Disruptive Analysis Ltd and Martin Geddes Consulting Ltd.TRANSCRIPT
Introduction to
Telco-OTT (‘over the top’) Services
© 2012 Disruptive Analysis Ltd and
Martin Geddes Consulting Ltd
Telco World
Service-centric
Telco-controlled devices
Telco-owned access
Telco-created services
Network roaming
OTT World
Experience-centric
Any combination of
device, access
and service*
Experience roaming
* Supported within any one ecosystem
This is the familiar world
of telecoms service
providers…
…and this is the world
they see encroaching on
their territory
The telecoms world today
Telco A Telco B
Telco C
On-net call /
SMS C-C
Interconnected
call & SMS A-B
IMPORTED
CLOUD
APPS IMPORTED
IPTV, WEB
CONTENT
EXPORTED
BULK SMS EXPORTED
CONTENT
DELIVERY
Interconnected/federated
services make up the bulk
of telecoms profits
The “traditional” vision of future IP/4G telecom
Telco A Telco B
Telco C
On-net VoLTE /
RCS C-C
Interconnected
VoLTE & RCS A-B
IMPORTED
HDTV,
SOCIAL TV
IMPORTED
M2M
SERVICES
EXPORTED
RICH APIs EXPORTED
QoS
DELIVERY
“More of the same” has
been the main strategy
response to OTT
Service
bundling
Subscription
based
Minutes &
messages
Phonebook
-centric
Converged
Services
Sessions
Ubiquity &
Interconnect
Customer
loyalty &
churn
Telco World
Regulated
This response is based on
unspoken assumptions as
to “what really matters”
Problem:
What worked in the past…
…won’t work in the future
Because in parallel….
Enterprise
Comms & BYOD
Consumer
Comms
Contextual
change
But telcos keep pursuing a
“convergence” approach
when “divergence” rules…
Federated telecom services (lowest common denominator)
Muliplicity of services
+ Multiplicity of devices
+ Multiplicity of networks
+ Multiplicity of ecosystems
+ Multiplicity of interactions
…and telcos rely on
“ubiquity” – buy they can’t
even deliver that any more
Device diversity means OTT models inevitable
0%
20%
40%
60%
80%
100%
1 2 3 4 5 6
# connected devices owned
Probability of all of a user’s Internet devices being on a
single telco’s network
Free 3rd party WiFi
• WiFi roaming & Next-Generation
Hotspot
• Telco QoS (?)
• More devices (and rising)
• More (free) WiFi & 3rd party connections
• More places of use
• Roaming & federation scaling issues
• Slow uptake of triple/quadplay
On-Net
Off-Net
The math of a multi-device
world works against the
federated telco model
Service
e.g. Telephony
Product
e.g. Skype
Feature
e.g. Xbox Live
Function
Meanwhile, the Web is
turning telco services into
browser capabilities
NOW!
Changing user
behaviour
(apps are cool,
not geeky)
Going from
scarcity to
abundance in
apps
Operators need
to compete at a
service level
Good-enough
fixed & mobile
networks
Clever adaptive
software
makes OTT
work better
No more “you’ll
eat what you’re
given”
Unsustainable
number of local
service
creators
Collaboration is
too slow,
bureaucratic &
non-creative
Smartphone
& tablet
penetration
rocketing
Viral uptake of
apps
So it’s time for
a change of strategy
$1tn question
How can telcos meet the
OTT services challenge?
(deep breath…)
Answer:
If you can’t beat them…
…join them
(…phew!)
Telco World
Service-centric
Telco device
Telco access
Telco service
Network roaming
OTT World
Experience-centric
Any combination of
device, access
and service*
Experience roaming
* Supported within any one ecosystem
Telco-OTT World
Product-centric
Mixture of telco and
3rd party devices,
access and services
? Bring the best of both
worlds together
Telco World
Service-centric
Telco-OTT World
Product-centric
OTT World
Experience-centric
Telco device
Telco access
Telco service
Network roaming
Mixture of telco and
3rd party devices,
access and services
Any combination of
device, access
and service
Experience roaming
? Comms Content Cloud Connec
-tivity
There are four Telco-OTT
segments – already with
many products & services
How?
Build businesses that…
…use OTT strategies
Operators must offer OTT extension services
Telco A Telco B
Telco C
Interconnected call
C-B
On-net rich IP
call & UC C-C
Telco C’s domain
OTT extension
Operator A is at a
competitive
disadvantage
C-IPTV app on 3G
(A gets data
charges)
Telco-OTT disrupts call &
SMS origination and
termination regimes
A Prisoners’ Dilemma
effect forces losers to
carry cost, but no revenue
Logical end-point? Full Telco-OTT services
Telco A Telco B
Telco C
On-net QoS-
optimised call C-C
Telco C’s OTT
apps
We are seeing a
free-for-all to retain the
user & billing relationship
OTT is a trade-off for users
More choice of applications
Wider distribution for applications
Lower cost of usage
(Sometimes) better performance at low network load
Performance is - more variable, and - worse at high network load
Demand Make the trade-off to give
users a broader reach of
richer services
OTT is a trade-off for telcos
New markets & new customers
Extend value of existing services & retain customers
Remain relevant beyond transmission
Direct competition with Internet-OTT players & “cult of free”
Lack of control can damage brand if experience is poor
Stresses organisation and exceeds core competence
Supply Accept that your business
strategy needs to change
to achieve this
OTT-style
services
Telco-style
services Reach
Coolness
Exclusivity
Affinity
Functionality
Tailored
Personalised
Convenient
Rentable
Preinstalled
Simple
Familiar
Transmission
Storage
Universality
Delivery
Mobility
Ubiquity
Urgency
Accountability
Availability
Usability
Relevance Governance
Create value propositions
that address both telco
and OTT characteristics
Dependable
Example: Peer-to-peer messaging
OTT-style
services
Telco-style
services
Engineer!
Design!
Adopt a design rather than
engineering culture in
solving user needs
Application
performance
(speed,
accuracy,
responsiveness,
continuity)
Perceived
value
BEST
CASE
Accepta
ble
U
naccepta
ble
Mobile VoIP
WORST
CASE
Pick use cases which are
less sensitive to variable
or poorer performance
Mobile
telephony
Better
“best case” Worse
“worst case”
Other characteristics may be equally or more
important than the network
DEVICE
Screen size
Battery life
DISTRIBUTION
Pre-installation
Apps store promotion
REGULATION
Legality (e.g. intercept)
Numbering
CONTENT RIGHTS
DRM
License agreements
Understand & mitigate all
the bottlenecks to QoE
and value-in-use
What next?
Join in…
…everyone’s at it!
Comms
Content
Cloud
Connec
-tivity
Over 100 identified
Telco-OTT products in the
market.
Operator strategies & positioning vary widely
Telco-OTT enthusiasm
Strategic
focus
Tactical /
niche
Skeptical
Internet-OTT
enthusiasm
Key
partnerships,
customisation,
co-branding
Tactical
collaboration
Hostility
Source: Disruptive Analysis Telco-OTT Strategies report
Full details in report from
Disruptive Analysis
(click for information)
@disruptivedean
Blog: disruptivewireless.blogspot.com
@martingeddes
Newsletter: www.futureofcomms.com
Dean Bubley
Founder & Director, Disruptive Analysis Ltd
Martin Geddes
Founder, Martin Geddes Consulting Ltd
Free resources
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Telco-OTT Strategies &
Case Studies report
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Telco-OTT
services
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