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7/26/2019 NxtWave_InWireless

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Innovation in Mobile: Operator Strategies and Successes

Emeka Obiodu

Senior Analyst, Telco Strategy

+44 20 7551 [email protected]


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Copyright Ovum. All rights reserved. Ovum is part of the Datamonitor Group.2

Agenda

Introduction

Carrier Innovation strategy: what does it mean?

About the scope of innovation

About what is needed for innovation

About the benefits of innovation

About how to go about innovation

Ovums Mobile Services Innovation Radar

US carriers

International carriers

Conclusion


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WHAT DOES INNOVATIONMEAN TO WIRELESS

CARRIERS?


4/21 Copyright Ovum. All rights reserved. Ovum is part of the Datamonitor Group.4

Four insights from Carrier Innovation strategy

Insight 1 The scope of innovation is broad

Insight 2 Innovation should leverage core competence

Insight 3 The benefits of innovation are varied

Insight 4 The supremacy of collaborative innovation


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INSIGHT 1:THE SCOPE OF

INNOVATION IS BROAD



Innovation as a Broad Spectrum Approach

Operations

Organizational

Design

Business

Models

Networks,

Technology,

Infrastructure

Products

& Services

Marketing

Innovation in wireless carriers can happen in several places


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INSIGHT 2 :INNOVATION SHOULD

LEVERAGE CORE

COMPETENCE



Views from the sages

vs



Innovation in Products & Services

Product

Development

DiversificationMarket

Development

Market

Penetration

NewExisting

New

E

xisting

Markets

Products

Its all about core competency. But should a carrier move beyond this?


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INSIGHT 3:THE BENEFITS OF

INNOVATION ARE VARIED


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Benefits of Innovation

Create new revenues

Improve margins

Nullify rivals competitive moves

Improve loyalty / Reduce churn

Defend market position

As an alternative to advertising

Improve customer lifetime value

Corporate social responsibility


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Evidence from the Innovation Radar H1 2010

Leadership Potential

Goodwill PotentialDefense Potential

Growth Potential

UniqueMe too

N

iche

MassMarket

Italy: Telecom Italias

Line@Medica Diabete service

Global: Vodafones security

solution from F-Secure

USA: Verizon Wireless

Backup Assistant

Norway: Telenors WiMP music service

Malaysia: Maxis

mobile jukebox

India: Reliance to offer cartoon comics

Nigeria: Starcomms

StarTrack location service


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What the categories mean

Strategic benefit Description % of H1 2010service launches

Leadership

Potential

Services that are unique in their domestic

market, and that have a strong possibility of

becoming mass market products.

66%

Growth

Potential

Services that are me too in their domestic

market, but that still have the potential to

become mass market services.

15%

Branding

Potential

Services that are unique in the market. However,

they are only suitable for a niche marketsegment.

15%

Defensive

Potential

Services that are me too in their domestic

market, and are aimed at a small, niche market.

4%


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INSIGHT 4:THE SUPREMACY OF

COLLABORATIVE

INNOVATION


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Collaborative, Open Innovation

Suppliers

Substitutes

New

Entrants

Customers

Rivals

Complementers

e.g App

developers

Collaborate with every stakeholder within the ecosystem even those

outside Porters 5 forces

The forces

facing Carriers


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Examples from OvumsMobile Services

Innovation Radar


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Examples from the Radar AT&T USA

Oct-09 Consumer Personalisation AT&T is to launch its UpperClass mobile application for colleges and universities

that extends the college experience to students mobile devices.

Nov-09 Consumer Location based

services

AT&T is to partner with Rave Mobile Safety, to provide location-based

safety services (Rave Guardian) to mobile subscribers at higher education

institutions throughout the United States.

Rave

Mobile

Safety

Jan-10 Consumer Mobile Voice AT&T is to introduce noise suppression technology into its custom-specified

handsets from early 2010. Audience

Mar-10 Consumer Mobile Music AT&T launched a new music service that combines all of the key mobile music

services into one AT&T application.

Mar-10 Enterprise Application

Store/Portal

AT&T has revamped its online Small Business Mobile Application Recommender

Tool (SMART).

Jul-10 Enterprise Mobile Money AT&T has partnered with Apriva to deliver new payment solutions AprivaPayTM

and AprivaPay Professional.

Apriva

Aug-10 Consumer Mobile TV/Video AT&T has launched a U-Verse mobile app which gives U-verse subscribers the

ability to download and watch popular TV content on their iPhone.

Apple

Dec-10 Consumer Mobile Voice AT&T has launched a video relay service app for iPhone 4 which will enable deaf

and hard of hearing customers to make VRS calls.

Apple

Jan-11 Enterprise Mobile Security AT&T has partnered with McAfee to offer the McAfee Enterprise Mobility

Management (McAfee EMM) software.

McAfee


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Examples from the Radar Verizon Wireless USA

Oct-09 Enterprise Location based

services

Verizon Wireless announced at the CTIA that it is to offer onCare, an application

that, among other things, enables health managers track field workers.

Oct-09 Consumer Location basedservices

Verizon Wireless is to partner with Smarter Agent to offer an application thatenables customers to search for real estate information on their mobile phones.

SmarterAgent

Mar-10 Consumer Mobile Money Verizon Wireless is to launch Danals BilltoMobile payment service, enablingcustomers to charge online purchases of digital goods directly to their monthlyVerizon Wireless bills.

Danal

Mar-10 Enterprise MobileMessaging

Verizon Wireless has launched an entreprise messaging solution which enablescompanies to send 450-character text messages to their workforce or customers.

Apr-10 Enterprise Location basedservices Verizon is to offer TeleNav's business mobility products which allows organizations

field personnel to exchange data with the back-office using their smartphones. TeleNav

Jun-10 Enterprise MobileAdvertising

Verizon Wireless will partner with Zoove to license StarStar codes for US retailbrands.

Zoove

Jun-10 Both Mobile Voice Verizon has launched "Group Communication" that allows customers to assign acalling list of up to 20 wireless or wireline phone numbers to a unique dialingnumber.

Jun-10 Both Personalisation Verizon has launched the Backup Assistant(SM), a wireless application that savesand updates a copy of the phones address book to a secure website.

Jul-10 Consumer Mobile Music Verizon has partnered with mSpot to offer mSpot Radio

. mSpotOct-10 Enterprise Services

ManagementVerizon Wireless has unveiled a version of its mobile worker managementapplication, Field Force Manager app for Android devices.

Google

Nov-10 Enterprise ServicesManagement

Verizon has partnered with XATA to offer the XATA Turnpike fleet management andcompliance solution.

XATA

Jan-11 Consumer Mobile TV/Video Verizon Wireless has unveiled plans to offer Sling Media's subscription service thatwill give customers the ability to watch their home TV on new 4G devices.

SlingMedia

Mar-11 Enterprise Mobile TV/Video Verizon Wireless has partnered with Lextech Labs to enable users of Lextech Labs

iRa C3 product to view live and recorded video surveillance feeds on smartphones.Lextech

Labs


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Examples from the Radar Other players

Sep-10 UAE Etisalat Etisalat has launched a service that enables customers to back up and protect theirpersonal data on their mobile devices.

Sep-10 Indonesia Indosat Indosat has launched Evolving Systems' dynamically allocated SIM solution. EvolvingSystems

Sep-10 Portugal Vodafone Vodafone Portugal has launched the Vodafone One Net, bringing together fixed,mobile phone and internet services.

Sep-10 Global Orange Orange has launched HD voice services to UK businesses, becoming the first operatorto do so in the market.

Oct-10 Ghana MTN MTN Ghana has launched Comviva's Virtual SIM service, enabling customers withoutphones to use other people's phones.

Comviva

Oct-10 Bangladesh Banglalink Banglalink has partnered with Comviva to launch an mWallet service. Comviva

Oct-10 Qater Vodafone Vodafone has launched a Facebook reload service for its prepaid subscribers. Facebook

Oct-10 Bulgaria Globul Globul has launched its WAZ'UP portal, offering clients access to e-mail, socialnetworks, chat and file storage and sharing via their mobile phones.

Oct-10 Palestine Jawwal Jawwal has partnered with Info2cell to launch Al Iman Messages, a new MMSservice that will allow subscribers to receive Islamic-themed multimedia messages.

Info2Cell

Oct-10 Fiji Digicel Digicel is to partner with the Water Authority to enable its Digicel Mobile Moneycustomers to pay their water bills via the service.

WaterAuthority

Oct-10 UnitedKingdom

O2 O2 has launched a a large-scale location-based mobile marketing service, enablingbrands to deliver relevant SMS and MMS to consumers in a more targeted way.

Starbucks &L'Oreal

Oct-10 UAE Etisalat Etisalat and Alcatel Lucent have partnered to launch a permission-based mobileadvertising service in the UAE.

Alcatel Lucent

Oct-10 Kenya Safaricom Safaricom has expanded its M-Pesa money transfer scheme to supermarkets Supermarkets

Oct-10 Europe Telefnica Telefnica's Jajah has launched a Facebook app that enables users to make free voicecalls.

Facebook

Oct-10 DominicanRepublic

Claro Claro Dominicana has launched a mobile email and synchronization service based onSynchronica's platform.

Synchronica


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Conclusion

Innovation is fundamental to the business of wireless carriers

There are many aspects of the carriers business where innovationshould happen

Carriers core competency is key to innovation

But it is not enough!

The benefits of innovation transcend generating new revenues

Carriers can not innovate alone. You either collaborate with others, oryou sink

The Innovation Radar shows that there is a healthy culture ofinnovation among Carriers


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Thank you!

Emeka Obiodu

Senior Analyst, Telco Strategy

+44 20 7551 [email protected]

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