alex leslie etis krackow

Billing & Revenue Management Working Group

Krackow, 28 June 2013

How to compete with the OTT players and mone?ze new services

Alex Leslie Publisher

BillingViews



•  Scary Sta?s?cs

Revenues down $13.9 billion in

2011

Losses of up to $54

billion by 2016 -‐ Ovum

Revenues down 40% by 2015 -‐ STL

SMS Hit By Messaging

SMS



O



OTT con



•  Scary Sta?s?cs (2)

We are entering the ZeZabyte era! -‐ Cisco

1 ZB = 1 000 000 000 000 000 000 000 bytes

1 terabyte = 10 12 1 Petabyte = 10 15 1 Exabyte = 10 18 1 Zetabyte = 10 21



•  Scary Sta?s?cs (2) – Global IP traffic to reach 1 zetabyte by 2015 – Traffic will grow at 23 percent p.a. thru 2017 – Busy hour Internet traffic increased 41 percent in 2012

– Busy hour traffic in 2017 will be 865 Tbps – the equivalent of 720 million people streaming an HD video simultaneously

– Video traffic will be 69 percent by 2017 Cisco Visual Networking Index



Which is a bit OTT



Mind you….



•  The Scariest Sta?s?c

–  Is that operators get virtually none of the value and therefore the revenue (and the OTT players are beginning to charge)

At the moment…



•  The Solu?on? –  Ignore – Block – Compete – Partner

?



•  The Solu?on? –  Ignore – Block – Compete – Partner



•  Compete? – RCS/Joyn



•  The Solu?on? –  Ignore – Block – Compete ?? – Partner?



•  Rumours of SMS’s death greatly exaggerated

– Cri?cal communica?ons channel for operators – Crucial part of Direct Operator Billing (mobile payments will be worth $617 billion by 2017 – Gartner)

– Big Brands are moving to precision marke?ng •  Texts are personal, reliable, global

The Death of SMS



•  And (oddly) voice in a world of data?

– Quality will become a differen?ator – Skype challenged operators to open a dialogue with them – at TM Forum Management World

The Death of SMS



•  Apps, search, social?

– Help merchants avoid the Apple Tax – Help customers go social – Help customers buy stuff

DOB Survey



•  Video -‐ nasty?

– Partner for proper QoS •  Customers will not blame operators

– Use data to serve adverts



•  Tools or Weapons?

– Data (Big, but Beau?ful) – Billing rela?onship (Trust is key) – Reach



•  CONCLUSION

– OTT players as partners – Change thinking to ‘Internet’ – Real ?me mentality



Thank You

Alex Leslie [email protected] www.billingviews.com

alex leslie etis krackow

Technology