mobile industry –strategic considerations chetan sharma · the pacific islands – a central...

MobileIndustry– StrategicConsiderations

ChetanSharmaITUASPCOESeniorManagementTraining

OnTelecomStrategyforthePacific– NextFiveYears

16-18November2015Nadi,Fiji

FRAMEWORKFOR4TH THINKING

Revenu

e

Subscriptions

VoiceMessaging

Access

Apps

4th waveservices• Increasepenetration• Upgradenetwork• Introducenewservicesonthecurve• Bundleservices• Decreasecost• Regulatorystimulusasneeded

Growthintelecomservices

©ChetanSharmaConsulting,2015.AllRightsReserved

MobileOperators:StrategicImperatives

Source:Operator’sDilemma(Opportunity): TheFourthWave

©ChetanSharmaConsulting,2015.AllRightsReserved

VOICE:GROWà HARVEST

• Infrastructure– Cable– CellularDeployment

• ComplimentedbyWiFi– RemoteIslandcoverage– SatelliteServices– NetworkSharing– Government incentives

• ImproveAffordability– IncreaseReach– Cheaperdevices– GranularPlans– Morechoices,bundles (devices, services)– Competition

• MVNOs– Government incentives

©ChetanSharmaConsulting,2015.AllRightsReserved

VOICE:HARVESTàMAINTAIN

• Affordability– IncreaseReach– Cheaperdevices– GranularPlans– Morechoices,bundles– Competition– Governmentincentives

• AlternateOTTmodels

©ChetanSharmaConsulting,2015.AllRightsReserved

VOICE:MAINTAINà TRANSITION

• Voiceisbundledinwithdataservices• IPbasedOTTservicesdominate

©ChetanSharmaConsulting,2015.AllRightsReserved

DATA&DIGITAL:Whereisyourgrowthteam?

• AllleadingOTTplayershavegrowthteamswhofocuson– Acquiringnewsubs– Introducingexistingsubstonewservices– Convertinglatentsubsintoactivesubs– Buildoffers,strategies,marketingaroundaddingnewcustomersastheirsolefocus

• Similardisciplineisrequiredattheoperatorleveltofocusongrowthandnewareas

©ChetanSharmaConsulting,2015.AllRightsReserved

DATA:GROWà HARVEST

• Infrastructure– Cable– Cellular Deployment

• WiFi• Movefrom2Gto3Gto4G

– SatelliteServices– RemoteIslands– NetworkSharing– Governmentincentives

• Affordability– IncreaseReach– Cheaperdevices– GranularPlans– Morechoices,bundles– Competition

• MVNOs• AccessRegulations• Wholesaleregulations

– Governmentincentives– OTTframeworktodogranularservices (e.g.Lotusflare)

©ChetanSharmaConsulting,2015.AllRightsReserved

DIGITAL:CreatingDemand

• Prioritizeapplicationareas– Govt-2-Citizens– Operator-2-Consumers– OTT-2-Consumers

• Mainapplicationareaswillmirrorexistingindustries– GovtServices

• EmergencyManagement• FinancialServices• Education• Agriculture• Mining• Health

– CommercialServices• Mining• Agriculture• Tourism• Fishing• Entertainment• Communications• Dataservices

©ChetanSharmaConsulting,2015.AllRightsReserved

CaseStudies:Leading4th wavemobileoperators

ApplicationAreasApplicationArea ActivityType E.g.operator

Health Remotepatientmonitoring,Compliancemanagement AT&T,Verizon

Counterfeitdetection AfricanOperators

Telemedicine Bharti,Telefonica

ConnectedCar SenddiagnosticstotheOEM,dealer AT&T,Telefonica,Verizon

Buildconsumerservices– navigation,apps,entertainment

AT&T,Sprint

Cloud Hosting,Storage,Applications Verizon

Content Video Verizon,Telefonica

Security End-to-endenterpriseofferingacrossmultiplecountries AT&T,Verizon

Consumersecurityofferingfordevices,Homesecurity AT&T

Payments B2B Vodafone,Telefonica

B2C Vodacom,Smart

©ChetanSharmaCo

nsultin

g,201

5.AllR

ightsR

eserved

ApplicationAreas

ApplicationArea Activity Type E.g.operator

M2M Connectivity,Roaming Vodafone, Telefonica,AT&T,Verizon

Environmental Sensorsinthephonecollecting dataandproviding info NTT DoCoMo

Consumer Digital services likemusic(service builtandoperated) ChinaMobile

Agriculture Commoditypricing,disease info Developing nationoperators

SmartCity Working withcities toinstall sensorstomanagetraffic,env,infotocitizens

Telefonica

IndustrialAutomation Puttingsensorsinjetengines,turbines,operations AT&T

Education Language courses Bharti

Analytics Analyticsasaservice Telefonica,AT&T,Sprint

©ChetanSharmaConsulting,2015.AllRightsReserved

Howcanyouparticipateonthe4th wave?

• Collaboration is the only way to go– To have a shot at any of the vertical areas, one has to have scale– Just like collaborating on handset procurement gives some scale, working

together on a platform that can be jointly rolled out is essential• Individual corporate strategy is generally not in sync• Work with partners who have developed vertical expertise to help you address the

market opportunities• Collaborate/Resell Regional Operator solutions in your markets

• What’s your platform for innovation?– Using a combination of LTE and WiFi provides better ROI and quicker

time-to-market– An all-IP network enables new and/or enhanced services – voice,

messaging, content, enterprise– Modular network components to launch new services

TransformationChallenges

• Acknowledgement• Organization/Realignment• Rethink Platform• Communication• Execution

©ChetanSharmaConsulting,2013

Organizingforsuccess

©ChetanSharmaConsulting,2013

SettinguptheDigitalPractice

• Setupadigitalgroupseparatefromcoreoperations– Digitalgroupdirector’scharteristo• Identifyresources• Secureinvestment• Buildtheplatform• Identify2-5servicesthatcanbelaunchedinshort-term• Engagepartnersandcollaborators

• Failuresshouldbeembracedandconsideredasteppingstonetosuccess

• Buildlocalcapability

SettinguptheDigitalPractice

• Someobviousservicesforcollaborationseemtobe:– EmergencyManagement– MobileMoney– IndustrySectorApplications

• Tourism• Agriculture• Fishing• Mining• Health

• Involveallrelevantstakeholdersforinput• Involveactualusersinpilotstoiterateondesignandfunctionality• Recruitchampionsandtrainersofappsinthecommunity

Howtogoaboutbuildingapps

• Solutionshaveto“always”focusonaspecificneedthatneedsaddressing– Howcanefficiency,simplicity,andubiquitybeintroducedintothedesignofthesolutionset?

– Solutionshouldtrytobeplatformanddeviceagnostic– MobileshouldbepartofabroaderICTinitiative– Thereshouldbeaclearpathfrompilot,initialtestingtobroaddeploymentandadoption

– Initiativesacrossvariousverticals– agriculture,finance,health,etc.shouldbeconnected

©ChetanSharmaConsulting,2015.AllRightsReserved

Apps

• Pilotsgalore!Migrationfrompilottoimplementationoftentough

• Pilotsneedtobepartofalongerroadmapforassessingprogressandfunding

• Citizensneedtobeactivelyinvolvedinthedesignphase

©ChetanSharmaConsulting,2015.AllRightsReserved

PolicyQuestions

• Security• Privacy• DataCollection• UbiquityofSolutions/Apps• DeviceSupport• Liability• Other

©ChetanSharmaConsulting,2015.AllRightsReserved

Privacy

• Howisdatacollected– opt-in/opt-out• Howisdataused• Howisthedatashared• Whereisthedatastored• Howareviolationsdealtwith• Howlongisthedatastored

©ChetanSharmaConsulting,2015.AllRightsReserved

Regulatoryframework

• Developed– Europe:Strictestprivacypolicies– NorthAmerica:Regulatorybodiesarestartingtogetinvolvedw/privacyviolations.Approvedsmartphonestobeusedformedicalpurposes

• Developing– Laxpolicies,notenforced

©ChetanSharmaConsulting,2015.AllRightsReserved

Incentivestodevelopforruralareas

• PhysicalIsolation,poorinfrastructure,fewassets,weakITaccess,weakinformationflow

• Greatneedfortimelyinformationandresponse• Integrationoflocal,regional,andinternationalsupplyandvaluechains

• Volatilityofcommoditymarketsandfoodsecuritychallenges• Wideavailability andaffordabilityofmobile• SMSaslowtechbutpowerfulmobiletechnology

©ChetanSharmaConsulting,2015.AllRightsReserved

NewBusinessModels

• Granulartieredpricing• Shareddatapricing• Personalizedpricing• Equipmentleasing(Smartphonesandotherdevices)• Solutionpackaging• QoSbasedpricing/solutions• CustomizedOTTservices

©ChetanSharmaConsulting,2015.AllRightsReserved

Private-PublicCollaboration

• Funding• TechnicalCollaboration• RegulationsandPolicy• DeveloperEcosystem• ConsumerEducationandawareness

©ChetanSharmaConsulting,2015.AllRightsReserved

ChallengeforRegulators

• PromoteCompetition– Newoperators– NewMVNOs– AccessRegulations

• Ensurethatthewholevalue-chainisbenefittingfromthemobileappsexplosion

• Localdevelopercommunityshouldbedeveloped

©ChetanSharmaConsulting,2015.AllRightsReserved

StrategicFactors

• Broadbanddeployment• Availabilityofaffordabledevices• Policyandregulationstoprotectconsumer• Policyandregulationstopromotecompetition• TrackindustryKPIs• Investmentinkeyareas– infrastructure,cloud,security• ClearG2Cinitiativesandroadmap

– Collaborativeapproachbetweenministries• Localcapacitybuilding• Localization• Leverageexistingsynergiesandframeworks• Platformapproachforcollaborationandreducetime-to-market• Datacollection,privacy,andsecurity

©ChetanSharmaConsulting,2015.AllRightsReserved

CollaborativeFrameworkForDigitalServices

• Fordigitalservicestothrive,acollaborativeframeworkisneededinthepacificislands– Acentralcoordinatingauthority(perhapsPITA)

• Workonthebasicroadmapoftheplatform• Requirementsforthekeyapplications

– Agriculture,Tourism,Mining,Fishing• Capacitybuilding

– Technicalrepresentationfromeachinterestedpartytofeedintherequirementsfortheroadmap

– AllowcustomizationasneededontheUXandappdesign– Backendrunsonacloudservicethateveryonecantakeadvantageof

©ChetanSharmaConsulting,2015.AllRightsReserved

InSummary

• Morechangeinthenext10yearsthantheprevious100• Mobilewilltransformeveryindustry• Opportunitiesabound.– NewServiceAreas– Commerce,Remittance,Games,Health,Retail,Advertising,Energy,etc.

©ChetanSharmaConsulting,2015.AllRightsReserved

ThankYou.Questions?ChetanSharmachetan@chetansharma.comTW:@chetansharmahttp://www.chetansharma.com

MobileFutureForwardinfo@mobilefutureforward.comTW:@mfutureforwardhttp://www.mobilefutureforward.com

Research.Technology.Strategy.IntellectualProperty.ThoughtLeadershipSummits.