the business case for opening the network
DESCRIPTION
Presented at the Emerging Communications Conference 2009.TRANSCRIPT
The Business Case for Opening the NetworkThe Business Case for Opening the Network
Alan Quayle, www.alanquayle.com/blogAlan Quayle, www.alanquayle.com/blog
Strategic Operational
Copying
Typical Operator Business Cases
What’s Changed?
Re-Launch
Operator’s Product Development ProcessOperator’s Product Development Process
Opportunity Identified
18-30 months
Market Research
Find Budget
New product development processLaunch
12-18 months
What’s Changed?What’s Changed?
Expectations
What customers expectWhat customers expect
6-12 months
Weekly
18-30 months
4 months
Developer Perspective of the
Initiatives
Business Case
Scenario AssumptionsScenario Assumptions
• Converged operator in a mature internet centric market• 10 million customers 20:80 prepaid : post-pay split
• Year 1• Silo consolidation across messaging, location and billing• Service Exposure business creation
• Year 2• Initial service exposure capabilities
• Call control, enterprise mash-up, presence
• Year 3• Service exposure expansion
• IPTV, streaming, and quality of service
Year 1 Analogy based on Real World ResultsYear 1 Analogy based on Real World Results
• BT implemented a service creation process transformation project
• Identify and consolidate ‘common capabilities’• BT measured the benefits by the number of people that
managed these common capabilities. • 60% decrease in workforce, a reduction of >1000 staff.
• For the Scenario that would mean a saving of 500 staff • Typically ROI (Return on Investment) within 3 months
• In a small operator, SDP improves an operator’s ability to scale its partner management without increasing headcount
Example Year 2 and 3 ServicesExample Year 2 and 3 Services
• Communication enabled business processes• Enterprise and Voice Mash-ups• Content 2.0• Presence / Location• STB services• User chooses model: Usage, subscription, ad-
supported• Result: $40-75M revenue in Year 3
• Just from ‘key services’ anything else is jam on top
Critical Issues in Opening the NetworkCritical Issues in Opening the Network
• Copy Smart – don’t copy dumb• An operators business is not the same as Apple’s• Don’t be a 40 year old dressed as a 20 year old
• Opening the network impacts all lines of business not just trendy ‘2.0’ stuff• Make business an equal focus
• Its not a ground-breaking business case for revenues• But the strategic impact of doing nothing could be fundamental to the
business
ServiceProvider
UtilityConnectivity
We’ve been talking about it for over a decade, but soon its the customer that’s going to decide