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2008 Alan Quayle

The

Imperative

to Open the

Network

Alan Quayle Business and Service Development

www.alanquayle.com/blog

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2008 Alan Quayle

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2008 Alan Quayle

What‟s Changed?

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2008 Alan Quayle

Re-Launch

An Operator‟s Product Development Process

Opportunity

Identified

Market

Research

Find Budget

New product

development process Launch

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2008 Alan Quayle

What‟s Changed?

Expectations

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2008 Alan Quayle

What customers expect

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2008 Alan Quayle

Why Aren’t Your Customers Already Using These Applications?

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2008 Alan Quayle

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2008 Alan Quayle

Customer’s Critical Math (US Focused)

• Cost of premium Cable per year ($137.5) $1650

• Cost of premium Satellite $1460

• Cost to Replace Cable

– Digital antenna (local free to air) Free-$50

– Hulu+ $120

– Joost, YouTube, Fox, other websites Free

– Netflix on Demand $120

– Cost of box (TiVo, PS3, Wii, Xbox, DVR) Free-$80

– Amazon VoD $778

(one show per week night in HD, 2:99)

• Total $1018-1148

• Cost of laziness $632-312

In the US people are already starting to migrate to interactive consumption: generally tech-savvy

early adopters, especially where Sports Package is not a decision criteria. GoogleTV and

AppleTV are bringing this awareness to the mass market.

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2008 Alan Quayle

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2008 Alan Quayle

Developer

Perspective of the

Initiatives

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2008 Alan Quayle

Developer Survey on Community Involvement

0% 20% 40% 60% 80% 100

%

Apple AppStore

Windows Mobile Catalogue

Blackberry App World

Android Market

Orange App Shop

Nokia OviStore

Samsung Mobile Applications

Other Operator Store

Working

Worked in past, no longer

Never worked

50 mobile application developers surveyed in June 2009. Roughly 50:50

split between North America and Europe

Critical Exodus!

Developers are voting with their feet, makes the problem far greater

than awareness, you‟ll need to change their minds

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2008 Alan Quayle

Some Developer Quotes

AT&T and Verizon’s developer

communities are broken. We’re no

longer engaged, we’ve focused our

development efforts on iPhone,

Android and Ovi because there is a

clear path to cash (the customer).

An ADC is a large

undertaking, Operators

must resource adequately

to not repeat the problems

of the past.

We have spent 18 months

working with Orange Partner and

achieved nothing. Its simpler to

directly go to the relevant

product manager

They (Orange Partner) select

what apps their customers see!

How is that a developer

community? Isn’t it the customer

that decides; haven’t they learnt

even the basics from Apple!

Operators’ ADCs must

solve the 4 key challenges

facing developers:

distribution, discovery,

predictable process, and a

clear way to make money

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2008 Alan Quayle

Capabilities Application Developers Seek

• Single sign-on

• Address Book API

• Age Verification

• Billing/Charging

• Identity/Authentication

• Location

• Messaging

• Profile API

• File Browsing

• Browser based API

• Presence

• SIP/VOIP/Call Control

• Mobile Lookup

• Connection status

• Discoverability

• Short codes

• Plus lots and lots more……

8 2008 Alan Quayle

Potential Telco API capabilities (from App Vendor Survey)

• Authentication & Single Sign-on

• Presence (device, application, call state) and Availability

• Device Capabilities / Software

• Location (accuracies and freshness), Proximity, Heading, Speed

• Preferences (policies or rules)

• Context – a combination of presence, location, device status, application status, meeting status (calendar), etc.

• Customer data (business intelligence)

• Call Control

• Messaging

• Network address book

• Group List Server (buddy lists)

• Enterprise Mobilization

• VoIP / SIP: tone insertion

• Call Flow: ACD, IVR, CRM, Helpdesk

• Charging / Billing

• Call Log / Call events

• Directory

• Message Store

• Home Network Enabler

• Content Delivery

• Policy (Quality of Service)

• IPTV enablers

• IPTV STB enablers

• Content Enablers

• Collaboration Enablers

• VoIP / SIP call control including invoking supplementary services

• Fulfilment and other BOSS capabilities

• Digital Rights Management

• Device Management

• Local dial in number provisioning

• Ringtone purchase integration

• Video-ringtone platform

• Subscription status

• Mobile Video

• CDR number frequency search

• Calling Name dip

And the list goes on, much further on….. Prioritization is critical

High

Popula

rity

Developers are excited about the

many capabilities and information

an operator has available; there

are 2 business basics that are

much more important

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2008 Alan Quayle

A Large Engaged Customer Base

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2008 Alan Quayle

A Clear Path to Cash

$$$

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2008 Alan Quayle

But is it really that bad?

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2008 Alan Quayle

Google’s Offer You Can’t Refuse?

You will be granted favors, but there will come a

time to pay back...by accepting advertising.

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2008 Alan Quayle

What’s Up Google’s Sleeve?

Google Says:

“Google is in the connection business. Google

is in the business of connecting buyers &

sellers.”

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2008 Alan Quayle

What’s Up Google’s Sleeve?

READ BETWEEN THE LINES.

“Google is in the connection business. Google is in the business of connecting buyers & sellers.”

SELLERS: Advertisers BUYERS: Everyone else.

The sellers’ messages WILL be delivered.

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2008 Alan Quayle

Fundamental Difference in Business Models

Customer

Provider

Means to

an End

$

Telecom Services

$

Hardware & Services

$

Inventory

Advertiser

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2008 Alan Quayle

Global Value Added Service (Telecom App) Survey:

Early Insight

• Currently undertaking a global VAS market analysis – Looking at the top 10 VAS for different regions around the world

Western Europe, LATAM, China, India, Japan, Central and Eastern Europe, North America, etc.

– Understanding regional differences in services, pricing, reasons for success, addressable customers, etc.

• Just a couple of interesting points – Amongst smart phone users (regardless of region – China, India, US, LATAM)

beyond voice, SMS, voicemail and internet access they positively do not use the operator‟s VAS – unless it saves them money (e.g. myFavs in the US)

– Operator VAS main customer base is low-end phones and prepaid customers who do not have easy access to the internet so access content (games, ring-tones and wallpaper) and enterprise customers (VPN, Mobile Office) – this is a temporary situation

• But what about all the hundreds of VAS such as: – Missed call alert, missed call completion, do not disturb, communicator, spending

limits, pay4me, call screening, out of office indicator, bill reminder, sponsored calls / services, rented number, anti-SPAM, find-me follow-me, call back when free…

• Operators have been distracted by “copying” the web and “dysfunctional” guidance of investment analysis (look what they did to the economy)

– You‟re in the communications business, your network should be the easiest way to communicate. It is not. You still use „#784*2*3‟ - that‟s a 30 year old user interface and a bad one at that!

– APIs enable you to embed your communication services everywhere

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2008 Alan Quayle

Open Network Strategy: Consumer

• APIs extend your existing business model into the online world, its not a silo business case

– Share the love with developers Use your business model to compete head-on with the OTT (Over The

Top) providers

– Focus APIs on Communications Enabled Business Processes Enterprises are still prepared to pay – but not for long as Skype, Google

and Apple have their sights set there as well

– Focus on the core of what developers need Large engaged customer base and a clear path to cash

• Customer experience matters above all – Trial to buy is essential for ALL services – Freemium is mandatory

– Sponsored services should be as far as operators go in advertising – your users are your customers not a means to an end

• Operator store front strategy is CRITICAL - DISCOVERY – On Device Portal has been available for near 10 years, Apple showed

the industry how to do it

– Widgetize all communication service, „#784*2*3‟ is a joke not a user interface

NYTimes: Why Are They Exposing APIs?

• Syndication: Drives traffic back to NYTimes.com through links

returned in the APIs

• Innovation: When others build applications and create mash-ups,

we gain fresh insights into how news and information can be

reimagined – Applications we never we would have thought of ourselves

• Journalism: Helps the Times fulfill its journalistic mission by

putting more information in the hands of the public

• Branding: Spreads the Times brand throughout the Web, making

the Times an intrinsic part of finding and reading news and

information online

• New Business Models: As our APIs and the applications built with

them proliferate, new business models based on advertising and

licensing will emerge

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2008 Alan Quayle

Verizon Releases 20 APIs

• Verizon Wireless released 20 different location-,

messaging- and network-based APIs

– Messaging APIs will allow developers to send, receive and

request receipt of text and multimedia messages.

– Messaging APIs will allow developers to offer features such as

“link-to-buy” a product or to allow users to get discounts or

more information about a product or service.

– Location APIs will allow developers to request and incorporate

location information in applications and services, providing

customers with specific offers or improved targeting of offers,

leading to more valuable and useful applications.

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2008 Alan Quayle

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2008 Alan Quayle

Service

Provider

Utility

Connectivity

We’ve been talking about it for over a decade,

but now its the customer that’s going to decide