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Transforming Services Delivery "Crossing the Chasm to Telco 2.0"

Telco 2.0 -- Transforming Services Delivery

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Carriers and other service providers are making the transformation to the \'Telco 2.0\' business model by leveraging their networks to distribute Software as a Service (SaaS), Cloud Computing, and many other On Demand Services.

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Page 1: Telco 2.0 -- Transforming Services Delivery

Transforming Services Delivery"Crossing the Chasm to Telco 2.0"

Page 2: Telco 2.0 -- Transforming Services Delivery

Carrier Market has Changed

CoreServices

NewServices

Subscribers

$

TraditionalCompetition

EmergingCompetition

Voice

Hosting

Broadband SaaS Web 2.0

Business Impact:• Commoditization• Declining Profits• Subscriber Churn• Marketshare Loss

What is the impact on business models?

Page 3: Telco 2.0 -- Transforming Services Delivery

Business Models are Changing

How will carriers make money?

Page 4: Telco 2.0 -- Transforming Services Delivery

Revenue Sources are Changing

What does it mean to be a 'carrier'?

Page 5: Telco 2.0 -- Transforming Services Delivery

Telco 1.0 vs. Web 2.0

• Web 2.0 revenue model is inverse of Telco model• Web 2.0 providers generate higher profits than Telcos• Web 2.0 overall market growth much higher than Telcos• Yet Telcos provide customer access...

Revenue Share Telco Web 2.0

• Services

• Platform

• Core Network

• Access Network

• Licenses

Market Growth Low Rapid

$$

low

lowhigh percentage

high percentage

Who 'owns' the customer?

Page 6: Telco 2.0 -- Transforming Services Delivery

Defining Customer Value

Services Delivery• Network Expertise• Market Reach• Quality of Service

Services Creation• Content Expertise• Time to Market• Continuous Innovation

Web 2.0 Telco 2.0

Boundaries will blur, but what's your primary focus?

Page 7: Telco 2.0 -- Transforming Services Delivery

Converged Services ProviderAggregating Core and External Services

SMBs

SOHO

Verticals

Enterprise

ApplicationServices

IT/ManagedServices

Telephony Services

Customer Value:• One provider• One bill• One log-in• One view• One helpdesk

Trusted Provider

ConvergedServices

How can carriers transform?

Page 8: Telco 2.0 -- Transforming Services Delivery

Telco 1.0 Approach won't Work

• Millions in CAPEX and OPEXo Silo'd services deliveryo Technology stack built ground-upo Many integration touch-pointso High maintenance

• Limited flexibilityo Oriented towards single serviceso Resource-intensiveo Limited new deployments per year

• Long development cycleso Time-to-market, and profit, for delivering

new services

Challengeto

Revenue

Avoiding the time-to-market trauma...

Page 9: Telco 2.0 -- Transforming Services Delivery

"As for service creation, there's a need for new investment here, in things like Jamcracker."

"You clearly can't have projects that spend 6-12 months working on OSS BSS integration any more."

Transcending Transformation(Making Change Work)

Crossing the chasm to converged services...

Steve Zimba Managing Director Global Telecoms Business

Page 10: Telco 2.0 -- Transforming Services Delivery

Jamcracker Delivers On-Demand

Wholesale best-of-breed value-added services• Established processes for sourcing, integrating, testing, branding, bundling, and delivering

on-demand services• Master distribution agreements support multi-tiered services delivery• Dozens of "off the shelf" solution partners with >100 service offerings

 

Provide infrastructure, operations, support, and programs for branded on-demand services marketplaces

• Enabling distribution partners to rapidly source, bundle, and sell new value-added services• Ability to rapidly on-board core carrier services and local ISVs, allowing value-added service

bundling• Unified provisioning, single sign-on, administration, billing, and support• With minimal cost, effort, and risk• Technology and services in development since 1999

Offering everything from A to Z for services delivery...

Page 11: Telco 2.0 -- Transforming Services Delivery

A to Z Includes

• ISV Vendor Management, On-Boarding & Settlement• ISV Self Service – Integration Portal• Hosting• Portal(s) & Catalog(s) for Every Market Segment• Order Management• Identity Management and Single Sign-On• Provisioning• End User Services Administration• Help Desk – Ticketing• Support – Unified 1 & 2• Billing & Metering• SLA Services Monitoring• Product Management & Reporting• Integration Orchestration• Global Services Distribution Ecosystem• Services Market Launching & Testing• Sales & Marketing Support• Multi-Tier Distribution• Unified End User – Business, Consumer, Mobility Interface

Let's put theory into practice...

Page 12: Telco 2.0 -- Transforming Services Delivery

Carrier Business Case Study

• Business Objectiveso Further monetize broadband investment through service differentiationo Expand markets without expanding networkso Expand business model for future earnings growth

• Market Approacho Offer broad array of on-demand services to grow net new customer

acquisitiono Differentiate "cash cow" broadband offerings via bundled services to

reverse margin erosion / churno Get to market quickly and cost-effectively with a flexible foundation for

future growth

Quickly, efficiently, profitably...

Page 13: Telco 2.0 -- Transforming Services Delivery

Carrier-Branded SaaS Marketplace

Help Desk Support

UserManagement

Billing & Settlement

Services Provisioning

SecurityServices Integration

Jamcracker Services Delivery Network

Jamcracker Solution Partners Carrier Partners Core Services

BroadbandHostingMobile

NetworkingVoice

CustomersLocal ISVsChannels

Carrier - Jamcracker Partnership

Page 14: Telco 2.0 -- Transforming Services Delivery

Federated Services DeliveryUniversal Services, Localized Delivery

Help Desk Support

UserManagement

Billing & Settlement

Services Provisioning

SecurityServices Integration

Jamcracker Services Delivery Network

Marketplace Partners

Solution Partners

Others...

Page 15: Telco 2.0 -- Transforming Services Delivery

Carrier's Perspectives on Jamcracker

• Market-leader in pure-play SaaS delivery• Met all functional requirements• Demonstrable, 'out-of-the-box' solution

o Lower implementation cost / improved speed to marketo Leverage ongoing development for global JSDN Telco partners

• Provides a catalogue of pre-enabled applications – with existing connectors and commercialso APIs and roadmap for integrating with other systems

• Established program for on-boarding new ISVs • Open source / non-aligned• Objectives aligned through revenue share agreement

o Sales and marketing support

• Flexible commercial model enabling selective insource/outsource functions

Delivering Web 2.0 services via Telco 2.0...

Page 16: Telco 2.0 -- Transforming Services Delivery

Transformation is Good Business

Service Bundles

Subscribers

$

Business Gains:• Differentiation• Increase Profits• Subscriber ARPU• Marketshare Gain

Expanded OfferingsVoice

Hosting

BroadbandSaaS   Web 2.0

Core Services

New Services

Page 17: Telco 2.0 -- Transforming Services Delivery

Change Benefits Everyone

Customers- One-stop-shop of many best-of-breed services- Single point of purchasing, billing, and support- Unified provisioning and user experience

Carriers- Increase stickiness, reduce churn- Grow net-new ARPU- Increase sales/channel productivity- Bundling differentiates core services

ISVs- Expand distribution- Bundle offerings with new services

Page 18: Telco 2.0 -- Transforming Services Delivery

The Future is Now!

"Voice, video, and data, digitally delivered across interconnecting networks to a variety of different terminals with different uses. As always, the technology takes shape long before its full consequences for society take place."

"The internet, in particular, is remarkable for its many different capabilities. It is more than just a means of communicating: it is a marketplace, a library, a distribution chain."

Frances Cairncross, "The Death of Distance"