Redshift Strategy 2013
1
The mobile landscape is being shaped by new services and products built on emerging technologies
The battle for mobile revenue
Potential impact on MNOs
£
Emerging technologies
HetNets
TV White Space
New products and services
MB
Declining voice revenues
Increasing data usage
Increasing mobile connections
2 31
Guidelines:
Graphical/visual presentations take a number of forms, including conceptual, informational and numerical. Applicants are encouraged to consider the most suitable style of presentation for their chosen discussion topic.
Source: Redshift analysis
Redshift Strategy 2013
2
Emerging technologies are driving global connectivity and data consumption
Emerging technologies
Emerging technologies
TV White Space
1
• Wi-Fi is a global standard for wireless communications
• Refined standards will further improve the range and connection speeds of wireless networks
• Smartphones and tablets are driving global connectivity
• Connected devices are leading to an increase in media and data consumption
• “Heterogenous Networks” combine large and small cells to provide seamless coverage
• HetNets may increase connectivity and improve network capacity in order to support increased data consumption
• TV White Space is unused frequencies in terrestrial television bands
• TV White Space may provide cheap internet connectivity in rural areas and developing countries
HetNets
Guidelines:
An example informational slide
Source: Redshift analysis
Redshift Strategy 2013
3
Skype, Viber and WhatsApp are examples of disruptive services which could undermine traditional MNO revenues
New products and services: Skype, Viber and WhatsApp
• Skype is a cross platform communications service specialising in video and voice calls over IP
• 280 million monthly users
• 200 billion daily minutes
• 120 million downloads on iPhones and iPads and over 100 million downloads from the Google Play Store
• Viber is a cross platform communications service specialising in voice calls to mobile devices over IP
• Viber is available on iOS and Android and has recently been launched for web browsers
• Viber reported 200 million registered users in May 2013, up from 140 million in December 2012
• WhatsApp is a cross platform instant messenging application
• WhatsApp is available on iOS, Android, Blackberry, Windows phone and Symbian
• WhatsApp reported more than 200 million monthly active users in April 2013
• WhatsApp reportedly handles 8 billion inbound and 12 billion outbound messages per day
2
Source: Skype, Viber, WhatsApp, press articles, Redshift analysis
Guidelines:
An example case study slide
Redshift Strategy 2013
4
MNOs will be challenged by an increase in mobile traffic and plateauing revenues
Potential impacts on MNOs
Global mobile revenue Global mobile trafficGlobal mobile connections
2010 2011 2012 2013 2014 2015 2016 2017 -
300,000
600,000
900,000
1,200,000
Global non-voice revenue, $mSeries3
2010 2011 2012 2013 2014 2015 2016 20170
2,500
5,000
7,500
10,000
Connections (m)Mobile Broadband connections (m)
2009 2010 2011 2012 2013 2014E
-10%
0%
10%
20%
30%
Global Mobile Traffic as % of Total Internet Traffic
Note: Machine-to-machine connections assumed negligible Source: Informa, Ovum, Redshift analysis
3
• Number of mobile connections driven by reducing equipment costs and demand for mobile broadband
• MNOs have an incentive to create pricing structures based on data services
• MNOs are supporting high cellular data usage without gaining proportional data revenues
Guidelines:
An example numerical slide