Telco & Over The Top OTT the New Kids on The Block Who wins a fight between an alligator and a bear?

References:  Telco  Innova,on  Toolbox  –  Ericsson/VisionMobile  

Internet  Trends  2015  –  KPCB  Mary  Meeker  Asymmetric  Business  Models  –  VisionMobile  

Telco  –  OTT  strategies  –  Ovum  OTT  report  –  Detecon  Consul,ng  

Mobile  MegaTrends  2014  -­‐  VisionMobile  

 

@efernandez  

A timeline of disruptions

A change of paradigms

Shifts invalue chainControl vs Profit

Telco vs OTTThe prisoner’s dilemma

Telco Prisoner’s Dilemma

VAS  rev,  billing  &  subs  share  

Telco  A  COMPETE  

Telco  A  SHARE  

Telco  B  COMPETE  

B    small  wins  

A  Small  wins  

B    wins  all  

A    loses  all  

Telco  B  SHARE  

B    loses  all  

A    wins  all  

B  shared  wins  

A  shared  wins  

Today:  Delta    between  small  wins  &  shared  wins    goes  to  OTT  players  (Telcos  lose  to  OTT)  

A closer look at OTT industry

Disruptors create their own habitats (a.k.a ecosystems)

Android strategy: Get eyes to ads Remove-Everything-in-Between

Apple strategy: Best Mobile Experience Better Apps To sell Hardware

Greater incentives for developers

= more & better

apps =

higher user engagement &

stronger ecosystem

=(value capture

strategy)

A Duopoly:iOS > 90% of Value Android > 90% of Volume

OTT ^2:Mobile MessagingNew ecosystems on top.

OTT ^2:Mobile MessagingFree lunch of IM + VoIPMoney is on e-commerce

   

OTT ^2:Like OTT^1, powered by asymmetric business models

OTT^2i.e WeChat vs Telco

OTT:Openness & Interoperability give scale

Telco – OTTStrategies

OTT response strategy

The real cost of doing nothing

OTT & TelcoPartnering

SoftBank customers will be able to sign up for Netflix through SoftBank's shops, website and call centers, as well as through major electronics retailers, Netflix said SoftBank will begin pre-installing the Netflix app on its smartphones for sale after October 2015. Customers of Softbank will be able to sign up for Netflix without having to fill out any payment information. The Netflix fee will be added to users' monthly bill that they receive from SoftBank.

Internet Trends:Understanding OTT habitats

Internet  penetra,on  

Evolu,on  of  Content  Discovery  

The Opportunity in the Enterprise space

Internet  has  not  yet  penetrated  key  corporate  sectors.    This  is  an  area  of  opportunity  in  the    Short  term  for  telco  players  willing  to    Go  the  extra  mile  and  enable  digital    Transforma,on  in  these  ver,cals.  

*Ovum  

Global  Internet  Data  Traffic  growth  is  strong  YoY  at  21%  driven  by  mobile  &  video  

   

Invisible  Threads  

Telco  –  OTT  Partnerships  

Telco & Over The Top: OTT: the New Kids on The Block Who wins a fight between an alligator and a bear?

References:  Telco  Innova,on  Toolbox  –  Ericsson/VisionMobile  

Internet  Trends  2015  –  KPCB  Mary  Meeker  Asymmetric  Business  Models  –  VisionMobile  

Telco  –  OTT  strategies  –  Ovum  OTT  report  –  Detecon  Consul,ng  

Mobile  MegaTrends  2014  -­‐  VisionMobile  

 

@efernandez  

Acknowledgements:    

•  Telefonica  Global  Solu,ons,  Wholesale  Division  •  Boardsfera:  Alvaro  Plaza,  CEO  •  C@SI  Club  de  @migos  de  la  Sociedad  de  la  Informacion  

 @efernandez