Embed Size (px)
Citation preview
What's hot in the mobile world?VERDIKT, 1 November 2010
Dagfinn MyhreSVP & Head of Research AgendaTelenor Group
Our industry is experiencing a rare expansion in the importance of our services
• Mobile operations in 11 markets across the Nordic region, Central and Eastern Europe and Asia
• A stake of close to 40% in VimpelCom Ltd, operating in 10 markets
• Headquartered in Norway
• Among the top performers on Dow Jones Sustainability Indexes
• Revenues 2009: NOK 98 bn
• Listed on the Oslo Stock Exchange
Among the largest mobile operators in the world
More than 180 million mobile subscribers*
Aproximately 40 000 employees
Present in markets with 2 billion people
NorwaySwedenDenmark
Central and Eastern Europe
HungarySerbia
Montenegro
Nordic
Thailand
Malaysia
Bangladesh
Pakistan
India
Asia
Russia
Ukraine
Kazakhstan
Georgia
Uzbekistan
Tajikistan
Armenia
Kyrgyzstan
Cambodia
Vietnam
Vimpelcom
Telenor Group is an international provider of tele, data and media communication services
Telenor Group mobile operations
Nordic
Norway
Sweden
Denmark
Central and Eastern Europe
Hungary
Serbia
Montenegro
Asia
Thailand
Malaysia
Bangladesh
Pakistan
India
VimpelCom Ltd.
Russia
Ukraine
Kazakhstan
Georgia
Uzbekistan
Tajikistan
Armenia
Kyrgyzstan
Cambodia
Vietnam
Telenor Group holds 39.6% of the economic ownership in VimpelCom Ltd.
2231
53
83
115
143
164
2002 2003 2004 2005 2006 2007 2008
Mobile customer yearly growth 2002 - 2009
174
2009
Yesterday Today Tomorrow
Industry changes will create continued opportunities for growth
Our industry has changed…
• From monopoly to market competition
• From national to global players
• From telecom to data technology
• High growth
…and the change will continue at high speed
• Growth flattening
• Increased competition
• Continued technological development with explosion in mobile data traffic
• Stronger focus on partnerships and the enabler role
• Software based services
• Customer power will grow
• Communities and social networks
Growth is driven by technology shifts, innovative services and changing customer behavior
-
1 4,59
28
45
96
Plain GSM
Year 1995
(10 MHz)
GSM/EDGE
Year 2010
(10 MHz)
3G Rel.99
(15MHz)
Turbo-3G
(HSPA)
(15MHz)
LTE 1800
(10 MHz)
LTE 2600
(20 MHz)
Tota
l cap
acit
yp
er s
ite
(M
bp
s)
Evolution in site capacity from GSM to LTE- downlink, sum of voice and data
Nokia N97 iPhoneSE w595Nokia 6300Nokia 1112
Feature phonesInternet/
smartphonesVoice-only
Five-year evolution in device prices
50% 20%30%
Changes in customer behavior: Social networks and the way young people communicateNew services
New competitive dynamics and interdependencies
HardwareOperating System
User Interface
Online Services
Device apps
Content Market
Apps market
Device User experience
Mobile operators
Device vendors
Internet companies
Core competence Recent moves
Core competence
Recent moves
Core competenceRecentmoves
Communi-cation
Example: Apple App store
Example: Google Android
Example: Orange App shop
Google: Mobile first
• Most important segment for internet companies in thefuture
Three important trends
1. Improvements of hardware in mobile devices
2. Increased number ofconnections between services
3. New services in the cloudEric Schmidt – CEO Google
February 2010
Changing mobile industry – usefulness and user experience important
• Major players lead the way
• Mobile applications important
• Large memory, high quality screens, music, camera, 3G, WiFi, GPS …
Innovation is key to our future
We innovate in services that will change the shape of communication and our business - and we do this in close cooperation with our customers and partners in an open landscape of research and exploration
Expand and defend core
business
Develop new business
Create options for future business
Time horizon
Un
certa
inty
Horizon 1
Horizon 2
Horizon 3
Innovation across three horizons- balance between shorter and longer term initiatives
‒ Customer and brand experience
‒ Based on the daily need of people and business
‒ Co-creation and open innovation processes with customers
Customer driven innovation
Mature markets ….
Emerging markets ….
Mobile consumer behaviour segmentation model
May overlap
Source: Forrester Research
Network effects
When the customers value from a product depends on who else has adopted the product we speak of a
network effect
M. Katz and C. Shapiro, AER, 1985
Spreading of new services (Norway)
MySpace
• Facebook and Twitter dominate
• Comprehensive service innovation for social networking on mobile phones
• More than 200 mobile operators in 60 countries offer mobile Facebook solutions*
• There are more than 150 million active users currently accessing Facebook through their mobile devices*
• People that use Facebook on their mobile devices are twice as active on Facebook than non-mobile users*
Social networks go mobile
* Facebook 2010
Telenor research shows that you want what your friends want
• Understand social influences on service adoption
• Better user experience
• Better service offering
Creating value through service innovation
Access to the Internet
-
Norway 85.7%
Asia 18.5%
World average 24.7%
Europe 50.1%
North America 73.9%
Internet users (% of population)
India 7%
South Korea 96.8%
The mobile broadband opportunity
• Consumers will gradually embrace the mobile Internet, with large country differences
• Access to the Internet will contribute significantly to productivity, FDI, GDP growth, job creation and government revenues
Access to the InternetIt’s about access anywhere, anytime
Access to the InternetA broad range of social benefits
Source: The Boston Consulting Group
Increasing Internet use has extensive social benefits:
• Education
• Healthcare
• Access to government services
• Rural development
Creating value through service innovation
Open innovation
• Opening up fixed and mobile networks through significant investments
• Opening up the value chain
• Partnering spanning from enabling new applications to close cooperation on innovations
Innovation with partners
Open InnovationService enablement
Open innovationLocation based services
Darkslide.Shows all public Flickr pictures at a given location
TV2 SkattelistenShows register of taxplayers based on your location
Open innovationAugmented reality
Theodolite Peaks
London Tube Wikitude
Creating value through service innovation
Financial services
• Telecom and banks/card companies are increasingly teaming up to create new services
• Serving the unbanked - low and variable cost structure through telecom distribution
• Telenor has positioned itself to launch innovative services with high impact in one of the most untapped markets in the developing world
The financial services opportunity
• Telenor Pakistan purchased 51% of Tameer bank, a microfinance bank, in 2008
• Enabling Telenor Pakistan to offer branchless banking
Example: Pakistan
Financial servicesServices based on mobile handsets
Discover
Read
Share
Purchase
Creating value through service innovation
Internet of Things
• Internet of Things a potentially significant market
• Telenor becomes a vital part of the customers’ own product offering
The IoT opportunity
• Global M2M connectivity provider with dedicated organization, product and services - supporting national OpCo value chains
• Separate entity with global focus established in 2008
Example:
Internet of Things
Internet of ThingsICT in healthcare
• Healthcare systems
• Medical sensors
• Automatic warning aid
• Smart house
• Robots
• Tracking technologies
Internet of ThingsTelenor Home Monitoring Trial
• Identify drivers and inhibitors
• Identify organizational effects and potential for cost reductions
• Evaluate the system’s impact on the client’s and close relatives’ well being
• Identify aspects crucial to user accept and adoption
• Understanding the markets, customers and brand positions to deliver excellent customer experience
• Open innovation in the new converged landscape – service innovation
• Internet of Things – platforms, ecosystems and business models
• ICT in healthcare – services, platforms and cost benefit
• Mobile payment - how to make payment more convenient and secure
• SFI/NFR application together with NHH and several large partners:
– Center for Service Innovation - CSI
Further research challenges- who will take part?
Growth comes from truly understanding the needs of peopleto drive relevant change
