Transcript Slide 1

From Infrastructure
to Ecosystem
Customers are holding our hands
Abu-Dhabi TELECOMS
CEO Summit
MECOM
Dubai 16th May 2011
Osman Sultan
Chief Executive Officer
The world did not stop changing in few short decades
to
from
Industrial revolution
Land
Labor
Capital
Manufacturing
Information society
- Brainpower/creativity
- Digitized Information
- Globalization
Innovation in the Context of the Arab world
The Arab World led intellectual and
Scientific pursuits in the ancient world
The Industrial Revolution
passed us by
The knowledge society is the opportunity for all
countries in the world…
Will we sit back and let this go?...
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But it has been the same simple story …
(perhaps as old as civilization)
Content
Experience &Lifestyle
Transport
Transport
Content
Experience &
Lifestyle
Innovation through transformation of borders
Component
Content
Channels
Appliances
Users
Movies
Music
Interaction
News
Video
Events
Production &
Dynamic Packaging
Players
Publishing,
Music, Cinema,
Press
Broadcasting &
Distribution
Design &
Interface
Computers
Telecom operators
Home Appliances
TV and Cable networks
PDAs, Mobile Phones
Broadband networks
Digital cameras, Gaming
devices
Benefit &
Value
Individuals
SOHO
Companies
Students
The world of
Content
From Content
Creation…
To User
Generated
Content
..through Content
Aggregation
Applications
The world of
Operators
Gates
SMS
Email
Web
WAP
Applications New
Virtual Space
Infrastructure
Operators
Devices
Customers
IPTV
Communication is enabling huge opportunities of
creativity / Historical Changes
• everyone can design a page as a
window to the world
• everyone can create and share
images or movies
• everyone can become publisher or
broadcaster
Our learning universe is in constant
transformation
- A transforming telecommunication world, an exploding media world.
- new environments, new behaviors, new cultures
-fast technology, more capabilities, more speed, more capacity
Change = Evolution
Rapid Change = Disturbance
Disruptive Change = Crisis
New Technologies
New
Capabilities
New Behaviors
New Business Models
New Competition
New Flows
New Civilization Models??
Applications will be a high-growth area contributing to mobile data
revenues. With operators gaining little or no revenue share from
vendor-operated application stores, “Do-Nothing” is not an option
Consumer Penetration Estimates, %, 2013
CAGR, Revenue and Consumer Penetration of Various Mobile Data Services, Worldwide,
2009-2013
Bubble size correlates to
forecasted 2013 data
revenues
120%
100%
Images
IM
High-growth
SMS
80%
Email
Music Streaming
60%
40%
Ringtone
Games
MMS
20%
Under-developed
0%
-5%
5%
Mature
Applications
Music Download
Video
15%
25%
Applications are
potentially a huge
market with high
growth possibility
Location based
m-Commerce
Mobile TV
35%
45%
55%
-20%
Compound Annual Growth Rate of Mobile Services , Worldwide, % (2009-2013)
Note 1: Captured numbers are industry numbers and not just for operators. Note 2: All the numbers indicate content revenues, and do not include access (data) revenues
Source: Capgemini TME Strategy Lab analysis; Informa, “Global Mobile Network Traffic 2007-2012”; Informa, “Global Messaging End User Forecasts”, Nov. 2008; Morgan
Stanley, “Mobile Internet”, Dec 2009; Nielsen, “Mobile Media Europe: State of the EU5 Union”, Mar 2009; ComScore, “The Next Big Things: Mobile Internet & Applications - Gaining Momentum”, 2009
key assets available to the operator in the app
market
Locally
relevant &
operator
specific
content
Examples: Creation of custom
Apps, Apps utilizing operatorspecific or local content such as
news, events, location
information, consumption
tracking.
Control of
network and
experience
quality
Control over
Payments
Tools &
Monetization
Example: Data packages
based on tiers or partnerships
with 3rd parties to guarantee
(for a premium) network
quality for data-intensive
apps.
Example: Monetization
engine for 3rd party services
through simple m-payment
systems.
An In-depth
Customer
Base Insight
Example: Geographical
location, usage patterns ,
content purchases,
Demographics,
relationships.
operators can adopt multiple monetization
models from the sale of apps
Approach
Operators’ Stake
Developers’ Perspective
Enablers
Direct App
Sales
 Possibility of future revenues as a result of
application upgrades
 Quick monetization method
 Additional revenues through sale of virtual
goods
Return facility within a time
period, simpler payment
modes
In-app
advertising
 Instead of managing individual developers,
operators deal with a few large ad-serving
players
 Cross selling of paid applications through
the free ad-supported ones
 Popularity based revenue share
arrangement with operators
Better analytics for
intelligent targeting
Promo apps
 Upfront payment to operators or payment
based on number of downloads
 Large business houses can create
applications that promote their products
Improved browser
traversing
Subscriptio
n Apps
 Improves quality of applications on store
– Mostly useful applications which can
sustain usage over time go for
subscription model
 Source of continuous revenue
 High price premium content can be sold as
moderately priced subscription application
‘Lite’ test application or a
free cancellation facility
Usage
based apps
 Operators charge based on usage of
applications , which are hosted on the
cloud
 Quick provision of application upgrades to
all users helping improve user stickiness
Reliable Networks
Source: Capgemini Strategy Lab analysis; Hopkinson Report, ”Which iPhone App
revenue model has the most profit potential?”, July 2009; Boxuk.com, “Monetizing your
Web App: Business Model Options”, Feb 2009
An Integrated Ecosystem With Multiple
Components Impact
Setting the new players as agents of change
in evolving societies facing a restructuring model
ensuring the adequate supply and development of
knowledge workers
demystifying and humanising technology to promote
usage, growth and development
establishing the corporation as a social citizen
But more essentially:
Ensuring a fair and ethical practices in driving
development.
Enabling in our organisations the creation of new
Structures, Systems, and “Spirit”.

Building a culture of continuous change

Transforming the traditional and hierarchical model to a
process–oriented and customer–focused model

Building the ability for learning and knowledge
management

And more than ever…”Think Globally, Act Locally”
If not addressed, this is often the biggest threat to success
Addressing the opportunity of 21st Century Digital Arabia
The New Digital Age.
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No Arabic destinations of note
The broadband story is unfolding almost everywhere
A Young and increasingly savvy audience
Diversity of people, but common threads
This creates significant business opportunities for regional
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Systematically addressing the 3 screens…in 3
languages
21st Century
Digital Arabia
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and looking to the future
6th sense – ubiquitous networked reality
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The promise of a “brave new world”?
An Act of Faith:
Communication and Digital Life
are accelerating the transformation in this region.
Generation Digital Arabia is out there.
Thank you