Business Model Innovation
for the Digital Economy

The 2-Sided Telecoms
Market Opportunity

Realising Growth from the 'Platform Play' - The new $125Bn Platform Services Opportunity.

  • 241 Pages of original research & analysis
  • Covers 85 Companies including Apple & Amazon
  • 9 detailed Case Studies including Google & Vodafone
  • 30 Technologies & Applications including BSS-OSS, IPTV, Parlay-X and VOIP
  • 100+ charts, 38 tables
  • Proprietary industry research
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Report Summary

The traditional business models for fixed and mobile operators are under pressure in all core products - voice, messaging, broadband access - particularly in mature markets.

A new business model is described here: one where operators make money from new types of customers rather than exclusively from end-users - and the business opportunity is potentially very large - c$125Bn. This additional, incremental revenue to the $250Bn described in the Future Broadband Business Models Report. This report is designed to help readers understand the nature and size of this new business model opportunity in its entirety.

First published in March 2008.
From 6 Aug 2009, new buyers will also receive an update in Q4 2009.

What is The Two-Sided Telecoms Market / Platform Services Opportunity?

Diagram

Key Points



Who is this report for?

The report is a must-have for strategists, marketers, technologists, and strategic business development professionals in operators and vendors who seek to position their company to take advantage of this new opportunity.

Strategists and CxOs in Media, “Upstream”, and Investment Companies may also find this report useful to understand the future landscape of the Telecoms and related industries, and to help to spot likely winning and losing investment and operational strategies in the market

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Background Context - The need for profitable growth

Thus far, operators have looked to replicate this business model in adjacent markets. Fixed operators have moved into mobile markets; mobile and fixed operators have sought to make money in fixed broadband. Operators are also charging users for new services, such as content delivery, with the launch of IPTV and mobile TV. The larger players in mature markets are aggressively expanding into emerging markets, such as China and India, where subscriber growth is still available.

But, as we have shown in the preceding report to this on Future Broadband Business Models, this activity is not enough. All mature markets are becoming more competitive and emerging market growth will slow in the next few years. A new business model is required: one where operators make money from new customers rather than exclusively from end-users. For background on the 2-sided telecoms market opportunity, click here for a short presentation.
Some operators have begun to look at one 2-sided market: advertising. We cover this at length in our report Telcos' Role in the Advertising Value Chain. Many, however, have concluded that on its own it is not big enough to provide substantial revenue growth (or indeed to fill the gap left by declining subscription revenues).

This report is designed to help readers understand the nature and size of this new business model opportunity in its entirety. It looks beyond the advertising opportunity to other areas where operators could provide value and generate revenue. It lays out the key principles and strategies for success for fixed and mobile operators and recommends specific actions for moving forward.

A New Generation of Telecoms Platform Services

Diagram

Our belief is that the total two-sided market opportunity is of huge strategic importance for operators. Advertising is only one step for operators to add value to upstream customers (government, advertisers, merchants, application developers, content owners etc.) and end users (businesses and consumers):

  1. Identity, Authentication & Security: Management of user access to products and services.
  2. Advertising, Marketing Services & Business Intelligence: Provide merchants and advertisers with customer profiling information and contextual/behavioural data to enable targeted advertising. Ad-serving capabilities. Performance metrics.
  3. E-Commerce Sales: Managing of sales transaction.
  4. Order Fulfilment - Off-line: Processing of order and logistic/delivery support.
  5. Order Fulfilment - On-line: Electronic content delivery - games, music, TV, video, etc.
  6. Billing & Payments: Billing for products and services and cash collection.
  7. Customer Care: Remove friction & improve customer services by enabling other services to be better integrated with communication.

The report describes the common set of underlying enablers required to enable upstream players to interact effectively with downstream end-users, and shows how operators have the necessary assets and competencies to build such a platform.

It also explores the key lessons from other successful platform players (Akamai, Google, Amazon, Ebay, Monster, iTunes, The London Stock Exchange, Betfair, Maersk) and identifies a way forward for operators:

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Key Questions Answered

This report uniquely answers 5 key questions:

  1. How big is the two-sided business model opportunity for operators?
  2. Which are the priority markets/industries where they should look to compete?
  3. Is each market discrete, requiring a separate strategic approach, or is there an opportunity to develop a coherent cross-market two-sided market play?
  4. How should operators go about realising the opportunity?
  5. How does the two-sided model fit with existing retail/wholesale market and organisation structures?

In addition, the report seeks to help operators and vendors maximise future opportunities from operator services by answering the following questions:


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Case Studies, Companies and Services, and Technologies & Applications Covered

Detailed Case Studies: Akamai, Amazon, AP Moller-Maersk, Betfair, Blyk, BT, Google, Monster, Vodafone.
Other Companies and Services Covered: Agriculturaljobs.net, Amazon, Amazon Kindle, Apple, Apple TV, Babelgum, Bank of America, BBC, BBC iPlayer, Bebo, Betavine, Betfair, Blyk, BT 21CN, BT Click & Buy, BT Counterpane, BT Fresca, BT Tradespace, BT Vision, Channel 4, China Mobile, Cyworld, Ebay, Equifax, Expedia, Experian, Fed Ex, Flickr, France Telecom, Genie, Google, GSMA, iTunes, ITV, Jajah, Joost, Kelkoo, Lastminute.com, London Stock Exchange, Mac OS, Maersk Logistics, Microsoft, MMA, Monster, MSN, Napster, Nextag, Nike, Nokia, O2, Opodo, Orange, Payforit, Paypal, Phorm, Pioneer Massive, Playstation, Price Runner, Prime Location, Real Networks, Rolls-Royce, Screen Tonic, Second Life, SK Telecom, Sky, Skype, Teddy Bear Search Engine, Telefonica, Tesco, The Cloud, The Ladders, Tivo, T-Mobile, Truphone, UPS, Verisign, Virgin USA, Visa, Vista, Vizzavi, Vodafone, Vodafone, Windows Software Developers Kit, Yahoo!, YouTube.

Technologies & Applications Covered: ATM, Bluetooth, BSS-OSS, Carrier Voice, DIAMETER, DRM, Enhanced Carrier Voice, IM, IPTV, Java MIDP, Linux, Mobile, Mobile Payments, NGN, Open ID, Parlay-X, PSTN, RADIUS, SIM, SIP, SMS, Softsim, SS-7, SXIP, USIM, Voice, VOIP, WAP Gateway, Windows Cardspace, XMPP.

Forecasts Included



Summary of Contents

1. Executive Summary

2. Introduction

3. The Telco Platform Service Capabilities – Scope to Grow & Grow

4. Sizing the Platform Opportunity – United we Stand; Divided we Fall

5. Case Studies – Telecoms is lagging other Industries

6. Moving Forward

7. Appendix

 

Pricing and User Licenses

The 2-Sided Telecoms Market Opportunity

First published in March 2008
From 6 Aug 2009, new buyers will also receive an update in Q4 2009

Single User License*: £1,995 GBP Excluding UK VAT (if applicable)
Group License**: £4,450 GBP Excluding UK VAT (if applicable)

Corporate License***: Price on Request

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* Dedicated license for 1 named individual.
** License for a group of up to 5 employees within a named organisation.
*** License for all employees within a named organisation.

NOTE: UK VAT at 17.5% is chargeable on orders from all UK customers and from non VAT registered customers in other EU Member States. Please supply your EU VAT registration number or add 17.5% UK VAT to your remittance.

Customer Workshops

The Two-Sided / Platforms Services research raises a number of important questions and challenges for operators and their partners. To help companies take these findings forward and develop concrete action plans, Telco 2.0™ run interactive 'Mindshare' Workshops to provide a unique means to access this knowledge quickly and effectively, combine it with internal thinking, and produce agreed action plans for clients to exploit the opportunities presented.

The The 2-Sided Telecoms Market Opportunity research raises a number of important questions and challenges for Telecoms Operators and their business partners. To help companies take these findings forward and develop concrete action plans, Telco 2.0™ run interactive ‘Mindshare’ Workshops to provide a unique means to access this knowledge quickly and effectively, combine it with internal thinking, and produce agreed action plans for clients to exploit the opportunities presented.

"What are we going to do about it?"

To bring this to life quickly and effectively within client organisations, the Telco 2.0™ The 2-Sided Telecoms Market Opportunity ‘Mindshare’ Workshop brings together the best external market knowledge with clients’ strategists and senior decision makers using expert facilitation to produce agreed and actionable business plans. The Workshop is a highly productive and interactive working session that is designed to identify and address specific market opportunities based on the research and analysis undertaken by the Telco 2.0™ team.

Workshop Objectives

Objectives are tailored to the need of each client. Typical objectives are:

  1. To identify and prioritise relevant new Platform / 2-Sided Business Model.
  2. To develop and agree the plan to address selected opportunities.

Who is this workshop for?

The workshop is relevant to all fixed and mobile operators running or thinking of introducing Platform Services / Two-Sided Business Models, and to major equipment vendors and broadband applications providers serving this market.

Why is this approach different and more effective?

Telco 2.0™ ‘Mindshare’ workshops are designed to help teams think ‘outside the box’ and identify breakthrough opportunities for growth which are both strategic and practical. We aim to support clients develop both long-term ‘game-changing’ strategies/value propositions and short-term ‘fast pay-back’ product and proposition enhancements.

To achieve this we mix together expert knowledge and new research on the topic of The 2-Sided Telecoms Market Opportunity with creative brainstorming methods, group facilitation skills, and decision-making and project prioritisation techniques. This is supported by sophisticated but simple interactive technology (special wireless laptops and brainstorming software). Everyone’s voice is heard and the best ideas come to the fore fast, not those of the people who shout loudest (or are the most senior!). The approach is far more efficient and effective (and enjoyable) than ‘post-it’ note and brown paper sessions.

The Platforms Services / Two-Sided Telecoms Market Opportunity Workshop module is one of a series of three Telco 2.0™ Workshop Modules: Voice & Messaging 2.0; Two-Sided Telecoms Platforms; and Future Broadband Business Models.

Duration

Workshops can be 1 day, 1.5 days or 2 days, depending on the required outputs.

Costs

Workshops prices are available on application and depend on the duration and amount of preparation and customisation required. Please email: contact@telco2.net.

Core Team

We select each Telco 2.0™ 2-Sided Telecoms Market Opportunity workshop team from our core pool of experts. We supplement them with specialists as required for each assignment.

Further information

For information about purchasing and payments, please contact us at contact@telco2.net or call + 44 (0) 20 7247 5003.

Telco 2.0™ 2-Sided Telecoms Market Opportunity Team Biographies



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