Telco 2.0™ Market Study

New Updated Edition - June 2007

• Key Questions Answered
• Report Contents
• Accompanying Workshop Module
• What’s different about this report
• Who Should Read
• About the Authors
• Pricing Options
• Related Reports

Now includes the additional briefing: "All new Market Study - A new role for Telcos in the Digital Economy" (Publication: November 2008)

“The only market report today that a.) fully analyses the transformational changes to the industry and b.) offers practical steps to making money in an IP world.”

Overview - IP is changing the game

IP is changing the game. The lines between industries are blurring and everyone is after the same consumers. The vertically integrated business model in under attack from all sides: tougher regulation, new technology (most notably VoIP and open spectrum), disintermediatory new entrants, and advancing customer expectations. This is starting to cause disruption in the telco industry - for operators, their suppliers and partners.

Based on an exhaustive programme of research and analysis, this report provides clear direction for senior commercial and technical managers to make crucial design and investment decisions: in the Network and IT (IMS, OSS/BSS), in Products and Services (VOIP, Triple Play, IPTV), in Partnerships (Content and Commerce), in Handsets (UI and supply chain), and in M&A.

The report clearly articulates the fundamental technological and cultural shifts affecting current operator business models. It provides the ‘killer stats’ to help communicate these issues internally. It describes best practices for taking advantage of IP Convergence. And it provides an holistic road-map (commercial and technical) for moving forward:

1. For developing the optimal corporate, product and technology strategies to win in an IP-based world;
2. For optimising existing business processes, technology and organisational structures and for effectively migrating to the new world.

The Report is written by senior telco execs (not researchers or journalists) and is presented in an easy to use slide format. (What’s different about this report).

Now includes the additional briefing: "All new Market Study - A new role for Telcos in the Digital Economy" (Publication: November 2008)

Key Questions Answered

• How is the Telco-Media-Technology market really transitioning?
• What are the fundamental technical and cultural shifts affecting the market?
• When and how will the impact of this disruption be felt?
• What are the proof points of market change? Are we really hitting a ‘tipping point’?
• What are people thinking today within operator and vendor organizations?
• What strategies should operators adopt to effectively respond to IP-based Convergence?
• What are the key barriers to success?
• How should operators plan their investment strategies in the Network and IT (IMS, OSS/BSS), in Products and Services (VOIP, Triple Play, IPTV), in Partnerships (Content and Commerce), in Handsets (UI and supply chain), and in M&A.
• How can operators build understanding of change internally?
• How can corporate, service and technology strategies be re-aligned to deal with disruptive market forces?
• How to embark on high-return optimization and low-risk migration?
• Which companies are taking the best approaches to IP Convergence?
• What can be learnt from non-Telco competitors - Internet Giants, Start-Ups, Retailers/Others entering Telco?
• How should operators choose vendors and partners, given the above?

Report Contents

Over 280 pages and 100 diagrams and charts.

1. Executive Summary

2. Telecoms, Media & Technology - A Market in Transition:

1. Scope & Definitions
2. Frameworks for Industry Analysis: Forces & Operator SWOT
3. Underlying forces: What’s driving all this change?
4. Changing Industries: Web 2.0, Telco 2.0
5. Examples of Disruption: New competitors, partnerships, products & services, business models

3. Market Forecasts:

1. User attitudes to IP Services and Convergence
2. Network capability: Investments in IP
3. Access Technologies: Growth in Pervasive Bandwidth
4. Service adoption: What services are going to be Big
5. Devices: How customers will access Services

4. Operator Responses to IP-based Convergence (from IMS Insider Surveys & Interviews):

1. Introduction and Background to Surveys & Interviews
2. Telco 2.0™ Developments
3. Investor Views on Operators
4. Telco 2.0™ Timing - When will the ‘Tipping-Points’ Occur?
5. Services and Service Development
6. Current and Future Strategies
7. Barriers to Future Success
8. Implications for Operators

5. Operator Opportunities & Threats

6. Operator Stepping Stones for Success:

Introducing the STL Partners' 3-step approach

1. Step 1 - Build understanding
   • STL Partners' IP Situation and Strategy Analysis (IPSASA) tool
   • Measuring industry and company changes
2. Step 2 - Re-define the corporate, service and technology strategies:
   • Corporate Strategy Options for Operators
   • Prioritising service strategies: STL Partners' Service Prioritisation Matrix (SPM)
   • Voice and Messaging Strategy: Principles for Future Success
   • Alternative Service Funding: Advertisers as Customers
   • Technology Strategy
3. Step 3 - Embark on low-risk migration:
   • Migration steps and goals: The critical 8 steps
   • Migration priorities for different operator segments

7. Industry Best-Practice: Case Studies and Learnings

1. Operator: BT
2. Operator: SK Telecom
3. Operator: Rogers Telecom
4. New Operator Business Models:  Blyk (Advertising-Funded MVNO)
5. Evaluating Vendors: Lessons for operators
6. Lessons from Internet companies: Yahoo!
7. The value of open API’s:  Amazon and Ebay

8. Conclusions

9. Appendix

Future Services - Examples:

1. Background
2. Movie Rental for Consumers
3. Advanced Communications for Business

Technology Research & Analysis (from IMS Insider Interviews & Surveys)

1. Introduction and Background to Surveys & Interviews
2. Technology Enablers and Standards
3. Operator Preparations for Convergence & Timeframes for Adoption of IP/IMS
4. Market Leaders in IMS (including the IMS Insider Deployment Register)
5. IMS Analysis

NOTE: We offer a cut-down version of the above focusing on the technology aspects of the above. It is 80 pages long and covers sections 2 and 3 and 'Architecture Best-Practice' from Section 6.

What's different about this report?

1. Exhaustive Research & Analysis.

The Telco 2.0™ Market Study Report is based on ongoing programme of primary and secondary research:

• Online surveys with 800 respondents (800 to date)
• Depth interviews with Operators (40 to date)
• Depth interviews with vendors (40 to date)
• Review of latest industry white papers (60 to date)
• Synthesis of latest market forecasts (30 to date)
• Review of latest conference presentations (150 to date)
• Review of key blogs
• Analysis of announcements and press releases
• Workshops with industry insiders
• Output from Telco 2.0™ Industry Brainstorm, October 2006

It is made up of 280 pages, with over 100 diagrams and charts. We've worked hard to make it valuable to operators and vendors alike, as follows:

2. Analysis by senior practitioners, not journalists or researchers.

STL Partners' analysis team includes an ex-CEO of O2, an ex-Marketing Director of Orange, an ex-Strategy Director of MCI, ex-Product Development Manager at Sprint, and ex-Product Strategy Manager of Ericsson.

3. Comprehensive synthesis, not just technical aspects of Convergence.

We've analyzed all the commentaries and forecasts that touch on TMT Convergence, interrogated them, and condensed them into the 'killer stats' that all senior execs at telco operators should know. These are now in one single comprehensive document.

4. Up-to-date attitudes and insight from leading practitioners from 100 companies.

Primary research has included interviews with over 45 leaders in the field and a survey of over 500 others since January.

5. Useable format, not pages of long-hand.

The report is in a slide format in PDF (see sample). It is stuffed full of charts, diagrams and graphics for more effective communication. People have asked us for this format because they find that it's easier to a.) read, b.) navigate around and c.) use to discuss with colleagues (in meetings etc).

But the biggest value, we feel, will be its focus on...

6. Practical next steps, not just forecasts and commentary.

The meat of the report describes a NEW MODEL we've created to help operators create effective plans to a.) optimize their current activities and investments AND b.) migrate effectively towards a very different IP-based converged world.

While the report can be bought alone, most value will be derived from the accompanying workshop, which we've specially designed to help companies process the specific opportunities for themselves.

Who should read this report?

The report (and/or accompanying workshop module) is for anyone with a responsibility for ‘making money’ from telecoms services within their organisation.

It is for anyone who is concerned about the effects of IP and convergence on their business models, business processes and commercial and technical investments.

It is for anyone concerned with structuring the organisation to be effective at a time of increasing market disruption.

This includes CxOs, Strategy Directors, CTOs, Marketing Directors, Operations Directors, HR Directors.

NOTE: We offer a cut-down version of the report focusing on technology aspects. This is designed for technical architects.

About the Authors

The authors are senior industry practitioners, not journalists or researchers:

Chris Barraclough (Editor)
Ex-Marketing Director, Orange Group; Analyst, JP Morgan; Senior Consultant, Gemini Consulting; Director, STL Partners
Chris.barraclough@stlpartners.com

Dr Kenn Walters
Ex-CEO, O2 Germany; Converged Services Practice Director, STL Partners
Kenn.walters@stlpartners.com

Simon Torrance
CEO, STL Partners; Ex-WPP; Editor Telco 2.0™ blog: www.telco2.net
Simon.torrance@stlpartners.com

Pranay Kohli
Ex-Ericsson Global Product Strategy; Founder Ernst & Young Global Mobility Centre of Excellence; IBM Global Services; Director STL Partners
Pranay.kohli@stlpartners.com

Martin Geddes
Associate Director, STL Partners; Ex-Product Strategy, Sprint; Analyst: www.Telepocalypse.net blog
Martin.geddes@telco2.net

Mac Taylor
Managing Director, Moriana Group
Mac.taylor@morianagroup.com

Related Reports

Survey Results

• Challenges to creating Converged IP-based Services
• Attitudes to IMS

FREE white papers

• Telco 2.0™ - Background and Perspectives Subscription Services

For more details of these reports please email contact@stlpartners.com