Operator App Store nd Unlocking Potential : l www.huawei.com - - PowerPoint PPT Presentation

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

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Operator App Store Unlocking Potential

Roopesh Singh Director, Technical Pre-Sales & Solution Design CSCN BL India R&D January 2012

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Challenges faced by the Operators

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Challenges faced by the App Developers Industry Case Studies Overview of Huawei DSM

Agenda

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More traffic didn’t bring Operator so much revenue

 heavy traffic ≠ high revenue, 3G and

smart phone brought heavy traffic, but not generate so high revenue

 Global mobile data traffic will increase

1587%, but revenue will increase only 84% (2008-2013), by Informa

Source: Verizon’s CEO at CTIA 2009 Traffic Price

$99 1 GB Per month $199 unlimited Per month $69 500 MB Per month $69 500 MB Per month

= 1.4 × = 2.9 ×

3G traffic and revenue comparison

Source: Informa Telecoms & Media

4,015PB 322b 238PB 175b

Global mobile data traffic and revenue

Data traffic (PB) Data revenue (US$ mil.)

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Potential revenue is eaten by OTT providers

Value Added Service

Operators

Revenue

• Tencent QQ – 647M

Subscribers, Consume 45% Data Traffic of Guangdong

• Mobile. SMS ARPU of Tencent

QQ User is 37% Less Than the Average

• Skype – 663M

Registered Users, Occupied almost 20%

• f International Voice

Traffic

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Huge space in Mobile Apps development

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2009 2010 2011(Estimated) 2015(Estimated)

2.5 8.2 17.7 21.6 4.2 5.2 15.1 29.5

Global Mobile App Sales/ Revenue (Billion)

Sales Revenue

Leading Application stores by Terminal vendors/ ISP Leading Application stores by Telecom operators

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It’s time to reconstructed Traditional network

 Long time to market deploying new service  High CAPEX & OPEX via silo construction  Difficult to aggregate the service and content for local market

MMSC RBT MTV … SMSC

CP/SP CP/SP CP/SP CP/SP CP/SP

GSM/WCDMA/CDMA/IMS…

3rd Party/Internet BSS/OSS End user

Access Portal Mgmt Access

…

Portal Mgmt Access Portal Mgmt Access Portal Mgmt Access Portal Mgmt

MM RB MT … SM

SMS MMS RBT MTV …

Telecom Network

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Challenges faced by the Operators

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Challenges faced by the App Developers Industry Case Studies Overview of Huawei DSM

Agenda

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Application Download vs Revenue

 Even though Global Mobile Phone Application downloads will

exceed 40 billion download in 2016 but only 5 billion would be paid downloads

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HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Application Download vs Revenue

 As per Ovum survey, 40% respondents paid nothing for applications

each month, while 36% paid between 0-$5 a month.

 Commoditization of Applications means purchases are at the lower

end of the spectrum, with $0.99 becoming a common price point.

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HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Challenges

Page 10 How to increase the Premium Revenue App consumption? How to sell to users without Credit Card? How to benefit from mass feature phone users? Apps for Tablet, Connected TV / other specialized devices How to bring the localized content / applications?

Premium App Payment Localization Devices

Revenue

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Challenges faced by the Operators

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Challenges faced by the App Developers Industry Case Studies Overview of Huawei DSM

Agenda

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Operators are looking for …

 A future-oriented and SOA-

based Service infrastructure

 Better user-centric experience

 Accelerate service innovation

and aggregation

SDP (Service Delivery Platform)

Mobile Phone TV PC Specific Terminal Fixed Network Mobile Network Internet IMS Broadband

Social Network

Telecom Service

Music Comm unicate Reading Game … Communicate

Internet Service

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Key Enablers

Flexible Billing & Payment Options Aggregation & Cross Selling Network Exposition Telco-Web Integration Telco 2.0™ 'two-sided' telecoms business model

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Standard Network Exposure

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Network Enabled Applications

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Network Enabled Applications

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Value Added App Store

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Application adapt as per Data Connection Profile & Device Capability information Freemium model, Time Based Models priced by Day, Hour, or Week, Bundled offers Target young subscribers who don’t have Credit Card or not willing to share details over net e.g. Operator Billing, In-Application Billing Promote other services, be they devices, Ringtone/Songs, a TV proposition, or special offers.

Devices Flexible Pricing Payment Options Cross Selling

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Operator’s App Store vs Device App Store

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Challenges faced by the Operators

1

Challenges faced by the App Developers Industry Case Studies Overview of Huawei DSM

Agenda

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Introducing Huawei DSM Solution

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 Huawei DSM (Digital shopping mall) is hosting solution with a pre-stock library of the

mobile internet services including Valueable in-house services, long tail applications as well as Vertical industry services for life, which is based on SDP, enabling operators’ service cloud.

Huawei Service Delivery Platform Life in Cloud Business in Cloud Work in Cloud

Valueable In- house services Long tail Apps Vertical Industry Services

Telecom Internet

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Key Features

• One stop consumption experience
• Mobile Internet combination
• Mutiple access (ODP/ WAP/ Web/

SMS/ USSD)

• Multi-channel delivery
• Recommendation/ Comments
• Personalization
• Context awareness

See how it works…

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HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Main benefits of Huawei DSM solution

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RCS Live TV Mobile Newspaper VMS Color SMS Weather Forecast E-Reading Fulltrack VoD MCN SMS Signature Enhanced SMS Report … Football Manager Platform & APPs Value-chain Collaboration Service & Operation SDP

Digital Shopping Mall

Faster

Time-To-Market

Lower

Initial Investment

Rich

Pre-installed Content& Apps

Global

Experience sharing

Multiple

Screens& Terminals Supported

Professional Services

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Huawei SDP market achievement update

 Selected by 100+ operators worldwide, incl. 5 biggest mobile

• perators CMCC, VDF, TLF, AM and CU, etc

 Best SDP award by GSMA 2010  No.1 global market share by Gartner

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Thank You

www.huawei.com

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