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It’s All about the Killer User Experience

It’s All about the Killer User Experience. Olivier Frelot Vice President – Professional Services Alcatel-Lucent. Audio. 11%. Games, SW, etc. Video. 27%. 62%. Global Market Trends End users expectations have changed drastically …. Control has shifted to the end-users…

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It’s All about the Killer User Experience

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  1. It’s All about the Killer User Experience Olivier Frelot Vice President – Professional Services Alcatel-Lucent

  2. Audio 11% Games, SW, etc Video 27% 62% Global Market TrendsEnd users expectations have changed drastically … • Control has shifted to the end-users… • Always-on, freedom • Mobility, simplicity & productivity • Personal content sharing, social and business networking • Seamless and personalized service experience • High-speed connection to the contents from their preferred devices • Network Technology Agnostic (wirless, wireline …) Mix of file formats by volume of traffic generated over 4 main P2P networks Always connected to the content and people I care about

  3. Telco Service Providers(2) • Single digit growth rate of worldwide service provider revenue • Voice Revenue Declining • Service bundling alone is not sustainable • Marginalization of network assets with “over-the-top” applications Traditional TV Broadcast • Advertising Revenue Saturating $ Bill. ILEC Annual Voice Telephony Revenue Forecast 2006-2011 (US$ in Thousands) (1) Ovum, 2007 (2) Infonetics, 2007 (3) IDC, 2007 (4) ALU CS, 2008 Revenue Trends of Telco Service Providers, TV Broadcasters and Over-the-Top Providers • Over-the-top-providers • Google’s growth rate was 30% in 2007 (90% in 2005)(3) • Google generates 98% of its revenues from advertising • Apple’s revenue in 1Q08: $9.6bn, a plus of 35% YoY(4) • iPod + iTunes = 50% of total revenue • Skype • Skype-to-Skype (free) international traffic = 4.4% of total

  4. Entertainment Photo Albums Store & Transfer Game consoles, MP3/Video Players Security & Care Media Server Home Control Communications Security/ Surveillance Telecare Personal Captors Child safety Smart Metering Power Control of Appliances, Lighting, Heating, Air conditioning etc Power, Water, Gas Meters Devices are becoming smarter for sophisticated user experience Devices are Evolving to be Multi-Service and IP Capable

  5. Subscriber Knowledge 2-way communication to Enhance Interactivity Enhanced Productivity (Open Presence) Dynamic Subscriber Information (Location) Rating and Billing Capabilities Operator are uniquely positioned for value migration Services providers unique position combining the best of both worlds

  6. Mobile Internet GW IN/Billing Presence HLR/HSS CRM Campaign Library SMS/MMS Content Location Target campaigns Personalized user experience Example – Targeted advertisements 1 2 3 4 5 Ad Selection/ Campaign Management Engine Content Management/ Ad Insertion Engine Personalization Engine Preferences Demographics Usage Segment Behavior Statistics Data Mining Predictive Analytics Location – Presence Query Event Correlation Transcoding SMSC/ MMSC USSD Email WAP TV

  7. Alcatel-Lucent: Global End-To-End Multi-vendor integration BSS Service Management Service activation, impact analysis Network inventory, Fault & Performance EML: One per sub-domain xDSL, Wimax, 3G, FTTH, PLC, BPL WDM, SDH, PDH, MWV, IP-MPLS MICROSOFT Session Control & Network applications & Enablers Content & Internet application providers Backbone & IP connectivity End-User Devices Access

  8. Key Takeaways – User-Centric Communication Changing the way the world communicates is about: User-centric experience Quality and Security Productivity IncreaseParticipation Anywhere, Anytime, Any Device Entertaining Personal Value for the End-user Value Migration and Monetization of assets Rapid blended services creation and deploymentLeverage Data Growth for new services Subscriber data for new Content-rich services New Business Models for revenue Value for the Provider

  9. Back Up

  10. Exploit Assets to Monetize communities, content and brands … Telco Monetize Communities • reduce churn: individuals cannot easily move • cross sell to communities • target advertising  Exploit Your Assets Monetize Content • generate direct revenue from content (users are willing to pay for content) • attract subscribers through user-generated content • sell interactive content apps • create attractive bundles • Turn TV and mobile to an bi-directional interactive experience\ • Fuel a wave of productive applications with open presence information • Create a set of applications for targeted social networking and adverting • Target campaigns based on profile, relevance and context • Be the “one-stop-shop” for billing Monetize Brands • promote own brand to grow subscriber base • generate revenue from advertising • attract users with their favorite brands Don’t Imitate the OTTS – Create you own offer based on unique assets

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