CD Melbourne Congress: CDG International's Ian Watterson

Copyright © 2014 CSG Systems International, Inc. and/or its affiliates (“CSG International”). All rights reserved.1

The Digital Reinvention of TelecomsIan WattersonMD & VP Asia Pacific, CSG International


Service Providers have greatly benefited from the explosive adoption and utilisation of mobile services

More people have access to a mobile phone, than have access to a toothbrush or working toilets

Source: Google, United Nations, Unisys, CTIA, Mobile Marketer, Morgan Stanley, Ad Reaction

It takes 26 hours for the average person to report a lost wallet. It takes 68 minutes for them to report a lost phone

It takes 90 minutes for the average person to respond to an email. It takes 90 seconds for the average person to respond to a text message

70% of all mobile searches result in action within 1 hour

91% of all U.S. citizens have their mobile device within reach 24/7

In 2014, smartphone screen time (151 minutes) surpassed TV screen time (147 minutes)


However, digital is enabling new entrants to disrupt services traditionally monetised by operators

Traditional Operator Offerings Disruptors

Text Messaging

Voice Calling

Data Connectivity

Yellow Pages

Maps & dedicated GPS devices

Television

Location Based Services

Yet, only a few Operators have set up their organisations and capabilities to effectively capitalise digital


CSPs’ Search for New Revenue SourcesVoice Revenue

Messaging Revenue

Subscriber Penetration

Data access revenues strong but more and more competition

Service providers looking to new digital services to provide a ‘fourth wave’ of revenue

Data Access Revenue

Subscriber Penetration

Voice SMS

Digital Services

Data Access

Traditional telecoms revenues (voice and data) in decline in most developed markets


Growth will come from multiple digital services

OTT Video / Digital Content

Financial Services

Mobile AdvertisingSecurity and Cloud Services

Enterprise ApplicationsFleet Management

Telematics

M2M

Mobile Commerce

Mobile Health

Connected Home


In the digital future, operators will fall into 1 of 4 scenarios based on their digital capabilities and offerings

Digital Services Provider

Creator of digital services without underlying network. Own direct relationship with end consumers (sales, activation, billing)

Integrated Digital Services Provider (IDSP)

The platform for all things digital, for both their own and 3rd party services

TraditionalNetwork Provider

Operators/ aggregators of network infrastructure focused on providing connectivity

Digital Platform Provider

Enabler of 3rd party digital services. Provide intelligent and nimble infrastructure and related services

Maturity of Digital Capabilities

High

High

Mat

urity

of D

igita

l Offe

rings

Source: Accenture


Operators must strive to become Integrated Digital Service Providers (IDSPs)

IDSP: Designed for Digital as a Business

Digital Business Operations & Capabilities

Digital Infrastructure Core

Digital Offerings

IDSPs are Operators that are standing up infrastructure capabilities, operations and offerings to pursue digital as a business

Source: Accenture



7 key capabilities Operators need to become an IDSP



Digital Offerings

Network 3.0

Next Generation IT

1

2

Digital Channels

Superior Customer Engagement

3

4

Talent and Open Collaboration5

New Product Ecosystem

New Set of Partners

6

7

Source: Accenture



Business Support Solutions’ Roles



Digital Offerings

Network 3.0

Next Generation IT

1

2

Digital Channels

Superior Customer Engagement

3

4

Talent and Open Collaboration5


New Set of Partners

6

7

Mediation, Virtualisation

Cloud-based, standards-based, flexible, scalable

APIs, openness, product catalogue

CRM, self-care, customer control

Product catalogue, pricing

Revenue share, wholesale

settlement

APIs, openness, transparency



Customer Experience

Customer centricity Customer self-care Customer control


Product catalogue Pricing

New Partners

Partner management Revenue share/ settlement


Customer-centricity on Steroids

Consumer

Entitlements

Digital Locker

Packages, bundles

Subscriptions

Preferences / ProfilesRanking

View History

WatchQueue

Personalisation

Wish Lists

Recommendations

What

When

Which

HowMuch

PrivilegesHouseholdMembers

Activity Stream/ Analytics

Customer Owned Devices

Contact Preferences

Out of Home Presence

Linked Authentications

Credentials & security

ManagedEquipment

TargetedOffers

PurchaseHistory

Internal & External Balance

Credit/Debit Cards

Gift Card

Internal Micro-Payment

Engine

Rewards

In App

Global ProcessorNetwork

LoyaltyPoints

VoucherOrder

History

E-Wallet

Stored ValueExtensionsDemographics Risk Profile

Post-PaidPre-PaidHybrid

Billing Account

http://www.google.com/url?sa=i&rct=j&q=google+plus&source=images&cd=&cad=rja&docid=RGV4jjUI38TXJM&tbnid=lq08_AO-_1RXuM:&ved=0CAUQjRw&url=http://eclub.district5110.org/library/programs-1/263-google-plus-is-a-1&ei=pzdBUbOCHoeMyAGdyID4DA&bvm=bv.43287494,d.aWc&psig=AFQjCNHtx1c3fVhaU0k2ukLiS1e5AUL7mQ&ust=1363314969872884

http://www.google.com/url?sa=i&rct=j&q=pinterest&source=images&cd=&cad=rja&docid=K1ljwGzbOc0cjM&tbnid=KQNrHLnCIi7Y8M:&ved=0CAUQjRw&url=http://business.pinterest.com/logos-and-marketing-guidelines/&ei=fjhBUd_DFqS6yAHP4YHQCQ&bvm=bv.43287494,d.aWc&psig=AFQjCNGmtGKFnfmkVU7DJ-abxXjZ9q613Q&ust=1363315192283253

http://www.google.com/url?sa=i&rct=j&q=twitter&source=images&cd=&cad=rja&docid=hGXxMtUWQt7jnM&tbnid=BFGx3pxLqCGA5M:&ved=0CAUQjRw&url=http://www.iconfinder.com/icondetails/60857/128/twitter_icon&ei=JzhBUYCXEZCFyQGav4DIDg&bvm=bv.43287494,d.aWc&psig=AFQjCNGmAb8_vu5bxdn9xYTMK28yLBCujw&ust=1363315080521645

http://www.google.com/url?sa=i&rct=j&q=coupon+graphic&source=images&cd=&cad=rja&docid=QMSwCFqi_RFWfM&tbnid=_APT0v_MvlpvRM:&ved=0CAUQjRw&url=http://blog.photoshelter.com/2010/03/7-really-clever-ways-photographers-are-using-coupo/&ei=wDNBUefmAaW3ywH0vYHIDQ&bvm=bv.43287494,d.aWc&psig=AFQjCNEDOLnWUNpIAnXY2DaGw8Y6wvslZQ&ust=1363313967816998



Customer Experience




New Partners



Market Facing Product Catalogue is Critical

FOR SHORTER TIME TO MARKET

An integrated product catalogue means more automation and fewer errors

How long does it take to introduce a new data plan today?

Source: ‘The Role of BSS in the Digital Revolution’, Heavy Reading, Vol 11 no 12, Nov 2013


Product Catalogue Examples

Background• Enterprise wide catalogue

rollout to 6500 agents, 23 call centres & 6M subs

• Standardisation on a core set of offers

Results• 60 day rollout• Higher bundled service take

rates• Higher average ARPU• Lower average call time down

by 26 seconds• Discount accuracy greatly

increased

Background• Enterprise wide catalogue rollout

to 500 agents• Moved from a la carte to

standardised offers

Results• 6 month rollout to all call centres• STB w DVR increase from 13% to

47%• Order accuracy increase from

89% to 96%• New hire training greatly

improved

Background• Product Configurator used to add

video to current voice offerings

Results• 90 day rollout from SOW to

production• Custom integration of OPC with

in house CRM• Eliminated swivel chair between

order entry systems• Traditional API integrations were

estimated at 9-12 months

Copyright © 2014 CSG Systems International, Inc. and/or its affiliates (“CSG International”). All rights reserved.15Source: ‘Market Trends: Seven Innovative CSPs Embark on Digital Service Transformation’, Gartner, May 2013

A Rich Variety of Pricing Models is CriticalTO MONETISE DIGITAL OFFERINGS

Business model attractiveness across digital service categories


Pricing Examples

World cup 2014: Choose your favourite team for the game the next day, and get 150MB

bonus data for every goal they score.

Access up to 400 premium mobile games for smartphones and feature

phones on a rental basis.

Unlimited access to 11 web sites and a 6 IM tools; valid for 12 months, for Rp. 50,000 ($5)Includes 50MB per month for other use Packages for modem, smartphones, tablets that include flash drives, earphones and speakers



Customer Experience




New Partners



Partnership is CriticalFOR DIGITAL SERVICE DELIVERY

Digital Service Implementation Models used by 7 leading CSPs

Source: ‘Market Trends: Seven Innovative CSPs Embark on Digital Service Transformation’, Gartner, May 2013


Partner Settlement is Getting Complex

Content provided to Bouygues’ mobile and fixed customers

Partner settlement and revenue sharing for all content services, including broadcast, video, games, music, information and premium SMS

Payments to royalty/copyright agencies

CD Melbourne Congress: CDG International's Ian Watterson

Technology

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