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Business Models for Network Operators in an OTT World Vincent BONNEAU Head of Internet Business Unit +33 689 89 88 19 v.bonneau@idate.org

2-sided models applied to telcos assets

New York, September 24th


Some context on Telcos and OTTs

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Operational view of Telcos : 3 different jobs

Infrastructure Core Services

Assets

Network

Revenue Model

Connectivity/Access

Costs

Huge CAPEX

Issues & challenges

Profitability of investments Regulation

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(traffic, messaging, etc‌)

Associated Services

Devices (Mostly STB,

Customer Management

Customer base (of

specifications of smartphones), Services?

paid users) & Personal Data, Physical shops

Business models of services (ad, pay per use, subs) or free/bundles

Bundles/Upsell/ Cross-sell of core and associated services Segmentation IT & marketing costs

R&D costs

Competition from OTT players

Competition from OTT & other telcos Privacy


OTT players evolving to 2-sided models and creating disruptions for telcos

Third parties

Developers

OTT

Revenue share, freemium, SDK fees, other (device)

End-users

Paid apps or inapp purchase

Advertisers

CPM, CPC, Analytics

Free ad-based services

Merchants

Transaction fee

Physical goods or services

•  Impacts for telcos -  Competition on traditional telco services with disruptive business models -  Competition on potential new telco services with low-cost offerings due to larger user base, innovation skills -  Additional traffic to support for telcos, that are circumvented in terms of revenue generation

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2-sided business models

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Evolution of business models of telcos

Third parties & OTT

Infrastructure Core Services

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New interconnection models

Associated Services

Platform & APIs

Customer Management

Data sales

Telcos

End-users

Tiered pricing & OTT Bundles

Popular services

Personal Information Management


New ways to sell broadband

Third parties & OTT

Volume

QoS

Service, content and/or device 7

Paid peering, Data termination

Telcos

End-users

Metered broadband

Telco CDN

QoS options

M2M, MVNO

Bundles Service options (premium)


Ways to sell more than broadband

Third parties & OTT

Contentcentric Services

Data-centric services

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Platform Broker/Store Ad Network Network APIs Personal APIs Audience and stats Raw data

Telcos

End-users

VoD Service Webmail Portal Personal Cloud Security ID Management VRM ?

Vincent Bonneau Presentation  

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