& corporate mobile value added services
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1 & corporate mobile value added services Case Juha Hä kä mies Juha Matti Hä kä mies Licentiate of Technology (Helsinki University of Technology) Married 2 children (3 years daughter & 5 years son) Clarinet Jazz Walking / jogging Private hobby investor Hä kä in a physical fitness test Sonera employee since /93 - R&D Expert Sonera R&D Center 04/95 - Development ManagerSonera Cable TV Department 12/97 - Technology Manager Sonera Netherlands B.V. 01/99 - Department Director Sonera New Media - Service Development 01/00 - Development Director Sonera Online Services - Product Management and Development 06/00 - Chief Technical Officer Sonera zed Ltd / zed for business
2 Index of the presentation About Sonera What - MVAS? Why - MVAS? zed + MVAS? How - MVAS? Sonera?
3 Revenue composition, January - June 2000 Equipment Sales and Other Operations 18% 7% Fixed Network Voice and Data 10% 56% Mobile Communications 9% Media and New Services Revenue January-June 2000: EUR 987 million Revenue fiscal year 1999: EUR 1,849 million Market capitalisation EUR 41 billion (May 17, 2000) Revenue composition 1,849 1,623 1,352 MEUR 991 1, /2000
4 Sonera ownership Sonera is listed on the Helsinki Stock Exchange (1998) as well as Nasdaq (1999) Finnish State 53% Finnish institutions and public 12% 35% Foreign investors Sonera personnel 7,239 7,667 7,967 8,609 9,270 9, /2000
5 Mobile value added services - WHAT? Mobile media value chain is changing Traditional Content providers Network operators (e.g. AT&T, BT) Manufacturers New Content providers Content and service aggregators Service operators Mobile ISP s Network operators Manufacturers
6 Mobile media value chain will be reconstructed Communication content Voice Service operator Network operator Traditional mobile communication Service provider Non-voice (SMS, ) Service aggregator ISP New mobile communication services New mobile media services Communication Content Traditional Voice service Mobile value added services (MVAS) Mobile value added services - success - WHY?
7 1) The usage of mobile value added services WHERE ARE WE TODAY? Basic text messages sent by 68% (58) of GSM customers Content services used by 32% (24) of GSM customers Number of registered zed users totalled 195,000 at the end of June (March 31, 2000: 170,000) Average number of text messages sent from a GSM subscription per month was 24 (18) Figures as of June 30, 2000 (Figures in brackets indicates situation on March ) 2) The best possible mobile market to start from Mobile Communications, June 2000 Finland Norway Austria Italy Denmark Sweden Switzerland Netherlands UK Spain Greece France Belgium Germany USA EU-average 32 * % of population * * March 2000 Mobile market penetration
8 3) The mix of customer traffic is changing Relative Traffic 300 Data growth 300 % Transition & Convergence Voice growth 5% 50 Data over Circuits Source: Vint Cerf, MCI Time Voice over Packets 4) The usage of 2G MVAS is growing fast Source: International Data Corporation, 1999
9 5) Mobility is coming to Internet New shipments (millions) Source: Gartner Group 2000 Mobile Terminal Access Interactive Set-Top Box Access PC-Based 6) The amount of mobile subscribers is grow fast Mobile subscribers TV households Number of PCs Mobile Handsets: Will become the dominant communications device Will supersede fixed-line telephones Are personal communications devices, offering customized services Will be used for a variety of communications and commerce applications Will utilize many networks, including 2G, 3G and Bluetooth More focus by operators on VAS as subscriber growth trails off Source: Dataquest, EMC
10 7) Growth is happening in all markets Worldwide Mobile Subscribers Growth by RegionM North America Europe Japan Pacific Rim Rest of World Source: Ovum; Analysis; Merrill Lynch; ADL Internet Subscribers in Millions North America Asia Europe Source: IDC and Dataquest Evolve to satisfy the increasing demand for information anytime, anywhere 8) The customer base will generate revenues & market Projected Revenues US $ billion, 2002 estimates Wireless industry * 110 Mobile operators share of consumer m-commerce revenues Projected Value of the market Wireless industry * 450 Value created by consumer m-commerce * Major operators and device manufacturers + 35% of all m-commerce revenues Source: McKinsey Telecommunications Spring 2000
11 9) New enabling technologies are coming Mobile wireless networks of the future Telecommunication networks Mobile IT support of the future Operator hosted services Short range techniques Wireless LAN Bluetooth (1Mbit) W-LAN (IEEE b) (2Mbit) HiperLAN2 (2 50Mbit) Telecom networks GSM (9.6 k) HSCD (30 40 k) GPRS ( k) EDGE (384 k) UMTS (384k-2Mbit) 10) Advanced terminals are coming Main functionality / factors in terminals today - tomorrow Can t afford to have another WAP start! Today Tomorrow Voice Capabilities Battery Life Services & applications Size & Design
12 zed? zed, a genuine mobile portal zed is a global mobile value added service concept conceived, designed and built to support and promote true mobility in both consumer and corporate environments
13 The zed Vision Being connected to relevant people, services and information on the move Mobile media value chain will be reconstructed Communication content Voice Service operator Network operator Traditional mobile communication Service provider Non-voice (SMS, ) Service aggregator ISP New mobile communication services New mobile media services Communication Content Traditional Voice service Sonera zed s placement in mobile communication value chain
14 Main ingredients of Sonera zed services True mobility location based services time based services Mobile media environment on the move tool relevant and timely personality Global zed operations - 09/00
15 Global mobile portal service concept: Sonera zed for consumers Communication Transactions Infotainment Accessories Corporate application access Sonera zed for consumers Sonera Travel Sonera Finder Global mobile portal service concept: Sonera zed for business Communication Transactions Infotainment Accessories Corporate application access Sonera zed for business Sonera Travel Sonera Finder
16 Sonera zed components Communication Transactions Infotainment Accessories Corporate application access Calendar Contact Book Digital signature Mobile auction Shopping Local and lifestyle based information Entertainment Ringing tones Icons GSM-postcard Customer relationship management Enterprice resource planning Flight tracking Booking Sonera Travel Sonera Finder Global yellow and white pages zed for business - example Personalised User Interface Office Directory Search for: Last Name: [ ] First Name: [ ] Specialty: [ ] Bulletin Board Sophie Smith New cards CRM Siebel Mobile Portal WAP Bulletin Board Office Directory Siebel CRM Office Directory New mails (6) Old mails (15) Send Mail Exit Bulletin Board Siebel CRM Customer list: 1. A.K. Parker corp. 2. Digitech 3. Peak Software
17 Competition - players in the MVAS field ASPs Integrators IT-Consultants Portals Terminal Manufacturer s User ISPs Intranet Providers Mobile Operators Application Developers Mobile Value Added Services
18 Killer applications of GPRS/UMTS Calendar Web browsing Content/information/commerce Corporate intranet access on the move. BUT Are applications (printing schedulers, etc) still too office centred? Are the capacity and security issues well enough understood? Are current Intranets fit for purpose? Does the network scale to 24/365 connections? How to price the services? The killer applications depend much on the operator billing The IT experts neither the customers are not experienced on byte based billing This gives operators much responsibility on being able price their new products right. Bad pricing will effect also on the usage on the value added services. Even the standard corporate and schedule applications can see multi Mb per month transfers with MS office files and AV files the fastest growing bandwidth hogs. Fixed price per user would be the ideal buyers model in the beginning but what about later? i.e. Network empty - it s a bargain for the customer Network full - reduced service level
19 MVAS for consumers - applications + content Internet Mobile Portal 2G - GSM, TDMA CDMA, imode 3G - UMTS Delivery Center Corporate related applications & content Palm-Net Partner operator powered by Network access provider Service provider Wireless terminal development Telecom WAP phones Time Smart multimedia clients Datacom Electronic calendars Increased computing resources and bandwidth, multi media, etc.
20 WAP scenarios for a corporate user Public Service Offering Operator WAP Gateway WAP portal - my wireless ISP portal GSM network Enterprise Service Offering Enterprise WAP Gateway Different passwords Different WAP GWs Different services WAP portal - my travel agency Corporate Intranet Enterprise WAP Gateway WAP portal - my company Content pull service - stock rate request NORMAL PULL User requests Mobile portal handles Service responds Mobile portal forwards Users 1 6 Request: STOCK SRA1V Sonera Bid:94, Result quotes_all_current.html 3 Filter Results, Render Response Zed 2 Create Request to Content Provider HTTP-GET Content Provider
21 Content push service - stock rate trigger NORMAL PUSH Service (PushServer) pushes - Portal forwards to the appropriate service (NAMP) - Service response - Portal sends the triggered information to user 1) User types in the limits for the stock rate WWW 2) The mobile portal constantly checks the stock rates from the external interexchange 4) The triggered information is sent to user WAP / SMS Mobile value added portal External Content Provider 3) When the user put levels are met the portal puts a message to the customer Corporate MVAS - mobile sales - an example Product info Price information Availability Solution configuration Ordering information Customer data Project status info The benefits:? Reduced cost? Instant answer to client? Improved service? Improved quality? Reduced delivery time 1) Salesman makes a query to Intranet sales database through a wireless device 2) Database provides the information 3) Salesman feeds in the order with the wireless device 4) He gets the confirmation on the done sales transaction
22 Corporate MVAS - field personnel tools - an example Work coordination Troubleshooting Updates Material Confirmation Installation Information Service Contract Info Warranty Information The benefits:? Improved Service? Improved Quality? Reduced lead times? Reduced costs 1) Field personnel has finished a job and confirms it done with a mobile device 2) The intranet work management programs receives the confirmation and sends the next suitable work order to his mobile 3) The field person receives it and acknowledges it 4) The work manager maintains the work order stacks Field personnel Intranet work management program Customer care / work manager Corporate MVAS - mobile office - an example access Corporate Calendar Directories Project management Corporate Intranet Information collecting The benefits:? Improved Service? Improved Quality? Reduced lead times? Reduced costs 1) Employee takes a wireless connection to his MVAS provider 2) Through application tunneling he gets all the same applications to his PC/mobile as if he would be in the office 3) Additionally he has access to all the MVAS portal content as like at work MVAS portal Corporate , calendar Intranet content, sales DB, CRM applications, directories
23 Corporate MVAS - mobile supervisor - an example Network monitoring Applications management Real time system information Alarm systems Delivery systems The benefits:? Improved Service? Improved Quality? Reduced down time? Reduced costs? Prohibitive management System alert - PF184 stopped Warning - system usage level at 97%... Corporate MVAS - mobile commerce - an example Order 1 Tickets >Destination 2 Initiate payment Pay: >Prepaid Credit card 3 Payment dialogue m-business Solution Transaction Handling Payment Interface 4 Payment transaction Bank/CC Source Ericsson
24 MVAS - gastronomy service - an example MVAS - location based map service - an example How do I get to XXX? Where is the next bus stop? Where can I find the closest Chinese restaurant? Where am I? What is the shortest route to YYY? Bananas only 7,90FIM/kg at O-Shop! All pants for sale at P-Shop! I want to get a taxi here. My car broke down.
25 MVAS - many more to come Trading Shopping Banking Betting Ticketing MVAS for corporations - building a virtual corporation PSTN Modem Dialup LAN Corporate intranet Mobile + IP network Fixed remote access Mobile remote access Corporate partners extranet Wireless access
26 Thank you for your time!
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