Research Agenda, Mobile Telecom Covering the most important innovations in telco strategies including data/videomonetization, multi-play services and new digital service initiatives. Our Mobile Telecom Channel covers key developments and opportunities in the telecom operator space. This encompasses the most important innovations in mobile and integrated/multi-play services and emerging digital services. Key coverage topics include telecom operators mobile data/video monetization strategies, telco diversification into new digital services, migration toward 5G networks and services, business model innovation, content and OTT strategies, telco IoT and customer experience management. Insights from our Mobile Telecom Channel are relevant for network operators, infrastructure providers, BSS/OSS players, device/os vendors, app developers, Internet companies and content owners. Our research reports include mobile network operator (MNO) bestpractice analysis, technology vendor profiles, market forecasts and consumer behavior insights. ABOUT 451 RESEARCH 451 Research is a preeminent information technology research and advisory company. With a core focus on technology innovation and market disruption, we provide essential insight for leaders of the digital economy. More than 100 analysts and consultants deliver that insight via syndicated research, advisory services and live events to over 1,000 client organizations in North America, Europe and around the world. Founded in 2000 and headquartered in New York, 451 Research is a division of The 451 Group. Analysts Declan Lonergan Research Vice President Rich Karpinski Principal Analyst, Mobile Operator Strategies Sheryl Kingstone Research Director, Business Applications Brian Partridge Vice President, Mobility Research & IoT
Overview Our Mobile Telecom Channel covers the most important innovations in mobile services and operator strategies, a market valued at US$1 trillion. The figure below illustrates our overall coverage and priority areas. As customers use of mobile data grows strongly in all regions, telecommunications operators (telcos) are faced with significant new challenges and opportunities. The most immediate challenge for most operators is effective data monetization, to translate huge growth in mobile data traffic into recurring revenues. This requires new and sophisticated approaches, including development of more innovative propositions and commercial models. It also requires telcos to enhance their core propositions to include new features, services and content. Specific areas of focus include fixed-mobile convergence (FMC), multi-play service strategies, business model disruption and new initiatives to collaborate with over-the-top (OTT) companies. The second major focus area within our Mobile Telecom research relates to telco diversification strategies. As their traditional communications and data connectivity businesses reach maturity, topline growth opportunities will continue to diminish. Telecom operators do, however, have significant assets that can be leveraged to enable expansion into select adjacent markets. This includes markets such as the Internet of Things (IoT), data analytics (sometimes referred to as big data) and content/video/tv. Through our research we identify the most appropriate and high-priority diversification opportunities. We examine how advanced telcos have successfully entered new businesses areas either though M&A or organically. Our primary research goal is to help telcos make the transition successfully into these new businesses by focusing on best-practice case studies from across the globe. Mobile Telecom Coverage Overview Source: 451 Research, 2016 Data Monetization Under data monetization the key questions addressed through our Mobile Telecom research include: How can telcos create successful and sustainable data monetization strategies? How can operators succeed in markets that are transitioning to multi-play/fmc? Which customer segments and applications will drive demand for mobile broadband? What steps can operators take to manage high levels of growth in video content? What role will new business models play in monetization strategies (e.g., sponsored data or differential access pricing)? What data pricing models should MNOs adopt to win market share, retain customers and drive ARPU? How can MNOs remain relevant in voice and messaging? Where are the best opportunities for commercial partnerships with OTT companies? What role can innovative mobile virtual network operators (MVNOs) play as the market transitions to data? 2016 451 Research LLC. All rights reserved. Page 2
Telco Diversification Under telco diversification the key questions addressed through our Mobile Telecom research include: What are the primary telco-diversification opportunities? What new businesses should telcos prioritize IoT, financial services, advertising, smart cities, others? What are the revenue opportunities for telcos in each of these areas? How are the leading international players driving growth in these adjacent markets? What M&A actions can we expect as telcos gear up in new digital service categories? Which sectors and companies should MNOs partner with for service differentiation? What strategies are telcos pursuing for success in the emerging IoT space? How significant is the telco big data opportunity? What role should content play in service differentiation and customer retention? Industry Developments and Key Enablers Beyond the core coverage areas of data monetization and telco diversification we also cover the other major developments that will shape the mobile telecom industry over the next decade. This includes issues like 4G to 5G technology migration, innovation enablers featuring vendor profiles, customer experience management (CEM), and major M&A events in the sector. In these areas the key questions addressed through our Mobile Telecom research include: How is mobile customer behavior changing? What growth rates are achievable in mobile data traffic over the next five years? How will the migration to 5G technology affect the mobile industry? How should MNOs manage the transition from 4G to 5G services? How can operators achieve their end goal of improving customer experience? How are leading telcos improving their customer satisfaction (CSAT) and Net Promotor Scores (NPS)? How is telco M&A transforming the industry landscape and what will be the long-term effects? How are vendors enabling telco innovation and differentiation in new digital services? What role will regulation play in enabling or hindering operators growth strategies? Audience Our Mobile Telecom research provides insights to help: MNOs, MVNOs and integrated operators create growth strategies based on clear market differentiation and sustainable business models. Network infrastructure vendors understand how to develop, market and sell products and services to network operators. Connected device vendors understand what is happening at the network level in order to produce market-leading devices that fully leverage the capabilities of the network. Application developers, Internet players, and video and content companies develop sustainable business models based on a full appreciation of mobile user behavior and mobile network capabilities. Telecommunications software companies, systems integrators, network testing, analytics and other technology providers understand how customer behavior and operators requirements are changing and how they should adapt their products and go-to-market strategies accordingly. Industry regulators develop appropriate regulatory frameworks and policies that balance the need for a viable network investment environment against the need to maintain healthy levels of competition between industry players, including OTT companies. Note In addition to the market dynamics listed above, the Mobile Telecom Channel will continue to collaborate with fellow 451 Research analysts across other channels as we assess the wider implications of the increased industry focus on Mobile Telecom. Numerous vendors overlap areas of our research, and some have multiple products in different technology domains. 2016 451 Research LLC. All rights reserved. Page 3
Technology & Business Insight Reports Customer Experience Management in Mobile Operators: Changes in Market Landscape Analyst: Sheryl Kingstone Publication Date: Customer experience management (CEM) and big data initiatives are extremely valuable strategies. Operators must be able to learn from customer expectations, as well as track, monitor and respond to any change. Investments in telecom infrastructure and online channels to support customers increasingly digital lifestyles must focus on more than network quality of experience they must also aim to garner insight to improve marketing and customer care. Operators will gain an understanding of the latest approaches in big data analytics that combine customer and network data for improvements in network optimization, marketing and customer care. Telco IoT Strategies Analyst: Brian Partridge Publication Date: Telecom operators around the globe are actively investing to establish a strategic position that enables the adoption of the Internet of Things (IoT) for consumer and enterprise markets. This report evaluates the current health of telecom-centric IoT opportunities, from cellular and low-power wide area networking opportunities, to platform and big data services, to full end-to-end applications and managed services. We assess the current performance of several leading operators with IoT operations and evaluate their future chances for success. This report assists operators in understanding how their current strategies align with their competition, assists vendors actively selling into the IoT groups at operators and helps enterprise decision-makers evaluate the competitive landscape for services. Digital Services Transformation Market Map Analyst: Rich Karpinski Publication Date: Q4 2016 Communications service providers (CSPs) are morphing into digital service providers (DSPs), requiring new technologies, ideas and approaches to delivering network-based services. Most if not all mobile operators today have sketched out their next-generation requirements for delivering innovative new digital services and monetizing today s 4G and tomorrow s 5G networks. The Mobile Telecom Channel s Digital Services Transformation Market Map defines the crucial categories that make up this vendor ecosystem, fitting long-standing players alongside innovative new startups. Vendor categories covered include: DPI and policy; mobile commerce (billing/charging/rating); telco big data management and analytics (TDaaS); advanced voice/messaging services; service creation (catalog/configuration/etc.); telco customer marketing (CRM/CEM/front-end/self-care); video services delivery/management; and more. Preview: Trends in Mobile Telecom 2017 Analysts: Rich Karpinski, Declan Lonergan Publication Date: Q4 2016 This report provides a view of key trends that will affect the mobile services market in 2017. It details the top trends we expect to see in the coming year, and discusses the likely impact and recommendations for each. Telco Multi-Play Strategies Analysts: Declan Lonergan Publication Date: Q1 2017 As telecom operators extend their convergence strategies and launch multi-play landline/mobile/tv services, we examine the approach taken by a number of leading companies. We assess convergence propositions, network strategy, pricing, branding and commercial impact. 2016 451 Research LLC. All rights reserved. Page 4
Telco 5G Service and Monetization Strategies Analysts: Rich Karpinski, Declan Lonergan Publication Date: Q2 2017 The first commercial 5G networks are expected to go live in 2017, so it s time for mobile operators start thinking about how to deliver and monetize 5G services. From network slicing to IoT to advanced video, 5G will require new ways of thinking about how MNOs deliver the next generation of mobile services. What Does It Mean To Be a Digital Services Provider? Analyst: Rich Karpinski Publication Date: Q2 2017 The transition from CSP to DSP is about much more than just offering a few over-the-top services. It requires a complete rethinking of the customer experience, with digital companies from Amazon to Uber offering a model for telco transformation. In this report, we ll examine the ingredients for true digital success. 2016 451 Research LLC. All rights reserved. Page 5