- The last stream session from Nokia Siemens Networks at Nokia World 2008 is with Stephan Scholz our Chief Technology Officer.
- Stephan did a general introduction on our market vision 2015 – the world connected. This is where applications reside predominantly in the Internet, broadband is everywhere, and there will be multitude of business models. In this respect, Stephan’s presentation flowed on well from the previous speaker, Bruno Giussani.
- I’ll outline what we’re Stephan – and NSN’s – flow here in the first person.
- As we see it, the challenge is where operators can derive profits in this future, 2015 market. We start by looking at what are the key assets operators hold. Overall these are divided into two areas: ubiquitous access, broadband connectivity and network control – what Heavy Reading has described as the “fiber based oil fields” carrying the digital fuel for the networks – and the direct, personal relationship to millions of customers.
- Then we need to look at how these network assets can enable added value. We’ve outlined broadly seven areas that do this for us. Four are services where the value lies in delighting customers, improving loyalty and reducing churn:
- Mobile content optimisation
- network performance management
- content access optimisation
- content filtering & virus control.
- and three are stronger enablers of new B2B revenue streams:
- Location & presence
- subscriber data & identity
- charging and billing
In terms of the first group, the industry analyst group Ovum has made the valid point that good customer service and a positive customer experience are among the few avenues for differentiation [for operators]. Operators must exploit this.
Now we’re moving into a second wave or “New Telco” era. We’ve begun talking about this phase, which Strategy Analytics described as “Telco 2.0”, in October 2008 as a time when: “operators will generate profits from their position in the telecommunication value chain and the access they have to detailed customer information.”On this specific point, the value of subscriber data & identity – and here it’s worth referring at our Apertio acquisition – is a good example of this profit generating capability.
This new era means a change in the make-up of service provider revenue. Our view is that by 2013, although ‘traditional’ telco applications will still contribute more than 85% of revenue, an increasing proportion will shift to the two categories outlined above, namely
- Internet applications with an emphasis on an enriched customer experience (up to 5% of revenue)
- Internet applications with clear opportunities for monetisation (approximately 10% of revenue)
When looking at leveraging network assets, telcos can learn from Internet models and should open up Telco application programming interfaces – APIs – to third parties. This step will help bridge the divide between the Internet and telecom worlds.
For NSN, the key building blocks, the assets of our business that will support this “New Telco” era, are our consulting and system integration (CSI) business; operations and business software business; our converged core business both in terms of identity management and the intelligent IP edge.
To summarise the key recommendations to navigate towards the “New Telco” world for operators, they are for operators to:
- Leverage network assets to drive customer satisfaction differentiation and growth
- Focus on longer term business strategy on Telco APIs
- Focus on developmet of B2B partner ecosystem
- Motivate subscribers to share their data
So that lays out what NSN is looking at, and this formed the main thrust of Stephan’s presentation.
He also covered an update on our decision to move away from Passive Optical Networks and focus on Next Generation Optical Access, and our world-first LTE-Advanced demonstration from Monday.