Published on March 5, 2009
The Business Case for Opening the Network Alan Quayle, www.alanquayle.com/blog
Typical Operator Business Cases Strategic Operational Copying
Operator’s Product Development Process Find Budget Market Opportunity Research Identified 12-18 m onths 18-30 m onths New product Re-Launch development process Launch
What’s Changed? Expectations
What customers expect 6-12 mo 18-30 m nths onths 4 month Weekly s
Developer Perspective of the Initiatives
Scenario Assumptions • Converged operator in a mature internet centric market • 10 million customers 20:80 prepaid : post-pay split • Year 1 • Silo consolidation across messaging, location and billing • Service Exposure business creation • Year 2 • Initial service exposure capabilities • Call control, enterprise mash-up, presence • Year 3 • Service exposure expansion • IPTV, streaming, and quality of service
Year 1 Analogy based on Real World Results • BT implemented a service creation process transformation project • Identify and consolidate ‘common capabilities’ • BT measured the benefits by the number of people that managed these common capabilities. • 60% decrease in workforce, a reduction of >1000 staff. • For the Scenario that would mean a saving of 500 staff • Typically ROI (Return on Investment) within 3 months • In a small operator, SDP improves an operator’s ability to scale its partner management without increasing headcount
Example Year 2 and 3 Services • Communication enabled business processes • Enterprise and Voice Mash-ups • Content 2.0 • Presence / Location • STB services • User chooses model: Usage, subscription, ad- supported • Result: $40-75M revenue in Year 3 • Just from ‘key services’ anything else is jam on top
Critical Issues in Opening the Network • Copy Smart – don’t copy dumb • An operators business is not the same as Apple’s • Don’t be a 40 year old dressed as a 20 year old • Opening the network impacts all lines of business not just trendy ‘2.0’ stuff • Make business an equal focus • Its not a ground-breaking business case for revenues • But the strategic impact of doing nothing could be fundamental to the business
We’ve been talking about it for over a decade, but soon its the customer that’s going to decide Utility Service Connectivity Provider
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