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How to manage ever growing user expectations in a cost-efficient way The Connected Home paradigm Bart Vercammen Director of Product Management Service Gateway BU

Bart Vercammen - Technicolour - The Connected Home Paradigm

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Page 1: Bart Vercammen - Technicolour - The Connected Home Paradigm

How to manage ever growing user expectations in a cost-efficient way

The Connected Home paradigm

Bart Vercammen

Director of Product Management

Service Gateway BU

Page 2: Bart Vercammen - Technicolour - The Connected Home Paradigm

Market trends

What is happening out there ?

Page 3: Bart Vercammen - Technicolour - The Connected Home Paradigm

Economic climate

3 9/28/2011

Source: Business Week, Wall Street Journal, Economic Times, Bloomberg

Page 4: Bart Vercammen - Technicolour - The Connected Home Paradigm

Source: Bloomberg, Reuters

Declining Subscriber net adds

• EMEA and NAM reaching point of saturation

• Growth has to come from

• Customer acquisition (Churn) - Increasing ARPU

• Technology replacement

• Expanding geographical scope

• consolidation

• APAC BB market keeps growing

BroadBand Market

4

Source: Dell‟Oro Q2 2011

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

net adds by region

NAM EMEA APAC RoW

Market liberalization increased competition, even in growing APAC market

9/28/2011

Page 5: Bart Vercammen - Technicolour - The Connected Home Paradigm

Consumers needs

Market Pressure

5

Richer user

experienceEfficient time spending

(work and leisure)

Value added servicesPersonalized

content &

sharing

Technology complexity and shorter Product Life Cycles having impact on costs

9/28/2011

Anytime,

anywhere, on

more screens

Page 6: Bart Vercammen - Technicolour - The Connected Home Paradigm

Spending on basic connectivity

Additional NSP services(ambition)

Pressure on ARPU

6

Market Pressure

ARPU divide over time

• Revenue from basic connectivity flat or declining

• Compensated by additional services (e.g. digital TV)

• New players take a bite from the ARPU cake

9/28/2011

Google MVNO?

Page 7: Bart Vercammen - Technicolour - The Connected Home Paradigm

Remote access

All this translates into “The Home”

7 9/28/2011

DSL

Fiber

cableWANLTE

Page 8: Bart Vercammen - Technicolour - The Connected Home Paradigm

Remote access

All this translates into “The Home”

8 9/28/2011

DSL

Fiber

cableWANLTE

• More complex Home environment poses bigger challenges

for NSPs

• NSPs are the place to be in case of trouble, even though

they are not responsible for it

Impact on

OPEX24% 23%

Page 9: Bart Vercammen - Technicolour - The Connected Home Paradigm

NSP Challenges

What are the implications for NSPs ?

Page 10: Bart Vercammen - Technicolour - The Connected Home Paradigm

Bottom-line result for NSPs

10 9/28/2011

Page 11: Bart Vercammen - Technicolour - The Connected Home Paradigm

11

Balancing between Revenue and Cost

COSTREVENUE

9/28/2011

How can the introduction of new products, services and applications increase revenues and the life-time value of

a customer while keeping the costs of operations under control?

Page 12: Bart Vercammen - Technicolour - The Connected Home Paradigm

12

Balancing between Revenue and Cost

COSTREVENUE

9/28/2011

How can the introduction of new products, services and applications increase revenues and the life-time value of

a customer while keeping the costs of operations under control?

Page 13: Bart Vercammen - Technicolour - The Connected Home Paradigm

How can the introduction of new products, services and applications increase revenues and the life-time value of

a customer while keeping the costs of operations under control?

COSTREVENUE

13

Balancing between Revenue and Cost

9/28/2011

Page 14: Bart Vercammen - Technicolour - The Connected Home Paradigm

How can the introduction of new products, services and applications increase revenues and the life-time value of

a customer while keeping the costs of operations under control?

14

Balancing between Revenue and Cost

9/28/2011

How can you lower your service costs substantially?

How can you keep up with the proliferation of

devices and technologies in the market and assure

that your network is always up to the latest

standard?

How can you build and ecosystem of partners and

applications in order to increase the switching

costs of your current users and make them more

loyal?

How can you introduce new services to the

market faster so you can keep ahead of

competition, but still in a reliable way?

COSTREVENUE

Page 15: Bart Vercammen - Technicolour - The Connected Home Paradigm

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How NSPs balance between Revenue and Cost

COSTREVENUE

9/28/2011

Source: Belgacom

Churn reduction

OPEX

Source: Deloitte, 2009

ARPU increase

CAPEX

Source: France Telecom, Deutsche Telecom,

Telenor, Tele2

Page 16: Bart Vercammen - Technicolour - The Connected Home Paradigm

Technicolor view

How can NSPs deliver on their marketing message ?

How can NSPs control their OPEX ?

Page 17: Bart Vercammen - Technicolour - The Connected Home Paradigm

3rd party applications

Openness + Robustness + Security = …

17 9/28/2011

Open Digital Home platforms need to be open towards various parties

so VAS can be developed/created. Openness needed to guarantee TTM

Robust Your VAS cannot impact the Customer Value and Perception of your basic

services offered

Secure Opening up needs full enhanced Digital Home security that

extends beyond the devices to safeguard the integrity of the various apps

Openness + Robustness + Security = prerequisite for creating an ecosystem

with value added services without compromising the basic offering

Page 18: Bart Vercammen - Technicolour - The Connected Home Paradigm

Full Digital Home interaction

18

All content and all interactions available

seamlessly on every device in the

home

9/28/2011

Page 19: Bart Vercammen - Technicolour - The Connected Home Paradigm

Efficient & userfriendly problem resolution

19 9/28/2011

Intuitive user

interaction

Smart Self

resolution

Straightforward interaction with the Digital Home so helpdesk

calls are avoided

Page 20: Bart Vercammen - Technicolour - The Connected Home Paradigm

Efficient & userfriendly problem resolution

20 9/28/2011

Intuitive user

interaction

Smart Self

resolution

Fast problem

resolution

When minor issues arise, the digital home is intelligent to

propose solutions and solve the problems

Page 21: Bart Vercammen - Technicolour - The Connected Home Paradigm

Efficient & userfriendly problem resolution

21 9/28/2011

Intuitive user

interaction

Smart Self

resolution

Fast problem

resolution

Specialized

intervention

When helpdesk intervention is needed, real-time diagnostics

of the full Digital Home ensure fast problem resolution

Page 22: Bart Vercammen - Technicolour - The Connected Home Paradigm

Efficient & userfriendly problem resolution

22 9/28/2011

Intuitive user

interaction

Smart Self

resolution

Fast problem

resolution

Specialized

intervention

In case of severe issue, intervene in the Digital Home through

Diagnostic OSGi bundles and solve the problem

User friendly experience

Self care

Limit helpdesk calls

First time problem resolution

Page 23: Bart Vercammen - Technicolour - The Connected Home Paradigm

Seamless and fast service upgrades / roll-outs

9/28/201123

Add new building blocks easily, without impacting other

components

• No service interruption for the consumer

• Reduced downtime

Faster time to market

• Increased flexibility

• Short testing cycles

• Modules dynamically installed from Backend

• `

Page 24: Bart Vercammen - Technicolour - The Connected Home Paradigm

From „Home‟ to …

24

Back-end

Remote access and control

DSL

Fiber

cable

LTEWAN

3rd party vendor portal

Helpdesk

NSPs portal

NSP backend

Selfcare

9/28/2011

Personal Media Manager

Digital Home

‘Digital Home’

Page 25: Bart Vercammen - Technicolour - The Connected Home Paradigm

Thank you for your attention

Bart Vercammen

Director of Product Management

[email protected]

Do you have any questions?