It’s All about the Killer User Experience Olivier Frelot Vice President – Professional Services Alcatel-Lucent

It’s All about the Killer User Experience

Olivier Frelot

Vice President – Professional Services

Alcatel-Lucent

Killer User Experience | Sept. 2009 All Rights Reserved © Alcatel-Lucent 2009

Global Market TrendsEnd users expectations have changed drastically …

Control has shifted to the end-users…

Always-on, freedom

Mobility, simplicity & productivity

Personal content sharing, social and business networking

Seamless and personalized service experience

High-speed connection to the contents from their preferred devices

Network Technology Agnostic (wirless, wireline …)

Games,SW, etc

27%

Audio11%

Video62%

Mix of file formats by volume of traffic generated over 4 main P2P

networks

Always connected to the content and people I care about


$ Bill.

Revenue Trends of Telco Service Providers, TV Broadcasters and Over-the-Top Providers

Over-the-top-providers Google’s growth rate was 30% in 2007 (90% in 2005)(3)

Google generates 98% of its revenues from advertising

Apple’s revenue in 1Q08: $9.6bn, a plus of 35% YoY(4) iPod + iTunes = 50% of total revenue

Skype Skype-to-Skype (free) international traffic = 4.4% of total

(2) Infonetics, 2007(1) Ovum, 2007 (3) IDC, 2007(4) ALU CS, 2008

ILEC Annual Voice Telephony Revenue Forecast 2006-2011 (US$ in Thousands)

Telco Service Providers (2) Single digit growth rate of worldwide service

provider revenue

Voice Revenue Declining

Service bundling alone is not sustainable

Marginalization of network assets with “over-the-

top” applications

Traditional TV Broadcast Advertising Revenue Saturating


Devices are becoming smarter for sophisticated user experience

Devices are Evolving to be Multi-Service and IP Capable

Media Server

Game consoles, MP3/Video

Players

Entertainment Photo Albums

Communications Home Control

Power Control of Appliances,

Lighting, Heating, Air conditioning

etc

Power, Water, Gas Meters

Security/Surveillance

Telecare

Personal Captors Child

safety

Security & Care

Store & Transfer

Smart Metering


Operator are uniquely positioned for value migration

Services providers unique position combining the best of both worlds

Dynamic Subscriber Information

(Location)

Subscriber Knowledge

2-way communication to

Enhance Interactivity

Rating and Billing Capabilities

Enhanced Productivity

(Open Presence)


CampaignLibrary

Personalization Engine

Preferences

Demographics

Usage

Segment

Behavior

Statistics

Data Mining

Predictive Analytics

Location – Presence Query

Event Correlation

Transcoding

Personalization Engine

Preferences

Demographics

Usage

Segment

Behavior

Statistics

Data Mining

Predictive Analytics

Location – Presence Query

Event Correlation

Transcoding

Personalized user experience Example – Targeted advertisements

Target campaigns

1 2 5

Ad Selection/Campaign

ManagementEngine

Ad Selection/Campaign

ManagementEngine

Content Management/ Ad Insertion

Engine

Content Management/ Ad Insertion

Engine

3 4

Mobile Internet GW

IN/Billing

Presence

HLR/HSS

CRM

Content

SMS/MMS

Location

SMSC/MMSCSMSC/MMSC

USSDUSSD

EmailEmail

WAPWAP

TVTV


Alcatel-Lucent: Global End-To-End Multi-vendor integration

MICROSOFT

End-User Devices

xDSL, xDSL, Wimax, Wimax,

3G, FTTH, 3G, FTTH, PLC, BPLPLC, BPL

xDSL, xDSL, Wimax, Wimax,

3G, FTTH, 3G, FTTH, PLC, BPLPLC, BPL

Access

WDM, WDM, SDH, SDH, PDH, PDH,

MWV, IP-MWV, IP-MPLSMPLS

Backbone & IP connectivity

Session Control & Network

applications & Enablers

Content & Internet

application providers

EML: One per sub-domainEML: One per sub-domain

Network inventory, Fault & PerformanceNetwork inventory, Fault & Performance

Service Management Service Service Management Service activation, impact analysisactivation, impact analysis

BSS


Value for the End-user

Changing the way the world communicates is about:

User-centric experienceQuality and SecurityProductivity Increase

ParticipationAnywhere, Anytime, Any Device

Entertaining Personal

Value Migration and Monetization of assets

Rapid blended services creation and deployment

Leverage Data Growth for new servicesSubscriber data for new Content-rich services

New Business Models for revenue

Value for the Provider

Key Takeaways – User-Centric Communication


Back Up


Exploit Assets to Monetize communities, content and brands …

Monetize Communities

reduce churn: individuals cannot easily move

cross sell to communities target advertising

Monetize Content generate direct revenue from

content (users are willing to pay for content)

attract subscribers through user-generated content

sell interactive content apps create attractive bundles

Monetize Brands promote own brand to grow subscriber

base generate revenue from advertising attract users with their favorite brands

Exploit Your Assets Turn TV and mobile to an bi-directional

interactive experience\ Fuel a wave of productive applications

with open presence information Create a set of applications for targeted

social networking and adverting Target campaigns based on profile,

relevance and context Be the “one-stop-shop” for billing

Don’t Imitate the OTTS – Create you own offer based on unique assets

Documents

It’s All about the Killer User Experience Olivier Frelot Vice President – Professional Services Alcatel-Lucent