A new look at video

communications from

an ICT perspective

Manuel Vexler

CMO ICT, Huawei Technologies

October 6, 2013

Slide 2

• About ICT and industry transformation

• Video with and without the television

• When ICT and Video meet?

• Conclusions

Agenda

Slide 3

• ICT is a major global indicator measuring all nations’

readiness to use IT and CT

• It contains crucial marketing information for all

participants in the IT and CT industries

Information and Telecommunications

Technologies or ICT -

Slide 4

Measuring and using ICT

• ICT captures 10 major indexes and over 30 sub-

indexes of Political, Regulatory, Business, Individual,

and Socio-Economic impact on a country or region

Slide 5

Service Providers ICT

Internal IT (ITSP)

OSS BSS Other IT (e.g. HR)

CT+ IT Services

Network Svc. Business Srvc. Outsourcing,

Consulting

External IT

Enterprise

SMB, LB Verticals

Telco SMB Gov Banks ETC…

For SP ICT provides a new services,

business & operations framework

Monetization of

BSS + Reduced

OSS OPEX

Monetization of

Consulting

Services

Monetization of ICT delivers new

services for consumers, businesses,

government

Slide 6

• About ICT and industry transformation

• Video with and without the Tv

• When ICT and Video meet

• Conclusions

Agenda

Slide 7

History repeats itself…

every time a television is on

1961: Newton N. Minow calls TV a "vast wasteland." The FCC chair (1961-63) speaks at a meeting of National Association of Broadcasters & tells media execs what he thinks of the boob tube "When television is good . . . nothing is better. But when television is bad, nothing is worse.

I invite you to sit down in front of your television set & keep your eyes glued to that set until

the station signs off. I can assure you that you will observe a vast wasteland. You will see a

procession of game shows, violence blood & thunder, mayhem, violence, sadism, murder &,

endlessly, commercials — many screaming, cajoling & offending.

Slide 8

45 year on… opportunity finally arrives as

many left the Tvs, but kept the video

Slide 9

Let the numbers tell the story…

Slide 10

Video markets hyper fragmentation…

83%

91% 88%

86% 85% 84% 84%

12-17 18-24 25-34 35-44 45-54 55-64 65+

Content Fragmentation: Educational Videos added to Youtube

grow by 15% between Apr. & Aug 2013

Device Fragmentation: The media remains the message!

Demographic Fragmentation: No surprise

Consumers preference fragmentation: Content when wanted & on own device

Slide 11

• About ICT and industry transformation

• Video with and without the Tv

• When ICT and Video meet

• Conclusions

Agenda

Slide 12

• ICT: Developing countries leverage broadband to

deliver enhanced video services!

• It follows mobile leapfrogging trend with over 75%

mobile phones are in developing world (Total 6.3B/2012)

ICT Video enables leapfrogging for

developing economies

Slide 13

Tv industry fights back with IPTv!

Slide 14

OTTs step in video delivery by

lowering costs on non-Tv devices

Slide 15

ICT drivers: SPs enter the fight as

revenues from voice and data shrink

Infrastructure Services

Transmission Connectivity Hardware

Infrastructure Enablement

Internet enabling services, web hosting, conferencing, IT consulting

Internet software, mobile software, software as a service, M2M

Consumer Services Enablement

Advertising, media, ad networks, measurement, social media tools

Search directories, navigation

Consumer Services

Content, games, music, video, publisher

Commerce, financial, travel, retail

Social networks, media

VOICE MESSAGING DATA

Telco

Media

Val

ue

Ch

ain

Slide 16

ICT at work: enters Video

Conferencing and UC(Multimedia)

Slide 17

• Cloud becomes the preferred tool to compete both

against Cable Tv and OTTs

Service providers everywhere are rushing

to complete in the video markets

Slide 18

DC

Cloud

Service

Management

Web

Builder ITaaS Oss/

BSS CRM/DB Hosting Storage

Resource Pool Management

Service

Automation

DC 2 DC n DC 1

Cloud Service

Mgt.

IT Service

Mgt.

Facility

Mgt. IT Operation

Mgt.

ManageOne

Security

Resource

Computing

Resource

Network

Resource

Storage

Resource

Device

Resourc

e

• SP have the unique capability to combine cloud

managed services with QoS and QoE functions

SP offer cloud-based managed services

Virtual

PC

Slide 19

• About ICT and industry transformation

• Video with and without the Tv

• When ICT and Video meet

• Conclusions

Agenda

Slide 20

We are visual and remain visual!

Video markets will grow: Tv or no-Tv!

Slide 21

We multitask! (Ask a teenager)

Slide 22

Service providers are transforming their businesses,

operations and ecosystems to face the challenges of

IT and CT convergence

Consumers decide what to buy,

where to buy and what to use!

Slide 23

Large Carriers Become the ICT

Services Supermarket

Elastic Resource Pool

SME Gov. & Group

Cloud Service

Brokerage (Carrier)

Server

Storage Network SMS

Voice

Resellers System

Integrator

Bundles for every size business

SME/Soho Medium

Size

Large

Enterprise

Web

OA

Email

UC

Web

OA

Email

UC

Storage IP

Backup

Web

OA

Email

UC

Storage IP

Backup

CRM

ERP HRM