The Business Case for Opening the Network

Alan Quayle, www.alanquayle.com/blog

Strategic Operational

Copying

Typical Operator Business Cases

What’s Changed?

Re-Launch

Operator’s Product Development Process

Opportunity Identified

18-30 months

Market Research

Find Budget

New product development processLaunch

12-18 months

What’s Changed?

Expectations

What customers expect

6-12 months

Weekly

18-30 months

4 months

Developer Perspective of the

Initiatives

Business Case

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

ServiceProvider

UtilityConnectivity

We’ve been talking about it for over a decade, but soon its the customer that’s going to decide