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1© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23rd, 2008 Broadband with no Boundaries Expocomm, Buenos Aires September 2008.

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Presentation on theme: "1© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23rd, 2008 Broadband with no Boundaries Expocomm, Buenos Aires September 2008."— Presentation transcript:

1 1© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23rd, 2008 Broadband with no Boundaries Expocomm, Buenos Aires September 2008

2 2© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Our market vision of 2015 – the World connected Applications pre-dominantly in Internet Broadband Everywhere 5 Bn people connected Multitude of business models Applications predominantly in Internet

3 3© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 What trends are currently changing our industry? From Voice to data Social trends Mobile communication everywhere Richer communication Traffic ARPU Cost Economic trends Price erosion New service Strategy Technological trends Penetration of Internet Broadband access Requirements for higher profitability in the world of communication Cheap voice for the mass market Multimedia applications as a commodity, and mobility High bandwidth and capacity at low cost The current trends put operator demands in conflict with subscriber requirements: Profitability vs. The market wants more for less

4 4© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Content Service trends End-user insights Broadband service strategy development Broadband service examples & success stories Broadband Solutions & Evolution Summary

5 5© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Worldwide Service Provider Revenues (bn ) CAGR Broadband data is the growth segment in the telecommunications market -1,1% 3,1% -11,1% 14,9% 18,6% 10,1% Mobile Data Fixed DSL+Internet Fixed Data IP/Enet Fixed Data Legacy Mobile Telephony Fixed Telephony Source: Nokia/Nokia Siemens Networks July 2007, Yankee Group Fixed Revenue Broad- band

6 6© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Mobile internet access is taking off - Worldwide 3G Penetration is hitting 15% 3G relates to WCDMA and CDMA2000 1xEV-DO Source: Strategy Analytics % 10% 20% 30% 40% 50% 60% 70% Quarters after Launch Japan Korea Italy UK France Australia Portugal US 3G Subscriber Market Share

7 7© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Broadband enables VoIP Services become network independent time PSTN PLMN Data and IP broad- band fixed networks mobile networks VoIP WLAN device FMC mobile devices (device FMC) VoIP traffic WLAN unwires VoIP Mobile devices support VoIP over WLAN and affect mobile networks … and finally mobile broadband support VoIP as wellVoIP is the first service to become network independent

8 8© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 NTT Corp 55 5) Vodafone 192 China Mobile 296 T-Com 50 5) Verizon 53 4) AT&T 76 4) China Netcom 127 4) Top 5 fixed operators (# subscribers) Top 5 mobile operators (# subscribers) 5) Top 5 internet portals (# IM and VoIP subscribers) China Unicom 163 Telefonica Móviles 118 T-Mobile 92 Source: Nielsen/Netratings 03/06, Nokia Siemens Networks 2007 Benchmark of active user bases (subscribers in million) 4) Status: , source: company pages 5) Status: Q3/2006, source: company pages AOL 53 3) eBay/Skype ) Google 467 2) 1) Members + VoIP users, 10/06 2) Site users, 10/06 3) Active IM users, 03/06 MSN 27 3) Yahoo 22 3) Major internet portals offer VoIP to their large active user base, threatening traditional telcos

9 9© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Market boundaries are diminishing – different players are increasing their addressable market Fixed and mobile Broadband Internet Bundling with VoIP and home multimedia Unification of Customer Relationship Management Mobile only broadband on the move and at home Hybrid strategy with additional fixed broadband offer PSTN substitution with home zone or VoIP on top of DSL MVNO launch Fixed broadband with VoIP on top as complementary voice product IPTV based home multimedia Multi-play providers are often only virtually integrated, owning no or just one network, and offering services on the other side by utilizing others wholesale capacity. Mobile Voice Fixed Voice Broadband Internet TV Expansion towards Quadruple-Play Offers Hybrid provider Fixed provider Mobile provider ISP MVNO launch Fixed boadband Internet with voice flat rate on top Own community setup Typical strategies

10 10© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Content Service trends End-user insights Broadband service strategy development Broadband service examples & success stories Broadband Solutions & Evolution Summary

11 11© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 The next step for applications is going mobile Mobile portals Mobile broadband Content Self-created Online distribution Information Search, maps Creation Publishing Commerce Online commerce of physical and digital goods WAPEDIA Work Mobile push Virtual environments Gaming Dating Etc… Communities Contact networks Blogs Recommending, tagging, swapping content

12 12© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Large user segments change from being a passive consumer to an actively participating prosumer » Web2.0 is deeply collaborative » Intensive communication over various channels » Media discovery » Search and social interaction are replacing media company control » Terms of consumption » Consumers can time-shift, place-shift, and device-shift content » User-generated and selected content » Value of blogs, wikis, video clips and podcasts etc) increases by tags and comments of others The users become active part of the Web2.0

13 13© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 User loyalty is strongly decreasing % Likelihood of changing operator/ provider within next three months Base: All main mobile phone users

14 14© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Data service quality, service portfolio and service bundles are major sources of subscriber dissatisfaction % Satisfaction Top 2 boxes (4-5) % Base: All main mobile phone users Overall satisfaction Voice/ reception quality Network coverage Brand/ image of network operator Handset offerings Tariff structure and bundle offerings Customer care/ after sales service Service offerings Call cost Quality of data service (including speed) Data cost Satisfaction level with current mobile operator overall and with respective aspects N= Very satisfied Not satisfied at allDont know/ refused

15 15© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Top 3 most influential factors for using broadband content services Pricing of services Ease of access Speed of downloading Quality of image and sound Speed of browsing Up-to-date service content Popularity of services Network quality or reception Variety of content service category/ topics Knowledge of the benefits/ information of the service Speed of video/ audio streaming Variety of information within content service category Word-of-mouth of services Ability to download to phone and PC at same time/ cost Base: All who have ever used any content service (184) % Prompted – Top mentions User experience in terms of simplicity, quality, speed and ubiquitous availability is key

16 16© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Content Service trends End-user insights Broadband service strategy development Broadband service examples & success stories Broadband Solutions & Evolution Summary

17 17© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 The users why, where and how questions have to be answered convincingly Staying connected with peers and personal content Best available quality and speed on most appropriate device Convenient usage avoiding cognitive effort Premium interactive multimedia services Enhanced Web2.0 Premium VoIP Converged IPTV Ubiquitous high speed access Always best connected - wireless and wireline Bandwidth evolution from xDSL towards xPON Bandwidth evolution from HSPA towards LTE & WiMAX Access independent service availability Common access method and feature set Call continuity between stationary and on the move User desired benefitsKey success factors for provider differentiation Why should I use it? How complicated is it? Where can I use it?

18 18© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Providers competitive advantage – providing premium services ubiquitously and simply Access independent service availability Premium interactive multimedia services Ubiquitous high speed access Why should I use it? How complicated is it? How fast is it? Where can I use it? How to gain competitive advantages? Multi- play

19 19© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Different broadband use cases have to be covered to maximize share on subsribers wallet Mobile TV Stationary Internet (incl. basic VoIP) IPTV home infotainment Web2.0 communities Premium VoIP Premium content Inner multiplay area - Differentiation & Up Sell Broadband ARPU estimate for active users of the service Average Western Europe values Only direct revenues, no advertising considered Internet At home / office TV On the move Mobile Internet Broadband multiplay arena

20 20© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Content Service trends End-user insights Broadband service strategy development Broadband service examples & success stories Broadband Solutions & Evolution Summary

21 21© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Quadruple play packaging is a megatrend in the market Source: DTAG, 2006 Source: BT, 2005 Source: Wanadoo, 2006 Source: Cascade- A PCCW NGN Asia, 2006

22 22© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Content Service trends End-user insights Broadband service strategy development Broadband service examples & success stories Broadband Solutions & Evolution Summary

23 23© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Price per Mbyte has to be reduced to remain profitable Source: Light Reading (adapted) Voice dominated Data dominated Traffic volume Revenue Time Network cost (/bit) Traffic volume

24 24© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Availability of access highways Innovating wired and wireless access technologies and standards GERAN evolution / HSPA & LTE Towards cost efficient high speed mobile access Radio technologies for IMT-Advanced Increased spectral efficiency, link capacity and coverage DSL and fiber evolution Towards cost efficient high speed fixed access

25 25© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Availability of access highways … in terms of bit rate, coverage, quality, security DSL is the benchmark for end-user experience today Requirements on network set by Innovative services with high volume traffic (e.g. IP TV) Interactive Web2.0 based applications Increase bitrates on copper cables utilizing the existing infrastructure Improve fiber optics to maximize performance-to-cost-ratio Drive radio access evolution addressing performance and cost challenges Build-up powerful and flexible backbones for high-volume traffic at high quality 1990 Time k 1M 100M 1G 10G 10M GSM 9,6 Kbps ISDN-BRI 2x64+16 Kbps ADSL 3-8 Mbps Cable Mbps GPRS Kbps EDGE Kbps WCDMA 2 Mbit/s HSDPA 10 Mbps Fixed Access Mobile Access VDSL 50 Mbps FTTH 155 Mbps LTE 100 Mbit/s 4G 1 Gbit/s Bandwidth (bps) [peak user data rates]

26 26© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Content Service trends End-user insights Broadband service strategy development Broadband service examples & success stories Broadband Solutions & Evolution Summary

27 27© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23 rd, 2008 Premium interactive services Premium VoIP to address the Web2.0 paradigm shift IPTV with personalized and interactive content Strong user, ARPU and loyalty growth Ubiquitous high speed access Fast rollout of sufficient DL and UL capacity needed: VDSL/fiber and HSPA/WiMAX) Hybrid fixed and mobile strategy for maximum revenues Access independent service availability User is always best connected No complexity challenges for the user Service continuity and simple access to personal service suite Broadband everywhere…. Enforced competition is re-defining the market Market boundaries are diminishing, Major internet players are threatening telcos With broadband access, services become network independent. User loyalty is strongly decreasing Data service quality, service portfolio and bundles are major sources of dissatisfaction Speed, ubiquitous availability, quality of content presentation and simplicity is key

28 28© Nokia Siemens Networks Broadband without Boundaries / GHW / September 23rd, 2008 Thank you !


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