1. OSS BSS – Telco World Trends

2. Telcos are facing significant challenges to their business model due to the the inability of forecasted revenue to keep pace with consumption and cost
Advent and growth of of smart portable devices is driving significant uptake of mobile content consumption
The demand for new services and adoption of devices with higher data usage levels will further accelerate this trend

3. OSS/BSS holds the key to address key operator goals in the current market
Key Operator Goals in Today’s world
Drive Revenues
New service areas such as M to M (telematics, ehealth,... )
Capitalize on the rising demand for content
Increasing the gamut of services offered
Improve & sell QoS
Rapidly evolve and commercialize services
Partner and offer third party services
Flexible and standards based IT systems
Real-time Services
Create new revenue opportunities
Develop Flexible Business Models
OSS/BSS Systems
Cut Costs
Align QoS with Customer Class of Service
Align IT spend with strategic goals
Personalized service offerings
Usage of cloud to ‘rent rather than buy
Network optimisation through usage observation.
Better align IT with the long- term strategic goals
IT as a business enabler and not a cost center
Outsource routine functions to focus on innovation
Copyright © 2009 Capgemini. All rights reserved.

4. Basic or Multimedia Phone
The demand for new services and adoption of devices with higher data usage levels will further accelerate this trend
File sharing and Video are expected to be the largest segments of consumer internet traffic, fueled by content sharing amongst digital consumers
Mobile Internet Devices with higher processing power and access speeds have higher data consumption
7 GB
CAGR
36%
1-1.4 GB MB
1-25 MB
~50 MB
~150 MB
Basic or Multimedia Phone
Blackberry
Other Smart Phone
iPhone
3G Wireless Card
4G Wireless Card
Source: KPCB, 2011, FCC,” Annual Report and Analysis of Competitive Market Conditions With Respect to Mobile Wireless, Including Commercial Mobile Services”, May 2010, Cisco, “Cisco Visual Networking Index: Usage Study”, October 2010
Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group
Copyright © 2009 Capgemini. All rights reserved.

5. The market is also witnessing emergence of multiple pricing models that bring forth with them new IT challenges
Pricing Models
Description
Example
Indicative IT Challenge
Pay-per-Use
Allowing consumers to access content per usage instance
WSJ Mobile App
CRM/Billing systems not capable of handling dynamic scenarios with real-time charging and payment
Context Based Pricing
Pricing involving combination of service type, partner subsidy, subscriber segment, location
Location -based Services
Billing systems are not capable of real-time charging based on multiple variables defining context
QoS / bandwidth Based Pricing
Charging based on QoS / bandwidth demands and network resource utilization
Netflix
Billing systems do not have capability to dynamically charge based on real-time session / network data
In-app purchasing
Allowing consumer to purchase content within application
Angry Birds
Partner billing is not capable of handling dynamic scenarios where charging / billing depends on customer’s purchase decision
Advertising supported
Cross subsidies / freebies for accepting ads
Groupon Mobile
Billing systems may not be capable of handling dynamic charging scenarios based on customer’s decision of accepting advertisement
Personalized Bundles
Offering personalized bundles based on a customer’s behavior / preferences
Behavior- based Personalization
Billing silos, lack of single view of customer and lack of real-time pricing makes personalized offers difficult
Source: Capgemini analysis
Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group
Copyright © 2009 Capgemini. All rights reserved.

6. Operator’s Involvement
Operators will need to modify the operational models and the nature of their involvement to address emerging opportunities
Introduction
Challenges
Role of BSS/OSS
Product Description
Key Consumer Benefits
Operator’s Involvement
Electronic book reader, with bundled global 3G access
Product has access to Kindle bookstore for purchasing e-books
Pervasive global access to 3G for purchasing content without worrying about data harges
AT&T provides wholesale access to Amazon for the device
AT&T’s involvement is limited to network access without billing
Car navigation device with bundled 3G access
Bundled 3G access enabling real-time traffic updates
Access bundled for one year
Vodafone offers one year of free bundled access
Consumers to decide on whether to continue the plan beyond an year
Operators will have to be prepared to work with models where they potentially need to integrate billing with partners for revenue share
Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group
Copyright © 2009 Capgemini. All rights reserved.

7. Customer Journey: Requesting a movie
Managing services in a multi-partner, multi-device environment poses significant challenges to the operator
Devices
Content Aggregators
Operators
Request Video
Allocate Bandwidth 1
Portal
Network 2
Customer Journey: Requesting a movie
Stream
Video on
the network 4
Send event to
charge the customer 3
Invoice
Customer Billing 5 6
Payments
Payments
Partner settlement 7
Revenue Sharing
FULFILLMENT
Providing a seamless experience with real-time activation / service delivery
Effective handling of order fallout / jeopardy situations and keeping the customer informed
ASSURANCE
Managing devices to ensure Quality-Of-Experience
Managing Quality-of-service in a muti-partner domain
CHALLENGES
Ensuring effective bandwidth to provide ubiquitous, quality service
BILLING
Handling dynamic pricing revenue sharing scenarios e.g. user decision of in-app purchase
Dispute settlement / revenue sharing with multiple partners
Copyright © 2009 Capgemini. All rights reserved. 7

8. Channel Breadth
Upgrading the CRM layer will allow operators to increase their service breadth and depth to implement an integrated multi-channel customer service strategy
Capability Maturity
Social media presence
Dedicated social media care teams
Social media integration
Automated social media monitoring and analytics
Social Media Customer Service
Simple self-service assistant
Simple chat-bots
Advanced chat-bots
Customer Service Bots
Uniform experience across channels
Availability of cross- channel interaction history
Optimized call handling strategy with seamless switch-over
Multichannel Integrated Customer Service
Grand-slam
Mature Presence
Growing Presence
Untapped
Source: Capgemini Analysis; Company Websites

9. Automation and intelligent targeting using social media will increasing be a critical component of next generation customer service
Introduction
Challenges
Role of BSS/OSS
Next Generation Customer Service Solutions and Implementation
Next Gen Solution
Elaboration
Examples
Pro-active identification of customer needs and dissemination of information
Scan social media activity to identify new prospects or cross-sell / up-sell opportunities
Place promotional content about new products on social media and invite users to view it
Vodafone, Orange and T-Mobile Netherlands have started deploying influencer marketing solutions
Behaviour based product discovery
Drive cross-selling and up-selling by analyzing customer’s past purchasing patterns
Amazon’s recommendations are based on predictive analysis based on customer’s past history and comparisons with customers with similar purchase patterns
Multiple customer service channels with uniform experience
Recommend optimum call strategy based on customer’s channel preferences and call types, etc
Escalate from a self-service session to bot and agent assisted session without losing context
BT’s ‘Ask Emma’ is a virtual agent service that answers customer’s queries about products and provides basic support
Leveraging knowledge of other customers for query/ problem resolution
Create open discussion boards to discuss customer issues and enable peer resolution
AT&T has customer care on Twitter where customers can post problems / share knowledge or seek support from AT&T support team
Brand-building by managing the experience of the customers
Promote knowledgeable and influential customers as brand evangelists on social media
Leverage advanced social media search capabilities to pro-actively identify customer issues
Invite users to participate in promotional events
Comcast monitors twitter for customer conversations and pro-actively contacts the customers to address their concerns
Source: Capgemini Analysis; Company Websites; Pursway.com, ‘Vodafone, Orange , other mobile leaders and consumer companies step up influencer marketing approach’, Feb 2010; Company Facebook Pages; Businessweek.com, ‘Comcast’s twitter man’, Jan 2009

10. Focus on increased personalization, new revenue & pricing models in a multi- device multi-partner environment will drive operator’s OSS/BSS evolution
Functional Domains Impacted
BSS
OSS / Mediation
New Revenue and Pricing Models
Dynamic Context Based Charging
Converged Billing Platform
Integrated Policy Management
Real-Time for pre-paid
Multi-party Services
Real-time Interfaces
Dynamic Wholesale Charging
Partner Management
New Business Requirements
Personalization and Customer Control of Service
Subscriber Data Management
Real-time on-device reports
Enhanced Policy Management
Policy Management
Real-time Bandwidth, QoS, Resource Management
OTA Updates
New Functionality Required
Existing Functionality that needs Enhancement
Source: Capgemini TME TS Lab analysis,
Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group
Copyright © 2009 Capgemini. All rights reserved.

11. The existing OSS/BSS landscapes are insufficient and must be adapted to meet the market demands
Ensure billing systems can support new models
Prepare systems for increased use of third parties
Innovate your social media strategy
Utilize BI solutions for network and service quality
Improved self service solutions
Usage data warehouses
De-couple channels from order processes
Mediation is key in reducing billing data
Build social CRM solutions
Re-think traffic data solutions
Increased order automation
Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group
Copyright © 2009 Capgemini. All rights reserved.