Telco 2.0™ Executive Brainstorm

Created by
STL Partners Ltd

Platinum Partners

Ericsson

Gold Partners

aito

Aricent

Blyk

Nokia Siemens Networks

Oracle

Ubiquisys

 

Silver Partners

Aepona

Bronze Partners

Huawei

Juniper

Martin Dawes

Metaswitch

Wipro

In partnership with

Anaylys Mason

Arete Research

TelecomTV

TelecomTV

Day 2 - 10th November 2010: M2M and Embedded Mobility 2.0

Defining the most profitable strategic role(s) for telcos in this developing market

Overview

Most industry analysts agree that there will be a dramatic increase in the number and nature of “connected devices” over the next 3-5 years.  These are predicted to run into tens of billions and include communications-enabled consumer devices, machines that move around (vehicles), things that don’t (vending machines, street furniture) and a myriad of sensors, cameras and active agents.

However, telcos need to make sure that this market opportunity evolves in a way that they can benefit from. As things stand, with current M2M strategies, most telcos are only addressing a fraction of this opportunity and, unless they think more creatively about the market, will only capture a small proportion of the value from it. How can they prepare to do better out of M2M – to offer platform-based services beyond connectivity?

Format

The ‘Executive Brainstorm’ uses a special interactive process called ‘Mindshare’. This mixes short, specially briefed stimulus presentations, with newly commissioned market analysis, interactive technology to enable everyone’s voice to be heard and to support voting on key issues, and panel discussions with leading experts.

AGENDA

0800 Registration Open

0830 Welcome, Introductions & Warm Up

  • Philip Laidler, Consulting Director, Telco 2.0 Initiative

0900 M2M & Embedded Mobile - Opportunities, Challenges and Business Models

Historically, the telecoms industry has taken a vertical approach to M2M and embedded mobility opportunities with particular focus on automotive and transport, security and surveillance, and utility metering and monitoring.  A more recent approach has been to focus on developing an open horizontal platform upon which third-parties can create solutions.  What are the benefits and issues of each approach and which is most suitable in different circumstances?

Key questions to debate

  • Key challenges and opportunities for operators
  • Strategic options:  What to do?  How to do it?
  • Comparing the business models and opportunities for operators for vertical approaches to new horizontal strategies. How do the skills required for vertical and horizontal platforms differ?
  • Identifying where the established ‘vertical’ approach is most successful and whether this is effective beyond large enterprise markets. Which verticals have the most potential for operators in the short and long term?
  • Detailed examples and case studies from key industry sectors including automotive and health.

Presenters and Panellists
Short stimulus presentations, followed by discussion between, and feedback from, participants using our ‘Mindshare’ interactive technology, followed by a panel discussion, finishing with some voting on ‘next steps’.

Stimulus Presenters and Panellists

  • Maurice Zembra, General Manager, Vertical M2M
  • Sven Krey, Head of International M2M Sales Development, Deutsche Telekom
  • Johannes Mueller, Senior Strategy Manager, Swisscom
  • Rudolf van der Berg, Industry Consultant Telecom, Logica

Telco 2.0 background reading:

 

1030 Break

1100 Adding value to connectivity – Horizontal strategies for service enablement

Much of the value in M2M sits above the “raw payload” of connectivity.  All too often, operators find themselves caught in a bidding war for cheapest possible connectivity prices.   Typically, in any given traditional M2M project, the connectivity accounts for a tiny fraction of the overall value created, with devices, integration and application development taking the lion’s share.  How can operators add more value?

Key questions to debate

  • How will the M2M future play out for the different wireless network technologies?  Who will be the biggest winners (2G, 3G, HSPD, LTE, WIMAX, WIFI, ZIGBEE)?
  • How can telcos drive growth in M2M and enjoy a greater share of the value created ?
  • What new business models are emerging to support embedded SIM devices?
  • What platforms will be needed to enable the Internet of Things?
  • What are the concrete examples of adding value and generating new revenues from M2M services?
  • How should operators organise themselves to address new M2M business models?

Presenters and Panellists
Short stimulus presentations, followed by discussion between, and feedback from, participants using our ‘Mindshare’ interactive technology, followed by a panel discussion, finishing with some voting on ‘next steps’.

Stimulus Presenters and Panellists

  • Magnus Bakken, Head of Market Communication, Telenor Objects
  • Hugues Severac, Head of M2M Strategy, Orange
  • Marc Sauter, M2M Partner Manager, Vodafone
  • Peter Linder, Director Network Strategy, Business Unit Broadband Networks, Ericsson

Telco 2.0 background reading:

 

1200: Overcoming customers' practical issues to creating the ‘internet of things’

Building the ‘internet of things’ and establishing a valuable ongoing role within it will require the Telecoms industry to overcome several challenges.  Telcos need to lower the cost of supporting M2M and embedded mobility business and provide the right interfaces and functionality to M2M customers.  Many small improvements and fixes will be needed.  These include: device numbering, SIM inventory costs, network congestion and network service differentiation for devices/apps.  How can the industry best move forward on these practical issues?

Key questions to debate

  • Developing and delivering M2M and embedded mobility solutions is too slow, complex and expensive today – specific examples of how this can be / could be overcome
  • How can chip and device manufacturers gain better visibility on the how their hardware is to be used and what functionality is needed by applications?
  • What are the different approaches to deploying and activating services?  How can this be simplified and the costs of managing connected devices be reduced for application service providers and their customers?
  • Software and application developers need to better understand how connectivity can add value to their solutions and how these can be developed, tested, piloted and launched:  quickly, cheaply and in a future-proofed manner?

Presenters and Panellists
Short stimulus presentations, followed by discussion between, and feedback from, participants using our ‘Mindshare’ interactive technology, followed by a panel discussion, finishing with some voting on ‘next steps’.

Stimulus Presenters and Panellists

  • Magnus Bakken, Head of Market Communication, Telenor Objects
  • Hugues Severac, Head of M2M Strategy, Orange
  • Marc Sauter, M2M Partner Manager, Vodafone
  • Rudolf van der Berg, Industry Consultant Telecom, Logica
  • Sven Krey, Head of International M2M Sales Development, Deutsche Telekom

Telco 2.0 background reading:

 

1330 LUNCH

Afternoon Overview

These sessions centre on the crossover issues that draw on the learning so far from the Digital Entertainment sessions that have discussed the direct to consumer and mobile opportunities, the Consumer 2.0 sessions that have built a framework for the value of customer data and the M2M/Embedded Mobility 2.0 sessions, which examined the development and new business models of a market for billions of connected devices.

 

1430 The Connected Home

  • The role of the iPad, tablets, MIDs, 3D and Internet TV’s, Set Top Boxes and Media Servers and Smart Meters, and other connected devices on the digital economy.
  • How new operating systems and hardware can enable richer consumer and business interactions.
  • Market scenarios, opportunities and threats.

A whole series of connected devices are entering homes and all, from games consoles and tablets to set top boxes, media servers and smart meters. The connected home is a point of confluence for two of the major new growth markets, namely connected entertainment and M2M/embedded. With these come two emerging ecosystems and a host of players all looking to gain a position of power in the value chain that will gain them a greater share of the revenue, the connected home is becoming a hotbed of activity and competition.

Hypothesis being tested

  • The ability of connected devices to serve more than one purpose will lead to a natural consolidation of the market rather than a proliferation of an ever increasing number of boxes in the home
  • The user interface to the gateway will be a primary differentiator in the battle for the home hub but not the only differentiator
  • Telcos have both the connection and additional assets – customer data, billing, customer care, content delivery, identification and authentication – that can support and enhance the services being delivered by connected devices
  • By leveraging their assets, telcos can put themselves at the heart of the connected home ecosystem

Key question to debate

  • Is there a need for more than one home hub? What are the advantages and disadvantages of a single interface to all home connections for the user and what are the implications for business models for one or multiple hubs?
  • Does control of the business model lie with the best user interface?
    How is the ecosystem developing each of the hubs and are there any commonalities?
  • Which telco assets are important to home hubs?
  • How can telcos leverage the connection and their valuable assets to maximise their role in the connected home?
  • Should telcos be attempting to be the one hub or provide services to a range of other hub service providers?

Presenters and Panellists
Short stimulus presentations, followed by discussion between, and feedback from, participants using our ‘Mindshare’ interactive technology, followed by a panel discussion, finishing with some voting on ‘next steps’.

Stimulus Presenters

  • Nicolas Bry, SVP, Orange Vallee
  • Diego Massidda, Director of Video & Connected Home, Vodafone Group
  • Fabio Sergio, Creative Director, Frog Design

Panellists

  • Mike Grant, Principal Consultant, Analysys Mason
  • Nicolas Bry, SVP, Orange Vallee
  • Diego Massidda, Director of Video & Connected Home, Vodafone Group
  • Fabio Sergio, Creative Director, Frog Design

Telco 2.0 background reading:

 

1600 Break

1630 Augmented Reality and Mobile Apps

  • Disruptive business model opportunities at the intersection of technology, devices and consumer data.
  • Market scenarios, opportunities and threats in B2B and B2C

The primary focus to this point has been on the use of telco capabilities as a channel and to deliver content to every platform available, especially mobile. However, to just use the new mobile channel as a platform for the same content is missing a major opportunity as by using the information around the user (augmented reality) and complimentary apps, the entertainment experience on mobile and other platforms can be enhanced, adding new value propositions to the market. Includes new Telco 2.0 use cases.

Hypothesis being tested

  • There is value in the data surrounding a user is valuable and can be monetised for entertainment
  • Augmented reality provides a true differentiator for content owners and retailers
  • There is a complimentary mobile/tablet experience that can enhance a main screen viewing experience (eg ESPN sports stats apps)
  • The ability of consumers to ‘toggle’ around screens and interact with content in different ways in one that is valuable and monetisable
  • Telcos have the data and ability to provide the augmented reality experience

Key questions to debate

  • What is the business model for augmented reality and complimentary apps? How does money flow between content owner, app developer, distributor and telco?
  • How can content owners engage more effectively with the app developer community to develop apps that enhance their content experience?
  • How do telcos build/enable augmented reality services and solutions?
  • Should telcos look to use apps and augmented reality to differentiate their own entertainment services or offer them as upstream services to other content owners?

Presenters and Panellists
Short stimulus presentations, followed by discussion between, and feedback from, participants using our ‘Mindshare’ interactive technology, followed by a panel discussion, finishing with some voting on ‘next steps’.

Stimulus Presenters and Panellists include

  • Roberto Saracco, Director, Future Centre, Telecom Italia
  • Christopher Burman, Designer & Software Developer, Pachube, Connected Environments
  • Simon Torrance, CEO, Telco 2.0 Initiative

Telco 2.0 background reading:

 

1800 Close