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THE WAY PEOPLE
COMMUNICATE IS CHANGING
People have moved from voice to data-centric forms of communication like VOIP, IM, social
networking, and file sharing.
MonthlyPetabytes
1000
2000
3000
4000
5000
6000
7000
8000
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
Voice
Data : Mobile Phones
Data : Mobile PCs/Tablets
Mobile phones
get popular
Skype is
launched
Data traffic
overtakes voice
Smart phones
take off with
iPhone
iPad is launched
Mobile Web
(Social
networking, new
forms of sharing,
information
access)
Video
Mobile M2M (VOIP,
IM etc.)
File
Sharing
Mobile Data Traffic 2012-17
But communication has truly diversified. VOIP is
only a small part of the data explosion
Communication remains an important part of the
data explosion
Top Applications for data
consumption
Smartphones Tablets
Video/
Communications
Information
Web
Browsing
Social
Networking
Music/Audio
Streaming
Other
ErricsonTraffic&MarketReport2012
Cisco Data Meter, September–December 2012
Cisco VNI Mobile Forecast 2013
SMS, the traditional text based messaging protocol
is being replaced by new forms
19.1B OTT
messages/day
17.6B SMS
messages/day
41B OTT
messages/day
19.5 B SMS
messages/day
OTT vendors: WhatsApp, Skype,
Facebook etc.
2012 2013 Informa Telecoms & Media 2013
ATTENTION!
SERVICE PROVIDERS
Why should you care? What is the way forward?
Skype makes 3rd of
all international
calls
WHY SHOULD CARRIERS CARE?
Carrier data revenues haven’t kept up with data growth
As mobile data surges, carrier revenues
from data are growing
As the world enters the data era, the strategic dynamics of the market are changing.
30,000
40,000
50,000
60,000
70,000
80,000
90,000
08 09 10 11 12 13E
THE GOOD NEWS THE BAD NEWS
Voice revenues are declining faster than
data revenue growth
DataRevenuesUSDM
$45
$10
08 09 10 11 12 1307 14
ChetanSharmaConsulting2013
(minus)
ARPU
Data ARPU gained in
Q4 2012
Voice ARPU lost in
Q4 2012
Carriers are conceding ground to OTT (Over the
top) and VAS (value added services) providers
$55
Voice
Data
Overall APRU
Traffic
Revenues
Voice era Data era
85% of the traffic in the 4
major mobile networks is
pure data but it only
accounted for 39% of all
mobile data revenues.
Chetan Sharma Q4 2011
Nokia-Siemens;IBMInstitutefor
BusinessValueanalysis
Users
Carrier
Users
Carrier
48¢ 64¢
Access
Voice
SMS Access
Voice
SMS
Marketsandmarkets.com,Gartner
Carriers have a smaller share of
a growing revenue pie
Carriers
yesterday
Carriers today
Carriers face lower switching barriers and increased
churn as they no longer control their customer’s data
Back
Carrier
OTT Application
Customer’s Data
Apple, Microsoft, Google,
Skype etc.
OTT Application
Customer’s Data
SWITCHINGCOST
LOYALTY
Psst..i’ll give you
a cheaper deal
Customers follow
their data
© 2013
WHAT IS THE WAY FORWARD?
As the boundaries between voice, messaging, and platforms get blurred, carriers need a
fundamental shift in strategy
Prepare for the 4th revenue
wave
Chetan Sharma Consulting 2013
Netrevenue
Subscriber penetration
0-25% 25-70% 70-90% 90+%
US
The 2st Revenue Wave –
Messaging is no longer sufficient
2010
2011
2012
2016
8.7 B
54 B
23 B
13.9 B
SMS Revenues Lost (Billion)
Ovum2012
The 3st Revenue Wave – Access
will not last much longer
Netrevenue
Subscriber smartphone penetration
0-25% 25-70% 70-90% 90+%
US
Enter the 4th Revenue Wave – OTT Value
Added Services
Voice
Access
Messaging
Enterprise
Cloud
Consumer
Cloud
Mobile
Advertising
Transpo-
rtation
Hospitality
Wellness
_ _
Today Tomorrow
ARPU
RevenueinBillions
Service/Application areas
Operator’sdilemma:The4th
waveChetanSharma2012
“It is becoming clear
that the (carrier’s)
long-term value will
be in the portfolio of
value -added
services (VAS).”
The 1st Revenue Wave – Voice
is no longer sufficient
HyperOffice lets you launch key OTT services under
your own brand & keep your customer’s data
HyperOffice is an award
winning leader in cloud
communication and
collaboration since 2002
Benefits
Leverage HyperOffice technology
to enter key OTT markets
Cloud based enterprise UCC
Social VOIP/Web Conferencing
Consumer Cloud
Who?
White labeling: Build your own
brand
Deploy in the HyperOffice cloud or
your own cloud
Best in market margins
1.240.428.1700 x 107
Back
Contact us

More Related Content

Service Providers and the Cloud OTT Surge

  • 1. THE WAY PEOPLE COMMUNICATE IS CHANGING People have moved from voice to data-centric forms of communication like VOIP, IM, social networking, and file sharing. MonthlyPetabytes 1000 2000 3000 4000 5000 6000 7000 8000 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Voice Data : Mobile Phones Data : Mobile PCs/Tablets Mobile phones get popular Skype is launched Data traffic overtakes voice Smart phones take off with iPhone iPad is launched Mobile Web (Social networking, new forms of sharing, information access) Video Mobile M2M (VOIP, IM etc.) File Sharing Mobile Data Traffic 2012-17 But communication has truly diversified. VOIP is only a small part of the data explosion Communication remains an important part of the data explosion Top Applications for data consumption Smartphones Tablets Video/ Communications Information Web Browsing Social Networking Music/Audio Streaming Other ErricsonTraffic&MarketReport2012 Cisco Data Meter, September–December 2012 Cisco VNI Mobile Forecast 2013 SMS, the traditional text based messaging protocol is being replaced by new forms 19.1B OTT messages/day 17.6B SMS messages/day 41B OTT messages/day 19.5 B SMS messages/day OTT vendors: WhatsApp, Skype, Facebook etc. 2012 2013 Informa Telecoms & Media 2013 ATTENTION! SERVICE PROVIDERS Why should you care? What is the way forward? Skype makes 3rd of all international calls
  • 2. WHY SHOULD CARRIERS CARE? Carrier data revenues haven’t kept up with data growth As mobile data surges, carrier revenues from data are growing As the world enters the data era, the strategic dynamics of the market are changing. 30,000 40,000 50,000 60,000 70,000 80,000 90,000 08 09 10 11 12 13E THE GOOD NEWS THE BAD NEWS Voice revenues are declining faster than data revenue growth DataRevenuesUSDM $45 $10 08 09 10 11 12 1307 14 ChetanSharmaConsulting2013 (minus) ARPU Data ARPU gained in Q4 2012 Voice ARPU lost in Q4 2012 Carriers are conceding ground to OTT (Over the top) and VAS (value added services) providers $55 Voice Data Overall APRU Traffic Revenues Voice era Data era 85% of the traffic in the 4 major mobile networks is pure data but it only accounted for 39% of all mobile data revenues. Chetan Sharma Q4 2011 Nokia-Siemens;IBMInstitutefor BusinessValueanalysis Users Carrier Users Carrier 48¢ 64¢ Access Voice SMS Access Voice SMS Marketsandmarkets.com,Gartner Carriers have a smaller share of a growing revenue pie Carriers yesterday Carriers today Carriers face lower switching barriers and increased churn as they no longer control their customer’s data Back Carrier OTT Application Customer’s Data Apple, Microsoft, Google, Skype etc. OTT Application Customer’s Data SWITCHINGCOST LOYALTY Psst..i’ll give you a cheaper deal Customers follow their data
  • 3. © 2013 WHAT IS THE WAY FORWARD? As the boundaries between voice, messaging, and platforms get blurred, carriers need a fundamental shift in strategy Prepare for the 4th revenue wave Chetan Sharma Consulting 2013 Netrevenue Subscriber penetration 0-25% 25-70% 70-90% 90+% US The 2st Revenue Wave – Messaging is no longer sufficient 2010 2011 2012 2016 8.7 B 54 B 23 B 13.9 B SMS Revenues Lost (Billion) Ovum2012 The 3st Revenue Wave – Access will not last much longer Netrevenue Subscriber smartphone penetration 0-25% 25-70% 70-90% 90+% US Enter the 4th Revenue Wave – OTT Value Added Services Voice Access Messaging Enterprise Cloud Consumer Cloud Mobile Advertising Transpo- rtation Hospitality Wellness _ _ Today Tomorrow ARPU RevenueinBillions Service/Application areas Operator’sdilemma:The4th waveChetanSharma2012 “It is becoming clear that the (carrier’s) long-term value will be in the portfolio of value -added services (VAS).” The 1st Revenue Wave – Voice is no longer sufficient HyperOffice lets you launch key OTT services under your own brand & keep your customer’s data HyperOffice is an award winning leader in cloud communication and collaboration since 2002 Benefits Leverage HyperOffice technology to enter key OTT markets Cloud based enterprise UCC Social VOIP/Web Conferencing Consumer Cloud Who? White labeling: Build your own brand Deploy in the HyperOffice cloud or your own cloud Best in market margins 1.240.428.1700 x 107 Back Contact us