deliver what’s next

Myths, Misunderstandings

and BS

What’s Next: Accelerating Services

Innovation

Alan Quayle,

www.alanquayle.com/blog

deliver what’s next

Outline

• LTE ≠ 4G

• Fast ISP ≠ ISP with sustainably higher revenue

• Current pricing model ≠ sustainable model

• Interactive Advertising ≠ Ad insertion technology

• Cloud ≠ Hosting

• OK, so what are we supposed to do then?

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LTE ≠ 4G

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Fast ISP ≠ ISP with sustainably higher revenue

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Current pricing model ≠ sustainable model

(yet)

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2008 Alan Quayle

Customer’s Critical Math (US Focused) • Cost of premium Cable per year ($137.5) $1650

• Cost of premium Satellite $1460

• Cost to Replace Cable

– Digital antenna (local free to air) Free-$50

– Hulu+ $120

– Joost, YouTube, Fox, other websites Free

– Netflix on Demand $120

– Cost of box (TiVo, PS3, Wii, Xbox, DVR) Free-$80

– Amazon VoD $778

• (one show per week night in HD, 2:99)

• Total $1018-1148

• Cost of laziness $632-312

In the US people are already starting to migrate to interactive consumption: generally tech-savvy early adopters, especially where Sports Package is not a decision criteria.

GoogleTV and AppleTV are bringing this awareness to the mass market.

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Interactive Advertising ≠ Ad insertion technology

Interactive Advertising

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http://www.intac.net/a-comparison-of-dedicated-servers-by-company_2010-04-13/

Cloud ≠ Hosting

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deliver what’s next

Get the User Experience Right on the EPG

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A Fundamental Difference in Business Models

Customer

Provider

Means to

an End

$

Hardware & Services

$

Inventory

Advertiser

$

Services

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2008 Alan Quayle

Why Aren’t Your Customers Already

Using These Applications?

deliver what’s next

Summing it up

• Get the Customer Experience right – Store front, recommendations, community, search,

integrated across phone and tablet/PC

• Use third parties to innovate on non-core services – They care about their services much more than you

ever could

– However, focus on the services / apps that are at the core of your business (EPG and communications) – there’s only a couple of hundred

• You must take control of your destiny!

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2008 Alan Quayle

Service Provider

Utility Connectivity

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