Voice & Messaging 2.0 Market Study Survey Results summary 2008.pdf · Project Management Support...
Transcript of Voice & Messaging 2.0 Market Study Survey Results summary 2008.pdf · Project Management Support...
Voice & Messaging 2.0 Market Study – Survey Results
Respondent Summary from STL Partners‟ On-line SurveyFull report available separately
Martin Geddes
Chief Analyst
February 2008
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Contents
Background & Summary Results
About STL
About the survey – respondent breakdown
Summary survey results
Confidence in knowledge of customer needs
Revenue scenarios: will this industry grow?
Responding to low-cost and enhanced functionality competition
Identifying growth areas
User feature needs in telephony
FMC user needs
Voice & Messaging 2.0 Market Study
Contact details
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Background & Summary Results
Background
Thank you for taking part in the Telco 2.0™ December 2007 Voice & Messaging survey
This document contains the summary results which represent an extract of the full survey results and analysisavailable in the upcoming Telco 2.0™ Consumer Voice & Messaging 2.0 market study
(http://stlpartners.com/telco2_research-analysis_voice-messaging.php).
Summary Results
There is a strong consensus that telcos have a weak understanding of underlying user needs in this space, despite it being their core business – suggesting a need to partner.
A high level of optimism about the future, given current revenue slow-down and stagnation as well as attack from outside (e.g. Skype, internet portal players, arbitrageurs).
This also fits with the strong endorsement of open APIs into those core operator competences (network, identity, billing, care, retail, etc.).
Aggressive responses were favoured to product innovation by Internet competitors. Business as usual is not a good strategy!
Our companion report on future broadband business models (see final page for details) also suggested that over the next ten years there will be a major shift toward non-traditional voice services, both from private voice-enabled applications like Skype or Facebook, as well as voice embedded into games, satnav systems, e-commerce sites, etc. For ideas on what kinds of product and business strategies to follow, please see the full report.
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Consulting Research Brainstorms
www.telco2.net
About STL: Driving Innovation & Growth in Telco, Media & Technology
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New Research Reports
Voice &
Messaging 2.0
Broadband
Business ModelsAdvertising
(3rd Edition)
www.telco2.netTo order contact [email protected]
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The 157 respondents to the on-line survey represented a cross-section of the communications. industry
Operator respondents included (among others):
Commercial (Marketing,
Strategy, etc.)62%
Other9%
Technical (Operations,
R&D, Technology,
IT, etc.)29%
Job FunctionISP3%
Operator - Fixed or Fixed-Mobile
Converged20%
Operator - Mobile9%
Other (e.g. consultant)
22%
Telco industry disrupter (i.e.
start-up)9%
Vendor -Handsets and
Consumer Electronics
1%
Vendor - IT (including Systems
Integrators)16%
Vendor - Network Equipment Provider
20%
Organisation Type
East Europe1%
Japan, South Korea,
Australia, New Zealand
5%
Latin America3%
Middle East & Africa
5%
North America21%
Other Asia Pacific10%
West Europe55%
Location
AT&T
BT
Cablecom
Carphone
Warehouse
CBN
Challenger Mobile
Easynet
EriTel
ESKADENIA
FT/Orange
Gamma Telecom
HTK
Indosat
KPN
Nortel
Northwestel
Optus
Orascom Telecom
Holding
SaskTel
Smile
Communications
STM
Swisscom
Telecom NZ
Tele2
Telefonica
teleSAVE
Teligent
TestQuest
Tiscali
TKK
TNL PCS SA
Vodacom
Vonage
WestLink
Communications
XciTel
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Very little confidence that the industry knows what customers really want, despite being the core revenue drivers
How well do we as an industry understand what additional needs users have for voice and
messaging products, over and above what they have today?
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Very well Quite well Not sure Not very well Hardly at all
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Strong optimism about the future, despite concerns of attack from Internet players and revenue stagnation from existing competition
• BOOM: Revenues are growing fast (>5% year), driven by a new generation of services and business models (e.g. sponsorship, e-commerce, adverts, interactive services)
• GROWTH: Revenues are growing slowly (<5% per year), driven by increased penetration, usage and service innovations such as SMS short codes.
• STABILITY: Revenues are flat or falling slowly; any loss is roughly offset by substitution of IP connectivity charges (for VoIP and IM) and revenue from advertising integrated into the voice and messaging experience.
• DECLINE: Revenues are falling slowly (<5% per year), and other revenue streams fall significantly short of replacing these revenue sources
• CRISIS: Revenues are falling fast (5-15% per year) due to internal and external competition together with unfavourable regulatory changes.
• CATASTROPHE: Revenues are in freefall (>15% decline per year), and there is mass conversion to 3rd party and IP services enabled by broadband local and wide area networks.
What will happen to total fixed+mobile voice and messaging service provider revenues three years
from now (beginning of 2011) in mature (Europe + N American) markets?
0%
5%
10%
15%
20%
25%
30%
35%
BOOM GROWTH STABILITY DECLINE CRISIS CATASTROPHE
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Telcos should compete against low-cost entrants by packaging, segmenting and supporting the individual needs of users
• PRODUCT DIFFERENTIATION:
Move upmarket, innovate rapidly in
services, focus on advanced features
and content.
• CUSTOMER INTIMACY: Focus on
the sales, service and customer care
experience; invest in retail, CRM and
loyalty/retention programs; increase
marketing budget.
• DIVERSIFICATION: Reduce
exposure to voice and messaging
revenues by diversifying into other
markets, such as enterprise services,
mobile payments, or financial
services.
• EMULATION: Copy the technology
model of new entrants, rapidly reduce
headcount, match prices, hope the
other guy's balance sheet turns red
first.
How effective are the following long-term strategies for a typical incumbent fixed or fixed-
mobile converged operator responding to the arrival of low-cost competition?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
PRODUCT DIFFERENTIATION
CUSTOMER INTIMACY DIVERSIFICATION EMULATION
Worst
3rd
2nd
Best
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Respondents endorsed a vigorous response to against VoIP and collaborative/social applications – but just where is the industry answer to Skype?
• RETREAT: Move to a pure pipe model of selling service. Use Internet brands as primary retail channel partners ('Google phone' etc.), and focus on underlying infrastructure and service delivery.
• CO-OPERATION: Partner in sales and marketing, leave the advanced messaging, media and search/advertising services to the Internet partner, and focus on legacy voice/messaging services, billing and customer service.
• EVADE: Build service around unique assets like home hubs and fixed-mobile converged products. Avoid high-priced flat-rate Internet access and sell value-based bundles of services with inclusive connectivity charges.
• FIGHT: Rapidly improve service capabilities to include presence and multimedia features, offer a softphone/IM service, expand interoperability efforts with other carriers, lower prices and/or offer large/unlimited tariffs.
• CO-OPETITION: Offer a limited partnership, and co-operate only where capabilities and services don't overlap (e.g. access to pre-paid payments for premium Internet services). In-source selected products like mobile photo sharing to fill service portfolio holes. Revenue share search and advertising.
In competing with Internet voice and messaging services with rich functionality (e.g. IM vs.
SMS, Skype vs fixed line), rank each of the following tactics:
TOP
STRATEGY
BOTTOM
STRATEGY
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CO-OPETITION FIGHT EVADE CO-OPERATION RETREAT
Worst
4th
3rd
2nd
Best
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Telcos need to open up their voice and messaging platforms, and also partner with the right lifestyle brands for each segment
APIs: 'By opening up the voice, voicemail and messaging
platform with APIs to enable 3rd party services and extensions,
operators can generate enough new revenues from partners to
significantly offset price competition in core voice and messaging
services.'
LIFESTYLE: 'Consumers of communications services will pay
more for aesthetic style and lifestyle branding than specfic
features or service benefits.'
COMMERCE: 'There are more new revenue opportunities in
connecting users to merchants ('Consumer to Business'), than
users to users directly or within social networking ('Consumer to
Consumer').' (Examples: short codes, premium rate and toll-free
services)
REAL-TIME SERVICES: 'At least one new real-time service
offered by operators (other than mobile IM) will significantly
increase industry revenues by achieving mass-market consumer
adoption (e.g. push-to-talk, push-to-view, voice messaging).'
PRIVACY FEATURES: 'A large number of users are willing to
pay for privacy features, such as multiple or disposable numbers
or temporary identities.'
CALLING FEATURES: 'A large number of users are willing to
pay for new advanced calling features (e.g. intelligent call routing
based on time of day, calendar, recent activity with caller).„
NO MORE INTEROPERABLE SERVICES: 'Building new
interoperable cross-carrier communications services will never
again be as profitable as it was with mobile voice, SMS and
MMS. The industry should cease or scale back such efforts.'
Where are there opportunities to raise additional revenue
from voice and messaging services?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
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Customers are tired of “voicemail tag” and poor UIs – help them get through to the right person at the right time, and make it easy to use
% Of respondents rating unmet needs of users in the following areas of voice telephony
1. Presence data on the called party (e.g. on call, device on/off, location, calendar data)
2. Increased network coverage and reliability, indoors and outdoors
3. Improved directory services to contact people you know
4. Better comprehension of who is talking and what they are saying
5. Easier purchase and provisioning of voice service
6. Additional multimedia features, to share text, URLs, photos and videos as part of a
conversation
7. Improved control over availability for inbound calls, and better call screening.
8. Better security against snooping and eavesdropping
9. More privacy features to enable anonymity or partial disclosure of identity (e.g.
disposable numbers).
10. Improved ease of use of the voice, conferencing and voicemail functions.
11. The ability to remit payment to the other party as a standard function of the user
interface
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Presence data
Network coverage
Directory services
Audio quality
Easier provisioning
Multimedia features
Screening control
Security
Privacy features
Ease of use
Payment features
1. CRITICAL NEEDS REMAIN
2
3
4
5. NO NEED FOR IMPROVEMENT
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FMC user needs are not synonymous with dual-mode handsets
Rate each of the following additional FMC-related customer needs:
1. Intelligent call routing between home, work and
mobile domains
2. A single outbound number presented from any
device the user places calls from
3. More reliable emergency calling from their
mobile devices
4. Common address book across fixed and
mobile phones
5. Advanced multimedia features only possible on
an end-to-end IP network (e.g. video
messaging, picture sharing)
6. Better in-building mobile phone coverage at
home and in the office that at least matches
traditional cordless phones
7. Ability to send SMS from fixed as well as
mobile devices
8. Personalised ringing either by individualised
ring tones (fixed phone), or separate personal
devices (mobile phones)
9. A single voicemail inbox for all voice messages
from all sources (mobile, work, home, other)
USER FMC NEEDS:
MO
RE
NE
ED
LE
SS
NE
ED
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Intelligent call routing
Single outbound number
Reliable emergency calling
Common address book
Multimedia features
In-building coverage
SMS from fixed phones
Personalised ringing
Single voicemail
Critical (Unmet) User Need
Important Need
Some Need
Slight Need
No User Need at All
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Consumer Voice & Messaging 2.0 Market Study: proposed table of contents
Background and key issues
Key macro trends
User adoption trends for VoIP, IM and real-time services
Internet user growth trends: broadband, portal IM and VoIP
The changing nature of voice and messaging
The end of pricing plans as the focus of competition
The inversion of the telephony business model
No nines: understanding the user‟s goals -- gossip, information and presence
Balance of power: changes in the value chain
Short-term issues to address: optimising and extending today‟s business
The changing competitive landscape
Disruption from new low-cost operators: Telio, Iliad, Tesco
Disruptors from the edge: PhoneGnome , Truphone
Arbitrage players
Near-term opportunities
Optimising the current business: up-sell, cross-sell of services
Working with private voice applications – IM services, Skype, SocNets
IM meets SMS and MMS: issues and strategies
Medium-term issues to address: developing new products and services
A framework for service and product innovation
Modelling user needs, and how the existing services meet them
The “Voice 2.0” movement: what is it, and why does it matter?
Featured innovators: iotum , Grand Central , En Thinnai
Near-term opportunities
Voice messaging
“Show and tell” communicator
FMC: what do the users *really* want?
Long-term issues to address: re-thinking the business model and value chain
Contextual voice: the Web goes real-time
V-commerce: the road beyond click-to-call
Telephony in new contexts – extending the reach of telephony
Re-thinking the call model – less interruption, more conversation
From telephony to telepresence: a journey worth taking?
Case studies:
From walled garden to open garden: 3 UK and Skype
Practical pricing and product strategies: Sprint PCS Vision
Product innovation is possible: Verizon iobi
Survey results & market timing
Technology changes
Market changes
Market-by-market Telco 2.0 voice & messaging strategy plan
Fixed operators
Mobile operators
Fixed-mobile converged operators
Access-independent service providers
Equipment and software vendors
Action steps
Product planning and management
Sales and marketing; channel
Network and product development
Partner and business development
For the full Consumer Voice & Messaging 2.0 Market Study go to:
www.stlpartners.com/telco2_research-analysis_voice-messaging.php
NOTE: Subject to change
Final report includes full directory of 80+ “Voice 2.0” vendors, plus full survey results and analysis
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Thank You
If you would like to comment on the results of this survey or would like to explore how STL Partners could help your company be more successful in a Telco 2.0™ world, please contact Martin Geddes at the details below:
Tel: +44 (0)7957 499219
Skype ID: eddes
Read our blog for free insight and analysis: www.telco2.net/blog/
Click below to see details of our reports:
Telco 2.0™ market study: How to Make Money in an IP-based World (www.stlpartners.com/telco2_report.php)
Telco 2.0™ Strategy Reports:
Voice & Messaging 2.0 (www.stlpartners.com/telco2_research-analysis_voice-messaging.php)
Advertising-Funded Services (www.stlpartners.com/telco2_research-analysis_ad-funded.php)
Broadband Business Models 2.0 (www.stlpartners.com/telco2_broadband-business-models/index.php)
2-sided Telecoms Market Opportunity (www.stlpartners.com/telco2_2-sided-market/index.php)
For more details about Telco 2.0™ and STL Partners, please visit our website www.stlpartners.com