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KEEPING RSP’S RELEVANT

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“Turnkey”“Fee for service”

“Minutes & megs”

THE AGGREGATOR SPECTRUM

Supply Supply & Enable

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AGGREGATOR MARKET SOLUTIONS

Small end Up to $2m Annual Revenue

Turnkey

Buy

Mid size$2m - $10m Annual Revenue

Supply only

Build

Larger end $10m+

Turnkey or Enablement

Buy and/or build

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THE RISE OF THE “NON-TRADITIONALS”

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THE BIG BRANDS ARE GOING TELCO

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MAXIMISE CUSTOMER STICKINESS

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THE TESCO STORY

Biggest MVNO in the UK

1 million customers

15 new phone shops in 2013

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ELEMENTS OF A TELCO AGGREGATOR

AggregatorDoes not compete with its customers

Scale – Ability to Invest & Grow

Ownership / control of core network

assets

Breadth of products / services – a “one-

stop-shop”Customer focused –trusted, open, trans

parent

Experience & expertise – proven

track record

Completely “white label”

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THE MARKET IS CHANGING

Ubiquitous high-speed

broadband

Decline of traditional telephony

The rise of “the cloud”

New business models

emerging

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LOTS OF “STUFF” ABOUT THIS EVOLUTION

Key Points

Traditional voice and data usage

patterns are rapidly changing

Old business models are coming under

increasing pressure

Some telco’s understand this rapidly

changing scenario and selling energy,

cloud computing or even advertising

“Telco’s should consider taking steps to incrementally

change their business models, while striving to adopt

radical approaches in select areas, and challenge

traditionally accepted norms of where a telco fits into

the larger ecosystem”.

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AND MORE SPECIFICALLY ABOUT CLOUD

Key Points

Telco’s entering the cloud space is

starting to pay off

Telstra, Optus and iiNet gearing up for

demand

Telstra now has 20,000 customers (up

from 16,000 in Feb). Cloud revenues

up 25% for the half year

iiNet offers IaaS to application hosting

All investing in data centres

iiNet starting to offer cloud based

applications such as MS Exchange and

MS Lync

A focus for Optus

Sydney Morning Herald, Tuesday May 21, 2013 – Stuart Corner

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I DON’T THINK SO

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CLOUD ENABLED TELCO OPPORTUNITIES

“Telco’s that can create a compelling end-to-end cloud

proposition that integrates their network management

capabilities, supported by an agile and service-oriented

operating model, could carve out a differentiated and

attractive offering to small and midsize businesses (SMBs)

and enterprises.”

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THE ECO-SYSTEM

Cloud Enabled Telco Opportunities – PWC Whitepaper

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KEY TAKE OUT POINTS

Telco’s already either have a data centre or have presence

in a datacentre so moving into cloud is a natural

progression

The level of Broadband penetration will determine the fate

of Cloud computing in a given market

The rise of Cloud computing is end customer driven

Aggregators have to evolve to enable RSP’s to easily and

simply enter the Cloud space as smaller RSP’s don’t

typically have the capital or expertise.

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EVOLUTION- DON’T YOU LOVE IT

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A PARTING CHALLENGE FOR AGGREGATORS

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“Wise business people concluded that it was best not to

hurry to switch from making 70 cents on the dollar on film

to maybe five cents at most in digital,” – Larry Matteson, Former Kodak Executive.

Kodak management did not display

the agility of its rivals.

Rosabeth Moss Kantor of Harvard Business School who

advised the firm suggests executives,

“suffered from a mentality of perfect products, rather

than the high-tech mindset of make it, launch it, fix it“(The Economist 2012, The last Kodak moment?, Retrieved from, http://www.economist.com/node/21542796)

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