2010-10-29 MeMo workshop11

Mobile Services: Operators role now and in the future 2010-10-29Roger BengtssonTeliaSonera Mobility Services

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Agenda

1.

Short about TeliaSonera

2. Historical perspective

3. Third mobile revolution

4. TeliaSonera’s role and actions

5. Summary

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TeliaSonera – in brief

Facts• Result of a merger of Telia and

Sonera in December 2002• Head office in Stockholm, Sweden• 2009 net sales SEK 109 billion• Approx. 29,700 employees• Largest shareholders - Swedish

state (37.3%) and Finnish state (13.7%)

Footprint• More than 460 million population• Total number of subscriptions 156.6 million

– of which ~53.2 million in the majority-owned operations– of which ~103.4 in the associated companies

3 Business Areas• Mobility Services• Broadband Services• Eurasia

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Mobility Services – Nordics and Baltics (+Spain) – challenge to meet all nationalities & cultures with single services

• Fairly small nations, multiple languages, 17 TeliaSonera brands

• Organised to exploit synergies

Country Market pos.*

Brand Logotype Subscr. mobile

Sweden 1 Telia, Halebop 5,805,000

Finland 2 Sonera, TeleFinland 3,163,000

Norway 2 NetCom, Chess 1,689,000

Denmark 3 Telia, Call me, dlg 1,471,000

Estonia 1 EMT, Diil 747,000

Latvia 1 LMT, OKarte, Amigo 1,107,000

Lithuania 1 Omnitel, Ezys 2,001,000

Spain 4 Yoigo 2,108,000

* TeliaSonera estimatesSubscriptions, Q3, 2010

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TeliaSonera – Mission and Vision

• Mission – to provide network access and telecommunication services

– TeliaSonera’s mission is to provide network access and telecommunication services that help people and companies communicate in an easy, efficient and environmentally friendly way.

– We create value by focusing on delivering a world-class customer experience, securing quality in our networks and achieving a best-in-class cost structure.

– TeliaSonera is an international group with a global strategy, but wherever we operate we act as a local company.

• Vision – a world-class service company and an industry leader– TeliaSonera’s vision is to be a world-class service company, recognized as an

industry leader. We are proud of being pioneers of the telecom industry, a position we have gained by being innovative, reliable and customer friendly.

– We act in a responsible way, based on a firm set of values and business principles.– Our services form a major part of people’s daily lives – for business, education and

pleasure. – Thereby, we contribute to a world with better opportunities.

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The first mobile revolution

1

Mobile Voice9 of 10 people

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Mobile service development – Historical view from an operators perspective

• Up to about 1998– Mobile voice the only major service– Operator in-house development with massive R&D resources– Result: No commercial success for non-voice mobile services. Lots of good ideas

but complete lack of technical, ”internal”, user and business readiness

• 1998 – 2001– SMS starting to take off– IT boom with “no limits”. Companies with unrealistic plans and expectations– People left operators to start own business– Result: Limited commercial success. Lots of good ideas but still lack of technical,

user and business readiness

• 2001 – 2007– Operator service portals and ring tones take off – Downsizing and outsourcing of operator R&D resources– Result: Some commercial success. Realistic ideas but still lack of technical and

business readiness

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The second mobile revolution

2Mobile data explosionMobile behaviourNew actors (Apple, Google, …)

1

Mobile Voice9 of 10 people

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2007 something happened…

• iPhone showed the way!– Appealing User Interface– Applications. Working model for developers incl. developer community, developer

tools, store, revenue share. Based on open innovation, web technologies and open source (but a “vertical” ecosystem)

– Hardware “good enough”. Touch screen, screen size and processing power. The phone as a computer

• Android announced…– Similar but “open” ecosystem. Possibility for anyone (incl. operators) to take control of

the phone, e.g. branding, signature apps, billing, etc.

• Result: Mobile services finally happened! Now everyone is trying to copy and evolve…

• Other things to mention– Business model experimentation escalating – faster and more complex world– TeliaSonera offered 2006/08-2009 through Innovation World a meeting place where

mobile enthusiasts and service providers could try, review and develop new exciting mobile services

– Google “Mobile first…”

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We are now entering the third mobile revolution – ” Everywhere, Everybody & Everything”

2Mobile data explosionMobile behaviourNew actors (Apple, Google, …)

3Everywhere 100 Mbps IP Cloud (4G)Everybody empowers open innovation paradigmEverything is connected – explosion of connected devicesConvergence enabling new service experiences

201520111

Mobile Voice9 of 10 people

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Downstream business TS services and TS partner

Consumers bundled services Businesses

3rd party service enabling based on “Network asset” APIs

Contextual, communication, user information, identification & payment, UICC management

TS “core”

”Internet cloud”

TeliaSonera’s role in the third mobile revolution – Access and Communication centric two sided business models

Upstream business enabler services for other player’s businessConsumer Services

together with partnersBusiness Services

together with partners

Communication ServicesIntegrated communication experience (voice, messaging, video, social networks, …) Rich/Unified Communication, Wireless Office, Cloud services. M2M, Signature apps

Smart bit pipe – e2e connectivity servicesConnectivity & multi access management, differentiated e2e QoS, IPX, roaming

Smart bit pipe – access services Mobile data & broadband access (policy management, 4G ->)

Customer Experience supporting enablers & servicesAppealing Solutions, Service exposure and User Experience

Sales (digital, own/partner), brands, customer care, com/marketing, financial, equipment

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TeliaSonera’s actions in the third mobile revolution• Innovative

– Do things in smart ways on all levels. Inspiring and relevant offers. Business model innovation. Be worth to be selected!

• World-class customer experience– World-class service company. Excellent services, very few user problems, problems

solved quickly– Customer intimacy, e.g. interact and learn in social networks

• Services– Use the power of open and global innovation– Establish thought leadership and sharp service portfolio in key areas– Use partnerships to differentiate and secure a flexible service portfolio. Some services

via TeliaSonera’s channels (e.g. Spotify) and some by partners (e.g. m2m.telia.se)

• Networks and systems– Quality in our networks and systems– Best-in-class cost structure– Technological leadership: At the forefront of introducing selected new technologies

• Upstream business– Enablers/APIs from the telecom “factory” improving other player’s business

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Summary

• Mobile services now happening…– Mobile devices have good performance – Service ideas can be realised quite easily. Proof: millions of apps– Main focus on consumer entertainment services

• …but more to come. We have only seen the beginning (third mobile revolution starting)

– Cloud services accessible from everywhere. 4G – access even more important. Next generation OS and web technologies. Video. M2M/M2H/H2M. Vertical sectors (e.g. smart grid, healthcare), Unified/Rich Communication. Collaborate from anywhere. Business systems mobilised

• Operator perspective– Attractive mobile services needed to differentiate the offer. Partnerships– Most services just using operator connection. Some services enabled or enhanced

by operator. Few services produced or offered by operator– APIs and enablers– Access even more important. Must work!

• Mobile service business models constantly evolving