Telco & VAS : Évolution of A RelationshipTelco & VAS : Évolution of A Relationship

By

Prashant Singh Email: pacificleo-AT-Gmail-dot-comwww.knowprashant.blogspot.com

Who AM I ?

Program Manager @ Monsoon Multimedia , Internet & Mobile Enthusiast, Blogger ,

Coordinator Mobile Monday Delhi, Coordinator Of iFix Delhi , aspiring Entrepreneur .......

What this Discussion is about ??

An attempt to understand the relationship between Telco & Mobile VAS Palyers

Story behind this talk….

It started with a Phone call .. TO A Mobile VAS Provider

Who asked me if I am Married ?

Evolution in Role of Telecom Operator

Mobile Voice Carrier

Falling Profit Margins in Voice.

Heavy Investment in 3G infrastructure .

Mobile Data & m-Commerce

Existing billing Relationship with subscriber

Transformation of Telecom Operator

Mobile Voice Carrier

Mobile Voice

Carrier

Content Provider

Mobile Portal

Mobile ISP

Location Broker

Transaction Provider

Challenges of New Roles

Mobile

ISP

Offering Internet Access Subscription ,traffic & Access Charges

Content Provider

Offering Information ,Content, Service

Access Fee, Advertisement

Mobile

Portal

One Stop shop for Mobile Internet Subscription, advertisement, Revenue sharing

Location Broker

Leveraging Location information Location Base Services

Billing Provider

Providing billing infrastructure Revenue split with third party

Competitive Landscape

Voice MVNO, Number Portability 11 New Applicant for spectrum

Mobile

ISP

Traditional ISP via WiFi, WiMax ,Offline Browsing

Falling cost of WiFi Enabled Handset

[ INR 9K], Availability of Free/Paid Hot Spot

Content Provider

Traditional Publishers, Side loading, Bluetooth

MyToday ,Twitter,

Mobile

Portal

Internet Portals, Handset search Engine Alliance , Content Aggregators, palm.net

Outside of imode no one has done it successfully

Location Broker

GPS, Third Party Location Brokers , Alternate Approach

Falling Cost of GPS Enable Handset, Google Map Approach ,Herecast, Routeguru,Mapunity ,Loopt

Billing Provider

Bank, Credit card, Utility Billing companies trying to circumvent Telco's stronghold on billing

Mcheck, itzCash, Google CheckOut, PayPal, EasyBill

Moral of the Story : Telcos are under Attack on all fronts

Business Relation ship between Telco & VAS is undergoing a paradigm shift .

Network Operator Centric Business Model

Mobile Voice Carrier

Content Provider

Service /Content Aggregator

Location Broker

Billing/ Payment Provider

End User

WASP

Service Aggregator Centric Business Model

Service /Content Provider

Billing PaymentProvider

Content Provider

Location Broker

WASP

Network Operator

End User

Service Provider Centric Business Model

Service /Content Publisher

Billing PaymentProvider

End User

Network Operator

Location Broker

This model requires Strong Regulatory body , some [Not All] market in Europe are working on this model.

What Might Work and Why

Service Aggregator Centric Model like iMode.

Verizon is opening up its network.

Nokia is re positioning it self as a Service company by launching Ovi & MOSH

These Aggregators can be owned by Telco too .As long as they are functionally independent .

WHY ?

Similarity with Japanese Market.{ Public Transport ,Family System}

Telco thrives on Mass Market. Value in VAS is Personal value . VAS thrive on Very High Diversity .

Low Tele Density & USO : Telco increase the size of Pie and VAS Extract More juice out of that “Increased Pie” .

Thanks

Want to Talk about it ?