More Related Content Similar to Real-time Communications Catching the Next Wave (20) More from Dialogic Inc. (20) Real-time Communications Catching the Next Wave1. Real-Time Communications:
Catching the Next Wave
Application to Innovation Summit
13 June 2017
Pamela Clark-Dickson, Practice Leader
Digital Communications and Social Networking, Consumer Services
pamela.clark-dickson@ovum.com
@PamelaC_D
2. Ovum | TMT intelligence | informa2 Copyright © Informa PLC
Ovum view
Consumer communications: from analog to automation
Enterprise communications: Meeting the needs of the omni-channel consumer
AI and chat bots: The art (and science) of automated comms
The Internet of Things: Everything connected
Conclusions and recommendations
Q&A
Agenda
3. Ovum | TMT intelligence | informa3 Copyright © Informa PLC
Ovum view
2015-20: Fourth half-decade of distinct step-changes in
communications technology since 2000
Chat apps leading the charge
Enterprises need to be where their customers are
AI is everywhere – or is it?
IoT permeating into verticals; security and utilities leading use cases
for consumer market (smart home)
WebRTC already underpins many consumer and enterprise services
4. Ovum | TMT intelligence | informa4 Copyright © Informa PLC
Consumer communications: From
analog to automation
5. Ovum | TMT intelligence | informa5 Copyright © Informa PLC
From 2000: The evolution of communications
6. Ovum | TMT intelligence | informa6 Copyright © Informa PLC
OTT communications mobile monthly active users and traffic to more than double by 2020
Global, mobile monthly active users, 2013-2020
• 3.18 billion unique global mobile
monthly active users (MMAUs) of
chat apps by 2020.
• 68.8 trillion total annual chat app
messages (text, picture, video)
• Traffic growth drivers:
• Increased penetration
• Conversational nature of IM
Source: Ovum OTT Messaging Forecast 2016-20
7. Ovum | TMT intelligence | informa7 Copyright © Informa PLC
P2P SMS declines as use of OTT communications apps grows
• Global mobile messaging traffic falls to 4.54tn messages in 2021.
• Total messaging revenues decline to $54bn.
• Decline driven by growing penetration of chat apps.
• 64% of consumers in China, Japan, UK and US are MMAUs of chat apps (57% in 2015).
• 20% use on their tablet (13% in 2015).
N=4,003. Countries: China, Japan, UK, US
Question: Do you regularly (i.e. at least once a month) make use of the following services
on any of these devices?
Source: Ovum Digital Consumer Insights 2017: Communications, Commerce and Media
Source: Ovum Mobile Messaging and Revenue Forecast: 2016-21
8. Ovum | TMT intelligence | informa8 Copyright © Informa PLC
Chat apps expanding in all directions - communications
•Messaging
•Sharing
First
wave
•Voice
•Video
Second
wave
•Digital
assistants
•Bots
Third
wave
9. Ovum | TMT intelligence | informa9 Copyright © Informa PLC
Visual communications services expand in scope and functionality
Emoji and chat
bots
Augmented realityVideo callingSelfies and filters
10. Ovum | TMT intelligence | informa10 Copyright © Informa PLC
Consumer use of video calling leapfrogs voice calling on chat apps
N=4,003. Countries: China, Japan, UK, US
Question: Do you regularly (i.e. at least once a month) make use of the following services
on any of these devices?
Source: Ovum Digital Consumer Insights 2017: Communications, Commerce and Media
Question: Do you regularly (i.e. at least once a month) make use of the following services
on any of these devices?
Source: Ovum Digital Consumer Insights 2015/2016: Disruptive Communications, Ovum
Digital Consumer Insights 2017: Communications, Commerce and Media
• 39% of consumers use video calling on their
mobile phone in 2017.
• Usage increased from 25.7% in 2015/16.
• Use of video calling on mobile phones grew
from 13.9% in 2015/16, to 30% in 2017.
• In Japan, video calling more than tripled in
2017, to 24%.
11. Ovum | TMT intelligence | informa11 Copyright © Informa PLC
But telcos still have some cards to play in provision of consumer services, and must use
these to seek out and cement new revenue opportunities
Network ownership:
• Control quality and coverage –
churn reduction
• High-speed data via LTE
• High quality voice over VoLTE
• Wi-Fi calling plugs network
gaps
Customer relationship:
• Trusted provider
• Upsell traditional telco
services
• Cross-sell non-traditional
telco services/VAS (e.g.
insurance, smart home, IoT)
• Retail store network
Multi-play:
• Mobile/wireless, fixed,
broadband, TV
• Upsell multi-service bundles
• Enables content partnerships
Partnerships:
• Single access/billing point for
third-party services
• Package media and content
• Package non-digital services
12. Ovum | TMT intelligence | informa12 Copyright © Informa PLC
Enterprise communications:
Meeting the needs of the omni-
channel consumer
13. Ovum | TMT intelligence | informa13 Copyright © Informa PLC
Communications is becoming more contextual, giving rise to omni-channel customer engagement
SMS
Web (no
agent)
Social
media
Web
chat
Chat
app
E-mail
Voice
MMS
Income
Age
Gender
Location
e.g. city,
village
Games
console
Tablet
Smartphone
Desktop/
laptop
Network
Industry
vertical
Use
case
Generation X
Babyboomer
Millennial
Centennial
Traditionalist
14. Ovum | TMT intelligence | informa14 Copyright © Informa PLC
The trend towards omni-channel: the right channel at the right time for the right customer
Omni-channel communications:
• Switch technologies as
appropriate during a customer
interaction
• Transactions may start and
end in different channels
• Enterprise platforms must be
flexible and adaptable
15. Ovum | TMT intelligence | informa15 Copyright © Informa PLC
Consumers use multiple communications channels to interact with their service providers:
E-mail, web, SMS are still key
N=4,003. Countries: China, Japan, UK, US
Question: How do you typically access the following customer care functions from your service providers (such as a retailer, a bank or a government department)?
Source: Ovum Digital Consumer Insights 2017: Communications, Commerce and Media
16. Ovum | TMT intelligence | informa16 Copyright © Informa PLC
Little has changed since 2016: E-mail, voice and web chat predominate consumer
preferences for various customer care use cases
N=1,000. Countries: Germany, US
Question: Given a choice, how would you like to interact with your service providers’ customer care departments for these purposes?
Source: Ovum Customer Engagement Survey, 2016
17. Ovum | TMT intelligence | informa17 Copyright © Informa PLC
Consumers are also starting to use chat apps to interact with service providers in multiple
industry verticals
N=2,016. Countries: China, Japan, UK, US
Question: Would you like to interact with your service providers (e.g. telcos, banks or
government departments) using a chat app?
Source: Ovum Digital Consumer Insights 2017: Communications, Commerce and Media
N=3,659. Countries: China, Japan, UK, US
Question: Do you currently interact with any of the following service providers using a chat app?
Source: Ovum Digital Consumer Insights 2017: Communications, Commerce and Media
18. Ovum | TMT intelligence | informa18 Copyright © Informa PLC
AI and chat bots: The art (and
science) of automated comms
19. Ovum | TMT intelligence | informa19 Copyright © Informa PLC
Artificial intelligence in extremis: Humanity cedes control to machines, with dire
consequences
Source: The Matrix, 1999
Source: WALL-E, 2008 Source: Doctor Who, 2017
Source: Terminator, 1985
Source: 2001: A Space Odyseey, 1968
20. Ovum | TMT intelligence | informa20 Copyright © Informa PLC
The reality may be less dire, more utilitarian: self-driving cars, digital assistants, smart homes
21. Ovum | TMT intelligence | informa21 Copyright © Informa PLC
Smartphones and tablets dominate digital assistants to 2021, with Google Assistant to lead
the market
Global voice AI–capable device installed base by sub-segment
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2015 2016 2017 2018 2019 2020 2021
Installedbase(000s)
Apple Siri
Google Assistant
Amazon Alexa
Microsoft Cortana
Samsung S-
Voice/Bixby
Google Now
Chinese assistants
Global digital assistant installed base by vendor
Source: Ovum Digital Assistant and Voice AI-Capable Device Forecast 2016-21
Source: Ovum Digital Assistant and Voice AI-Capable Device Forecast 2016-21
22. Ovum | TMT intelligence | informa22 Copyright © Informa PLC
Beyond the hype: consumer use of digital assistants and chat bots is still very much
nascent
N=4,003. Countries: China, Japan, UK, US
Question: Do you use, or have you ever used a digital assistant (e.g. Siri, Cortana)?
Source: Ovum Digital Consumer Insights 2017: Communications, Commerce and Media
N=4,003. Countries: China, Japan, UK, US
Question: Do you use, or have you ever used a chat bot (i.e. an interactive "mini-app" that lives within a
communications/chat app and which can use artificial intelligence to mimic conversation)
Source: Ovum Digital Consumer Insights 2017: Communications, Commerce and Media
23. Ovum | TMT intelligence | informa23 Copyright © Informa PLC
Benchmarking key digital assistant offerings: As an emerging consumer technology,
geographical reach is still low
Name Languages Countries Voice identification? Native deployments Smart home
compatibility?
Developer platform?
Amazon Alexa 2 3 No 14 Yes Yes
Google Assistant 5 5 No 2 Yes Yes
Apple Siri 21 36 Yes 13 Yes No
Microsoft Cortana 8 13 Yes 45 No Yes
Hound 1 1 No None (app only) No Yes
Source: Ovum Consumer Facing AI Assistants Benchmark, April 2017
24. Ovum | TMT intelligence | informa24 Copyright © Informa PLC
Telco AI initiatives: Telefonica Aura AI-enhanced customer care platform – Telefonica’s ‘fourth platform’.
Objectives:
Give customers visibility and control over personal data and services
Secure environment/data sharing with third parties
Use AI for sophisticated, proactive customer engagement.
KPIs: decreasing churn, increasing upsell/cross-sell.
Availability:
Spain, UK, Germany. By February 2018.
Multiple platforms: mobile app, Microsoft HoloLens (VR), Skype,
Amazon Alexa, Amazon Echo
Technology partners: Microsoft (Cortana), IBM.
Services partners: Unicef, ProFuturo, Facebook and Caixa Bank.
Features:
‘Personal data space’ (cloud storage)
Timeline (chronologic data view).
Use cases: user-led service discovery and provisioning, technical or
product support, usage alerts, security installation, vulnerability
tracking.
Telco AI initiatives: Telefonica Aura takes customer engagement to the next level
25. Ovum | TMT intelligence | informa25 Copyright © Informa PLC
The Internet of Things:
Everything connected
26. Ovum | TMT intelligence | informa26 Copyright © Informa PLC
The IoT is in everything: The smart home, wearables, toys, connected cars . . .
27. Ovum | TMT intelligence | informa27 Copyright © Informa PLC
Security and utilities dominate smart home device sales to 2021
Source: Ovum Smart Home Devices Forecast: 2016-21
Smart home device unit sales by category, 2015-21
Source: Ovum Smart Home Devices Forecast: 2016-21
28. Ovum | TMT intelligence | informa28 Copyright © Informa PLC
Broadband service providers are engaging with the smart home opportunity
Source: Ovum Smart Home Devices Forecast: 2016-21
29. Ovum | TMT intelligence | informa29 Copyright © Informa PLC
The Internet of Things: many touch-points into enterprise
700 million cellular M2M connections by 2021.
Managing the ecosystem represents significant
challenges for enterprises and telcos.
Real-time communications between
devices/machines/systems is key.
30. Ovum | TMT intelligence | informa30 Copyright © Informa PLC
WebRTC is an underlying technology in many third-party communications apps – and the
stats show significant engagement (users are likely unaware)
Google and non-Google consumer and
enterprise communications apps are
already using WebRTC
WebRTC stats as of June 2016 (just about
due for an update!)
Description Data point
WebRTC-enabled browsers 2 billion+
Audio/video minutes sent per week
(Chrome only)
1 billion+
Data channel traffic per week (Chrome
only)
500TB +
WebRTC-based companies and projects 950+ - up to 1,200 as of May 2017
WebRTC acquisitions 30+
Sources: Google, bloggeek.me
31. Ovum | TMT intelligence | informa31 Copyright © Informa PLC
Telcos can use – and are using! – WebRTC as a building block for B2B and B2B2C services,
including IoT
• Firefox Hello: video chat service
• Royal Bank of Scotland (Coutts):
online consultations between
customers and wealth advisors
• Esurance, Valspar: post/pre-sales
support eg color consultations
• Chegg Tutors, Cambly,
TalkAbroad, San Francisco Minerva:
tutoring, online classes
• Genentech: consultations
between physicians and scientists
• Fluke, ConceptBoard,
TakeTheInterview: workforce
management, collaboration,
recruitment
B2B2C B2B2C B2C, B2E
32. Ovum | TMT intelligence | informa32 Copyright © Informa PLC
So, what is the next wave of communications?
2000 2005 2010 2015 2020
2003:
Skype,
LinkedIn
Fixed IP-based
communications
Mobile IP
communications:
smartphones, mobile
apps, social media
App-based
communications:
Chat apps, tablets
Automated
communications: AI,
chat bots
2004:
Facebook
2009:
WhatsApp,
Samsung
Galaxy
2007:
Apple
iPhone
2008:
Apple
App
Store,
Android,
Android
Market
Kakao-
Talk,
Instagram,
Apple
iPad,
BlackBerry
World
2011: Line,
WeChat,
Facebook
Messenger,
Snapchat,
Apple Siri
2012:
Viber,
Google
Play 2013:
Telegram
2014:
Signal,
Amazon
Alexa
Facebook
M,
Telegram
bots
2016: Google
Assistant,
Google Allo,
Duo; Bot
platforms:
Facebook.
Skype, Line
2006:
Twitter
2017:
AI: Kakao Brain, Live
Clova;
Visual communications
BBM,
Voxbone
2001:
Vonage
The communication
of things? Integrated,
contextual
communications?
2025
33. Ovum | TMT intelligence | informa33 Copyright © Informa PLC
Conclusions and
recommendations
34. Ovum | TMT intelligence | informa34 Copyright © Informa PLC
Conclusions and recommendations
Communications will increasingly be omni-channel,
multi-device, visual, contextual, and enriched with AI.
• Telcos need to look for opportunities that
dovetail with their assets.
AI has been coming for a long time, but finally looks
like it is just about here.
• Telcos need to decide if they wish to participate
(e.g. Telefonica). If so, partner for expertise.
Success of Internet of Things relies on stable, reliable,
high speed data networks.
• Telcos need to be front and centre on this, and
make sure they wear their services hat too.
WebRTC is a nascent technology, but it is already well-
established as an enabler.
• Telcos have probably missed the boat on
WebRTC-based consumer services – should look
to enterprise.
OR
35. Ovum | TMT intelligence | informa35 Copyright © Informa PLC
Thank you
Q&A
36. Ovum | TMT intelligence | informa36 Copyright © Informa PLC
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