Telco adoption of Web 2.0 principles and open innovation for rapid application development.

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© 2008 Alan Quayle
Alan Quayle
Business and Service Development
www.alanquayle.com
www.alanquayle.com/blog
www.linkedin.com/in/alanquayle
TELCO ADOPTION OF WEB 2.0 PRINCIPLES
AND OPEN INNOVATION FOR RAPID
APPLICATION DEVELOPMENT

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© 2008 Alan Quayle
What’s Changed?
Action PlanDeveloper Needs
Who’s Really
Doing What?

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© 2008 Alan Quayle
What’s Changed?

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© 2008 Alan Quayle
Re-Launch
An Operators Product Development Process
Opportunity
Identified
18-36 months
Market
Research
Find Budget
New product
development processLaunch
12-18 months

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© 2008 Alan Quayle
What’s Changed?
Expectations

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© 2008 Alan Quayle
What customers expect
6-12 months
Weekly
18-36 months
4 months

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© 2008 Alan Quayle

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© 2008 Alan Quayle
Where is the Money?
• The collective market capitalization of web-
based service providers such as Google,
Amazon Web Services, Facebook, My Space,
etc. is significant
• Google alone has a larger capitalization than the
majority of Tier 1 Communication Service
Providers in the world today
– Google’s market cap is larger than those of Comcast,
Verizon, Telefonica, China Telecom, China Netcom,
NTT DoCoMo, NTT, Hutchison Whampoa and
Deutsche Telekom, etc.
– Google is 10 years old (founded in 1998), and none of
these service providers existed prior to 1994
• The capital that has flowed to them has been
diverted from incumbent communication service
providers
http://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_MktVal.html
$270
Billion

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© 2008 Alan Quayle
Retail
Stores
Subsidized
Phones
Network
Control
Ecosystem
Control
Customer
Relationship
Brand
Billing
Relationship

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© 2008 Alan Quayle
Who’s Really Doing What?

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© 2008 Alan Quayle
Operator Activities in Opening the Network
• Telenor Content Provider Access (CPA)
– Generate within Norway roughly $100m a year in revenue, that is
6% of Telenor’s total subscription revenues.
• O2 Litmus (www.O2litmus.co.uk)
– Recently announced by O2, to be launched in late 2008,
extensively leveraging web 2.0 principles.
• Telecom Italia NexTIM
– Telecom Italia’s web 2.0 site exposing new services to its early
adopting ‘360 degree innovators.’ Letting the market decide what
services to launch, rather than solely internal product
management processes.
• SingTel Partners Program
– Leverage external 3rd party developers to tap into their potential
of unlimited innovation to drive new revenues. Promote access to
limited network resources and capabilities; reduce time-to-market
for launching new services and provide mechanisms for 3rd
parties to be paid.
• ProgrammableWeb
– An aggregator of APIs across operators and the internet, including
Orange Partners and BT’s 21C APIs.

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© 2008 Alan Quayle
Operator Activities in Opening the Network
• Orange Partner
– As a simple case study, it took only seven months from Orange’s
first meeting with a developer called mob-it (www.mob-it.com) to
launch a public beta of that service integrated into Orange’s
picture service Pikeo, using its open APIs.
• Verizon Open Development Initiative
– Verizon’s ODI (Open Developers Initiative)
– Device centric ODIS (Open Device Interface Specification) defines
what a device must do to interface to the VZ RAN (between the
device radio hardware and the access network)
• Sprint’s Business Mobility Framwork
– Sprint’s Business Mobility Framework launched in 2004. It
enables third parties to develop services using capabilities of the
Sprint network, such as location, presence and messaging. It is
based on Parlay X.
• And many more:
– AT&T’s devCentral, GSMA 3rd Party Access Initiative, BT, Telus

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© 2008 Alan Quayle
Developers’ Needs

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© 2008 Alan Quayle
Background on Research
• Results collated from over one year of market research
• From a maintained list of over 1000 web/voice/telco 2.0 application developers
130 developer’s feedback is included in these results covering:
– Detailed questionnaires (40+ open-ended questions)
– Face-to-face meetings (1-2 hours, structured)
– Phone interviews (30min – 1 hour, structured)
• Representative Application Developer mix
CommunityVoice 2.0
Web 2.0
Games / adver-
gaming
LBS
Content /
Search
UGC
Enterprise
eInclusion
Canada
US
UK / Ireland
Singapore /
APAC
Rest of
Europe
Company Name Descripition
Context
Based Business Social Financial
Enter-
tainment Voice 2.0 Telco 2.0 Viable Cool
Telco
Value
23half MMS visual search X X X 3 5 5
AirG Mobile Community (20M+) X X 5 5 3
Axis Remote survillance solutions X 4 4 5
Blinkx Video sharing site X X 3 5 5
Bluefire security mobile security X X 4 4 5
Credant mobile security X X 4 4 5
Dexterra Enterprise application mobilization X X X 4 4 5
Diversinet Mobile security X X 4 4 5
GreyStripe Ad supported gaming X X 3 5 5
Integra5 Converged services platform X X X X X 5 3 5
Kore Wireless M2M solution provider X 5 4 4
Krillion Mobile shopping - location based X X 3 5 5
Livewire mobile Music centric mobile application developer and infra X X 5 3 5
Mint Personal money management X 4 5 4
NewBay Mobile UGC sharing X 4 5 4
Spinvox Voicemail to text X X X 5 4 4
Movial Social communicator tool (mobile/PC) X 3 5 5
Trust Digital Mobile security X X 4 4 5
U-Locate location application company X X 4 5 4
Useful Networks Location application company X X 4 4 5
Utterz Voice based social publishing / network X X X 3 5 5
Veoh TV 2.0 X 4 5 4
Voxmobili Next generation address book X X X 4 4 5
Wavemarket LBS, family finder X 4 4 5
Way Systems Mobile POS X 4 4 5
Evryx SnapNow mobile marketing platform X 3 4 5
2waytraffic Digital content / games publisher (Sony trying to buy) X 5 4 3
3Bill Mobile payment services X 3 4 5
Adomo Enterprise UC X 4 4 4
Agito Enterprise application mobilization X 3 4 5
Angel.com Hosted IVR / Voice 2.0 X X 4 4 4
Appello Mobile navigation X 3 4 5
Bambuser Mobile blog - video based X 3 4 5
Bebo Social Network (bought by AOL) X 5 3 4
Bluepulse Mobile Community X X 4 4 4
BubbleMotion VoiceSMS / BI / Community X X 4 4 4
Web/voice/telco 2.0 list
Very Small
Small
Medium
Large
<5
<25
<70
>70

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© 2008 Alan Quayle
Developer Issues and Requests
Issues with Current Initiatives
• No live testing environment for end-to-end
testing
• No developer sandbox
• Very limited access to key capabilities for
providing interesting applications and
services
• Often have a web of stakeholders within the
operator which slows/halts the decision-
making and/or approval process
• Typically no single point of contact
• Inadequate operational support, e.g. VPN
set-up, switch configuration, etc.
• Little or no support for billing system
integration
• Lack of support for remote monitoring
• Lack of flexibility / willingness to try new
business models
• Rigid rules & guidelines for contributing an
application
• No/limited device independent platform
• No/limited embrace of browser based
services
Requests
• A live testing environment / access
to test lab
• Single point of contact for technical
issues
• Consistent operational support, e.g.
network connectivity, SMSC,
security
• Willingness to experiment in
business models
• Clear path of decision-making up the
chain of command
• Real project with full organizational
commitment from operators - not a
'fashion accessory.'
• VPN access to on-site systems for
remote monitoring
• Delegate testing and approval to
third party testing houses.
• ‘Approved developer’ certification for
the ability to fast-track approvals,
operational requests, etc.

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© 2008 Alan Quayle
Capabilities Application Developers Seek
• Single sign-on
• Address Book API
• Age Verification
• Billing/Charging
• Identity/Authentication
• Location
• Messaging
• Profile API
• File Browsing
• Browser based API
• Presence
• SIP/VOIP/Call Control
• Mobile Lookup
• Connection status
• Discoverability
• Short codes
• Plus lots and lots more……
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© 2008 Alan Quayle
Potential Telco API capabilities (from App Vendor Survey)
• Authentication & Single Sign-on
• Presence (device, application, call state)
and Availability
• Device Capabilities / Software
• Location (accuracies and freshness),
Proximity, Heading, Speed
• Preferences (policies or rules)
• Context – a combination of presence,
location, device status, application status,
meeting status (calendar), etc.
• Customer data (business intelligence)
• Call Control
• Messaging
• Network address book
• Group List Server (buddy lists)
• Enterprise Mobilization
• VoIP / SIP: tone insertion
• Call Flow: ACD, IVR, CRM, Helpdesk
• Charging / Billing
• Call Log / Call events
• Directory
• Message Store
• Home Network Enabler
• Content Delivery
• Policy (Quality of Service)
• IPTV enablers
• IPTV STB enablers
• Content Enablers
• Collaboration Enablers
• VoIP / SIP call control including invoking
supplementary services
• Fulfilment and other BOSS capabilities
• Digital Rights Management
• Device Management
• Local dial in number provisioning
• Ringtone purchase integration
• Video-ringtone platform
• Subscription status
• Mobile Video
• CDR number frequency search
• Calling Name dip
And the list goes on, much further on….. Prioritization is critical
High
Popularity

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© 2008 Alan Quayle
Distribution Discovery
Predictable
Process
Clear Path
to Cash
Developers’ Problems an Operator must Solve

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© 2008 Alan Quayle
Critical Findings
• Operators must:
– Implement processes to ensure ADC (Application Development
Community is used by the operator (not repeat the mistakes of the past)
– Reverse developer scepticism by listening, implementing what they
need, and show the ADC working
• Application developers will not pay for capabilities exposed
• Customer access is critical
• REST and SOAP/XML is the preferred API
• Full testbed is essential to the ADC
• Copy Apple’s App Store, just copy better

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© 2008 Alan Quayle
Action Plan

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© 2008 Alan Quayle
New revenue and
increase customer value
through Open Innovation
Clear Vision
Open the network to
3rd
parties and share in
value createdAgreed Strategy
Short-term OPEX
savings, long term
revenue growth
Realistic Plan

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© 2008 Alan Quayle
Organizational
Commitment
Promote the
Winners
Things to do List
Copying is
OK
It’s NOT the
Technology
It’s your PLAN!

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© 2008 Alan Quayle
Suggested Reading
Microtrends, Mark Penn
Here Comes Everybody,
Clay Shirky
The Gridlock Economy,
Michael Heller
www.alanquayle.com/blog