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    VAS: Trigger To New Revenue Stream: & Service Differentiation

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    rajjahnvi
    This document discusses value-added services (VAS) and innovation in the mobile broadband market. It notes that mobile operators are shifting from a focus on network capabilities to becoming service providers that exploit content on the internet through third parties. The document outlines Aircel's VAS strategy of focusing on application innovation, third party ecosystems, and network enablers. It also discusses emerging service paradigms like customer status-based services, private customer networks, and context-based content delivery. The VAS market in India is growing rapidly and expected to contribute more to operators' revenues as voice ARPU declines, making VAS innovation important for market share and new revenue streams.

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    VAS: Trigger To New Revenue Stream: & Service Differentiation

    Uploaded by

    rajjahnvi
    30 views15 pages
    This document discusses value-added services (VAS) and innovation in the mobile broadband market. It notes that mobile operators are shifting from a focus on network capabilities to becoming service providers that exploit content on the internet through third parties. The document outlines Aircel's VAS strategy of focusing on application innovation, third party ecosystems, and network enablers. It also discusses emerging service paradigms like customer status-based services, private customer networks, and context-based content delivery. The VAS market in India is growing rapidly and expected to contribute more to operators' revenues as voice ARPU declines, making VAS innovation important for market share and new revenue streams.

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    This document discusses value-added services (VAS) and innovation in the mobile broadband market. It notes that mobile operators are shifting from a focus on network capabilities to becoming service providers that exploit content on the internet through third parties. The document outlines Aircel's VAS strategy of focusing on application innovation, third party ecosystems, and network enablers. It also discusses emerging service paradigms like customer status-based services, private customer networks, and context-based content delivery. The VAS market in India is growing rapidly and expected to contribute more to operators' revenues as voice ARPU declines, making VAS innovation important for market share and new revenue streams.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    30 views15 pages

    VAS: Trigger To New Revenue Stream: & Service Differentiation

    Uploaded by

    rajjahnvi
    This document discusses value-added services (VAS) and innovation in the mobile broadband market. It notes that mobile operators are shifting from a focus on network capabilities to becoming service providers that exploit content on the internet through third parties. The document outlines Aircel's VAS strategy of focusing on application innovation, third party ecosystems, and network enablers. It also discusses emerging service paradigms like customer status-based services, private customer networks, and context-based content delivery. The VAS market in India is growing rapidly and expected to contribute more to operators' revenues as voice ARPU declines, making VAS innovation important for market share and new revenue streams.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 15

    Build the most exciting brand of the next decade

    VAS : Trigger to new revenue stream & service differentiation

    Krishna Basudevan (Aircel) Ranjith Mukundan (Wipro)


    23rd September, 2009

    State of VAS market .key points to ponder


    To what extent is mobile broadband shaping growth in the wireless data market? How is technology adoption shaping operator strategies with regards to the VAS market ?

    How is the use of smart phones contributing to greater VAS traffic?

    Which value added services have been successful in terms of revenue streams or as retention tools?

    What are the growth drivers for this market?


    2

    VAS-led Transformation: from a Network Operator to a Service Provider

    Few Cash Cow Services Long and Costly Service Design and Deploy Cycles Relied on Limited network capabilities IN Based Service Layer, Silo Applications

    to be a market leader in VAS/content lead era Large number of Services Short and low budget Design and Deploy Cycles Exploit all network capabilities Flip the business model exploit the content on the internet Leverage innovativeness of 3rd parties

    Aircel VAS Innovation Key attributes

    Focus Areas

    Organization Transformation
    3rd Party Ecosystem Network Enablers

    Ongoing

    Application Innovation Center Concept to Commercialization


    Roadmap

    SOA Based Architecture for Integrating Applications

    VAS Innovation enabling 3rd party ecosystem

    Idea for a new Service

    3rd Party Applications request for hosting

    Monitor Usage Encourage High Runners (Kill non-performers) Common Data Center for Application Rollout

    Quick Prototyping For Proof of Concept

    Alpha Trials by In-house Users

    Engineer the Solution For Robustness

    Small Scale Deployment and Beta Trials

    VAS-led Innovation - Solving the Innovators Dilemma


    Not all ideas can be rolled out commercially Each idea has the potential to become Killer App

    Ideas!

    Need the process and mechanism to test and exploit every Idea Dont Miss That Idea!!

    Commercial Deployment

    I have an idea! Where do I start? Assessing your idea How will I profit from my idea? Apply for funding for Proof of Concept (R&D) 6

    Build your first prototype Apply for IPR

    Engineering and scale-up of prototype Complete Market Study

    Production and Inventory Management Plan Implementation of Commercialization and Marketing Plan WINNER!! What is my next idea?

    Continue to build your marketing and business plan Is my proof of concept successful? Secure further financing for Product Development

    Certification Business Model and Marketing Strategy Secure financing for Commercialization

    Learning from the Internet world: typical Innovation Cycle Facts and Figures

    Number of Ideas 100

    85

    CAPEX FOR SERVICE ROLLOUT

    15%
    Few Weeks

    20%
    Few Weeks

    30

    30%
    Few Months

    20

    35%
    Few Quarters

    15 Timeline

    VAS market in India

    Source: IMRB

    Market size Rs 9760+ crores (2009), Rs 16520 crores (2010 projected)

    MVAS currently contributes around 10% to the operators revenue. It is expected to increase to 12% by June 2010
    Continuous decline in voice-led ARPU; need VAS-led data services to boost ARPU 8

    Aircel Leading the way


    AIRCEL is a joint venture of Maxis group, Malaysia and Apollo Hospitals Group, India. Maxis holds 74% share in AIRCEL. Turnover of more than Rs.3000 Crores

    Fastest Growing Telecom Company in India in 2007 & 2008

    Market Leader in Four Circles - Chennai, Tamil Nadu, Assam & North East and number 2 in J&K operation Launched Pan India operations in April 2009. Currently operational in 18 circles, covering all metros. Crossed 24 Million subscribers as on date Rated as best regional operator in Overall Mobile Satisfaction Survey 2007 - IDC First to Roll out 100% EDGE Enabled Network in India (3G Technology)
    9

    VAS is a big strategy for gaining market share & new revenue stream for Aircel

    VAS & Data services as a differentiation than any other new operator Aircel betting big on its VAS offerings like Location based services & phone banking to attract subscribers in metros
    10

    VAS Strategy Realization via Aircel-Wipro SDP

    Program Governance

    11

    Way Forward Emerging Service Paradigms


    Customer status based services
    Use the customer status such as presence, profile, location, and personal preferences as a enabler for services and applications

    Private customer networks as a service


    The ability to provide a networking capability between multiple customer assets at home and office, and offer programmability of the operator network to the home user

    Context based content


    Ability to leverage context like where the customer is, what the customer is doing, what the habits of the customers are, in providing, gaming, music, information, maps, points of interest etc

    Infrastructure as a service
    Ability to apply the concept of data center, storage virtualization for enterprises and end users.

    Verticalized services using M2M


    Ability to extend wide area wireless services to devices, gadgets, and embedded devices that can enable wireless communication to non-human subscribers like vehicles, pets, farm animals, surveillance and medical devices.

    12

    Touching the Life of People Innovation

    9/25/2009

    Building the brand

    13

    Touching the Life of People Innovation

    9/25/2009

    Building the brand

    14

    Thank you
    Krishna Basudevan (Aircel) Ranjith Mukundan (Wipro)

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