Operator App Store nd Unlocking Potential : l www.huawei.com - PowerPoint PPT Presentation

47pt 30pt hite : Operator App Store nd Unlocking Potential : l www.huawei.com www.huawei.com Roopesh Singh Director, Technical Pre-Sales & Solution Design CSCN BL India R&D January 2012 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Agenda 1 Challenges faced by the Operators 2 Challenges faced by the App Developers 3 Industry Case Studies 4 Overview of Huawei DSM Page 2 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

More traffic didn ’ t bring Operator so much revenue 3G traffic and revenue comparison Global mobile data traffic and revenue Data traffic (PB) Data revenue (US$ mil.) 4,015PB Traffic $99 1 GB $69 500 MB $199 unlimited $69 500 MB Per month Per month Per month Per month 238PB = 1.4 × = 2.9 × Price 322b 175b Source: Verizon’s CEO at CTIA 2009 Source: Informa Telecoms & Media  heavy traffic ≠ high revenue , 3G and  Global mobile data traffic will increase smart phone brought heavy traffic, but 1587% , but revenue will increase only not generate so high revenue 84% (2008-2013), by Informa Page 3 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Potential revenue is eaten by OTT providers Value Added Service Revenue Operators • Tencent QQ – 647M • Skype – 663M Subscribers, Consume 45% Registered Users, Data Traffic of Guangdong Occupied almost 20% Mobile. SMS ARPU of Tencent of International Voice QQ User is 37% Less Than the Traffic Average Page 4 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Huge space in Mobile Apps development Global Mobile App Sales/ Revenue (Billion) 29.5 21.6 Sales Revenue 17.7 15.1 8.2 5.2 4.2 2.5 2009 2010 2011(Estimated) 2015(Estimated) Leading Application stores by Leading Application stores by Terminal vendors/ ISP Telecom operators Page 5 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

It’s time to reconstructed Traditional network 3rd Party/Internet CP/SP CP/SP CP/SP CP/SP CP/SP End user BSS/OSS … MT SM MM RB … MTV SMS MMS RBT Mgmt Mgmt Mgmt Mgmt Mgmt … Portal Portal Portal Portal Portal Access Access Access Access Access … SMSC MMSC RBT MTV Telecom Network GSM/WCDMA/CDMA/IMS…  Long time to market deploying new service  High CAPEX & OPEX via silo construction  Difficult to aggregate the service and content for local market Page 6 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Agenda 1 Challenges faced by the Operators 2 Challenges faced by the App Developers 3 Industry Case Studies 4 Overview of Huawei DSM Page 7 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Application Download vs Revenue  Even though Global Mobile Phone Application downloads will exceed 40 billion download in 2016 but only 5 billion would be paid downloads Page 8 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Application Download vs Revenue  As per Ovum survey, 40% respondents paid nothing for applications each month, while 36% paid between 0-$5 a month.  Commoditization of Applications means purchases are at the lower end of the spectrum, with $0.99 becoming a common price point. Page 9 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Challenges Premium App Payment How to increase the How to sell to Premium Revenue users without App consumption? Credit Card? Localization Devices How to benefit from mass feature phone users? How to bring the localized content / Revenue Apps for Tablet, applications? Connected TV / other specialized devices Page 10 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Agenda 1 Challenges faced by the Operators 2 Challenges faced by the App Developers 3 Industry Case Studies 4 Overview of Huawei DSM Page 11 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Operators are looking for … Mobile TV PC Specific Phone Terminal  A future-oriented and SOA- based Service infrastructure Telecom Service Internet Service  Better user-centric experience Comm Social Network Music Reading unicate … Game Communicate  Accelerate service innovation and aggregation SDP (Service Delivery Platform) Fixed Network Mobile Network Broadband Internet IMS Page 12 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Key Enablers Flexible Billing & Payment Options Aggregation & Cross Selling Network Exposition Telco-Web Integration Telco 2.0™ 'two -sided' telecoms business model Page 13 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Standard Network Exposure Page 14 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Network Enabled Applications Page 15 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Network Enabled Applications Page 16 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Value Added App Store Application adapt as per Data Connection Devices Profile & Device Capability information Flexible Freemium model, Time Based Models priced by Day, Hour, or Week, Bundled offers Pricing Target young subscribers who don’t have Credit Payment Card or not willing to share details over net e.g. Options Operator Billing, In-Application Billing Cross Promote other services, be they devices, Ringtone/Songs, a TV proposition, or special offers. Selling Page 17 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Operator’s App Store vs Device App Store Page 18 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Agenda 1 Challenges faced by the Operators 2 Challenges faced by the App Developers 3 Industry Case Studies 4 Overview of Huawei DSM Page 19 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Introducing Huawei DSM Solution  Huawei DSM (Digital shopping mall) is hosting solution with a pre-stock l ibrary of the mobile internet services including Valueable in-house services, long tail applications as well as Vertical industry services for life, which is based on SDP , enabling operators’ service cloud. Work in Cloud Life in Cloud Business in Cloud Valueable In- Vertical Industry Long tail Apps house services Services Internet Telecom Huawei Service Delivery Platform Page 20 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

See how it works… Key Features • One stop consumption experience • Mobile Internet combination • Mutiple access (ODP/ WAP/ Web/ SMS/ USSD) • Multi-channel delivery • Recommendation/ Comments • Personalization • Context awareness Page 21 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Main benefits of Huawei DSM solution SMS Fulltrack Signature MCN Faster Football Manager VoD Enhanced RCS Time-To-Market SMS … Live TV VMS Report Mobile Newspaper E-Reading Color Weather SMS Forecast Lower Rich Initial Pre-installed Digital Shopping Mall Investment Content& Apps Platform & Multiple Global APPs Screens& Terminals Experience sharing Supported SDP Service & Value-chain Professional Services Operation Collaboration Page 22 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Huawei SDP market achievement update  Best SDP award by GSMA 2010  No.1 global market share by Gartner  Selected by 100+ operators worldwide, incl. 5 biggest mobile operators CMCC, VDF, TLF, AM and CU, etc Page 23 HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Thank You www.huawei.com HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

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