The Digital Telco EMI (Final)

1 Introduction 1. Digital Lifestyle - Globe and Smart 2. Customer Experience - giffgaff 3. IoT - AT&T 4. Engagement - T-Mobile USA 5. Cloud Services - Deutsche Telekom 6. eHealth - Telstra 7. Big Data - Telefonica Summary About Expert Market Insight "This report will introduce the latest advancements in the transformations of Mobile Operators" Introduction This report will introduce the latest advancements in the transformations of Mobile Operators effectively putting their network at the center of the digital lifestyle. The case studies introduced present the movers and shakers of the digital telco scene. These operators are embracing new ways of engaging with their customers, new services they can offer to their business customers and pushing new directions for the network data they collect. The Digital Telcos presented in this report are the mobile operators that have re-invented the way they position their network. Digital Telco Transformation To be considered a digital telco, an operator must strive to be more than just a connectivity pipe. The operator must strive to put their network at the center of the digital transformation that all of us around the globe are reacting to and adapting more and more daily. Operators are approaching this from different angels. They are creating easy to use interactive channels for sales, upselling and retention. They are providing subscribers with the highest possible levels of self-care. Others include near real-time service delivery and activation The Digital Telco Who Said Operators Can't Jump? processes, effective and integrated management of databases from both within the company and external channels, and a candid desire deliver the highest levels of customer experience. The Digital Telco transformation allows operators to gain an intimate understanding of their customers, become more responsive, improve satisfaction and address diverse needs on a personalized basis. The digital transformation needs to be a strategic goal and come as a result of a real passion to change the operator’s role in the digital lifestyle. Table of Contents click to tweet Wha

Transcript of The Digital Telco EMI (Final)

1

Introduction1. Digital Lifestyle - Globe and Smart 2. Customer Experience - giffgaff 3. IoT - AT&T 4. Engagement - T-Mobile USA5. Cloud Services - Deutsche Telekom 6. eHealth - Telstra 7. Big Data - TelefonicaSummaryAbout Expert Market Insight

"This reportwill introducethe latestadvancements inthe transformationsof Mobile Operators"

IntroductionThis report will introduce the latest advancements in the transformations of Mobile Operators effectively putting their network at the center of the digital lifestyle. The case studies introduced present the movers and shakers of the digital telco scene. These operators are embracing new ways of engaging with their customers, new services they can offer to their business customers and pushing new directions for the network data they collect. The Digital Telcos presented in this report are the mobile operators that have re-invented the way they position their network.

Digital Telco TransformationTo be considered a digital telco, an operator must strive to be more than just a connectivity pipe. The operator must strive to put their network at the center of the digital transformation that all of us around the globe are reacting to and adapting more and more daily. Operators are approaching this from different angels. They are creating easy to use interactive channels for sales, upselling and retention. They are providing subscribers with the highest possible levels of self-care. Others include near real-time service delivery and activation

The Digital TelcoWho Said Operators Can't Jump?

processes, effective and integrated management of databases from both within the company and external channels, and a candid desire deliver the highest levels of customer experience.

The Digital Telco transformation allows operators to gain an intimate understanding of their customers, become more responsive, improve satisfaction and address diverse needs on a personalized basis.The digital transformation needs to be a strategic goal and come as a result of a real passion to change the operator’s role in the digital lifestyle.

Table of Contentsclick to tweet

What is great about this concept is that is the Globe and Smart not only provide connectivity, but they are helping their customersfind apps that suit their lifestyle.The #DigitalTelco is about engagement, not just connectivity.

2

1What is great about this concept is thatGlobe and Smart not only provide the connectivity but they are helping their customers find and use apps that suit their lifestyle. The #DigitalTelco is about engagement not just connectivity.

Digital LifestyleGlobe and Smart

114.6mobile connections

100.8 total population

44.2active internet users32

active mobilesocial accounts

40active social

media accounts

The January 2015 "Digital in the Philippines" snapshot of We Are Social counts that among the total Philippine population of 100.8 million (with urbanization at 49%), there are 44.2 million active Internet users. Of these 44.2 million Internet users, 90% have active social media accounts. In the last four years, Internet access in the Philippines has grown by 500%, the fastest rate in Southeast Asia,but as mentioned previously, real growth is yet to come and it's coming!

On the mobile front, the Philippines is essentially a duopoly with two operators vying for the #DigitalTelco title of champion Digital Lifestyle Provider – Globe and Smart. Both operators have clearly adopted the “Digital Lifestyle” as a mantra and this resonates in everything they do. Similar to the #DigitalTelco T-Mobile’s Uncarrier, both Smart and Globe are unerringly focused on aligning with their customers.

GlobeAt Globe’s recent Digital Lifestyle and Expo held at the SM Megamall, Globe chief operating adviser Peter Bithos said: “Now we’re trying to change your digital experience... we’re trying to find the pain points that exist, and solve them one by one.” He continued that the theme this quarter for Globe is “all things digital”.

Globe postpaid plans are branded my Lifestyle Plan, can’t be more obvious than that. The plans combine unlimited text, calls and bundle in a choice of lifestyle app bundles for a promotional period (1 month) and 1 GB cloud storage for 2 years).

Lifestyle App BundlesNavigation AccuWeather, Google Maps, MMDA App, GrabTaxi, and Waze

Explore Agoda, Cebu Pacific, Looloo, PAL, Trip Advisor, Zomato

Fitness Pack 7-Minute Workout, Fitocracy, MyFitnessPal, Pact, RunKeeper, Strava Running and Cycling GPS.

What is great about this concept is that Globe is not only providing connectivity, they are helping their customers find and use apps that suit their lifestyle. The #DigitalTelco is about engagement, not just connectivity.

click to tweet

3

SmartIn a similar tone, Smart offers their Smart Surf plus Plans. “However you enjoy your Internet surfing,

Smart Surf plus Plans offers the data allowance that

suits your style”.

Smart Surf plus Plans enable customers to select various text and data caps. Smart offers one free app with the plan that the customer can change each month.

The Smart Life Entertainment bundle enables customers to watch their favorite movies and TV shows on the go. Each bundle gives customers data access to various entertainment apps and services, plus free OTT video subscriptions to iflix or FOX via Viewstream. Smart even provides a conciergeservice to subscribers.

Smart Life Concierge services include:

Special events and performance assistance

Flower and gift delivery assistance

Dining referral and reservation assistance

Hotel referral and reservation assistance

Both Globe and Smart are packing their services in a way that not only resonates with their customers, it makes sense to them. The #DigitalTelco understand the needs and wants of its customers, sometimes even before they do. The #DigitalTelco needs to walk the fine line between personalizing choice and over-complexity. Packing up offerings into Digital Lifestyle services accomplishes this by saying “we get you, and this is for you”. The Digital Lifestyle is all about engagement, empathy, understanding and above all the long-term relationship.

4

When it comes to customer experience, there is still a lot we have to learn. Digital transformation and online business have had a huge impact on redefining and reimaging customer experience. Customer expectations have been fundamentally shifted by the likes of Airbnb, Uber, Alibaba and Amazon. So what customer experience lessons and best practices have operators adopted?

Just check out giffgaff. For those of you not too familiar with the UK market, giffgaff is an MVNO that runs on the O2 UK network and is owned by Telefonica.Essentially this makes giffgaff a low-cost, no-frills Millennial-friendly Telefonica brand and we can’t stress the Millennial part enough. The chord-cut, TV-ditching Gen-Yers don’t want help. They figure they know more about anything than any of those old folks, if they have problems, they figure it out themselves or they ping a friend.

2Customer Experience giffgaff

In response, Giffgaff has no customer service phone lines. Complaints and problems are handled by agents via an online message board system. Responding to complaints can take up to 24 hours.

Giffgaff has community message boards where you post a problem and the gamified experts will help you

Mobile by the people,for the people,of the people. Here it really rings trueon a “community level”figure it out. In return, you help other people figure out their problems. What do you get out of this? Well two things really; One, you get resolution of problems by people that have actually experienced the problems (and hopefully the solution) and secondly it should result in a much cheaper mobile service, not having to pay for all those customer care agents.

5

Giffgaff actively canvassed its customer base for new features and other ideas. The giffgaff lab encourages customers to make a difference “Want to change something for the better, or have a genius idea? Post it now, then simply sit back and watch what happens next... you may be making giffgaff history. Ideas are then voted on by the community.

This is reminiscent of the T-Mobile USA type of engagement. Mobile by the people, for the people, of the people. Here it really rings true on a “community level”, this experience has a grass roots feel and the message and product is finely crafted towards a very specific segment.

We love their 2013 Zombie ad that claims different can be good and you shouldn’t be afraid. It’s not because we are Zombie fans, but their audience sure was. Zombies were huge with the Gen-Y’s, it was all anyone

was interested in offline (i.e. TV) or online.We have to admit our first response (we the Gen-X) to all this was; this is all well and good for a small MVNO like giffgaff or for greenfield operators like Free Mobile in France. However this kind of approach, just wouldn’t work for mainstream, incumbent operators. It definitely wouldn’t work for our Baby boomer Mother, it would drive her completely nuts. But, that’s just the point, it’s not for her! Operators are getting smarter. It is a mobile operator/MVNO /that is very focused on delivering the right product and service to the right customer, it’s not for everyone.

Many operators around the world have or are introducing low-cost or segmented brands in order to shape the experience and better engage with their customers. Are zombies really the future of our industry?

Giffgaff Zombie Add - Don't be afraid:

6

3IoTAT&T

IoT often touted as ‘one of the biggest technological advances of our age’, AT&T is putting in place a solid strategy to embrace and leverage IoT

AT&T is very serious about the IoT (Internet of Things). As of March 31 2015, AT&T had over nearly 22 million IoT connected devices. AT&T’s Q2 announcement revealed its net additions are largely driven by the rapidly developing connected cars market, and explained that nearly half of its 2.1 million net additions for its wireless business are connected cars subscribers.

Supporting Facts First telecom company to establish a group to explore IoT (Nov. 2008).

First Telecom Company to open a Foundry (Innovation Center) in Plano, TX devoted to IoT (2014). AT&T has launched 10 M2M projects so far and more than 20 are in the works.

First telecom company to open a dedicated research facility for connected car, AT&T Drive Studio (2014).

AT&T expects to connect nearly 50 percent of all newly connected U.S. passenger vehicles by the end of 2015.

AT&T connects more than 40 percent of the connected farm machines in the U.S.

AT&T connects more than 1.9 million fleet vehicles and 283,500 refrigerated shipping containers.

AT&T has certified more than 2,200 types of connected devices and that number is growing.

AT&T offers a Global SIM platform that provides wireless connections virtually anywhere in the world (200+ countries and territories).

AT&T provides innovative split billing solutions with both wholesale and retail options.

Digital Life is in 82 U.S. markets.

AT&T leads the industry in its selection of fitness, smart locator, and smartwatch wearables.

AT&T provides innovative split billing solutions with both wholesale and retail options.

click to tweet

7

These include:

Birdi’s Smart Air Monitor that not only tracks smoke but provides critical metrics such as air quality, carbon monoxide levels, and pollen count in your home. [more here]

Rescue Route – An intelligent color-changing lighting Rescue Route leads first responders to the scene of an emergency inside of a building while simultaneously illuminating evacuation routes. This useful solution was developed at AT&T Developer Summit Hackathon [more here]

Green Guest - A mobile application that enables hotel guests to monitor their energy, water & towel usage. While we’re not sure every hotel guest wants AT&T and their partner jumping in the shower with them, we can see the environmental benefits here.

#ConnectedLife While AT&T is undisputedly making strides on the industrial side, they are also keenly focused on the customer opportunities for IoT. AT&T’s Connected Living portfolio is designed to enable connected experiences across devices – now or in the future.

The current offering is focused on:

Connected Cars – Your car can alert you when repairs are needed, help you navigate busy streets or provide rear-seat entertainment.

With IoT often touted as ‘one of the biggest technological advances of our age’, AT&T is putting in place a solid strategy. IoT in many ways is still the ‘Technological Wild West’, a space where there is no standardization, little consistency and next to no agreement on interoperability. AT&T is doing all the right things to put solid foundations in place to overcome these issues.

The Platform - Industrial IoT /M2M AT&T M2X Data Service is an IoT development platform. The M2X Data Service is a managed service for developers that enables the collection, analysis and sharing of connected device data. It allows customers to connect their devices to AT&T's cloud-based data storage service. It lets companies collect, analyze and share data from trucks and turbines to vending machines and freight containers.

The CommunityAT&T is investing in building up a solid developer community around their M2X IoT platform. The environment gives developers the ability to test, tune and iterate before distribution. It also provides them with tools to scale from a single device to millions of devices once they are ready to launch. Post launch, the platform enables them to collect analytics, create notifications based on data triggers, and more. WithAPI documentation, client libraries, sample code and

tutorials, AT&T has made an intense effort not just to launch a platform, but create and nurture a serious grass roots development community that will go a long way towards sustaining innovation. AT&T and their development partners have already demonstrated some interesting and more important viable use cases for the industrial IoT platform.

8

Connected Cities – In the future, traffic lights will alert you to trouble spots, lampposts will detect flood zones and air quality, and city water pipes will detect and protect against wasteful leaks.

Connected Homes – A connected home is a safer and more efficient home. Adjust the thermostat and turn off excess lights to save energy and money. Monitor when family members come and go, open the medicine cabinet or open and close the garage door.

Connected Health & Fitness – Know and share vitals with the doctor from virtually anywhere. AT&T leads the industry in its selection of fitness, smart locator and smartwatch wearables with more than 30 wearables to choose from.

There is no question that AT&T has taken a serious lead in defining the capabilities and the directions of the Digital Telco. Most people agree that a clear strategy and vision for IoT is a critical component for Digital Telco success. The leading Digital Telcos understand that as traditional sources of revenue dry up, they must look for opportunities to create new value and innovate their way to new sources of revenue. While AT&T is definitely a recognized Digital Telco leader in IoT and other facets, they are not alone.

9

Sometimes it’s not about what you do, but how you do it. Call it attitude, panache or just listening to the voice of the customer, #DigitalTelco T-Mobile USA has engagement down to a T. The #DigitalTelco is something different and therefore it needs to shed ties to its ultra-corporate past. No other Telco has done this better than T-Mobile with its very pink Uncarrier strategy. It has turned a distant no.4 laggard into the fastest growing wireless operator in the USA. Talk about engagement!

This is an operator of the people, by the people for the people. Don’t believe us just check out

4Engagement T-Mobile USA

the Uncarrier “Bill of Rights”.

Uncarrier 1.0 – Freedom trail! T-Mobile announced it would do away with contracts, moving to phone leasing instead. This way, the customer could opt out at any time and either give up the phone or pay for the remaining balance on it. More than two years before Verizon moved to match suit.

Uncarrier 2.0 – Live the Dream! T-Mobile once again took on the establishment with its new JUMP program. Customers could now pay a little extra to be able to

upgrade to a newer model faster than every two years.

Uncarrier 3.0 – Roaming freedom! T-Mobile customers enjoy unlimited data and texting worldwide — at no extra cost. T-Mobile began offering international travelers a boon: a plan that did away with international data roaming charges in over 100 countries T-Mobile also threw in 200Mb

free for life for tablet users for the life of your device.

Uncarrier 4.0 - Freeing the Oppressed! T-Mobile vowed freedom for families locked in to a contract with other operators by paying off their early termination fees. Talking about sticking a finger in the eye!

Uncarrier 5.0 & 6.0 - Free da Music! Music Freedom announcement - T-Mobile’s Simple Choice customers will now be able to stream all the music they want from all the most popular streaming services, including Pandora, Rhapsody, iHeartRadio, iTunes Radio, Slacker, and Spotify – without ever hitting their high-speed 4G LTE data cap. T-Mobile customers access to a free (and ad-free) music streaming service. They also announced Wideband LTE and Voice over LTE (VoLTE) coverage, meaning better voice quality and data transfer over the newer LTE networks.

Uncarrier 7.0 - Wi-Fi Un-Leashed! T-Mobile customer "to call and text over any Wi-Fi connection for seamless coverage where no carrier network reaches -- even at 30,000 feet."

Engaging your audience on their terms is not only smart business,it’s critical for #DigitalTelco success.

click to tweet

10

Uncarrier 8.0 Protecting your Rights! Your carrier tricked you into buying too much data to avoid overage charges. Sounds familiar, right? And on top of that, at the end of the month they snatched back all the data you didn't use, even though you already paid for it. Data Stash™ lets you roll the extra unused 4G LTE data you paid for into the next month.

Uncarrier 9.0 Business Freedom! T-Mobile brings its simplicity an attitude to SMEs. Simple and 100% transparent pricing puts an end to the pricing shell game perpetuated by the carriers. Every line comes with unlimited talk, text and up to 1 GB of data on America’s fastest nationwide 4G LTE network.

Uncarrier 10.0 The 10th landmark Un-carrier move is a response to the surging demand for mobile entertainment T-Mobile if offering video streams free for subscribers of HBO, Hulu, Netflix, SHOWTIME, Sling TV, STARZ, WatchESPN and Verizon's Go90... there are with more streaming services on the way without using customers’ high-speed data. available at absolutely no extra cost.

The Uncarrier is not Just RazzmatazzWhen the outspoken Legere joined T-Mobile in September 2012, the unit of Deutsche Telekom had just 33.16 million customers, well below Sprint's 56.38

million connections, according to data from industry tracker GSMA Intelligence. T-Mobile was also leaking customers at the time. A few months before Legere took over, T-Mobile reported 33.16 million customers, down from 33.58 million a year earlier — and 33.62 million the year before that, according to GSMA.

At the end of the quarter 2015, Sprint says that it had 56.8 million total connections. T-Mobile ended its Q2 2015 — which also wrapped on June 30 — with 58.9 million total subscribers.

"Overall, we've done nine 'Uncarrier moves.' An

Uncarrier move is a move intended to change a

stupid, broken arrogant industry, and it's intended

to be permanent, and we want everybody to

change [to] no contracts, anytime upgrades and

international data roaming,"

(Legere)

Engaging your audience on their terms is not only smart business, it’s critical for #DigitalTelco success.

11

5Cloud ServicesDeutsche Telekom

Let’s face it, “Cloud” means lots of different things to different people, but that’s the idea. Just about anyone that has ever had to sketch out a network diagram for non-technical folks has said “we draw it as a cloud, it’s just a bunch of stuff you don’t need to be concerned about.” According to Deutsche Telekom, the #DigitalTelco should be very concerned about the cloud. DT has been

a big cloud player for years now, but they have really put their foot down in recent time and view the cloud as a defining jewel in the #DigitalTelco crown.

The cloud is a dual opportunity for the #DigitalTelco. Firstly operators are competing in consumer cloud. Well, maybe not so much competing as making sure they have an offering. There are many OEM solutions available to help operators put in place a personal

DT’s cloud strategy is not only positioned towards personal cloud and SMEs,the SAP Connected Logistics softwareand the Connected Car solution from T-Systems, form the basis of the smartPORT logistics networking solution.

12

cloud storage offering to equal the likes of Dropbox, Box, Google Drive, OneDrive … This market is so crowded that there is little opportunity here for operators other than trying to keep their customers at “home” with their own cloud service. DT’s pitch here is security and bundled apps.

The second opportunity, the one where DT is really investing, is the Enterprise Cloud. DT has big plans to double annual revenues from cloud enterprise services in the next three years, to around €2 billion (US$2.24 billion), by stealing business from Internet giants including Google and Amazon.As early as 2012, DT unveiled a target of increasing annual cloud revenues from about €400 million ($449 million) that year to approximately €1 billion ($1.12 billion) by 2015 and it looks like they are pretty much on track.

DT has partnered with the likes of Huawei and SAP to deliver a secure cloud infrastructure and a myriad of ready-to-go cloud applications. Cloud security is where DT sees its USP. All DT’s cloud infrastructure and data centers are located in Germany, which has very strict security regulations. DT is banking on a super-secure cloud helping it stand out from the likes of Amazon and Google (here). Since security is often mentioned as one of the biggest concerns when moving on up to the cloud, this makes a lot of sense.

Earlier this year at CeBIT 2015, DT announced they were offering encrypted Microsoft Office 365. The

encryption solution was the result of a partnership between a T-Systems subsidiary and CipherCloud. They had previously partnered in 2014 to offer an encrypted Salesforce solution.

DT’s Business Marketplace portal currently offers over 40 prepackaged apps (here) aimed at SME and enterprise customers. (Note: links below are in German).

Some app examples:

Sage is an online payroll solution. With Sage “simply rewarding” you save time and money on your payroll. The intuitive billing wizard guides you in three steps to use the application.

ZEP is a solution for logging and analyzing project

working hours. Here the staff can also use the app on their smartphones and tablets.

The project management software Projekta includes modules for time recording, CRM and project controlling. Projecterus simplifies multi-project management including project and resource planning, project controlling and document storage.

Projecterus simplifies multi-project management, including project and resource planning, project controlling and document storage.

PadCloud provides mobile document management: Using a defined period of validity or regionally localized availability, for example, employees can precisely specify who can receive and use which

documents and when.

DT’s cloud strategy is not only positioned towards personal cloud and SMEs. At MWC in Barcelona earlier this year, DT announced an OEM deal with SAP for connected logistics. The SAP Connected Logistics software and the Connected Car solution from T-Systems, form the basis of the smartPORT logistics networking solution that has been successfully used in the Hamburg Port Authority (here). This type of solution showcases the real power of the cloud within #DigitalTelco strategy.

13

6eHealthTelstra

When moving into new strategic verticals, #DigitalTelco have various go-to-market strategies in front of them. These strategies often range from “dipping in the toe” by partnering with companies that have vertical expertise to going the “whole hog” and building the expertise internally. When Australian incumbent Telstra decided that #eHealth was going to be a strategic vertical, they resolutely jumped all in.

Telstra created a stand-alone business unit, Telstra Health and hired a leading Healthcare professional, Shane Solomon to build it from the ground up. Telstra Health’s mission is all about bringing the benefits of the digital revolution to health providers, practitioners and – most of all – its patients.

You want to see a #DigitalTelco who is serious about #eHealth, just check out the list a recent acquisitions Telstra has made in this space.

Nov 17 2014 Telstra Health announces acquisition of iCareHealth’s Australian operations (here)

Jan 2 2015 Telstra Buys Indian Healthcare Startup IdeaObject (here)

Telstra Health’s mission is all about bringing the benefits of the digital revolution to health providers, practitioners and – most of all – its patients.

Jan 5 2015 Telstra Health picks up cloud medicine (here)

March 27 2015 Telstra buys UK's health analytics firm Dr. Foster to boost profits (here)

April 1 2015 Telstra buys Medibank e-health business (here)

Telstra’s #eHealth plan is to connect patients, healthcare workers, hospitals, pharmacies, government and health funds to build a safer, more convenient way of managing health. Telstra Health has mapped out various segments and is offering a tailored solution and product set to each.

14

Telstra’s #eHealth plan is to connect patients, healthcare workers, hospitals, pharmacies, government and health funds to build a safer, more convenient way of managing health. Telstra Health has mapped out various segments and is offering a tailored solution and product set to each.Following is a snippet of the segments and the associated product offerings;

Government and Insurers – Telstra partners with government, health funds and insurers to deliver thought leadership, industry expertise, and practical and scalable solutions with the aim of improving system and health service efficiency and self-managed care.

Home & Mobile MonitoringIntelligenceClinical Consultation

Hospitals - A connected healthcare system to more with fewer resources while maintaining levels of quality and safety, and balancing your budget.Hospital Provider Applications

Secure MessagingHome & Mobile MonitoringIntelligence

General Practitioners (GPs) – Telstra enables GPs to become more efficient, to deliver continuity of care while relying on patients to share other medical advice received, and to take responsibility in care coordination and clinical teamwork.

GP Provider ApplicationsPrescribing ServicesSecure MessagingClinical Consultation

There are several more segments and related products, but the picture becomes clear. Telstra understands that their core traditional Telco capabilities underpin

the pivot to evolve into a #DigitalTelco. They also understand that if an operator really wants to evolve, it is not enough to simply wrap the traditional capabilities up fancy like and tie a bow on it. The only way to realize a new sustainable revenue stream is create new value for existing or new customers. Telstra’s #eHealth commitment is inspiring and they are surely playing a key role in crafting the definition of what will be the #DigitalTelco.

15

Telefonica provide mobile insight solutions and usesthis insight to enlighten the space between organizations and their users, enabling them to improve their propositions and businesses.

7Big DataTelefonica

You just knew that Big Data and #Analytics had to be part of the #DigitalTelco scene. We picked Telefonica as the poster-child for this area. While it is true that Telefonica brought Telefonica Digital back into the fold last year, Telefonica Dynamic Insights is a significant remnant of this standalone business unit.

Telefonica Dynamic Insights (TDI) is focused on the

development of products and services that leverage on Telefonica’s global Big Data assets. Telefonica provides mobile insight solutions and use this insight to enlighten the space between organizations and their users, enabling them to improve their propositions and businesses. In short, TDI is external monetization of Telefonica’s Big Data capabilities.

TDI currently comes in two flavors:

1. Smart Steps – Any Big Data Insight solution that uses anonymous and aggregated mobile data to help organizations make better business decisions based on actual behavior. (More here)

2. Travel Alerts – A secure real-time Big Data service that tells you when your customers are travelling abroad. Essentially it is a consent-based way for banks and credit card providers to verify card transactions abroad using mobile technology. (More here)

Smart Steps, which provides Bi Data insights based on the behavior of crowds to help companies make informed business decisions, was launched in October 2012 as the first product of Telefonica Dynamic Insights. In the first 18 months, the focus was spent understanding the Big Data, creating the platform and

click to tweet

16

trying to focus on a retail solution looking at granular insights.The Smart Steps Big Data solution targets both RETAIL and TRANSPORTATION verticals.

Smart Steps for Retail (here) - Utilizes Big Data to Smart Steps for RETAIL - Utilizes Big Data to measure the impact of retail decisions, such as;

Measure your stores performance Predict demand Understand location

Smart Steps for TRANSPORT (here) – Utilizes Big Data to support several uses case such as Smart Cities to origin and destination, catchment & demographic analysis driving network optimization, efficiency increase and cost reduction. Examples include:

Transport Models - Helping to build transport models, using near real time data to predict volumes, journeys modes and the impact of network changes.

Support rail franchise bidding – Market share figures, journey time data and origin/destination heat maps.

Predict demand – Peak and troughs in demand to quantify the market and understand where customers and potential customers begin and end their journey.

Smart Steps and Travel alerts have enabled Telefonica to utilize its core competencies of connectivity and Big Data Analysis bring significant value to specific vertical markets. They did not just think about the Big Data they could collect, but they worked with vertical industries such as transport industry (air – road- rail), retail and banking to understand the business challenges. Once they understood that they could create significant value to the vertical they began working on solving the critical issues.

17

Summary

Digital Telco Transformation is being approached by several operators around the world each with a unique twist. There is an amazing broad range of possibilities to address this mega trend!

1. Globe and Smart from the Philippines are creating the digital telco revolution with unique content packages offered to subscribers and have become part of their lifestyle.

2. Giffgaff from the UK is approaching their target audience in a whole different manner than before, creating an engaged community, choosing their communication network based on their communication with them as people. They are using an interesting and very new age marketing approach.

3. AT&T in the US are taking the lead in making the connected life vision come about with their all-encompassing internet of things connectivity platforms.

4. T-Mobile in the US are shaking the Operator way of doing things by introducing their new UNCARRIER, agenda that covers the whole way they do business or treat their customers. They want to change their place in the market by creating these new engagement principles. They strive that customers will choose their network as a matter of ideology.

5. Deutsche Telekom in Germany are leading their transformation by becoming the ultimate connection to the CLOUD – cloud applications, cloud services, cloud storage, cloud security. DT have identified the transformation in IT technology and have built their strategy to connect to the cloud and even offer cloud services and applications. They have expanded the role of connectivity network provider to include Cloud IT.

6. Telstra in Australia have found a very critical role to lead and that is in a brave direction of eHealth. Telstra are making eHealth a reality. Their value of their connectivity will also improve people’s life and wellbeing and even save lives.

7. Telefonica has embraced the Digital Telco revolution from the direction of BIG DATA – not only are they using the data they collect on their network to better serve their customers, they are helping their customers use their data to improve their business. Using Data for Personalization, Analyzing Data, Selling Data, and Finding Insights from Data, all of it definitely due to the Digital Telco approach.

18

AboutExpert Market InsightMany B2B companies are creating valuable content, but they are still broadcasting their message LOUD to the CROWD. Most of their prospects and customers will never hear the message. Expert Market Insight will enable you to share your messages with an engaged audience by creating value and building trust.

Our unique combination of vertical and marketing expertise come together in the form of the Expert Marketing Insight Engagement Hub. The Engagement Hub is the place where valuable, timely content becomes the segway to building an engaged audience for your business. The Engagement Hub will become the central gathering point for your audience and community.

ContentAt the core of our model is simply valuable content. The Engagement Hub combines curated real-time industry news, comments and analysis with original and repurposed content. The end result is a consistent source of truly beneficial knowledge that builds your engaged audience.

EngagementEven the most compelling content is only valuable when it reaches the intended audience. The Engagement Hub automates the process of finding, attracting and retaining your audience through multiple channels and platforms.

IntegrationWhether your goal is building an engaged audience, dominating thought leadership domains or demand generation, measuring progress and KPIs are always essential to success. The Engagement Hub provides

ongoing reports and analytics about audience growth, audience activities and lead generation. The Engagement Hub can be integrated seamlessly into your marketing department lead generation and nurturing programs.

Our Areas of Expertise Analytics ● Application-level Security ● Big Data ● Cloud ● Content Based Charging ● Customer Experience Management ● DDoS ● Deep Packet Inspection ● Digital Lifestyle ● Digital Telco ● IoT/M2M ● Network Evolution ● OTT ● Policy Control and Charging ● Smart Cities ●Value-added Services ● Wireless Infrastructure ● and the list is growing…

Build Your Audience Today!

ThoughtLeadership

DemandGeneration

Expert Market Insight

Engagement Hub

Content

Engagement Calls-to-action|Gam

ifcation|Polls/Surveys|Syndication|New

slett

er|P

rom

otio

n|SE

O &

PPC

Integration Analytics | Goal Trakcing | Reporting | Targeted KPIs | Inbound Marketing | Marke

tin

g Aut

omat

ion

| Le

ad G

ener

atio

n & N

urtu

ring

Original

Cur

ated

Repurposed