Slide 1: 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
Slide 2: 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?
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Slide 3: 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
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Slide 4: 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
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Slide 5: 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
Slide 6: 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 – Don’t 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
Slide 7: 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
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Slide 8: VAS market in India
Source: IMRB
Market size – Rs 9760+ crores (2009), Rs 16520 crores (2010 projected)
MVAS currently contributes around 10% to the operator’s 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
Slide 9: 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)
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Slide 10: 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
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Slide 11: VAS Strategy Realization via Aircel-Wipro SDP
Program Governance
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Slide 12: 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.
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Slide 13: Touching the Life of People Innovation
9/25/2009
Building the brand
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Slide 14: Touching the Life of People Innovation……
9/25/2009
Building the brand
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Slide 15: Thank you
Krishna Basudevan (Aircel) Ranjith Mukundan (Wipro)
