Transcript PWP - 2,7Mo

User-Centric Broadband:
Alcatel’s vision for growth
IDATE - November 25, 2004
Philippe Germond, Alcatel
From the Internet Bubble to the Broadband World
Internet wave II:
The Broadband World
High Traffic Growth
High $ Value
Internet wave I
3 questions for Service Providers:
Will the addressable $ pie grow?
High Traffic Growth
Low $ Value
How will they grab a larger share
of the pie?
Alcatel’s “User-Centric Broadband”
vision for success
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel
Internet Wave II: The Broadband World
Question #1
for Service Providers:
Will the Addressable
Pie Grow?
User-Centric Broadband: Alcatel’s vision for growth
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Opportunity for Voice & Data Communications: Maturing
Market
Emerging markets:
growth from increased
mobile penetration
Developed markets
• Fixed telephony
decreasing
(fixed-mobile substitution,
pricing models)
• Still increased
mobile usage
• Increased broadband
penetration
(fixed & mobile)
Source: IDATE, DigiWorld 2004
VoIP threat
User-Centric Broadband: Alcatel’s vision for growth
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Broadband demand has proven elastic to price decreases
and bandwith growth
Users (m)
5
4
3
Total lines
€
Unbundled lines
512 Kb
40
€
2m
2
1
0.7 m
0
<1 k
Mid 2002
Monthly fees (€)
50
4.6 m
1 Mb
€
30
20
10
60
Mid k2003
700 k
0
3
Bandwidth X 2
Users X 6
Unbundled lines X 1k
Price drop X
Mid 2004
… in two years
Example: French fixed broadband market
User-Centric Broadband: Alcatel’s vision for growth
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From “Free” to “Free + Premium”:
customer segments pay for specific value & simplicity
From free dial-up
access to €30/month
triple play
broadband
service
Future model is combination
free + premium services
Premium value: immediacy,
personalization, richness,
legal, mobile access...
Free + Premium Services (mobile access & extra content)
for specific segments (ex: avid investors)
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel
150M paid
downloads
(oct 04): value is
ease-of-use with
iPod and “clear
conscience”
A lot of unmet needs beyond access
Translating Unmet
Needs into Services
Empower Me
Virtual
Assistant
Virtual Watchman
Entertain Me
Video on demand
Video on the go
Organize Me
Message Management
Automatic Synchronization
Network Back-Up
Connect Me
Video-Telephony
Real-time Quality and Cost-Based Routing
Hierarchy of Broadband Needs
Examples of Services
Key Success Factors will be CUSTOMER VALUE and EASE OF USE
Source: Alcatel focus group research, April 2004
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel
Will the Addressable Pie Grow?
COMMUNICATIONS
Where is the market disruption
(big opportunity to grow)?
Voice and Data
Communication
(€1000Bn)*
The Opportunities in:
• Consumer
• Small & Medium Business
*Source: ALCATEL based on various analyst sources
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel
The Opportunity for Communications
Empower Me
REMOTE MONITORING
“Track what is important to me”
Voice and Data
Communication
(€1000Bn)
Entertain Me
Organize Me
CONTENT EXCHANGE
“See what I see”
Connect Me
EMOTION SHARING
“Feel what I feel”
Hierarchy
of Broadband Needs
Will Video Communications
come of age?
Source: Alcatel Video Research, Dallas, Philadelphia, London, Milan; Alcatel August 2004
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel
The Opportunity for Communications
Interactive Video
Mobile Entertainment
Empower Me
Entertain Me
BROADBAND
ENTERTAINMENT
Organize Me
Broadcast
and Content
(€300Bn)
Connect Me
Hierarchy
of Broadband Needs
Will Interactive Video
come of age?
Will Mobile Entertainment
come of age?
User-Centric Broadband: Alcatel’s vision for growth
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Unmet User Needs in Video Entertainment:
Opportunity for Broadband
MORE INTERACTIVE
Entertainment and Communications habits
converge “View together”
Mobile phone becomes remote control
User-Centric
Broadband
Video
MORE PERSONALIZED
“Primetime” becomes “My Time”
From “Broadcast” to “User-Centric
distribution” (ex: VoD)
MORE ACCESSIBLE
Entertainment goes mobile
Source: Alcatel Video Research, Dallas, Philadelphia, London, Milan; Alcatel August 2004
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel
Service Providers and Content Providers:
Alcatel Facilitates Conditions for Joint Growth
Conditions for joint growth:
Broadband security
against piracy
User-Centric Digital
Rights Management
Early release for Video
on Demand
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel
Will the Addressable Pie Grow?
The new Consumer Market for Service Providers
+
COMMUNICATIONS
ENTERTAINMENT
Interactive Video
Mobile Entertainment
Video Communications
Voice and Data
Communication
(€1000Bn)
User-Centric Broadband: Alcatel’s vision for growth
Broadcast
and Content
(€300Bn)
All rights reserved © 2004, Alcatel
Will the Addressable Pie Grow?
The Small and Medium Business (SMB) Opportunity
SMB demand simplicity
•ICT integration
•One-stop shopping
& support
Telcos can leverage
•Brand
•Local footprint
SMB Mid Market
SMB Mass Market
Solutions for
multi site SMBs
Packs for mainly
single site SMBs
100ks
1Ms
Sources: Alcatel, Eurostat, BNP Paribas, IDC, AMI Partners, Frost&Sullivan
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel
Need to sort out
•Offering (ICT bundle)
•Channel strategy
Internet Wave II: The Broadband World
Question #2
for Service Providers:
How to Grab
a Larger Share
of the Pie?
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel
New Competition for the Consumer Opportunity
+
COMMUNICATIONS
ENTERTAINMENT
Interactive Video
Mobile Entertainment
Video Communications
Voice and Data
Communication
(€1000Bn)
User-Centric Broadband: Alcatel’s vision for growth
Broadcast
and Content
(€300Bn)
All rights reserved © 2004, Alcatel
Alcatel sees 3 stages of evolution
New
Services
Adoption
User-Centric
Broadband
Services
Broadband
Services
Multiple new
Connectivity
Services
1995
User-Centric Broadband: Alcatel’s vision for growth
2000
2005
All rights reserved © 2004, Alcatel
2010
What consumers tell us: they want MORE DIVERSITY
Users want
a DIVERSITY of services
+
Users want
a DIVERSITY of devices
and connectivity
Mobility
Empower
Me
Entertain
Me
Comfort
Organize Me
Optimal
Trade-Off
Connect Me
Hierarchy of Broadband Needs
Security
Source: Alcatel focus group research, April 2004
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel
Cost
Network will manage COMPLEXITY for the User
NETWORK ORCHESTRATES
for SIMPLE EXPERIENCE
Any device, Any broadband
Single Authentication
Users demand
SIMPLICITY
Diversity of services,
devices and
connectivity creates
COMPLEXITY
User-Centric Broadband: Alcatel’s vision for growth
Consistent Personalization
Transparent Synchronization
All rights reserved © 2004, Alcatel
Service Providers are in key position to increase
CUSTOMER APPEAL & LOYALTY
Service Providers’
key opportunities
Service Providers’
key assets
Communication
Networks
Rewarding experience
(Quality of Service, Choice of
Connectivity, one-Stop Shopping)
Customer relationship
Single customer profile
(invoice, support interactions,
behavioral data)
(single bill, single reference
for parameters & data)
Brand
User-Centric Broadband: Alcatel’s vision for growth
Trusted Guardian
(security and privacy)
All rights reserved © 2004, Alcatel
Broadband Video Strategy for Service Providers:
Communications enable new User Entertainment Experience
Phase 1:
Market entry
Phase 2:
Secure
and
develop
FIXED SERVICE
MOBILE SERVICE
TRIPLE PLAY
SERVICE BUNDLE
2.5G BASIC
MOBILE VIDEO
PERSONALIZED AND
INTERACTIVE EXPERIENCE
PERSONALIZED AND
INTERACTIVE EXPERIENCE
VIDEO-TELEPHONY
INTEROPERABILITY
VIDEO-TELEPHONY
INTEROPERABILITY
Phase 3:
Differentiate
long-term
User-Centric Broadband: Alcatel’s vision for growth
USER-CENTRIC BROADBAND SERVICES
All rights reserved © 2004, Alcatel
Internet Wave II: The Broadband World
Alcatel’s
“User-Centric
Broadband”
vision for Service
Provider success
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel
Business
Environment
Consumer
Environment
User-Centric Broadband: Alcatel’s vision for growth
The best
access
network
available
for what
the user
needs to do
here & now
A transport
that provides
the required
Quality
of Service
All rights reserved © 2004, Alcatel
A service
delivery
platform
managing
a single
customer
profile
Any Content
Every Terminal, Everywhere
Each User
Enabling User-Centric Broadband
Business
Environment
Universal
Broadband
Access
Wireline
Consumer
Environment
Wireless
Satellite
Service
Aware
Edge
&
Data
Aware
Transport
Service
Delivery
Platform
Mobile
Operations & Business Support Systems
Integration & Operations
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel
Any Content
Every Terminal, Everywhere
Each User
User-Centric Broadband Architecture
Mastery of Key Technologies
Alcatel End-to-End Integrator
Business
environment
IP-PBX:
Europe #1
Contact centers:
WW #1
Voice infra:
within top 4
Wireline access
WW #1
Service Aware Edge & Data
Aware Optics
Optics: WW #1
Wireless transmission:
WW #1
NB switching: WW #1
ATM/FR: #2
IP multiservice routers: leader
Service Delivery Platform
Extensive suite
Leading positions in rating,
Mobile Prepaid,
Video applications
Mobile access
Within top 4 GSM,
fastest growing
Evolium JV vith Fujitsu:
largest 3G installed base
User-Centric Broadband: Alcatel’s vision for growth
Wireless access
Telecom satellite:
WW #1
LMDS: WW #1
All rights reserved © 2004, Alcatel
Services
Professional services:
within top 3
Network outsourcing:
WW #1
France Telecom
Alcatel is FT’s partner
for IMS-enabled services
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel
Alcatel and BT
Alcatel is BT’s partner for:
21CN
Project BluePhone
BT Communicator
Customer
Experience
Speed to 21CN
Market
Cost
Transformation
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel
Alcatel and SBC
Alcatel is SBC’s partner
for Project Lightspeed
Oct. 21st, 2004
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel
Alcatel Broaden Your Life
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel
www.alcatel.com
User-Centric Broadband: Alcatel’s vision for growth
All rights reserved © 2004, Alcatel