Transcript Title of Presentation Second Line of Title Subheadings (if needed)

It’s All about the Killer User Experience
Olivier Frelot
Vice President – Professional Services
Alcatel-Lucent
Global Market Trends
End users expectations have changed drastically …
Audio
11%
Control has shifted to the end-users…
Games,
SW, etc
27%
 Always-on, freedom
Video
62%
 Mobility, simplicity & productivity
 Personal content sharing, social and business networking
Mix of file formats by volume of traffic
generated over 4 main P2P networks
 Seamless and personalized service experience
 High-speed connection to the contents from their preferred devices
 Network Technology Agnostic (wirless, wireline …)
Always connected to the content and people I care about
Killer User Experience | Sept. 2009
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Revenue Trends of Telco Service Providers, TV Broadcasters and Over-the-Top
Providers
Telco Service Providers
(2)
 Single digit growth rate of worldwide service provider
revenue
 Voice Revenue Declining
 Service bundling alone is not sustainable
ILEC Annual Voice Telephony
Revenue Forecast 2006-2011
(US$ in Thousands)
 Marginalization of network assets with “over-the-top”
applications
Traditional TV Broadcast
 Advertising Revenue Saturating
Over-the-top-providers
 Google’s growth rate was 30% in 2007 (90% in 2005)(3)
$ Bill.
 Google generates 98% of its revenues from advertising
 Apple’s revenue in 1Q08: $9.6bn, a plus of 35% YoY(4)
 iPod + iTunes = 50% of total revenue
 Skype
 Skype-to-Skype (free) international traffic = 4.4% of total
(1) Ovum, 2007
Killer User Experience | Sept. 2009
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(2) Infonetics, 2007
(3) IDC, 2007
(4) ALU CS, 2008
Devices are becoming smarter for sophisticated user experience
Entertainment
Photo Albums
Store & Transfer
Game consoles,
MP3/Video
Players
Security
& Care
Media Server
Communications
Telecare
Personal
Captors
Security/
Surveillance
Home Control
Child
safety
Power Control of
Appliances,
Lighting,
Heating, Air
conditioning etc
Smart Metering
Power, Water, Gas Meters
Devices are Evolving to be Multi-Service and IP Capable
Killer User Experience | Sept. 2009
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Operator are uniquely positioned for value migration
Subscriber Knowledge
2-way communication to
Enhance Interactivity
Enhanced Productivity
(Open Presence)
Dynamic Subscriber Information
(Location)
Rating and Billing Capabilities
Services providers unique position combining the best of both worlds
Killer User Experience | Sept. 2009
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Personalized user experience Example – Targeted advertisements
1
Mobile
Internet GW
IN/Billing
2
Preferences
Usage
Segment
HLR/HSS
4
Ad Selection/
Campaign
Management
Engine
Content
Management/
Ad Insertion
Engine
Behavior
CRM
Data Mining
SMS/MMS
Predictive
Analytics
Content
Location –
Presence Query
Campaign
Library
USSD
WAP
TV
Event Correlation
Transcoding
Target campaigns
Killer User Experience | Sept. 2009
SMSC/
MMSC
Email
Statistics
Location
5
Personalization
Engine
Demographics
Presence
3
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Alcatel-Lucent: Global End-To-End Multi-vendor
integration
BSS
Service Management Service
activation, impact analysis
Network inventory, Fault & Performance
EML: One per sub-domain
xDSL,
Wimax, 3G,
FTTH, PLC,
BPL
WDM, SDH,
PDH, MWV,
IP-MPLS
MICROSOFT
End-User Devices
Killer User Experience | Sept. 2009
Access
Backbone & IP
connectivity
Session Control &
Network applications
& Enablers
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Content & Internet
application providers
Key Takeaways – User-Centric Communication
Changing the way the world communicates is about:
User-centric experience
Quality and Security
Productivity Increase
Participation
Anywhere, Anytime, Any Device
Entertaining
Personal
Value for the End-user
Value Migration and Monetization of
assets
Rapid blended services creation and deployment
Leverage Data Growth for new services
Subscriber data for new Content-rich services
New Business Models for revenue
Value for the Provider
Killer User Experience | Sept. 2009
All Rights Reserved © Alcatel-Lucent 2009
Back Up
Killer User Experience | Sept. 2009
All Rights Reserved © Alcatel-Lucent 2009
Exploit Assets to Monetize communities, content and brands …
Monetize Communities

 reduce churn: individuals
cannot easily move
 cross sell to communities
 target advertising
Exploit Your Assets
Monetize Content

 generate direct revenue from content
(users are willing to pay for content)

 attract subscribers through usergenerated content

 sell interactive content apps
 create attractive bundles


Turn TV and mobile to an bi-directional
interactive experience\
Fuel a wave of productive applications with
open presence information
Create a set of applications for targeted social
networking and adverting
Target campaigns based on profile, relevance
and context
Be the “one-stop-shop” for billing
Monetize Brands
 promote own brand to grow subscriber base
 generate revenue from advertising
 attract users with their favorite brands
Don’t Imitate the OTTS – Create you own offer based on unique assets
Killer User Experience | Sept. 2009
All Rights Reserved © Alcatel-Lucent 2009