Please email me "saghaeian [at] gmail.com" for any research, consulting and training request on Positioning as a Digital Lifestyle Solution Provider. This presentation includes topics such as: Service Provider Opportunities & Challenges in the New Digital World Matching the Customers’ Demands end-to-end ICT service provision Digital convergence is driving overlaps How can Operators become Digital Lifestyle Solution Providers (DLSP)? Steps to becoming a Digital Lifestyle Solution Provider How to Build a Successful Digital Services Business Essentials of Being a Digital Lifestyle Player

1. Operators’ Positioning as a
Digital Lifestyle Solution Provider
By ALI Saghaeian
Chief Analyst & Consultant
Telecoms, IT, and Media
Saghaeian [at] gmail.com

2. Objectives
• Understanding the Service
Providers' Opportunities &
Challenges in the New Digital
World
• How to have an integrated ICT
proposition
• How to develop end-to-end ICT
offering
• Learning how to become Digital
Lifestyle Solution Providers
• How to Build a Successful Digital
Services Business
• Brainstorming on
how to make an
operator a Digital
Lifestyle Solution
Provider
Exercise
Saghaeian [at] gmail.com

3. Agenda
• Service Provider Opportunities & Challenges in the New
Digital World
• Matching the Customers’ Demands
• end-to-end ICT service provision
• Digital convergence is driving overlaps
• How can Operators become Digital Lifestyle Solution
Providers (DLSP)?
• Steps to becoming a Digital Lifestyle Solution Provider
• How to Build a Successful Digital Services Business
• Essentials of Being a Digital Lifestyle Player
Saghaeian [at] gmail.com

4. The New Digital World represents both Opportunities &
Challenges for the Service Provider
Saghaeian [at] gmail.com

5. Matching the Customers’ Demands
Examples to represent variety & variability
Saghaeian [at] gmail.com

6. Simplify
supplier
relationships
Cut
operational
costs
Increased
need for
quality and
reliability
The demand side appetite for end-to-end ICT service
provision is driven by four main factors
• Companies are demanding end-to-end managed ICT services
as converged technologies are increasing the complexity of
supplier relationships
• 47% of European companies cited as key driver in
purchasing decision
• Increasing demand for BPO in attempts to cut cost for
- designing, installing and maintaining corporate networks
- non core processes (e.g. billing, administration, HR, …)
• 51% of Euro. Enterprises cited cost cutting as a key driver
• Increasingly recognised that managed services providers
have more experience than in house teams providing
improved quality and reliability
Note:
Source:
Survey results cited based on Forrester interviews with 1003 technology managers in North American and European enterprises
Forrester ‘The State of Enterprise Managed Telecom Services adoption’ Oct 07, Yankee, EITO
Increased ICT
complexity
• Challenges associated with integrating and managing
increasing number of business communication technologies
are prompting organisations to outsource ICT management
One stop solution
for end to end ICT
service
Saghaeian [at] gmail.com

7. Digital convergence is driving overlaps between previously
distinct industries creating a complex new sector,
addressable by Telcos
•Non-Telco players are
entering the Telco
space challenging
traditional business
models
•New addressable
markets being created
due to overlap created
by digital convergence
Telecommunications
ICT Consumer Electronics
Media
Saghaeian [at] gmail.com

8. 8
Brand
Customer
base
reach
Field
presence
Telco players are well positioned to integrated ICT
proposition as they can rely on multiple existing assets
• The strength of a “trusted” brand is
a guarantee of service assurance in
an ecosystem with ever increasingly
complexity
• Wide access to customer base is
strong lever for cross-selling / up-
selling (scalability as KSF)
• Strong existing push channel / sales
force already in place
Retail
Network
• Network ownership provides
competitive advantage to play
pivotal role in the networked home /
business
Call
centre
Content
mgmt.
expertise
Technical
capability
• Existing call-centers operations
enable extension of customer
service offering and push activity to
new opportunity areas
• Telcos and their media arms are
developing content management
expertise
• In-house technology and digital
marketing capabilities to develop
new services / scout IT or system
integrator partnerships
• Triple / Quad play experience can
be leveraged to create new bundles
and package appropriate revenue
models
Offer
structuring
capabilities
Saghaeian [at] gmail.com

9. Convergence between the IT and Telco sectors and end-to-end ICT
service is breaking down the divide of the traditional value chain
Voice and data Connectivity
Network
services
Infrastructure
services
Application
services
Traditional
communication services
and internet access
• Definition and
implementation of
data transport
solutions
- Traditional
- Innovative (e.g.
Virtual Private
Network)
• Analysis, configuration,
monitoring and
management of the
customers network
infrastructure
(LAN,WAN)
• services: capacity on
proprietary servers
(hosting) or data centre
space for the clients
servers (housing)
• HW and OS
management (traditional
and Web based)
• IT infrastructure
management
- Security
- Disaster recovery and
business continuity
- Storage and back up
- Desktop Mgmt
• Remote management
of standard
applications
• Application
maintenance
• Software as a Service
(SaaS)
• System Integration
• Consulting
Business
Process
Outsourcing
(BPO)
• Externalized
management of
company processes
(e.g. Billing,
Administration. HR,…)
ICT value chain
Infrastructure based Services People based Services
Telco operators IT operators
ICT ServicesCommunication Services
Current market pressures
Saghaeian [at] gmail.com

10. Telco
operator
IT provider
Traditional
ICT services
market
Infrastructure
services
Application
services
Voice
and data
Connectivity
Network
services
Business
Process
Outsourcing
(BPO)
•IT providers acting as the main contractor
-Partner with telco operators (as sub-contractors)
to guarantee infrastructure based services
(connectivity, network platforms, data centres, …)
Evolved ICT
services
market
•Integrated IT and telco offering
-Provides the client with end-to-end ICT solutions
-Strong focus on converged network offerings e.g.
IP telephony, managed networks, mobile
connectivity
-Primarily achieved through JV or acquisition (e.g.
FT acquired Equant rebranded OBS)
Telco
operator
IT provider
1 2 3 4
In this new environment Telco operators are developing end-
to-end ICT offering
Saghaeian [at] gmail.com

11. How can Operators become Digital Lifestyle Solution
Providers (DLSP)?
• Customer vs. User
• Save the customer relationship
• Use privacy/security as competitive advantage
• Separate the 4th curve organization from the mothership
• Change the DNA
• Portfolio management – fail often and cheap. Embrace Beta launch
• Collaboration
• Standards vs. Proprietary
• Build Advocates
To be an effective and a long-term competitor on the 4th curve, operators have
to become the OTT players themselves or have close collaboration with them.
This requires innovation, financial muscles, and a ruthless mindset to capture
its share from the value chain.
Saghaeian [at] gmail.com

12. Customer vs. User
 The first step is appreciating that consumers of the 4th curve are not only going to be
the operator’s customers today but also users across all operators and in all countries.
 Instead of offering a messaging service to an enterprise customer, the operator can
offer a cross-carrier service and compete at the OTT scale.
Save the customer relationship
 It is important for the operator to preserve their customer relationship through VAS
and OTT services.
 If they can’t or don’t want to develop their OTT solutions, they should partner with
the players to offer branded solutions or have joint offerings that makes the customer
develop and maintain brand loyalty with the operator.
Use privacy/security as competitive advantage
 If the mobile industry isn’t proactive in addressing consumer privacy head-on from a
technical, business, education and compliance perspective, they will lose great
opportunities.
 Mobile operators are placed very well in the ecosystem to broker privacy and security
between the user and the app ecosystem as a distinct competitive advantage.
Steps to becoming a Digital Lifestyle Solution Provider (1/4)
Saghaeian [at] gmail.com

13. Separate the 4th curve organization from the mothership
 Smart organizations separate 4th curve organization from the mothership and
hire as many Internet employees as possible – the ones that will go work for
Google or Facebook.
 The group should be held accountable to results perhaps to even a higher
standard and providing business metrics focused on service innovation, new
customer acquisition and growth.
Change the DNA
 Some like Telefonica, Deutsche Telekom, Orange, and AT&T are creating new
divisions and groups to address the OTT threat and opportunity. But there is
significant resistance from the legacy organizations.
 They should work with the OEMs to implement and execute on the strategy.
Apple with iMessage is already doing it without the user even realizing it
Steps to becoming a Digital Lifestyle Solution Provider (2/4)
Saghaeian [at] gmail.com

14. Portfolio management – fail often and cheap. Embrace Beta launch
 The 4th curve business model doesn’t require everything to be perfected at
launch but rather its functionality and roadmap iterated based on user
feedback.
 Location, search, consumer cloud services, advertising, and others are classic
examples where operators had the expertise and the technology much before
the Internet players came to the scene, yet, never paid much attention.
 Operators must act like an experienced portfolio manager who can weigh the
risks and have the perseverance to see the vision through fruition.
Collaboration
 There are some good case studies in Portugal where operators are
collaborating on an advertising platform or in Czech Republic where operators
are working towards a common payments platform; however, operators have
largely competed with each other.
 Success on the 4th curve requires much tighter collaboration between them
than ever before. The reason is simple - scale.
 For many of the verticals on the 4th curve, the only way operators can make a
meaningful dent would be to go past their legacy competitive concerns.
Steps to becoming a Digital Lifestyle Solution Provider (3/4)
Saghaeian [at] gmail.com

15. Standards vs. Proprietary
 Standards have served our industry well. However, in the apps world,
standards can slow you down. Software solutions by nature are proprietary.
There is a reason Skype doesn’t interoperate with Facetime and Google
Search and Bing don’t talk to each other.
 Bigger operators have the scale to launch proprietary solutions while smaller
ones rely on standardized approaches for their customers to benefit from the
same advances.
Build Advocates
 Advocacy drives output that is measured in sales. Advocacy helps decrease
acquisition cost and increases life time value of the customer.
 Building loyalty is critical to the overall health of future revenues. Operators
should understand advocacy dynamics and launch new programs that instill
brand loyalty.
Steps to becoming a Digital Lifestyle Solution Provider (4/4)
Saghaeian [at] gmail.com

16. How to Build a Successful Digital Services Business
Saghaeian [at] gmail.com

17. Essentials of Being a Digital Lifestyle Player
Become a Digital Lifestyle Player!
Saghaeian [at] gmail.com

18. Any Questions?
18
ALI Saghaeian | saghaeian@gmail.com