MWC Shanghai 2015: Emerging Markets Step Toward Nexterday

By Joakim Knutar, Vice President, North Asia Region, Comptel

The Comptel team was excited to share our vision for the future of telecommunications with the 40,000 attendees who turned up for this year’s Mobile World Congress Shanghai. This year’s event was abuzz with talk of innovations in mobile and digital technology.

Asian markets are rapidly adopting mobile and digital services, and there’s a chance to grow these markets further. Idea Cellular managing director Himanshu Kapania spoke of the opportunity to connect more of India’s 1 billion mobile voice users to the Internet. Only about a quarter of the country’s telecom subscribers have Internet access, but new initiatives to extend connectivity have contributed to 37-percent annual growth in the number of Indian Internet users.

China is experiencing a similar trend with 4G. Since December 2013, China Mobile has added 190 million 4G connections, according to its executive vice president, Li Huidi. As a result, 21 percent of the company’s mobile user base runs on 4G, and that population of subscribers delivers 3.8 times more average revenue per user (ARPU) than non-data users.

Overall, 46 percent of the nearly 4 billion Asia-Pacific consumers are mobile subscribers, of which 62 percent – about 1.3 billion individuals – are also mobile broadband subscribers.

As mobile and digital penetration continues to grow in these markets, operators in the region should not only innovate to win over customers but also do everything in their power to maximise even the smallest digital moment. As we’ve written about in our book, Operation Nexterday, operators will be able to drive more revenue by giving customers exactly the service they need at exactly the right moment and on the right platform.

Data is the key to finding and enhancing these digital moments, but only if it can offer immediate visibility, deliver context in-stream and enable instant action. That’s Intelligent Fast Data at work.

Certain operators in emerging markets are leveraging consumers’ data to drive revenue by overcoming cultural or regional obstacles that limit information access. Tadashi Onodera, chairman of KDDI, explained that his company has been able to address cultural privacy concerns through a direct billing approach. Because nearly all Japanese mobile customers are on a postpaid agreement that requires a national ID and credit card, they trust their operator with their data, according to Onodera. As a result, KDDI has access to data it can use to learn about customers, deliver unique services and add value.

We’ve seen direct carrier billing work successfully in places like Indonesia, where Indosat has been able to deliver a modern and convenient mobile purchasing experience to its customers, while simultaneously unlocking new monetisation opportunities. It’s a powerful example of how digital and communications services providers are thinking creatively to overcome obstacles, move past current ways of doing business and embrace Nexterday.

Having spent time with the heavy hitters in Shanghai, we’re more confident than ever that the future of mobile and digital services in APAC and beyond will depend on this type of creativity and focus.

In November, the antiseminar you’ve been waiting for hits Helsinki. Nexterday North will bring together the brightest minds in digital and communications services to think ahead to examine our collective blindspot, think again to challenge the status quo and think beyond to find new digital disruptions. Register now to reserve your exclusive spot.

A Recap of LOOP APAC14

Last week at LOOP APAC14,  communications service providers came together to discuss the future of the telecommunications industry and how new tools and developments can help spur innovation and disruption. The team at Comptel – along with representatives from Salesforce.com, Tech Mahindra and GE Smallworld, offered insights into what CSPs can expect next year and how new kinds of technologies will help revolutionise networks and customer experience.

We put together a collection of tweets to help show the highlights of the conference:

How Telcos are Planning to Revolutionise Customer Experience in 2015

Prior to our LOOP14 APAC conference, taking place this week in Kuala Lumpur, Malaysia, we had the chance to survey a number of our communications service provider (CSP) attendees about what’s on the horizon for telecommunications in 2015. Last year, there was growing awareness about how marketing and sales can be improved through Big Data initiatives, but only 16 percent of CSPs surveyed said that they had launched a Big Data project.

This year, there’s a big focus on how to ensure that every bit of data is collected, processed and put to use for the business, most of all, to build new kinds of consumer experiences. Every CSP surveyed recognised that the consumer buying experience will play a greater role in CSPs’ service creation and delivery processes – so in order to improve time-to-market and innovate and target personalised service campaigns in real time, CSPs first have to leverage the organisation’s data.

How are they planning to do it?

Processing Every Bit of Data

As we described in our recent blog post about the need for a data refinery, CSPs are increasingly focusing on ways to make the most out of all of the network, subscriber and other data flowing into their IT systems. Unsurprisingly, our survey revealed that one big focus in the APAC region is Big Data and analytics.

A vast majority (82 percent) of respondents said that Big Data and analytics play a “moderate” or “large role in company operations. Big Data analytics has become a cornerstone in personalising the experience for consumers – 55 percent of respondents said that they were planning to use Big Data analytics to improve product and service sales with targeted marketing.

What’s keeping CSPs from doing it? More than a third (36 percent) of respondents said that they only have a limited internal understanding of how to use Big Data analytics.

This all links back to the broader effect to improve the customer experience. When respondents were asked about consumer journeys:

• 100 percent said that interacting with customers in the right way at the right time and in the right context will help create a frictionless experience.
• 100 percent said that their organisation is consistently working towards improving customers’ journeys.
• 91 percent said that their business depends on the ability to know and understand customers at an individual level
• 82 percent said that customer service is more important than the latest handset or network technology for customer retention.
• 73 percent said that Big Data analytics are vital for prompting responses to customers at ‘moments of truth’ in their journeys.

Big Data and the Customer Journey

CSPs are thinking about breaking out of “telecommunications” as we know it. Nearly two-thirds (64 percent) of respondents said that their businesses were becoming diversified service providers by moving into adjacent markets through expansion, acquisitions, joint ventures and equity investments.

The sample size for the LOOP14 APAC conference was by no means the size of the worldwide telecommunications industry, but the findings still offer valuable insight for CSPs. It’s clear the telecommunications industry is heading in a direction where the customer takes front and centre of all initiatives. The real question becomes whether or not CSPs have the knowledge and technology to leverage the data they need to do it.

Want to see the full findings of our LOOP14 APAC Survey? Download the full report.

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Big Data and Analytics are on APAC Telcos’ Minds

Comptel recently hosted a focus group in Bangkok, Thailand, with attendees from fourteen communications service providers (CSPs) across ten different APAC countries. A multitude of topics were covered during the sessions, but the main thing on everyone’s mind seemed to be Big Data and analytics.

We surveyed attendees in the weeks leading up to our event—and the results seemed to reflect the same trends. With twenty-five respondents, 79 percent of which came from the Southeast Asia region, we got a sense of the issues facing CSPs today. We asked what IT, marketing and R&D leaders were currently focusing on, and one way or the other, it always seemed to come back to Big Data and analytics.

Here’s what our survey revealed:

1. Nearly three-quarters of CSPs say Big Data and analytics will have a big impact on their organizations

Whether CSPs are trying to better target customers or increase operational efficiency, it’s understood that they could benefit from Big Data. Although 71 percent agreed that Big Data and analytics will have a significant effect on their businesses going forward, only 58 percent said that Big Data was being used effectively.

Many CSPs could be in the same place as other businesses – data is being collected, but not being properly leveraged. New systems, processes and strategies need to be considered to truly turn all of that information into intelligence and the right actions. Only 16 percent of CSPs said that they had begun a Big Data initiative.

2. Almost nine out of ten CSPs believe integrating IT with marketing results in richer customer engagement

As we’ve said before, the future of marketing is networks, and the future of networks is marketing. Marketing campaigns at CSPs are becoming increasingly dependent on analytics and the technology that IT controls. At the same time, there’s more pressure on IT to become aligned with the broader goals of the business.

By breaking through the silos between those teams, CSPs can radically improve customer service, increase efficiency, ensure smart operations and realise many other business benefits.

3. 54 percent of CSPs say that their organization is undergoing changes

The landscape for CSPs is shifting, so it’s no surprise that more than half of survey respondents said that their businesses were undergoing some kind of change. A third said that their organizations had launched LTE services, many within the past six months, while 46 percent said that they were in the process of consolidating their OSS/BSS systems.

The ongoing changes may signal a search for more efficiency. Just 58 percent of respondents said that their networks and operations were efficient. A third said that the processes were “somewhat” efficient, and 8 percent said they were “inefficient.”

The Promise of Big Data and Analytics

One way or another, these three trends showcase the need for CSPs to find the right platforms to streamline their operations and bring marketing and IT together to reach the next level. Big Data and analytics are the key to this kind of success, but only if all of the pieces are in place and effectively working together.

Kiva Loan Helped Angelina to Pay for Gardening Materials Needed in Her Business

We have shared the stories about Rosario in Peru and  Williams in Uganda and how working through Kiva.org is improving their lives. Our third story tells about Angelina who lives in Silang, in Philippines where she and her family have a farm. Silang with over 200 000 inhabitants is approximately 45 kilometres  south of Manila. With the continuous expansion of Manila, the municipality is now part of the Manila’s conurbation. The primary crops grown in the area are coconut, coffee, corn, banana, pineapple, and tree crops like mango, guava, and avocado. Fertile soils and abundant water sources make Silang suitable not only for common commercial crops but also for high value and exotic crops production. Agricultural products are marketed to Manila and neighboring towns.

A loan of USD 750 by Kiva helped Angelina to pay for gardening materials needed in her business like wire and baskets, and supplies such as seed and fertilizer. Profits from her business will  help her to sustain their daily needs and educational expenses of her children. She hopes to have a peaceful life and dreams to give her family a good future.

We invite you to take part in Comptel’s team and help us provide financial services to low-income individuals or to those who do not have access to typical banking services.

By today Angelina has already paid 16% of her loan.

Around the World

Microsperience…
First Touch, Last Touch, Every Touch
Analyst Teresa Cottam explains why every interaction that takes place between a communications service provider (CSP) and a customer is important. The CSP often perceives the first touch, or first customer engagement to be a sales transaction where it signs up a customer to receive a service. However, customers believe that their relationship with a CSP doesn’t just begin with a simple sale—it takes a longer period of time to cultivate.

Teresa uses a personal experience with an old broadband operator to explain how CSPs should build better relationships with customers. After mishandling her service transfer process, the operator made her wait 30 minutes on the phone, and a support assistant accused her of signing up for the wrong package and dismissed her concerns.

Teresa says this example emphasises issues that currently exist in the market, and proves that CSPs need the ability to analyse data in real time to get a better understanding of and retain their customers. CSPs need to focus on not just the first touch but any and every touch in order to build loyalty. She also notes that in today’s competitive market, even forgetting that ex-customers could be future customers is a missed revenue opportunity and could hinder CSPs’ success.

telecomasia.net…
APAC Telcos Concentrate on Quality
Joseph Waring gives an overview of a recent Telecom Asia-Ovum survey of telecom executives in 19 countries across Asia Pacific. The results revealed quality of service (QoS) to be the key distinguishing feature for operators in the region.

Interestingly, the survey also found that fewer respondents (38% compared to 54% two years ago) viewed unlimited data rates as the most effective way to charge for mobile broadband services. But Ovum analysts believe that the percentage of people who agree with this method is still too high, and urges operators to steer away from flat rates, which can over-burden networks and negatively impact QoS.

Additionally, survey respondents indicated that they believe video will be the key driver of continued mobile broadband traffic growth in Asia Pacific. Like Comptel, Ovum believes that operators must look to balancing the management of resources like bandwidth, while controlling customers’ data services, in order to maximise the customer experience and monetise their offerings.

CommsMEA…
Right Path for Roaming?
Industry experts wonder if recent Gulf Cooperation Council (GCC) regulations could potentially cause more harm than good. These called for telecom operators to slash mobile phone roaming charges to consumers by at least 50 percent beginning 1 February in a bid to bring costs in line with those in Europe. Roaming revenues account for a significant proportion of overall profits for many CSPs, and a sudden forced reduction in tariffs may, unfortunately, lead to price increases, less investment in other areas and other unintended consequences.

But, there is evidence that Gulf operators are already moving in the right direction towards decreasing roaming tariffs without the regulations. Peter Lyons, director of spectrum policy, Africa & Middle East for the GSM Association (GSMA), says that operators responding to the competition are driving roaming costs down and that they are making an effort to increase the transparency of roaming rates. On the other hand, some point out that regulation is needed to protect against distortions in the market that can be created by dominant players. What do you think is the right path for the Gulf in terms of roaming?

Around the World

Informa Telecoms and Media Blog…
12 Top OSS/BSS Trends for 2012
Analyst Peter Dykes highlights an exciting outlook for the OSS/BSS sector in 2012. He predicts that the growing requirement for more complex rating and billing functionality will open up opportunities for vendors, and says that improvements in this area are necessary for operators embracing LTE. For 2012, he also believes that in both mature and emerging markets, there will be a greater focus on areas such as customer experience, business intelligence and innovation in handling network congestion.

The predictions Comptel believe are particularly interesting include the rise in demand for OSS tailored to M2M services, which Steve Hateley recently wrote about, and the growth of policy-based online charging (OLC) as operators seek to offer more innovative services.  What 2012 prediction do you think is most surprising?

Telecomasia.net…
Five New Challenges for APAC Telecoms in 2012
Ovum analyst David Kennedy believes that tightening margins and streamlining business processes will be the main theme for the Asia-Pacific telecoms industry, as overall growth in the mobile market slows and competition for customers increases. David believes these five trends will drive the market forward in the region in 2012:

• The push for cost optimisation and efficiency – this will grow in importance due to increasing competition and margin pressures.
• The importance of customer service – operators will work to stay ahead of the competition with promotions, marketing, better network convergence/reliability, etc.
• The future of smart devices and mobile app ecosystems – successful devices will need to integrate applications, content and services into the platform.
• Network data management importance– as data surges, operators are being forced to alleviate network congestion and will roll out a combination of solutions including more LTE networks and Wi-Fi offloading.
• Bundling for customer retention – more bundling is expected to emerge for mobile-only and second-tier operators.

Do you agree that these trends will define the APAC telecoms industry in 2012 and ensure continued profitability and improved efficiency?

Telecoms.com…
Mobile Network Predictions for 2012
In 2012, the mobile market will see two key trends emerge: technologies critical to maintaining a high user experience and initiatives providing additional profit growth opportunities while reducing costs.  In an effort to improve the customer experience and increase revenues, operators are looking to invest in network sharing and traffic optimisation.

Another major issue in 2012 will be coverage for LTE networks, most notably in markets where operators only have access to high frequency spectrum. LTE femtocells are predicted to boom in popularity, which will benefit residential, business and public hotspots.  However, deployment of LTE small cells for capacity improvements is not expected to be widespread in 2012.

Additionally, investing in traffic optimisation for video is a hot topic, with content providers, CDNs and other vendors, and mobile operators debating various ways to deliver mobile content efficiently. We’re looking forward to seeing mobile innovations in action at the upcoming London Olympics, where operators are expected to showcase the successes of their technologies.