Mobile and Internet Convergence: a business perspective

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Mobile and Internet Convergence a business
perspective

• Wichian Mektrakarn
• President
• Advanced Info Service PLC.
• Aug 14, 2008

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2
Outline

• Technology Landscape Trends
• Industry Convergence

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Technology Landscape Trends
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Technology Landscape

• Device
• Network
• Application Services

Digital TV
Home Appliance
Personal Computer
Mobile Device
Contactless Device
GSM / GPRS / EDGE / 3G
ADSL / Broadband
WLAN
Communication
Contents
Business
Games
Commerce
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Global Trends

• Higher Speed of Telecommunication Network
• Both Wireline and Wireless communication network
  are thousand time faster than few year ago.
  Multiple standards had been introduced to serve
  various regional development.
• Internet Protocol (IP) became a standard for
  transferring data.
• Device Advancement
• Multiple functions/multi purpose and support
  communication in many type of network seamlessly.
• Convergence in Services
• Telecommunication, internet, IT, media contents
  service and its technology are converged and
  delivered over IP and data communications

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Network Technology Options Today
ADSL (Asymmetric DSL)
Copper Cable e.g Ethernet
SDSL/HDSL (Symmetric/High Bit Rate
DSL)
Copper (xDSL)
VDSL (Very
High Bit Rate DSL)
Cable Modem
Wireline
Fiber Cable
FITL (Fibre
in the Loop)
FTTH/O (Fibre to
the Home)
Proximity Communication
Access Network Technology
Infrared
Bluetooth
GSM/EDGE
Wireless LAN
Cellular
CDMA
Wireless
Terrestrial Broadcasting
W-CDMA
Satellite
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Network Technology Trend
Faster Speed 3G HSPA reaching
10Mbps Ubiquitous Depending on location, various
communication network will be available for
seamless access (e.g. a single device can
seamlessly access to WiFi, GPRS/EDGE, 3G and
HSPA)
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Global Development Wireless Technology
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Communication Device Trend

• Multiple Network Support
• Telecommunication devices trends to support
  multiple network standards
• (e.g. WiFi, GSM 900/1800/1900, GPRS, WLAN, and
  WCDMA 900, 1800, 2100)
• Multiple Functions
• More than communication device but music, game,
  TV, data storage, navigators, camera and etc

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Industry Convergence
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Global TrendInternet Telco Convergence
Powerful forces are reshaping the Telecoms
landscape - change is becoming more rapid and
more complex
Regulation Price control, Competition,
Infrastructure Sharing
Disruptive Technology The Internet, IP/VoIP, P2P
file-sharing
Convergence Devices, Networks, New services
Disaggregation Incumbents splitting up,
Traditional Telco value chains being
disaggregated
Consolidation Alt-nets, Cable Franchisees,
Resellers, mergers
Demand Lack of new Killer Apps, Increased
sophistication of consumer demand and
expectations, Increased diversity
Competition Low barriers to entry, New licenses,
Virtual Operators
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Global TrendConvergence in Different Sectors
IT
Telecoms
Media/content
Consumer electronics
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The Internet Business model history
Content
Applications
Access
2008
2002
1997
1992
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Broadband business models so far
Content and social networks are now the bait to
attract an audience with revenues coming
primarily from micro-segment advertising
Note these charts are illustrative only they
do not show actual data
2008
1992
2002
1997
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Example of Business ConvergenceNokia

• Nokia - leveraging its phone customer base to
  move into web-based consumer services
• Music store, share applications, maps, games,
  others services on a portal called Ovi
• This is not Nokias first foray into services,
  but it is the most ambitious.
• Risking move? Threatening relationships with
  operators?
• Some operators believe this is there turf
  owning customer relationship
• But who understands customers best? Whos brand
  is strongest?
• Win-Win scenarios - revenue share? partnership?

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Example of Business ConvergenceYahoo! Go

• Range of optimized for mobile web-based content
  and services
• User-initiated download, OEM preload, operator
  preload
• Free to use (apart from data charges),
  advertising supported,
• mobile-specific search, photo sharing (Flickr),
  web mail (Yahoo! Mail), maps and
  location-specific information, various news and
  information, web access, And other competitors
  products .. even Google

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Convergence in Short

• Evolution of Internet Business Model
• Free content and self-generated content
  supporting
• by advertising business model push internet
  player to go
• across basic WWW internet access to basically
  every related industry especially mobile industry
• Result of Disruptive Technology (IP)
• IP enables ability to run application/contents
• in various communication mediums. The lines,
  separating business sector, become blur e.g.
• internet website can give VoIP services
• Apple make i-phone
• Nokia start mobile advertising Internet
  Business

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Thailand Mobile Market Forward Looking (Reported
Subscriber)
99
64.0
60m
25
82
55m
51.6
50m
25
45m
64
40.0
40m
32
35m
49
42
30.3
30m
Mobile internet user may exceed fixed internet
27.2
11
34
25m
26
21.6
27
20m
23
17.5
15m
130
12
10m
7.6
5
5m
124
3.4
2001
2000
2002
2006
2003
2004
2005
2007
2008F
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ThailandCurrent Customer Behavior toward VAS
Mostly use GPRS (not for D/L)
Heavily use GPRS and MMS Incl. S/W D/L and SMS
application, Audiotxt, mobile TV and etc
Use mix services e.g. SMS, vote, quiz, game,
Infotainment, Audiotxt, and some D/L (some start
to use GPRS)
Use Ringback Tone, RT D/L
Use SMS to communicate
Use voice call only
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Thailand Current Customer Behavior towards VAS
Advance data services are niche

Without awareness, these customer are using
mobile internet to fulfill their need
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Local ExampleReplication of Internet on Mobile
Pushing more for Dynamic Content (Mobile Internet
WAP Portal)
More than 4 million customers using GPRS to
transfer information monthly

• Chat Board
• more than 100k sub/month

• Free Downloads

• Live TV
• 26 Live Channels

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Local ExampleEnhancement of Mobile Internet on
Mobile
Mostly are free services and seem to grow in such
direction (1 URL requested are Hi5)
Better Experience with Mobile Internet
900 (incl. MAP CHAT)
Real-time Traffic MAP
And varieties of links.
Integrated MSN Chat
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In Summary

• Disruptive IP technology made boundary between
  industries blurs and some industry are very much
  converged especially internet and telecom
• Future competition are definitely pushed through
  mobile due to its penetration
• The new ecosystem and sustainable business model
  is remain to be seen. Maybe the one who dominate
  contents business are customers themself