Challenges and Opportunities in the Digital Service
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1 Challenges and Opportunities in the Digital Service non-proprietary/public information
2 Challenges Many OTTs provide voice and message services Voice call Video call File transfer Message Telecom revenue is falling down year by year, especially voice and message incomes Revenue cannibalization due to OTT service($m) Page 2
3 The Blue Sea ---- Local Digital Economy Digital economy such as E-Sales Topped $1 Trillion in This is achieved by multi local e-sale platform. Global Internet Economy Local Digital Economy The Internet economy will account for 5.3% in the G-20 countries in 2016, and will reach 4.2 trillion in the G-20 economies. Tmall vs Amazon Local Tangible Economy Page 3
4 Operator s Key Advantages Infrastructure Sales Channel& Service Difference of localization Trust Will of Change Infrastructure Network and facility Control. Wide Network Coverage. Highly Efficient Network Operation. Massive sales Channel. E2E service procedure support. Abundant Customer Resource. Experience in partnership management. Regional Difference. Capability of local resource integration. Understanding of Local Culture and Policy. Considered as the second most trustworthy company by customers, immediately after banks. Transform from provider to enabler. Strong Will to become core players in digital economy. Page 4
5 The Way to the Digital Service Consumer Enterprise City Digital Business Digital Enablement Cloud Capability Digitalized Open Cloud Open Platform Construction Innovation Business Model Provide Enable Capability, Enable product,enable Service Virtualization of all infrastructure Page 5
6 New and Growing Demands on Telco Operators IT Digital Economy Internet economy extends to the real economy Future Network Virtualization and cloud extends to network Driving Change in Telco IT Open collaboration cloud Online Entertainment Mobile Working Online Shopping Data Centers Fiber Optics FTTH Open Social Mobile Payment Digital Health Social Connecting Satellite GPON UMTS LT E Analytics Collaboration User-Focused Interactive Zero waiting Mobile On demand Page 6
7 IT Determines Potentials to deliver Digital Services Resource Customer Smart Connectivity Connectivity providers: wholesale and retail Digital Enablement Partner with verticals and OTT players Digital Telco Telco is the gateway to the digital life M2M Video SaaS PaaS Bandwidth+ Agriculture Education Entertainment Ecosystem based on cloud Government Health ebiz... Request for IT: smart, simple & efficient Request for IT: collaborated & convergent Request for IT: internetized & ecosystem Page 7
8 Cloud, Open and Internetized : Key for Digital Services Features Digital Open Cloud Benefits Capability Exposure and OTT Aggregation Digital Service / App (B2C, B2B, B2B2x ) Consumers Enterprises Organization Improve TTM via Pre-integration Digital Service Portfolio Integrators Content Prov. Service Prov. Developers Grow Business Space via Big Data Prediction Knowledge-driven Operation Digital Enabling Service Digital Open Cloud Environment Enhance Customer Experience via ICT Automation Online Business Enablement Virtualized Hardware and Software Openness and Aggregation Internetized BP On-Demand Resources Consulting Integration Management Partnership Advance Customer Intelligence via 360 Perception Boost Ecosystem via Value Creation Data Centers CT Network Page 8
9 DOCloud Supports Digital Service Transformation VAS Transformation Enterprise Cloud Communication Capability Exposure Cloud Resource Operation Digital Service Ecosystem Digital Open Cloud intouch Partnership Program Capability Exposure Digital Service Suite Context Information Capability On-boarding Real Time Communication Network Optimization Service Innovation On Demand Experience Analytics and Telco Orchestration Cloud Resource Cloud -formation Identity & Authentication Business Agility Data & Info Mgmt Data-driven Value Realization Charging & Billing Ecosystem to Facilitate Innovations Business Enablement Suite Cloud DC CT Network Page 9
10 Thank you Copyright 2013 Huawei Technologies Co., Ltd. All Rights Reserved. The information in this document may contain predictive statements including, without limitation, statements regarding the future financial and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice.
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