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How comms service providers can fight back

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The competitive landscape for communications service providers is shifting. With barriers to entry collapsing, a new class of digital competitor is leveraging scale to spend far more than traditional providers, says PETER SINCLAIR, MD for Communications, Media and Technology at Accenture.

For example, one of the leading Over The Top (OTT) providers of streaming video spends more than 20 times as much on customer recommendations as the average Pay TV provider, and has roughly five times more resources who describe their roles as primarily dedicated to customer experience and user interface (UI). These digital disruptors have established a new standard of simplicity for the customer experience and a rate of new feature introduction that incumbents in both communications and media are struggling to match.

In seeking to fight back, CSPs have so far found it difficult to convert incumbency into an advantage. Their traditional approaches to revenue growth are no longer sufficient – the commoditised core of their business is not generating adequate returns and their legacy operating as well as technology models are highly siloed, proving to be unscalable. Meanwhile, a “me too” approach to digital initiatives has been insufficient to offset an ongoing, progressive reduction in customer stickiness and loyalty.

The good news for CSPs is that they now can take advantage of the emergence of a new, exciting world of living services, starting with services to the home, that is creating new ecosystem value chains and new potential for profitable revenue growth. “Smart home” technology uptake has been slowly building over the last few years, with early-adopter consumers introducing elements such as connected security, smart thermostats and voice activation systems into their homes.

 

Now, however, such services are simply “aggregated,” rather than truly integrated. In other words, consumers are engaging with each home device and application separately, using one company for broadband/TV, another for connected security, and other providers for other services.

 

Accenture believes this tendency toward aggregation is unlikely to persist. Instead, consumer mass market uptake and ease of use for the smart home will be driven through integration: by bringing together everything consumers need – including traditionally operated delivered services, such as broadband and TV, as well as newer smart home services – via one platform, with fully integrated, highly personalised service.

 

The demand is certainly there: Accenture research found that 80 percent of consumers surveyed want a single provider for all their digital needs. Now, CSPs need to develop platform businesses and ecosystems that deliver everything their customers want together in one integrated offer. If CSPs can create the platform of choice for customers and third-party businesses alike, then the smart home opportunity will prove extremely fruitful.

 

CSPs’ knowledge of consumers offers significant advantages. The data available through the platform about consumer behaviour will enable CSPs to identify potential additional services, and to pass these vital insights onto service partners.

 

If they are to take advantage of the new hypergrowth markets that are available to them, CSPs who need to become platform-based digital service providers will need to:

  • Build exclusive control points on three levels: the devices, data, and the API gateway that enables the partner ecosystem, making possible a full portfolio of digital services.
  • Focus on building reach, versus Average Revenue Per User (ARPU), working across traditional boundaries and providing service subsidies, as needed. This means rethinking the traditional boundaries between “inside” and “outside” the home, and potentially departing from their legacy network footprint.
  • Use this reach, along with evolved platform capabilities, to onboard third-party service providers on an open API platform.
  • Trade reach for authentication to capitalise on their opportunities for monetising B2B data, insight and marketing capabilities.

In all of this, they will need to build their platform capabilities at web scale – global, efficient, and priced to compete – while at the same time, providing customer engagement that is truly differentiated. The offering starts with getting the in-home connectivity experience right, and migrating to the next-generation hub that will enable the smart home to take off. The key to success is for every part of this journey to be built from the customer perspective.

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Samsung S10 in lock-step with its rivals?

Tonight Samsung will kick off the next round in the smartphone wars with the S10 range, writes ARTHUR GOLDSTUCK.

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When Samsung unveils the new S10 smartphone at an event in San Francisco today, it will mark the beginning of the 2019 round of World War S. That stands for smartphone wars, although Samsung would like it to be all about the S.

Ever since the launch of the Samsung Galaxy S4 in 2013, Samsung has held both technology and thought leadership in the handset world. Back then, Apple’s iPhone 5 was the last device from the American manufacturer that could lay claim to being the best smartphone in the world. With the 2013 launch of the iPhone 5s, Apple entered an era of incremental improvement, playing catch-up, and succumbing to market trends driven by its competitors.

Six years later, Samsung is fighting off the same threat. Its Chinese rival, Huawei, suddenly wrested away leadership in the past year, with the P20 Pro and Mate 20 Pro regarded as at last equal to the Samsung Galaxy S9 Plus and Galaxy Note 9 – if not superior. Certainly, from a cost perspective, Huawei took the lead with its more competitive prices, and therefore more value for money.

Huawei also succeeded where Apple failed: introducing more economical versions of its flagship phones. The iPhone 5c, SE and XR have all been disappointments in the sales department, mainly because the price difference was not massive enough to attract lower-income users. In contrast, the Lite editions of the Huawei P9, P10 and P20 have been huge successes, especially in South Africa.

Today, for the first time in half a decade, Samsung goes into battle on a field laid out by its competitors. It is expected to launch the Galaxy S10 Plus, S10 and S10 e, with the latter being the Samsung answer to the strategy of the iPhone XR and Huawei P20 Lite.

Does this mean Samsung is now in lock-step with its rivals, focused on matching their strategies rather than running ahead of them?

It may seem that way, but Samsung has a few tricks up its electronic sleeve. For example, it is possible it will use the S10 launch to announce its coming range of foldable phones, expected to be called the Galaxy X, Galaxy F, Galaxy Fold or Galaxy Flex. It previewed the technology at a developer conference in San Francisco last November, and this will be the ideal moment to reclaim technology leadership by going into production with foldables – even if the S10 range itself does not shoot out the lights.

However, the S10 handsets will look very different to their predecessors. First, before switching on the phone, they will be notable by the introduction of what is being called the punch-hole display, which breaks away from the current trend of having a notch at the top of the phone to house front-facing cameras and speakers. Instead, the punch-hole is a single round cut-out that will contain the front camera. It is the key element of Samsung’s “Infinity O” display – the O represents the punchhole – which will be the first truly edge-to-edge display, on the sides and top.

The S10 range will use the new Samsung user interface, One UI, also unveiled at the developer conference. It replaces the previous “skin”, unimaginatively called the Samsung Experience, to introduce a strong new interface brand.

One UI went live on the Note 8 last month, giving us a foretaste, and giving Samsung a chance to iron out the bugs in the field. It is a less cluttered interface, addressing one of the biggest complaints about most manufacturer skins. Only Nokia and Google Pixel handsets offer pure Android in the local market, but One UI is Samsung’s best compromise yet.

It introduces a new interaction area, in the bottom half, reachable with the thumb, with a viewing area at the top, allowing the user to work one-handed on the bottom area while still having apps or related content visible above. One UI also improves gesture navigation – the phone picks up hand movements without being touched – and notification management.

The S10 range will be the first phones to feature the latest Qualcomm Snapdragon 855 chip, at least for the South African and American markets. That makes it 5G compatible, for when this next generation of mobile broadband becomes available in these markets.

They will also be the first phones to feature Wi-Fi 6, the next generation of the Wi-Fi mobile wireless standard. It will perform better in congested areas, and data transfer will be up to 40% faster than the previous generation.

The phones will be the first to use ultrasound for fingerprint detection. If Samsung gets it right, this will make it the fastest in-screen fingerprint sensor on the market, and allows for a little leeway if one pushes the finger down slightly outside the fingerprint reader surface. It does mean, however, that screen protectors will have to be redesigned to avoid blocking the detection.

Not enough firsts? There are a few more.

Most notably, it will be the first phone range to feature 1 Terabyte (TB) storage – that’s a thousand Gigabytes (GB) – at least for the top-of-the-range devices. Samsung last month announced that it would be the first manufacturer to make 1TB built-in onboard flash storage. Today, it will deploy this massive advantage as it once again weaponises its technology in the fight for smartphone domination.

  • Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter and Instagram on @art2gee

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IoT set to improve authentication

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By Sherry Zameer, Senior Vice President, Internet of Things Solutions for CISMEA region at Gemalto

As it rapidly approaches maturity, the Internet of Things (IoT) is set to continue a transformational trajectory, introducing new efficiencies in multiple fields by allowing measurement and analysis on a scale that has never been possible before. From agriculture to logistics, from retail to hospitality, from traffic to health, from the home to the office, the applications for monitoring ”things” are limited only by the imagination.

And South African (and African) businesses are showing abundant imagination in their practical deployments of IoT solutions in multiple settings, creating a better tomorrow through almost universal measurement and the introduction of new levels of convenience – including how to access locations, devices and services securely.

Any company, whether South African or international, should bear in mind that understanding consumer expectations can be the key to unlocking the full potential of IoT devices and related smart services.

According to Gemalto’s latest Connected Living study, improving the way consumers authenticate themselves to services is one of the most anticipated benefits of IoT, highlighting a desire for a more seamless and secure IoT experience.

Consumers are interested in advanced ways of authenticating themselves through automatic (based on behavioral patterns) or biometric techniques, lessening the need to have to intervene manually, all in the name of a much more streamlined authentication process. Smartphone manufacturers like Apple and Samsung have already placed fingerprint and facial recognition high on the agenda. There is also a widespread positive sentiment towards IoT’s potential for improving the quality of home life through connected, smart appliances.

Personalised services is something else that wins consumers over. In fact, a fluid, personalised and unified experience with continuity of services, together with security and privacy, is critical for the successful implementation of any technology.

And those types of services are today quite possible. With everything being connected – from small gadgets to digital solutions for large enterprises – IoT is no longer just a buzzword. That much is clear in a piece from Vodacom IoT managing executive Deon Liebenberg. Writing for IOL Online, Liebenberg provides insight into the sheer range of applications for IoT: the 20 use cases he cites range from the obvious, like transport and logistics, to the connected home and wearables; he even suggests tagging pets with IoT transmitters, for those who always need to know the whereabouts of the family cat.

Low-cost tags fitted to cats, dogs, lamp posts, shipping containers or other items are just one part of the puzzle, however. There are other two pieces; arguably the most complex part is the availability of communication networks in areas where there aren’t any WiFi networks, or indeed, anything else.

And that’s where the bigger takeaway from Liebenberg’s piece and other IoT trends articles becomes apparent. The communication networks are there, as are those tags: dedicated IoT networks (like LoraWAN, SigFox and narrowband IoT) are all available in South Africa.

So, too, is the third and final essential component. Software which is able to process the data generated by the tag and transmitted over the IoT network and into the internet. In this regard, there’s no shortage of solutions available from cloud providers like AWS and Azure; electronics giant Siemens, too, is in on the action, having recently launched a new cloud-based IoT operating system to develop applications and services for process industries, including oil and gas and water management.

This combination means it is quite possible right now to enable just about any use case. Business owners, who will know best how IoT can add value in their organisation, can now see their ideas becoming reality. Most crucial of all, IoT solutions delivering new levels of efficiency and convenience are not only possible, they are able to be offered with the simple and effective security that will drive consumer acceptance.

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