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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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Welcome to world of 2099

The world of 2099 will be unrecognisable from the world of today, but it can be predicted, says one visionary. ARTHUR GOLDSTUCK met him in Singapore.

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Futuristic structures tower over the landscape. Giant, alien-looking trees light up with dazzling colours amid the hundreds of plant species that grow up their trunks. Cosmetic stores sell their wares via public touch-screens, with products delivered instantly in drawers below the screens.

This is not a vision of the future. It is a sample of Singapore today. But it is also an inkling of the world we may all experience in the future.

Singapore was the venue, last week, of the World Cities Summit, where engineers, politicians, investors and visionaries rubbed shoulders as they talked about the strategies and policies that would enhance urban living in the future.

As part of the Summit, global payment technologies leader Mastercard hosted a small media briefing by one of Singapore’s leading thinkers about the future, Dr Damian Tan, managing director of Vickers Venture Partners. The company’s slogan “We invest in the extraordinary,” offers a small clue to Tan’s perspective.

“We look as far forward as 2099 because, as a venture capital firm, we invest in the long term,” he tells a group of journalists from Africa and the Middle East. “Companies explode in growth because there is value in the future. If there is no growth, they won’t explode.”

The big question that the Smart Cities Summit and Mastercard are trying to help answer is, what will cities look like in the year 2099? Tan can’t give an exact answer, but he offers a framework that helps one approach the question.

“If you want to look at 81 years into the future, and understand the change that will come, you need to double that amount and look into the past. That takes us to 1856. The difference between then and now is the difference you can expect between now and 2099.”

Click here or on the page link below to read on: Page 2: Soldiers and Health in 2099.

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

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Street art goes electric

Kaspersky Lab and British street artist D*Face have unveiled the first-ever “art helmet” design at the Formula E finale for electric cars in New York.

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The ‘Save The World’ helmets will be raced by DS Virgin Racing’s drivers, Sam Bird and Alex Lynn, as they traverse the New York street circuit during the final races of the Formula E season.

The announcement signals the first art helmet by a Formula E team, continuing the heritage of art in motorsport and the cybersecurity brand’s commitment to contemporary art, creativity and innovation. D*Face took inspiration from Kaspersky Lab’s tagline, “A Company To Save The World”, and hopes that his colourful work will inspire people to take positive action.

D*Face will announce his first-ever art car design with a custom-made livery for the DS Virgin Racing Team. Its design will be released at the “Art Goes Green” event after Saturday’s race. The helmets and art car are the latest installations in the “Save the World” collection, following a major permanent public mural that was installed in Brooklyn, New York, in May.

D*Face, whose real name is Dean Stockton, said: “It is exciting to work with Kaspersky Lab on this project and create art with a real message of hope for a better future. After all, this is our world and we need to look after it. It will take every one of us to make a real lasting, impactful change. I love the mentality of the DS Virgin Racing Team and that of Formula E by showcasing sport in a way that doesn’t harm the environment, but is still just as exhilarating and fun.

“It is time for us all to stand together and make a change… be that stopping data steals, climate change, plastic waste or using damaging fuels. I want everyone to make a pledge to do one thing that will help make a change.”

As a sponsor of DS Virgin Racing Team, Kaspersky Lab is responsible for protecting the team’s devices against cyber threats. The company sees the technical environment in the global sport of Formula E as the next frontier in furthering its research and development of new technologies to keep vehicles secure in the digital world.

Sylvain Filippi, Managing Director at DS Virgin Racing, said: “The whole team fully supports this great initiative and our thanks got to Kaspersky and D*Face for their collaboration. It’s an honour to have such an innovative artist bring his talents to bear in our team ahead of the season-finale; the car, drivers’ crash helmets and mural all look amazing.”

Aldo Fucelli Pessot del Bo, Head of Global Partnerships and Sponsorships at Kaspersky Lab added: “There is a need for innovation on a global scale, both in contemporary art and in the fast-growing sport of Formula E. Now, for the first time ever, Kaspersky Lab is proudly bringing together the two sectors in an effort to Save the World and unleash creativity, encourage freedom of expression and further innovation.”

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