Mobile Network Operators relationships with customers are weakening day by day. The exponential rise of new simpler and richer forms of communication have already killed SMS revenue in markets such as the Netherlands and Spain. Voice is the only remaining communication that operators control, but increasing mobile bandwidth (LTE) opens the door to even more Over-The-Top (OTT) providers. Do operators still have competitive advantage? If so, for how long?

1. The declining influence of MNOs over consumer communication
Philip Cooper
Director, Context Consulting
Philip.cooper@context-consulting.co.uk
Are mobile operators still relevant to consumers?

2. Voice and SMS legacy: Nothing has changed in 17 years
The Spice Girls
Dancall DC1. I was so proud
Core mobile communication:
Voice and SMS
Not The Spice Girls
iPhone. Popular
Core mobile communication:
Voice and SMS. Still!
1996 2013

3. The world has moved on, we still only have SMS and voice
Men’s razors now have 5 blades at the
front and 2 at the back
Gerard ‘300 abs’ Butler convinces men
with masculine adjectives:
(L’Oreal) Men Expert Hydra-Energetic
Anti-fatigue (Moisturiser)
So they look good in the 3D, 4K world
Expectations have never been higher

4. Go back to basics: We communicate to fulfil a need
“London public transport
is rubbish… clients need
to know I’ll be late”
“Me and my best friends
keep in touch across the
entire day”
“I like to share pictures of
funny things I see with my
friends”
“My parents live abroad, I
need to keep in touch with
them”
“I need to make a call”
“I need to send an IM”
We don’t think… …there’s always a reason why…

5. People want benefits, not features
It all comes down to…
Transactional communication
Inform quickly
Communicate simple facts
Update or notify
Make arrangements
Emotional communication
Express feelings
Feel close to others
Counter loneliness
Reinforce group belonging

6. The door was left wide open for the Over-The-Tops (OTTs)
Now thousands of apps offer
hundreds of ways of communicating
Decorate and send your photos
Make a group video call
Send a handwritten note
Add stickers and stamps
Choose from a thousand emoticons
Play games in real time
Send a video message
Draw and share a sketch
Necessity is the mother of invention

7. Four threats to operator dominance of communication
Rapid LTE adoption
OTT brands become established
Mergers and acquisitions
Technology convergence

8. The next quad-play?
Once OTTs provide most services
what little relationships operators
have with customers will vanish
All operators will offer me is access
to a data network so I can use other
companies’ communication media
With their brand equity and offer
slashed, little is left to compete with
other than price
Pretty soon I’ll think of operators
with the same lack of affection I do
the Utilities Warehouse
Operators soon to become a utility?

9. Operators still have the reach, billing …and the trust
All of your friends are on
WhatsApp? Maybe, but I bet all
of your address book isn’t on
WhatsApp…
You can immediately contact
anyone in your address book
anywhere in the world and send
them a message or speak to them
And it’s all put into one simple bill
or top-up every month. Also,
consumers know OTTs have poor
security, they are not regulated
You have universal instant reach

10. Leverage remaining advantages to develop a relevant solution
Listen to customers and their needs.
Learn from the new mobile world and
their business models
Evaluate potential markets on a
human as well as economic
scorecard. Think Spain and Spanish
Latin America, UK and Poland...
Develop a solution with a great story
that consumers want to share
Operators must act before it’s too late

11. Context Consulting
Philip Cooper, Director
Context Consulting are trusted
consultants to numerous global mobile
operators and device manufacturers
Philip is regularly engaged to speak in
panels and presentations at
conferences around the world,
including MWC Barcelona 2013
Email: Philip.cooper@context-consulting.co.uk
Visit: www.context-consulting.co.uk
Perceptive. Enterprising. Partner.