http://tinyurl.com/ldlw8x Power is shifting, as social media and mobile communication merge. Web 2.0 and its impact on telecommunication was the most discussed topic at this year’s Berlin Telco Summit. Social media has become a massive movement and are fundamentally changing the way people communicate with one another. This development, naturally, has an impact on the telecommunication industry. Understanding Web 2.0 and learning how to connect with people in meaningful ways will be the major challenges for telecommunication brands for years to come. The participants of this year’s summit – 17 brand and communication strategists from 11 countries – identified three major trends, all of which are indicating a shift of power and values on various levels: Telecommunication, and nowadays also social media, are important agents for social and economic change. They accelerate the empowerment of disadvantaged people, relieve the impact of social change, level social inequalities and provide a platform for all kinds of political activism, encouraging people worldwide to actively participate in politics and nation building and giving people in non-democratic countries a chance to voice their opinion and join forces. Telecommunication and social media will become even more powerful – especially in emerging markets – as they are merging. Brands like Nokia have understood the power of this change, and are very successful in developing devices and services targeted at emerging markets. In rapidly “connecting” countries like India, which is adding 10 million new mobile phone connections each month, the consequences of this change is impressive. Mobile telecommunication is leap-frogging the underprivileged parts of the population into a brighter future, and is even helping to uncaste the society. Many telecommunication providers are not very much liked – due to big egos. Many telecommunication companies, some of them with amazingly big egos – especially former monopolists, struggle to find their role in today’s competitive commodity market – as providers, enablers and innovators. As a result they are falling behind other, more innovative players (hardware manufacturers, software developers etc.), who are increasingly invading their territory by offering innovative solutions, applications and services. An example for this is Layar, the world’s first augmented reality browser, which was developed by Dutch software developers sprxmobile, and Apple, who is redefining the traditional business model of mobile telecommunication. Little understanding and literacy of Web 2.0: Understanding the rules of Web 2.0, and playing an active part in it, proves to be a huge challenge for companies from all types of industries, not only those rooted in telecommunication. While being powerful and present in the real world, they are comparatively weak in the social web – despite their expertise in helping people connect. People talk to other people using social media, thus brands need to find their very specific role in this – without intruding peoples’ private conversations. These trends result in two major challenges for the telecommunication industry: Telecommunication companies should consider and understand their role as experts in life improvement, helpers and enablers: Making an effort to understand people – their motives, worries, desires and hopes – as well as to understand the culture with regard to communication, Telco brands will acquire valuable knowledge and insights to develop processes, technologies, products and services that help people in times of crisis and in their everyday life. This may also will also help to build relationships of trust and maybe even love. Let actions speak. Many Telco brands have made a huge effort to build their brands. However, this effort should be at least met, if not exceeded, by attractive products and services. Such as innovative tariffs, service in

1. Power
Shi*
BETA 2009 Telecommunica5on Trend Report
Summary
2009 BERLIN TELCO SUMMIT

2. Power is
shi*ing, as
social media and
mobile communica5on
merge.
2009 BERLIN TELCO SUMMIT

3. Trends & Observa5ons (4. Telecommunica/on Providers &
Mobile MarkePng will their Business)
(1. Telecommunica/on & break through
Alarming changes Society) Family is the new Loyalty programmes
in behaviour
hot
Agent of
hot
target group will come
Telco brands are (2. Telecommunica/on
Web 2.0 =
threat to evil social change Telco brands
not trusted
Providers & People)
are not loved hot Big ego
Web 2.0 + telco relieve Wrong self‐image
and concept
impact of changes hot
hot
People talk to Telco brands ≠ LiCle mastery of
friends
people, not brands Web 2.0
hot
Applica5ons based (3. Telecommunica/on
on geographic Nokia is incredible Providers & Web 2.0)
hot
posi5on in understanding
(6. Hot devices, emerging markets Is incredible &
brands & successful
Is not successful
hot
BlackBerry is the
applica/ons) smarter smart phone everywhere (5. The iPhone)
hot
Is over‐es5mated Financial crisis =
HTC
Too many barriers liLle impact
2009 BERLIN TELCO SUMMIT

4. 1. TelecommunicaPon & Society
In India, 10 million phone connec5ons are sold every month. That is
14,000 every hour. Mobile phones in India are a great weapon to ‘uncaste’
Web 2.0 = the country as they are literally for everybody – irrespecPve of age, gender,
threat to evil cultural background, wealth, income or hierarchical posiPon.
Agent of
social change
The web and social media played an Image: Ken Banks, kiwanja.net „They empowered women, empowered
important role during this year’s protests farmers, empowered blue collared, helped
following the elecPons in Iran. people to become open and expressive.“
This culminated in the broadcast of the so Subbu Subramanyeswar, Head of Planning,
called “Neda‐Video”, showing a young Publicis Ambience, Mumbai
protestor being shot. The film was first
distributed via Facebook and TwiLer.
Web 2.0 + telco relieve
Alarming changes impact of changes
in behaviour
For migrant workers, mobiles aren’t just phones. They
60% of BlackBerry owners in thumb through the images to remember their loved ones
Asia check their e‐mails in or moments when they weren’t stressed out, it’s their
bed. music player, it’s a mul5‐purpose entertainment system.
2009 BERLIN TELCO SUMMIT

5. 2. TelecommunicaPon Providers & People
Please indicate, how much you trust representaPves of the following industries.
On a scale from 1 to 5: 1 = very much, 5 = not at all
Telco brands are
not trusted
Source: Musiol Munzinger Sasserath, Trust in Times of Crisis, 2008, n = 1000
Big ego Telco brands
are not loved
Wrong self‐image
and concept
Source: hLp://www.brandtags.net/
Most telecommunicaPon companies are neither liked, nor
trusted. However, instead of addressing this problem, they
are trying to make friends on facebook.
2009 BERLIN TELCO SUMMIT

6. 3. TelecommunicaPon Providers & Web 2.0
In Germany, Vodafone’s spectacular
Web 2.0 relaunch campaign was
heavily criPcized, not only by the whole
adverPsing, markePng and internet
industry. In Spain, Telefonica invested heavily in its own social
network “keteke” – only 30.000 members have joined so far
(compared to 5 million on Facebook).
Telco brands ≠
friends
People talk to
people, not brands
LiCle mastery of In Switzerland, same problem with
the Orange Messenger: Only 1.300
Web 2.0 downloads in the past 6 months.
2009 BERLIN TELCO SUMMIT

7. 4. TelecommunicaPon Providers & their Business
Vodafone MyCampaign offers cost‐
effecPve local mobile campaigns for small
and medium sized companies.
To support the launch of three
family products in the UK, O2
Deutsche Telekom hired a former journalist to blog
offers a flatrate for about how technology is geWngs is a new service by German mobile phone provider E‐
families. helping her life as a busy mum. plus. Customers receive free minutes, text messages or
money in return for subscribing to mobile ads.
Family is the Mobile MarkePng will break through
new target
group
In Italy, the oil and fuel
In the U.S., Verizon Hub turns your home into a virtual company ERG sells SIM cards
communicaPon centre. With the Hub you can that can be used both for
communicate with your family and manage day‐to‐day making calls and refuelling.
acPviPes, all from one convenient device. Spending a certain amount on
calls gives you credit to refuel
and vice versa.
Loyalty programmes
Talk & fly: in Spain, for every Euro spent on will come
calls and messages pepephone customers
are credited with one Euro to be used on
Air EuropefFlights.
2009 BERLIN TELCO SUMMIT

8. 5. The iPhone
Is incredible & Too many barriers
successful
Though it already has been copied
many Pmes, the Appstore is sPll
the best place for applica5ons and
services for mobile devices.
In many countries, there is only one
provider which exclusively offers
The iPhone opened a new business category. the iPhone for contract customers.
Most other brands are trying to copy – most of
them haven’t created any buzz yet.
Is not successful
Is over‐es5mated
everywhere
In Japan, the iPhone is selling poorly for various
reasons: high monthly data plans that go with it,
its absence of features, the low‐quality camera,
the unfashionable design, the lack of a keyboard
for easy texPng and the fact that it’s not
Japanese.
2009 BERLIN TELCO SUMMIT

9. 6. Hot devices, brands & applicaPons
Nokia is incredible in
HTC came to UK via Vodafone ,posiPoning itself as understanding emerging markets
a next generaPon, progressive handset developer,
firmly at the smartphone end of the market. Nokia Life Tools: a range of innovaPve agri‐
cultural informaPon and educaPon services
HTC
designed especially for rural and small town
communiPes in emerging markets.
„In 2002, Nokia unveiled a strategy to lower
the cost of owning and operaPng a mobile
phone and to bring the benefits of mobile
telephony to people in emerging markets.“
Robert Andersson, ExecuPve Vice President,
Devices, Nokia.
„But for the first half of this year,
BlackBerry Curve outsold the iPhone,
making it the bestselling consumer U.S. Verizon Wireless –
smartphone in the U.S.“ Fortune Chaperone Loca5on
Service: allows users to
BlackBerry is the locate their family
smarter smart phone Applica5ons based on member’s Chaperone
Child phone from their
geographic posi5on Chaperone Parent phone
In the last three years, RIM’s market share in smart or the Chaperone Website
phones grew from 7% to 20%.) Research in MoPon ‐ in real Pme, at any Pme.
had 77% average sales growth over the last three
years. Source: hLp://www.cnbc.com/id/32447065
2009 BERLIN TELCO SUMMIT

10. (1. Telecommunica/on & Society) (4. Telecommunica/on Providers &
The financial crisis does not have a major impact on the telecommunicaPon
Mobile MarkePng will their Business)
Alarming changes
industry, but may have increased the tendency to compete on price.
break through
hot in behaviour Family is the new Loyalty programmes
Agent of
hot
target group will come
„TelecommunicaPon has become a basic
(2. Telecommunica/on
Telco brands are
Web 2.0 =
threat to evil social change Telco brands
“Recent research showed that when the
need and therefore is relaPvely untouched
not trusted
by the financial crisis.“ Gertjan Haramp,
Providers & People)
income is decreasing, the broadband Publicis, Amsterdam
are not loved
internet connecPon is the last thing
hot Big ego Wrong self‐image
Web 2.0 + telco relieve
people give up.“ Anne‐Marie den Hertog, and concept
hot
hot
arc Leo BurneL, Amsterdam
impact of changes TelecommunicaPon is a basic
necessity, therefore the last
People talk to Telco brands ≠ LiCle mastery of
thing people cut back.
friends
people, not brands hot Web 2.0
Applica5ons based (3. Telecommunica/on
„Price, price, price... Telcos have lost
hot on geographic Nokia is incredible Providers & Web 2.0)
However, the crisis lead to an the opportunity to build on trust/love/
increase in price compe55on.
posi5on in understanding
empathy, now it's back to money as
disposable income of individuals keeps
emerging markets decreasing.“ Tomas Navarro, Publicis
(6. Hot devices,
„A desperate effort on telco companies to Dialog, Madrid
Is not successful
hot
brands &
gain share via price, free..., more than...,
will give you ....etc..“ Juan‐Carlos Tapia
BlackBerry is the
applica/ons) smarter smart phone
Publicis, Mexico City everywhere (5. The iPhone)
Is over‐es5mated Financial crisis =
hot
Too many barriers liLle impact
HTC
2009 BERLIN TELCO SUMMIT

11. Challenges for the Telecommunica5on Industry
(1. What can Telcos improve in?) Mobile payment
More innova5on
in fixed line
More innova5on at POS
Improve products,
not just image
Improve
hot
hot
Customer‐Centricity
Being a helper and
enabler, not a friend
Understanding culture
hot Understanding people
Understanding
(2. How do they need to change?) Web 2.0
2009 BERLIN TELCO SUMMIT

12. 1. What can Telcos improve in?
Mobile payment
More innova5on at POS
Embracing
VoIP like 3.
Improve More innova5on in fixed line
Customer‐ Improve products,
Centricity not just image
„Our robots have re5red. When you The new tariff launched in Germany
speak to us, you speak to real people.“ is a mixture of a pay as you go tariff
O2 responds to one of the most which automaPcally turns into a flat
frustraPng customer experiences – rate once a certain amount has
you cannot get hold of a real person been spent (60€ – though limited to
when you call the service line. naPonal calls).
2009 BERLIN TELCO SUMMIT

13. 2. How do they need to change?
Following the earthquakes in Sichuan on 12th May,
2008, China’s major mobile phone service providers,
China Mobile and China Unicom, set up special
bonus plans for the affected areas and automaPcally
added credit to anyone affected personally.
Being a helper and
Dormitory Idol was a singing contest and one of a series of enabler, not a friend
markePng acPviPes staged by Singtel in Singapore directed
at foreign workers.
Understanding culture Understanding people
Hi mobile launched a campaign via Hyves, the Dutch equivalent to
facebook, to promote staying in touch with your friends via SMS
regularly and avoid becoming a “you know who” ‐ Someone you know,
but do not remember the name of.
Understanding
Web 2.0
400 dancers in Liverpool street Sta5on. 13,500 singing
karaoke in Trafalgar Square.
The T‐Mobile YouTube Channel is the UK’s second most
subscribed‐to channel ever.
2009 BERLIN TELCO SUMMIT

14. Power
Shi*
BETA
For more informaPon and the full
2009 TelecommunicaPon Trend Report please contact
Nina Daly
nd@musiolmunzingersasserath.com
MUSIOL MUNZINGER SASSERATH
Gesellschax für umsetzungsorienPerte Markenberatung
und Markenentwicklung mbH
Rosenstraße 18, D‐10178 Berlin
T +49 30.7790777‐82
F +49 30.7790777‐99
2009 BERLIN TELCO SUMMIT