During the CTO Telecoms Forum held in London (June 6th, 2013) Pascal BEGLIN, CEO presented on the following topic: Filling the gap between OTT & RCS-e.

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Filling the gap between OTT & RCS-e
CTO Forum – London - 2013
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By the end of 2012, more instant messages were sent
via chat apps /day than SMS
Over-The-Top (OTT) messaging apps expected to
generate 41B messages per day in 2013 (14T /year)
Text messages revenues can locally decline but will
generate more than $120B this year
Ovum estimates $23B SMS/MMS rev lost in 2012
OTT DISRUPTING MESSAGING
BUSINESS….SOME FACTS

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OTT MESSAGING USE ALREADY
WELL ESTABLISHED
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44% MOBILE
USERS USE
OTT APPS TO
COMMUNICATE

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Mobile Messaging became and will stay fragmented
From a 20-years standard, SMS has now become just
another app (a big one though)
For customers, Joyn is just another brand
MOBILE MESSAGING BECAME
A FRAGMENTED MARKET
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OTT messaging market constantly moving and evolving
Very Different Market shares & use cases between USA,
CALA, Europe, APAC..
OTT BATTLE RAGING OUT
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Geopolitical stakes in
precise countries/regions
(China, Arabic Gulf,
Indonesia..)
Game is not over
Room for New Services and
Local Initiatives

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SMS is fully alive and kicking!
8600B messages sent in 2012
Projected to continue to grow, by 5 percent CAGR until
2016
SMS-Related Revenues far beyond OTTs
(Rising-Star “Line” generated no more than
45M€ in 2012)
SMS is a commodity but still a valuable,
durable asset for Operators trusted by
Consumers
IS SMS DEAD?
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THIS IS NOT JUST ABOUT
REVENUES
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SURVEY COMMISSIONED BY OPENMIND NETWORKS

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WORLDWIDE OPERATORS
CURRENT ANSWERS
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OTT
partnership
RCS-e /
Joyn
Pricing
Strategy
In-House
App

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Popular strategy in Asia…unproven results so far
“66 % of service providers said that they must “own the customer” in
any partnering agreement while only 13% of device manufacturers and
14 % of OTT players are prepared to envision a future in which they
cede ownership of the customer experience”.
“We looked at that option, but it is very difficult to partner with a
company in your core business… the trade-offs are humongous.”
Telefonica Digital, talking about OTT partnerships
OTT PARTNERSHIPS:
THE BAD “GOOD IDEA”?
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 Source: GSMA Dec-2012
RCS FOCUSES ON
WESTERN MARKETS

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Average Google Play Rating (3,2*),
decent nb of users (<500K, flat growth
after launch)
Android app gets <50K users, 2,5stars
rating
<100K users on Google Play since
Launch ; 1M user base is migrated
from previous chat app
Spain: Android app <50K DLs
SLOWLY TAKING OFF
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JOYN services didn’t meet their market so far
Is a worldwide Brand Only the right way to go?

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A GAP NEEDS TO BE FILLED
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• LOW BRAND
STICKINESS
• IMPLEMENTATION
CHALLENGE
• INTER-OPERATORS
AGREEMENTS
NEEDED TO ENSURE
TAKE-OFF
• LOYALTY HAZARD
• UNPROVEN
BUSINESS MODEL
• LOW VALUE-ADDED
NEED FOR
• + FLEXIBILITY
• + VALUE-ADDED
• LOCAL BRAND
• FASTER SERVICE TAKE-OFF
OTT
partnership -
Co-branding

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GOING TELCO-OTT OFFERS
PROMISING OUTLOOK
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Telco B
Telco A
Telco-OTT disrupts Traditional
VAS Models
Faster Reach of a Critical Mass
Improved Service Value
Reduced Regulatory requirements
Existing initiatives still struggle to find the
right approach
Differentiate from the OTT game but move away
from “another telco useless gadget”
Demonstrate superior services/user experience
Reliability and security

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Operators Should Seize Their
Fragment of the Market NOW, go Fast
to reach a Critical Mass
Build Local Brands, Potentially Create
their own OTT
Combine their Assets (Legacy
Services, Subscribers Relationship,
Billing), IP messaging capabilities and
RCS APIs to foster New User
Experiences
TIME IS THE ESSENCE…
TECHNOLOGY AN ENABLER
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“The OTT Threat will not be solved by one technology”
Rafael Junquera, Telesemana
IP
Messaging
SMS/MMSRCS API

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Client Attractiveness:
User Experience First! Features,
Look’n’Feel, Battery-Saving,
Social…
Price
Should be in line with short-
term new messaging revenues
(low)
Ease of integration
IMS shouldn’t be a constraint
Synergy with SMS equipment
KEY DECISION FACTORS FOR
MOBILE CTO/CIO
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YANKEE GROUP/OPENMIND

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Network-Agnostic Mobile Messaging
Legacy SMS/MMS & IP Messaging
White-Label Apps
Access-independent: Telco-OTT-compliant
Carrier-Grade Technology
Fast Roll-Out
Interoperable with RCS
INTRODUCING
SMARTMS™
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IP Mobile Messaging Market is fragmented and moving
Joyn as a global messaging brand has shown its limits
Operators have opportunities to act like OTTs and
implement Telco-OTT strategies
Operator need to create synergies between Legacy,
new IP services/brands and RCS
White-Label Solutions such as StreamWIDE’s SmartMS
can offer a powerful complement to traditional RCS
approach
IN A NUTSHELL..
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Time to Bridge the Gap between OTT and RCS!

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Questions?
Thank You!
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