Convergence
Integrated, bundled propositions are only one component of convergent products
Communication Dedicated product category with clear convergence promise
Customer interaction Integrated sales approach, billing, hotline, self-care, and technical service
Bundled propositions
Communication
Hardware
Convergent products
Customer interaction
Hardware Convergent devices/hardware combining fixed and wireless technologies, etc.
Services/ apps
Platforms
Platforms Integrated service platforms, seamless handover, single number, etc.
Services/apps Multi-screen/agnostic services, security, synchronized data, smart home, etc.
Source: BCG analysis BCG_Convergence_OTT.pptx
Draft—for discussion only
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Copyright Š 2015 by The Boston Consulting Group, Inc. All rights reserved.
Bundled propositions Integrated tariffs and package offers with attractive benefits and smart pricing
OTT and partnering
The OTT paradigm: Telcos can't create as much value from operating the infrastructure as OTT can from using it ... Mobile data traffic has been doubling every year ...
... but OTTs are getting the majority of the economic surplus
Global monthly mobile traffic (in petabytes)1
Cumulative market caps (in B$)
CAGR 2009-2013
2,000
1,500
2,000
1,882
1,500 + 109% 1,000
967
1,057
961
4G LTE
Copyright © 2015 by The Boston Consulting Group, Inc. All rights reserved.
1,000
1,196
776
500
22 × EV/ EBITDA
500 4–5 × EV/ EBITDA
+ 14% 0
23 × EV/ EBITDA 4–5 × EV/ EBITDA
36 × EV/ EBITDA 4–5 × EV/ EBITDA
0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009
2010
2011
2012
2013
2009
2011
2013
Top 10 Telcos2 Top 10 OTTs3
Data
Voice
1. 1 petabyte = 1 million gigabyte 2.Top 10 Telcos; China Mobile, AT&T, Telefónica, Vodafone, Verizon, FT, DT, NTT, NTT DoCoMo, America Movil 3. Top 10 OTT: Apple, Microsoft, Google, Amazon, Facebook, Ebay, Yahoo, Baidu, Tencent, Priceline Source: Cisco Visual Networking Index (VNI) 2013; Thomson; IQ Capital; annual reports BCG_Convergence_OTT.pptx
Draft—for discussion only
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