More smartphones please - then we’ll have a level playing field

The mobile apps stores are becoming an obsession for the mobile industry and a huge amount of money and effort is being expended by players wanting to get involved. It’s not hard to see why - where the app store works well it seems to work very well. Apple’s AppStore has famously overseen its one billionth download and that level of customer engagement (not to say revenue potential) is enough to both frighten and/or inspire the rest of the mobile industry.

We’ve since had Android, Microsoft, Blackberry, Nokia and more - all investing or re-investing in the concept - and mobile operators are also entering the fray with Vodafone, in particular, announcing an ambitious global ‘device agnostic’ approach to apps distribution.

At present all the cards (SIM and otherwise) seem to be in the hands of those phone vendors most able to excite smartphone sales in particular. But within two years by our reckoning leading-edge vendors (such as Apple) will fall back in relative terms and today’s laggards (Nokia, Motorola along with new entrants such as Dell, and many more) will catch up. At that point market power, in a world awash with fantastically capable smartphones, will swing back to the service providers again.

Then, the key to operators’ success - as they partner with the leading app stores and demand a share of their revenues (instead of the other way around) - will be the customer relationship they still have and the direct billing ability that goes with it. So roll on more smartphone competition - mobile operators have nothing to lose but their one-sided distribution deals.

And when it comes to billing and revenue sharing it is operators who increasingly have the technology in place. Our most recent contract announcement, with ZOOMmobile in Nigeria for our Interconnect Manager system, illustrates the point. Not only fast and accurate billing, but efficient settlement and optimised routing leading to enhanced revenue assurance.

Customer Relationship Management (CRM) is another crucial example of what operators do best and in this issue of Evolve we’re spotlighting Cerillion’s CRM Plus solution which helps build customer loyalty and offer opportunities to up-sell or cross-sell other services.

This will be the last Evolve until September but we hope we’ll see at least some of you in the meantime. We’re going to be participating at CANTO in Trinidad & Tobago, July 12 - 15 at the Hyatt Regency. We’d love to see you there.

App Store Wars

When Apple launched the iPhone in 2007, few would have predicted the impact it would have on the Telecoms industry. Yes, Apple was renowned for its innovation and sleek designs, but mobile phone users are fiercely loyal when it comes to their handset of choice. There are the die-hard Nokia fans (me included), and then the email obsessed Blackberry owners, and so on. So would Apple succeed in breaking the stranglehold of the leading handset manufacturers?

The iPhone’s revolutionary touchscreen design and ease of use immediately propelled it up the smartphone charts, winning over music lovers and those looking for an enhanced mobile browsing experience. But it was the launch of the App Store in July 2008 that has really changed the mobile landscape. Not only had Apple got the most talked about handset, but it now had a whole community of developers building applications for the iPhone masses.

So it was only a matter of time before the other major device manufacturers played catch up and launched their own equivalents. True to form, February’s Mobile World Congress was awash with App Store fever and Microsoft hit the headlines as it unveiled Windows Marketplace for Mobile. Next up, RIM launched Blackberry App World on April 1st (not the best day for real news!) and this has been followed by the rollout of the Nokia Ovi store in May.

The app store model itself is perhaps the most hyped subject in the telecoms industry today. Seemingly each week there is yet another vendor about to launch their own service – the most recent addition (at the time of writing) being Sony Ericsson; or we are hearing that the Apple App Store has just shifted its one billionth download in only 9 months – impressive statistics indeed.

However, I have two problems with this app store “revolution”. Firstly, the model as it stands today is promoting off-net content and payment, which can only be detrimental to the telecoms operators’ business in the long term. And secondly, the excitement about this application ecosystem, with legions of developers building all the applications. Do people not remember i-mode?

Off-net Content

Telecoms operators have been talking for the best part of a decade about their role in the content value chain and the need to avoid being relegated to providing only the dreaded “dumb-pipe”. But the app stores on offer from the main handset makers take the process of buying applications “off-net” – for example iPhone apps are acquired through iTunes, Blackberry apps use Paypal and Nokia apps are purchased using credit card payment systems.

This leaves the operators relying on increased data services revenues as more and more subscribers download applications, or the hope of attracting / retaining customers more effectively if they can gain an exclusive deal with one of the handset suppliers – such as the iPhone deals signed by AT&T and O2 in their respective markets. However this exclusivity usually comes at a price – O2 was originally reported to be handing over 40% of iPhone related revenues directly to Apple.

Digital Media Value Chain

Vodafone has clearly seen the danger in this, and has recently announced plans for its own mobile applications store, which will be up and running by the end of the year. However there are a number of significant differences with their approach which places them much more firmly in the midst of the digital media value chain.

In particular, developers will be able to take advantage of subscriber location information to offer geographically targeted applications; they will also be able to reach the entire Vodafone customer base – currently around 290 million subscribers worldwide (compared with ~ 30 million iPhone users); and perhaps most importantly they will be opening up a “billing API” – effectively giving application developers the ability to charge customers directly on their Vodafone bill or prepaid account.

And it is this billing element that will be absolutely crucial in providing customers with a simple and secure ordering process, without needing to register payment details with yet another website or 3rd party provider.

What Vodafone is setting out to do is not easy – their app store will need to support multiple different devices and technologies, it will also need to operate seamlessly in multiple different countries for both home and visiting subscribers, and last but not least it will need to integrate with the multiple different billing and prepaid platforms that are in place in each local operation.

i-mode Reinvented?

Going back to my second gripe about the current app store hype, the idea of creating an ecosystem whereby the operators don’t have to create all the content themselves is nothing new. It is now ten years since i-mode was first launched by NTT DoCoMo in Japan. i-mode was the first set of “3G services”, available via specially designed websites with all DoCoMo approved services being linked to the official i-mode portal and billed by DoCoMo’s billing system. The original i-mode phones also had specific i-mode buttons, providing direct access to the i-mode portal.

i-mode went on to be launched by a number of operators outside of Japan including O2 (UK), e-plus (Germany), Wind (Italy), KPN (Netherlands) and so on. However though it seems i-mode continues to be successful in Japan, it has been quietly withdrawn by operators in many other markets.

The big change with the various app stores today is that rather than accessing services from a particular website, the applications are purchased and downloaded direct to the handset. The handsets themselves are vastly improved in terms of performance, processing power, memory and usability, and consequently the applications themselves tend to be designed to take advantage of these capabilities.

Some applications may use data connectivity when in use, but the majority once downloaded can be run without being online. Which means the scope for operators making money out of the data usage is for the most part limited to the application download itself. And bearing in mind that the majority of operators today offer flat-rate data bundles, this is unlikely to result in significant increases in data revenues – unless customers make the mistake of downloading their apps whilst roaming and paying the resulting data premiums.

Tip of the Iceberg

Whilst Apple have taken the lead with the original App Store and the other handset makers have followed suit, it is the app store activities of operators such as Vodafone that will be followed with the most interest. Operators who sit back and let their margins erode whilst content and applications are delivered “over-the-top”, risk losing the customer relationship they strive so hard to develop and becoming merely a provider of the wholesale access network.

Three or four years ago, all the talk was about the threat from “free” VoIP calls using applications like Skype. Well this threat has now extended to other applications and services that bypass the network operator. Whilst most operators have defined their plan of attack for the low cost / free VoIP providers, few have figured out their app store strategies. Preparing the back office with suitable online charging systems will be crucial in enabling operators to earn their share of this lucrative revenue stream. And with app stores only the tip of the digital media value chain iceberg there really is no time like the present.

Dominic Smith
Dominic.Smith@cerillion.com

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Meet Cerillion at CANTO 2009

Taking place from 12th – 15th July at the Hyatt Regency, Trinidad & Tobago, CANTO will rediscover its roots with the theme “Advancing the Caribbean through Information and Communication”, setting the stage for CANTOs Connect the Caribbean (CTC).

CANTO Connect the Caribbean, is about connecting the people of the region to the information super highway by 2015. To achieve this objective, CANTO will clearly require a strong public private people partnership approach.

In any multi-stakeholder initiative like CTC, thev building of strong relationships is a critical success factor. One of the key principles of CTC is developing strong and effective stakeholder relationships. This is why CANTO has spent the last year seeking to build and strengthen its relationships with regional governments and agencies involved in information and communication technology. Partnerships built around commitment to core principles, open dialogue, trust, and clear lines of regular communication, are necessary if the CTC initiative is to be successful.

Book an Appointment

Cerillion will be participating throughout CANTO and promoting its unique bundled component product suite including Revenue Manager, CRM Plus, Service Manager, Mediator Plus and Interconnect Manager.

Find out how we can help your business to flourish, with solutions to address key industry challenges, including:

• Improving time-to-market for new services
• Reducing the cost of billing
• Maximising interconnect margins
• Improving revenue assurance
• Increasing operational efficiency

If you’d like to pre-arrange a meeting with a Cerillion representative, please visit our event registration page and complete the appointment form.

See you in Trinidad & Tobago.

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Spotlight: Cerillion CRM Plus

Cerillion CRM Plus is a comprehensive CRM solution that integrates all aspects of the customer relationship lifecycle for Communications Services Providers.

Cerillion CRM Plus – Overview

In a world of convergent services and an ever-increasing focus on content, managing the customer relationship is more important than ever. It is essential that customers receive a fast and efficient service, and that promises are kept. Swift resolution of problems helps to build customer loyalty, and brings opportunities to up-sell or cross-sell other services. Moreover with margins under pressure it is essential in helping control operational expenditure.

Cerillion CRM Plus provides a fully integrated suite of functions to allow sales and customer service staff to manage all aspects of the customer lifecycle efficiently: from initial contact, to sales, post sales, and financial and marketing management. It helps increase customer satisfaction by enabling high quality, consistent customer service across all contact channels, including call centre, dealer outlet, and online self-service. Integrated workflow management and automated processes enable streamlined operations whilst providing a complete audit trail of customer contact activities.

Increased customer satisfaction

CRM Plus is a one-stop-shop for delivering higher customer service productivity and increased customer satisfaction. All fixed, mobile and IP services can be managed through the same system, enabling a single point of contact for all customer enquiries; and prepaid subscribers can benefit from the same level of service as postpaid, helping to boost loyalty and customer lifetime value. CRM Plus provides a customer centric approach to customer management, enabling real-time access to information and rapid response to customer enquiries.

Improved operational efficiency

CRM Plus streamlines key business processes through its integrated workflow management engine. Automated procedures and task dependencies ensure a consistent quality of service is delivered, without the risk of actions being bypassed or forgotten. Authorised users have access to all key functions and processes, allowing customer creation, credit checking, service selection, provisioning, and payment processing, all from a single customer contact. In addition, a range of “wizards” guide inexperienced staff through complex transactions, and CSR work diaries ensure that no task is left incomplete.

Supports multiple channels

CRM Plus provides a complete solution supporting all major channels of customer relationship management. Dealers have access to the same functions available to staff in the Call Centre; back office staff can be authorised for processing credit control or collections enquiries; and the optional Cerillion Web Self-Care product offers 24x7 self-service for end customers. All information is synchronised in the main CRM Plus database ensuring a complete contact history is always available.

For more information about Cerillion CRM Plus, please contact info@cerillion.com.

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Nigeria’s ZOOMmobile Chooses Cerillion for Interconnect Billing and Settlements Solution

London, 13th May 2009 – Leading Nigerian private telecoms operator, ZOOMmobile (formerly Reltel Wireless) has gone live with Interconnect Manager from convergent billing and interconnect specialist, Cerillion Technologies. The implementation marks an extension of the existing relationship between the two companies, which began in 2006 with the successful delivery of Cerillion’s Mediator product on ZOOMmobile’s CDMA network.

Under the terms of the new agreement, Cerillion Interconnect Manager will support ZOOMmobile in achieving its revenue assurance goals by enabling it to bill interconnect partners accurately and to efficiently reconcile invoices received.

This implementation represents the first time Cerillion has delivered its Interconnect Manager product on an Intel-based Sun platform running the Solaris operating system. The use of this platform enables Cerillion to deliver an enhanced price performance ratio for its customers. In line with this, Cerillion is comfortably able to process 25 million interconnect call detail records (CDRs) per hour for ZOOMmobile.

The Nigerian interconnect market is more complex than most because of the use of third-party clearing houses as well as direct operator-to-operator agreements. The versatility of Cerillion’s solution enables operators to manage both models very effectively.

“The rapidly growing African telecoms market offers exciting opportunities for technology companies,” says Louis Hall, Cerillion’s chief executive. “Providers capable of delivering effective interconnect management functionality continue to be in demand from operators with an urgent requirement for revenue assurance and efficient settlement.”

Kenneth Aigbinode, vice chairman, ZOOMmobile, says: “For us, the Cerillion implementation is part of an ongoing programme to increase efficiency and manage costs. Cerillion’s Mediator solution has played an important role in helping to enhance our revenue assurance over recent years. Further building on this success, Cerillion’s Interconnect Manager will allow us to exercise close control over our interconnect costs and optimise on the best available interconnect routes.”

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