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THE DIGITAL ECONOMY

What it is, why it matters, and how to succeed

The digital economy

OCTOBER 2014


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Analysys Mason Limited 201402

THE DIGITAL ECONOMY

CONTENTSWhat is the digital economy and why is it important?

Analysys Masons Digital Economy Readiness Index reveals regional

opportunities in key verticals

Fostering and deploying innovation from pre-existing telco assets and start-

ups: Vodafone xone

A good first response to the OTT threat is to gain an understanding of current

and future competitors, such as Tencent and WhatsApp

Software is the key to digital economy services and operations

Analysys Mason covers the digital economy in five research programmes

About the authors

About analysys mason

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THE DIGITAL ECONOMY

1.WHAT IS THE DIGITAL ECONOMY

AND WHY IS IT IMPORTANT?

Some digital economy goods and services are

intrinsically digital, such as online e-books,

streaming music or films, or computing services.

Other digital economy goods and services are

substitutes for existing equipment and services,such as virtualised PBXs for local phone systems,

security services, or virtual private communications

networks. Yet others involve the delivery of physical

goods to consumers, but marketing and sales are

done by digital means. Amazon is the main pioneer

in this area.

Nearly all businesses will need to become digital

economy participants, whether they provide online

digital services, digital substitutes for traditional

goods and services, or physical goods marketed

and sold by digital means.

Becoming a true digital economy player requires a

level of business transformation and, for telecoms

operators, a change in mindset. Therefore,

The digital economy is all socioeconomic activity mediated by softwareand enabled by telecoms infrastructure.

Analysys Mason is assessing the size of digital

economy opportunities in emerging verticals, such

as mobile financial services, mobile commerce,

mobile health, mobile education, mobile

advertising and smart homes.

The value chain and business models in the digital

economy are not yet established in all cases.

Identifying the value-chain roles, and corresponding

business models, of key players and competitors

is vital for Internet players (for example, Facebook

and Google), vendors (such as Apple and Samsung),

developers, content players and operators.

It is also vital to understand the competitive

landscape of the digital economy. For this

reason, ourDigital Economy research programme

comprehensively tracks the latest market

developments, and provides best-practice case

studies of the shifting roles of operators and their

competitors worldwide.


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THE DIGITAL ECONOMY

The pressure to capitalise on new opportunities in

the digital economy has become more intense for

operators worldwide, as revenue from core services,

apart from data, is facing stagnation or decline

(see Figure 1). A primary driver of this challenging

competitive landscape is the emergence of IP-based

OTT services provided by players of all sizes from

Internet giants to small, agile start-ups.

In contrast, the revenue growth of digital economy

players such as Amazon, Facebook and Google albeit from a much lower base than that of core

telecoms services is not easily dismissible. At the

end of 2012, revenue from digital economy players

was around 10% of that of telecoms players, but

was growing five times faster. Therefore, operators

worldwide are actively exploring ways to defend

against the competitive threats of digital economy

1.1 The central issue: telecoms, media and technology (TMT) players willneed to look for growth outside their core competencies

players, while capitalising on their strengths

and network infrastructure to become a more-

integrated part of the digital economy and the

associated growth opportunity.

In addition to the competitive challenges emanating

from outside of their organisations, accomplishing

innovation in the digital economy is difficult for

operators because it requires a very different

organisational structure and mentality. This makes it

particularly challenging to execute innovative venturesat the heart of a traditional Telco organisation

within the very rapid time-frames that Internet

players or agile start-ups can deliver. For this

reason, operators must continue to explore different

avenues that complement their sporadic venture

capital investments or acquisitions in order to foster

innovation in parallel to their traditional operations.

20090

REVENUEUSD

BILLION

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400

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800

1000

1200

1400

1600

1800

2000

2010 2011 2012 2013 2014 2015 2016 2017 2018

Mobile voice

Mobile messaging

Mobile handset data

Mobile broadband

Mobile M2M

Fixed voice and narrowband

Fixed broadband and IPTV

Business network services

Total service revenue (retail and wholesale)

pFIGURE 1: Telecoms service revenue (retail and wholesale), worldwide, 20092018 [Source: Analysys

Mason, 2014


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THE DIGITAL ECONOMY

Telecoms operators (and/or communications

service providers (CSPs)) have several distinct

advantages and core competencies that enable

1.2 Telecoms operators have key advantages that they can use to enterthe digital economy ecosystem

CSPSROLE

IN THEDIGITAL

ECONOMY

HIGHTECHNOLOGY OPERATIONS

nExperts at running high-technologyoperations with skilled technicians

nDistributed, mobile workforces andknowledge of how to equip and managethem

nMany BSS and OSS systems in place aswell as knowledge of how to plan, specify,procure, implement and use sophisticatedsoftware

nHave data centres with high-reliabilitysystems and the people to plan and runthem

nHave knowledge of how to provide andsupport a wide number of high-technologyservices to customers and businesses

DEEP POCKETS

nCSPs are expert atcapital procurementand management

LARGE AMOUNTS OFBEHAVIOURAL DATA

nKnowledge of whocustomers call and when

nWhen customers accessthe Internet and what theyvisit (subject to privacylaws, in some cases)

nPresence and activity

ESTABLISHED BILLINGRELATIONSHIPS

nCustomers areconditioned to sendmoney to CSPs everymonth

nKnowledge of credithistory

ESTABLISHED CUSTOMERRELATIONSHIPS

nWireline CSPs have deeprelationships with their customers,mobile operators somewhat less dueto the disintermediation by handsetmanufacturers

nExcellent brand recognition

nEstablished, ongoing contact with

customers via bills and marketingmessages

nKnowledge of the offers that havebeen accepted - or rejected - by theconsumers

nKnowledge of residences, familyunits and, in many cases, dwellinglocations as well as personal location

pFIGURE 2:Key advantages of CSPs in the digital economy [Source: Analysys Mason, 2014]

them to enter the digital economy via organic or

inorganic means (see Figure 2).


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THE DIGITAL ECONOMY

Aspects of the digital economy could be

characterised by inflated expectations, unrealistic

business cases, oversimplified go-to-market

strategies, ill-managed resources and inefficient

partnerships. Many start-ups have failed to capture

the opportunities that the digital economy has

to offer for those reasons. However, such pitfalls

and failures can be assessed, understood, and

circumnavigated, and larger, more established

players from adjacent segments can learn to use

their scale as an advantage to avoid similar fates.Furthermore, many companies, including the

most successful ones, are facing the pressures of

convergence and competition in their core markets.

This increases the need for them to assess

opportunities in adjacent verticals.

1.3 Cutting through the hype around the digital economy: size it,understand it, evaluate the business models

Analysys Mason can help current and prospective

stakeholders in the digital economy to answer the

following four key strategic questions.

nHow wide a spread of verticals to operate in?

nHow high up the value chain to move?

nHow far to extend geographically?

nHow to deliver the capability?

The following articles demonstrate elements of

Analysys Masons comprehensive digital economyresearch coverage and touch upon some of the

questions raised above.


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THE DIGITAL ECONOMY

AsiaPacific (APAC) and the Middle East and

Africa (MEA) are two of the most fertile regions fordigital economy deployments. Data from Analysys

Masons Digital Economy Readiness Index(DERI)

(www.analysysmason.com/deri-data-2014) a

compilation of more than 340 digital economy

initiatives by 32 of the largest operators worldwide in

terms of mobile revenue reveals a divide between

2.ANALYSYS MASONS DIGITALECONOMY READINESSINDEX REVEALS REGIONALOPPORTUNITIES IN KEY VERTICALS

these two regions, as well as potential opportunities

for operators and vendors.

Each initiative in the DERI receives a readiness

score assessed across two distinct axes: the scale

or type of an initiative which indicates its size and

reach and its maturity, which indicates its position

in the lifecycle of a digital economy initiative.


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THE DIGITAL ECONOMY

Data from the DERI enables a top-level view of

each regions digital economy profile, and the key

verticals in each of them.1

nThe MEA region has a high number of mobile

health deployments.A third of the initiatives

that we tracked in MEA were related to mobile

health, making this the vertical with the largest

number of deployments in the region. In contrast,

mobile health represented 18% of initiatives in

APAC. The relatively high level of activity in mobile

financial service initiatives in APAC indicates thatinnovation may also be happening with smaller,

local operators and not only the largest players.

2.1 APAC and MEA have distinct digital economy profiles

1. See Analysys Masons Digital Economy Readiness Index: mapping telco innovation and digital strategies. Available at www.analysysmason.com/deri-2014.

2. The cloud-based services category in the DERI also includes OTT services, mobile content, big data and software-related initiatives such as APIs.

nMobile education is important in both regions.46%

of all mobile education initiatives tracked in the DERI

were observed in the APAC region. However, MEA

leads in terms of average readiness score. Education

is perceived as a key social mobility enabler in these

markets and can be effectively monetised directly

(subscription services), or indirectly (churn prevention).

nAPAC dominates MEA in terms of the number of

cloud-based services initiatives. 2This is stimulated

by smartphone penetration Analysys Mason

expects smartphone penetration as a proportion oftotal active handset connections in APAC to reach

34% by the end of 2014, while it will be 16% in MEA.


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THE DIGITAL ECONOMY

Operators in MEA, such as Mobile Telephone

Networks (MTN), Ooredoo, Orange and Saudi Telecom,

have deployed fewer mobile health and cloud-based

service initiatives than operators in APAC, such as NTT

Docomo and SoftBank. However, the initiatives in MEA

receive higher readiness scores on average.

In MEA, mobile education and mobile financial

services are the two most successful verticals in

terms of average readiness score (see Figure 3). MEA

commands the highest scores for mobile financial

services worldwide, followed by APAC. In the former,Vodafones M-Pesa, MTN Mobile Money and Orange

Money are best-practice examples of product

market fit. APACs deployments have been driven by

the success of contactless and mobile-only payments,

and money solutions. Nevertheless, average readiness

scores for mobile financial services are slightly lower

in APAC than in MEA, because the most successful

initiatives are often limited to Japan or South Korea,

which are not representative of the whole region.

Opportunities exist in verticals that have a high

average readiness score and a small number of

deployed initiatives. In APAC, smart homes, mobile

education and mobile agriculture are potential

2.2 The DERI assesses digital economy initiatives on more than justnumbers of deployments

00

AVERAGERE

ADNESSSCORE

NUMBER OF INITIATIVES

Smart homes

Mobile education

Venture capital - accelerator

Mobile commerceand advertising

Mobile education

Mobile health

Mobile health

Smart homes

Mobile agricultureVenture capital - accelerator

Mobile financial services

Mobile financialservices

Mobile agriculture

Cloud-basedservices

Cloud-basedservices

ASIAPACIFIC

MIDDLE EAST AND AFRICA

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15

20

25

30

35

40

45

50

5 10 15 20 25 30

growth verticals for mobile operators. In MEA,

opportunities exist in mobile education, mobile

financial services and mobile health.

Analysys Masons Digital Economy Readiness Index

(DERI) presents a view of operators ability to

capitalise on emerging digital economy verticals,

quantifying the readiness of their initiatives in:

nmobile financial services

nmobile health

nmobile commerce and advertising (includinglocation-based services)

nmobile education

ncloud-based services (including OTT, mobile

content, big data, and software)

nmobile agriculture

nsmart homes

nventure capital or start-up incubator/accelerator

programmes.

The DERI integrates data from each deployment across

a number of categories, including vertical, scale,

maturity, target customer segment, countries and

regions. Each initiative in the DERI receives a readiness

score using Analysys Masons proprietary methodology.

pFIGURE 3:Number of digital economy initiatives and average readiness score by vertical, AsiaPacific

and Middle East and Africa [Source: Analysys Mason, 2014]


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THE DIGITAL ECONOMY

3. FOSTERING AND DEPLOYINGINNOVATION FROM PREEXISTINGTELCO ASSETS AND STARTUPS:VODAFONE XONE

Xone is the innovation brand for consumer-oriented

products developed either by the start-ups that have

gone through its acceleration programme, or by

Vodafones R&D teams.

Vodafones goals for xone are to:

naccelerate promising technology companies

nintegrate these companies products into

Vodafones markets worldwide

ntest and commercially launch innovations

developed by Vodafones R&D division

nbuild the next set of ecosystem vendors around

Vodafone.

A number of characteristics set xone apart from

other incubator or accelerator initiatives led by

mobile operators.

3. 1 The xone venture and incubation centres are Vodafone Groupsinnovation initiative

nOpen to companies at all development stages.

From teams with merely an idea (pre-prototype,

pre-incorporation), to mature companies that have

already received millions of dollars in funding.

nTailor-made involvement.xones engagement with

start-ups, financial or otherwise, is determined on a

case-by-case basis. For this reason, it does not have

standard legal templates or funding term sheets.

nxone-branded products.Products developed by the

start-ups may be deployed in test markets within

Vodafones geographical footprint under the xone brand.

nKPIs.Success is measured by start-ups

launching through scaled commercial

agreements with Vodafone (as xone or Vodafone-

branded products), or independently.


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THE DIGITAL ECONOMY

Participating companies receive funding from

Vodafone Ventures, the companys strategic

corporate venture capital arm, or working capital

and resources that, depending on the companys

needs and development stage, can include:

nbusiness and financial guidance

nproof-of-concept assistance

noffice or work space

nmarketing advice

nengineering support (in what Vodafone calls non-recurring engineering)

nuser trials in Vodafone markets through its OpCos.

xone was initially set up under Vodafone Group R&D

in Silicon Valley, primarily to be near innovative

start-ups in the area, and to leverage the potential

synergies with Verizon.

However, after the reorganisation of Vodafones

Global Technology division in September 2013, the

Verizon divestment in late 2013, and the departure

of key US-based executives, xone is now a part of

Consumer Products and Services and the Group

R&D role has moved to Strategy and Operations.

3.2 xone has supported more than 40 companies in three innovationhubs across the world

xones initial goal of accelerating technology

companies to create a vendor ecosystem

around Vodafone was met with some criticism

for being too vendor-centric, at a time when

opportunities in consumer-oriented digital

economy were being exploited by Internet giants

and other start-up accelerators.

The vendor-centric approach eventually evolved to

accommodate a wider set of companies in verticals

not directly related to Vodafones core activities (forexample, healthcare technology and robotics) (see

Figure 4).

Nevertheless, xone refocused and was

restructured following a confluence of factors

during 2H 2013. This transition culminated in the

decision to relocate the main innovation hub from

Silicon Valley to London, announced in June 2014.

The focus is now on xone-branded products to

be tested and deployed in Vodafones European

markets, with xone moving beyond the role of a

mere start-up accelerator to becoming more of an

innovation R&D hub.

Vendor-centric Expansion intounrelated verticals

Re-focus on xone-branded products

2014201320122011

pFIGURE 4:Evolution of xones strategy [Source: Analysys Mason, 2014]


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THE DIGITAL ECONOMY

Around 3% of the start-ups that apply are accepted

into the Vodafone xone accelerator. In order to be

accepted, companies must:

nbring value to Vodafone in terms of

infrastructure, services or expected return on

investment (ROI) at exit

nhave a clear path to market that takes advantage

of Vodafones services, infrastructure, distribution

channels or customer support operations.

The teams, companies and the terms under whichVodafone supports them, vary greatly.

3.3 xones selection process favours companies that can scale quicklywith Vodafones support

nMaturer companies receive investment from

Vodafone Ventures.

nEarly stage start-ups receive small amounts of

operational capital made directly via xone. Support

is also given in-kind by other xone partners.

xones path-to-market process involves helping

start-ups build their product and test it with xoners

that is, Vodafone employees or customers who have

signed up to beta test xones products. Depending on

the beta-test results, products are gradually scaled

to an increasing number of markets, or go back tothe co-build stage (see Figure 5).

Beta-testwith help from

xoners (voluntary

beta testers) in key

marketsCo-build

with xones

infrastructure,

capital, and partners

Scale

Across markets and

distribution channels

pFIGURE 5:Overview of xones path-to-market process [Source: Analysys Mason, 2014]


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THE DIGITAL ECONOMY

Analysys Mason has analysed the smartphoneusage of consumers in France, Germany, the

UK and the USA. The analysis is based on

data provided by Nielsen, using an application

developed by Arbitron Mobile between mid-

August and the end of October 2013.3 This

event-level data allows us to produce in-depth

4.A GOOD FIRST RESPONSE TOTHE OTT THREAT IS TO GAIN ANUNDERSTANDING OF CURRENTAND FUTURE COMPETITORS, SUCHAS TENCENT AND WHATSAPP

analysis of information including foregroundapp usage (face time), data traffic (cellular and

Wi-Fi), location (home, away and travelling), as

well as voice and SMS usage. Specifically, we set

out to understand the use of IP communications

services and their relationship with traditional

voice and messaging services.

3. See Analysys Masons Consumer smartphone usage 2014: OTT communication services. Available at www.analysysmason.com/CSU-OTT-2014.

Take-up of WhatsApp Messenger is high in Europe,

particularly in Germany, where 90% of our panellists

used it, the Netherlands and Spain. The UK

messaging market is on the same trajectory.

IP messaging services are rivalling social

networking services in terms of penetration in some

countries. For example, IP messaging services

were used by 95% of panellists in Germany, and

80% in the UK. In both countries, penetration of IP

messaging services is relatively high across age

groups, reflecting their mass-market appeal as

alternative messaging services.

A major reason for the high levels of commercial

interest in the messaging sector is the level of

engagement among users of the apps. The leading

messaging app, WhatsApp Messenger, has a very

high daily average usage (18.3 minutes), higher

than Facebooks industry benchmark (an average

of 18.1 minutes per day among our panellists and

a penetration of 78% of panellists). As a matter of

fact, user engagement has become one of the most

important metrics used to quantify success in the

4.1 IP messaging services rival social networking services in terms ofpenetration and engagement

digital economy, and it is one of the primary reasons

why Facebook acquired WhatsApp for a remarkable

USD19 billion in stock and cash in February 2014.

Social messenger apps, such as KakaoTalk,

Line and WeChat, also show high levels of daily

usage, despite low penetration rates. These

services combine communication features

such as group chat and picture sharing with

features often associated with social networking

platforms, such as timelines and shared gaming.

The providers of these services have aggressive

expansion plans and significant marketing spendbehind them. They may yet displace WhatsApp in

some Western markets.

WhatsApp also demonstrates its potential for

very frequent usage, further enhancing its appeal

as a platform: we were able to measure the

percentage of app users who were daily users

during our observation period. In Germany, 90%

of our panellists used WhatsApp and 82% of them

accessed the service on a daily basis. The service is

clearly embedded in peoples everyday lives.


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THE DIGITAL ECONOMY

In China, Tencent is the leading one-stop shop

online destination, having gained substantial scale

across a range of activities. As of March 2014, it had

868 million monthly active users (MAUs) for its QQ

IM service, 644 million MAUs for its Qzone social

network, 396 million MAUs for its Weixin (WeChat)

OTT communications services, as well as 6.9 million

average concurrent users for its advanced casual

games (see Figure 6).

Tencent is an Internet giant in China, but is little-

known in the rest of the world. However, it hasstarted targeting overseas markets, primarily by

launching WeChat (the international version of

4.2 OTT players in Asia are posing a potential competitive threat in areasother than messaging

Weixin), which had 100 million registered users

in August 2013. Tencents recent revenue growth

is partly driven by overseas expansion Tencent

did not generate any international revenue in

2010, but 7.4% of its total revenue was generated

abroad in 2013. Tencent will be able to capitalise

on the approximately 50 million overseas Chinese

to establish a beachhead abroad, but Analysys

Mason believes that it will be difficult for Tencent

to enter the mainstream as a truly worldwide

player, because of Tencents relatively weak

position abroad compared with well-establishedcompetitors, such as Amazon, Apple, Facebook

and Google.

pFIGURE 6: Tencent user base by service, March 2010 to March 2013 [Source: Analysys Mason, 2014]

MAR2010

MAR2011

MAR2012

MAR2013

MAR2014

JUN2010

JUN2011

JUN2012

JUN2013

SEP2010

SEP2011

SEP2012

SEP2013

DEC2010

DEC2011

DEC2012

DEC2013

0

USERSMILLIO

N

100

200

300

400

500

600

700

800

900

QQ

WEIXIN AND WECHAT

QZONE

FEE-BASED VALUE-ADDED SERVICE


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THE DIGITAL ECONOMY

4.3 Tencent uses a freemium business model to attract users that arethen monetised through its diverse range of activities

The launch of Weixin and WeChat has enabled

Tencent to gain a solid foothold among mobile

subscribers, accelerating the companys

transition from PC-based to mobile Internet

services. WeChat is one of Tencents major

growth drivers, as Internet usage shifts from

the PC to mobile devices. According the state-

affiliated research organisation China Internet

Network Information Center (CNNIC), 81% of

all people who go online in China do so via a

mobile device, while 73% of new Internet users

in 2013 came online via mobile.4WeChat willensure that Tencent continues to be one of the

largest Internet companies in the world and

not lose relevance. Tencent could gain even

greater control over its subscribers if it chooses

to become an MVNO, thus exerting further

competitive pressure on mobile operators.

The free core basic service acts as the gateway

to Tencents other services, drawing users to

its wide range of paid-for value-added services,

such as games and membership levels that give

users additional features, content and status.

Many of Tencents Western peers primarily rely

on advertising, but Tencent is very successful in

monetising its user base through its value-added

services, which accounted for just under three-

quarters of its revenue in 2013. The diversity of

these value-added services, such as social games,

video and music, generates stickiness by catering

for a wide range of online activities, encouraging

users to spend more time on the site.

Tencent aims to upsell users to paid-for value-

added services, notably gaming and additional

features such as tiered membership levels

and personalisation options, which enhancethe users status within the online community.

The community is further monetised through

advertising, notably display and search advertising

on Tencents online properties and services.

Tencent started focusing on ecommerce in early

2012, in order to generate additional revenue

streams, both from users and merchants.

This wide variety of activities, and international

expansion, brings new competitive pressures

for mobile operators in China and the West,

highlighting the challenges of protecting core

services in an ever-shifting and increasingly

globalised landscape.

4. China Internet Network Information Center (CNNIC) (April 2014), Statistical report on Internet de velopment in China. Available at www1.cnnic.cn/IDR/ReportDownloads/201404/U020140417607531610855.pdf.


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THE DIGITAL ECONOMY

Telecoms operators already have the

communications infrastructure necessary to

support digital economy services. However, they still

need a new generation of software, based more on

IT than communications technologies. Three types

of software will be required to power the digitaleconomy service offerings of telecoms operators.

nSoftware that generalises the concept of service

delivery platforms (SDPs) and provides digital

economy-enhanced services to consumers and

enterprises. Much of this software will run in

virtualised environments and some will be offered

to customers as a service SaaS or PaaS.

nNew OSS and BSS software, as well as

enhancements to existing systems, to provide

the operations support for new service offerings.

Telecoms operators will need to decide where the

new systems are needed or whether they can extend

established systems to support these new areas.

5.SOFTWARE IS THE KEY TODIGITAL ECONOMY SERVICES ANDOPERATIONS

nNew digital economy enablement software,

with open APIs to digital economy ecosystem

partners. These APIs will open the interfaces of

existing systems, provide normalised interfaces

across multiple operating companies of multi-

regional players, and provide standardisedinterfaces across multiple operators that each

operate in their own region. This represents

a new class of software, the future of which

depends on standards being set.

Analysys Masons analysts in the Digital Economy

Software Strategiesresearch programme will

carefully follow how key operators are successfully

implementing these functions, as well as the

offerings of vendors to help them.


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THE DIGITAL ECONOMY

Five Analysys Mason research programmes cover

different aspects of the digital economy (see Figure 7).

nDigital Economy.Addresses the issues around

maximising the opportunities in digital economy

markets for operators.

nDigital Economy Software Strategies. Examines

the real-world operational steps necessary for

software systems to produce business benefits.

nIoT and M2M Solutions.Examines how operators,

vendors and service providers can implement

best practices and understand the opportunity in

providing IoT and M2M solutions.

6.ANALYSYS MASON COVERSTHE DIGITAL ECONOMY IN FIVERESEARCH PROGRAMMES

nNext-Generation Services.Helps service

providers, vendors, regulators and other players

to understand and prepare for the dramatic

changes that communications and media

markets are undergoing.

nAnalytics Software Strategies.Provides research

on, and in-depth analysis of, trends and vendors

in the analytics market, as well as examples of

how operators and CSPs use analytics solutions.

DIGITALECONOMY

nMobile financialservices

nMobilecommerce

nMobile health

nSmart homesecurity andenergy

nMobileadvertising

CONSUMER SERVICES ENTERPRISEAND M2M

TELECOMS SOFTWARE STRATEGIES

NEXT-GENERATIONSERVICES

nOTT services

nWebRTC

nMobile identity

nTech-enablersfor comms.services

loT and M2MSOLYTIONS

nAutomotive

nSmart cities

nSmart homeenergy

nM2M and loT

DIGITALECONOMYSOFTWARE

STRATEGIES

nFramework

nDirect carrierbillingoperationalinterfaces

nMVNO interfaces

nDE softwareplatforms

nCloud servicebrokers

ANALYTICSnAnalytics

market sizeand marketshares

nBig data: stateof market

nFraud andrevenueassurance

pFIGURE 7:Analysys Masons digital economy research by programme [Source: Analysys Mason, 2014]


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THE DIGITAL ECONOMY

Enrique Velasco-Castillo(Analyst) is a key contributor to Analysys Masons Digital

Economy research, focusing on the opportunities for communications service providers

and vendors in emerging verticals such as mobile health, payments, commerce, and home

automation and security. Previously, Enrique covered mobile financial services and M&A

and funding activity for more than 2 years at research firm IHS, where he wrote several

reports on the opportunities for mobile operators in mobile payments and venture capital

investments in mobile. Enrique also has research experience in cleantech and healthcare

from other previous roles.

Martin Scott(Practice Head) is the head of Analysys Masons Consumer Services researchpractice, which includes the Fixed Broadband and Multi-Play, Next-Generation Services, Mobile

Services, Mobile Devices and Digital Economy research programmes. His primary areas of

specialisation include the bundling and pricing of multi-play services, including quadruple-play

bundling, customer satisfaction and consumer-facing marketing strategy. He also specialises

in statistics, surveys and the analysis of primary research; he co-ordinates Analysys Masons

Connected Consumer and Consumer smartphone usage series of research.

Mark H Mortensen(Practice Head) is the lead analyst for Analysys Masons Customer Care,

Service Fulfilment and Digital Economy Software Strategies research programmes, which are

part of the Telecoms Software research stream. His interest areas include customer self-

service, new telco businesses entering the digital economy value chain, and network planning

and optimisation. The first 20 years of Marks career were at Bell Laboratories, where he

distinguished himself by starting software products for new markets and network technologies

and designing the interaction of BSS/OSSs with the underlying network hardware. Mark was

Chief Scientist of Management Systems at Bell Labs, and has also been president of his

own OSS strategy consulting company, CMO at the inventory specialist Granite Systems, VP

of Product Strategy at Telcordia Technologies, and SVP of Marketing at a network planning

software vendor. Mark holds an MPhil and a PhD in physics from Yale University and has

received two AT&T Architecture awards for innovative software solutions. He is also an adjunct

professor at UMass Lowell in the Manning School of Management, specialising in business

strategy. Mark has also participated on the GSMA Global Mobile Awards judging panel.

Stephen Sale(Principal Analyst) is the lead analyst for Analysys Masons Mobile Services and

Next-Generation Services research programmes. His primary areas of specialisation include

next-generation communication services, over-the-top (OTT) player strategies and mobile pricing.

He also has extensive experience in analysing mobile operator strategies and forecasting mobile

service markets. Before joining Analysys Mason in 2004, Stephen worked in the industry on areasthat include VoIP, next-generation service architecture and broadband access. He has a degree in

economics and an interdisciplinary MRes from the University of London.

John Abraham(Senior Analyst) is part of the BSS practice in Analysys Masons Telecoms

Software Research team. He leads our Revenue Management programme and contributes

to mobile money research for the Digital Economy Software Strategies programme. John

has been part of the telecoms industry since 2006, and joined Analysys Mason in early

2012. He has worked on a range of telco projects in Africa, Europe, India and the Middle

East. Before joining Analysys Mason, he worked for Subex, a provider of BSS offerings.

John holds a bachelors degree in computer science from Anna University (India) and an

MBA from Bradford University School of Management

ABOUT THE AUTHORS


19/20


20/20


THE DIGITAL ECONOMY

analysysmason.com

@analysysmason

linkedin.com/company/analysys-mason

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