The Future Value of Voice and Messaging

Background – ‘Voice and Messaging 2.0’

This is the latest report in our analysis of developments and strategies in the field of voice and messaging services over the past seven years. In 2007/8 we predicted the current decline in telco provided services in Voice & Messaging 2.0 “What to learn from – and how to compete with – Internet Communications Services”, further articulated strategic options in Dealing with the ‘Disruptors’: Google, Apple, Facebook, Microsoft/Skype and Amazon in 2011, and more recently published initial forecasts in European Mobile: The Future’s not Bright, it’s Brutal. We have also looked in depth at enterprise communications opportunities, for example in Enterprise Voice 2.0: Ecosystem, Species and Strategies, and trends in consumer behaviour, for example in The Digital Generation: Introducing the Participation Imperative Framework.  For more on these reports and all of our other research on this subject please see here.

The New Report


This report provides an independent and holistic view of voice and messaging market, looking in detail at trends, drivers and detailed forecasts, the latest developments, and the opportunities for all players involved. The analysis will save valuable time, effort and money by providing more realistic forecasts of future potential, and a fast-track to developing and / or benchmarking a leading-edge strategy and approach in digital communications. It contains

  • Our independent, external market-level forecasts of voice and messaging in 9 selected markets (US, Canada, France, Germany, Spain, UK, Italy, Singapore, Taiwan).
  • Best practice and leading-edge strategies in the design and delivery of new voice and messaging services (leading to higher customer satisfaction and lower churn).
  • The factors that will drive best and worst case performance.
  • The intentions, strategies, strengths and weaknesses of formerly adjacent players now taking an active role in the V&M market (e.g. Microsoft)
  • Case studies of Enterprise Voice applications including Twilio and Unified Communications solutions such as Microsoft Office 365
  • Case studies of Telco OTT Consumer Voice and Messaging services such as like Telefonica’s TuGo
  • Lessons from case studies of leading-edge new voice and messaging applications globally such as Whatsapp, KakaoTalk and other so-called ‘Over The Top’ (OTT) Players


It comprises a 18 page executive summary, 260 pages and 163 figures – full details below. Prices on application – please email contact@telco2.net or call +44 (0) 207 247 5003.

Benefits of the Report to Telcos, Technology Companies and Partners, and Investors


For a telco, this strategy report:

  • Describes and analyses the strategies that can make the difference between best and worst case performance, worth $80bn (or +/-20% revenues) in the 9 markets we analysed.
  • Externally benchmarks internal revenue forecasts for voice and messaging, leading to more realistic assumptions, targets, decisions, and better alignment of internal (e.g. board) and external (e.g. shareholder) expectations, and thereby potentially saving money and improving contributions.
  • Can help improve decisions on voice and messaging services investments, and provides valuable insight into the design of effective and attractive new services.
  • Enables more informed decisions on partner vs competitor status of non-traditional players in the V&M space with new business models, and thereby produce better / more sustainable future strategies.
  • Evaluates the attractiveness of developing and/or providing partner Unified Communication services in the Enterprise market, and ‘Telco OTT’ services for consumers.
  • Shows how to create a valuable and realistic new role for Voice and Messaging services in its portfolio, and thereby optimise its returns on assets and capabilities


For other players including technology and Internet companies, and telco technology vendors

  • The report provides independent market insight on how telcos and other players will be seeking to optimise $ multi-billion revenues from voice and messaging, including new revenue streams in some areas.
  • As a potential partner, the report will provide a fast-track to guide product and business development decisions to meet the needs of telcos (and others).
  • As a potential competitor, the report will save time and improve the quality of competitor insight by giving strategic insights into the objectives and strategies that telcos will be pursuing.


For investors, it will:

  • Improve investment decisions and strategies returning shareholder value by improving the quality of insight on forecasts and the outlook for telcos and other technology players active in voice and messaging.
  • Save vital time and effort by accelerating decision making and investment decisions.
  • Help them better understand and evaluate the needs, goals and key strategies of key telcos and their partners / competitors


The Future Value of Voice: Report Content Summary

  • Executive Summary. (18 pages outlining the opportunity and key strategic options)
  • Introduction. Disruption and transformation, voice vs. telephony, and scope.
  • The Transition in User Behaviour. Global psychological, social, pricing and segment drivers, and the changing needs of consumer and enterprise markets.
  • What now makes a winning Value Proposition? The fall of telephony, the value of time vs telephony, presence, Online Service Provider (OSP) competition, operators’ responses, free telco offerings, re-imaging customer service, voice developers, the changing telephony business model.
  • Market Trends and other Forecast Drivers. Model and forecast methodology and assumptions, general observations and drivers, ‘Peak Telephony/SMS’, fragmentation, macro-economic issues, competitive and regulatory pressures, handset subsidies.
  • Country-by-Country Analysis. Overview of national markets. Forecast and analysis of: UK, Germany, France, Italy, Spain, Taiwan, Singapore, Canada, US, other markets, summary and conclusions.
  • Technology: Products and Vendors’ Approaches. Unified Comminications. Microsoft Office 365, Skype, Cisco, Google, WebRTC, Rich Communications Service (RCS), Broadsoft, Twilio, Tropo, Voxeo, Hypervoice, Calltrunk, Operator voice and messaging services, summary and conclusions.
  • Telco Case Studies. Vodafone 360, One Net and RED, Telefonica Digital, Tu Me, Tu Go, Bluvia and AT&T.
  • Summary and Conclusions. Consumer, enterprise, technology and Telco OTT.

Voice & Messaging 2.0: New API Use Cases

Summary: ‘Communications-Enabled Business Processes’ (CEBP) are a key application for voice and messaging APIs. This Briefing Report illustrates three new real world examples of integrating communications into end-user business applications using web services to access telco APIs. (February 2010, Foundation 2.0, Executive Briefing Service)

Overview

‘Communications-Enabled Business Processes’ (CEBP) is an optimisation technique used by business process designers that involves integrating real time communications such as voice messaging, online chat and SMS with existing software frameworks. It is a developer / end-customer application of telco APIs in Telco 2.0 business models.

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The Maturity Path of Voice APIs

In general, enterprise CEBP projects do not create new business processes or areas of business. Instead, they extend existing legacy applications making them more efficient and faster, and very often with higher overall quality.  As a powerful addition, CEBP projects provide business metrics allowing managers to optimise processes in real time. From a technology perspective, CEBP is a blend between two normally disparate worlds: the real-time, arcane and difficult technology of the telephone and the thorny, legacy filled and customised enterprise software.

Three New ‘Use Cases’

This report describes three distinct CEBP implementations and opportunities:

  • an in-store feedback service
  • a decision support application
  • a resource tracking opportunity

The in-store feedback service uses phones and text messaging to collect comments and complaints from retail customers using any cell phone.  The decision support application provides mobile and remote decision makers the information they require to make critical business decisions without having to be at their desk. The resource tracking opportunity shows how phones can be used to monitor and manage the use of enterprise resources quickly, easily and at scale.

Telco 2.0 ‘Take-Out’

  • The field of ‘Communications-Enabled Business Processes’ (CEBP) represents an important near-term market opportunity for telcos building business models that develop core voice and messaging APIs.
  • Building a successful Developer Programme is critical to the successful application of CEBP because of the wide variety of enterprise customers and processes to which it is applied.
  • The three detailed ‘Use Cases’ described in this report illustrate some of the many opportunities for Telecoms Operators and others to create new value in the enterprise market by building the appropriate ecosystem of APIs, Developer Programme (technical and commercial support), and Developer Community.

Introduction

The term Communications Enabled Business Process (CEBP) is relatively new, but the need is as old as business itself. CEBP is an optimisation technique used by business process designers that involves integrating real-time communications such as voice messaging, online chat and SMS with existing software frameworks.

In general, enterprise CEBP projects do not create new business processes or areas of business. Instead, they extend existing legacy applications making them more efficient and faster, and very often with higher overall quality. In addition, CEBP techniques allow managers to measure business processes in real time, providing visibility into key business metrics that would be otherwise unavailable. From a technology perspective, CEBP is a blend between two normally disparate worlds: the real-time, arcane and difficult technology of the telephone and the thorny, legacy-filled and usually customised enterprise software.

Using CEBP techniques, system integrators and enterprise developers can realise productivity gains typically unavailable using other technology approaches, providing strong motivation for them to invest in such projects. Of course, dynamic connections between businesses and customers using phones are not new; the existing contact centre market is huge and mature.

CEBP is the next natural step in the development of this market, driven by advances in Internet and integration technologies, and can be viewed as roughly equivalent to the movement away from computer punch cards towards tape drives and hard disks: instead of requiring human beings to be present for every interaction, some business to human communications can be automated.

To read the full Executive Briefing report, covering…

  • The Evolution of Enterprise Business Processes
  • Voice: the Universal User Interface
  • CEBP 1.0 – and its Limits
  • The Rise of CEBP 2.0
  • Corn and the food-chain: a Metaphor for Voice
  • In-Store Feedback – ‘Use your Mobile Now’
  • How CEBP addresses current retail store limitations
  • Key Benefits of the service to consumers and retailers
  • Implementing the In-store Feedback Solution
  • Building the In-Store Feedback business case
  • Immediate Decision Support
  • How CEBP addresses current system limitations
  • Key Benefits to Managers and Business Analysts
  • Implementing the Service
  • Building the Business Case
  • Resource Tracking
  • Problems Solved and Business Case Drivers
  • How it Works
  • Real World Implementations
  • Telco 2.0 Conclusions & Recommendations

Members of the Telco 2.0 Executive Briefing Subscription Service can download the full Executive Briefing report here. Non-Members, please  email contact@telco2.net or call +44 (0) 207 247 5003.