Digital transformation is deepening as increasing numbers of telcos strive for growth through digital services. Huawei has launched its Digital inCloud strategy and solution to help telcos accelerate digitization, aggregate partners, build digital ecosystems and infrastructure, and gradually expand into other industries.
Global telco experiences in the digital wave
Some telcos are opening up their own capabilities or integrating third-party capability resources to monetize their network and user assets and expand into new markets. America Movil has built its AM hub to integrate and open its operational capabilities in 17 countries to its global partners. Orange and AT&T, both multi-national telecom groups, have launched the capability openness platforms Orange Partner and AT&T Developer to extend sales from services to capabilities. MTN Group has evolved its existing services and enabled its open platform to launch over 3,000 digital services, greatly enriching MTN's content offerings. China Unicom launched the WO+ platform, opening its capabilities and resources to individual and enterprise developers and third-party capability providers, for which 15 types of APIs were launched by mid-2014, making for new service revenue streams.
Others are using their own businesses to aggregate partners and build an industry service marketplace that offers applications in areas such as digital media, video, smart home, finance, and healthcare. AT&T Digital Life offers personalized home security and automation packages that allow users to manage door locks, monitor their homes, and control their household utilities.
China Mobile has established Migu, an entertainment and technology service platform, to improve its content business by integrating music, video, reading, gaming, and comics. Moreover, China Mobile aggregates industry partners on one platform and achieves profitability through revenue sharing. DOCOMO rolled out D-market, where users can find content and applications in 14 categories; to date it has attracted over seven million users. The proportion of revenues it generates from digital services increased from 14.2% in 2013 to a forecasted 18% in 2014.
Digital inCloud: Enriching digital business
Huawei Software is strategically positioned as the best partner for managing and monetizing user assets, aiming to help telcos achieve business success in digital transformation and enrich the digital business conducted by operators. To achieve this goal, Huawei has launched its Digital inCloud strategy and solution.
Digital inCloud provides an open service platform coupled with operation support services to help telcos achieve digital transformation. The solution features an open platform, a partnership alliance, and operation support services.
The open platform allows telcos to design business scenarios for network assets and user assets, making these assets available in digital marketplaces so that industry partners can easily shop for telco capabilities. Examples include:
Big data openness service: Open information is analyzed based on big data analytics, including location tags, interest tags, and credit tags to partners. Advertisers are interested in this data because it can help them target individuals with ads and monitor ad efficacy. This type of application is now widely used by Internet advertisers and finance product vendors.
Business support service: Customer relationship management, billing capabilities, and user authentication and charging capabilities are offered by telcos to third-party partners. Charging capabilities are popular with gaming vendors and online retailers because they require a quick payment function. What's more, telcos have high credibility and provide reliable network facilities.
IoT service: Telcos can open SIM card capabilities for Internet of Vehicles (IoV) vendors such as VW and BMW.
The Global Partnership Alliance bridges telcos and partners to facilitate telco business development in the digital business ecosystem. The program provides various services ranging from partner recruitment and service launch to service promotion and operational support. These can drive telco business development in the areas of digital music, traffic monetization, TV and video, open APIs, enterprises, and vertical industries. To date, the inTouch® partnership program has aggregated over 2,000 partners and 146,000 applications, including over 9,000 games, 200,000 songs, and 100 enterprise applications. This program helps telcos build a solid foundation for additional content and partners.
Tailored solutions target different markets. In mature markets where telcos have built their own ecosystems, Huawei provides an end-to-end technical platform and operations consulting services. Moreover, Huawei's partnership program can supplement telcos' digital ecosystems.
In emerging markets where the digital ecosystem is not yet formed, Huawei provides a one-stop solution that includes a technical platform, partner aggregation program, and operations services.
Benefits of Digital inCloud
Thanks to its openness, bridging capability, and efficiency, the Huawei Digital inCloud provides an open platform to help telcos transform into digital service providers. A unified and open platform makes telco assets available to partners, leading them from a closed business environment to an open digital ecosystem. This in turn expands the market landscape and creates more value.
Digital inCloud also bridges telcos and partners to enrich service offerings. The Global Partnership Alliance connects more partners and resources, and has so far bridged over 2,000 partners with 250,000 content items.
This solution also helps telcos improve operating efficiency by streamlining digital business processes, which generates more revenue streams from digital business operations. To respond to changing customer requirements in the digital ecosystem, Huawei helps telcos to streamline digital business operation processes, external integration processes, and new business launch processes to reduce time-to-market and quicken market response.Huawei's Digital inCloud, winner of the 2015 TM Forum Excellence Award in the Open Digital Ecosystem, has proved to be effective at helping telcos explore and create new business models, ecosystems, and organizational structures. Then telcos can apply their core advantages in networking and customers, aggregate partners, build ecosystems and digital infrastructures, and gradually expand their scope of business.