White paper

What
customers want

Put the customer

at the heart of your business
 Contents

3 Summary – customers are searching

for an enriched experience

4 Why become even more

customer-centric?

5 What customers are doing –

and what they intend to do

9 What do customers need –

and prefer?

12 What are the implications

for service providers –
and how they can differentiate?

2 What customers want

 Summary –
customers are searching for
an enriched experience
This paper describes the disruptive
trends in user behavior and needs
based on our worldwide market
insights. It then uncovers the
implications and opportunities for
service providers by enriching the
experience of their customers.1)
Customer behavior is changing rapidly,
with users moving beyond simple
voice services and being willing to
pay for more advanced applications.
The penetration of broadband services
is rising and bandwidth consumption is
growing quickly, driven by well known
Internet platforms such as Facebook,
MySpace and YouTube. Consequently,
customers are accessing the same
set of Internet services regardless of
what device and access technology
they are using.
A major move into the digital lifestyle
is taking place through “Web2.0”, the
Internet as a platform on which active
users connect to each other in social
networks and share self-generated or
selected content. People are always
connected and shift a part of their life
on the web. Web based communication
is already cannibalizing the use of
conventional telecommunications
services.
1) For more details, see also the Nokia Siemens Networks Whitepaper
“Enriched Customer Experience” , 2009
As we move into this digital lifestyle,
customers are faced with a growing
number of use cases, applications,
services, technologies and devices.
Today’s digital life is complicating the
life of the majority of people, leading
users to demand greater simplicity.
There is a contradiction between the
potential options of new technologies
– the digital freedom – and the
demands of customers to manage
the proliferation of these options.
Effective enrichment of the customer
experience requires deep insights into
customer motivations and preference,
as the need for simplicity differs
according to customer segments.
Major service innovations are
taking place on the Internet, but
communications service providers
(CSP) have the opportunity to simplify
the use of the many Internet based
services and media for their
customers. CSPs can increase the
lifetime value of their customers by
providing the right tools for the
efficient organization of numerous
communications channels and
content. They can do this by granting
instant easy selection of and access
to the right piece of information,
context sensitivity and efficient
multi-tasking. Providing solutions for
these customers’ needs represents
tangible business opportunities for
creative CSPs.
What customers want 3
 Why become even more
customer-centric?

Customer orientation is at the top of The necessity of customer orientation

CSPs’ agenda worldwide. 33% of
Nokia Siemens Networks’ customers
state that customer orientation is their
primary goal for the future.2)
A positive customer experience
boosts long term profitability in a
number of ways:
• Profitability of the customer base:
Excellent satisfaction rates drive
customer loyalty and decrease the
costs associated with churn and
enables the harvesting of long-term
customer relationships.
• New service revenues: Positive
experiences boost service take-up
and usage. However, most service
and business model innovations
as potential sources of new
revenues are taking place on the
Internet, so the challenge is how to
cope with that.
• Brand building: Verbal
communication has a high impact
in the age of Web2.0.
• Competitive differentiation: Price
competition remains fierce. In many
markets, there are signs that price
decreases are slowing down,
but price is still the dominant
driver in competition. The ability to
provide “sticky” services lowers
the dependency on low prices.
has increased still further under the
current tough market conditions,
which are heavily influenced by the
economic crisis. CSPs need to be
extremely effective in all customer
related activities, such as meeting the
needs of the most valuable customers
in an excellent yet cost-effective way.
How can CSPs improve their
customer orientation and enrich their
customers’ experience to stand out
among the competition? According to
Ovum “…telcos offer comparable
products and services, so good
customer service and positive
customer experience are among the
few avenues for differentiation.”3)
This requires a deeper insight into
what the customers are doing and
what they want. What are the major
trends in user behavior?

2) Nokia Siemens Networks, Business needs study, 2008

3) Ovum, How the telco can provide an excellent customer experience, 2008

4 What customers want

What customers are doing –
and what they intend to do
Usage and willingness-to-pay
is shifting beyond voice
Among Internet users in developed
countries, the majority of spend on
communications and infotainment
services are not directly related to voice.
Instead, they are either for Internet,
TV or bundles without a dedicated
price tag for voice.4) The structure of
customers’ budget in terms of time
and usage is also changing quickly.
In the UK for example, our monitoring
of the real life usage of mobile
smartphone users indicates a heavy
increase in using music, maps, e-mail
and browsing from 2005 to 2008.
In 2008, over 40% used e-mail actively
compared to less than 10% in previous
years. There has also been a heavy
increase of non-communication usage
time of the terminals, from 30% to 52%.
Figure 1. High bandwidth services have highest growth. Source: Nokia Siemens Networks Broadband survey, Germany, 2008. (n=709)
Application usage – at home
in %
Browsing & searching
Reading/sending e-Mails
Downloading music/photos 11
Downloading videos 5 11
Streaming video 9 18
Uploading music & photos 7 16
Playing online games 15
IP Telephony 13 14
Daily / almost daily At least once per week
4) Nokia Siemens Networks, Broadband study, 2008
5) Nokia, Smartphone360 panel, 2008
6) Nokia Siemens Networks, Broadband study, 2008
The number of active browser users
has increased from 56% to 88% and
between 2007 and 2008, browser data
usage increased four-fold. This is a
clear indicator that the usage patterns
are changing quickly.5)
Broadband penetration and
bandwidth consumption is
increasing
Broadband is booming in developed
as well as in emerging markets, with
new collaborative and interactive
multimedia web applications driving
broadband deployments. In particular,
the explosive growth in the use of video
services is filling broadband access
networks and backbones. We estimate
traffic will increase 100 fold by 2015.
For fixed broadband, subscriber
growth is slowing down, but at the
same time we see accelerated
77
85
22 27 17
17 20
19 15
26 19
15 14 12
11 9 50
At least once per month At least once per year
traffic and bandwidth growth in fixed
broadband. In emerging markets,
about half of Internet users plan to
upgrade their connection during the
next 12 months. In developed markets
the share of upgraders is about 40%.
As a rule of thumb, the lower the
current access speed, the higher the
willingness to upgrade. The reason is
the increased usage of high bandwidth
applications such as video downloading
and streaming, music and photos,
as well as IP telephony.6) Figure 1
In parallel with this, mobile broadband
is taking off and is used in a
complementary way to fixed broadband
in most markets. In emerging markets
about 5% of the fixed Internet users
are also accessing the Internet on
the go and in total, 30% are interested
in doing so within 12 months. The
corresponding figures in developed
markets are 18% and 30%.
Increase of regular users in
12 months – percentage points
All users Upgraders
16 4 1 1
10 1
21 3 2 4
42 5 5 6
37 4 3 6
29 4 6 6
42 2 2
4 9 12
Never / don’t use this application Don’t know
What customers want 5
 Users are increasingly
technology and device agnostic
Customers use a growing variety of
device types to capture, display,
store and share content over multiple
network connections, including DSL,
cable, WLAN, WiFi and cellular.
Customers do not distinguish between
fixed and mobile in their usage
patterns. They basically use identical
services, applications and web sites
regardless of their mode of access
and type of device and do not
generally care about the underlying
network technology. For example in
the UK, the trendiest services on the
go are the popular Internet services
such as Google, BBC, Facebook and
YouTube, meaning that people are
using exactly the services they use on
the fixed Internet.7) This is a clear trend
in all observed markets.8) Figure 2
Multi-play service bundles
are extremely popular
Customers readily accept service
bundles consisting of fixed voice,
Internet, TV and/or mobile voice.
The motivation for bundle subscription
is simplicity: cost transparency,
a perceived discount and the
one-stop-shopping experience.
The high rate of bundle penetration
goes hand-in-hand with a high
penetration of flat rates. Figure 3

Browsing & searching the web

Reading/sending e-Mails

Downloading music
Downloading videos
Watching TV programs
Uploading music files
Playing online games

Daily / almost daily At least once per week At least once per month At least once per year Never / don’t use this application Don’t know

Figure 2. Similar application usage in fixed and mobile

Figure 3. Multi-play bundles are extremely popular. Source: Nokia Siemens Networks Broadband survey 2008.

Bundle penetration (%) Top 3 packages (%) Type of Internet tariff (%)

Developed markets (n=3845)

22 7
Fixed telephone
52
+ Internet

42 Fixed telephone
58 18
+ Internet + IPTV
87
Fixed telephone
9 Flatrate
+ Internet + Mobile phone (n=2229)
Rate based
on volume
Rate based
Emerging markets (n=2833) on time
Other
3 6
Fixed telephone Don’t know
36
27 + Internet 13
Fixed telephone
16
+ Internet + Mobile phone 10
73 67
Fixed telephone
9
+ Internet + IPTV (n=1161)

7) Nokia, Smartphone360 panel, 2008

8) Nokia Siemens Networks, Broadband study, 2008

6 What customers want

 Strong user Search and
engagement UGC replacing
media company
control
ity In
un dis di
The level of involvement is m ction c

vid very
a

inte m

o
Co

ual
r
increasing among customers
Web2.0
The good news for CSPs is that the service
providers

M u l e nt
market has become 25% more

ori

io n
pt e
amenable to new Internet and mobile

ti m

l
at e dia

services. Customers are generally
more interested in new services and
features and are experimenting with
the Internet and their mobile handset
– their attitude has shifted from “easy
to do” to “easy to learn”. The number
of “non-reachable” customers is
diminishing. For the growing number
of highly involved customers the
Internet and their handset are no
longer a tool, they are an indispensable
part of their lives. These users also
play an active part in the Web2.0, such
as becoming involved in making, trying
and improving new applications.9)
The Web2.0 is changing the
customer experience
The Web2.0 is part of our life and
Web2.0 services are changing the
nature of the Internet rapidly. “Web2.0”
stands for an active usage behavior
in four dimensions:
• Strong user engagement in social
networks with intensive
communication over various
channels. There is a clear shift from
locally defined communities to
virtual communities tied together
by common interests – the social
networking platforms Facebook,
Exploding
video usage
Figure 4. The Web2.0 is changing the customer experience.
MySpace and Hi5 occupy 5th, 6th
and 8th positions in the table of the
most popular websites.10)
• Individual media discovery, where
search and user generated content
are replacing media company
control. YouTube, a platform for
sharing user generated or selected
videos, has reached about 20%
penetration in advanced Internet
markets, the search engine Google
about 50%. Creation and sharing
of content is growing rapidly.
• Flexible consumption, meaning the
freedom to time-, place- and
device-shift usage according to
personal preferences. This is aided
by the growth in HSPA mobile
broadband usage. Another
contributing factor is the fact that
services such as IPTV, which
ib
x
io n Fle u m
s
con Usage is time-,
place- and
device-shifted
allows flexible time shifted
consumption, are gaining
substantial revenue growth in
Europe and Asia.
• Strong multimedia orientation with
focus on video: Most Internet
traffic volume is already video,
with some ISPs reporting that
video comprises some 90% of total
Internet traffic. YouTube alone is
reported to account for roughly
10% of the worldwide Internet
traffic.11) The growth in numbers of
users, especially of the video,
music and gaming driven
communities, results in an
exponential traffic growth, with
overall Internet traffic growing at
75% per year.12) Figure 4

9) Nokia, Segmentation study wave 3, 2008

10) www.alexa.com, April 2008
11) www.datacenterknowledge.com, 2007
12) Business Week, “Telecom: Back from the Dead“, 25.06.2007

What customers want 7


There are more than 450 million
registered social networking users
worldwide, meaning that about 40%
of worldwide Internet users are
currently engaged in social networks,
a figure that will reach 70% in 2012.13)
We can observe a trend towards
higher involvement in the area of
Internet and communication services:
People are doing more, more often.
Young people of 15 to 24 years of
age, the “digital natives”, play a major
role in trendsetting – they desire
more control over service usage,
independent of location and time
schedules. Digital natives are moving
away from linear formats like TV and
radio, are impatient, are searching
for overlapping media experiences
and want to actively express their
originality in Web2.0 communities.14)
8 What customers want
2 hrs 23 mins X1.9 4 hrs 25 mins
8% SMS
5%
18%
Text
53%
communications
Email IM
38% 57%
Wireless
75%
voice
21%
Wireline
(incl. VoIP)
26%
2000 2006
Figure 5. Estimated time spend on communications, per person, per week (France).
Source: Capgemini TME Strategy Lab analysis based on Arcep reports; iDATE, “Telecom 2.0: Emerging
Usages and implications for Carriers,” June 2006; MSN Report, “Europe’s Online Youth,” 2006.
Web based communication The appeal and variety of usage
is cannibalizing telco based scenarios for IM and VoIP in a Web2.0
world – such as chatting in virtual
communication
community rooms – is a threat to
According to estimates, in some profitable SMS and voice business.
markets about half of users’ time Additionally, the well-known Internet
spent on communication services is brands are gaining popularity in the
already occupied by Internet based mobile domain. For mobile users it is
messaging and VoIP services.15) all about mobile access to the Internet.
Instant Messaging (IM) is the fourth For example in the UK, operator
most popular Internet activity.16) services suffered a dramatic fall in
relative popularity, from 57% to 22%
of browsing users.17) Figure 5
13) Pyramid Research, Social Networking Goes Mobile“, 2008
14) CapGemini, Digital Natives Report, 2008
15) CapGemini, Digital Natives Report, 2008
16) After searching, Email and social networking,
European Interactive Advertising Association, 2007
17) Nokia, Smartphone360 panel, 2008
 What do customers need –
and prefer?

Customer experience –
60%
there is room for enrichment Threats Core strengths
Data service
Tariff quality
How can CSPs enrich the customer structure Customer incl. speed
care / after
experience to ensure profitability in & bundling
sales service
Relative weight on overall satisfaction

the long run? The actual customer 50%

Data Brand
experience can be displayed by costs Service
offerings
measuring the satisfaction and the Voice/reception
Importance

respective importance of the Call costs quality

experience drivers – as perceived by 40%
Improve Maintain
the customer. The mobile market in Handset
France, a typical example of a highly offerings
competitive market, shows the typical
levers for improvement: the portfolio of 30% Network
coverage
available services, the service quality,
the pricing and bundling as well as
customer care. Figure 6
Weaknesses Opportunities
20%
10% 15% 20% 25% 30% 35% 40%
Satisfaction level
A provocative statement: % of customers perceiving an excellent experience
Today’s digital life is
complicating the life of the Figure 6. Mobile customer experience in mature markets – example France. Source: Nokia Siemens Networks Pulse 2008.

majority of people

What is the underlying reason for
people perceiving a need for
enrichment? In general, people do not
feel that the digital life provides a
compelling experience in their
day-to-day usage, making their lives
easier. In detail the points are:
• Complex service and device
offers: People need to manage
an increasing variety of contacts,
communication channels,
community memberships, content
and media. Most people find it hard
to remember all these application
specific passwords, while different
media formats make it difficult to offerings. About 40% of Internet
share media. Device form factors, users worldwide would prefer
software offers and features are these integrated offerings and
increasing exponentially and many about 30% would be ready to pay
customers find it difficult to appropriate prices.18)
understand the benefits of the new
“gadgets” and how to use them Easy interactivity and the ability to
daily in a suitable way. Customers personalize the service and mobile
have to choose among an handset plays another key role.
increasing variety of fixed and A proof point is the success of
mobile services, which often exist devices that are tailored to Internet
in completely separate worlds. Pure usage. It is also astonishing that
fixed service bundles dominate the mobile handset users are less
market, but there is significant satisfied than laptop users when
interest and willingness-to-pay for asked about their broadband
combined fixed and mobile Internet usage.19)

18) Nokia Siemens Networks, Broadband study, 2008

19) Nokia Siemens Networks, Broadband study, 2008

What customers want 9


• Quality issues: The main drivers
of satisfaction for broadband usage
are the time for opening websites
(the response time of the network),
the stability of the connection and
the speed. In the wireless area,
customers mention issues such
as the stability of the connection,
the speed and the video quality.20)
The most evident wireless
disconnection problems occur in
buildings. Worldwide operator
experience and usage tracking of
the Nokia Smartphone360 clearly
show that the frequency of mobile
Internet use, the session length
and diversity of applications used
is affected by the quality of the
connection and the convenience of
the device. Besides price, service
quality is the most important barrier
in day-to-day wireless broadband
usage. Independent of the quality
issues, many people are not aware
of how and in which situations
they can use different access
technologies and how to connect
to them.
• Pricing and charging: Complex
tariffs and terms & conditions make
it difficult for people to find the tariff
that fits their personal preference.
The fact that the cost and the
price-benefit-ratio of many new
services is often not transparent to
customers is another major barrier
to their use, leading to late
adoption.
• Customer care: When a user has
chosen a device, the next barrier is
to configure it correctly, such as
setting the right access point.
10 What customers want
Motivation
Emotion / Pleasure
“Tasting” “Linking”
• Watch what is happening • Actively share
• Escape from daily life • Do more, live more
• Early and late majority intensively
Passive / Consumption
• Innovators, early adopters
Active / Exposure /
Participation
Sharing
Consumers Prosumers
“Connecting” “Managing”
• Necessity • Enabling new activities
• Need to be encouraged to • Actively seek solutions
find solutions • Early majority
• Non-adopters, laggards
and late majority
Efficiency / Problem solving
Traditional Basic values Modem
• Planning reliability • Fun & independence
• Tidiness • Performance
Figure 7. User differ according to their motivation for and the style of communication and media
consumption.
To sum up: Users demand more as fun and independence. On the
simplicity. There is a contradiction other side, we find people that are
between the potential options of new more passive. They are passive
technologies – the digital freedom – spectators of the experiences
and the demands of customers to created by others or they need to
manage the proliferation of options. be encouraged from the outside to
Effective enrichment of the customer use options and solutions provided
experience requires deep insights by the Internet.
into customer motivations and 2) The type of motivation to take
preferences. part in the digital life: Some are
searching for pleasure and fun,
to escape from daily life or seek
Simplicity needs differ according new experiences, for example
to customer segments linking themselves to new friends,
to chat or to explore “cool” things.
We can identify four customer At the opposite end of the spectrum
segments with different motivations there are people with a more
and patterns of service use.21) This rational attitude towards the digital
segmentation can be applied in nearly life. For them it is more about
all countries of the world – only the managing their daily life, private or
sizes of the segments differ. business, in a more efficient
manner. Figure 7
Customers can be segmented
according to two dimensions:
1) The degree of participation in the
digital life: There are people who
prefer to involve and share actively.
These are the typical “prosumers”
who are actively engaged in the
Web2.0 and keep the virtual social
networks alive. Usually these
prosumers believe in values such
20) Nokia Siemens Networks, Broadband study, 2008
21) Nokia, Segmentation study wave 3, 2008

There is an over-arching desire
to have more control over
services and flexibility in how
and when to consume
Consumers demand a straightforward
and clear set of options. They require
“bite sized” info push and more
passive TV style services with limited
interactivity options. Always on is not
required. There are two types of
consumer customers:
Pragmatic consumers – the
single push screen experience
Practical problem solving needs
predominate and the key to success
is the removal of entry barriers with
easy to use devices and services.
These customers require services
that help them with their daily routines
at a single click, pre-configured and
self explanatory.
Service examples are:
• Google Maps, linear TV, simple
standard messaging services such
as e-mail and SMS
• Standard broadband access at
home
Entertainment seeking
consumers – the personalized
screen experience
For these customers, one of the major
requirements is to be able to select
the right content. Entertainment is an
optimization task for them. Keys to
success are services that are
personalized and context aware,
facilitating choices with pre-defined
settings, play lists and selections of
games.
Motivation
Emotion / Pleasure
• How to get the best • How to master many simultanous
entertainment? activities?
• Short and easy available media
• Preference aware services • Multi-experience services
Passive / Consumption
• Personalized screen • Multi-activity-screen
Participation
Exposure
Active /
Consumers Prosumers
• How to make use of the Internet? • How to stay in control anytime?
• How to use interfaces and • Permanent access to personal
controls content, independent of the device
• Practical features without gimmicks • Result oriented services for
• Uni-tasking: efficient organizing
one experience at a time • Multi-screen
• Single push screen
Efficiency / Problem solving
Figure 8. Different experiences.
Service examples are: Service examples are:
• YouTube, Yahoo widgets, IPTV • Flickr, Google text and tabs,
with “smooth” interactivity” Wikipedia, unified messaging
• Standard or high capacity DSL • High capacity broadband access at
broadband access at home and home and always on connectivity
“light” mobile broadband for killing with mobile broadband on the move
time on the move • Same service look and feel
independent of device and access
Prosumers prefer to have all options
anytime and anywhere. Therefore
always-on is important. Prosumers are Adventure seeking prosumer –
active Internet users – often they are the multi-activity screen
“digital natives” – and therefore they
experience
need the possibility of “self composed”
info pull and communication services. These prosumers are experimental,
According to their motivation, two open to change and to discovering new
prosumer segments can be identified: kinds of experiences. The problem
now for them is how to master many
simultaneous experiences, meaning
Managing prosumer – that tools to easily link them to
the multi-screen experience different people in different Web2.0
communities and services that
The issue for these customers is how mash-up different applications to
to stay in control anytime and organize completely new services will match
their communication and content their needs perfectly. A single identity
sharing tasks. They need permanent across different web applications would
access to personal content and make their digital life considerably
services without dependency on the easier.
device and the access technology.
These prosumers therefore need Service examples are:
tools for multi-tasking and -sharing to • Hi5, MySpace, Xing, TheGrid,
achieve results efficiently. Facebook, Web.de MultiMessenger
• High capacity broadband access at
home and always on connectivity
with mobile broadband on the move
Figure 8
What customers want 11
 What are the implications
for service providers –
and how they can differentiate?
Today’s service bundles are
not future proven
Let’s summarize the needs of the
different segments: It is all about
simplification – in segment specific
flavors. CSPs can increase the lifetime
value of their customer by providing
the right tools for organizing their
customers’ multiple communication
channels and content efficiently. They
can do this by granting instant easy
selection and access to the right piece
of information, combined with context
sensitivity and efficient multi-tasking.
These customer needs represent
business opportunities for creative
CSPs by enriching their customers’
experience. However, there are also
some downsides as well a need to act
with urgency.
12 What customers want
Bundling strategies have so far been
quite successful in gaining market
share and increasing ARPU levels.22)
But the question is if pure connectivity
and access bundling is enough in the
long run.
• To secure ARPU levels?
No, because flat rates only
address a piece of the market –
beside the overwhelming
acceptance of service bundles
there is a willingness-to-pay on
top which is not addressed by
suitable top-ups.23)
• To differentiate in the market?
No, because today’s value
propositions such as price,
one-stop-shopping and speed are
becoming commodity features.
• To successfully reach yet untapped
users, especially the “digital
divide”? No, because new services
like mobile broadband have not yet
reached the entire mobile market.
• To be profitable in the long run?
No, because the cannibalization of
CSP revenues by “free of charge”
Internet communication platforms
is proceeding quickly, especially
among the “digital natives”.
22) Ovum, Future of the fixed broadband market, 2008
23) Nokia Siemens Networks, Broadband study, 2008
Simplifying the digital life –
a range of business
opportunities
As outlined, simplifying the digital life
of customers is key to standing out
from the competition by providing
customer value beyond today’s
services. How to provide this kind of
added value on top of today’s
connectivity services and bundles?
There are a number of obvious levers.
Some examples are given below:
• Irresistible services: The key to
reducing complexity in a Web2.0
dominated service landscape is to
overcome network and application
silos. This is particularly important
for the multi-screen and multi-
activity-screen needs of the
prosumers. There are several keys
to simplicity:
The first is convenient and
personalized access to the set of
Web2.0 services that matter to the
individual customer. Single-button
access can be facilitated by a single
identity, spanning over multiple third
party web services. Here the CSP
can act as a trusted identity broker.
On top of this there are various
options to facilitate the sharing of
content. Just imagine a service
where the members of a video
sharing community are able to
upload videos with a single key
click. All the steps such as
authentication, uploading the video
to the right place and alerting
friends are done automatically.
When customers become used to
such functionally, they are highly
likely to stay with the service
provider.
Furthermore, CSPs can combine
communication packages such as
business VoIP with features such
as a network wide address book
and enhanced messaging and
multimedia communication
capabilities. Industry initiatives like
the Rich Communication Suite
Initiative enable convenient use of
these kinds of services across the
boundaries of different clients,
networks and service provider
domains.
Mashing up different web
applications and telco capabilities
to services can create the benefit
of more relevance to the customer
than a single application, for
example by adding more context:
Think of a community where the
members can interact via different
types of messaging services,
independent of particular access
networks and clients, always
having the same look and feel.
Beyond this, members’ presence
and location information is made
available allowing them to leave
blogs, photos and video clips on a
virtual map. Of course with this
service, it is also possible to
organize real-life events and the
members’ MySpace and Facebook
profiles can also automatically be
integrated with it. All messages
and contacts from the various
social networks are available on a
single screen that can also be
personalized by the users.
• Quality with no boundaries:
The range of access networks and
devices is evolving quickly, each
with its own strengths. A main
issue for prosumers is to be always
on and having the best possible
connection without the need to care
about specific device form factors
and technologies (multi-screening).
The way forward is to make efficient
use of multiple access technologies
in a smart connectivity solution.
Seamless mobility allows roaming
and automatic handover between
different access types without call
disruptions. The best possible
connection is selected
automatically, for example DSL at
home, WiFi at hotspots and HSPA
on the move. No new manual
log-ins are required and the user is
always connected to the personal
service suite. The capabilities of
different broadband access
technologies and device types are
considered automatically. Different
wireline and mobile access
networks are combined, hiding all
complexity from the user.
What customers want 13
 Customer care Portfolio
• Automatic device • Personalization and
configuration identity management
• Proactive care • Rich communication
• Self care • Mash ups and contextual
services

Cost and billing Quality

• Personalization • Smart Connectivity
• Convergence of • Covering whitespots
post- and prepaid • Increase battery lifetime
• Transparency • Policy enforcement
and control
Personal data protected
by trusted gatekeeper

Figure 9. Simplifying customer’s life – in control of complexity.

• More understandable cost and
billing: The key here is to provide
more personalized price structures
which are more appealing and
more understandable for the
customer. This implies a customer
specific top up management and
more flexible payment methods.
For example, postpaid and prepaid
are not customer types, they are
just different payment methods
that can easily be combined.
An example would be combining a
postpaid tariff for voice with a
prepaid tariff for broadband to try
out the new service. Another option
to stimulate the take up of new
services is to share data volume
allowances through multiple
devices.
• Targeted customer care:
Automation is key. With the rise in
device complexity, more
applications and configuration
options and with customers
changing their devices more
often and using purchasing
channels outside the CSP’s control,
the workload on call centers is
increasing rapidly, often resulting in
poor customer service quality.
Easier service discovery,
subscription and use improve the
customer experience. Auto-
provisioning is a key advantage
since it supports service
promotions focused on specific
devices and makes the service
easy to use by removing the need
for the customer to set up the
device correctly. Automating the
service fulfillment process helps to
ensure that the customer gets the
service within the agreed time
frame, improving the customer
experience by eliminating
unnecessary delays in service
access. In addition, self-service-
provisioning supports service
subscriptions that can be modified
on-demand, such as a bandwidth
increase in a broadband service,
or ordering a movie or a TV
channel. The consumer segment
in particular will appreciate not
having to read long lectures on how
to set up services. Figure 9
Beyond pure functionality, CSPs will
want to create emotional touchpoints
with, for example, the right look and
feel of the device to ensure the
stickiness of the service: to make
users feel more self-confident,
to achieve more in life and to be in
control by “having” the entire Internet
on the mobile phone.

14 What customers want

Getting more insights about
customers – no longer the big
unknown
Optimizing the customer centricity of
offerings requires a detailed insight
into each customer’s behavior and
preferences. The goal is the “mass
individualization” of the offerings –
ranging from the service provisioning
to the customer care – as if they are
designed for each customer
individually.
Therefore, customer centric CSPs
liberate their customer information
from data silos and bring them
together into a unified customer view,
where it can be accessed by all
systems and different organizational
units.24)
24) Nokia Siemens Networks, End-user insights whitepaper, 2008
Business transformation –
the CSP in control of complexity
Telecom operators were all created
to build, manage and maintain
nationwide telecommunication
networks. That business model
served well in the early stages of
markets where customer expectations
were centered around the basic
connectivity, i.e. operators
differentiated through network
coverage, quality & capacity. The
business model was thus based on
a single product delivery model
where operators tried to maximize
their in house assets & capabilities:
the traditional walled garden business
model.
As the markets evolve and saturate
and new, ever more intelligent
terminals enter the market, customers
have started to demand more. The
business model is transforming into a
multi-product service model where
the key question for the CSP is what
kind of role they can assume as a
service provider, how to create
competitive value networks and thus,
how to transform their business.
The vertically integrated end-to-end
paradigm of defining all components
of a service in advance and
implementing the entire service
internally, can no longer keep pace
with the speed of today’s Internet
players. In such a highly fragmented
market, the key is to use an efficient,
modular application development and
implementation method, where third
party Application Service Providers
can be integrated easily.
This means that business
transformation is a necessity for
operators who want to be able to
respond to changing customer
requirements and market dynamics.
The only solution to survival is to pool
resources with other contributors,
creating viable business and
provisioning architectures within their
“business ecosystems”. This method
combines the best of multiple service
“hubs” to create the combination of
strengths and abilities desired by their
target customers.
What customers want 15
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