Nine ways telcos can profit from Ecommerce Presented by: Jay B' Ahn Saber Ben farhat Mounir Ben Fred

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Nine ways telcos can profit from
E-commercePresented byJay B. AhnSaber Ben
farhatMounir Ben Fredj

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What does e-commerce mean?

• Sales channel
• New Form of business

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Who makes e-commerce enable?

• Carrier
• Service Provider
• Wireless operator

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E-commerce market prediction

• E-merchant service - 27 billion by 2006
• E-commerce market - 4.3 trillion by 2004
• Online spending - 6.9 trillion in 2004

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Telcos

• Creating revenue with e-commerce
• Transition mode

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How do telcos make that transition?
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Backbone provider

• -Starting point for carriers to make revenues
  from e-commerce.
• -Carriers should be willing to take risks to
  gain a larger pie of the e-commerce as the
  traffic flow increases through the networks (e.g
  upgrading).

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Fast Access Provider

• Expansion of e-business gt more opportunities for
  carriers ( ISP(Internet Service Providers) and
  Telecos) to increase their revenues by providing
  the needed connections (e.g value-added
  networks, VPN(Virtual Private Networks).
• High speed secure access necessities of
• e-commerce.
• E.g NTT Communications is finding a growing
  demand for its high speed Internet connection.

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Managed Services

• Manage the network infrastructure (A teleco can
  provide management capabilities such as service
  level agreement management for an enterprise
  customer that owns its own sever).
• Rent a space for enterprises to hook their
  servers into your network.
• E.g Concert, the joint venture of ATT and BT
  offers global hosting services.

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Application Service Provider

• Telecos can host applications needed for
• e-commerce by small and medium-sized businesses.

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Click to call

• Deutsche Telekom, Swisscom have created a new
  revenue stream by offering a service that allows
  voice calls on e-commerce web sites.
• Ridgeway -ability to allow a real-time video
  connection between the consumer and the
  salesperson.

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Web-based Sales

• Using Internet as distribution channels would
  allow telcos to
• Reduce time and cost on offering new broadband
  services.
• Create a direct link with customers.
• Brakes geographic and structural barriers.

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Web Portal

• By creating portal sites, telcos can directly
  communicate with multiple players and profit form
  cross-industry exchanges and alliances.
• Advantages
• ?Gain from Adv revenue.
• ? Profit from content delivery to the end user.
• ? Maximize customer retention.

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M-Commerce

• Mobile commerce is a an other way for telcos to
  profit form e-Commerce.
• Advantages of M-Commerce
• ? Creating an e-wallet for GSM users.
• ? Telcos can get a percentage of what the
  retailer/vendor might provide.

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Billing Services

• By adopting wireless application protocol (WAP),
  telcos could serve as a bridge between ISPs and
  mobile handset users by allowing end users to
  have e-commerce charges billed to their telephone
  number.

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Case Study France Telecom

• Creation of France Telecome Telecommerce in 1998

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What does Telecommerce do?

• Order taking and secure payment services for
  small and medium enterprises
• Includes leading portal Voila
• Directory and hosting services

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Case Study - Telstra

• Australian telecommunication company
• Involved with e-commerce for a long time.
• large customers such as automotive company

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Telstra Today

• eConnection
• Online ordering
• Web hosting
• Application service provider business
• A shopping arcade
• Increasing revenue