This document describes the foundation to develop a specific business model for an existing telco operator (and e-SENSE partner) to exploit e-Sense technology, to increase revenue by introducing a new value added service and generating network traffic. The text assumes minimal knowledge of either business modelling or telecommunications technology. It describes the “business logic” of a telco operator’s use of e-Sense technology to provide new services as part of its operations. Note that because this is written to present a real business model impact from the viewpoint of an existing Telco Operator, the presentation in this deliverable may appear to be “different” to views shown in other e-SENSE deliverables. This is to be expected, as the research conducted in the project is forward looking, and technically speculative, whereas the business modelling aspects start from the current Telco Operator baseline, and look for ways that e-SENSE technology and applications could be used to enhance the income of Telco Operators in the future. In short, this is written from the Telco Operator perspective with possible impacts from future e-SENSE technologies and applications, not from an e-SENSE perspective.
As the business model for wireless sensor network services that may be derived from e-Sense technologies is developed and implemented, operators need to be conscious of the intense current competitive environment. Mobile communications markets in Europe are maturing. It is impossible for operators to continue attracting new customers in the numbers achieved in recent years. At the same time, new entrants are entering the market, eager for a piece of market share from established companies.
The target market for e-Sense enabled services can be divided into thirteen segments: homeowners, athletes, sports fans, consumer healthcare, weight watchers, health-conscious consumers, retailers, entrepreneurs and small business, shipping, industry, agriculture, healthcare industry, and governments. These groups vary widely in terms of size and spending power. Industry, homeowners, the shipping industry, and health-conscious consumers appear to be some of the most promising segments. This segmentation, matches into e-SENSE WP1 Application Spaces ( Personal Services, Community Services, Industrial Services) as is indicated in section 3.2 , being in line with the data provided by the On World Market study [25].
Each market segment will derive value differently from the services designed for them. Telco operators’ commitments to innovation, customer orientation, and brand equity will help to separate them from competitors. Value networks for telecommunications services are growing increasingly more complex. Operators find themselves at the centre of a network including manufacturers, application providers, content providers, and end users.
Consumer behaviour regarding emerging technology is nearly impossible to predict. However, assuming positive adoption rates for most of the market segments, revenue from e-Sense technology and application related services will reach substantial numbers by 2010.
Avoiding price competition in favour of high-quality services, innovative technology, superior partners, consumer orientation, and thorough segmentation will serve to give Telco operators a competitive edge and increase the profitability of their involvement with wireless sensor networks.
This document relies on the vision and information published in the e-SENSE deliverable D1.1.1, focusing on the service delivery analysis.