Technicolor's Luis Martinez-Amago Discusses Key Trends Defining Network Service Provider Strategies for the Connected Home
"NSPs are already starting to think about CPE devices as platforms that can deliver added-value services to consumers. To fulfill this opportunity, however, these platforms will have to be open enough to support the integration of an ecosystem of innovators." -- Luis Martinez-Amago, Technicolor
This year will see more Network Service Providers (NSPs) around the world embrace "managed services" as a core strategy for generating new recurring revenues and competing with retail offers, says Luis Martinez-Amago, President and General Manager for Technicolor's Connected Home Division, in an audio interview for journalists.
"Managed services are emerging as the business strategy of choice for NSPs seeking to develop new value-added revenue streams while avoiding the prospect of being a dumb pipe provider," says Amago.
"Within this strategy, the ability to provide innovative services to consumers will be critical to offering value-propositions that go far beyond what can be delivered by technology that is available in retail stores. Smart Wi-Fi is an early example of such an offering, and one that is already being deployed, but the basis of these services will extend beyond consumers' Wi-Fi experience to include security, privacy protection, video quality of service delivery, and more," says Amago.
Re-Envisioning CPE as Service Platforms, Not Just Connectivity Tools
To pursue these opportunities to re-establish and redefine their relationship with consumers, NSPs will have to think differently about the role of Customer Premises Equipment (CPE) -- including gateways, set-top-boxes and routers -- in their business development activities.
"NSPs are already starting to think about these CPE devices as platforms that can deliver added-value services to consumers. To fulfill this potential, however, these platforms will have to be open and powerful enough to support the integration of an ecosystem of innovators," Amago says.
For instance, there are best of breed providers in the market that know how to manage cybersecurity issues that are rising as a result of the emergence of more connected devices in the home. Other technology innovators are developing solutions that optimize the performance of broadband video services within the home, ensuring that all devices -- including TVs, tablets, gaming consoles, etc.-- have network resources properly allocated to maximize the customer experience.
"At Technicolor, we are building our CPE devices to provide a platform from which the most interesting services from the most innovative providers can be delivered to the home in the most cost-effective manner. The ecosystems that we are putting in place are very well positioned to help NSPs get the most out of their managed services strategies," he says.
It Takes an Ecosystem to Optimize Managed Services Strategies
Over the past year Technicolor has been honing its already successful strategy of providing more open solutions to the NSP community.
"We have already established ourselves as the market leader in Android TV, with more CPE deployments in the market than any other manufacturer. We have a similar leadership in the Reference Design Kit (RDK) community as well as our own OpenWRT based software solution, called Homeware," says Amago.
Technicolor is matching its platform-oriented approach to CPE development with the establishment of a rich strategic partnership initiative that can rapidly enable new revenue-generating services for NSPs through next generation gateways and set-top boxes.
"This represents an entirely new paradigm for success in the NSP industry. It provides Technicolor with an excellent opportunity help our NSP clients achieve their business objectives as we go deeper into the new year, and beyond," concludes Amago.