Hello! It's the most serious organisation I've had business with in recent years...
Everything is so well thought-out that it's not even convenient to speak Russian.
I have a timer clock near here, and there is a red circle that I must stand on.
If anything happens, just shoot me straight away.
Briefly to say, nowadays telecommunications go through very interesting period.
It's the time of expensive roaming and low-quality connection.
But at the same time we are very agitated. The model is completely different.
In this slide you can see the result of what has already taken place.
The fixed connection has ousted the mobile one.
In the future the voice service will be ousted by data transmission service.
And this happens steadily and dramatically. We are now at the point of bifurcation of technologies,
when some technologies are being ousted quickly by the others.
At first sight, it seems to be a familiar situation for the operators.
But the problem is that in this situation everything is working a bit more complicated for us,
because our existing business model doesn't fully fit modern technological challenges and ideas.
Traditionally, when we face some technological changes, we get new ideas from one point. From vendors.
What the work of a mobile operator consists of? It's very simple.
You hire vendors to create a net, you hire dealers to sell SIM-cards, you hire advertising agency to make ads.
And that's all. Then you're just sitting, watching it and becoming more and more rich.
But, suddenly, a very unusual thing happens, when the era of mobile Internet comes.
And everything that you earned in X year, you must spend in X-plus-one year.
You just must give consumers more Mb/s for the same amount of money.
In this case we're searching convulsively for the solution. We address to vendors.
Vendors give us new answers. They give us LTE-technologies, which give us new perspectives,
which leads to a traffic boom (25 times as much in Russia),
which openes new markets, such as mobile supplement ones.
Vendors open to us new M2M technology, which thanks to a low hold-up in the LTE connections is becoming potential.
The sphere of applying M2M is gigantic. Vendors open to us new NFC technologies. NFC is even more fabulous one.
You just bring your self-phone up to the reader device,
and your money are taken from your credit card automatically.
You bring one self-phone up to another and they exchange data.
Everything can be transmitted this way, right up to some viruses that can be dangerous for people.
Banking, commerce..whatever. The problem is one and very simple.
We don't know how to monetize it all in our traditional business scheme.
We see that so-called over-the-top players are developing actively in our nets.
Google, Apple, many companies that people here represent.
They devise more and more ways of using our infrastructure.
The problem is not how to make them share their income.
Because if we ask Google to share with us...Google's income for the latest year is, for example, 80 bn dollars,
MTS's income for the latest year is 12 bn dollars.
Even if all mobile operators in the world get a little piece of Google...
For us it would be like you would announce the score of the football match Greece-Russia.
In these terms our traditional approaches obviously don't work.
We invest more and more, the clients are more and more discontented.
New solutions and business appear, but we do not get other ways of developing our business,
infrastructure from the traditional sourse - from vendors.
And the answer that we are looking for, is also open innovations.
This is the basic reason why I'm here and perform at other conferences, why we at MTS work so much on it.
At MTS we have an amazing competition "TELECOM-idea", which exists for some years already.
Inside AFK system there is also the whole spectrum of all sorts of innovative events.
We need new sources for inspirating our industry. Not even the ones that would give us definit profit.
But we need ideas from the outside environment, that we will be able to apply.
And we find them. Of course, those ideas are not global yet.
Here you can see the example of real people with real agreement in their hands.
There's is my bold hand signature in the document.
They created a small thing - the early warning system of forest fire, which is installed on basic MTS stations and
give us a little additional income. Besides, the system settles a very important social matter,
which can be paid using budgets of different levels, and they can save much money.
We think that open innovations are capable for the ideas of a larger scale. All this start to develope.
The aim of my speech is very simple. If you know how to change the business model,
the concept of working of telecommunication operators in the world,
you can get a real profit from it. I wish you luck, but give us now more about your know-how!