Accenture leverages Accenture Video Solution to help KPN be “Over-the-Top” in the Dutch TV market in record time

1 About KPN KPN is a leading information and telecommunications provider in the Netherlands, offering wireline and wireless telephony, Internet and television (TV) to consumers, and end-to-end telecommunications, information and communications technology (ICT) services to business customers. In Germany and Belgium, KPN pursues a multibrand strategy in its mobile operations, and its two companies—E-Plus and BASE—together are ranked third in the market. KPN provides wholesale network services to third parties and operates an efficient Internet protocol-based infrastructure with global scale in international wholesale through iBasis. At the end of December 2010, KPN’s TV and Internet customers were at 1.2 million and 2.5 million, respectively. In 2010, KPN reported revenues of €13.4 billion.

2 3 4 Business challenge In a swiftly evolving telecommunications and ICT market, it is critical for companies to be able to bring innovative products and services rapidly to the market. “First to market” is what makes leaders in an already crowded marketplace. This race is also fuelling a convergence revolution that is radically changing the way technologies interact with each other and presenting people with a whole new ecosystem of services customized to their preferences. ICT companies must deliver convergent services ever more rapidly and look for innovative ways to integrate previously separate technologies, such as voice, data and video.

For a broad telecommunications called “KPN iTV Online,” is helping With TV solutions becoming service provider like KPN, this KPN move toward convergent, increasingly software driven than presents a business environment personalized, multidevice models. technology/hardware driven, rich with opportunities that it For KPN, the pay offs of Accenture was a clear choice must translate into reality faster successfully integrating the over other technology players than competition. An ongoing Internet and TV are manifold. due to its in-depth knowledge strategic imperative 2015, KPN is iTV will help KPN differentiate and experience in the ICT looking at providing “innovative” itself in the highly competitive domain, particularly in the Dutch TV services to the Dutch consumer Dutch TV market, especially from market. KPN also recognized market in response to an ever- cable operators. Second, iTV can Accenture’s recent success with growing demand for interactive help improve customer loyalty helping Mediaset, Italy’s largest functionalities. KPN is aware by providing richer and higher- commercial broadcaster and a that smart players—incumbents quality “anywhere and anytime” major media company in Europe, and new entrants alike—are services, helping increase average to launch one of the world’s already making their first moves revenue per user (ARPU) and first premium, multidevice OTT- in this space. It recognizes that attract new customers, thereby TV services—NET TV. The launch innovative, high-quality TV increasing market share. Third, it involved a strong collaboration services—launched faster and also positions KPN well to increase with the Accenture Innovation more cost effectively—will help advertising revenues through Center for Broadband in Rome, it stay ahead of competition. better customer profiling and part of a global network of such To defend market share in the targeting in the future. centers at Accenture. According broadband space and gain a to Eric Kuisch, Head of Network leading position in the Dutch KPN knew that choosing an & Services at KPN, “We need interactive TV (iTV) market, KPN experienced end-to-end solution acceleration and rigor to help us wanted to launch a new offering provider and systems integrator succeed in bringing innovative in linear and nonlinear video that could help jump start and TV services to market; we know distribution over broadband accelerate its iTV journey to its Accenture can do this as no other.” networks—“Over-the-Top TV” or customers’ satisfaction would OTT-TV. The new service, now be crucial in the success of its innovative TV services strategy.

5 How Accenture helped To maximize the business opportunity arising from personalized on-demand services, KPN realized that its OTT- TV service needed to be brought to market on multiple devices. To begin with, KPN asked Accenture to provide a seamless consumer experience by making iTV Online content available on the personal computer (PC), Apple iPad and Android tablet, alongside conventional devices. And, to meet evolving client expectations, it wanted Accenture to gradually scale and enrich the offering in terms of features, devices and capacity.

Under the terms of the initial • Redesign of the most processes are optimized and contract spanning March– aggressive KPN cycles, such as there is maximum alignment September 2011, Accenture testing, to define the shortest between KPN departments assumed responsibility for a broad timelines possible. and Accenture. range of activities, including: • Field trials and testing. • Strong governance • Initial analysis, development • Overall program management structure supported by and deployment of the and program management active executive support. final service. office support to track • Design of the AVS architecture project development. and its integration with the • Presence of a strong local existing KPN-Nokia Siemens Accenture team at the client Network (NSN) iTV platform location—to ensure all delivery used to deliver the new iTV solution.

6 Source - KPN

To help KPN beat cable had successfully addressed a video on multiple devices. The competition in the iTV space, similar challenge at Mediaset by solution is based on a smart IT Accenture set itself an aggressive leveraging the Accenture Video architecture that enables service timeline—from March 2011, when Solution (AVS). The AVS is an providers to launch new, high- KPN decided to launch the OTT- Accenture Software product— quality services quickly and cost TV service for PC and iPad, the built through a powerful mix effectively, while at the same time service was to be made ready of integrated technologies— reducing risk and the initial costs for field trial testing in just five that enables the delivery of of IT and infrastructure set-up. months. “Innovation” in software digital video over broadband and TV was the central plank for a seamless user experience, in Accenture’s strategy to meet and allows the integration of KPN’s objectives. Accenture broadband and broadcast digital

7 The iTV Online service leverages KPN’s Content Delivery Network (CDN) capabilities for content streaming. Built using the latest technology and highest network levels, the CDN provides various B2B and consumer market services. The CDN also provides high stability through a redundant layer, guaranteeing best-in-class streaming services for its clients, including Over-the-Top TV services.

8 To enable a differentiated and interactive consumer experience for KPN customers, Accenture leveraged the AVS solution to design a set of new, leading-edge iTV functions for the PC, Android tablet and iPad including:

• Live TV to make 20 channels • Recommendation engine to available online. promote relevant content to • Seamless login—automatic individuals based on their user login using the IP address and profile—viewing preferences and client information after starting interests—and provide them with the session. a “personal content channel.” • Advanced electronic program • Adaptive streaming on PCs guide and recording to provide and set-top boxes to provide a updated menus for current, guaranteed quality of service, upcoming and catch-up both in standard and high- programming content. definition, in an open Internet environment, even if the • Remote recording to allow broadband line is congested users full mobility in setting or or unstable. The ability to deleting recordings. provide a consistent, high- • Catch-up TV to allow quality service has a positive users to select and watch impact on customer acquisition video content on demand. and retention. • Extensive video-on-demand catalogue.

”We need acceleration and rigor to help us succeed in bringing innovative TV services to market; we know Accenture can do this as no other.” Eric Kuisch, Head of Network & Services at KPN

9 10 6 High performance delivered The innovative, high-quality Powering freedom and mobility The successful launch OTT-TV service—KPN iTV Online— for KPN customers, the iTV service of iTV Online has delivered by Accenture has has been a resounding success in helped KPN become the first the Dutch TV market. Customer significantly altered the to field this innovation in the response has been particularly Dutch TV landscape as high-potential OTT-TV market positive with respect to the user KPN beat competition in the Netherlands. The pre- experience, specifically the user integrated assets and industrialized interface design, seamless login to launch the service development processes available and stability of the service. Two first. Collaborating with at the Accenture Innovation days after its launch, enthusiasm Accenture to bring this Center for Broadband enabled for the KPN Online iTV iPad Accenture to deliver the service application was evident, as it innovation to life, KPN in record time and improve KPN’s became the most downloaded free has been able to provide time to market to less than five application in the Netherlands and an unprecedented user months—from start of the project received a 4.5 out of 5.0 score at to the initial piloting phase. the Apple iStore. Unprecedented experience, helping it The AVS was fully integrated in KPN’s product launch history, strengthening its leading with KPN’s existing platform to remarkably few customers have position in the broadband provide an innovative modular TV contacted the KPN service desk space and growing its TV platform that is scalable quickly— with queries in the launch month. providing KPN the flexibility to KPN witnessed a strong uptake market share in the Dutch minimize new development work in its customer base for iTV and TV market. and launch additional services has been able to reach 25 percent quickly. Post the launch of the of the Dutch iPad market in iTV service in September 2011, September itself, positioning it well Accenture has been working with to grow its consumer base for its KPN on enriching the current wide range of telecommunications offering with new features and ICT services and offer by incorporating initial client enhanced services. feedback. As a result, a new release The new service is also allowing was brought to market in October KPN to take a holistic view of its 2011. Continuing with the strong customers—how they behave with momentum of bringing innovation its iTV content, viewing patterns, to market, these enhanced set of interests and preferences—enabling features have been made available it to recommend the right content on the Android-based Samsung and increase customer loyalty, Galaxy Tab. And there are more and allowing advertisers to target possibilities available within the individuals more effectively. AVS, such as Connected TV and KPN is also able to leverage this integrating TV Services on gaming information to propose new devices like Microsoft XBOX. services for customers and thereby increase the ARPU.

11 Accenture is a global management Contact us consulting, technology services To learn more about how and outsourcing company, with Accenture can help your company approximately 236,000 people serving achieve high performance by clients in more than 120 countries. deploying services, content and Combining unparalleled experience, infrastructure for IP video solutions, comprehensive capabilities across please contact: all industries and business functions, and extensive research on the world’s Giorgio Canocchi most successful companies, Accenture Senior Executive, Accenture collaborates with clients to help [email protected] them become high-performance +39 3356327531 businesses and governments. The company generated net revenues of Taimen Boumans US$25.5 billion for the fiscal year Senior Manager, Accenture ended Aug. 31, 2011. Its home page is [email protected] www.accenture.com. +31 610866826

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