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John Giere, Senior Vice President, Products and Marketing, Openwave Systems, is responsible for growing the company's global market position, bringing carrier-grade solutions to service providers around the world as well as developing business with new and existing accounts. John has over 20 years of experience in management, marketing and business development. Prior to joining Openwave, John served as chief marketing officer of Alcatel Lucent (and Lucent Technologies previously), where he spearheaded global marketing initiatives and go-to-market strategies which led to the successful positioning and sales of new solutions. Before joining Lucent in December 2003, he spent seven years at Ericsson leading a number of strategic marketing, branding and business development initiatives globally. John currently serves on the Telecommunications Industry Association (TIA) Executive Board. He holds an MBA from the University of Maryland and a BS degree from Georgetown University.
Openwave Systems Inc. (Nasdaq: OPWV) is a global software innovator delivering context-aware mediation and messaging solutions that enable communication service providers and the broader ecosystem to create and deliver smarter services. Building on its mobile data heritage, Openwave mobilizes the Internet with predictive solutions fueled by real-time analytics that mediate among all different ecosystem elements, permitting the enhancement of every mode of IP traffic. The result can provide customers with a 360-degree view of their network, devices and services, and enables them to proactively optimize network resources, quickly launch smart mobile services, and provide a contextually relevant user experience. Openwave is a global company with a blue chip customer base spanning North America, Latin America, Australia and New Zealand, Asia, Africa, Europe, and the Middle East. Openwave is headquartered in Redwood City, California.
Replying to Anil Mascarenhas of IIFL, John Giere says, "The recent 3G spectrum auction also provides new opportunity for services and revenues."
Though the telecom space offers ample opportunity, the players are grappling with network crunch. How do you see the industry?
The growing popularity of mobile phones and other connected devices has sparked off an explosion of creativity within the application developer community. Innovative and dynamic apps are expanding the capabilities of these devices, which in turn drive more usage. At the center of this mobile data surge are the telecom operators. These service providers have benefitted from increased usage and a growth in their subscriber base. However, on one hand this mobile data phenomenon presents the telecom operators with the problem of network crunch and on the other it offers an even greater revenue opportunity. To seize this opportunity, the telecom operators must first solve the looming challenges of network capacity constraints and increased competition.
Are you looking at India as a big market? Do you have any presence in India?
Openwave has an offshore development center in New Delhi, India. The recent 3G spectrum auction also provides new opportunity for services and revenues. However, the operators there are in one of the most competitive environments in the world with voice rates at less than a cent a minute and 12-15 mobile operators grappling for market share.
We have solutions targeted at 2.5 and 3G data usage which enable a real internet experience on mobile whilst enabling operators to conserve bandwidth, get a full 360 degree understanding of who is using the network and customise services for each tier or niche group of users. HCL and Tech Mahindra are our two channel partners in India.
Brief us on Openwave. Explain to us your business model?
Openwave Systems is a global software innovator delivering context-aware mediation and messaging solutions that enable communication service providers and the broader ecosystem to create and deliver smarter services. Building on our mobile data heritage, Openwave mobilizes the internet with predictive solutions fueled by real-time analytics that mediate among all the different ecosystem elements, enhancing every mode of IP traffic. The result provides customers with a 360-degree view of their subscribers, the network, devices and services, and enables them to proactively optimize network resources, quickly launch smart mobile services, and provide a contextually relevant user experience.
We sell our products through a direct sales force and, to a lesser extent, through third-party resellers. Our sales and marketing groups focus on selling products by establishing and managing relationships with customers and resellers. Our customer support group focuses on performing maintenance and support. Our third-party resellers are strategic alliance partners including Alcatel-Lucent, IBM, DSG, DESCA and Tech Mahindra.
What are your capex plans? How would they be funded?
Our capex is generally related to computer purchases and testing equipment, generally a relatively small amount each quarter.
Brief on your financials and what is the outlook?
Openwave revenue in the last fiscal year end (June, 2010) was $183 million. Management provided no outlook or estimates.
Openwave generates approximately 20% to 25% of quarterly revenue from Asia. The company has 83 employees in the region.
How do you think telecom providers, in the post-3G scenario, can manage the "data-Tsunami"?
The demand for mobile data that the industry has been planning for years is finally here - only it is bigger than everyone predicted. The proliferation of new devices like the iPhone and HTC Incredible, along with vastly improved user experiences and unlimited data plans, has caused a tremendous and unprecedented surge in mobile data demand. AT&T disclosed this year that 3 percent of its users consume 40 percent of its bandwidth resources. In the post-3G scenario Indian telecom providers are expected to experience the same kind of growth in data traffic.
According to a recent report by Frost & Sullivan about 54% of all devices sold in the Asia-Pacific by 2015 will be smart phones, up from just 5% in 2009. This growth in smart-phone adaption will result in increasing demand for data services such as personal GPS systems, social networking, mobile internet and location-based services. The only way to manage this tremendous surge in data traffic is by adoption network optimization and intelligent content mediation solutions.
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