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IBM presents Orange with new concepts in networking devices and services
Orange, a large cellular network services provider, turned to IBM for breakthrough concepts in subscription services and devices.

Business need
Orange is one of the most popular mobile communications companies in the U.K. As is industry practice, Orange subsidizes the cost of mobile phones as an incentive to its customers. These phones are made by hardware manufacturers and provided to Orange at a cost. Orange sought a way to reduce its costs and expand its revenue through new network services and partnerships.

Solution
Orange chose IBM Design Consulting Services to provide strategic design services, including imagining new experiences for Orange customers.

The IBM team observed the market, conceptualized new opportunities for Orange and, through a series of rapid prototypes — a way of quickly evaluating new ideas without heavy investment — demonstrated new revenue opportunities by creating products and services that are highly relevant to customers.

Team members presented concepts for a wide range of products and services based on the notion of splitting a traditional mobile device into two parts — a main hub that is common to all solutions and contains the cellular radio and battery, and a variety of interactive devices that make the solutions distinct.

The business plan was for Orange to sell hubs with basic service subscriptions — with much lower subsidies than current high-function phones — and sell any of the accompanying remote devices and services as upgrades. Here are some examples:

A small device worn on the ear along with an e-mail and phone service. The device allows a person to place phone calls and access e-mail using voice recognition — hands-free. A distributed terminal IBM ViaVoice® text-to-speech feature converts messages and reads them to the user.
Local storage available on the hub could store new music releases downloaded automatically during off-peak times from a music service. This music could be auditioned wirelessly through earphones, or car or home audio systems. If subscribers liked the new music, they could buy it through a secure transaction over the Orange network.
A health-alert system. The network could be used to monitor signals from various devices used to measure heart rate, blood pressure or other conditions. Devices include a wrist sensor for blood pressure and a concealed heart-rate monitor that can be worn under clothing. The network can alert users and initiate recorded phone calls to predetermined family members or emergency services if the data exceeds specified limits.

Benefits
Potential benefits include:

New subscribers
Increased network traffic
Sales from a wide range of interactive devices
License, royalty or retail profits on sales of existing, accompanying products, such as adapters
   
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