D ISP Overviews Julian Herbert 28 January 2005.

D ISP Overviews

Julian Herbertwww.point-topic.com

28 January 2005

2 www.point-topic.com

ISP Overviews

• Background• The six ISPS

– Summary– Highlights– Propositions



– Summary– Highlights

• Propositions

ISP Overviews


Background

• Profiles of six ISPs

• All from outside UK

• Pioneers in marketing particular value-added applications



– Summary– Highlights

• Propositions

ISP Overviews


The six ISPsOverview

ISP Country Value-added offering

Bell Canada Canada Security services for residential and business customers

Catch Communications

Norway Business-focused ISP that aims to make VPNs cheaper and simpler

FastWeb Italy Strong video and TV element in a triple-play bundle

Free France Voice-over-IP as part of residential triple-play bundles

SingTel Singapore Turbo button to boost download speeds

Sprint USA Bundled DSL, telephone and mobile offering to retain customers and maintain revenue


Security for residential & business customers

• Uses ‘white label’ security services from Zero Knowledge Systems (ZKS).

• Customer opts to receive security report about threats which have been intercepted. Report = marketing and communications opportunity

• Anti-virus, Anti-spyware, Firewall package free for 6 months and C$10.90 a month thereafter; equivalent to 19% of monthly ARPU

• Improves customer retention: ZKS claim customers with security option are 30% less likely to churn

Bell Canada – SimpaticoSummary


Bell Canada – SimpaticoHighlights

• Service deliberately simplified compared to shrink-wrapped alternatives

• Marketing and communications opportunities to subscribers via a useful service

• Increase ARPU across a wide range of consumers (around C$11 or 19% of monthly ARPU)

• Service can be licensed on up to 3 PCs per household


Bell Canada – SimpaticoPropositions

• Have you had a computer virus infection?• Do you pay for Anti-virus/firewall/anti-spyware etc at

the moment?• Would you pay £4.60 a month for your broadband

security?


Catch Communications (Norway)Summary

Business-focused ISP makes VPNs cheaper, simpler

• Ethernet-based network provides MPLS based IP VPN services comparable in quality to frame relay

• Success in attracting price sensitive public sector customers

• Average monthly revenue per site of about $500


Catch Communications (Norway)Highlights

• IP core network and DSL focus• Winning frame relay and VPN customers with easy-

to-install solutions• Recognise that quality has to be better, price lower,

to overcome inertia


Catch Communications (Norway)Propositions

• Join your multi-site business for $550/site/month (approx. £290)

• You can have an SLA that’s better than for frame relay (although not quite as good as for SDH leased line), and at less cost


FastWeb (Italy)Summary

Strong video and TV element in a triple-play bundle

• Security services for residential and business customers

• Full ‘triple play’ package (broadcast and on-demand video, PVR services, telephony, HSI

• Video telephony option

• Competitively priced bundles (€25, €75, €95/month)

• VoD and PVR contribute 11% of total ARPU

• Video penetrates 41% of customer base


FastWeb (Italy)Highlights

• Pure IP network, mainly owned by FastWeb, using DSL and fibre

• Good value plug and play service bundle deployed rapidly

• Initial focus on just 6 cities• Video and TV will increasingly drive revenue• Not required to develop emergency call service, so

VoIP market stimulated


FastWeb (Italy)Propositions

• Structured service bundles for €25, €75, €95 monthly• Video telephony – camera for €5/month, free calls to

other FastWeb subscribers, vs €1 Euro/min to ISDN videoconferencing line (ie at an office)

• Video on demand – library of 1000+ titles, at €4 for a back catalogue film, €6 for a ‘latest release’


Free (France)Summary

Voice over IP as part of residential triple play bundle

• Triple play bundles comprises HIS, TV and Phone for flat monthly rate €29.99

• Proprietary nationwide network (12,000km optical network, 220 ADMs, 1500 DSLAMs, equipment in 602 France Telecom exchanges

• ADSL 2+ launched July 2004

• 1 million customers at end 2004


Free (France)Highlights

• VoIP switches and gateways deployed as part of extensive proprietary national network

• Highest penetration of primary voice line customers of any broadband network in France

• Free calls to any fixed line number in mainland France

• Customer base growing at 18% quarter on quarter in 2004


Free (France)Propositions

• Do you currently use voice over IP services, either through your broadband provider or through software based solution such as Skype?

• Would VoIP be compelling as a primary line replacement or just for secondary line?

• How complicated does setting up a VoIP service appear to be?


SingTel (Singapore)Summary

‘Turbo’ button to boost download speed

• BOD service launched July 2003

• Connection speed increased ‘on demand’ at a price based on data consumption; overage = S$0.3/Mb

• Users log-in to high bandwidth service through a different domain

• Increases bandwidth from 512kb to 1.5Mb


SingTel (Singapore)Highlights

• Speed top up available to some broadband users• Other operators have trialled this (NTL - 'Turbo')• SingTel sells BOD on top of a relatively complex

range of broadband and 'midband' products


SingTel (Singapore)Propositions

• How fast do you think broadband is? 500k? 1 Mbps? (use examples of song download times).

• Roughly how much data do you think you download in a month? (1 Megabyte, 10 Megabytes, 100 Megabytes, 1000 Megabytes (=1 Gigabyte), 10 Gigabytes, 100 Gigabytes?)

• Would you pay less if you could only use fast broadband during evenings and at nights, or at weekends?


Sprint (USA)Summary

Bundled DSL, telephone, mobile retains customers

• Packages tie together fixed (local/long distance) offering with Sprint PCS mobile offering

• Offers incentive to Sprint DSL customers to become Sprint PCS customers

• Subscribers to all services benefit from c. $15/month off DSL csot and free calls between home and PCS

• Market limited to intersection comprising local exchange customers on DSL enabled exchanges in areas of Sprint PCS coverage


Sprint (USA)Highlights

• Nearly 70% of local exchange customers puchase additional mobile or DSL packages

• Data is the only fixed line of business which increased revenue in Q3 2004, thanks largely to increase in DSL take up

• Range of bundled packages, based around subscribing to a Sprint local exchange service in one of 18 states

• Revenue growth from installed customer base heavily offsets overall revenue decline being experienced by Sprint in the local exchange market


Sprint (USA)Propositions

• Do you think bundling services together would save you money in the long term - or is it better to keep elements separate and to shop around?

• How much of an advantage is it to have all three services on a single bill?

• If you buy a bundle of services are you concerned that one or more of them might not be the best for your particular needs - such as including the mobile company which gives the best local fixed service?


Julian Herbert

020 7551 9260

www.point-topic.com

[email protected]

D ISP Overviews Julian Herbert 28 January 2005.

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