How to Make Money With 3G_ TIM Part 2
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Transcript of How to Make Money With 3G_ TIM Part 2
8/6/2019 How to Make Money With 3G_ TIM Part 2
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1 © Nokia Siemens Networks Presentation / Author / Date
Customer Confidential
How to Make Money with 3GPresentation to TIM, 2007
Diana Coll, Solution Marketing
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Customer Confidential
Agenda
• Strategic options for introducing 3G – Business model and service differentiation
– Operator case studies
• Where are you in the map? benchmarking of 2&2,5G Services
• Understanding the end-user motivation for 3G services
– Killer service or killer experience?
– Managing the end-user experience
• How can we help you?
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Customer Confidential
Where are you in the map?
Examples (not with real data) aboutbenchmarking of Services in Brazil
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Customer Confidential
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Customer Confidential
Examples of benchmarking of services using Fit 4Business tool
N o t u s
i n g r e a
l d a t a
N o t u s i n g r e
a l d a t a
N o t u s i
n g r e a
l d a t a
N o t u s i n g r e
a l d a t a
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Customer Confidential
In search of the killer application
hat services do people use?
martphone360 – UK, Germany, France
G Usage Tracker – UK, Italy, December 2006
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Customer Confidential
DATA USAGE DISTRIBUTION – BOTH 3G & 2.5GA
73%0%
3%
0%
12%
3%
0%
0%8%
1% browser
config
games
infotainment
messaging
multimedia
pim
productivity
unknown
utilityBase: 5.7 GB of packet data
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Customer Confidential
68719
1518 834
55
91 81 77 8268
78 797365
Few times a week or more
8 74630 823 19 1824
89 80 78 81 6880 74 7374
MMS/ Video Instant Multimedia Mobile E-mail Video 3G data Mobile Digitalpicture callingmessaging/ content/ internet sharing card TV streamingBroadcast
messaging chatting entertainment TVservices
MMS & video calling most regularly used features- Italy seeshigher usage incidence. IM used more regularly in UK
Usage frequency and satisfaction towards each feature - Total%
CAUTION: * Small base <100Base: All respondents (402), UK (202), Italy (200)
+ All feature users answering - base varies† Item asked in Italy only
Total
7 9411823282638
86 77 78 7970 6874
86
Satisfaction(Top 3 boxes*
**
*
*
*
*
*
**
N/A N/A
††
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Customer Confidential
Communication Services in APAC
Mobile Internet and e-mail are the most popular after MMS Video Calling is picking up
20
1
3
6
1
2
10
1
MMS IM Email Send Email
Receive
PTT Video
Calling
mobile
Internet
mobile
blogging
26
76
78
0
6
2
MMS IM Email Send Email
Receive
PTT Video
Calling
mobile
Internet
mobile
bloggingSource: NSN APAC Pulse - Base: All main mobile phone users
+ All function users answering - base varies - average calculated excluding zero
Usage last month (%)
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10 © Nokia Siemens Networks Presentation / Author / Date
Customer ConfidentialSource: NSN APAC Pulse - Base: All main mobile phone users
+ All function users answering - base varies - average calculated excluding zero
2 2
6
8
10
mobileTV videoTVondemand VideoDownloading Music(Audio
Streaming)
Music(Audio
Downloading)
2 2
7
6 6
mobileTV videoTVon
demand
VideoDownloading Music (Audio
Streaming)
Music (Audio
Downloading)
Video and Music Downloading the most popular - TV is picking up
Usage last 6 months (%)
Entertainment Services in APAC
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Customer Confidential
With O2 tipped as the winner of the heavily contesteddeal to provide Apple’s iPhone in the UK ….
Vodafone has struck an exclusive deal with Omnifone, a UK technologycompany, giving mobile customers unlimited access to music from labels such as
Universal for £1.99 a week.So long as customers continue to subscribe, they retain all their downloads.
Arun Sarin, Vodafone’s chief executive, has repeatedly highlighted how the firstversion of the iPhone will not run on 3G mobile networks. By operating on 2.5Gnetworks, customers get slower internet browsing.
The Financial Times Limited 2007
September 10th 2007
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Customer Confidential
Social networking and mobility are key drivers for revenue growth
• Community services are predicted tobecome the most important revenue
generator for the mobile content industryfive years from now, followed by TV, musicand games.
• Brazil % of internet users who are fanof social networks (41%) is the secondhighest in the world, behind that of SouthKorea (55%)
Communities fulfill many of our deepest human needs and
have become an important part
of the lifestyle of millions of people:
* Source: eMarketer (12/2006).
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Customer Confidential
One-third of mobile users say they belong to online community, and 2in 5 expect online communities being mobile
25
75
Jul 07
Yes
No
2
8
14
36
2
34
1
Jul 07
Unprompted - Top mentions
%
Incidence of being a member of any
online community
%
Any
Orkut
MSN
YouTube
Yahoo
Gazzag
MySpace
Incidence of sharing self-
generated content
Base: All main mobile phone users
Mentions below 1% not shown
Base: All online community members - Jul 07 (216)
57
42
1
Jul 07
Yes
No
Don’t know
Expectation of availability of
online community on mobile
phone
%
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Customer Confidential
Focused communitiesFocused communities / specific user groups
Religion, language, etc.
Society, school, church
Loyalty schemes
Private/closed communitiesFamilies, friends, sports teams, hobby clubs
Enterprise
Open Internet communitiesMerging the internet & telecommunication
communities
Operator communitiesCommunities created by operators themselves around their
customer base
Muslim.com Muslim.com
Maximizing opportunityDiscovering Communities: The kind of community and your role in the communityecosystem will determine the revenues that can be expected
Potential role
Access provider
Service provider
Service provider
Service provider
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Customer Confidential
The most successful mobile UGC community so far?
Brazilian case:
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Customer Confidential
End users are attracted to bundled services which best reflecttheir lifestyle and consumption patterns.
Some highlights from Nokia Siemens Networks 3G Usage Tracker
Understanding the end-user motivation for 3Gservices
Concerns/ barriers for 3G usage/subscription
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Customer Confidential
Concerns/ barriers for 3G usage/subscription
CO
NCERN
Moreimportant
Lessimportant
Relevance of 3G services
Cost of service
Network coverage &Reliability
Many of the findings are equally applicable to 2G and 3G services
Current
popularity of 3G /
connectivity
Security
• Some concerns surrounding cost of usage for surfing and video calling• Risk of ‘hidden’ costs from both network providers and websites
-> prefer a fixed pricing plan
• Consumers feel frustrated when signal is lost or inconsistent between provider• 02 and Vodafone are perceived to provide the most reliable coverage.
• An issue with consumers being able to steal data from tapping into the users s• If a phone is stolen, data could be retrieved and used for fraud.
• Many consumers still have 2G phones therefore it is not always
possible to video call other consumers.
• Lack of informative marketing communications outlining 3G features-> not all consumers understand how 3G can be relevant for them,and utilise all of 3G’s benefits.
From Qualitative
Concerns/ barriers for 3G usage/subscription
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Customer Confidential
Concerns/ barriers for 3G usage/subscription
CO
NCERN
Moreimportant
Lessimportant
Relevance of 3G services
Cost of service
Network coverage &Reliability
Many of the findings are equally applicable to 2G and 3G services
Currentpopularity of
3G /connectivity
Security
• Some concerns surrounding cost of usage for surfing and video calling• Risk of ‘hidden’ costs from both network providers and websites• Personal has already reduced its price since launch by 25%.
• 3G Coverage is limited to 3 cities
• An issue with consumers being able to steal data from tapping into the users s• If a phone is stolen, data could be retrieved and used for fraud.
• 3G Terminal and Laptops low penetration (but improving)• Availability of 3G Data Cards
• Lack of informative marketing communications outlining 3G features-> not all consumers understand how 3G can be relevant for them,and utilise all of 3G’s benefits.
From Qualitative
3G i A i P i i b i
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Customer Confidential
3G in Argentina – Pricing barriers
€0-45
€45-90
€90-135
€135-more
18
15
9
8The Samsung A706
and LG MU500,
costing €166, are the
cheapest 3G phones
on offer but are still
on the high end of
price levels.
Average number of phones offered online by
Movistar and Personal by price level.
Note: These prices are under contract and the list does
not include smart phones.
Source: Operator web pages, company interviews, TeleGeography, Nokia Siemens Netwroks BI, CAMOCA
€ 16.00
€ 21.00
€ 27.00
€ 12.00
€ 21.00
€ 31.00
€ 0.00
€ 5.00
€ 10.00
€ 15.00
€ 20.00
€ 25.00
€ 30.00
€ 35.00
€ 40.00
1MB 2.5MB 5MB
Speed
M o n t h l y s e r v i c e p r i c
Telefonica Telecom
HSDPA offerings are up to 100%
more expensive than DSL offerings.
Notes:
-Speed is maximum offered.
-DSL prices are monthly average over a 24-
month period.
-The cost of data cards or DSL installation
services are not accounted for.
• we compare the prices of wireless broadband against current broadband offerings from incumbent operators.
Fl t t b i ti i f d f bil i t t & t iAPAC
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Customer Confidential
60 5650 46
37 4045 48
33312 2 1 4
Mobile internet Mobile TV
streaming/
Digital
Broadcast TV
Video
downloading
Music/ voice
downloading
Charged per usage
Subscription to flat rate
None of these
Don’t know/ refused
Most preferred charging method of respective services - Total
%
Base: All users or all who are interested in using the respective services: Mobile internet (1883), Mobile TV/ video (1756), Music/ voice downloading (1724),
Note: Digital broadcast TV asked in Japan only
Flat rate subscription is preferred for mobile internet & streaming
services. Per usage charge for downloading
Source: NSN APAC Pulse - Base: All main mobile phone users
+ All function users answering - base varies - average calculated excluding zero
M i t i
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Customer Confidential
Managing customers experienceDrivers influencing acquisition and churn thus CLTV
• Cost• Network
coverage/quality/perf • Calling plans• Customer service
• Brand
• Cost• Network
coverage/quality/perf • Calling plans• Customer service• Service portfolio
Western EuropeStable growth
declining ARPUNorth America
Stable growth
declining ARPU
Emerging Asia:
Strong growthlow ARPU
• Calling plans• Cost• Network quality/
performance• Billing format/accuracy• Brand
Eastern Europe
Strong growth
declining ARPU
• Cost• Network coverage/quality• Calling plans• Customer service• Brand
Africa:
Strong growth
low ARPU
• Cost• Network
coverage/quality/perf
• Calling plans• Device offerings• Customer service
LAM:
Strong growth
declining ARPU
China:
Strong growth
low ARPU
• Cost• Network
coverage/quality• Customer service• Calling plans• Loyalty schemes
• Cost• Calling plans• Network
coverage/quality/perf • Loyalty schemes• Customer service
Source: Nokia Siemens Networks, Gartner and Informa customer acquisition and retention research for mobile and fixed networks, 2007
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Customer Confidential
How can we help you?
Four steps to revenue growth
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Customer Confidential
Four steps to revenue growth
Implementing
winning businessmodels
Introducing new
differentiatingservices
Managing
the customer experience
Opportunities
in newsegments
Service
Strategy
Service
Strategy
Implementing a winning business model
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Customer Confidential
Implementing a winning business modelPlayers are growing their addressable market
Flexible bundles to matchmultiple lifestyles:Mobile
VoiceFixedVoice
BroadbandInternet
TV
Fixedprovider
Mobileprovider
ISP
Hybridprovider
Cableoperator
Differentiating with an innovativebusiness modelUsing advertising as funding, Blyk, thepan-European free mobile network for
young people chose Nokia SiemensNetworks to supply, build and host theentire operationof its core network.
Maximum share of customer wallet
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Customer Confidential
Maximum share of customer walletUsers like service bundles that match lifestyles/consumption patterns
Mobile TV
Stationary Internet
IPTV homeinfotainment
Internet
At home/office
TV
On the move
Mobile Internet
8€ 2€
40€
20€
• Web2.0 communities• Premium VoIP
Inner multiplay area -
Differentiation & Up Sell
10€
BroadbandARPU estimate
Meeting the needs of people lifestyle
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Customer Confidential
Sources: Mobilizing applications vision paper by NSN COO RTP,MIBA 2007 by Nokia
Meeting the needs of people - lifestyle
Myself, My family,
My friends, My colleagues- One-to-one connections
- Voice, text
- Customizable infotainment
My trustedcommunities• Belonging, sharing and
connecting• Easily find people I know or
work with• Safely meet people and share
experiences
Everybody
Every brand
Everywhere
• 3rd party products,services, content
• Social consumption
• Targetedadvertising
Connecting people to what really matters enriching
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Customer Confidential
Marketplace
EverybodyEverywhere
File & contentdistribution, securetransactionsAdvertising and
other targeted thirdparty revenuestreams
Global reach
Meeting Place
My trustedcommunities
Belonging & Sharing
Publishing my stories,pictures, other user created content…Group messaging across
operators and devices
Sources: Mobilizing applications vision paper by NSN COO RTP,MIBA 2007 by Nokia
Connecting people to what really matters – enrichinglife
My Place
My FamilyMy Friends
Emotional engagement
>70% of allcalls, SMSvideo calls,pictures
Me
Me
Infotainment
Individual
consumption
Customized Offerings Generate Personal Value
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Customer Confidential
Customized Offerings Generate Personal Value – Build Communities Through End-User Segmentation
Segment key customer groups
… based on detailed end-user research
& target with service bundles… based on time, service, usage and value.
Profile A – ‘Young explorer’
Heavily into social networking and all
new ways to interact with peers. Video
is central to how they communicate
Profile B - ‘Pragmatic leader’
Senior business role, so it’s vital they stay in
regular contact with colleagues, clients and
suppliers while travelling and in the field
Profile C - ‘Life builder’
Content from browsing, TV and music arekey to their total mobile experience. They
need to feel ‘connected’ all of the time.
Profile A bundle Profile B bundle
Profile C bundle
MMS
LBS
Mobile
TV
Voice
SMS
Video calling
Video sharing
Push E-mail
PoC
Browsing
IM
Video Blog
Managing the customer experience
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Customer Confidential
Managing the customer experienceDriving revenue through life-time value
€With device management
and MMS optimization, a
European CSP with 10 million
subscribers and average
MMS price of 0.40 €,experienced a 10% increase
in MMS success rate,
resulting additional
5.9 M€
annual revenues.
Implementing new innovative services
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Customer Confidential
Implementing new innovative servicesCompetitive advantage over the service lifecycle
Launch Maximize Ramp
down
CreateGrow &
Capture
“We chose NSN because they clearly showed theright combination of experience and competence inthis business-critical area. We can now look forward toreducing our time to market for new services andincreasing the number of services to our customers.Having NSN integrate the solution and operate the servicearchitecture will help us achieve these goals” John Shen, CTO, Hutchison Telecom Indonesia.
= Cost of serving customer base
= Accumulated revenues from users
Pre-profit phase
Period of profits
Innovate
Opportunities in new segments:
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Customer Confidential
Opportunities in new segments:Services for Small and Medium Enterprise Customers
Mobile, fixed &cable operators
Voice, Data
High ARPU
Low Churn
Big Growth
Using an online mobileprefab element trackingservice provided by anEuropean operator, aconstruction companyeliminated stoppages onconstruction sites withassociated direct costs of 5000 € / day per site. Theoperator proved that withsmall investments it’spossible to create areproducible service for arelatively small segmentwhich can have a positiveimpact in the business of enterprise customer.
Enterprises (SME)
Outsourcing
ProductivityCost savings
Low ICT Knowledge
Mobility
Drivers
New competition
New opportunities are openingup for operatorsbut also to new competitors
Technology
Software as aService
Enablers
Identifying the opportunity
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Customer Confidential
position yourself in the
business modelecosystem
identify key areas of
improvement
assess the financialimplications
benchmark against thecompetition
Examples of Fit for Business workshops run by our Solutioneers
Identifying the opportunity
System evolution to match new consumer and
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Customer Confidential
Marketplace Services(100 )
Partner Services(20-100)
Re
venue
/service
0
Mobile Music
Core Services(~ 20)
# of Services
Call & Share
Integrated
BusinessServices Games
InfoVoice
SMS/MMS/IM
Push
To X
IP &Mobile TV
Quadplay Community
Location WEB2.0
∑ Revenue
Ringtones
Specific effort justified
Environment must enable fastcreation of new services,flexible business models and
winning e2e- partnerships(internet community,content…)
Environment must exposechargeable capabilities andenable 3rd parties to leverageassets (e.g. authentication,payments, usage patterns etc)
TelevotingmCommerce
Virtual
worlds
System evolution to match new consumer andbusiness expectations
Embracing the Internet – and capturing value
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Any content or application
g p g
Converged network
• Manage bandwidth and Quality of Experience
• Manage application specific usage• Charge per service
• Leverage identity data
Any Device
A bad user experience equals
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For internal use
"It's the experience that differentiates our brand"
Sanjiv Ahuja - Orange CEO 28 March
2007
p q
a bad brand experience to the customer
"It´s not about the killer
application, it´s about the
killer experience." Hamid Akhavan, CTO T-Mobile
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Customer Confidential
Backup material
Will be updated to cover our current offering
We can help you make a positive
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Customer Confidential
p y pdifference at every stage
Differentiate by monitoring, analyzing, managing, charging and bundling services in real time Intelligent Packet
Core and Convergent Charging and Care
Industry-leading Value Added Services portfolio and end-user applications
New service creation Network and service optimization
Integrated provisioning Service management
Hosting solution
Care
Solution and business consulting
Innovate Launch MaximizeRamp
downCreate
Grow & Capture
by leveragingour extensiveresearch andknowledge base
services ina way thatencouragesand enablesrapid serviceadoption
serviceprofitability viaserviceassurance,revitalization andoperationalefficiency
services whileoptimizingCAPEXand OPEX
with shortesttime to marketand minimizedservicedevelopmentcosts
the massmarketthrough fullyscalablesolutions
Network simplification andend to end user experience management are key
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end to end user experience management are key
Multi-Access
Network Architecture Vision
IP Networking, Transportand Aggregation
Service Core andApplications
OperationandBu
sinessS
upportSystems
Single, converged
Network
Single, converged
Network
Common services across
all access domains
Common services across
all access domains
People and ‘places’
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Serving end-usersas privateindividuals
Serving end-users asmembers of communities
Serving end-users asconsumers and brandambassadors