The Netherlands - Analyst & Journalist Briefing 2014
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Transcript of The Netherlands - Analyst & Journalist Briefing 2014
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NETHERLANDS
Jeff Dodds, CEO Tele2 Netherlands
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Fixed broadband back to growth
0
2000
4000
6000
8000
10000
12000
Activations Churn
Jan-13 Sep-14
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Already high smartphone penetration
High mobile phone tariffs compared to the rest of Europe
4G data positioned as a premium service by
many brands
Enormous potential for data growth
It is good to be a challenger in the Netherlands
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Source: Telecompaper
78% 82%
16%24%
11%17%
April May June July August September
78% 82%
Smartphone Penetration Tele2 4G Enabled Phones Tele2 VoLTE Enabled Phones Tele2
Smartphone penetration, 4G and VoLTE enabled phones in Tele2 NL customer base
Smartphone penetration the Netherlands +12% vs. last year
High smartphone penetration,and still growing
0%
10%
20%
30%
40%
50%
60%
70%
80%
2010 2011 2012 2013 2014
72%
60%
58%
39%
19%
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1517 17 18 19
32 32
DK IR UK TP16 Countries FI BE NL
High mobile tariffs compared to the rest of Europe
Source: Telecompaper: 2014 Q3 analysis of price plans offered in 16 European countries
2014 Q3: SIM only Median TCO per country for 360+ minutes and 2GB+
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High mobile tariffs compared to the rest of Europe
T-Mobile offer KPN offer Vodafone offer
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Enormous potential for data growthComparing our two biggest markets
Tele2 NL Data per user per month | NL vs SE
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2012 2013 2014
NL SE
+ 425%
+ 252%
500 MB
1,800 MB
60 MB
350 MB
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Enormous potential for data growth,Netherlands lagging behind
Source: Tefficient 2013 H1 9
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Consistent growth in customer base
600,000
620,000
640,000
660,000
680,000
700,000
720,000
740,000
760,000
780,000
800,000
Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014
Mobile Customer Base Tele2: 12th consecutive quarter of growth as an MVNO without 4G
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New entrant – No legacy
Acquired the 2600mhz spectrum
Implemented Network sharing
deal with T-Mobile
Acquired 800mhz 4G spectrum.
Spend 80% less than other
operators during the 2012 auction
Faster Roll-Out of the network
Reduced Setup Costs
Reduced Ongoing Costs
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Now Low datausage
Expecteddata usge
High datausage
MVNO MNO
- 85%
• 4G should not be priced at a premium• Our low cost structure provides the basis for
a uniquely priced 4G product in the Netherlands
• No legacy and much lower costs as an MNO provide financial incentive to aggressively promote 4G over 3G
Huge advantage in direct costs
Key takeaways
MVNO (3G)
MNO (4G)
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High quality 4G network to deliver an outstanding customer experience in the Netherlands
Nationwide 4G coverage both in-building and
outdoors
LTE-Advanced from launch, with speeds tested
up to 225 MB
The Network will be VoLTEcapable
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4G launch timetableQ1 2016Q1 2015Q4 2014 Q2 – Q4 2015
Full transfer of employees
Begin new and existing customer
transfer
Completion of national coverage
Expected national Coverage
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The Netherlands remains a high priced
market
Huge potential for data growth in the
Netherlands
Lowest cost operation, with Significant cost
advantage as MNO
Summary
LTE-Advanced network from launch
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>20%
Our market share ambition
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THE BEGINNING
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Q&A
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