Accelerating Multi-Play Growth: J:COM Case Study

Mr. Seiichi Morimoto Senior Corporate Officer and General Manager of the Information Technology & Materials Unit, J:COM

Mr. Yoshifumi Fujii General Manager of the AIT Business Support System Development Project Office, J:COM

1 Multi-Channel Market in Japan

2 Overview of J:COM

Needs for BSS Replacement

4

3

Solution and Result

CATV History in Japan

1939 The experimental broadcasting by NHK

1953 The regular broadcasting by NHK

1955 First CATV broadcasting in Ikaho, Gunma Pref. as a poor reception area

1985 First multi Channel CATV service in Tama, Tokyo

1987 BS broadcasting started by NHK

1995 J:COM established as the First MSO in Japan

1996 CS broadcasting started

2014 Total 545 CATV companies in Japan

Measuring the field intensity in Ikaho (Famous for Hot spring)

8.01

3.78

0.96

0

2

4

6

8

10

CATV Sky Pe rfec t IP TV

Overview of Japanese Multi-Channel Market

Source:

・Japan penetration data: As of Sep,2012.

・Hoso Journal (issued in Jul, 2011 ) and SKY Perfect

・JSAT Corporation web site, IPTV data (I-Cast, KDDI,

BBTV, U-NEXT, Cool.revo)

・Total number of households: Ministry of Internal

Affairs and Communications report

・UK penetration data: Office of Communications

(Dec, 2010).

・US penetration data: Nielsen (Dec, 2011).

Penetration rate

0

20

40

60

80

100

Japan UK USA

24%

52%

90%

Source： ・CATV：Hoso Journal (issued in Dec, 2012) ・SKY Perfect JSAT Corporation：Indication material from web site ・IPTV：Ministry of Internal Affairs and Communications report

Subscribing Households （Unit: millions）

TV broadcasting antenna on the Tokyo Sky Tree

2013 Total:12.7M

Multi-Channel Market and J:COM’s Position

Source: CATV：Hoso Journal (issued in Dec,2012), J:COM’s published figures SKY Perfect JSAT Corporation：Indication material from web site IPTV： Ministry of Internal Affairs and Communications report

Operators with

less than 100,000

subscribers

（As of the end of Sep,2013）

Multi-Channel Subscribing Households Multi-Channel Market Share

（Unit: thousands of households）

15%

Multi-Channel

Number of

Subscribing

Households

12.7 mil

4,022

960

397 361 138

287 176 100

3,775

0

2,500

5,000

32%

SKY PerfecTV!

CATV Market and J:COM’s Position

Source: Hoso Journal (issued in Dec,2012), J:COM’s published figures

Operators with less

than 100,000

subscribers

（As of the end of Sep,2013）

CATV Subscribing Households CATV Market Share

（Unit: thousands of households）

30% CATV

Households

8.0 mil

287 361

138 100 176

100

0

1,000

2,000

3,000

4,022

397

52%

4,000

1 Multi-Channel Market in Japan

2 Overview of J:COM

Needs of BSS Replacement

4

3

Solution and Result

History of J:COM

1984 Sumitomo Corporation started Multi-Channel CATV Business

1995 J:COM is established as a joint venture by Sumitomo Corporation

and Tele-Communications International, Inc.（Liberty Global, Inc.）

1999 Started High Speed Internet Service

1997 Started Fixed Phone Service

2004 Started Digital TV Service

2005 Started VOD Service

2007 Started Ultra High Speed (160M/Down stream) Internet Service

2011 J:COM is owned by Sumitomo Corporation and KDDI

2013 Started Electricity Whole Sale

J:COM Overview

Japan’s only “Comprehensive Media Company”

that has both the platform and content

Jupiter Telecommunications

▼Establishment ：Jan 18, 1995

▼Paid-in-Capital :37.6 billion yen

▼Employees：13,838 (entire group)

（As of the end of March, 2014. Including JCN）

Scale of Cable Television Business

Invests in and operates 17 channels

Media Business

Manages program supplying companies

5.0 mil

Subscribing Households*

13.1 mil Connected Homes

19.2 mil Homes Passed

（As of the end of March, 2014）

Cable Television Business

Manages Cable Television Companies Offer multiple broadcasting and telecommunication services

* Total Number of Subscribing Households

= the number of households subscribing at least one service

Cable Television Business

5.01 million Households

3 services provided together

4.24 mil

3.39 mil 2.75 mil

Triple Player Service Deployed in 5 Urban Areas

•

•

• • •

• •

•

• • •

•

• • Kansai

Sapporo

Kanto

Kyushu

Sendai

（As of the end of Feb, 2014. Including JCN. JCN Group calculates subscribing HH using logic different from J:COM. In the future, when JCN starts applying

J:COM’s logic, the JCN figures may change.

0.12 mil

0.05 mil

3.16 mil 1.29 mil

0.38 mil

・Japan’s Largest Multiple System Operator (MSO)

・Pioneer in Triple Play Business

(Cable television, Internet access, Telephony)

Media Business

Sport Documentary Drama Movie Animation News

Hobby

11 companies (17 channels)

5 consolidated subsidiaries, 2 equity method affiliates, 4 others

・Japan’s Largest Multiple Channel Operator (MCO)

・ Invests and operates 17 channels

In 2012, consolidated Asmik Ace, major film company

Door to Door Sales

J:COM Cars Direct communication with customers

Excellent customer support

J:COM SHOP

Customer Centers

Community Channel

New touch point rooted in the community

Approximately 2,500 sales staffs

82 shops

10 centers

Community-based Operation

Technical Center 20 centers

Technical support by visiting customers

（As of the end of Mar,2013）

The Operator with a Familiar Face

Local community information on air

(LIVE program “Tsunagaru Go Go” )

1 Multi-Channel Market in Japan

2 Overview of J:COM

Needs for BSS Replacement

4

3

Solution and Result

What J:COM BSS Looks like?

DSR

CSR, TeleSales

Shop

Field Engineer, Dispatch

Web, Mail, SNS

Services

Financial

Broadcaster

Tele- communication

Printing

Mailing

J:COM Business Support System in 2009

Order Entry

Reporting/BI

Back Office Support

Telephony Rating

Work Force Management

Data Exchange Platform

Self Service

Service Platform

Mapping

CTI/PDS

3rd Party Partners

J:COM Channel

CRM Siebel

Billing Smart Pack

History of J:COM BSS

1996 Implemented US Computer Service (DST Innovis(1999)

amdocs(2005)) InteleCable2.5 as a core of CATV business

2005 Implemented Siebel as CRM

2009 Started BSS replacement project with SCSK(Japanese SIer)

/amdocs by implementing amdocs CRM and Smart Pack

2011 Implemented amdocs CRM7.5.2

2013 Implemented Smart Pack 8.5

Needs for BSS Replacement

Rapid growth of subscribers and products

HP 11 times up

Subs 31 times up

1995 1.7 mil HP/0.16mil Subs

TV Only

2014 19.2 mil HP/5 mil Subs

Omni-Channel

Complicated System Structure

Inefficient Data Flow

Losing Agility

Ensuing system additions resulted losing system

development agility and push up the cost

Because 30% Call to Customer Center was related Billing enquiry, CRM and Billing Integration was

urgent issue

1 Multi-Channel Market in Japan

2 Overview of J:COM

Needs for BSS Replacement

4

3

Solution and Result

Main issues in BSS

Silo Type System Development Scattering User Interface

Drained System Codes

Billing

CRM

Self

Service

WFM

BI Report

CRM

Billing

WFM Back

Office

New Service OTT Service New Device

Too many screens…

No more codes

to define new Service!! Which service

should I choose?

Overwhelming # of New Products/Service

What J:COM aimed for?

ETL（Data Exchange Platform）

Service Platform

amdocs

CRM

Smart

Pack BOS WFM

Service

Provisioning To Be System

UI Integration

Order

Entry

Self

Service

To Be

System

Integrated Reporting/BI

New Features •Code Expansion

•Product Catalog

•Multiple Order

•Order Audit

Other Systems

How J:COM developed the BSS?

2009 2010 2011 2012 2013 2014

Phase I

amdocs CRM development

Phase II

Smart Pack and Other system development

Implementation

Implementation

Project Start CRM Replaced Billing & Other Systems

Replaced

Task Force for Implementation

• Divided into 2 Phases – CRM Replacement, and Billing & Other

Systems replacement

• For a safe implementation, Internal Task Force was established

Outcome of Implementation

System Code Expansion

0.99 Million House Hold expanded 10M Million

Product code (represents Service and Price) 1,260 expanded 3,782

Most system code were expanded to double

Rapid growth of Subscribers and Products

Call Center

5% increased Productivity by amdocs CRM

16% less calls from DSR to Call Center by implementation of Order Entry system

Reduced order entry time by “Quick Order” in Smart Pack Reduced work load by “Multiple Order” in Smart Pack

5% after call work (ACW) reduced by “Optimized screen” in Smart Pack

8% less workload by new feature in Smart Pack Back Office Center

Dispatch Center Reduced workload by Optimized screen in Smart Pack

Complicated system structure

Outcome of Implementation

Field Engineer Reduced inputting time by Performance Optimization in WFM

DSR Reduced inputting time by Optimized screen in order entry system

Removed phone communication with Call center by amdocs CRM Improved data maintenance work load by MDU mgt system

DSR Administrator

Outcome of Implementation

Penetrate into the heat…