TV? Customer Status Outlook - Bell MTS · Strong Regional PlayerStrong Regional Player Exceptional...
Transcript of TV? Customer Status Outlook - Bell MTS · Strong Regional PlayerStrong Regional Player Exceptional...
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NoticeNotice
This presentation contains certain forward-looking statements and there are risks that actual results may differ
materially from those contemplated by these forward-looking statements. Readers should consult Manitoba
Telecom Services Inc.’s filings with the Canadian securities commissions for further information on these risks.
This presentation contains certain forward-looking statements and there are risks that actual results may differ
materially from those contemplated by these forward-looking statements. Readers should consult Manitoba
Telecom Services Inc.’s filings with the Canadian securities commissions for further information on these risks.
MTSMTS
WhyWhy
CustomerCustomer
CurrentCurrent
OutlookOutlook
TV?TV?
StatusStatus
OfferingsOfferings
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The MTS AdvantageThe MTS AdvantageStrong Regional PlayerStrong Regional Player
Exceptional Brand RecognitionExceptional Brand Recognition
Receptive Customer BaseReceptive Customer Base
Dominant Market PositionDominant Market Position
Full Service Telecom ProviderFull Service Telecom Provider
Leader in Operating EfficienciesLeader in Operating Efficiencies
The Manitoba OpportunityThe Manitoba Opportunity
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TelecomTelecom
FoundationFoundationis theis the
MTS StrategyMTS Strategy
TRANSFORMTRANSFORM
EXPANDEXPAND
DEFENDDEFEND
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DEFENDDEFEND
MTS StrategyMTS Strategy
LocalLong DistanceDirectory
LocalLong DistanceDirectory
MTS StrategyMTS Strategy
TRANSFORMTRANSFORM
WirelessHigh-speed InternetWirelessHigh-speed Internet
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Digital TVDigital TVEXPANDEXPAND
Interactive EntertainmentInteractive Entertainment
MTS StrategyMTS Strategy
Grow TheGrow The
C o r e C o r e
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Industry EvolutionIndustry Evolution
Cable & telecom sectors evolvingProviding competitive services to same customers
Cable & telecom sectors evolvingProviding competitive services to same customers
Industry EvolutionIndustry Evolution
IP based technologyKey driverTelecom players in TV marketCable players in telecom market
IP based technologyKey driverTelecom players in TV marketCable players in telecom market
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Industry EvolutionIndustry Evolution
Industry EvolutionIndustry Evolution
Spending on IP based capabilities increasingCapital constraints for many players liftingDecreasing balance sheet leverageNormalized CAPEX levels emerging
Spending on IP based capabilities increasingCapital constraints for many players liftingDecreasing balance sheet leverageNormalized CAPEX levels emerging
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Strong Broadband FoundationStrong Broadband Foundation
Churchill
WinnipegWinnipeg
Gillam
Brandon
Flin Flon
Rivers
Thompson
Grand Rapids
Lynn Lake
Swan River
The Pas
Selkirk Virden
Berens River
Began in 2000Multi-year investment to upgrade network for broadbandHigh-speed Internet reaches 79% of Manitobans
96% of Winnipeg & Brandon
Began in 2000Multi-year investment to upgrade network for broadbandHigh-speed Internet reaches 79% of Manitobans
96% of Winnipeg & Brandon
20002000*At December 31st
20032003
$45 M Total Internet Revenues$45 M Total Internet Revenues
Consumer High-Speed InternetConsumer High-Speed InternetMarket Share*Market Share*
30%30%46%46%
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High-Speed InternetHigh-Speed Internet
Government of ManitobaProvincial Data Network$50 M revenues over 3 yrs.
Leveraged investmentAdded 12,000 households & 1,500 businessesFirst-in advantage
Government of ManitobaProvincial Data Network$50 M revenues over 3 yrs.
Leveraged investmentAdded 12,000 households & 1,500 businessesFirst-in advantage
2000 2001 2002 2003
11,200
61,600
34,000
77,600
20042004 Mid-Teen GrowthMid-Teen Growth
High-Speed Internet High-Speed Internet Consumer SubscribersConsumer Subscribers
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MTS TVMTS TV
Evolutionary phenomenonPotential new servicesImproved efficiencies
Evolutionary phenomenonPotential new servicesImproved efficiencies
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WhyWhy
Profitable GrowthProfitable Growth
Strong DefenseStrong Defense
DeliverDeliver
CreateCreate
TV?TV?
Exceeding initial expectationsExtremely positive results
TechnologyCustomer responseMarket share
Exceeding initial expectationsExtremely positive results
TechnologyCustomer responseMarket share
Digital TelevisionDigital TelevisionProgress ReportProgress Report
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Digital TelevisionDigital TelevisionCustomersCustomers
*Based on Customers at Jan. 31, 2004*Based on Customers at Jan. 31, 2004
26,000-28,00026,000-28,000
200
8,69310,000
Jan 2003 Dec 2003 Jan 2004 2004E
Penetration Rate*
12% Penetration Rate*
12%
Customer Value IndexCustomer Value Index
Overall quality
Price competitiveness
Continuance of service
Recommend to others
Overall quality
Price competitiveness
Continuance of service
Recommend to others
CVI Consistently Over 93% CVI Consistently Over 93%
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What Customers LikeWhat Customers Like
Quality digital signalQuality digital signal
Unique packaging choicesUnique packaging choices
3 simultaneous video signals3 simultaneous video signals
TV call displayTV call display
Voicemail linkVoicemail link
MTS TV PortalMTS TV Portal
Interactive programming guideInteractive programming guide
Improving Customer RetentionImproving Customer Retention
Mo
nth
ly R
even
ue
Per
Cu
sto
mer
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
$220Interactive
EntertainmentInteractive
EntertainmentVODVOD
Digital TVDigital TV
InternetInternet
TelephonyTelephony
Basic LocalEnhanced
Long DistanceWireless
Basic LocalEnhanced
Long DistanceWireless
HSIHSI
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Service BundlesService Bundles
High SpeedHigh SpeedTVTV WirelessWireless
DistanceDistanceInternetInternetLongLong
TV/High-Speed Internet BundleTV/High-Speed Internet Bundle
TV customers with high-speed internetSeptember 30, 2003 - 44%December 31, 2003 - 49%
TV customers with high-speed internetSeptember 30, 2003 - 44%December 31, 2003 - 49%
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Evolve Product PackagesEvolve Product Packages
Increase revenues & reduce churn
One-stop-shopping for all communications needs
Increase revenues & reduce churn
One-stop-shopping for all communications needs
Matching Investment to DemandMatching Investment to Demand
Mitigated Risk - First To MarketMitigated Risk - First To Market
Prudent ApproachPrudent Approach
Digital TelevisionDigital Television
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Digital Television
WinnipegQ3 2003
WinnipegQ3 2003
Winnipeg TV Market DistributionWinnipeg TV Market Distribution
Cable + Cable + SatelliteSatellite3%3%
No TVNo TV
3%3%AntennaAntenna
6%6%SatelliteSatellite
9%9%
Digital Digital WirelineWireline
20%20%
CableCable
59%59%
Analog Analog
Market SizeMarket Size $100M+$100M+
EBITDA & Net Income PositiveEBITDA & Net Income Positive
Financial ProjectionsFinancial Projections
2004 Revenues2004 Revenues $12-$14 M$12-$14 M
20052005
2004 CAPEX2004 CAPEX $35 M$35 M
Digital Television
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Digital TelevisionDigital Television
20032003
2004E2004E
Network Coverage Targets*Network Coverage Targets*
42%42%
66%66%
2005E2005E 85%85%
20022002 9%9%
*Percentage of Winnipeg at Dec 31st*Percentage of Winnipeg at Dec 31st
Current InitiativesCurrent InitiativesContribute to Revenue GrowthContribute to Revenue Growth
Pay-per-viewVideo on demandMTS TV Portal
GamingLocal content offerings
Pay-per-viewVideo on demandMTS TV Portal
GamingLocal content offerings
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Local Content OfferingsLocal Content Offerings
Manitoba MooseWinnipeg's AHL team
Acquired naming rights MTS CenterHome of Manitoba Moose
MTS TV PortalAway from home Moose Games
Manitoba MooseWinnipeg's AHL team
Acquired naming rights MTS CenterHome of Manitoba Moose
MTS TV PortalAway from home Moose Games
Deliver Strong Financial PerformanceDeliver Strong Financial Performance
Strengthen Leadership PositionStrengthen Leadership Position
Capture Growing Revenue StreamCapture Growing Revenue Stream
OutlookOutlook