8/3/2019 Fast Forward VNPT Ho Chi Minh
1/59
All Rights Reserved Alcatel-Lucent 2006, 21095
Fast Forward for VNPTIts all about broadband
Eric Festraets
Director Broadband Marketing and Consulting
April 25th, 2007
8/3/2019 Fast Forward VNPT Ho Chi Minh
2/59
All Rights Reserved Alcatel-Lucent 20072
Outline
Introduction We created the Fast Forward Program for helping our customers optimise Broadband
Strategy and Marketing Strategy The Why and the How of Broadband
Growth Potential Customer Forecast - Business Case Competitive/Regulatory Situation
Marketing The Go-To-Market for Broadband
Product (Service Packages, Usage Limitations, Value-Added Services,)
Price (Willingness-to-pay, Competitive Positioning, Social Classes, ) Promotion (Advertisement Campaigns, Customer Education, Mass Media, )
Place (Sales Channels : Websites, Agents, Call Centers, )
Operations Optimise Service Fulfillment : Customer Provisioning - Intake Self-Installation
Organise Service Assurance : Customer Churn Avoidance Satisfaction - SupportNetwork Economics
From ADSL to all DSL flavours - Deeper Fiberisation (FTTN FTTH) WiMAX
Examples of Projects and Success Stories
Conclusion
8/3/2019 Fast Forward VNPT Ho Chi Minh
3/59
All Rights Reserved Alcatel-Lucent 20073
Outline
Introduction We created the Fast Forward Program for helping our customers optimise Broadband
Strategy and Marketing Strategy The Why and the How of Broadband
Growth Potential Customer Forecast - Business Case Competitive/Regulatory Situation
Marketing The Go-To-Market for Broadband
Product (Service Packages, Usage Limitations, Value-Added Services,)
Price (Willingness-to-pay, Competitive Positioning, Social Classes, ) Promotion (Advertisement Campaigns, Customer Education, Mass Media, )
Place (Sales Channels : Websites, Agents, Call Centers, )
Operations Optimise Service Fulfillment : Customer Provisioning - Intake Self-Installation
Organise Service Assurance : Customer Churn Avoidance Satisfaction - SupportNetwork Economics
From ADSL to all DSL flavours - Deeper Fiberisation (FTTN FTTH) WiMAX
Examples of Projects and Success Stories
Conclusion
8/3/2019 Fast Forward VNPT Ho Chi Minh
4/59
All Rights Reserved Alcatel-Lucent 20074
Fast Forward for every phase of broadband adoption
BroadbandStartup High Speed Internet Access
BroadbandBoost
Triple
Play
Operational ExcellenceBusiness DSL
Data, Voice and Video
New packages
Business CaseService DefinitionTime
# subscribers
Broadband Deployment
Broadband Consulting program Fast Forward
5 years of practice 50 ETSI operators involved
8/3/2019 Fast Forward VNPT Ho Chi Minh
5/59
All Rights Reserved Alcatel-Lucent 20075
Optimize User
Communication
Optimize Broadband
Service Uptake
Optimize Access
Deployment
Optimize OperationalExcellence
Operations
Front-office
Service provisioning
Business case sensitivities
Customer acquisition cost Customer support
Marketing
Local market analysis
Market & Demand forecast
Price sensitivity, segmentation
Service launch
Sales channels
Advertisement campaigns
Service bundling
Network Economics
xDSL flavours
Deeper fiberisation
PON versus P2P
WiMAX as complement
Strategy BusinessCase/Analysis
Regulatory Aspects
Service delivery models
Cannibalization effects Competition
The Domains of Broadband Business
8/3/2019 Fast Forward VNPT Ho Chi Minh
6/59
All Rights Reserved Alcatel-Lucent 20076
Fast Forward Strategy and Marketing
Why and howto deploybroadbandservices ?
How do I getmy broadbandservices sold ?
How to streamlineoperations and
processes ?
Economical aspectsof combining
access technologies?(DSL/Fiber/WiMAX)
Strategy Marketing Operations Network Economics
The four domains of broadband consulting
Strategy and Marketing
Evolution of todays Service Providers arena (ILEC-CLEC-Cable-Mobile-)
The Competitive Playground and Weapons for fixed operators
Broadband Start-up Package for Early Adopters (High-Growth Economies)
Evolution of Residential Communication and Entertainment Services
Future Vision
VoIP, IPTV, HDTV, Blended Services, Online and Offline,
Best Practices and Service Packaging
Examples of offerings, residential and business
Business Analysis and Service Definition for Triple Play
The example of Telkom South Africa (Why, how and when IPTV?)
Practical Cases
Algerie
8/3/2019 Fast Forward VNPT Ho Chi Minh
7/59
All Rights Reserved Alcatel-Lucent 20077
Fast Forward Operations
Why and howto deploybroadbandservices ?
How do I getmy broadbandservices sold ?
How to streamlineoperations and
processes ?
Economical aspectsof combining
access technologies?(DSL/Fiber/WiMAX)
Strategy Marketing Operations Network Economics
The four domains of broadband consulting
Operations Operational Excellence for Broadband Boost (HSI)
Analysis of Service Fulfillment procedures
Analysis of Service Assurance procedures
Recommendations on optimisation of operations
Operational Excellence for Triple Play
Analysis of Service Fulfillment/Assurance for Triple Play
Best Practices on Home Networking
Best Practices on Residential Gateways/CPE offerings
Generic Recommendations and Economical Considerations on
Triple Play Operations
Practical Cases
8/3/2019 Fast Forward VNPT Ho Chi Minh
8/59
All Rights Reserved Alcatel-Lucent 20078
Fast Forward Network Economics
Why and howto deploybroadbandservices ?
How do I getmy broadbandservices sold ?
How to streamlineoperations and
processes ?
Economical aspectsof combining
access technologies?(DSL/Fiber/WiMAX)
Strategy Marketing Operations Network Economics
The four domains of broadband consulting
Network Economics The CAPEX Investment Case for Access Technologies
Deploying various DSL flavours (ADSL, ADSL2+, )
Deploying fiber to the node (FTTN, VDSL2)
Deploying fiber to the home (FTTH, GPON)
Comparison study FTTN (VDSL2) versus FTTH (GPON)
Comparison study PON versus PTP and Active Ethernet
The UmbrellaBusiness Case for Triple Play
ARPU for Triple Play Services
CAPEX needed for access network deployment
OPEX related to access network deployment and service availability
Practical Cases
8/3/2019 Fast Forward VNPT Ho Chi Minh
9/59
All Rights Reserved Alcatel-Lucent 20079
Define the scope ofthe project
(mandatory !)
Identify the criticaldomains and issues
Define action planfor coming weeks
Get commitmentfrom managementfor that action plan
Agree on projectresponsibles andparticipants fromcustomerorganisation
Recommendations file(powerpoint) describing
Project objectives and
methodology
Key findings andrecommendations
Detailed analysis andrecommendations onthe defined topics
Additional information
useful for further action
Impact area of therecommendations
Ends with final
recommendations
presentation session
ACTIONPLAN
Kickoff Diagnosis
Synthesis
Recommendations
Separate workshops withresponsibles for info gatheringon strategy, marketing,operations, network
economics
Roundup of existing material
Organising additional marketresearch if needed
Questionnaire availability
Benchmark with worldwideexpertise
Interpretation marketmaterial
Conducting gap analysis
Overview of FFWD capabilities What is it ? How can we help you ? Overview best practices References
Discovery of issues in broadband Strategy Marketing
Operations Network Economics
Collection of primary feedback
Concrete discussions on FFWD
Discovery Workshop
Generic Fast Forward Project Flow
The Methodology of Fast Forward projects
8/3/2019 Fast Forward VNPT Ho Chi Minh
10/59
All Rights Reserved Alcatel-Lucent 200710
Outline
Introduction We created the Fast Forward Program for helping our customers optimise Broadband
Strategy and Marketing Strategy The Why and the How of Broadband
Growth Potential Customer Forecast - Business Case Competitive/Regulatory Situation
Marketing The Go-To-Market for Broadband
Product (Service Packages, Usage Limitations, Value-Added Services,)
Price (Willingness-to-pay, Competitive Positioning, Social Classes, ) Promotion (Advertisement Campaigns, Customer Education, Mass Media, )
Place (Sales Channels : Websites, Agents, Call Centers, )
Operations Optimise Service Fulfillment : Customer Provisioning - Intake Self-Installation
Organise Service Assurance : Customer Churn Avoidance Satisfaction - SupportNetwork Economics
From ADSL to all DSL flavours - Deeper Fiberisation (FTTN FTTH) WiMAX
Examples of Projects and Success Stories
Conclusion
8/3/2019 Fast Forward VNPT Ho Chi Minh
11/59
All Rights Reserved Alcatel-Lucent 200711
Broadband Market DynamicsWorldwide uptake of broadband
By the end of 2006 :
More than 260 Millionbroadband subscribers worldwide
Significant Growth Potential
8/3/2019 Fast Forward VNPT Ho Chi Minh
12/59
All Rights Reserved Alcatel-Lucent 200712
Broadband Market DynamicsSubscribers to Date
Today : 800K DSL subscribers in Vietnam representing 0.9% of population (84M)(Having End 2006 14.5M Internet Users (17% of population))
China 34.9M DSL subscribers representing 2.65% of population (1.3B)
Malaysia 732K DSL subscribers representing 2.82% of population (26M)
8/3/2019 Fast Forward VNPT Ho Chi Minh
13/59
All Rights Reserved Alcatel-Lucent 200713
Broadband Market DynamicsThe case of India What is influencing broadband uptake?
Factors affecting broadband in India
Unequal income and wealth
Level of competition increasing deployment
Price decline contributes to broadband uptake
PC penetration being major constraint
Cost of CPE being key
BSNL :
Broadband Access package combining
Cheap PC (370 USD)
DSL link at 256 K (11 USD)
400 M download limit
8/3/2019 Fast Forward VNPT Ho Chi Minh
14/59
All Rights Reserved Alcatel-Lucent 200714
1 Public initiatives and policyTELECOM POLICY MAKERS
3 User awareness and expertisePUBLIC EDUCATION
2 Adequate and relevant contentCONTENT PROVIDERS
4 Services affordability/accessibilityNETWORK SERVICE PROVIDERS
Broadband StrategyWhat are the hurdles for broadband in high-growth economies?
8/3/2019 Fast Forward VNPT Ho Chi Minh
15/59
All Rights Reserved Alcatel-Lucent 200715
Broadband Strategy
High-Growth Economies : Enabling social and economic development
Internet as prime communication tooloffering useful end-user servicesregarding local daily concerns
Internet as a public utility
e-education e-health e-government
Internet offered via community accessno more barriers for illiterate people
no barriers of affordability
Broadband enables the uptake of applications
8/3/2019 Fast Forward VNPT Ho Chi Minh
16/59
All Rights Reserved Alcatel-Lucent 200716
Broadband Market DynamicsGovernment Initiative
Report of Point-Topic on Governments involvement in Vietnam
In Sept 2005, Vietnams Information Development Strategy to 2010 was announced.
It emphasizes ICT as a significant factor in the country's social-economic development.
The governments vision is that by 2010:
Vietnams ICT industries will achieve an annual growth rate of 20-25% and revenue of US$ 6-7 billion. Teledensity will reach reach 32-42 units/ 100 inhabitants. Internet subscribers will reach as high as 8-12% of the total population with 30% being bb subscribers. Internet user will then total 25-35% of the country's population. Alternative telecom providers will achieve a 40-50% market share, leaving VNPT to the remainder.
As part of this new initiative, VND 5,200 billion (US$ 325 million) will be invested inimproving public telecom services. The Vietnamese government hopes that this willaccelerate the take-up of telecom and internet services, especially, in mountainous,remote and rural areas.
Where are we today?
8/3/2019 Fast Forward VNPT Ho Chi Minh
17/59
All Rights Reserved Alcatel-Lucent 200717
Broadband Strategy : High-Growth Economies
The power of broadband for telemedicine
Committed high data rate for
Distant real time consulting Video-conferencing (quality of the image)
Audio-conferencing (quality of the sound)
Remote diagnosis (good interpretation of real time patient data)
Exchange of medical data (radiology, photographs, files) Remote online education and distance training
Secured and reliable always-on connection for
Confidential patient information
Undisturbed and adequate interpretation of data
Backup and storage of patients data
8/3/2019 Fast Forward VNPT Ho Chi Minh
18/59
All Rights Reserved Alcatel-Lucent 200718
Broadband Strategy : TestimonyExample of e-Health (Bell Canada Rural areas)
will I have to go to the hospital again ?
8/3/2019 Fast Forward VNPT Ho Chi Minh
19/59
All Rights Reserved Alcatel-Lucent 200719
e-education/telemedicine/e-governmentIndia e-seva project
The Government of Andhra Pradesh has a clear vision to create a knowledge
society by using Information Technology in all aspects of development andgovernance. Pioneering efforts are being made to reach the benefits of IT to thecitizens - urban and rural, rich and poor, literate and illiterate. The Government isconscious of the dangers of the 'digital divide', and is making special provisions forreaching the 'information have-nots'.
8/3/2019 Fast Forward VNPT Ho Chi Minh
20/59
All Rights Reserved Alcatel-Lucent 200720
Marketing : ProductMulti-Services Will Drive Broadband Adoption
DSL Dial-upconversion Non-internetPC conversion Non PCconversion
2
Flexible pricing &Bandwidth management
3New services
over PC
4
Beyond PCTV setsAll Devices
Broadband
Penetration(% households)
30-60% have a PC
20-40%are on the web
5-15% have alreadybroadband
100%
~100% have a TV set
50%
25%
75%
15-30% have broadbandpotential
1Aggressivemarketing
300%? w/mobile users
HSIBusiness Access
GamingPC Video & Music
HSI Broadcast TV, HDTVVoD, Voice, Visio P2P
IncreasedARPU
KeyServices
8/3/2019 Fast Forward VNPT Ho Chi Minh
21/59
All Rights Reserved Alcatel-Lucent 200721
Marketing : ProductFlexible Pricing and Bandwidth Management
Assure the basic requirements & expectationsbut
go beyond access only :
offer ICE services
Time
VolumeBandwidth
Content
Flexible Pricing and
Bandwidth Management
Offerings with various speeds (volume/time caps)
Decrease churn by offering value added services Bundles with WiFi Security (anti-virus/parental control/) Portals with content
8/3/2019 Fast Forward VNPT Ho Chi Minh
22/59
All Rights Reserved Alcatel-Lucent 200722
Marketing : Product and PriceAggressive entry level offer
2004: Flexisurf : Prepaid Pay per day DSL
4Mbps for 2,5 S$ per day (40S$ installationfee, 99S$ modem)
Min 3 days consecutive days
2006: Free 1 year DSL Free on-net traffic and access to partner
websites at 4Mbps
Services: IM, mail, gaming, music, education,eGov (dedicated sites)
Surf beyond the "free access" sites by paying forFlexiSurf access (credit card or StarHub's pre-paid
FlexiCard) FlexiSurf is available at a daily rate of only S$2.50
per day, at a minimum of three and a maximum ofper transaction.
A regular plan with unrestricted 4 Mbps service will costS$59 per month; 30 MBps service is S$122
2002: 20h time limited DSL offer
2004: Free DSL: 256 kbps at 0 per month
2 per hour (~ double dial up), pre- or postpaid),CPE at 100 (incl 25h)
Results:
6 months after intro 81% of new subs took this package
Average usage : 17hr per month
Easy upsell to non-free packages
Countering Singtels entry-leveloffer Jetpack (Volume limit)
Countering Fastweb, Tiscali & Wind Offers
k i d
http://www.starhub.com/8/3/2019 Fast Forward VNPT Ho Chi Minh
23/59
All Rights Reserved Alcatel-Lucent 200723
Broadband saturation due to PC penetration being the limiting factor ? What to do ?
Active push of residential PC penetration Operator can revamp the PC + DSL bundle offer initiative (cfr Telmex, Jordan Telecom, Versatel, )
Operator can also lobby at e.g. government to set-up PPP (Public-Private Partnerships)
Offer non-PC services over DSL Dedicated STB for internet on TV allow limited on line activities (cfr Microsoft MSN TV at http://www.webtv.com)
Actively target the gaming console community (cfr BT Yahoo gaming with Xbox life and PS2 online). This will rather work as valueadded service (and can drive ARPU) than as subscriber magnet: hardcore gamers are early adopters and presumably have DSL anyway
Initiate IPTV deployment
Dutch PC & internet penetration
Residential PC vs BB penetration
0
5
10
15
20
25
2001 2002 2003 2004 2005 2006 2007
PC penetration (%)
BB penetration (%)
BB potential (70% of PC HH)
Marketing : ProductPC penetration can be limiting factor
Marketing : Product
8/3/2019 Fast Forward VNPT Ho Chi Minh
24/59
All Rights Reserved Alcatel-Lucent 200724
Marketing : Product
Example of the Philippines - PLDT
1 Euro = 64 PHPesos
1 Euro = 21K Dong
1 PHPeso = 328 Dong
Marketing : Product
8/3/2019 Fast Forward VNPT Ho Chi Minh
25/59
All Rights Reserved Alcatel-Lucent 200725
Marketing : Product
Example of frontrunner :Belgacom ADSL product in 2004
Residential market
Professional market
30 40 55 99 150 199 395
ADSL LightADSL
Skynet Go
ADSLSkynet
Plus
ADSL Pro
CompactADSL Pro
ADSL
Office
ADSL Offic
guaranteed
# PCs 1 1 4 4 10 unlimited unlimited
Max download speed 512 k 3,3M 4M 4,6M 4,6M 4,6M 4,6M
Guaranteed - - - - - - 256k
Max upload speed 128k 192k 256k 256k 256k 384k 640k
Guaranteed - - - - - - 64kMonthly Volume 400 MB 10 GB 30 GB unlimited unlimited unlimited unlimited
IP address dynamic fixed
Security -
optional
Skynet
Security
Pack
1 Skynet
Security
Pack
included
Firewall
CPE modem router
Webspace - 50 MB 20 MB Unix hosting
Marketing : Product
8/3/2019 Fast Forward VNPT Ho Chi Minh
26/59
All Rights Reserved Alcatel-Lucent 200726
Marketing : Product
Example of frontrunner :Belgacom ADSL product today
Low-priced
naked DSL
M k ti P d t
8/3/2019 Fast Forward VNPT Ho Chi Minh
27/59
All Rights Reserved Alcatel-Lucent 200727
Broadcast TV
VODInteractive TV
Unicast
Broadcast Personalization
BUY
PersonalizedAdvertising
Communications TV
Personal ChannelsMaps on TV
Ann ishere
Mobile TV
Blended Weband TV
Blended IntelligentHome and TV
Increased bandwidth
More interactivity
More personalization
Marketing : ProductThe move to IPTV : Personalized Multi-Media applications
DIFFERENTIATED OFFERINGS
M k ti P d t
8/3/2019 Fast Forward VNPT Ho Chi Minh
28/59
All Rights Reserved Alcatel-Lucent 200728
Marketing : ProductIPTV : Shift in TV experience
M k ti g P d t
8/3/2019 Fast Forward VNPT Ho Chi Minh
29/59
All Rights Reserved Alcatel-Lucent 200729
Marketing : ProductIPTV and business rationales worldwide
Marketing : Product
8/3/2019 Fast Forward VNPT Ho Chi Minh
30/59
All Rights Reserved Alcatel-Lucent 200730
Marketing : ProductBundles (HSI, Voice, IPTV, Mobile) critical to keep churn under control
1 to 2 services
Starhub: Mobile + cable TV churn rate is 18% lower than for mobile-only households AT&T 2005 results: bundling broadband to voice reduces churn with 40%
BellSouth: when local or long-distance sub adds just one additional serviceDSL,wireless, or dialupchurn declines ~45 percent
2 to 3 services
48% of UK dual play customers would switch for a 25% discount. This falls to 27% fortriple play users (Citigroup)
AT&T 2005 results: bundling both broadband andmobile with voice reduces churn 60%
3 to 4 services 39.7% of Canadian consumers with phone/mobile/internet bundled are likely to switch
at a 15% discount. With TV in the bundle, switchers drop to 19.6% (Yankee)
Marketing : Product
8/3/2019 Fast Forward VNPT Ho Chi Minh
31/59
All Rights Reserved Alcatel-Lucent 200731
Marketing : ProductKey factors for Broadband for SoHo/SME
Data access becomes independent from device (and transport)
Diversification of offerings along size & verticals
Focus moves from network & technology towards applications
Security is growing in importance
Increased demand for managed services
Customer needs,behaviors
Marketstructure,
competitivedynamics
Evolution ofservice offerings
New communication services are IP based
Ongoing LL DSL migration
IT & System integrators (IBM, Accenture, ..) moving down the
value chain
VoIP players target SME & enterprise too
Marketing : Promotion
8/3/2019 Fast Forward VNPT Ho Chi Minh
32/59
All Rights Reserved Alcatel-Lucent 200732
Marketing : PromotionThe broadband advertisement cycle (according to a non-advertiser)
CHASM
Early adopters Mass Market
LaggardsMajority
1
2
3
4
5
6
7
8
9
1: DSL finally available2: DSL: the smooth way
to surf the internet, kbps3: low action
4: Announce entry level packages5: Campaign: DSL as the ideal online product(cheaper than dial up, including easy VAS)6: low action
7: Announce e.g. PC + DSL8: Campaign: DSL for everybody:
(dial up is almost useless, ADSLis default product)9: low actionP
roductCa
mpaigns
Image
Campaigns A B C
A: Bandwidth & SpeedB: Applications, benefits, atmosphereC: Older people, lower classes, advertise internet rather than DSL
M k ti P ti
8/3/2019 Fast Forward VNPT Ho Chi Minh
33/59
All Rights Reserved Alcatel-Lucent 200733
Marketing : PromotionCommunication : Examples of promotion clips
You are no longer used to wait
The value proposition of broadband
Marketing : Place
8/3/2019 Fast Forward VNPT Ho Chi Minh
34/59
All Rights Reserved Alcatel-Lucent 200734
Marketing : PlaceSales Channels
1.Telco Website
2.Telco shops
Also mobile shops?
3.Licensed Dealers
Supermarkets, PC vendors, Self-install box remains key for visibility (& operational
bandwidth!)
4.Call Centres
In- and outbound5.Direct Marketing
Door to door, demos in at public places,
8/3/2019 Fast Forward VNPT Ho Chi Minh
35/59
All Rights Reserved Alcatel-Lucent 200735
Outline
Introduction We created the Fast Forward Program for helping our customers optimise Broadband
Strategy and Marketing Strategy The Why and the How of Broadband
Growth Potential Customer Forecast - Business Case Competitive/Regulatory Situation
Marketing The Go-To-Market for Broadband
Product (Service Packages, Usage Limitations, Value-Added Services,)
Price (Willingness-to-pay, Competitive Positioning, Social Classes, ) Promotion (Advertisement Campaigns, Customer Education, Mass Media, )
Place (Sales Channels : Websites, Agents, Call Centers, )
Operations Optimise Service Fulfillment : Customer Provisioning - Intake Self-Installation
Organise Service Assurance : Customer Churn Avoidance Satisfaction - Support
Network Economics From ADSL to all DSL flavours - Deeper Fiberisation (FTTN FTTH) WiMAX
Examples of Projects and Success Stories
Conclusion
Operationel Excellence
8/3/2019 Fast Forward VNPT Ho Chi Minh
36/59
All Rights Reserved Alcatel-Lucent 200736
- 45%
NO SERVICE REACH
(BW/DISTANCE)
- 15%
SALES INEFFICIENCY
- 28 %
OPERATIONAL ISSUES
Only 12 customers out of 100 prospects ?
Front officeordering
Networkprovisioning
CPE (self-)installation
Customersupport
Service Fulfillment Service Assurance
Operationel ExcellenceThe commercial and operational learning curve
Operationel Excellence
8/3/2019 Fast Forward VNPT Ho Chi Minh
37/59
All Rights Reserved Alcatel-Lucent 200737
Successful Self Installation (%)
Customer Support Calls
during installation (per user/first month)after installation (per user/month)
Activation time (working days)
Order success rate (%)Installation order cancellations (%)Yearly churn (%)Customer dissatisfaction with deliveryCustomer dissatisfaction with services
70
2.00.4
5.0
9510.08.0
15.010.0
MeanAverage
90% (SBC)
0.50.05 (BGC)
2.0 (FT)
100 (BGC)2.0 (BGC)5.0 (BGC)10.0 (KPN)
5.0
Bestin class
BGC: Belgacom
FT: France Telecom
KPN: Netherland
SBC: United States
To compete, service providers must at least
perform at the mean averagebut to win, they should be best in class!
Operationel ExcellenceTarget objective benchmarks
8/3/2019 Fast Forward VNPT Ho Chi Minh
38/59
All Rights Reserved Alcatel-Lucent 200738
Outline
Introduction We created the Fast Forward Program for helping our customers optimise Broadband
Strategy and Marketing Strategy The Why and the How of Broadband
Growth Potential Customer Forecast - Business Case Competitive/Regulatory Situation
Marketing The Go-To-Market for Broadband
Product (Service Packages, Usage Limitations, Value-Added Services,)
Price (Willingness-to-pay, Competitive Positioning, Social Classes, ) Promotion (Advertisement Campaigns, Customer Education, Mass Media, )
Place (Sales Channels : Websites, Agents, Call Centers, )
Operations Optimise Service Fulfillment : Customer Provisioning - Intake Self-Installation
Organise Service Assurance : Customer Churn Avoidance Satisfaction - Support
Network Economics From ADSL to all DSL flavours - Deeper Fiberisation (FTTN FTTH) WiMAX
Examples of Projects and Success Stories
Conclusion
8/3/2019 Fast Forward VNPT Ho Chi Minh
39/59
All Rights Reserved Alcatel-Lucent 200739
Broadband Network Economics
CentralOffice
FTTN FTTU
Areas with copper
GPONADSL2+Served from Central Officeand Multi Dwelling Units
(fiber-to-the-building)
Greenfield areas
Today: Urban areas(early adopters)
ExtensionsUrban/Suburban
(mass-market)
ADSL2+/VDSL2Extend Central Office footprint
with cost-effective FTTNextendable with remote sealed units
WiMAX(802.16e-2005)
ExtensionsRural/RemoteCommunities(mass-market)
Greenfield areas
Optimize Access Network forEvery Deployment Strategy
Broadband Network Economics :
8/3/2019 Fast Forward VNPT Ho Chi Minh
40/59
All Rights Reserved Alcatel-Lucent 200740
Broadband Network Economics :Full Reach Investment Case
1. CAPEX model
Equipment + installation (as % of equipment cost default: 10%) Site development
Optical Fiber + installation
CPE
2. Comparison of different technologies & topologies
xDSL
From CO or FTTN
GPON
Possibly from Super CO
PtP/Active Ethernet
WiMAX
3. Two configurations, four services Initial take-rate
Final take-rate
Fiber to the Most Economical Point
Broadband Network Economics :
8/3/2019 Fast Forward VNPT Ho Chi Minh
41/59
All Rights Reserved Alcatel-Lucent 200741
CAPEX comparison for FTTx Outside Plant costs for FTTU overlay
Note: CAPEX including CPE at 33% FTTx uptake
FTTU incurrent ducts
0
5
10
Fibre, trenching
Cabinet install
Access HW
CO FTTN FTTUnew
CAPEX
(Index)
FTTUAerial
15
Ref = 1
Drop:
the highest constraints
33%
Distribution fiber (includinginstalling ducts) 63%
splitters+cross-connect
4%
Feeder1%
Divided by 2 ifavailable ducts
Cost-effective coverage with a mix of technologies
FTTU where ducts costs are syndicated or greenfield
FiberDucts
Broadband Network Economics :Fiber to the Most Economical Point
B db d N t k E i
8/3/2019 Fast Forward VNPT Ho Chi Minh
42/59
All Rights Reserved Alcatel-Lucent 200742
Broadband Network EconomicsTwo Ways Forward for Mass Market Broadband Access
Pros: Copper re-use, TTM
Cons: Many nodes, Future Safe?
Copper-Centric
DSLAM(ADSL)
FTTH /
FTTB
>100 Mbps
25 Mbps
3-5 Mbps
100%
85%
2005 2010 2015
RehabGreenfield
Coverage
VDSL2
50 MbpsADSL2+
Fiber-Centric
Pros: Consolidation, Future Safe
Cons:TTM, cabling in buildings
DSLAM(ADSL)
FTTH /
FTTB
>100 Mbps
25 Mbps3-5 Mbps
100%
85%
2005 2010 2015
Rehab
Greenfield
ADSL2+
Coverage
Broadband Network Economics :
8/3/2019 Fast Forward VNPT Ho Chi Minh
43/59
All Rights Reserved Alcatel-Lucent 200743
Broadband Network Economics :Full Reach Investment Case Example
Final Configuration (40% take rate):
EUR per subscriber
0
200
400
600
800
1000
1200
CPE 25 41 41 150 150 103 103 225
Fiber 0 28 161 590 177 656 243 631
Site development 0 51 51 99 99 94 94 155
Equipment 50 104 104 83 83 149 149 102
ADSL/CO
3 services
ADSL/CO
VDSL/DSA
Ducts
ADSL/CO
VDSL/DSA
No ducts
ADSL/CO
GPON/Super CO
No ducts
ADSL/CO
GPON/Super CO
Ducts
ADSL/CO
PtP/CO
No ducts
ADSL/CO
PtP/CO
Ducts
GPON/Super CO
No ducts
Broadband Network Economics :
8/3/2019 Fast Forward VNPT Ho Chi Minh
44/59
All Rights Reserved Alcatel-Lucent 200744
1
10
30
50
1 5 30 50 100 1000
Wifi
or
Wifi
or
70
80
30
WIPor
WiFi
+
Satellite
WIPor
WiFi
+
Satellite70
Herzien
ELLITEE2E 2way Satellite
Average
Microvillage
Large
Village
1 5 30
UrbanUrban
DSL
Urban
Ref.Price
X1= 12
x2
50 100 1000
x4
x2.5
DSL/WiMAX
+
Satellite
Backhauling distance (km)
# connected usersFirst technology listed is the access technology, while the second one is the backhauling technology
Reference price is the cost to deploy DSL in urban areas (min 200 users/DSLAM) for a competitive operator (LLU in line sharing mode)
15
E2E WiMAX
or
DSL + WiMAX
x4DSL +
Wave x4
x1,5 x2
x3x2,5...
DSL + Fiber (with light civil works)
End to End Cost + WiMAX
Rural Market
Broadband Network Economics
8/3/2019 Fast Forward VNPT Ho Chi Minh
45/59
All Rights Reserved Alcatel-Lucent 200745
Cost comparison WiMAX versus DSL - Summary Facts
If copper is available, WiMAX solution cost is high compared to xDSL for most ofthe configurations
Presumably prohibitive for commercial deployment, unless in very lowdensity areas where basic HSI is sufficient
CPE prices currently significant burden, but will drop drastically withstandardisation & volumes (same pattern expected as for DSL CPEs)
Base stations prices also expected to drop dramatically (15% on a yearlybasis)
Comparison model is available can be customised to Vietnam in interactivesession
8/3/2019 Fast Forward VNPT Ho Chi Minh
46/59
All Rights Reserved Alcatel-Lucent 200746
Outline
Introduction We created the Fast Forward Program for helping our customers optimise Broadband
Strategy and Marketing Strategy The Why and the How of Broadband
Growth Potential Customer Forecast - Business Case Competitive/Regulatory Situation
Marketing The Go-To-Market for Broadband
Product (Service Packages, Usage Limitations, Value-Added Services,)
Price (Willingness-to-pay, Competitive Positioning, Social Classes, ) Promotion (Advertisement Campaigns, Customer Education, Mass Media, )
Place (Sales Channels : Websites, Agents, Call Centers, )
Operations Optimise Service Fulfillment : Customer Provisioning - Intake Self-Installation
Organise Service Assurance : Customer Churn Avoidance Satisfaction - Support
Network Economics From ADSL to all DSL flavours - Deeper Fiberisation (FTTN FTTH) WiMAX
Examples of Projects and Success Stories
Conclusion
1 Example of North African Operator
8/3/2019 Fast Forward VNPT Ho Chi Minh
47/59
All Rights Reserved Alcatel-Lucent 200747
p p
Start-up of Broadband (the marketing project)
Result : successful commercial launch of broadband
Package definition Number of packages, speed (up/down), volume cap, CPE, number of users
Market forecast
Target market size
Number of subscribers after 1 mth, 3 mths, 6 mths, 1 year, 2 years
Bringing service to market
Sales channels/partnerships
Passive/active sales strategy
Additional revenues When to start?
Internet security(anti-virus, anti-spam, parental control, personal firewall, etc.)
Games
Music
1 Example of North African Operator
8/3/2019 Fast Forward VNPT Ho Chi Minh
48/59
All Rights Reserved Alcatel-Lucent 200748
p p
Start-up of Broadband (some technical implications)
Service availability tool
Based on telephone number Which services (speed)?
Where available (internal, sales channels, web)?
Package features/characteristics
Contention ratios
Dynamic/fixed IP address Provisioning process
Transmission capacity/traffic engineering
Bandwidth distribution over (type of) subscribers
Congestion forecast system
Volume cap implementation
Protection of network and servers
Anti-virus/anti-spam
2 - Example of Mexico
8/3/2019 Fast Forward VNPT Ho Chi Minh
49/59
All Rights Reserved Alcatel-Lucent 200749
p
Accelerate the growth fase
Result : accelerating the growth fase
In 2006 : advice on continuing/upgrading broadband
Add >200 000 new subscribers every 6 months
Todays packages are OK (logical evolution: speed increase)
Add new services (music, games, children content, etc.)
More Revenues
Customer binding
Churn reduction/avoidance
How to accelerate?
E2006: 2M subscribers vs. 1.5-1.6M normal evolution
Introduce low entry packages
Lower speed, limited volume(Time based)
Rationale: upgrade these customers to standard packages
Beware for existing users downgrading
Recommendations were formulated after series of workshops
3 - Example of China
8/3/2019 Fast Forward VNPT Ho Chi Minh
50/59
All Rights Reserved Alcatel-Lucent 200750
p
How to improve revenue scheme in high speed internet?
Result : increasing revenue and customer base
Operator identified KPIs to be reached : Achieve total number of 3.5M subscribers (originally 2.7M)
Reduce the churn rate from 20% to 3%
Maintain/raise the existing ARPU level
Overall DSL customer satisfaction > 85%
All actions categorized into main areas:
IncreaseARPU
ReduceChurn
BoostSales
3- Example of China
8/3/2019 Fast Forward VNPT Ho Chi Minh
51/59
All Rights Reserved Alcatel-Lucent 200751
Diagnosis
Qualitative: Interviews with more than 5 people in 5 cities Helicopter interview with people who see big picture
Working level interviews with people in direct contact withcustomers
Quantitative: Assemble metrics for benchmarking
Help desk & customer support, provisioning, sales channels, churn,DSL sales & application sales
Portal market survey
Analysis
Pinpoint problem areas based on qualitative + quantitative results
Benchmark with international figures
Recommendations
pMethodology
3 Example of China
8/3/2019 Fast Forward VNPT Ho Chi Minh
52/59
All Rights Reserved Alcatel-Lucent 200752
Key Recommendations and ImpactIncrease ARPU Reduce churn Boost sales
Need to realign DSL business towards mass market approach
nReduce number of packages to five
n Introduce pay per use or volume limited package
nRealign package based on market segmentation
n Initiate lifestyle campaign, media coverage
nMore co-operation with PC vendors and manufacturers
Organizational issues
nSet up virtual cross-city teams lead by region
nAlign advertising across region
Churn related
nSet up customer satisfaction task forces
nBe proactive about customer retention
nSimplify VBC and expand to all cities
Major impact
Medium impact
No impact
4 - Example of Middle East :
8/3/2019 Fast Forward VNPT Ho Chi Minh
53/59
All Rights Reserved Alcatel-Lucent 200753
Result : savings on operational cost
Objectives
Increase customer satisfaction (80% to 90%)
Decrease activation time from 2 weeks to 5 days
Decrease customer churn after contractual period (20% annual basis)
Decrease operational costs
Methodology Process review
International best practices benchmark
Results
Revised back office installation process Revised sales incentive plan
Revised support strategy for increased customer satisfaction
Operational cost savings 92.5 million Euro (on yearly basis)
pOperational Excellence Project
8/3/2019 Fast Forward VNPT Ho Chi Minh
54/59
All Rights Reserved Alcatel-Lucent 200754
Outline
Introduction We created the Fast Forward Program for helping our customers optimise Broadband
Strategy and Marketing Strategy The Why and the How of Broadband
Growth Potential Customer Forecast - Business Case Competitive/Regulatory Situation
Marketing The Go-To-Market for Broadband
Product (Service Packages, Usage Limitations, Value-Added Services,)
Price (Willingness-to-pay, Competitive Positioning, Social Classes, ) Promotion (Advertisement Campaigns, Customer Education, Mass Media, )
Place (Sales Channels : Websites, Agents, Call Centers, )
Operations Optimise Service Fulfillment : Customer Provisioning - Intake Self-Installation
Organise Service Assurance : Customer Churn Avoidance Satisfaction - Support
Network Economics From ADSL to all DSL flavours - Deeper Fiberisation (FTTN FTTH) WiMAX
Examples of Projects and Success Stories
Conclusion
Typical project timeline
8/3/2019 Fast Forward VNPT Ho Chi Minh
55/59
All Rights Reserved Alcatel-Lucent 200756
for Go-To-Market for Mass Market High Speed Internet packages
ACTIONPLAN
Kickoff Diagnosis
Synthesis
Recommendations
Kickoff Action plan Final report
Define the scope of theproject (mandatory !)
Identify the critical
domains and issues
Define action plan forthe weeks after
Get commitment frommanagement for thataction plan
Agree on projectresponsibles andparticipants fromcustomer organisation
Separate/iterative workshopswith responsibles for infogathering/exchanging onstrategy and marketing
Roundup of existing material
Organising additional marketresearch if needed
Competition and Regulation
Benchmark with costing
Interpretation market material
Conductinggap analysis
Deliverable :Recommendations file(powerpoint) describingGo-to-Market for ADSL
Product Definition
Price Setting andsensitivity
Promotion Strategy
Place : sales channels
Deliverable presented inFinal recommendation
session for
management
Typical project timeline for
8/3/2019 Fast Forward VNPT Ho Chi Minh
56/59
All Rights Reserved Alcatel-Lucent 200757
Operational excellence for Mass Market High Speed Internet packages
Process review
KPI setting
Identify key people to interview Internally 3rd party organizations
Internal customer experiences
External customer experiences
Front office processes
Back office processes
Pre-installationactivities
SystemsProcesses
Deliverable :Recommendations file
describing OperationalExcellence :
Stepwise execution plan Impacted processes/
systems/KPIs Timeline Roadblocks & pitfalls
Deliverable presented inFinal recommendation
session formanagement
ACTIONPLAN
Kickoff Fulfillment
Assurance
Recommendations
Kickoff Action plan Final report
Typical project timeline for
8/3/2019 Fast Forward VNPT Ho Chi Minh
57/59
All Rights Reserved Alcatel-Lucent 200758
Triple Play Offerings (Business Analysis and Service Definition for IPTV)
Competitive landscape? Regulatory Situation? Content Acquisition? Market Demand?
Definition of TV Service
Bundling Opportunities
Service Roadmap
Promotion Plan
Business Dvlpmt Opport
Deliverable : Recommendations filedescribing IPTV Business Analysis
presented in Session for Management
Business Analysis
Service Definition
Recommendations
Kickoff Action plan Final report
ACTIONPLAN
Kickoff
Define the scope of theproject (mandatory !)
Identify the critical
domains and issues
Define action plan forthe weeks after
Get commitment frommanagement for thataction plan
Agree on projectresponsibles andparticipants fromcustomer organisation
Recommendations
Deliverable :Recommendations file
describing
IPTV Service Definition
presented in Session forManagement
8/3/2019 Fast Forward VNPT Ho Chi Minh
58/59
All Rights Reserved Alcatel-Lucent 200759
Conclusion
Fast Forward has >4 years of experience in broadband
Fast Forward optimises broadband in the
Strategy and Marketing domain
Operations domain
Network Economics domain
We want to help you by building the broadband futuretogether
8/3/2019 Fast Forward VNPT Ho Chi Minh
59/59
Thank you
www.alcatel-lucent.com
Top Related