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Examining how KPN has achieved flexible billing for their Prepaid Services. Mieke van Kalker, Product Responsible for Prepaid. Wednesday 26 th September 2004. Outline of presentation. KPN Mobile: Who are we? The Mobile Market in the Netherlands Replacement of the Prepaid platform - PowerPoint PPT Presentation
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Examining how KPN has achieved flexible billing for their Prepaid Services
Mieke van Kalker, Product Responsible for PrepaidWednesday 26th September 2004
3
Outline of presentation
• KPN Mobile: Who are we?
• The Mobile Market in the Netherlands
• Replacement of the Prepaid platform
• Keeping up with Marketing requirements
• Questions?
4
Who are we?
More than 45 million
voice minutes per
day
15.5 million
customers
KPN Mobile
Strategic partner
1.450.000 i-mode
customers
5735 employees
More than € 5 billion
revenue in 2003
Status 9 augustus 2004
5
The Netherlands
Market share 39.3%
Subscribers 5.41 mln
Penetration 85 %
KPN Mobile Division
5
Belgium
Market share 16%
Subscribers 1.44 mln
Penetration 79 %
Germany
Market share 12.9%
Subscribers 8.71 mln
Penetration 82 %Status 9 august 2004
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The Mobile market in the Netherlands One of the most competitive markets
5 network operators, 6 brands
A lot of (emerging) WholeSale / MVNO parties, e.g.
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Market share Prepaid customers
KPN
Vodafone22,8%
Telfort8,9%
T-Mobile12,8%
Orange13,9%
41,6% Ultimo August 2004Total prepaid base: 8,7 million
Ultimo December 2003Total prepaid base: 7,8 million
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Replacement of the Prepaid Platform
• Why replacement?
– The Market demand requires a great amount of flexibility in our ICT environment, both from a technical and functional point of view
– Existing platform is end –of -life
• Selection proces
– Telecom Suppliers
– Billing suppliers
– Convergence with postpaid billing
• Complexity
– More than 20 interfaces
– More than 3,5 million customers
– Many different services
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Replacement of the Prepaid Platform
• Project New Prepaid
– Goal is to replace the current PrePay infrastructure with the Alcatel OSP PrePay solution before the end of 2004
– Minimal service interruptions
– Seamless migration of current services and customer base
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ICT architecture
Bill Calculation
EBP
Real-time Call/
session control
PrePay
CDR / event -Mediation
ServiceMediatorContent
GPRS
SMSCMMSC
MSC(Voice)
Service Domain
Customer
CRM andMarketing
ProductManagement
Product
NetworkDomain
Bill payments
HLR
Rating
CustomerManagement
PostPay
Real-time Rating
Man
ag
emen
tR
epo
rtin
gF
inan
ceB
ank
s
Billing data,Account balance
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Migration
• Migration in Q4 2004
– Migration of vouchers
– Migration of subscribers
– Migration of data/ MMS amount
• Keep the services running at all time
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Marketing in a highly competitive market
• More than 10 brands, fighting for customers
• New ideas, giving away minutes/ SMS
• Price war on SMS
• Validity of Prepaid Balance
• New services, especially on Value added Services
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Speed of technical changes
• Market demands a quick reaction at all times
• Technical changes take time
• Challenge to align these two opposites
– Explain technical constraints
– Be closely involved with new ideas
– Suggests possibilities from technical point of view
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Loyalty pograms
• Prepaid customers are a challenge to keep
– They have no contract
– Change very quickly
– Price is important
– New Prepaid cards come with new mobile phones
• Possible solutions
– Reward high value customers
– Keep new services coming
– Always stay ahead of the competition
Prepaid in the Netherlands:a fascinating service
Any questions?
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