Broadband Industry

8/13/2019 Broadband Industry

1/40

roadband Industry


2/40

Political factors

Environmental factors

Social factors

Technological factors

Economic factors

Legal factors

Current Situation

(Macro-environmentAnalysis)


3/40

Political factors

Network NeutralityFair Use

Environmental factorsReduce or avoid energy use

Reduces the need for paper, saves

trees

Emits less greenhouse gasses


4/40

Social factors

Mobile networks can be deployed quicklyWidespread network availability

Access for more sophisticated internet

services

Technological factors

Provide people with fast, always-on

access to various Internet services


5/40

Economic factors

Expand economic opportunities and innovationIncrease trade and productivity

Reduce business cost

Create jobs and encourage foreign investments

Legal factors

Pubic Telecommunications Act

Cybercrime Prevention Act of 2012


6/40

Market (Definition, Size, Segmentation)

Industry Structure

Porters Five Forces of Analysis

Competition and Market ShareCompetitors Strengths and Weaknesses

Market Trends

Current Situation

(Market Analysis)


7/40

Market Definition

Broadband Internet service - the most used

form of Internet access, provides access to the

highest access quality Internet services.

Market size2010 Population reached 99,900,177

29.7% belongs to Internet users (29,700,000)


8/40

Market Segmentation Household

Business

Industry structure

Digital Subscriber Lines

- Asymmetric DSL

- Symmetric DSL

- High-bit-rate DSL

- Very high-bit-rate DSL

- Rate-Adaptive DSL

Cable Modems

- External

- Internal

- Interactive


9/40


10/40

Other Ways For Broadband Access

Fiber

Wireless

Satellite

Broadband over Power Line (BPL)


11/40

Porters Five Forces of Analysis


12/40


13/40

Pldt

Globe telecom

Smart communicationsDigitel(Sun)

Bayantel

Players

in the

BroadbandIndustry


14/40

Broadband Market: Market Engineering Measurements

Measurement Name Measurement Trend

Market Age Growth Increasing

Subscribers 1,722 thousand Increasing

Potential Subscribers 3,521 thousand Increasing

e!enues 1",""#$25 M Increasing

Potential e!enues 21,%#7$1" M Increasing

Subscribers co&'ound

annual growth rate 12$7( )ecreasing

Price Sensiti!it* +igh Increasing

o&'etitors -acti!e

&arket co&'etitors in More than 2 Increasing


15/40

MARKET TRENDS:

8.3% Household Penetration

High Price Sensitivity

15.5% in year 2015


16/40

MARKET TRENDS:

Consumer & Corporate Corporate broadband

subscription in 2009 is about 12

from 25% in 2004

Expected subscription in

2015 12% high


17/40

MARKET TRENDS:

Consumer & Corporate Corporate broadband

subscription in 2009 is about 12

from 25% in 2004

Expected subscription in

2015 12% high


18/40

Nature of Buying Decision

GeographicDemographic

Usage Patterns

Consumer Preference

Current Situation

(Consumer Analysis)


19/40

Nature of Buying Decision

Broadband speed

Product Offerings and Promos

Broadband Plan

Contact and Additional Fees

Broadband Customer Service


20/40

Geographic

Population nationwide

Population of 92.34M (Census of Population

and Housing)

Top three areas in the Philippines for

Internet usage:

- Metro Manila (40.33%)

- Davao (33%)

- Cebu (30%)


21/40


22/40

Demographic


23/40

Demographic


24/40

Usage Pattern


25/40

Product Offerings (lower prices)

Fast Service

Promotions

Retail Products

Consumer Preference


26/40

Company Resources

Company Profile:

Financial

PeopleProduct Offerings

Companys Objectives

Current Situation

(Internal Analysis)


27/40

Company ResourcesMarket Capitalization P 1%/$/0 illion As o *ear ended

)ece&ber 31, 2"11

Number of Employees 5,757 As o *ear ended

)ece&ber 31, 2"11

Number of Retailers,

Distributors, Suppliers, and

Business partners

7#2,""" As o *ear ended

)ece&ber 31, 2"11

Net perating Re!enues 71,50% M As o *ear ended

)ece&ber 31, 2"11

Fi i l (2011)


28/40

Financial (2011)

Column32010

2011

60000

62000

64000

66000

68000

70000

72000

64435.6 65766.3

71941.4

Net Sales, in Millions

Fi i l ( )


29/40

Financial (2011)

Column3

2010 2011

60000

62000

64000

66000

68000

70000

72000

63862.1 65548

71564

Net Operating Revenues, in Millions

Fi i l (2011)


30/40

Financial (2011)

Column3

2010 2011

0

2000

4000

6000

8000

10000

12000

14000

12568.9

9744.6

9831.8

Net Operating Expenses, in Millions

"rodu#t fferings


31/40

odu#t e gs

Tattoo$%ome

attoo 4iMA

attoo )S6

attoo orue

Tattoo Nomadi#attoo Su'erstick

attoo M*8i

Tattoo on t&e 'o

Pre'aid 9:sticks

%G Su'erStick Pre'aid ;it

lack Post'aid Plans

Personalier

?arl* hrist&as reat

Media Pad

Business

)irect Internet

)S6 Internet

)S6 Subscri'tion 9'grade


32/40

Companys Objective

Marketing Objectives

- To increase the market share by 10% for

the succeeding year for three years

- To maintain its rank among key players

in the broadband industry

- To increase the number of broadband

subscribers by 20% in the next three years


33/40

Financial Objectives

- To increase sales growth rate by 9% annually,

for three years

- To increase net operating revenues by 9%

annually, for three years

- To maintain net operating expenses within the

strategic plan for the next three years

Companys Objective


34/40

Summary of Situation

Analysis:SWOT Analysis

Strengths

Strong brand Image

The number of broadband

subscriptions within total

Internet connections is high

Customer Support and

Service

Wide variety of products and

Weaknesses

Connectivity issues

Promotion inconsistencies

Expensive prices of offers

Low broadband Internet

penetration in public

administration bodies and

local governments outside


35/40

Opportunities

Partnership with American

Express

Dropping prices of personal

computers and laptops

Increasing residential and

corporate Internet penetration

Broadband used as alternative

tool in communication

Threats

Intense competitions

Economic crisis

Substitute products

Government regulations

Summary of Situation

Analysis:SWOT Analysis


36/40

Marketing Strategy

Solution:

- Product Development and Innovation

Information

- Advertising and Public Relations

Access

Value


37/40

FINANCIAL FORECAST

2012 2013 2014 20150

0000

0000

60000

80000

00000

0000

78416.1

85473.5

93166.1

101551

Net Sales


38/40

2012 2013 2014 2015

0

20000

40000

60000

80000

100000

120000

78004.76

85025.19

92677.46

101018.43

Net Operating Revenues


39/40

2012 2013 2014 20150

500000

1000000

1500000

2000000

2500000

3000000

1693200

2031840

2438208

2925849

Broadband Subscribers


40/40

NEW PRODUCT AND SERVICES OFFERINGS

SIGNIFICANT DISCREPANCY IN THE

FINANCIAL PROJECTIONS

GOVERNMENT IMPLEMENTATION

TECHNOLOGICAL ADVANCEMENTS

FAILURE TO PROVIDE INTERNET

CONNECTION DUE TO INCLEMENT WEATHE

CONTINGENCIES

Documents

Broadband Industry