How is broadband reshaping our marketing?

Per Fredriksson Principal

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Mckinsey iconsumer: digital products in the forefront

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Consumer led marketing increasing through connectivity

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As markets mature, consumers consult a wider number of sources

Sources of information consulted when looking to buy a mobile phoneMature

Word of mouth

Point of sale

Marketing / ads

Emerging Tier 1 Emerging Tier 2

Source: TNS

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Beyond flat rate powered by the network

THE E2E IP NETWORK COST EFFECTIVELY ENABLES NEW BUSINESS MODELS

Penetration

Price

SingleFlat rate

Offer

Lost revenue opportunity

OTT are winners

Best-effort broadband

Multiple targeted services with QoS and policy control

Operators are winners

Price

Penetration

Service-based broadband

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Mass market pricing moving towards differentiation

Dis

po

sab

le In

com

e

Population Penetration

Pos

tpai

d

Pre

paid

Price per Gbyte

• Postpaid offering based in time and QoS over a fixed period

• Postpaid offering based on occasional usage

• Prepaid offering based on time and QoS over a fixed period

• Prepaid offering based on occasional usage

• Specific access on occasional basis

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Service Differentiation

How to differentiate

Maximum bandwidthper application

Per User admission priority

Content Caching

Guaranteed Bit Rate per Application

Content Optimization

Minimum Bit Rate per User

Maximum bandwidthper user

Per Service admission priority

When to differentiate

Time of day

Location

Service / Application

…

Subscriber profileupdated

Fair usage

Device type

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$20 month(5 GB)

DifferentiationFrom one to many offerings

$/KBVoice &

data bundle

$30month

high speed

$0.5 for 2 hours

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Communicate with the End user: simplify & direct/relevant

Show consumption

Buy Speed

Buy Volume

Applications

Portals

Redirectinformation

SMS and

USSD

Widgets and

Gadgets

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Operator’s User Dashboard - AS DEMOED in MWC

ALSO:

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Operator’s User Dashboard - AS DEMOED in MWC

Topup with

voucher

Realtime

wallet

Time left

Turbo button

Choose between

many services

App notifications

Or normal

browsing

Choose

times/quotas

QoS per

service

ALSO:OTT sponsored data (e.g. bank)

Mobile advertising

Redirect in browser

Userself-care

Dynamicpricing

Also laptop, feature phone

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telecom IS trailing IN CUSTOMER SATISFACTION

100

95

90

85

80

75

65

60

AirlinesFixed tel. service

73

0

66

Utilities

70

75

65

5

Hotels Cable TV

77

Internet search engines

80

Automot.

83

71

Banks

76

Mobile phone service

Note: maximum rating is 100Source: ACSI 2011

Indexed customer satisfaction

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Using the in-hand on-line channel in a smart way

› Smart pipe/networks create a great opportunity to differentiate offerings

› Micro segmentation

› Campaigns

› Up-sell

› Risk of user confusion

› Developing a user-interface/application will guide the consumer

› Direct – when the need arises