Vodafone OneNet - Leaders in Marketing OneNet presentation_Colin Shea.pdf · •Oskar Mobile was formed in 1999 and secured a 3d GSM license to ... as a new and nimble challenger,

Vodafone OneNet

OneNet – fix, mobile, internet in one net

Draft

Vodafone Czech Republic

A bit of history

• Oskar Mobile was formed in 1999 and secured a 3d GSM license to operate

in the Czech Republic

• The shareholder (TIW) owned another small eastern European operator

called Connex

• Vodafone PLC bought both operations in 2005

• Vodafone Czech Republic is today a strong third operator with circa 25%

market share and a credible competitor in all segments

• Czech Republic fun fact: heaviest beer consumption in the world at 132L per

capita per annum!

Slide master 2 22/10/2012

Draft


Back in the mists of time…

• In 2007 Vodafone decided to mount

a challenge to the incumbent in the

enterprise sector

• Telefonica was the incumbent, with all

the advantages that implies

• But they were complacent … and

times were changing

• But we knew we had to think

differently

• Playing by their rules meant we could

only lose!


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

SOHO SME Corporate/ state sector

Vodafone

Telefonica O2

Total Telco Market Shares, Jan 2008

The challenge: come up with a strategy that would take

advantage of our status as a new and nimble challenger, our

unique brand attributes, but at the same time deliver enterprise

grade reliability!

Draft


Never bring a knife to a gunfight…


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

SOHO SME Corporate

Fixed

Mobility

Share of spend by segment

• We needed to be in fixed

• We were starting to gain traction

in SOHO where mobile was

predominant

• One reason we were failing in

SME and corporate was that

fixed was far bigger part of their

budgets and mission critical

• Over half of large customers with

multiple telco products only had

one provider – 90% had either 1

or 2, the second often being a

connectivity backup provider. We

were shut out of this segment

But how to become a universal telco provider in a cost effective

way without the assets of an incumbent?

Draft


…and talking to clients


“I have 6 connectivity providers at

10 locations. 2 are totally unreliable.

It’s an expensive headache.” “I have 80 SIMs and I am constantly

on the phone with my provider

changing conditions as people come

and go, change their travel profile,

or whatever. It’s a time consuming,

inefficient mess.”

“I have to chase my employees not

to talk on the mobile but use the

fixed line.”

“We have a 15 year old PBX and I

spend incredible money on service

and maintenance.”

“We would love to move from

Telefonica but no one else can offer

the fixed services they can.”

“I can’t get a VPN between my fixed

and mobile networks.”

Draft


The answer: Vodafone OneNet


Managed service: we have relations with dozens of ISPs and construct

the best solution for each individual client. Flexible SLAs allow proper cost/

benefit calculation … redundancy through different providers

Modern technology: fully convergent IP-based fixed/ mobile solution. IMS

infrastructure delivered over proprietary IP/ MPLS network

Cost control and flexibility: no more individual tariff plans. Small license

fee per user covers mobile, fixed and company-wide VPN. Traffic bought

on bulk basis (ie 100.000 minutes/ month) which can be used by all

employees

No more legacy hardware: PBX hosted in the cloud; all advanced PBX

functionalities managed virtually

Personal care: individual care reps assigned from the smallest SME

customers.

Draft


Vodafone OneNet proposition


£££ £££ ££

MOBILE PROVIDER

FIXED LINE PROVIDER

INTERNET PROVIDER

£££

SINGLE PROVIDER

BEFORE VODAFONE ONE NET WITH VODAFONE ONE NET

PHONE SYSTEM

OFFICE OFFICE

PHONE SYSTEM

• PBX in the cloud

• Integrated fixed & mobile telephony

• Fixed & Mobile broadband bundle

• Single service & support

• Single Contract & Bill

• OPEX model with easily 20% TCO saving

Draft


Octobe

r 22,

2012

Company Confidential

0-9

9-49

50-249

Phase 2

Large &

Medium SME

Company size

Small SME

SoHo

Corporate

Phase 3 – OneNet Express

Sele

ctive a

ppro

ach f

or

diffe

rent

segm

ents

250+

Targeting more than 50% employees in the market through less than 5% of companies

Launch Phase 3

Phase 1 Initial Launch –minimise cannibalisation of existing

customer base, focus on basic service & “practice”

Phase 2

Higher customisation &

quality requirements

Vodafone OneNet segment focused launch

Draft


Vodafone OneNet take to market

• Focus on building awareness and perception of being Total Telco provider

• Massive expansion of direct and indirect sales force

• Get key reference clients in selected regions and industry verticals –

continuous involvement of executive team

• OneNet experience center


2008 2009 2010

Draft


Gaining credibility has been a tough road…

Slide master 22/10/2012

Consideration and awareness

among non-customers

Draft


Vodafone OneNet figures development


0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

50000

100000

150000

200000

250000

300000

Q1 07/08 Q1 08/09 Q1 09/10 Q1 11/12 Q1 12/13

OneNet Connections

% of enterprise revenue

Development of connections and

revenues, 2008 - 2012

• After a slow start in the first

year, growth has been

extraordinary

• Long sales cycle in this segment

delayed uptake

• Took time to establish credibility

and gain reference customers

• However the product now

accounts for 20% of revenue and

well over half of sales intake

OneNet has driven our Enterprise Growth strategy

Draft


Vodafone OneNet volumes in Europe


Current seats

Germany 59,675

Italy 553,200

Spain 1,157,000

UK 99,991

Portugal 20,024

Czech 292,287

Ireland 489

The proposition has been rolled out in much of Europe – over 2

million connections provisioned

Draft


The principle of OneNet is continuously expanded


Microsoft Online Services: the same needs for cost control and flexibility

in telecommunication apply to desktop software. We have launched

several Microsoft products on a SaaS basis in the OneNet base

Telemetry: services such as fleet management, car control, security

cameras etc are continuously added to the portfolio

New connectivity technologies: in areas where we are successful, we

build own infrastructure opportunistically and migrate from third parties

Advertising, marketing and commerce: we sell mobile marketing

solutions, web design, and internet advertising packages on a contracted

service basis. We are also active creating a merchant escosystem for a

mobile payments JV active in CZ

Becoming a trusted partner in service provision has allowed us

to expand and deepen our relationship across multiple

categories

Draft


Lessons learned

Decision made in beginning

• Launch of solution on

separate billing and

provisioning platform

• Focus on advanced services

and skipping some basic ones

• Brand new proposition

structure

• Single provider for all services

From today‘s perspective

• Integration info one BSS to

keep sustainable development

• Closing product gaps,

readiness for big tenders

• Followed by both other OpCos

and competitors

• Broadening scope of provided

services and moving into ICT

and managed services world


Documents

Vodafone OneNet - Leaders in Marketing OneNet presentation_Colin Shea.pdf · •Oskar Mobile was formed in 1999 and secured a 3d GSM license to ... as a new and nimble challenger,