INDIA TELECOM ANALYST BRIEFING NEW DELHI 10 DECEMBER

Transcription

1 INDIA TELECOM ANALYST BRIEFING NEW DELHI 10 DECEMBER

2 SAFE HARBOUR THIS PRESENTATION MAY CONTAIN FORWARD LOOKING STATEMENTS. SUCH STATEMENTS ARE BASED ON OUR CURRENT EXPECTATIONS AND ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD NEGATIVELY AFFECT OUR BUSINESS. PLEASE READ OUR EARNINGS REPORTS AND OUR MOST RECENT ANNUAL REPORT FOR A BETTER UNDERSTANDING OF THESE RISKS AND UNCERTAINTIES.

3 MANAGED SERVICES & New business models/ SHARED NETWORKS VALTER D AVINO VICE PRESIDENT, HEAD OF MANAGED SERVICES

4 TRENDS DRIVING SERVICES Changing market and competitive situation for operators Operators efficiency, cost and network quality focus Technology shift and network complexity Network modernization and transformation Operators want more than an equipment vendor They want a business partner

5 The industry is growing Global telecom services market [USD b] Operator internal services spending ~ ~ ~ Professional services, excluding Managed Services Network roll-out services ~43-45 ~49-51 ~50-52 Managed Services ~9-11 ~11-13 ~13-15 ~19 ~21-23 ~20-22 Current addressable market CAGR : ~11% Segments Managed services Consulting Systems integration Education Support services Network rollout Source: Ericsson, and Ernst & Young Market Study

6 Ericsson - Managed Services Flexible functional scope Operate Strategy Design Plan Build Field operations Network operations Business support system Service Network Core network Trans. network Access network Ericsson responsibility Operator responsibility

7 Recent contracts - highlights New technologies: TDC Denmark: LTE TV4 Sweden: Broadcasting Telefonica Brasil: Wireline Endesa Spain: Enterprise CableTica CostaRica: Cable TV New geographies China Mobile New models MBNL UK: Network sharing TSIC: Multicountry delivery Mobilicity Canada: 3G Greenfielder 38 Managed Services contracts signed first 9 months 2010 of which 21 extensions/expansions

8 MTS, india The Customer Sistema Shyam TeleServices Ltd. (SSTL) - joint venture between Sistema of Russia and the Shyam Group of India. SSTL has been allocated spectrum in all the 22 circles in India MTS has more than 100 million subscribers all over the world Customer s drivers Cost efficiency and convenient price model Improved network operations What we provided Multi-vendor managed services for SSTL s CDMA/EVDO network Including network optimization, network operations and field maintenance Operator responsibility Ericsson responsibility

9 expanding business and Innovating offering Building on our leadership position Continued focus on mobile and fixed operators Capitalize on stronghold in Europe and establishment in North America; capture opportunities in fast growing markets Excel in managed operations and field services The trusted partner with global scale and proven HR processes Innovating and driving the market new business models Create flexible solutions to meet customer needs, including service layer/bss/oss Innovate offering to create customer value in key areas, e.g., network sharing Expand business into adjacent industries based on our leading capabilities, e.g, media broadcaster Outsourcing reshapes industries

10 SHARED NETWORKS

11 Industries with similar characteristics have industrialized Automotive Truck operators Utilities Airlines In order to secure scale, optimize cost/assets and focus on customer value-add

12 Moving the model with the market Network operation Telecom industry crisis Core business re-evaluation From technology to marketing OPEX Demand for flexibility Shared Capacity Maturing markets Competition increase Sub-scaled operators Technology shifts Regulations open up New business models OPEX & CAPEX From operational to structural efficiencies

13 drivers and market prerequisites are different Europe Highly competitive USA Highly competitive Tower industry established Free trade of spectrum Alternative backhaul providers present Capacity explosion (LTE) Brazil Highly competitive Mature outsourcing market (Field) Lack of capital to build rural coverage Africa Facing massive CAPEX investments for rural Tower industry not developed Mature outsourcing market Operator consolidation Capacity explosion (LTE) India Sub scaled operators Mature outsourcing market and tower industry Lack of capital to build rural coverage Limited number of licenses

14 top 10 challenges

15 Business model will differ from case to case and evolve over time Operator X Operator Y Operator Z Shared active/passive capacity Wholesale We are only on the beginning of this journey

16 Scale and skill advantage 40,000 in-house services professionals DNA from Operator - large part of our employees come from operators Managing networks with over 750 million subscribers Multi-vendor, multi-technology 50% of the nodes in managed networks are non-ericsson Supporting operators with over 2 billion subscribers

17