Reaching the Next Billion with Prepaid Telco Programs. Innovative Sales Model Accelerates Growth in New Markets

Transcription

1 Reaching the Next Billion with Prepaid Telco Programs Innovative Sales Model Accelerates Growth in New Markets 1

2 Intel s Vision This decade we will create and extend computing technology to connect and enrich the lives of every person on Earth. Paul S. Otellini, CEO and President, Intel Corporation 2

3 Reaching the Next Billion Over 2 billion people have Internet access 1 Over 2 billion people have purchased PCs 2 Intel World Ahead Program goal provide broadband service and PCs to the next billion technology users. 1 ITU-D Measuring the Information Society, Intel research 3

4 Broadband Matters Economic growth: Increasing broadband penetration boosts economic growth 1% or more. 1 Jobs: In Latin America, increasing broadband penetration 5.5% to 7.7% would generate an estimated 378,000 new jobs. 2 Healthcare: Telemedicine improves access to care, reduces travel, and facilitates diagnosis and treatment. 3 Education: Household Internet access is associated with better educational performance. 4 Small and Medium Businesses: Studies show that broadband promotes small and medium enterprises See, for instance, Qiang, Christine Z., Telecommunications and Economic Growth. Unpublished paper. World Bank, Washington. D.C., and Booz & Company, 2009, Digital Highways: The Role of Government In 21st Century Infrastructure. 2 Dr. Raul L. Katz. Estimating broadband demand and its economic impact in Latin America, Sept. 4, World Bank, Information and Communication for Development: Extending reach and increasing impact, ITU, Measuring the Information Society,

5 Market Challenges Two key issues hinder the pace of growth: Desirability: Citizens may not recognize the value of broadband service and PCs. Affordability: The initial cost of investment is sometimes too high, especially for first-time buyers. 5

6 Desirability Broadband and PCs are desirable. Broadband and PCs offer value beyond that of mobile phones. Fast Internet access and the ability to create and store content appeals to students, small businesses, and other citizens. Preloaded digital content in local languages increases value. 6

7 Affordability Broadband and PCs are affordable. Good-better-best purchase options appeal to first-time buyers. Prepaid/subscription payment models lower the cost of entry. Innovative financing schemes can reduce initial cash outlay. 7

8 Market Opportunity Prepaid/subscription packages lower TCO up to 50%. Lowered package costs dramatically increase the number of people that can afford to buy Proof Vietnam pop. that could afford increased from 15% to 70% 1 Sri Lanka subscription growth went from 20% to 100% 1 Intel research 8

9 Solution: New Sales Model Intel and partners have developed an innovative sales model to reach the next billion technology users. Based on the prepaid miracle for mobile phones, packages are sold at local PC/telco retail outlets at a lower TCO. Packages include: Broadband: Prepaid or subscription broadband service (data-capped) PCs: Intel-based PCs (netbooks, notebooks, desktops) Digital Content: Preloaded software in local languages 9

10 Benefits: Affordability Broadband Variety of price points for different amounts of data Prepaid or subscription payment options PCs Available at new, entry-level price points Good-better-best options Choice of features, performance, and form factors Digital Content Preloaded software in local languages 10

11 Benefits: Desirability Available digital content includes: Education British Council Learning Series: Language courses help users learn English 1 Khan Academy: Thousands of tutorial videos explore math and science solutions 1 Intel skoool content: Award-winning online learning content helps students and teachers 1 In partnership with Intel 11

12 Benefits: Desirability Available digital content includes: Education Digital Literacy Intel Easy Steps: Popular digital literacy program includes free software, online support, and in-person training seminars Intel PC Basics: Introductory software helps new users learn to use a PC and surf the Internet 12

13 Benefits: Desirability Available digital content includes: Education Digital Literacy Entertainment Intel AppUp SM center: An online source with thousands of applications, many of them free, including games, finance, and travel 13

14 Worldwide Movement BB acceleration program PC+BB subsidy for schools, students, seniors BB + PC for schools Rural connectivity + telecenter Nationwide wireless data buildout STIMULUS PACKAGE TAXES/VAT/ XG LICENSEE USF Rural connectivity + telecenter Nationwide wireless buildout + BB subsidy VAT reduction For BB services BB + PC for schools Rural PC + BB subsidy 1:1 education Nationwide wireless data buildout Infrastructure Subsidy PC + BB Reduce BB taxes ICT programs 14

15 Telco Opportunities Reach new users and accelerate growth in new markets Examples: Increase subscriptions and revenue Team with Intel on a program with proven results Egypt: Telcos achieved 286% sales growth over two years. Sri Lanka: Number of subscribers nearly doubled from 2010 to Indonesia: Over 280,000 packages sold in first six months. 15

16 PC Manufacturer Opportunities Better business relationships Increased visibility Stronger brand association Improved perception of PC value More sales to new buyers Examples: Indonesia: Over 280,000 PC and broadband packages sold in first six months. Kenya: 101% growth in PC ownership in 2010 compared to just 3% in rest of Africa. 1 Vietnam: Helped Lenovo increase monthly sales of netbooks by 78%. 1 IDC research 16

17 Government Opportunities Greater technology access for citizens Economic development Improved social services Better business relationships Examples: Indonesia: More than 280,000 broadband and PC packages sold in first six months Kenya: 101% growth in PC ownership in 2010 compared to just 3% in rest of Africa 1 Vietnam: Helped Lenovo increase monthly sales of netbooks by 78% 1 IDC research 17

18 Intel Assistance Strategic planning based on best-known methods Intel technology expertise and products Valuable software applications Sales and marketing support Team with Intel on a program with proven results. 18

19 Summary New sales program reaching the next billion technology buyers Technology packages with increased affordability and desirability for first-time buyers Packages include: Broadband service PCs preloaded with valuable digital content Results: Millions of new users enjoying technology benefits for the first time 19

20 Get Started! Let Intel help you develop a program for your country. Contact your local Intel representative, or select Contact Us at intel.com/worldahead 20

21