Getting Personal How Suddenlink Quickly Rolled Out Personalized Services

Transcription

1 Getting Personal How Suddenlink Quickly Rolled Out Personalized Services Robert Putnam SVP & CIO Suddenlink Rick Mallon VP Marketing & Alliances, Sigma Systems TM Forum World Nice, France

2 Corporate Profile as of March 31, 2014 Residential: 1,415,000 residential customer relationships Total 3,706,100 total RGUs / 2,818,100 PSUs: 1,187,500 basic video 888,000 digital video 1,103,100 residential Internet Commercial: Summary 527,500 residential telephone 85,200 commercial customer relationships 38,700 bundled commercial customers 1 2 Financial LTM pro forma revenue of $2.23 billion LTM pro forma Adjusted EBITDA of $865 million March 31, 2014 as reported Senior Leverage 2.74x Total Leverage, Net 5.27x Strong liquidity position with undrawn $500 million Revolver Industry leading growth over last 3 years: 3 Year CAGR as of 3/31/14 Revenue 6.2% EBITDA before 1x 8.1% RGU 3.4% PSU 2.4% 3 Note > Please see page 5 for appropriate footnotes 7th largest U.S. cable television operator 2

3 Clustered Markets with Favorable Competitive Dynamics Telco Footprint Overlap (%HP) AT&T 62% Verizon 3% Centurylink 16% All Others 5% Frontier 14% Limited Broadband Overbuild (%HP) Verizon FiOS 0.0% AT&T U-Verse 4.9% All Others 3.1% Broadband Overbuild 8.0% O H M O W V C A O K A R N C A Z T X L A Franchise Area Top 10 States, serving approximately 96% of customer relationships Note > All figures are as of March 31,

4 Suddenlink National Backbone Centralized platforms Redundant and diverse network Efficient technology deployment Leverages five peering locations 97% of customers connected to the backbone 4

5 Program Objectives Penetrate the SMB market with robust and competitive products: Hosted Commercial Voice feature-rich business lines, terminating at analog or SIP customer premise devices. Business Trunking - features personalized services including unified communications and Session Initiation Protocol (SIP) trunking Easily and rapidly fulfill complex personalized business offers Drive down order fallout, resulting in installation delays for business services particularly new unified communication and SIP trunking offers Replace existing manual processes that don t scale to a fully automated fulfilment system capable of activating large enterprises Create a scalable solution for future enhancements of business services, such as SIP Voice over IP 5

6 Enhanced Business Class Service SIP SIP-based services have two major categories: SIP Trunks and SIP Lines SIP Trunks Provide a direct IP connection between a customer s internal communications systems and the Public Switched Telephone Network. All calling features and other end user needs are fulfilled by the customer s systems. SIP Lines Provide a direct IP connection to an end user s device, allowing for greater calling feature capabilities such as transferring calls between fixed and mobile devices, video conferencing and integration with office applications. Simple and on-demand management of calling features is provided via a web-based administration portal. 6

7 Overcoming operational and business challenges Challenges Lack of features and product sets desirable to customers in the targeted segment System limitations with capturing and managing large line orders Rigid and outdated 3 rd party CLEC ordering interfaces Costly and error prone manual processes hampering growth of segment Solution 7 Innovative system architecture using TMF OSS/J APIs & Frameworx principles Avoid costly investment in ordering system and 3 rd party CLEC processing Addition of 15+ of the most desired Business Class features, enabling competitive packaging and bundling of services Fully automated order management, device provisioning and fulfilment Joint design and development approach for agile delivery

8 Quantified Benefits Higher revenue and margin on large enterprise service packages Operational improvements, including elevated data integrity, with measured reduction in cycle times Decreased customer churn Improvement in time to market Improved service agility 8

9 Three Types of Benefits Buckets of Benefits ROI = Operational Revenue IT Cost Savings Enhancements Savings Total Cost of Ownership 9

10 Existing business process flows Provisioning Admin Expeditor Internal User Sales Agent Reviews Entry Approval Validation Fulfill Happy Current/Future Billing Platform Current/Future Provisioning Platform IT Staff IT Staff Prospect Success Agent Un-Happy Churned

11 Fulfillment Benefit Areas (Operational Savings) Provisioning Admin Reduced Mgmnt. Costs Reduced Service Fulfill mt Costs Expeditor Internal User Sales Agent Reviews Entry Approval $136K Validation Fulfill $44K Happy Current/Future Billing Platform Current/Future Provisioning Platform Prospect Savings Retention/ Rework Costs IT Staff $54K Success Agent IT Staff Total Yearly Savings of $234K Un-Happy Cha rt - 11 Churned

12 Fulfillment Benefit Areas (Revenue Improvements) Provisioning Admin Expeditor Internal User Sales Agent Reviews Entry Approval Current/Future Billing Platform Validation Total Yearly Revenues of $855K Current/Future Provisioning Platform Fulfill $639K Revenue Faster Happy Time to Market IT Staff IT Staff Cha rt - 12 Prospect Success Agent $216K Churned Revenue Churn Reduction Un-Happy

13 Fulfillment Benefit Areas (IT Cost Savings) Provisioning Admin Sales Agent Entry Reviews Approval Validation Fulfill Expeditor Total Cost Savings of $408K Internal User Revenue Faster Happy Time to Market Current/Future Reduced Billing Platform Transformation Costs Current/Future Provisioning Reduced Platform Legacy System Costs Prospect IT Staff $250K in 2013 $158K Success Agent IT Staff Un-Happy Cha rt - 13 Churned

14 Summary of ROI Results The results for the expected business case shows Return on Investment of 76% Payback period of 1.33 years Positive Net Present Value of $1,716,000 over five years The sensitivity analysis (e.g., worse case scenario) shows Return on Investment of 56% Payback period of 2.1 years Positive Net Present Value of $1,258,000 over five years The model highlights business improvements from Operational cost savings Revenue enhancements IT cost savings 14

15 The Good, The Bad and The Ugly Program successes include: Rapid development and testing cycles due to co-development approach. Colocation of testing & development resources ensured quick defect identification, logging, correction and certification. Smooth implementation across footprint. Base-lined systems and approach to efficiently provide next generation complex offerings for Commercial subscribers. Program challenges: Platform upgrade for Residential products conducted in parallel to the development and deployment of Commercial products resulted in divided focus of the project team and impacted resource allocations. Coordinating development activity across multiple teams and organizations. 15

16 CAO 2014 March YTD Summary Commercial units were strong with 11% Data growth & 31% phone growth Q Q Actual YoY Growth Counts: Data 59, % Phone 33, % Phone Lines 94, % Quarterly Net Gain: Data 1,683 Phone 1,806 Phone Lines 4,964 16

17 Growing Commercial Internet s Annual Commercial Internet Trends 9.3% Commercial Internet CAGR Quarterly Commercial Internet Trends 10.1% Commercial Internet CAGR Note > Please see page 28 for appropriate footnotes 17

18 Growing Commercial Telephone s Annual Commercial Telephone Trends 58.5% Commercial Telephone CAGR Quarterly Commercial Telephone Trends 32.1% Commercial Telephone CAGR Note > Annual CAGRs calculated ; Quarterly CAGRs calculated Q2 11-Q

19 Commercial Key Initiatives Drive Voice & Wideband Voice growth, particularly in a data phone bundle remains strong About 33% of business customers take data/phone bundle, up from 19% in 2012 Year over year Telephone line growth of 29% Data/Phone Bundle % Telephone Line Growth 94,870 73,777 55,840 Mar 12 Mar 13 Mar 14 19

20 Commercial Product Development 20