Fibre rollout project examples Lyse and Altibox partners

Transcription

1 Fibre rollout project examples Lyse and Altibox partners Eirik Gundegjerde CEO Lyse Tele AS

2 Content Lyse, moving towards multiservice approach The Market Choosing infrastructure Sales strategy Network Buildout Geographical coverage Developing services Key figures Conclusions

3 The Market & infrastructure

4 Lyses strategic position Providing broadband services to regional customers Going for a lasting position in this emerging market, and offering high quality competitive services The infrastructure evaluation The fiber choice Economical consequences År 1 År 3 År 5 År 7 År 9 Serie1 What about the services? No single service could give us sufficient ARPU to finance this infrastructure We decided on FttH and a full set of 3P services

5 The competition before and after FttH Coax: Get, Telenor Satelite: Viasat, Telenor xdsl: Telenor and others DTT: Riks-TV Mobile (HSPA ++): Telenor, Netcom, ICE, NwN The customer choice: several infrastructures and several services Key Question: How to introduce a new infrastructure and compete with the excisting vendors?

6 Sales strategy

7 Sell, then build Targeting residential areas in Stavanger region Customers already signed up on ISDN, DSL and cable- TV/satellite-TV from other vendors. How to reach the penetration goals? Detached houses, slightly above medium income. 42% signed up for triple play during our 4 week test sales. Our sales pitch was one-stopshopping Future proofing the home.

8 Cover the households needs From a marketing point of view, we address the household with our bundle. Next generation infrastructure Highspeed internet Magic TV Lots of convenience And some discounted services like fixed line telephony Next to 100% hitrate if there are teenagers in the household

9 Our offering IPTV SD and HD, channels VoD, +400 films, major studios PoD, local news etc PVR Games, webcams etc. Internet access 10 to 100Mbps symmetrical VoIP 2 fixed lines (alarm/fax compatible) Multiple phone services Free calls in the Nordic countries One contract, vendor, invoice, call center.

10 The process. Analyse area Sell Build Deploy services 80% are doing their homework

11 The Network Buildout

12 The buildout SME Access Network Metro Network Core Network Residential POI Multitennant Services 10 GB ethernet 10/100Mb ethernet Gigabit ethernet Fiber Multiple Gbps

13 Regional Metro & access network Ethernet all the way Capasity, latency, jitter Applications Fully symetrical services Standard 100/100 Mbps Easily upgradeble Network Neutrality

14 Geographical Coverage

15 Regional National - International Our operation are very regional, with 80k subscribers at maximum in the Stavanger area The services can scale to a mill subscribers without any problem We decided to use a franchise model, and have franchisees sell and build in all other regions than our home market. Several utility companies, municipalities and private companies has signed up with the same model Today we have 33 franchisees that build in 186 counties in Norway, and 1 that builds in 9 counties in Denmark. Total customer potential Lyse and Partners is over 1 mill subscribers

16 The Core structure 10Gbps ring in South-Norway 2,5Gbps ring in Mid-Norway 2,5Gbps ring Stockholm & Copenhagen 1Gbps ring in Northern Norway Metro network POI Core Main links Core

17 Building FttH based on Altibox in red areas Altibox Franchisees

18 Developing Services

19 Whats this about? Fiber to the people Minimum capex and aquisition cost Maximum uptake and service penetration Volume and reduced opex Long term investment How to deal with competition? Service innovation you simply have to be best!

20 From Triple to Multiplay.. TVservices Telephoneservices Internetservices Mobileservices Alarmservices AMRservices Gamingservices Sensorservices IP New Services Competition Convergence

21 Services the big picture Regional services Converged services Multi-play services Intra services

22 TV-services (farmor) ringer Avvis Talepost

23 Altibox subscribers can choose Basispakke 1: Viasat Gull Basispakke 2: Altibox Her ønsker jeg å Oppdatere med Flervalgspakken vår

24 Regional Services Examples from this region

25 Popular services on your cellular Manage your PVR through your cell phone

26 Security & surveilance

27 Figures

28 Customer focus and sales methodology Before selling Segmentation & field studies before opening a new market The right customers The right area due to cost Average CAPEX is Euro, mostly civil works Average sales cost is 150 Euro Totalt investments 200 mill Euro Average penetration 60% Among these we contract: 100% Internet (mandatory) 80% IPTV 80% Telephone

29 The main benefits of multi-play: Market penetration where offered; 60% Churn: <1% Average monthly ARPU pre VAT: 90 Euro and increasing subscribers at present Delivering new subscribers per week Set-Top-Boxes Bandwidth consumption: next to 100 Mbps per Highusage family

30 Conclusions

31 Package as a benefit When doing initial market research and concept, we tested several levels of bundling In our market, a majority would prefer single supplier of a bundled package of installation, services and billing We concealed the fact that this service bundle was Internet, IPTV, and IP-telephony Spesialized on providing regional content We still focus on the content and user experience, and the fact that fiber is a high capacity longterm solution Service innovation

32 Economics Sustainable economics: Number of choosable services are high Product penetration (100/80/80) high ARPU Area penetration > 60% Same services, technology and topology all over means lower OPEX Time-to-market for services År 1 År 3 År 5 År 7 År 9 Serie1 IP facilitates new service bundles and convergence Bandwidth & symmetrics Competes easily with incumbants and others

33 Future Goals The Challenger to the Incumbent End k subscribers 50 Franchisees Threaths 60,00 % 50,00 % 40,00 % 30,00 % 20,00 % 10,00 % 2q05 2q06 2q07 Content owners puts exclusive rights to popular content 0,00 % Telenor NGT Get Tele2 Ventelo Altibox TM BKK Eidsiva Andre Regulation models that will decrease customer uptake and economics in the first fase

34 The key question How to ensure that fiber infrastructure are beeing built? Commercial models Competition between several infrastructurs providing same services Several service vendors competes on the FttH infrastructure as well Our experience from open networks A rich uncle Low penetration of services In the future: Internet pipe will serve most services

35 The customer choice Why did they sign up, and what makes them stay and pay? Competitive New services - innovation Single point of contact Fiber and future proof technology

36 Thank you for your attention!