3G info sharing paper-Scribd.pptx

7/30/2019 3G info sharing paper-Scribd.pptx

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3G

INFO SHARING PAPERSTRATEGY WORKSHOP 2012


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Strictly confidential 2

PENETRATION TREND

An upside of 31% from end Y2011, reaching 105.3% penetration rate in Year 2017 (aided by 3G

broadband growth from Y2013).


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EVOLUTION OF THE 3G MOBILE MARKET.

FUTURE:1. 3G via mobile internet (phones) can be the future because people accessing the internet using phones

is expected to grow at faster pace vs to using a desktop/laptop.

2. However 2 key criteria must be in place: Impressive Mobile Handsets

Speed

3. Although mobility gives mobile internet a distinct advantage, speed still matters to some extent.4. the speed of 3G is still relatively slow vs fixed broadband. Unless this speed increases, takeup rate of

mobile internet service might be affected fibre limitation.

5. Even if take-up occurred, the time spent on accessing the internet will not be as long compared to fixedbroadband.

6. Having said that, speed is only important depending on the types of usages. Example, speed might beless important if just checking emails & social networking vs downloading movies or music. In these cases

time spent on mobile will be less.


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IS SPEED IMPORTANT? (DEPENDS ON WHAT YOU WANT TO DO)

256kbps 2Mbps 10Mbps 100Mbps

Google home page

(160 KB)00:00:05 00:00:01 00:00:00* 00:00:00*

Music track (5MB) 00:02:36 00:00:20 00:00:04 00:00:00*

Video clip (20MB)00:10:25 00:01:20 00:00:16 00:00:02

CD / low quality

movie (700MB)

06:04:35 00:46:40 00:09:20 00:00:56

DVD / high quality

movie (4GB)34:43:20 04:26:40 00:53:20 00:05:20

There is a growing demand for higher-speed connections due to the

rapidly changing demand and usage pattern of internet users i.e. normal

web surfing or downloading content and applications on the Internet?

For example, at the minimum broadband speed of 256 kbps, downloadinga high-quality movie takes almost 1 days - compared to 5 minutes at a

connection speed of 100 Mbps

Source International Telecommunication Union


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MOBILE PHONE USAGE (source: Morgan Stanley Research - US Market)

In the future, mobile phone usage will be about Data, Not Voice.

Average 2G Phone = 70% Voice

Smartphones = 45% Voice

SMARTPHONE USAGE ~ 60 MINS/DAYFEATURE PHONE USAGE ~ 40 MINS/DAY

Although total usage tends to increase with 3G and smartphones, what is the best way

to MONETISE the increase given the fact that voice revenues might fall. Will broadband

prices be high enough to compensate (if pricing is not volume based)?



COMPETITIVE LANDSCAPE

3G

1. Mobility

2. Coverage

3. Speed

OutsidePremises

Smartphone/

Tablets

Short durationbut many times

a day

WIMAX/FixedBroadband

1. Speed

Inside

Premises(normally)

Smartphones/Tablets/Laptops/Desktops

Long duration-once or twice a

day

VS



WHO ARE OUR CUSTOMERS?

Five categories of product adopters.

Out of the current subs base what is the distribution % for each stage and by what year will

it be achieved? To split by governorates. How about churners from other telcos?

Categories Est Buy-in Time (tbc) Est % of subs base

1 Innovators 0-12 months +2.5%

2 Early adopters 13-24 months +13.5%

3 Early majority (Pragmatists) 25-36 months +34%

4 Late majority 37-48 months +34%

5 Laggards after 48 months +16%



USER PROFILE (source: Novarra Research)

User Type User Profile Preferred phones,features, uses

1 Business pro Professionals who depend on their mobile devices to make

them more productive and handle all their communications

needs. They are heavy users and the most-device-dependentpopulation.

Highly capable smartphones for e-

mail, Web browsing and access to

company systems.

2 Multitasking parent Parents who never leave home without their phones and rely on

them to remain in constant communication with family and

friends, keep track of activities and events, and search for

important information on the fly.

Often more fashion-oriented

phones that are well-equipped,

but not cutting-edge, for search,

shopping and text messaging.

3 Mobile millennials Young adults who are the earliest adopters of new technologies

and services. Device styling captures their attention, but

feature-rich functionality, processing power and applicationsare what really matter to them

Advanced features such as large

touch screen, high-megapixel

camera, Wi-Fi and GPS, rich appstores, and highly capable

browser for social networking,

apps, surfing and messaging

4 Connected kid Children who have been using technology since before they

could walk, often teaching their parents how to use features

and services on their phones. They love their phones and are

always begging their parents for the best new handsets.

Value-price handsets that tend to

have a standout feature or two,

but are not fully loaded, for text

messaging and social networking.

5 Frugal fanatic Adults who are not willing to pay for an expensive data plan or

device but still view their mobile handset as an extension of

their personalities. They carry fewer

feature-rich phones but send text messages and photos

more than typical free-phone owners.

Usually free handsets for text and

picture messaging, and free

downloads.



5 CONVERGING ELEMENTS DRIVING ADOPTION & USAGE RATE

3G

Socialnetworking(i.e. Facebook)

ContentVideo/Music

VOIP(i.e. SKYPE/VIBER)

Devices(Smartphones)

Each element helps one another to succeed



MONETISING THE 3G OPPORTUNITY

BandwidthCarrier

Do we just want to be a dumb pipe? Bandwidth is commoditized product and provides little competitive

differentiation.

Apps/VASDriven

Video/Music, Mobile TV/IPTV, Advanced communications & messaging, Video

on demand, Video Gaming, Video LBS, User-generated contents Do we want to become a content aggregator (and provide wall garden to

safeguard revenues)

Advertising model

Segmentdriven

Corporate segment - Managed Services, Cloud Computing, Telepresence,

Hosting, Security, M2M etc Government partnerships (E-Government, E-Education. E-health, E-Trade

etc)

Although the 5 elements converge to drive adoption & usage, how do we monetised

all the opportunities and ensure maximum revenue gain?



TRENDS & INFLUENCES DATA USAGE

1. Email

2. Social media

3. Music and movies4. Youtube etc upload personal

videos

5. Games

6. Sports news

7. General news

8. General surfing9. Launch own social media site

CATALYSTS

DRIVERS OF3G USAGE

1. Availability, affordability and adoption rate of laptops,

smartphones, tablets etc.

2. Plus the ever growing appetite to stay informed and connected

to family/friends/internet.3. Youth and working adults

4. Corporate segment

Source: Novarra

Content Type Growth %

Social network 190%

Search queries 87%

Videos 74%

Display Ads 52%


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CRITICAL SUCCESS FACTORS (source: WIRELESS FEDERATION REPORT)

1. People want true mobility and the ability to use and access the internet

everywhere has been the most critical aspect of driving uptake and usage.

2. Flat fee pricing flat rate pricing has dramatically impacted the adoption of

mobile broadband across these price conscious regions.3. Handset development Low cost handset devices in the market

4. Killer services that reflect the needs of consumers One aspect that is of pivotal

importance in order to grow mobile broadband usage is the need to develop

compelling services and applications.

5. An opening of the proverbial walled garden - importance of the contributions

made by third party developers is essential in order to grow consumer interest.6. Ad funded services Ad funded service hold an immense and so far relatively

untapped potential..

7. Localized Content Content in vernacular language is an essential prerequisite

to ensure adoption.

8. The advent of Prepaid Mobile Broadband

9. Focusing on the younger generation Data spends of the youth segment are on

an average 30% higher than data spends of other customer segments.


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THANK YOU

3G info sharing paper-Scribd.pptx

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