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Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson believes in an all communicating world where telecommunication is affordable for all
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Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Mar 28, 2015

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Page 1: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

HeadlineIn CAPITALS

50 pt

Sub-headline 32 pt

Our logotype as sender

Communication for All

Bodil Josefsson

Head of Communication for All initiative

Ericsson believes in an all communicating world where telecommunication is affordable for all

Page 2: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Source: The Economist - March 10, 2005

On March 14 United Nations launched a“Digital Solidarity Fund”

Page 3: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Some facts... In the next 5 years, another 1B subscribers are forecasted in the GSM

networks, whereof BRIC (Brazil, Russia, India and China) cater for over 400 Million.Source: EMC and UN statistics end 2004

People in poor countries spend a larger proportion of their income on telecommunications than those in rich ones. Source: The Economist, March 2005

A developing country which had 10 more mobile phones per 100 population between 1996 and 2003 would have enjoyed per capita GDP growth that was 0,59 percent higher than an otherwise identical country.Source: London Business School, 2005

A mobile network costs 50% less per connection than fixed lines and can be rolled out appreciably faster. Source: Vodafone Policy Paper, March 2005

97% of the population in the villages investigated knew about mobile telephony and 50% had used mobile phones. In contrast, 76% did not know what a computer is and only 3% had used one.Source: Socio-economic study in Tanzania by UNDP/SIDA, autumn 2004

Page 4: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Reaching 3 billion users…

1 billion 2 billion 6 billion

Users

UsageIn

crea

se U

sag

e

Increase Penetration

Page 5: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

… with end-user spend of only 3,5 USD per month!

0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000

10

6,7

5

3,3

Potential subscribersUSD/

month mobile spend 20082004

Millions of usersCurrent penetration

Page 6: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Can you achieve –Can you achieve –

High margins with low ARPU? Profitability with low tariffs? Profitability with pre-paid?

Page 7: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Argentina

Australia

Austria

Belgium

Brazil

Canada

Chile

China

Colombia

Czech

Denmark

Egypt

FinlandFrance

Germany Greece

Hong Kong

HungaryIndia

Indonesia

Ireland

Israel

Italy

Japan

Korea

Malaysia

Mexico

Netherlands

New Zealand

Nigeria

Norway

Philippines

PolandPortugal

Russia

Singapore

South Africa

SpainSweden

Switzerland

TaiwanThailand

Turkey

UK USVenezuela

0%

10%

20%

30%

40%

50%

60%

70%

80%

0 10 20 30 40 50 60 70

ARPU USD

EB

ITD

A M

arg

in %

Yes – Low ARPU with healthy margins!

Source:Merril Lynch – Global Wireless Matrix 3Q2004

Page 8: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

VenezuelaUSUK

Turkey

Taiwan

Switzerland

SwedenSpain

South Africa

Singapore

Russia

Portugal

Poland

Norway

New Zealand

Netherlands

Mexico

Malaysia

Korea

Japan

Italy

Israel

Ireland

IndiaHungary

Hong Kong

Greece Germany

FranceFinland

Egypt

Denmark

Czech

Colombia

China

Chile

Canada

Brazil

Austria

Australia

Argentina

0%

10%

20%

30%

40%

50%

60%

0 0,05 0,1 0,15 0,2 0,25 0,3 0,35 0,4 0,45 0,5

Revenue per Minute

EB

ITD

A M

arg

in %

Yes – Low tariffs with healthy profitability!

Source:Merril Lynch – Global Wireless Matrix 3Q2004

Page 9: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Yes – Pre-paid with healthy profitability!

VenezuelaUS UK

Turkey

Thailand

Switzerland

SwedenSpain

South Africa

Singapore

Russia

PortugalPoland

Philippines

Norway

Nigeria

New Zealand

Netherlands

Mexico

Malaysia

Japan

Italy

Ireland

Indonesia

IndiaHungary

Hong Kong

GreeceGermany

FranceFinland

Egypt

Denmark

Czech

Colombia

China

Chile

Canada

Brazil

Belgium

Austria

Australia

Argentina

0%

10%

20%

30%

40%

50%

60%

70%

80%

0% 20% 40% 60% 80% 100% 120%

Prepaid %

EB

ITD

A M

arg

in %

Source:Merril Lynch – Global Wireless Matrix 3Q2004

Page 10: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Low ARPU markets can have high margins!

Low tariffs do not have to hurt profitability!

Pre-paid does not necessarily lead to low profits!

It is how well the business is managed that matters!

Yes!

Page 11: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Market potential- an estimate of the potential (Source: World Resource Institute)

680 million households in 20 emerging markets making less than US$ 6000 anually / household

Total households annual earning, US$ 2 trillion

Willingness to spend 5% on telecom connectivity (excluding applications & enterprise)

Total annual potential market,

more than US$ 100 billion.

Huge market potential in emerging markets

Page 12: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

The power of mobile telephony

Mobile phones substitute for fixed phones in poor countries, but complement fixed lines in rich countries

Mobile phones are lower cost and far quicker to roll out than fixed lines

Higher mobile penetration leads to higher GDP

Access to mobile communication saves travel time etc

Page 13: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Market characteristics

Mobile the only phone

Cash economies

Initially willing to share subscription (or pay per use)

Lack of basic utility and communication infrastructure in rural areas

“Business is good for development and development is good for business”Ian Johnson, World Bank, Vice President Sustainable Development.

Traffic based...

And subscriber based

Page 14: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Areas to addresswhen extending access to more users

Phones

Infrastructure

Applications

Customerhandling

New businessmodels

Financing

Regulation and taxation

Page 15: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

The phone!Evolution from shared phones to individual phones

Village phone

Family phone

Personal phone

Page 16: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Targeted applications are needed4 priority areas identified

Healthcare informationcampaignstreatment

Education information sharingInternet access

Mobile bankingmoney transfer

mobile wallet

B2B tradingpricing / market infohiring

Page 17: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Technology Leapfrogging

Developing markets are not hindered by high levels of fixed investment therefore operators can leapfrog directly to new technologies and this is happening (WiMAX, EDGE, GPRS, 3G, WLAN etc)

Operators in many emerging markets are providing advanced services within months of their introduction in the developed world.

Page 18: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Population in GSM Markets

without coverage

Population with GSM coverage,

but no subscription

GSM Subscribers

2,200

2,600

1,400Non GSM Markets

World population 6.4B

GSM provides global coverage

•Cost efficient coverage

•Optimized entry solutions

•Scalability

•Cost efficient capacity

•New services

•Improve quality

Sources: EMC and UN Q1 2005

Page 19: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Sharing of infrastructure among operatorsSharing of infrastructure among operators

Revenue

Coverage

Savings

Shared Networks

Other examples of sharing: Roads Airports Other infrastructure

Other examples of sharing: Roads Airports Other infrastructure

Core network Transmission Radio network Network Mgt

Core network Transmission Radio network Network Mgt

Page 20: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

NetworkNetwork

Operator 1 Operator 2Operator 2 Operator 3Operator 3

NetworkNetwork NetworkNetworkNetworkNetwork

Operator 1Operator 1 Operator 2Operator 2Operator 2Operator 2 Operator 3Operator 3Operator 3Operator 3

NetworkNetwork NetworkNetwork

ConsumersConsumers

NetworkNetwork

Operator 1 Operator 2Operator 2 Operator 3Operator 3Operator 1Operator 1 Operator 2Operator 2Operator 2Operator 2 Operator 3Operator 3Operator 3Operator 3

ConsumersConsumers

3% penetration

20% penetration

Benefits with shared networks

Page 21: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Breakeven monthly cost (assuming 3 years depreciation)

0

1

2

3

4

5

1 3 5 7 9 11 13 15

Number of needed hops for connection

Tra

ffic

cap

acit

y n

eed

Mb

ps

The transmission challengeTrade-off between capacity and distance

Satellite more cost-efficient

Microwave more cost-efficient

“Normal” mobile network (for surface coverage)

Page 22: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

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Marrakech, September 19th 2005

Outsourcing of operations- rightsizing capacity

Traditional purchasing

ManagedCapacity

Time

Customerdemand

Over capacity

Under capacity

Over capacity

Under capacity

Page 23: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Evolution towards more advanced servicesAdding data to the existing voice network

URBAN SUB-URBAN RURAL

Add data : Introduce GPRS

Net

wo

rk c

apab

ilit

ies

Voice: GSM (existing nation-wide coverage)

Increase data speeds : Upgrade of existing GSM/GPRS to EDGE

Page 24: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Cost for data alternativesEdge is cheapest if aiming at national deployment

Edge

WiMAX

Number of users

CAPEX (in MSEK)

CPE cost around 300

USD

No CPE cost, as EDGE will be built in to all phones in

the future

Note that this graph is only illustrative, and does not give any exact indications

Page 25: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

The challenge with WiMAX BC In emerging markets,how many computers are there within a radius of 20 km?

20 km

GSM gives universal access WiMAX adds capabilities to regions where the digital divide is already bridged

Page 26: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005

Conclusion Fixed networks will not be built out

for voice services in emerging markets. Mobile networks will be the dominant infrastructure.

Cost-efficient infrastructure, useful applications and low cost terminals are needed.

New business models may be needed to overcome hurdles for operators to target low-spending users

Voice and SMS services will be the initial services, but data capabilities can easily be added to this infrastructure when needed

Page 27: Headline In CAPITALS 50 pt Sub-headline 32 pt Our logotype as sender Communication for All Bodil Josefsson Head of Communication for All initiative Ericsson.

Top right corner for project names customer or partner logotypes, marks etc. See Best practice for example.

Logotype as sender

Headline 40 pt

Sub-headline 24 pt

Text 24 pt

Marrakech, September 19th 2005