Innovation Norway-Madrid Mobile and wireless market  overview Presentation June 1st, 2005 By Rodrigo Ballesteros Cruz Seni...
Innovation Norway-Madrid
Innovation Norway-Madrid Ole Homb Commercial  Counsellor  (2005) Juan Bergas Negre Senior Market Advisor (1980) ICT, Const...
Client Projects 2004 – Sectors and type of projects ICT in 2003: 48%
Some references
ICT – some success cases  <ul><li>Movilisto – Company establishment </li></ul><ul><li>Conax – Market info and contacts wit...
Spain Some facts
Some  basic data Sources : SSB , INE, World Bank Group
Regions of Spain Madrid Barcelona Bilbao Valencia Sevilla Catalu ña  (6,3 milioner inb.) Handel, IKT, bilindustri, finans,...
Trade relations: Norway-Spain
Import / Export Source : SSB Export growth 04: Spain:   +39% France:  +35% UK:   +20% Germany:  +14% USA:   +12% Denmark: ...
Norwegian companies established in Spain <ul><li>About 150 Norwegian companies </li></ul><ul><li>3.500 employees </li></ul...
Spain is getting closer… <ul><li>20,000 Norwegian people established in Spain </li></ul><ul><li>50,000 has bought a reside...
Mobile phone and wireless market in Spain Market, Penetration, Operators, Development and Potential
Spain: One of the large mobile telephone markets
Mobile communication  Market <ul><li>37 Million Mobile subscribers </li></ul><ul><li>7% Annual Growth </li></ul><ul><li>92...
Mobile Communication <ul><li>4 active networks: </li></ul><ul><ul><li>Telefónica´s analogue  </li></ul></ul><ul><ul><li>Te...
Mobile subscribers
3G/UMTS <ul><li>3G/UMTS licences auctioned for 520M Euros in 2000: Telefónica, Vodafone,  Amena and Xfera.  </li></ul><ul>...
Internet Data in Spain Usage, penetration, applications
Internet <ul><li>Internet users: there is no uniformity about official figures: </li></ul><ul><ul><li>12 mill (33,1%) AUI ...
Internet access locations <ul><li>In june 2004 AIMC presented a research; a 21% annual increase in Internet use. </li></ul...
Opportunities and areas of interest subtitle
Why Spain is interesting <ul><li>High penetration of market – ”everyone” has at least one mobile </li></ul><ul><li>Pressur...
What's hot in the market? <ul><li>UMTS (3G) :  </li></ul><ul><ul><li>This new technology expects to reach a market penetra...
What's hot in the market? <ul><li>Voice over IP:  it needs to generate new services with an added-value to the clients </l...
Challenges <ul><li>Provide enough terminals </li></ul><ul><li>Lower the price of the terminals and services </li></ul><ul>...
Some issues to be taken into account Doing business in Spain: a cultural approach
SOME KEYS AND ADVISE BASED ON THE NORWEGIAN EXPERIENCE IN SPAIN <ul><li>Confidence is a key word. Business will not happen...
SOME KEYS AND ADVISE BASED ON THE NORWEGIAN EXPERIENCE IN SPAIN <ul><li>Know your data. Updated Hard Facts are often diffi...
Thank you for your attention! Contact details: Innovation Norway Tel: +34 91 344 09 87 Paseo de la Castellana 31 Fax: +34 ...
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IN Madrid v/ Rodrigo Ballesteros

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  • 17 Comunidades Autónomas ” Historiske provinser”: Catalu ña, Baskerland, Galicia Nasjonalistiske strømninger Utstrakt selvstyre 53% av all ”innovasjon” skjer i Madrid og Catalu ña
  • Hvor mange nordmenn tror dere har flyttet til Spania? Hvor mange har kjøpt bolig? Hvor mange drar dit på ferie hvert år?
  • IN Madrid v/ Rodrigo Ballesteros

    1. 1. Innovation Norway-Madrid Mobile and wireless market overview Presentation June 1st, 2005 By Rodrigo Ballesteros Cruz Senior Market Adviser
    2. 2. Innovation Norway-Madrid
    3. 3. Innovation Norway-Madrid Ole Homb Commercial Counsellor (2005) Juan Bergas Negre Senior Market Advisor (1980) ICT, Construction, Process Industry, Environment, Seafood, Establishment Rodrigo Ballesteros Cruz Senior Market Advisor (1997) ICT, Energy, Offset, IFU Carola Jennerg ård Secretary (1994) Accounting, assistance to projects Line Berg Trainee (2005) Assistance to projects <ul><li>Good match between “sector demand” and competence . </li></ul>
    4. 4. Client Projects 2004 – Sectors and type of projects ICT in 2003: 48%
    5. 5. Some references
    6. 6. ICT – some success cases <ul><li>Movilisto – Company establishment </li></ul><ul><li>Conax – Market info and contacts with local companies </li></ul><ul><li>Telenor – Market information, payment settlement, contacts </li></ul><ul><li>EDB4Tel – Company establishment, market info, contacts with local companies and authorities </li></ul><ul><li>Tandberg – Market information, sales seminar organisation </li></ul>
    7. 7. Spain Some facts
    8. 8. Some basic data Sources : SSB , INE, World Bank Group
    9. 9. Regions of Spain Madrid Barcelona Bilbao Valencia Sevilla Catalu ña (6,3 milioner inb.) Handel, IKT, bilindustri, finans, legemidler, kjemisk industri, elektronikk, design, reklame, consulting Valencia ( 4,2 milioner inb.) Mye småindustri: møbler, tekstil, lær, keramikk, frukt, mm. Andalusia (7,3 milioner inb.) Stor service-sektor, viss industri, frukt og grønsaker, mye jordbruk. Baskerland ( 2,1 milioner inb.) Skipsbygging, stål, jernvarer, maskiner Madrid (5,4 milioner inb.) Offentlig forvaltning, bank og finans, elektronikk, legemidler, telecom, gen. industri, consulting Galicia (2,7 milioner inb.) Fiske, akvakultur, mineraler, skipsbygging Santiago
    10. 10. Trade relations: Norway-Spain
    11. 11. Import / Export Source : SSB Export growth 04: Spain: +39% France: +35% UK: +20% Germany: +14% USA: +12% Denmark: +10% Sweden: +4% China: +1% Japan: 0% Italy : -21% Import Export Million NOK
    12. 12. Norwegian companies established in Spain <ul><li>About 150 Norwegian companies </li></ul><ul><li>3.500 employees </li></ul><ul><li>- Turnover about 1 billion Euro </li></ul><ul><li>About 10 new companies per year </li></ul><ul><li>Alicante (44), Madrid (38), Barcelona (16), Málaga (8), Cádiz (7 ) </li></ul>38 18 4 45 1 5 16 1 7 1 1 1
    13. 13. Spain is getting closer… <ul><li>20,000 Norwegian people established in Spain </li></ul><ul><li>50,000 has bought a residence </li></ul><ul><li>700,000 visits Spain yearly </li></ul>
    14. 14. Mobile phone and wireless market in Spain Market, Penetration, Operators, Development and Potential
    15. 15. Spain: One of the large mobile telephone markets
    16. 16. Mobile communication Market <ul><li>37 Million Mobile subscribers </li></ul><ul><li>7% Annual Growth </li></ul><ul><li>92% Mobile penetration </li></ul><ul><li>Major mobile operators: </li></ul><ul><ul><li>Telefonica (19 million users) </li></ul></ul><ul><ul><li>Vodafone (11,4 million users) </li></ul></ul><ul><ul><li>Amena </li></ul></ul><ul><li>Monthly average expenditure on mobile services (2003): 30 Euros </li></ul><ul><li>Turn over in 2003: 34,4 billion €, 8% increase from 2002 </li></ul><ul><li>Investment in 2003: 4,5 million € </li></ul><ul><li>The sector represents 4,6% of GDP in 2003 </li></ul><ul><li>January & February 2005: 571.000 clients changed operator (CMT) </li></ul><ul><li>Source: Paul Budde Communication Pty Ltd) – June 2004, Actualidad Económica 2004 </li></ul>
    17. 17. Mobile Communication <ul><li>4 active networks: </li></ul><ul><ul><li>Telefónica´s analogue </li></ul></ul><ul><ul><li>Telefónica´s GSM 900/1800 networks </li></ul></ul><ul><ul><li>Vodafone´s GSM-900 </li></ul></ul><ul><ul><li>Amena’s GSM-1800 networks </li></ul></ul><ul><li>Prepaid cards have been the main driver of growth – still accounting for some 60% of all subscriptions. </li></ul><ul><li>SMS, MMS, WAP, GPRS and i-mod all available – but only SMS has had any success </li></ul><ul><li>In 2003, 11,7 billion SMS were sent. 47% of these are premium SMS. </li></ul><ul><li>SMS generates 13,7% of the mobile operators turnover. Turnover related to GPRS (MMS is included) reached 47€ million. </li></ul><ul><li>The wireless services (using the GSM network) are very new in the Spanish market and therefore there are not official statistics available. Estimations are that 9,7% of companies use wireless connection </li></ul><ul><li>The Ministry is studying the convenience of changing the regulation to invite virtual mobile operators to the market. </li></ul>
    18. 18. Mobile subscribers
    19. 19. 3G/UMTS <ul><li>3G/UMTS licences auctioned for 520M Euros in 2000: Telefónica, Vodafone, Amena and Xfera. </li></ul><ul><li>The first commercial 3G services became available in February 2004. </li></ul><ul><li>Less than 2% of phones bought in Jan & Feb 2005 were UMTS – phones. </li></ul><ul><li>Due to high prices – cost over 100 Euros (Half of phones bought by Spaniards cost less than 100E) </li></ul><ul><li>Lack of information about the advantages that this new technology offers. </li></ul><ul><li>Network technology not sufficient developed => problems zona de UMTS and zona de GSM </li></ul><ul><li>Total UMTS antennas displayed in Spain: 2600, mainly owned by Telefónica and Vodafone. The antennas needed to cover 95% of the territory are between 8000 and 9000 this means an investment of 6300 million Euros. About 140 municipalities had access to UMTS in the end of 2004, and this is less than half of the Spanish population. The operators have not disclosed any numbers on how many of their customers are using UMTS. </li></ul><ul><li>The companies already selling UMTS terminals in Spain: Nokia, Motorola and Samsung. 14 million new terminals are expected to be sold in 2005, many of them UMTS and Multimedia </li></ul>
    20. 20. Internet Data in Spain Usage, penetration, applications
    21. 21. Internet <ul><li>Internet users: there is no uniformity about official figures: </li></ul><ul><ul><li>12 mill (33,1%) AUI (march 2004) </li></ul></ul><ul><ul><li>14 mill (Nilsen-2003) </li></ul></ul><ul><ul><li>42,8% (AECE-2003) out of 35 million people </li></ul></ul><ul><ul><li>40% (Eurostat, 2004) </li></ul></ul><ul><ul><li>9,8 mill Paul Budde Communication </li></ul></ul><ul><ul><li>Penetration of broadband low in a European context, but adoption has accelerated rapidly. One factor in the limited take-up is the analogue infrastructure in regional areas. These lines do not support Internet access, but the government is investing in their upgrade. </li></ul></ul><ul><ul><li>In mid-2004, 71,5% of all broadband connections were made through ADSL, 23,2% were through cable modem and the rest through satellite, fiber or Powerline broadband (5,3%). </li></ul></ul><ul><ul><li>More than three million ADSL lines (+58% in comparison with data from April 2004). Source: Telefónica </li></ul></ul><ul><ul><li>76,2% of the companies are connected to the network (87% Eurostat, 2004) </li></ul></ul><ul><ul><li>32,8% have their own web page (2004) </li></ul></ul><ul><ul><li>86,5% of the companies uses PCs (2004) </li></ul></ul><ul><ul><li>The sales of portable PCs has increased in 31% in 2004 </li></ul></ul><ul><ul><li>Approx. 620 licensed Internet Service Providers (ISPs) in Spain in 2004. </li></ul></ul>
    22. 22. Internet access locations <ul><li>In june 2004 AIMC presented a research; a 21% annual increase in Internet use. </li></ul><ul><li>62% connected from home </li></ul><ul><ul><li>ADSL: 42.8% </li></ul></ul><ul><ul><li>Telephone line: 35.5% </li></ul></ul><ul><ul><li>Cable Modem: 17.8% </li></ul></ul><ul><li>32% used the Internet at work </li></ul><ul><li>13% accessed the Internet at school/university </li></ul><ul><li>Highest user – penetration: Madrid (39%), Basque Country (35%) and Catalonia (34%) </li></ul>
    23. 23. Opportunities and areas of interest subtitle
    24. 24. Why Spain is interesting <ul><li>High penetration of market – ”everyone” has at least one mobile </li></ul><ul><li>Pressure from the government to lower prices </li></ul><ul><li>High profitability in the market </li></ul><ul><li>Auna up for sale – changes in market </li></ul><ul><li>Three new GSM-900 licences (June 2005): one for Telefónica (4 megahertz) and two Amena (6 megahertz). The investment committed by the operators for the rural areas sums 532 million Euros </li></ul><ul><li>Process to grant the UMTS licence not operated by Xfera (if this company does not begin to operate by the beginning of 2006) </li></ul><ul><li>“ There is a growing market for mobile services and equipment with an important demand for value-added services for both the consumer and the business world. One of the main reasons for a good expectations for the year 2005 is the beginning of operations of the 3G mobile phone market and the increase in the activity and business for the wireless services. There is a need for solutions in areas such as premium SMS, mobile games, MMS, interaction with TV, payment systems, surveillance, direct marketing, mobility solutions for enterprises and professionals among others.” (Source: Expansión, US Commercial Service, Actualidad Económica, January 2005.) </li></ul>
    25. 25. What's hot in the market? <ul><li>UMTS (3G) : </li></ul><ul><ul><li>This new technology expects to reach a market penetration of at least 50% by 2007. </li></ul></ul><ul><ul><li>The market will need services, technology, applications, mobile-video conferencing features and technology to increase the security. </li></ul></ul><ul><li>Wireless technologies : </li></ul><ul><ul><li>WiFi: In need to increase the security users level, to develop a better “Roadming”, to define a more competitive business model, to develop devises (dispositivos) and to work on technology to avoid interference with Bluetooth and other frequencies. </li></ul></ul><ul><ul><li>WiMax, Mobile-Fi, ZigBee and Ultrawideband: will develop future business in Spain. </li></ul></ul>
    26. 26. What's hot in the market? <ul><li>Voice over IP: it needs to generate new services with an added-value to the clients </li></ul><ul><li>4G : The media begin to talk about the development to new technologies for a fourth generation </li></ul>
    27. 27. Challenges <ul><li>Provide enough terminals </li></ul><ul><li>Lower the price of the terminals and services </li></ul><ul><li>Improve quality of the services </li></ul><ul><li>Invest in the 3G network (investment committed: 6,300 million Euros) </li></ul><ul><li>To build a 3G culture </li></ul><ul><li>To improve the security in the communication </li></ul><ul><li>(Source: Tiempo de Hoy, 22/11/2004) </li></ul>
    28. 28. Some issues to be taken into account Doing business in Spain: a cultural approach
    29. 29. SOME KEYS AND ADVISE BASED ON THE NORWEGIAN EXPERIENCE IN SPAIN <ul><li>Confidence is a key word. Business will not happen until confidence is established. </li></ul><ul><li>Most business is in Spanish. English is often NOT sufficient. </li></ul><ul><li>Things take time, even more in smaller or traditional companies. Are NOT slaves of time, but are relatively on time. </li></ul><ul><li>Bureaucracy still very present, also in larger companies. </li></ul><ul><li>Make sure you have a meeting, reconfirm close to date </li></ul><ul><li>Start meeting with small talk, this can take long </li></ul><ul><li>Often conclusions are made over lunch, or dinner. That allows you to socialise, shows respect for the Spanish culture, and also provides the opportunity for positive feedback and deals. </li></ul><ul><li>Much improvisation. Less preparation than in Germanic countries. </li></ul><ul><li>Personal services are exchanged for confidence. </li></ul><ul><li>Be patient and long term. Do overall planning. Mobilise resources; Time, people and money. </li></ul><ul><li>Be honest. Go for confidence. Take time needed to get close to your partner. Social Contact is the key. Invest your time. </li></ul>
    30. 30. SOME KEYS AND ADVISE BASED ON THE NORWEGIAN EXPERIENCE IN SPAIN <ul><li>Know your data. Updated Hard Facts are often difficult to get. Make sure you invest in good “glasses”. This will be a strength in setting priorities, and in negotiations. </li></ul><ul><li>Select your priority and stick to it but allow for adaptations along the way. </li></ul><ul><li>Select your right partner, you will need one. Get close to him. Make sure your contract is conceived so that there is a cheap way out, if he deceives you. </li></ul><ul><li>Communicate clearly, written conclusions as base for follow up and next step. Allow for repeated visits. </li></ul><ul><li>Follow-up is vital. Fulfil l all promises like supply of information, letters confirming conclusions, … If not, he will forget you rapidly. </li></ul><ul><li>Remind him or her on your agreement before coming on next visit. Make sure you plan for one more step. </li></ul><ul><li>Read the signals. Much communication will be between the lines; the Latin people communicate more discretely than the Germanic. Being “too direct” can be mistaken as a rude or arrogant attitude. </li></ul>
    31. 31. Thank you for your attention! Contact details: Innovation Norway Tel: +34 91 344 09 87 Paseo de la Castellana 31 Fax: +34 91 344 09 47 Planta Baja 28046 Madrid Mail: rodrigo.ballesteros @invanor.no
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