BrTGSM General Office   1
Brasil Telecom GSM announces
                  launch of wireless operation
                          Press Conference



...
AGENDA




             Coverage
              Fixed-Mobile Convergence Strategy
                 Examples of launch offer...
AGENDA




             Coverage
              Fixed-Mobile Convergence Strategy
                 Examples of launch offer...
Brasil Telecom GSM Coverage


      BrTGSM chose the GSM technology

          because it is the most modern in the

     ...
Brasil Telecom GSM Coverage


     Network infra-structure:

       More than 1,700 sites in the launch

       Largest GS...
AGENDA




             Coverage
              Fixed-Mobile Convergence Strategy
                 Examples of launch offer...
Convergent integration of
                    telecommunications services




BrTGSM General Office              8
The integration of telecommunications services can
                  happen in three different levels
                    ...
The Only One to Have – “A Única que tem”

   Brasil Telecom GSM is The
      Only One to Have Fixed-
      Mobile converge...
AGENDA




             Coverage
              Fixed-Mobile Convergence Strategy
                 Examples of launch offer...
Examples of launch offers

     We will present two offer examples based on fixed-mobile
     convergence, creating concre...
“Único” – Convergent pre-paid of BrTGSM




BrTGSM General Office          13
Convergent pre-paid: Fixed + GSM + Public phones

          “Único” (Unique)


                         R$ 30.00          ...
Brasil Telecom GSM pre-paid is Unique
     (“Único”), because:

     It is the only operator that:

       Allows credits ...
Promotion: “Fale por menos” (Talk for less)


                            Today a local call from a Brasil
               ...
Pay Less - Elasticity

                   Clients=0.0605344+0.0491557Discount
               -0.0012139 Dscount**2+0.00001...
AGENDA




             Coverage
              Fixed-Mobile Convergence Strategy
                 Examples of launch offer...
Distribution channels


     BrTGSM distribution channels structure in the launch:



       BrTGSM flagship stores       ...
Convergent Customer Care

      The convergent customer care is another exclusive and pioneer
    initiative of our operat...
Shopping Center Kiosks – Direct Channel




BrTGSM General Office           21
Kiosk – Mobiles on Display




BrTGSM General Office               22
Exclusive Dealers




BrTGSM General Office          23
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BrTGSM General Office

  1. 1. BrTGSM General Office 1
  2. 2. Brasil Telecom GSM announces launch of wireless operation Press Conference BrTGSM General Office 2
  3. 3. AGENDA Coverage Fixed-Mobile Convergence Strategy Examples of launch offers Distribution channels BrTGSM General Office 3
  4. 4. AGENDA Coverage Fixed-Mobile Convergence Strategy Examples of launch offers Distribution channels BrTGSM General Office 4
  5. 5. Brasil Telecom GSM Coverage BrTGSM chose the GSM technology because it is the most modern in the market. More than 600 localities will be covered in 2004, besides the main highways, serving more than 30 million people (82% of the total) in its operation area. BrTGSM General Office 5
  6. 6. Brasil Telecom GSM Coverage Network infra-structure: More than 1,700 sites in the launch Largest GSM coverage in the region by the end of 2004 Main partners: Alcatel and Ericsson BrTGSM General Office 6
  7. 7. AGENDA Coverage Fixed-Mobile Convergence Strategy Examples of launch offers Distribution channels BrTGSM General Office 7
  8. 8. Convergent integration of telecommunications services BrTGSM General Office 8
  9. 9. The integration of telecommunications services can happen in three different levels Integration levels Integrated transmission Integrated switching platforms Network es eas Common Operating Supporting Systems cr in i ty Integrated IN platforms ex pl Single handset (wireline and wireless) (wireline Handsets and services m Co Integrated services: • Single telephone number Packages and bundles Single bill Commercial One stop shop Commercial integration Handsets and services integration Network integration Integration level solely commercial, i.e. Integration level sharing services with Full integration level of transmission integrated sales and customer care existing infra-structure systems, switching platforms and network elements, with full integration of In many cases it happens through Handset integration (fixed and mobile) systems to support the operation partnerships between different Service integration based in an intelligent Integration of systems and infra- operators network platform, which allows for the structures is clearly easier for start-ups Main goals are convenience (one-stop- delivery of a package of common services that foresee integration, and not for shop), a single bill and the possibility of (e.g. solutions of personal numbers, home operators with existing equipments discounts zone services, mobile VPN and mobile Centrex) Final objective of a full integration of Business units relatively independents platforms will be reached in the Business units with increased need of unified transmission of switched networks to IP management networks BrTGSM General Office 9
  10. 10. The Only One to Have – “A Única que tem” Brasil Telecom GSM is The Only One to Have Fixed- Mobile convergence in Brazil All the completely new, singular and exclusive services can be easily identified by our consumers, by the Stamp: The Only One to Have BrTGSM General Office 10
  11. 11. AGENDA Coverage Fixed-Mobile Convergence Strategy Examples of launch offers Distribution channels BrTGSM General Office 11
  12. 12. Examples of launch offers We will present two offer examples based on fixed-mobile convergence, creating concrete benefits to the end customer. They are: “Único” – Unique “Fale por menos” – Talk for less BrTGSM General Office 12
  13. 13. “Único” – Convergent pre-paid of BrTGSM BrTGSM General Office 13
  14. 14. Convergent pre-paid: Fixed + GSM + Public phones “Único” (Unique) R$ 30.00 Uses R$ 0 a 30.00 Buy Service R$ 30.00 0800 Virtual Credits Uses R$ 30.00 R$ 0 a 30.00 By dialing aatoll free number (0800), BrTGSM clients are able to complete By dialing toll free number (0800), BrTGSM clients are able to complete calls from the wireline network calls from the wireline network The total balance of credits can be freely used in any of the accesses The total balance of credits can be freely used in any of the accesses (fixed/mobile/public phones) (fixed/mobile/public phones) BrTGSM General Office 14
  15. 15. Brasil Telecom GSM pre-paid is Unique (“Único”), because: It is the only operator that: Allows credits to be freely used in public phones and fixed terminals with lower tariffs than the pre-paid plan; Includes SMS credits every time you buy a calling card (of any face value); Unique and singular round calling cards; BrTGSM General Office 15
  16. 16. Promotion: “Fale por menos” (Talk for less) Today a local call from a Brasil Telecom fixed terminal to 66% more expensive another Operators’ mobile phone costs approx. R$ 0.678* Operator A Brasil Telecom A local call from a Brasil Telecom fixed fixed terminal to a Brasil Telecom Pay less Pay less terminal calling Brasil GSM mobile phone will cost calling Brasil Telecom GSM! Telecom GSM! approx. R$ 0,4068* The cost of a local call from a Brasil Telecom fixed terminal to another The cost of a local call from a Brasil Telecom fixed terminal to another Operators’ mobile phone will remain at least 60% more expensive. Operators’ mobile phone will remain at least 60% more expensive. * Reference DF – regular time BrTGSM General Office 16
  17. 17. Pay Less - Elasticity Clients=0.0605344+0.0491557Discount -0.0012139 Dscount**2+0.0000103Discount**3 • •The graph shows the results of The graph shows the results of S=0.0365898 R-Sq=93.2% R-Sq(adj)=89.1% 60 the research about the reduction the research about the reduction of fixed-mobile tariff attractiveness of fixed-mobile tariff attractiveness • • From 30% onwards the From 30% onwards the Clients difference becomes significant for difference becomes significant for more than 70% of clients. more than 70% of clients. • •Brasil Telecom GSM will offer at Brasil Telecom GSM will offer at least 60% to its clients. least 60% to its clients. Discounts (%) BrTGSM General Office 17
  18. 18. AGENDA Coverage Fixed-Mobile Convergence Strategy Examples of launch offers Distribution channels BrTGSM General Office 18
  19. 19. Distribution channels BrTGSM distribution channels structure in the launch: BrTGSM flagship stores 16 Shopping center BrTGSM flagship kiosks 40 Kiosks Exclusive dealers 400 Agents Exclusive and non-exclusive retailers 1.350 TOTAL Points of sale of BrTGSM……………………1.806 Integrated Corporate Sales Force Integrated Corporate Sales Force BrTGSM General Office 19
  20. 20. Convergent Customer Care The convergent customer care is another exclusive and pioneer initiative of our operation. Brasil Telecom GSM flagship stores were developed following the one-stop- shop concept. The stores are spacious, with around 200 m², where the clients find all Brasil Telecom services: wireline and wireless telephony, intelligent services, broadband and narrowband internet, alternative packages of DLD and ILD tariffs, wireline and wireless telephony accessories, etc. The stores and the call center will serve the complete telecommunication services portfolio of The stores and the call center will serve the complete telecommunication services portfolio of Brasil Telecom, both for sales as well as for customer care. Brasil Telecom, both for sales as well as for customer care. BrTGSM General Office 20
  21. 21. Shopping Center Kiosks – Direct Channel BrTGSM General Office 21
  22. 22. Kiosk – Mobiles on Display BrTGSM General Office 22
  23. 23. Exclusive Dealers BrTGSM General Office 23
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