Telco Trend Report 2009

Power   Shi*  BETA  2009 Telecommunica5on Trend Report                             Summary  2009 BERLIN TELCO SUMMIT 

Power is        shi*ing, as    social media and   mobile communica5on              merge.  2009 BERLIN TELCO SUMMIT 

Trends & Observa5ons  (4. Telecommunica/on Providers &  Mobile MarkePng will  their Business)  (1. Telecommunica/on &   break through  Alarming changes   Society)  Family is the new  Loyalty programmes   in behaviour  hot  Agent of   hot  target group  will come  Telco brands are  (2. Telecommunica/on   Web 2.0 =  threat to evil  social change  Telco brands  not trusted  Providers & People)  are not loved   hot  Big ego  Web 2.0 + telco relieve  Wrong self‐image  and concept  impact of changes  hot  hot  People talk to  Telco brands ≠  LiCle mastery of  friends  people, not brands  Web 2.0  hot  Applica5ons based  (3. Telecommunica/on   on geographic  Nokia is incredible   Providers & Web 2.0)  hot  posi5on  in understanding  (6. Hot devices,  emerging markets  Is incredible &  brands &  successful  Is not successful  hot  BlackBerry is the  applica/ons)  smarter smart phone  everywhere  (5. The iPhone)  hot  Is over‐es5mated  Financial crisis =  HTC  Too many barriers  liLle impact  2009 BERLIN TELCO SUMMIT 

1. TelecommunicaPon & Society  In India, 10 million phone connec5ons are sold every month. That is  14,000 every hour. Mobile phones in India are a great weapon to ‘uncaste’  Web 2.0 =  the country as they are literally for everybody – irrespecPve of age, gender,  threat to evil  cultural background, wealth, income or hierarchical posiPon.   Agent of   social change  The web and social media played an  Image: Ken Banks, kiwanja.net  „They empowered women, empowered  important role during this year’s protests  farmers, empowered blue collared, helped  following the elecPons in Iran.   people to become open and expressive.“  This culminated in the broadcast of the so  Subbu Subramanyeswar, Head of Planning,  called “Neda‐Video”, showing a young  Publicis Ambience, Mumbai   protestor being shot. The ﬁlm was ﬁrst  distributed via Facebook and TwiLer.  Web 2.0 + telco relieve  Alarming changes   impact of changes  in behaviour  For migrant workers, mobiles aren’t just phones. They  60% of BlackBerry owners in  thumb through the images to remember their loved ones  Asia check their e‐mails in  or moments when they weren’t stressed out, it’s their  bed.   music player, it’s a mul5‐purpose entertainment system.  2009 BERLIN TELCO SUMMIT 

2. TelecommunicaPon Providers & People  Please indicate, how much you trust representaPves of the following industries.   On a scale from 1 to 5: 1 = very much, 5 = not at all  Telco brands are  not trusted  Source: Musiol Munzinger Sasserath, Trust in Times of Crisis, 2008, n = 1000  Big ego  Telco brands  are not loved   Wrong self‐image  and concept  Source: hLp://www.brandtags.net/  Most telecommunicaPon companies are neither liked, nor  trusted. However, instead of addressing this problem, they  are trying to make friends on facebook.  2009 BERLIN TELCO SUMMIT 

3. TelecommunicaPon Providers & Web 2.0  In Germany, Vodafone’s spectacular  Web 2.0 relaunch campaign was  heavily criPcized, not only by the whole  adverPsing, markePng and internet  industry.   In Spain, Telefonica  invested heavily in its own social  network “keteke” – only 30.000 members have joined so far  (compared to 5 million on Facebook).  Telco brands ≠  friends  People talk to  people, not brands  LiCle mastery of  In Switzerland, same problem with  the Orange Messenger: Only 1.300  Web 2.0  downloads in the past 6 months.    2009 BERLIN TELCO SUMMIT 

4. TelecommunicaPon Providers & their Business  Vodafone MyCampaign offers cost‐ effecPve local mobile campaigns for small  and medium sized companies.  To support the launch of three  family products in the UK, O2  Deutsche Telekom  hired a former journalist to blog  offers a flatrate for  about how technology is  geWngs is a new service by German mobile phone provider E‐ families.   helping her life as a busy mum.  plus. Customers receive free minutes, text messages or  money in return for subscribing to mobile ads.  Family is the  Mobile MarkePng will break through  new target  group  In Italy, the oil and fuel  In the U.S., Verizon Hub turns your home into a virtual  company ERG sells SIM cards  communicaPon centre. With the Hub you can  that can be used both for  communicate with your family and manage day‐to‐day  making calls and refuelling.  acPviPes, all from one convenient device.  Spending a certain amount on  calls gives you credit to refuel  and vice versa.  Loyalty programmes   Talk & fly: in Spain, for every Euro spent on  will come  calls and messages pepephone customers  are credited with one Euro to be used on  Air EuropefFlights.  2009 BERLIN TELCO SUMMIT 

5. The iPhone  Is incredible &  Too many barriers  successful  Though it already has been copied  many Pmes, the Appstore is sPll  the best place for applica5ons and  services for mobile devices.  In many countries, there is only one  provider which exclusively oﬀers  The iPhone opened a new business category.  the iPhone for contract customers.  Most other  brands are trying to copy – most of  them haven’t created any buzz yet.  Is not successful  Is over‐es5mated  everywhere  In Japan, the iPhone is selling poorly for various  reasons: high monthly data plans that go with it,  its absence of features, the low‐quality camera,  the unfashionable design, the lack of a keyboard  for easy texPng and the fact that it’s not  Japanese.  2009 BERLIN TELCO SUMMIT 

6. Hot devices, brands & applicaPons  Nokia is incredible in  HTC came to UK via Vodafone ,posiPoning itself as  understanding emerging markets  a next generaPon, progressive handset developer,  firmly at the smartphone end of the market.  Nokia Life Tools: a range of innovaPve agri‐ cultural informaPon and educaPon services  HTC  designed especially for rural and small town  communiPes in emerging markets.   „In 2002, Nokia unveiled a strategy to lower  the cost of owning and operaPng a mobile  phone and to bring the benefits of mobile  telephony to people in emerging markets.“  Robert Andersson, ExecuPve Vice President,  Devices, Nokia.  „But for the first half of this year,  BlackBerry Curve outsold the iPhone,  making it the bestselling consumer  U.S. Verizon Wireless –  smartphone in the U.S.“ Fortune  Chaperone Loca5on  Service: allows users to  BlackBerry is the  locate their family  smarter smart phone  Applica5ons based on   member’s Chaperone  Child phone from their  geographic posi5on  Chaperone Parent phone  In the last three years, RIM’s market share in smart  or the Chaperone Website  phones grew from 7% to 20%.) Research in MoPon  ‐ in real Pme, at any Pme.    had 77% average sales growth over the last three  years. Source: hLp://www.cnbc.com/id/32447065  2009 BERLIN TELCO SUMMIT 

(1. Telecommunica/on & Society)  (4. Telecommunica/on Providers &  The financial crisis does not have a major impact on the telecommunicaPon  Mobile MarkePng will  their Business)  Alarming changes   industry, but may have increased the tendency to compete on price.  break through  hot  in behaviour  Family is the new  Loyalty programmes   Agent of   hot  target group  will come  „TelecommunicaPon has become a basic  (2. Telecommunica/on   Telco brands are  Web 2.0 =  threat to evil  social change  Telco brands  “Recent research showed that when the  need and therefore is relaPvely untouched  not trusted  by the financial crisis.“ Gertjan Haramp,  Providers & People)  income is decreasing, the broadband  Publicis, Amsterdam  are not loved   internet connecPon is the last thing  hot  Big ego  Wrong self‐image  Web 2.0 + telco relieve  people give up.“ Anne‐Marie den Hertog,  and concept  hot  hot  arc Leo BurneL, Amsterdam  impact of changes  TelecommunicaPon is a basic  necessity, therefore the last  People talk to  Telco brands ≠  LiCle mastery of  thing people cut back.  friends  people, not brands  hot  Web 2.0  Applica5ons based  (3. Telecommunica/on   „Price, price, price... Telcos have lost  hot  on geographic  Nokia is incredible   Providers & Web 2.0)  However, the crisis lead to an  the opportunity to build on trust/love/ increase in price compe55on.  posi5on  in understanding  empathy, now it's back to money as  disposable income of individuals keeps  emerging markets decreasing.“ Tomas Navarro, Publicis  (6. Hot devices,  „A desperate effort on telco companies to  Dialog, Madrid  Is not successful  hot  brands &  gain share via price, free..., more than...,  will give you ....etc..“ Juan‐Carlos Tapia  BlackBerry is the  applica/ons)  smarter smart phone  Publicis, Mexico City  everywhere  (5. The iPhone)  Is over‐es5mated  Financial crisis =  hot  Too many barriers  liLle impact  HTC  2009 BERLIN TELCO SUMMIT 

Challenges for the Telecommunica5on Industry  (1. What can Telcos improve in?)  Mobile payment  More innova5on   in ﬁxed line  More innova5on at POS  Improve products,   not just image  Improve   hot  hot  Customer‐Centricity  Being a helper and   enabler, not a friend  Understanding culture  hot  Understanding people  Understanding   (2. How do they need to change?)   Web 2.0  2009 BERLIN TELCO SUMMIT 

1. What can Telcos improve in?  Mobile payment  More innova5on at POS  Embracing  VoIP like 3.  Improve   More innova5on in fixed line  Customer‐  Improve products,   Centricity  not just image  „Our robots have re5red. When you  The new tariff launched in Germany  speak to us, you speak to real people.“  is a mixture of a pay as you go tariff  O2 responds to one of the most  which automaPcally turns into a flat  frustraPng customer experiences –  rate once a certain amount has  you cannot get hold of a real person  been spent (60€ – though limited to  when you call the service line.   naPonal calls).  2009 BERLIN TELCO SUMMIT 

2. How do they need to change?  Following the earthquakes in Sichuan on 12th May,  2008, China’s major mobile phone service providers,  China Mobile and China Unicom, set up special  bonus plans for the aﬀected areas and automaPcally  added credit to anyone aﬀected personally.  Being a helper and   Dormitory Idol was a singing contest and one of a series of  enabler, not a friend  markePng acPviPes staged by Singtel in Singapore directed  at foreign workers.  Understanding culture  Understanding people  Hi mobile launched a campaign via Hyves, the Dutch equivalent to  facebook, to promote staying in touch with your friends via SMS  regularly and avoid becoming a “you know who” ‐ Someone you know,  but do not remember the name of.    Understanding   Web 2.0  400 dancers in Liverpool street Sta5on. 13,500 singing  karaoke in Trafalgar Square.  The T‐Mobile YouTube Channel is the UK’s second most  subscribed‐to channel ever.  2009 BERLIN TELCO SUMMIT 

Power         Shi*  BETA  For more informaPon and the full   2009 TelecommunicaPon Trend Report please contact  Nina Daly  nd@musiolmunzingersasserath.com  MUSIOL MUNZINGER SASSERATH  Gesellschax für umsetzungsorienPerte Markenberatung  und Markenentwicklung mbH  Rosenstraße 18, D‐10178 Berlin  T        +49 30.7790777‐82  F        +49 30.7790777‐99  2009 BERLIN TELCO SUMMIT 

Telco Trend Report 2009

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Notes on slide 1

9 Favorites & 8 Groups