Can you believe that it’s the French who get it right?Almost all Marketing & Product Management of Telco Services is WrongRudolf van der BergLogica Management ConsultingRudolf.van.der.berg@logica.com+31 6 13414512http://internetthought.blogspot.com

OutlineTelcos fail at marketing because they are schizophrenic about their role. They are connection providers, not GoogleAll of them offer the same services with no innovationFree.fr has accepted it’s telco role. It has1 triple play offer for 30 euro, but with scores of services you can’t get elsewhereThis offer together with operational excellence has transformed the French marketPigs will fly before most incumbents apply this, but challengers should seriously evaluate this model

Marketing isthe activity, set of institutions, and processes for creating, communicating,delivering, and exchangingofferings that have value for customers, clients, partners, and society at large.(American Marketing association)

Telcos are dissatisfied with being a utilityWhere they want to beWhere they are

Telcos want to offer value, but differentlyThey see no value being They invest in being

Stuck in a standard value proposition?Telcos fail at innovationsEvery telco offers the same double, triple, quad playIt’s all internet, telephony and TV (with HD)There are 80 options in this screen and behind the tabsTelco innovation now is slicing and dicing differentlyCustomers pick the middle

Telcos fail at innovations

Every telco offers the same double, triple, quad play

It’s all internet, telephony and TV (with HD)

There are 80 options in this screen and behind the tabs

Telco innovation now is slicing and dicing differently

Customers pick the middle

Free.fr offers value differently

It has 1 offer: Everything for 30 euro

Cool features

The PhilosophyOffer the best product in the market. Deny competitors competition on price or bandwidth. Prevent ChurnServices don’t need to add to ARPU, but to make Free more attractive. ïƒ No fake projected take-up + profitsFrom €30 subtract line-rental, tax, capex, opex and profit, remainder finances new services. Keep the back-office (provisioning, billing) simple (1 offer)Introduce something new regularly

How can you copy FreeAccept that you work for a telco and not Google or in MediaThink up all the cool things you want to do with mobile, fixed, wifi, television, telephony etc.Simplify your provisioning and billing to one product (with some top ups)Start building. Listen to your customers. Improve every timeWork 10 years

Bonus: Are they successful?

Bonus: TV-Persoïƒ Broadcast yourself All you need is a camcorder (or any other S-video device) connect it to the Freebox and it sends it out to other Free.Fr users. Like Youtube, but can do live broadcasts

Bonus: operational excellenceDesign own hardware: DSLAM, Freebox modem, In-House Powerline communication (FreePlug)Design own software: Freeplayer (TV on PC), FreeboxLow headcount: 1000 staff and 850 call centerHardly any Sales or Marketing people (their customers call themselves Freenauts and are the best sales and marketing)

Rudolf van der BergLogica Management ConsultingRudolf.van.der.berg@logica.com+31 6 13414512http://internetthought.blogspot.com