Why all Telecom Marketing and Product management is wrong

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

Outline
Telcos fail at marketing because they are schizophrenic about their role. They are connection providers, not Google
All of them offer the same services with no innovation
Free.fr has accepted it’s telco role. It has1 triple play offer for 30 euro, but with scores of services you can’t get elsewhere
This offer together with operational excellence has transformed the French market
Pigs 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 utility
Where they want to be
Where they are

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

Stuck in a standard value proposition?
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 Philosophy
Offer the best product in the market. Deny competitors competition on price or bandwidth. Prevent Churn
Services don’t need to add to ARPU, but to make Free more attractive.  No fake projected take-up + profits
From €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 Free
Accept that you work for a telco and not Google or in Media
Think 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 time
Work 10 years

Bonus: Are they successful?

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

Rudolf van der Berg
Logica Management Consulting
Rudolf.van.der.berg@logica.com
+31 6 13414512
http://internetthought.blogspot.com

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Why all Telecom Marketing and Product management is wrong

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Why all Telecom Marketing and Product management is wrong — Presentation Transcript