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FTTH Conference Europe 2012

FTTH Conference Europe 2012
Munich, 14 Feb 2012

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    Robert whitman Robert whitman Presentation Transcript

    • Voice of the IndustryMarketing of FTTHBob WhitmanVice President, Global Program ManagementCorning Cable Systems
    • Marketing of FTTH NetworksConsiderations for SuccessBusiness model Purpose of the NetworkObjectives Desired Actions/OutcomesAudience/Customer What Do They WantRollout Phase Tailor the Message © Corning Incorporated 2012 2
    • FTTH Still Early in Adoption Cycle Telco Broadband Messaging Shifting from xDSL to FTTH Global broadband subscribers by technology FTTH subscribers by region 450 70 History Forecast 400 60 Subscribers (M) 350 50Subscribers (M) 300 40 250 200 30 150 20 100 10 50 0 0 2001 2004 2007 2010 2013E 2016E 2019E 2022E 2025E 2005 2010 2015 DSL Cable FTTB FTTH EMEA Americas APAC 2011 2015 2020 2025 FTTH subs (M) 50 120 290 400Source: Infonetics, Heavy Reading, Corning Analysis © Corning Incorporated 2012 3
    • The Business ModelInfluences the Audience and Message Investment Rationale Examples Carrier Funded 1. Ability to spend Telecom carrier self 2. Compelling business case funds from existing cash flow or debt 3. Motivated to spend 4. Positive regulatory environment Public Supported 1. Carrier funding challenged Carrier investment US supported through 2. Motivation to spend BB Stimulus public incentives 3. National interest Public Utility Government builds 1. Social benefits Singapore and operates network 2. Economic development similar to utility 3. Infrastructure payback © Corning Incorporated 2012 4
    • Market FTTH Through All StagesTailor the Message to Audience Against Your Objective Objectives Audience• Gain approval (Franchise) to provide services • Consumer• Approval of civil works (Permits) • Community• Gain “Rights of Way” • City• Eliminate bureaucracy • Partners• Construct the network at low cost • Home Developers• Offer compelling services and create consumer • Businesses enthusiasm and pull through • Policy Makers• Achieve high penetration and low churn• Maintain low operating cost © Corning Incorporated 2012 5
    • FTTH: Best Option in the Face of CompetitionAre You Prepared for Success?Quotes from Small and Large Telcos“We had to stop our Marketing campaign because we couldn’t keep up with demand.” (Large Telco)“Because we don’t have wireless, FTTH provides us with the best opportunity to grow our business”. (Large Telco)“We had huge cash flow problems because FTTH demand was so high we couldn’t afford to buy more ONTs.” (Small overbuilder)“Our broadband share drops from 50 percent to 20 percent when we compete with DOCSIS 3.0.” (xDSL provider) © Corning Incorporated 2012 6
    • FTTH Consistently Tops Consumer Surveys Satisfaction Reduces Customer Churn Tech We Cant Live Without, Part I RVA Sept 2011Sources: Consumer Reports, 2009-2011, Sound & Vision Sep 2007, PC Magazine Aug 2008, ChangeWave, Jan 2012 Render Vanderslice, Sep 2011 © Corning Incorporated 2012 7
    • Marketing to the Consumer Utilizing Third Parties Perceived as Independent Uncompressed HDTV HDTV from FTTH service provider Compressed from major major MSOSource: AVS Forum, April 3, 2008Note: Screen Shots from Discovery Channel are uncompressed frame from each program in full-resolution using MPC with Dscaler5-IVTC. © Corning Incorporated 2012 8
    • Marketing to the ConsumerTranslating Carrier Value to the Consumer FTTH Value to Carrier FTTH Value to the Consumer • More reliable platformAverage Revenue per User $147 /month • Less downtimeReduction in Trouble Calls 80% • Higher satisfactionPower Usage Reduction vs. 38% Number reported “reboots” per monthDSLChurn Reduction and Voice 1.5%RetentionAnnual Savings per Line ~ $100Unplanned: Free Up copper for TBDMaintenanceSource: Verizon and Bell Aliant Public Statements Source: Render Vanderslice Sept 2011 © Corning Incorporated 2012 9
    • Marketing FTTH Channels to Your Audience• Direct – Letters, fliers (w/ phone bill), door hangers – Special website, video demonstrations, blog – Events (neighborhood parties, town hall meetings)• Relevant media – ads and articles – Local and regional newspapers – Consumer magazines (e.g., Sound & Vision) – Trade (e.g., FORTUNE) and business media• Utilize third-party channels – TV retailers – FTTH Council – Universities – Consumer Reports Source: Ringgold Telephone Coop, Rochester Telephone Company, NBN Co Jan 2012, Verizon, FTTH Council © Corning Incorporated 2012 10
    • Marketing FTTHMarket Consumer Experience, Not the Technology Search: Hong Kong Broadband Search: “Slick Sam Slade” Search: “Verizon FiOS Commercial” © Corning Incorporated 2012 11
    • Marketing to the CommunityMaking the Community Your Ally• Keep the community informed• Highlight benefits of FTTH• Emphasize job creation and economic development• Advance notice about construction Source: Verizon FiOS Community Letter Feb 2006 NCC North Dakota © Corning Incorporated 2012 12
    • Marketing to the CommunityMost Exciting Marketing Campaign in FTTH History• Created a frenzy of community activity – Plan to reach 50,000 to 500,000 people – 1,100 communities responded – 200,000 individuals responded – Stunts included communities changing names, mayors jumping into freezing lakes and shark tanks• Best conceived plans can be impacted by traditional barriers – Marketing to the community doesn’t end after the “win” © Corning Incorporated 2012 13
    • Marketing for Renters, Buyers and LandlordsValue Perceived by All Groups Importance of FTTH AvailabilityHome Sale Premium with FTTH to Rent or Buy DecisionAverage Estimate FromConsumers Who Dont $2,485 Home Have FTTH Renters 93.0% Average Estimate From Consumers Who $4,318 Home Have FTTH 65.2% Owners Source: RVA Render & Associates Dec 2007 Average Price Estimate From Developer $5,500Source: RVA Render & Associates Oct 2006 Korea Certified Star Program Cable to the Home Fiber Fiber+Cat5e Cat5e Cat3 Maximum Speed 1Gbps~ 100Mbps~ 10~100Mbps 10Mbps Emblem Source: Korea MIT 2005 Source: Verizon January 2012 © Corning Incorporated 2012 14
    • Summary• FTTH Has Many Marketable Traits – Bandwidth capability – Network reliability – Demonstrated success around the world – Proven economic benefits• Marketing Campaigns – Tailored to audience – Designed to drive action – Make the community and consumers your ally – Build excitement and enthusiasm © Corning Incorporated 2012 15
    • Thank You!