Case Study : P1 4G Staying One Step Ahead


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Case Study : P1 4G Staying One Step Ahead

  1. 1. P1 4GSTAYING ONESTEP AHEADHighlights How adopting qualityP1’s Challenges• Maximize infrastructure capability helped chart P1’s growth P1 4G (P1) is Malaysia’s first WiMAX telecommunications company, the• Reduce customer churn• Increase user satisfaction & experience level region’s first large-scale Mobile WiMAX commercial deployment and the• Reduce customer call center cost and subscriber world’s first large-scale 802.16e 2.3GHz WiMAX network deployment complaints outside of Korea.Greenpacket’s Strength Two years after its introduction, P1 was faced with a maturing market• Best-in-class performance devices where subscribers have become more sophisticated and demand quality• Deep understanding of user needs• Strong WiMAX R&D broadband services. P1 saw an opportunity to differentiate by surpassing the level of service already available in the country. P1 was determinedHow did P1 benefit? that coverage and quality of service would be its unique selling point.• Increased coverage by an average of 10-20%• 135% and 88% monthly net active subscriptions This is why P1 raised the bar with its ‘Super Broadband’ campaign increase since launch of DX and UH devices centered on delivering quality experiences from normal tariff package to• Two-thirds churn reduction best value mixed packages, passive to proactive customer service and• 47% decrease of customer calls at call center• Exponential increase of nomadic subscriber growth industry average to best-in-class high performance devices while its competitors are busy waging a price war. CASE STUDY
  2. 2. P1: CHANGING MALAYSIA’SBROADBAND CLIMATEAccording to the World Bank, broadband accelerateseconomic development. Every 10% increase in “P1 is committed to delivering a superbroadband penetration contributes to 1.38% GDP 4G rich media broadband experiencegrowth. In Malaysia, mobile broadband communication that is affordable and accessible to allcan be used in vertical markets like trade and commerce, Malaysians at home and, healthcare, emergency services and Being one of the 4G pioneers ingovernment administration. South-East Asia and in the world, P1 is today Malaysia’s largest 4GThe Malaysian government’s issuance of WiMAX license Operator as well as the 4G leader inwas a call for change. P1 responded with its introduction South-East Asia. P1 is gettingand created landmark changes that contributed positively stronger, wider and faster by the day,to the country’s broadband penetration and sparked a and it is our mission torace to all incumbent wireless and wireless players to play a major role instep up in fulfilling the nation’s ICMS 886 ICT plan.Malaysia was able to achieve its target 50% broadband realizing the nation’spenetration ahead of schedule with 53.5% penetration as goal of provingof August 2010 but there is still pent up demand for broadband for all.”broadband. Michael Lai Chief Executive Officer Packet One NetworksP1’S RACE TO THESUMMITP1 grew to more than 200,000 subscribers in just two P1’s Achilles heel lies in WiMAX’s issues with indoorshort years and ready for a new growth stage. The coverage. Similar to radio planning in the cellular world,company believed that they could double their daily net WiMAX radio planning approach has seen littlesubscriber adds from 500 to 1,000. However, the real divergence from conventional means which means that itchallenge for P1 to sustain this new growth is to convince is based on single wall coverage. Single wall coverageand turn these new subscribers into loyal long-term planning allowed P1 to significantly reduce its initialcustomers. P1 decided that improvements in service CAPEX. The tradeoff was that P1 had to recommendquality and end user experiences are the answers. prospect customers to withhold their subscriptions even when they are within coverage areas as the deliverableUnderlying challenges lay ahead for P1. High quality of service was deemed unsatisfactory by theexpectations are set for WiMAX as it is deemed to be the generation 4G technology that is able to deliverconsistent, robust and high quality broadband serviceand better user experience that is beyond what othermobile operators in Malaysia could provide. The end-userexperience has to be on par with wireline broadband 01service.CASE STUDY
  3. 3. GAME CHANGINGEXPERIENCESP1’s vision to deliver consistent and robust broadbandservice steered the operator to adopt a growth strategy Net Active Subscription Subscriptionbuilt upon the foundation of delivering quality service and UH Launchdevices. There was a need for home and mobile deviceswith high performance signal quality. DX LaunchP1 looked towards Greenpacket for a solution and itcame in the form of best-in-class devices in the DX SeriesWiMAX Indoor VoIP modem and the UH Series USB HighGain modem. The devices were introduced by P1 in 2H2010 during the Super Broadband campaign and it 0 0 10 10 0 0 0 -1 10 1 -1 t-1 r-1 v- g- p- ay l- n Oc No Ap Au Se Ju Jucompletely shattered expectations. P1 has a massive hit. M Source: Packet 1The DX was launched in the month of August 2010 as Figure 1: Increased net subscription as a reflect of newpart of P1’s home package plan. As a result, the net package plan with associated Greenpacket DX & UH Seriesactive subscriber (subscribers added minus churn) product launchadditions per month rose by a staggering 135%. The UHsaw astounding results as well when it was launched in “Greenpacket’s DX and UH modemsNovember 2010. Net active subscriber additions per delivered astounding results inmonth increased by another 88%, collectively tripling its combating indoor penetration issuesnet subscriber adds within two quarters. inherent to wireless technologies.Additionally, subscriber attrition significantly cut by Since their introduction, P1 is not onlytwo-thirds as indicated by COP (Cooling Off Period) seeing lower subscriber CHURN duechurn after UH’s introduction. What’s even more amazing to happier customers, but is alsois that it is an average 1 to 2% higher from COP churn experiencing a tremendous increase inregistered for Home Package Plans using fixed devices. subscribers as we are now able toThe rest of the COP churn was mostly accounted by deliver strongercustomers who were genuinely outside coverage area. broadband experiences to new customers inP1’s customer care centre has reported a 47% reduction cell-edge locations.”in customer complaints related to low data rateperformance, device connectivity and out of coverageissues. This drop effectively reduces operational cost Ti Lian Sengwhile significantly increases revenue. The ability to deliver Vice President of Technology Packet One Networksthe right customer experience creates customer loyaltyand this is evident with subscribers staying with P1 sinceits launch. 02CASE STUDY
  4. 4. TACKLING THEROOT CAUSEField result showed that in real-world usage scenarios,every single dB increases the cell size by an average of 10 “At P1, we see mobile broadband asto 20% depending on geographical terrain. This is a the next megatrend. Just like howsignificant increase as the RSSI and CINR improvement voice evolved from fixed to mobile,means that users at the cell edge now is able to receive broadband will become increasinglysatisfactory service at better modulation schemes and mobile and personal. To that end, wethus maximizes the infrastructure investment. launched our Super WiGGY plans with Green Packet’s UH-235 USB modemUsing broadband in a nomadic and mobile manner is not in November this year. With strongersomething new in Malaysia as wireless broadband and wider P1 4G coverage by the day,penetration was a reported 3.79% in 2009¹. However, a the UH-235 USB modem is the ideallarge portion is contributed by embedded devices rather enabler for personalthan USB devices. Therefore the mode of utilization is still broadband both atvery sporadic as satisfaction level and confidence overthe data speeds on mobile based plans (i.e: through USB home and on-the-go.”dongle) is unsatisfactory due to indoor penetrationlosses. This has resulted in operators offering services on Michael Laibest effort basis to control usage; while on the other Chief Executive Officer Packet One Networkshand, users are expecting DSL-type speed.P1’s launch of W1GGY has shown tremendous demand Customer acquisition cost increases along with higherand uptake has increased exponentially with the launch quality devices. Nonetheless, P1 has proven thatof UH. This proves that Malaysian broadband users delivering the right customer experience has a real anddemand for high quality, robust personal broadband accountable impact that boosts customer loyalty thatservices. The high performance capabilities of UH leads to long-term returns.delivered what the users expected. 0 0 0 10 10 0 10 10 Home r-1 -1 l-1 t-1 g- p- v- n- ay Ju Ap Oc No Au Se Ju M Nomadic 0 0 0 10 0 0 10 10 r-1 -1 l-1 -1 t-1 g- v- n- ay p Ju Ap Oc No Au Se Ju 03 M Source: Packet 1 Figure 2: Demand trend for Home & Nomadic service plansCASE STUDY
  5. 5. THE GREENPACKETDIFFERENCEGreenpacket and P1 have been close partners since P1’slaunch. As P1’s sole device vendor, Greenpacket has “Greenpacket’s synergy with P1 hasbeen given the valuable opportunity to develop a allowed us to create better productstop-down understanding in all stages of growth of a based on real-world subscriber andWiMAX network. Both companies moved forward operator needs. Our commitment totogether in developing solutions that are most suitable to P1 as a customer and partner is towireless data network needs. WiMAX devices play an deliver only the finest products andimportant role in the subsystem that improves overall support, which echoes the same highnetwork performance, contrary to the common level commitment thatperception that WiMAX devices are only tools that extend P1 has to theirs.”connectivity to end users.Greenpacket’s 2nd generation devices are a result of the Kelvin Lee Senior General Managercompany’s extensive understanding and innovation in Greenpacketdeveloping products that would not only optimizenetwork capabilities, but also allow its customers todifferentiate and profit from their infrastructureinvestment. P1’s success with the DX and UH are primeexamples. 04
  6. 6. “DX TOWER” - Perfect synergy “UH SHUTTLE” – Performance of Wireless technologies in VersatilityThe DX or “Tower” is the first data and voice enabled UH or “Shuttle” is the world’s first high gain USB modemWiMAX WiFi IAD that supports WiFi 802.11n in the that supports both fixed and nomadic By using WiFi 802.11n which is up to 15 times Incorporating one of the most advanced antennafaster in performance compared to 802.11g, the DX is designs, the UH sets new standards for ease-of-use,able to extend best quality wireless coverage both performance and quality, both indoors and outdoors. Itindoors and outdoors. Coverage is extended by 10 times allows the user to engage the device in numerouswith quality of service (QoS) enhancements, users get to configurations to get the best signal quality as it combatsenjoy true mobile wireless freedom and with the highest all the legacy limitations of conventional USB modemsperformance. from absorption losses, shielding losses, non-line-of-sight (NLOS) and unable to get the bestThe DX can be placed near the window where the WiMAX emitted radiation pattern.signal is strongest and use the stronger, wider and fasterWiFi coverage within its indoor premises making it The UH’s features and aesthetic design has capturedsuitable to be used in home, SME or SOHO as it gives the P1’s users as being both practical and unique. Demandbest in class service. for the UH is higher than normal USB modems and customer feedback has been positive.P1 is able to package the DX as part of its premium homeas well as enterprise plans on a common device due tothe performance capabilities that satisfy both marketsegments. In a long run, saving P1 the operational costand technical effort required to manage multiple deviceplatforms. On the move Indoor Outdoor Shuttle’s versatility gives it an edge-it can be used anywhere, anytime, indoors and on the move 05CASE STUDY
  7. 7. Common Advantages of DX & UHHigh Gain Omni Antenna High Transmission PowerAll of Greenpacket’s 2nd generation devices are designed The DX and UH enjoy better signal quality even whilewith high-gain Omni antenna. Both the DX and UH have indoors with 25dBm transmit power. For the DX, the 2Tx5dBi gain that ensures WiMAX signals are strong, gives it an equivalent performance similar to 28dBm whilecompensating indoor penetration loss. the UH has the best-in-class transmit power in a USB form factor, resulting in better uplink performance toOmni antenna radiates and receives WiMAX signals from combat the de-facto limitation of WiMAX.any direction, allowing great flexibility in modemplacement. This gives users ultimate flexibility in wherethey want to place their modems.Smart Signal Transmission World-class WiMAX R&DDX implements 2Tx and 2Rx. Transmitting with both Besides our global presence that extends over nineantennas effectively creates diversity that guarantees offices around the world, P1 was impressed withincrease signal strength for an improved uplink Greenpacket’s world-class design efforts globally,performance of up to twice the coverage area and particularly Greenpacket’s Taiwan R&D Center.capacity. This center is dedicated to advancements in the WiMAXUH implements automatic selection of the best antenna field where a team of WiMAX specialists engage into improve signal strength for better uplink performance. consistent research, development and design activities toIt is the design of the UH that enables this diversity to be provide state-of-the-art WiMAX modems with unrivaledeffective as minimum distance between the two antenna performance and quality.are required to create transmit diversity.A winning partnershipGreen Packet’s relationship with P1 is developed on a long-term strategic partnership. This is demonstrated via ourcommitment to continuously provide new and innovative solutions that supports P1’s vision.If you would like to obtain more information on how you can improve your mobile broadband experience, pleasecontact us at 06CASE STUDY