A few quick words on Effortel. We started out and we are primarily and MVNO. In joint venture with Carrefour, worlds second largest retailer, we are have launched four Carrefour Mobile MVNOs in Belgium, Italy, Poland and Taiwan. \n\nWe have developed and deployed a unique technical setup for Carrefour. We run all those MVNOs from one place, from one platform- an Amdocs platform in Brussels. This platform is simultaneously integrated with 6 MNOs around the world- KPN in Belgium, Vodafone in Italy, Boyugues in France, Polkomtel in Poland, Chughwa in Taiwan and Nawras in Oman Sultanate. \n\nWe have one technical team managing all those MVNOs, and Effortel is also managing the business side of Carrefour Mobile, including strategy, marketing planning and finance. Carrefour does what they do best- they distribute the product. We do the rest.\n\nHaving built this truly global infrastructure, we also act as an MVNE. We have 3 additional MVNOs running on the same platform- one in Italy, one in Poland and one in Oman. Three more will be launched soon in the Middle East and Africa.\n\nI will tell you a few stories about real MVNOs- both the ones we own and the ones we help to run.\n
Carrefour is one massive distribution channel. People usually see big stores and have an understanding that retail companies are big, but few realize HOW big they are. Carrefour has more than 500 stores in Belgium, 1500 stores in Italy, 100 stores in Taiwan, 350 stores in Poland. There are hundreds of Carrefour stores in Brazil, Argentina, Colombia. \n\nEach store receives thousands of visits every day, resulting in millions of visits in each country monthly. Each and every of those shoppers pass through the cashier line. This is the reason why cashier line is considered to be the best and the most expensive placement in retail. Thats where the most high margin goods are- chewing gum, batteries, candy. \n\nWell, most retailers are distributing telecom products for a while now- prepaid topups mostly. What we did with Carrefour- we started using Carrefour's distribution as an acquisition channel.\n\nThe photo on the screen is from Poland. There is a huge cashier line- more than 30 cash registers. At each and every of them we have placed a stand with our sim cards and topups. The sheer number of people passing through them is enough to make substantial prepaid acquisition numbers with little or no advertising- the product is advertising itself.\n\nIt is retail, pick-and- pay environment, therefore we have a designed a suitable product for that. Carrefour Mobile is a no frills, honest, low priced product targeted towards loyal Carrefour shoppers- usually, housewives. Therefore I have put only two prices on the back of the starterkit- price per minute and price per SMS. I have only 5 seconds to both explain and convince, thus the simplicity. \n\n\n
No frills prepaid is old news though. Every operator has a simple, honest market proposition. What about differentiation?\n\nTo differentiate, we had to think out of the box. And right next to our box were retail technologies. Checkout systems, loyalty databases, couponing programs, shopper behavior analysis systems, you name it.\n\nWe looked at those technologies on the retail side and we decided to differentiate our product through retail related features.\nLet me give you an example of a very simple promotion. Checkout system prints a topup code for an amount of free minutes based on the basket side- 40 euros- 4 minutes, 50 euros- 5 minutes, 60 euros- six minutes. \n\nOn the day we launched Carrefour Mobile in Poland Carrefour shoppers noticed something new on their cash tickets- it was saying that Carrefour has given you free minutes for your shopping. They looked at it and threw it away. The next week they come for shopping again and see the same message again, and throw away the cash ticket. By the time they are throwing away 27th free minute, they start thinking about using them- and get a starterkit.\n\nWe do a lot of promotions like this- we exchange loyalty points into minutes, we do mobile couponing, we allow people to use their points accounts for calling, and so on and so forth. We also use behavior analysis systems to target our promotions- I can see who exactly is buying my competitors topups in Carrefour and I can target my promotions to those people- by printing promotional messages on the cash tickets.\nSo, all in all, Carrefour brings a lot of value to is host MNOs- not only a massive, unparalled distribtion channel, not only captive, loyal customer base, but also innovative promotions, products and services, which MNO would never be able to replicate on its own.\n\n
Enough about Carrefour. One of our customers is FM Group. FM Group is a very large multilevel marketing company in Poland. You might know multilevel marketing model from companies like Avon, Oriflame or Tupperware. In Poland, FM Group is bigger than Avon and Oriflame combined, and they also have operations around the world.\n\nAs most successful MLM companies, FM Group has a massive network of sales agents- more than one hundred twenty thousand. It is a pyramid- the guy at the top has agents underneath, who in turn has agents underneath and so on. Each agent receives a share of revenue from sales by agents underneath him. \n\nDriving all this is a complex incentive model, where people score points, exchange points into revenue share percentages- honestly, I do not fully understand it.\n\nWhat I do understand though that selling postpaid through this network was a pretty good idea. You see- postpaid is made for this model. This is how MNOs dealer-based distribution works- everyone gets a little bit of commision.\n\n\n
So this is how those guys implemented their sales model- someone at the top connects four subscribers, who in turn connect several subscribers each. Everyone becomes a subscriber too. At the end of the month everyone shares a bit of the revenue generated by this subscriber group- and the longer they stay with FM, and the more subscribers there are and the more they pay- the more money the guy at the top is getting. And it motivates him to push this product down as hard as possible.\nIt will be sufficient to say that 120 thousand subscribers, the agents alone, already make up a pretty nice postpaid user base. add to that additional subscribers each of those agents could bring, and you will have an idea how massive such an operation can become in terms of subscribers and revenue. And mobile is just a value added service on top of the perfumes, which actually fund the channel!\n\nThere is no way Polkomtel could design and deploy such a distribution channel. Everyone from product marketing guy (including me) in MNOs has toyed with a member-get-member idea- and mostly failed.\nThose guys cant fail- they already built the mlm network, and the only thing they have to do is to push the product down. \n
People knew there are some Chinese living in Italy, but no one cared to ask how many. \nit appears that there are more than half a million of Chinese in Italy. And they call home a lot.\nEnter mister Kai, a low profile chinese gentlemen who owns a network of chinese call shops- little stores where people come in- to call home over VoIP.\n\nMister Kai went to Vodafone and asked if he could launch an MVNO. Vodafone gave him a wholesale contract and told to contact Effortel for enablement. Thus we ended up launching Daily Telecom- a fully chinese operator... in Italy.\n\nIt is extremely successful. Mr Kai told us that 90% of chinese households in Italy have at least one daily telecom sim card. He did not spend much on acquisition- he knows those people, they know him. He did not even brand or pack his sim cards- he is distributing them from those brown cardboard Sagem Orga packs of 100 sims. He is running the business with Flavio, his italian colleague, who is desigining long-distance bundles and adjusts the pricing. The rest is done by us in Brussels.\n
Just to give you a quick example of what is a chinese operator. Chinese operator is where everything is in chinese. Contracts in chinese, this sim swap form is in chinese, IVR is in chinese, USSD is in chinese, callcenter is chinese. its a fully end-to-end chinese experience! And given the fact that many Chinese people in Italy dont speak or understand Italian, its a big differentor for Daily Telecom. It not only the only operator they trust- its the only operator they can understand. \n\nNow try to think about Vodafone launching this. I dont even want to think about sitting in a meeting with IT Billing people trying to explain to them that we absolutely need to have a chinese version of an invoice or a contract. Or telling the tech department to design a chinese IVR tree. Big MNOs are simply not geared toward working with niches- but MVNOs are.\n\nDaily Telecom brings a lot of value to Vodafone not only through revenue- Wind, their competitor owned by Orascom, has been pursuing a very agreesive ethinical segment strategy, trying to get hold of ethinical niches like north africans- and largely succeeding. Daily Telecom thus become Vodafone's answer- Vodafone now has cubans and philipinos along with Chinese, and is also enjoying a strong foothold in the ethinical mobile market of Italy.\n
Oman Sultanate is a very rich oil state in the Gulf. Its a large country by area, but small by population- only 2,5 million people live there. There are only 1,5 million native Omanis, who enjoy all kinds of social benefits, drive expensive cars and do business- while all menial labor is being done by foreign labourers from Pakistan, India and Bangladesh.\nThere are more than a million foreign labourers in Oman. Most of them live in ghettos or labour camps, largely hidden from the eyes. They are mobile users, but, according to MNOs, low value users- low arpu, low national MoU. MNOs in Oman are rich- they enjoy ARPU's exceeding 100 eur, and although they understand the potential in foreign labour, they did not find a way to monetize it. So the segment was out of focus.\n\nSamatel, one of the 4 MVNOs in Oman, saw foreign labour as their core segment. With a cost structure at a fraction of MNOs, they saw they can make a tidy profit even with low arpus of those subscribers. And, also, they were not too arrogant to go and try understand the needs and the life of those people. Thus they came up with ideas like a mobile sales truck, music events in the labour camps, marketing campaigns based on hindu and muslim religious and national festivals, and so on and so forth. They will have at least 5% of the prepaid market by the end of the year- and they launched on the 1st of September.\n\nFor their host they are a miracle- new subscribers are coming onto the network, but MNO does not need to see them, to serve them, to retain them, and, most importantly- to spend money to acquire them. \n
Achievements 5 countries, 8 MVNOs, 1 platform 1 platform inOwn MVNOs in JV with Carrefour Brussels 5 countries 10 MVNO’sItaly Taiwan Belgium Poland 6 MNO integrationsMVNOs using Effortels platform Italy Poland Oman Poland Malta Italy/EgyptMNO IntegrationsBelgium Italy France Poland Taiwan Oman
Effortel operationsFrom Europe to the Middle East and Southeast Asia EUROPE& ASIA& AMERICA& AFRICA& AUSTRALIA& SOUTH&AMERICA& Eﬀortel(MVNOs(((( ANTARTICA&
Effortel is both MVNO and MVNEFoundation: 2005Mission: Build a global MVNO/MVNE leaderTeam: 60 telecom, marketing and retail expertsShareholders: Alemar and 2 founders
Business model Partnership with retailers and MVNE services on a global scalePartnership with retailers Own technology International scale Brands Ability to multisource and Able to deploy anywhere in negotiate low wholesale the world Distribution prices Centralized back office Loyal customer bases operation Full control over product, Existing loyalty programs pricing and marketing mix Minimal headcount Rapid and cost effective Access to fast growing Cost advantage operational deployment MVNE markets with full MVNO expertise
Complete portfolio of MVNO services Effortel is able to serve in all phases of MVNO businessLegal Compliance Services implementation: Daily technical operationMarket study Voice, USSD, roaming Processing of customerOffer deﬁnition Activation transactionsBusiness plan MNP Front and back office processesMarketing plan Customer Care Daily management of marketing mixTe chImplementation Reloads and payments plan Wholesale Customer care managementMNO contract reconciliation Logistics and suppliernegotiations Promotion management Controlling and reporting Sales channel management organization Reload channel General management organization Supply chain management
Free minutesgiven to customers for their shopping
Largest MLM cosmetics network in Poland122k agents in Poland, 400k globallyUnique incentive pyramidDistributes high value postpaid...along with perfumes .Unique distributionFM Group Mobile, Poland
There are 500 000 Chinese in Italy They are heavy long distance callers Spending up to €100 on calls home Founder had a chain of Chinese call shop Launched a Chinese MVNO 2 employees More than 200 000 subscribers. Vodafone loves it. Wind hates it.Access to closed communitiesDaily Telecom, Italy
Everything is in IVR USSD MNP forms Voicemail Bulk SMS SelfcareChinese Call Center Contracts Topups
New thinking 1 million foreign labourers in Oman Mostly living in camps and ghettosSamatel, Oman SultanateSamatel brought them an offer.
Effortel Technologies Centralized management of multiple MVNOs MNO domain MVNE domain MVNO domain Billing and Core Application Subscriber CustomerRadio Access Top-Up Marketing Sales Network Platform Management Care Mgt. Effortel Technologies Effortel Technologies is the operator of shared Effortel back office services Centralized Located in Brussels Complete suite: IN platform, OSS/BSS, libraries of processes and workﬂows. Provider of services (MVNE) to JVs and to major MVNOs Economical beneﬁt: Capex: platform ﬁxed costs are amortized over several countries Opex: signiﬁcantly reduced because one team operates several MVNOs
MVNO systemsCashier Systems Web Site Loyalty program ERP Systems Stock management Realtime integration Realtime integration Effortel MVNE systems Business support system Operational support system Operational support system Report Self care Point of sales Customer care generator Voucher Inventory Dealer Invoice printing Work ﬂow engine management management management Subscriber Postpaid Invoice Account database billing generation receivables MNP Credit check Dunning System monitoring Intelligent Network Platform Wholesale reconciliation and Balance Data charging gateway RADIUS revenue assurance management Credit Real time Bonus Provisioning VMS IVR USSD control uniﬁed rater Wallets Service Logic Execution environment Service provisioning CDR Mediation Service Signaling layer Provisioning commands Event records B2B integration/ Bulk Exchange Signaling MNO systems Provisioning device Mediation device MSC/STP GGSN/SGSN SMSC HLR BSC/Mobile network
Managing integration complexities Effortel is able to integrate with all possible protocols and ﬂavoursMNO/Service KPN Vodafone Chunghwa Nawras Polkomtel Camel Camel Camel Voice INAP (Ericsson) INAP (Nokia) (Alcatel- (Ericsson) (Ericsson) Lucent) SMS Diameter INAP Camel Camel Camel MMS Diameter Off-line Billing - Diameter Diameter DATA Diameter - - Diameter Diameter Camel & USSDRoaming Voice CAMEL Camel - Camel Call Back Off-line BillingRoaming SMS Diameter (Diameter in - Diameter Diameter Q4 2011) Soap/XML/ Soap/XML/ Soap/XML/ Provisioning - MQ TCP-IP TCP-IP TCP-IP Mediation FTP over VPN FTP over VPN FTP over VPN - FTP over VPN Lead time 3,5 Months 4 Months 5 Months 5 Months 4 Months
Technical speciﬁcationsRedundant, carrier grade platform- 5NINES availability, carrier grade hardware- Complies to all ETSI and NES standards- Technology agnostic- Global system capacity, sizing and performances: 1.4milion PHCA- Operating systems: Solaris 8, Windows 2003 server- Internal details : o4 Sun Microsystems 4 way, 8GB ram, o6 Sun Microsystems 2 way, 2 GB ram o20 Intel HP server with 1 or 2 Quad or Dual core CPU and 2 or 4GB RAM oStorage volume is adjusted in Raid 1+0 or Raid 5 according to the application and service oTape Drive Backing up system Databases- Capacity of storage (disks and libraries) systems: 6 in System storages of 1TB and 2 Shared storages of 1TB- Operating system of the work station: Management clients use Widows XP professional- Quantity and types of network (LAN, WAN) equipment needed: o4 Checkpoint Firewalls o12 Cisco Routers o10 Cisco Switches- Functionalities lost in case of hardware faults: oAll critical services (Call, SMS, Reloads, Billing, CRM) are hosted in redundant environments oFor services that can tolerate 3o minutes or more of outage we have VMware virtual systems ready to take over- Database Management: SQL Server Management Studio- Report Management: BI and internally built reporting system
Service SupportFull range of voice and data services, plus a huge library of promos and featuresVoice (incl. short codes, toll-free and premium numbers),IVR (Customer Care, reload),VMS,SMS, MMS (incl. premium),USSD (push/pull, callback),Data (WAP, Internet, Intranet, Content),Multiple reload channels (Scratch cards, E-voucher, Automatic reload by Credit Card),Roaming,Mobile Number PortabilityWeb Self CareConference CallNumber Forwarding ServiceTransfer money (by SMS and USSD)Missed Calls NotiﬁcationOutgoing Call Restriction (OCR)Fraud management, access management, resource management.Effortel also maintains a massive library of unique promotions and product features developedfor MVNOs.
Multi-wallet functionality and personal countersCounter capabilities: Several counters/wallets per subscriber. Real Time Counting Additional combinations: e.g destination type. Expiration period for each counter. Counting direction indicator (up/down). Periodically Recurring.Multi-wallet & account hierarchy: Hierarchies between wallets can be deﬁned. Multi- wallet and individual counter functionality provide virtually endless product development possibilities.
Real-time and advanced service logic Segmentation per Offer (Class of Service) Multiple Billing Items: Media Independent- Location, Time, Billing Number Media Related – Voice - Destination Address, CUG, Direction, … Event (MMS ) – Media [JPEG,MPEG], … Data – Destination URL/IP, Type of Application (FTP) Zone Based (Location, Switch, Cell) Time Related (Day of Week, Holidays and Special Days) Multi Currency Prepaid & Postpaid billing Friends & Family (Discounted Number) Six Digits Precision Incoming call bonus (kickback)
Reporting and revenue assuranceReporting: Web-based reporting using ‘Open Reports’ on a Microsoft SQL server Powerful and ﬂexible report designer No client installations: Web-based clients and admin management tools Support many output formats: PDF, HTML, EXCEL, CSV.Revenue Assurance: Real-time bad-debt management Wholesale reconciliation and settlement module Daily reconciliation of IN CDR with MNO MSC CDR Monthly reconciliation with the MNO wholesale invoiceEffortel systems are SOX-compliant: All ﬁnancial data (reloads, usage, payments, credit) are carefully logged in the TDR (transaction data record) Database and adequate reporting is deﬁned together with the customer.
Monitoring systemSIP based application to monitor all systems !
Service Level AgreementEffortel is providing extensive SLA coverage for its MVNE services.Effortels SLA main working principles:- Escalation lists and rules are established,- Full contact list is provided,- Roles and responsibilities of contact interfaces are deﬁned,- Service reporting is provided,- Service meetings are held regularly with a customer to present, align and monitor service levels,- Incident reports generated,- TTA, TTR and TTS timing set,- Downtimes measured and reported,- Compensation levels committed- up to 50% of credit on monthly variable fee.- Failure to achieve SLA levels for 3 consequitive months allows Customer to terminate the contract.
Response times, escalation timing and levelsResponse times according to priorityPriority TTR Service coverage TTA TTSPriority 1 <5 hours 24h/24h, 7 30 min 5 BDPriority 2 <10 hours BD 2 hours 10 BDPriority 3 < 5 BD BD 2 hours 30 BDEscalation timingPriority Escalation to Level 01 Escalation to Level 02 Escalation to Level 03Priority 1 1 hour 2 hours 3 hoursPriority 2 6 hours 12 hours 48 hoursPriority 3 4 BD 10 BD no escalationEscalation levelsPriority Effortel MobilyLevel 1 Laurent BatailleLevel 2 Liudvikas AndriulisLevel 3 Arkadi Panitch
Service Level Agreement KPIsManaged service Service Planned Downtime QoS excluding plannedCRM availability 24/7 24 hours per month downtime) 95%DMS system 24/7 36 hours per month 95%Self-Care site 24/7 36 hours per month 95%Voice Mail 24/7 6 hours, not during peak 95%Prepaid topup module 24/7 hours 6 hours, not during peak 99.3%Call Control 24/7 hours 6 hours, not during peak 99.5%Provisioning interface to 24/7 hours N/A 100%MNO to ActivateTime Business hours N/A 95% of successful activationsFailure to achieve SLA KPIs result in up to 50% reduction of monthly fees or, in case of constant failureto meet KPIs, contract termination.
Approach to change managementNew product and service changes will be managed through a well developed and time-tested ChangeManagement process.
Approach to change management(continued)New product and service changes will be managed through a well developed and time-tested ChangeManagement process.