Broadband Opportunities and Challenges


Published on

Khawla Al Jaber, Broadband Business Advisor at the Zain Group discusses the possibility of service provider competition in the communications sector in Middle East and North Africa

Published in: Business, Technology
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Broadband Opportunities and Challenges

  1. 1. Broadband Opportunities and Challenges May,5th 2009
  2. 2. Agenda 1. Broadband opportunity 2. Operator SWOT 3. Make the right choice 4. Industry vs. Regulatory evolution 2 | Zain © |
  3. 3. How to turn Broadband opportunity into reality? What is Broadband ? Facts about Broadband  It is a matter of usage: Internet and freedom  It is a matter of end-device: PC Broadband is clearly set apart from Mobile data  It is a matter of speed: high speed Broadband starts at a speed considered by the customer as a high speed for him Don’t miss Broadband market and make the most of it Act now! Hit the target! Make the right choice!  Assess the threat from  There are 2 distinct Value  There is no unique answer to competition to decide how fast Propositions: 3G versus Wimax debate to move in each country  Shared usage at Home/Office  Acquiring an ISP actor with  Nomadic Broadband used fixed assets can be a good anywhere and personal alternative  Define the strategic objectives  The untapped segments offer pursued with Broadband  Comprehensive B-Case to  Aggressive strategy to grasp the substantial revenues but support a cost-wise investment boom of the market or defensive, requires tailored services  High shared B/W  SLA
  4. 4. Mobile operators assets vs. BB as a specific business Strengths Weaknesses  Large customer base  Network upgrade and coverage reinforcement required to offer  Perceived as more dynamic and Broadband introduces disruption broadband reliable  Mainly prepaid customers not  Broadband should be considered  Developed synergies with mobile as brand new activity by a mobile always appropriate for broadband activity (procurement, network, operator, raising challenges service staff…)  Relationship with individuals, as  New customers: Family vs  Natural association between mobile Individuals opposed to household brand and home environment (as mobile phone is already used at  New B-model different from home) voice  New technology or at least new  Complete telecom portfolio  Regulation more likely to favour network dimensioning mobile competition than broadband  Make profit from broadband  New skills up-take in the short term revenues with a know-how on telecom economics  Competitiveness and  New Business Unit to articulate sustainability versus fixed with Mobile one  Capitalize on mobile assets: offerings such as DSL, fiber, FWA distribution, brand, customer care…  New priority with potential  Presence of integrated operators arbitrations: roadmap, ATL,  Develop cross-sales and loyalty sales force management… and potential new entrant players programs on the market Opportunities Threats
  5. 5. Make the right choice! among available technology options to take up Broadband challenges Technology Market drivers Technical implications differentiator Broadband challenges With increasing usage, customers Every network component has to be look for high allowances properly dimensioned Cost structure Unlimited ability to support offers Unlimited offers are the ultimate Radio, backhaul, backbone and heavy data traffic proposition in mature markets International bandwidth The choice has to be future proof to Customers buy higher and higher stay in the competition Maximal speed Race for speeds per user, actually With possible up-grade (e.g.3G/LTE) speed Even if they don’t really perceive available & the extra-benefits Versus disruptive scenarios (e.g. advertised fiber up-take) Some technologies (Wimax) SME segment requires SLA and integrate the SLA feature, other SLA feature Bandwidth high QoS don’t (3G) to address SME guarantee Without these guarantees, B2B In addition, SLA encompasses a segment market potential is restricted network end-to-end commitment
  6. 6. Make the right choice! and achieve the optimum ROI through an in-depth Business-Case Competitive landscape Market potential Technology options Offer Price Leader Player C Player B Price point 1 2G (or EDGE) Challenger Price point 2 3G license owned Player A Number of 3G or WiMAX customers WiMAX in deployment Mobile Convergent Fixed  Level of threat?  Size of the addressable base?  Zain assets?  Competitors potential moves?  Which segments to target?  License availability?  Zain targeted position?  Potential market share?  Possible partners or acquisitions?  Which offerings on the market?  Expected ARPU?  Zain skills/capabilities? A comprehensible B-Case will define the optimal target/offer/techno scenario  Technology choices and investments are driven by marketing requirements  Offering needed features depend on the customers expectations  Targeted segments vary in relation with Zain ambitioned position on the market versus competition
  7. 7. Industry Development vs. Regulatory Evolution •In general (not just in MENA), regulation lags significantly behind industry developments • Regulation is fragmented and compartmentalized; rarely converged or integrated • The number of converged regulators is still very limited •Convergence is dismantling boundaries and challenging regulators
  8. 8. Khawla Al-Jaber Strategy and Support Director Group Networks Thank you 8 | Zain © |