Analyst & Journalist Meeting Tele2 2013

4,933 views
4,690 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
4,933
On SlideShare
0
From Embeds
0
Number of Embeds
1,217
Actions
Shares
0
Downloads
124
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Analyst & Journalist Meeting Tele2 2013

  1. 1. 1 INTRODUCTION Lars Torstensson
  2. 2. 2 At what price are you going to sell 4G? When are you going to launch? But is he going to tell me something I don’t know?
  3. 3. 3 WELCOME Mats Granryd
  4. 4. 4 Market presence and offered products Sweden Full product suite Norway Full product suite Estonia Mobile, Fixed telephony Latvia Mobile Lithuania Mobile Netherlands Full product suite Austria Fixed broadband, Fixed telephony Croatia Mobile Kazakhstan Mobile Germany Mobile, Fixed broadband & telephony
  5. 5. 5 Net sales per market and segment Share of net sales per market H1 2013 Net sales by market and segment H1 2013 SEK Million  Majority of net sales originates from Sweden, Norway and the Netherlands  Remaining markets contribute no less than 25% of net sales  Mobile is the largest product area in terms of net sales, representing 70.8% of total net sales Sweden Netherlands Norway Austria Croatia Lithuania Latvia Kazakhstan Germany Estonia Other 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Mobile Fixed broadband Fixed telephony Other operations
  6. 6. 6 Benefitting from a mobile evolution Demand growth – European mobile data usage Tele2 Sweden - Mb/week 3G 4G 2G Jun-11 Jun-12Jan-12 Jan-13 MB Jun-13 Strong spectrum portfolio  Tele2 is a leading infrastructure- based challenger with attractive offers  Tele2 is uniquely positioned to capitalise on mobile data and internet growth
  7. 7. 7 Netherlands Other Netherlands Other The Netherlands are of high importance from a Tele2 Group perspective… Netherlands share of Net Sales H1 2013 Netherlands share of EBITDA H1 2013 18.1% 21.2% ...and the importance will grow over the coming years
  8. 8. 8 MARKET OVERVIEW Bob Bunnik
  9. 9. 9 NL is a concentrated and competitive market: 4 out of 5 players have a converged strategy Market: Consolidation Cable: ‘mobility’ through WiFi, plus MVNO+limited own-roll-out Full-MVNO on TMNL, transition to MNO M&A FttH players ‘Quad Play’ ‘Convergence Strategy’ Fixed broadband Mobile (3 MNOs & their main brands)
  10. 10. 10 Convergence from a customer perspective Fixed and mobile are converging, providing seamless access on any device and network. Partnerships are key to enhance the value proposition for both consumer and business. Services DevicesAccess Residential: ‘Packaging’ convergence Business: Real technical convergence True Convergence is about providing seamless access and convenience (‘one-stop-shop’)
  11. 11. 11 Mobile market price levels: NL vs. EU • The Netherlands mobile market behaves as a protected market with very high price levels. “774% difference in Phone call prices across the EU” “Up to 100x difference In Data-only tariff volume allowances in EU27” EU Mobile Data price comparison EU Mobile Voice price comparison Sources: REWHEEL (2013), EU27 Mobile Data Cost Competitiveness Report and EU Digital Agenda Scorecard 2012 (Aug. 2013) Average cost per minute (€ cents) in mobile communications, 2011
  12. 12. 12 Mobile market: 4G positioned as premium The Dutch market is moving towards flat-fee Voice & SMS but still with high price levels. VodafoneKPN
  13. 13. 13 Mobile market shares and value Stable market share development, growth within mobile data Revenue Market Shares 2005-2012 (x%) NL Mobile Service Revenue’s 2012-2017 (mEUR) Sources: Tele2 research and TelecomPaper Q2-2013 3503 3230 2990 2812 2647 2490 2294 2230 2288 2377 2493 2626 0 1000 2000 3000 4000 5000 6000 7000 2012 2013 2014 2015 2016 2017 Voice Non-Voice 0 10 20 30 40 50 60 KPN T-Mobile Vodafone
  14. 14. 14 A 4G-centric mobile operator could capture most value at lowest cost. Mobile handset market development 35% SIM-only May 2013, up from 26% May 2012 NL: 66% Very high smartphone penetration in the Netherlands SIM-only sales continuous to increase Source: Comscore Data Gem
  15. 15. 15 The addressable market for DSL is declining with clear growth in fiber A technology shift in fixed broadband 2007 2008 2009 2010 2011 2012 2013 2014 2015 Internet Internet VoIP Internet (VoIP) TV Internet (VoIP/ Mobile) TV Internet (Mobile) OTT-TV xDSL FttH 2016 45% 45% 45% 45% 44% 43% 7% 10% 13% 17% 20% 23% 48% 45% 42% 39% 36% 34% 2012 2013 2014 2015 2016 2017 Cable FttH DSL Bandwidth demand pushed by TV & Video Fixed Broadband penetration: a technology shift Sources: TelecomPaper (Q2-2013), Dutch Broadband
  16. 16. 16 Fixed business services shift to mobile & IP Digital leased lines IP VPN Ethernet services Internet access IP voice Traditional fixed voice 2015 100% 2% 19% 13% 20% 21% 25% 2010 100% 5% 19% 6% 21% 8% 41% Fixed services Mobile services 2015 5.249 mEUR 45% 55% 2010 5.268 mEUR 54% 46% Business market value is also shifting to mobile and ‘All-IP’. FttO regulation more favorable for alternative operators. Dutch enterprise telecom services Fixed Services Revenue split Sources: Tele2; Gartner, 2011; IDC, 2011; Cap Gemini Consulting analysis
  17. 17. 17  Cloud/Hosted PBX is growing  Fixed and Mobile are integrating  Security is of increased importance Increasing ICT complexity  Decline in Voice usage  Anywhere, anytime access on any device  Fixed and Mobile convergence ‘Consumerisation’: from ‘investing’ to ‘using’ (Cloud) Key trends in the business segment Business market converges into ‘ICT’ business with increased attention for security. Trends affecting the LE marketTrends affecting the SME market
  18. 18. 18 Key take-away: Significant growth potential in mobile Seamless fixed-mobile operators will be able to capture market value: 4G and fiber will be pivotal. Residential growth in Mobile Data & Fixed Broadband on Fiber B2B growth in Hosted Voice and Mobile, Fiber to the office increasingly important
  19. 19. 19 Q&A PART 1 Bob Bunnik
  20. 20. 20 THE NEW TELCO Günther Vogelpoel
  21. 21. 21 Our Strategic Stronghold Tele2isuniquelypositionedintheDutchmarketwithownfiberaccessand4G. Fiber to the Home FIBER BACKBONE Fiber to the Office Fiber to the X Fiber to the SitexDSL LTE Radio Network Residential WholesaleB2B Residential, B2B & Wholesale
  22. 22. 22 Tele2 the new Telco – 4G only 2G & 3G & 4G 4G
  23. 23. 23 Data is the future Total Data Revenue NL 2012 – 2017 (x mEUR) Source: Telecompaper 2000 2100 2200 2300 2400 2500 2600 2700 2013 2014 2015 2016 2017 Providecustomerswithpropositionsthatmakesiteasytousedata
  24. 24. 24 Transition is the name of the game  Mobile: transition from MVNO to 4G MNO  Broadband: transition from copper (DSL) to Fiber Our ambition: growth Converged Player Mobile residential* >20% Broadband residential* >15% Business* >10% * Market share
  25. 25. 25 Strong Sales with MVNO Growth Tele2 base YoY -160 -110 -60 -10 40 90 Q112 Q212 Q312 Q412 Q113 Q213 Tele2 KPN Vodaphone T-Mobile Source: Telecompaper Customer Net Additions (x1000) Tele2 is the only company that has shown continuous growth in the last 6 quarters. 0 100 200 300 400 500 600 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Thousands
  26. 26. 26 Transition to MNO Smart distribution Success of smartmix proposition continues New brand position 4G ready & 4G experience Tele2 has a unique beneficial position to be competitive on mobile and fixed broadband.
  27. 27. 27 Passive NWS Agreement with TMNL MNO progressing well Off load data to 4G network Secured new MVNO deal Selected vendors New brand platform Grow in MVNO Smart distribution
  28. 28. 28 Declining Tele2 base, preparation for transition to high speed broadband Broadband development Tele2 base 0% 5% 10% 15% 20% 25% 30% Q2-12 Q3-12 Q4-13 Q1-13 Q2-13 Ziggo KPN DSL UPC Others KPN DSL KPN Fiber Tele2 Tele2 Consumer Broadband market share Incumbent aggressively attacks Cable. FttH fastest grower Bring fixed broadband back to growth - 50 100 150 200 250 300 350 400 450 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Thousands Total base DSL Source: Tele2 Research & Telecompaper
  29. 29. 29 The addressable market increases to 70 % in 2015  Tele2 FttH last mile via KPN with regulated prices High speed broadband coverage growing Source: Tele2 Research 15% 15% 13% 57% 2013 15% 33% 19% 33% VDSL Tele2 VDSLKPN FttH Unreachable 15% 50% 25% 10% The addressable market increases to 45% in 2014  Wholesale KPN VDSL access with Tele2 services Adding VDSL (off-net by KPN) Adding on-net FttH Addressable market >30MB
  30. 30. 30 Why will we be successful? Synergy 4G network and FttH FttH rollout momentum Customer demand higher speeds Capture value in converged services Leveraging on existing customer base Own fiber backbone Tele2 has a unique beneficial position to be competitive on mobile and fixed broadband.
  31. 31. 31 MNO ROLLOUT Joachim Horn
  32. 32. 32  Spectrum availability  Targeted quality and performance  Expected traffic  Population density, distribution and migration pattern  Topography  Type of buildings Key criteria for designing coverage
  33. 33. 33 SWE NL Total surface (km2) 450,300 41,540 Non water or forest 28.5% 72.4% Population 9,5 M 16,7 M Population per km2 non forest / water** 73.6 555.0 Demography and geography impacts coverage 50%100% Sweden Netherlands Populationcoverage* 30% Sites 15% *Approximate Source: WorldBank.org 2011 **Assuming no inhabitants in forest or water areas
  34. 34. 34 Signalstrength Distance [km] 800MHz 2600MHz Tele2 has a very powerful spectrum position… Penetrationloss Wall 8002.6 8002.6 Coverage Km2 OutdoorIndoor Signal loss when covering indoor 10 MHz in 800 MHz Ideal for coverage 20 MHz in 2.6 GHz Ideal for capacity Difference indoor/outdoor … enabling a competitive and cost efficient rollout
  35. 35. 35 0% 25% 50% 75% 100% Time Network planning done, site sharing deal signed, suppliers chosen and rollout started  Approx. 3,500 sites for initial rollout  Priority to achieve full coverage  Competitive capacity, speed and quality  First sites being finalized * Approximate Population coverage over time*
  36. 36. 36 Leveraging synergies with our backbone and FttH LTE POP Consumer Small business Microwave = Tele2 infrastructure = Rented from Reggefiber
  37. 37. 37 Principles of site sharing with T-Mobile NL RRH* Antenna T-Mobile base station Tele2 base station Backhaul Tele2 core network T-Mobile core network 2G 3G 4G 4G X X X  Passive sharing of infrastructure and antennas  Sharing of backhaul, power and field services is optional  Majority of sites will be shared with T-Mobile, first sites available soon *RRH = Remote Radio Head
  38. 38. 38 RAN Core IMS/Voice over LTE platform Network procurement done  Mainly price  Similar quality and capabilities of different vendors  Vendor capabilities  Vendor experience  Existing references  Vendor experience  Vendor flexibility Equipment Vendor Main decision criteria
  39. 39. 39 SE 2003 SE 2008 SE 2013 SE share 2013 NL 2013 Sweden reference Rollout versus license investments NL MEUR 161172 License Network rollout MEUR CAPEX for initial rollout* Comparison radio equipment cost MEUR Costpersite • Competitive equipment prices keep investments low *Approx. 3,500 sites
  40. 40. 40 LTE supports carrier grade VoIP, i.e. Voice over LTE  First carrier grade voice over IP-solution in mobile  Future proof “Over-The-Top” competitive service  Generally available from beginning of 2014 (standardization, chipsets)  Dec. 2012: Tele2 first live VoLTE trial in EU • Tele2 targets to offer VoLTE early
  41. 41. 41 VoLTE brings substantial benefits Better sound Less delay Up to 6x faster establishment times Spectral efficiency No national roaming costs
  42. 42. 42 Preparing Tele2’s customer base for LTE US and Asian operators to launch VoLTE within next 12-18 months 0% 10% 20% 30% 40% 50% 60% Top tier handsets likely to support VoLTE from 2014 Potential upgrade of existing LTE handsets with VoLTE LTE enabled handsets sold by Tele2 NL Jul 2012 Jul 2013 • More than 50% of handsets sold in July 2014 are already LTE enabled
  43. 43. 43 How we will ensure quality Full LTE coverage with best in class ambition National Roaming Agreement  Building our own network based on newest technology without legacy  Ambition to achieve a full LTE coverage as soon as possible  Keep our customers in the Tele2 network throughout the country  Quality design is based on KPI:s which beats best in class in Sweden  Seamless coverage experience for Tele2 customers (2G and 3G)  Similar setups working very well in Tele2 Norway and Croatia  Proven CSFB* technology to deliver voice (2G and 3G) to 4G customers  Tele2 was the first operator in Europe to launch CSFB (2011) *CSFB = Circuit Switch Fallback
  44. 44. 44 Tele2 will have a very competitive IT landscape New IT architecture  Ahead of the pack – legacy free  Flexible best of breed system, fully agile approach  All current and future business needs, fixed and mobile Customer benefits  Transparent and clear communication to the customers  Online focus: My Tele2, customer portals and apps  Real-time information for consumption and charging • Architecture defined, suppliers chosen and development started
  45. 45. 45 Key take-aways  In control for best customer experience  Building our own network  Implementing a competitive IT landscape  All legacy free  Planning done, suppliers chosen, implementation started  Initial rollout of 3,500 sites, most of which are shared  Supporting business success with competitive cost position  Working on early launch of VoLTE for true 4G experience
  46. 46. 46 Q&APART 2 Günther Vogelpoel Joachim Horn
  47. 47. 47 B2B OPERATION Fedor Hoevenaars
  48. 48. 48 B2B has a clear # 2 position in fixed services Strong customer base Broad service spectrum Own infrastructure ATM’S TRAINS SCHOOLS & UNIVERSITIES HEALTHCARECASINO’S  One of the largest fiber optic networks  Total length 5,213 km  Access to 55 radio nodes
  49. 49. 49 Incumbent is dominant in B2B 58% 16% 5% 4% 16% Business Market Share: Fixed Voice Connections 58% 13% 4% 4% 8% 6% 7% Business Market Share: IP-VPN Connections Tele2 is the only full-service alternative Sources: OPTA Structural Market Monitor Q1 2013 58% 13% 4% 4% 8% 6% 7% BusinessMarketShare: IP-VPNConnections KPN Tele2 UPC Ziggo Vodafone Eurofiber Other
  50. 50. 50 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Mobile Fixed Mobile drives B2B revenue development Overall strong revenue growth in B2B driven by mobile, where fixed remains important  B2B Mobile growth taking of in 2015 when network reached full coverage and quality  Overall revenue growth from all segments: SME and Enterprise  Continued decline in fixed voice MoU and traditional voice service being replaced by Hosted Voice.  Our strength in Data (VPN/Internet) remains highly important for the future *Not based on actual figures
  51. 51. 51 3% 4% 6% 9% 11% 37% 39% 47% 67% 0% 20% 40% 60% 80% Other Supported new ways of working Don't know 4G hasn't benefited my business Improved customer satisfaction Increased employee well-being / motivation Won more business Cust costs Increased productivity Relevance of 4G in B2B 4G is a perfect complement to our Fixed business ‘How can LTE improve the processes we already have?’ ‘What’s totally new?’ Source: Arthur D. Little Analysis
  52. 52. 52 Corporate SME SOHO Full service provider, serving all segments Direct: Account Management Indirect: Partners and Telesales Online and Retail Sales channel expansion in SME is part of our growth strategy in B2B
  53. 53. 53 Transition to integrated services Convergence is creating momentum By adding mobile to our portfolio the addressable market is doubled  Cloud/Hosted PBX is growing  Fixed and Mobile are integrating  Anywhere, anytime access on any device  Security is of increased importance Increasing ICT complexity We rather partner than invent ourselves Tele2 Fixed & Mobile Customer Centricity Collaboration Business Continuity Cost Control 4 themes lead our proposition development and partner selection
  54. 54. 54 Large bank Corporate SME Wholesale Our B2B strategy proves to be successfulCustomersPartners
  55. 55. 55 Tele2 Fixed Mobile Convergence Customer Centricity Collaboration Business Continuity Cost ControlWith 4G capabilities Tele2 is able to address the entire business market SMECorporate Wholesale SOHO Take away: converged connectivity is opening the market
  56. 56. 56 Conclusions >20% >10% Back to growth & benefit from synergy Continue growth & build 4G Maintain fixed & grow mobile >15%
  57. 57. 57 Q&A PART 3 Fedor Hoevenaars

×