Future Networks : The New Age for MobileMobistar – Jean-Marc Harion, Mobistar, DigiWorld Summit 2014

1. The New Age for MobileMobistar–Jean-Marc Harion

3. New Age for Mobile
•Mobile everywhere: where we are going to
•Mobile in Belgium: what happened
•Mobistartransformation: where we are
•Conclusion

4. we all:
•want to beconnected anytime
•use personal devicesat work
•use social networksat work
•work at home
•watch video more on computer than on TV
more and more individualistic telecoms and TV users
telecoms behaviors evolve faster and faster

5. Moore is still right

6. everything is connected to everything

7. 60% of consumers will have Tablets + Smartphones by 2022
Source: Informa, Orange M&M’s, 2013
4G + fosters the emergence of smart devices
4G users grow by 20% YoY

8. more and more communication value captured by
OTT, OEM and cablecos
Source: BCG, 2013, Report for ETNO
European Market capitalizations, Bn€
49%
60%
66%
72%
82%
29%
23%
19%
15%
13% 16% 10% 12%
2%
2008
446
5%
2012
609
2011
567
3%
2010
568 593
2009
Telco
OEM
Cable
OTT

9. New Age for Mobile
•Mobile everywhere: where we are going to
•Mobile in Belgium: what happened
•Mobistartransformation: where we are
•Conclusion

10. Mobistar EBITDA cut by 124 M€in 4 yearsdue to regulatory and operational tax pressure
EBITDA impact in Euro
-54
-89
-125
-178
-124

11. commitment period on mobile contracts
cancelled by 2012 telecom law
 Mobile termination, roaming
 New telco law impacting mobile
contract duration
 Processes designed by
incumbents
 No impact from new telco law
Mobile prices in 5 years:
-50%
Fixed prices in 5 years:
+8% on voice, +25% on TV

12. a market situation unique in Europe that required a more balanced regulatory approach
Source: BIPT; January 2014 –Mobile and 3-play medium offers
Mobile prices amongst cheapestin Europe
Fixed triple prices amongst most expensive in Europe
40+ mobile operators
Fixed regional duopolies

13. New Age for Mobile
•Mobile everywhere: where we are going to
•Mobile in Belgium: what happened
•Mobistartransformation: where we are
•Conclusion

14. Best mobile network
(and best-in-breed fixed)
Mobistar wants to be the leading connectivity provider in Belgium
Devices choice and services
Open Content and Apps
Wallets, Stores and APIs
16

15. the overall quality of network remains a key
element of differentiation and retention
Criteria of loyalty to operator brand (NPS)
loyalty program 5%
initial purchase 7%
devices/products in catalog 7%
invoicing and payment 7%
customer account management 8%
customer service 9%
price package 10%
regular communication 11%
value for money 16%
network performance 20%
customer service
marketing
offer
network
Source: Ericsson Mobility Report June 2013 (Ericsson Consumer Lab; base: 9,040 smartphone users in 9 countries), BCG

16. Mobistar cut costs and dividends
to invest in network
Network investments
(in million euros)
70
41
29
49
26
23
43%
13Q1 13Q2 13H1 14Q1 14Q2 14H1

17. Mobistar used 4G as a game changer
4Gindoor coverage
=
2G indoor coverage
Nov 13
4G Discovery:
MobistarCustomers
experiencing 4G on smartphones
and tablets
March 14
End 15
4GCommercial launch: Fastest network in Belgium
April 14
4GRoaming
in France Spain
Luxemburg
UK
Panther 60 including 4G roaming
4G + in Mechelen
Speed up to 213 Mbps
May 14
4G99%
coverage in Brussels
May 14
4G@BXL

18. we now operate the best 4G network in Belgium
340KMobistar4G customers
35% users think 4G Internet is better than @home
#1
4G outdoor
Coverage (85%)
4G
22% of national traffic in 4G
#1
indoor
Coverage (53%)

19. our customers’ mobile usages keep increasing in
all services, data first, thanks to abundance
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Q2
2014
Q2
2012
Voice SMS Data
AUPU/month (in & out traffic)

20. Mobile Operator Billing
Mobile Cloud
1stin Belgium
1stin Belgium on IOS, Android, Windows 8
Mobistar innovates to improve mobile experience

21. Mobistar capitalizes on its leadership in M2M and IoT to create open mobile ecosystems
70% market share in Belgium
833 000 M2M SIM cards, +30% vs. 2013
A large variety of verticals
thanks to an open ecosystems of international partners

22. Best Mobile Network
with Shape, we give all employees abundance to support IT mobility
Mobile Voice for all
Mobile Data for all
Applications
Tablets
MDM
MDM
MEAP
BYOD
Cloud

23. 4G opens new territories to mobile

24. Mobistar innovates to substitute mobile to fix
In buses, tramways…
… and taxis

25. Mobistar innovates to substitute mobile to fix
For students…
… and for businesses…

26. New Age for Mobile
•Mobile everywhere: where we are going to
•Mobile in Belgium: what happened
•Mobistartransformation: where we are
•Conclusion

27. Mobistar to connect 1stcable users in 2014
2010
Draft
decision
07/2011
Market
analysis
decision
09/2013
Technicalreferenceoffer decision
12/2013
Wholesalepricing
decision
01/2014
MobistarLetter of
intent
07/2014
Testsstarted
12/2014
1stusersconnected
12 november2015
Brussels Appeal Court rejected officially Telenet’sappeal against cable regulation: last roadblock finally removed.

28. Mobistar cable: a game changer in Belgium
Ultra fast
Internet
a simple “plug and play” customer experience

29. Mobistar: best broadband everywhere
Ultra fast
Internet

30. Dank U MerciThank you