2. Can you believe that it’s the French who get it right? Almost all Marketing & Product Management of Telco Services is Wrong Rudolf van der Berg Logica Management Consulting Rudolf.van.der.berg@logica.com +31 6 13414512 http://internetthought.blogspot.com

3. Outline Telcos fail at marketing because they are schizophrenic about their role. They are connection providers, not Google All of them offer the same services with no innovation Free.fr has accepted it’s telco role. It has1 triple play offer for 30 euro, but with scores of services you can’t get elsewhere This offer together with operational excellence has transformed the French market Pigs will fly before most incumbents apply this, but challengers should seriously evaluate this model

4. Marketing isthe activity, set of institutions, and processes for creating, communicating,delivering, and exchangingofferings that have value for customers, clients, partners, and society at large. (American Marketing association)

5. Telcos are dissatisfied with being a utility Where they want to be Where they are

6. Telcos want to offer value, but differently They see no value being They invest in being

8. Every telco offers the same double, triple, quad play

9. It’s all internet, telephony and TV (with HD)

10. There are 80 options in this screen and behind the tabs

11. Telco innovation now is slicing and dicing differently

13. It has 1 offer: Everything for 30 euro

14. Cool features

15. The Philosophy Offer the best product in the market. Deny competitors competition on price or bandwidth. Prevent Churn Services don’t need to add to ARPU, but to make Free more attractive.  No fake projected take-up + profits From €30 subtract line-rental, tax, capex, opex and profit, remainder finances new services. Keep the back-office (provisioning, billing) simple (1 offer) Introduce something new regularly

16. How can you copy Free Accept that you work for a telco and not Google or in Media Think up all the cool things you want to do with mobile, fixed, wifi, television, telephony etc. Simplify your provisioning and billing to one product (with some top ups) Start building. Listen to your customers. Improve every time Work 10 years

17. Bonus: Are they successful?

18. Bonus: TV-Perso Broadcast yourself All you need is a camcorder (or any other S-video device) connect it to the Freebox and it sends it out to other Free.Fr users. Like Youtube, but can do live broadcasts

19. Bonus: operational excellence Design own hardware: DSLAM, Freebox modem, In-House Powerline communication (FreePlug) Design own software: Freeplayer (TV on PC), Freebox Low headcount: 1000 staff and 850 call center Hardly any Sales or Marketing people (their customers call themselves Freenauts and are the best sales and marketing)

20. Rudolf van der Berg Logica Management Consulting Rudolf.van.der.berg@logica.com +31 6 13414512 http://internetthought.blogspot.com