Gambardella 06.12.11


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Gambardella 06.12.11

  1. 1. Telecoms Loyalty and Churn:How to retain customers in today’scompetitive and convergentmarkets December 6, 2011 Moscow
  2. 2. About ETNOETNO’s 40 full members and 10 observers from Europe andbeyond represent world leading telecoms operators and ICTmanufacturing providers.ETNO members and observers account for an overall turnover of€600 billion and 1.6 million employees.Through their investment and innovation efforts, ETNO membersand observers directly contribute to bringing the benefits ofbroadband to all, thereby achieving the goals of the DigitalAgenda for Europe.
  3. 3. ETNO ObjectivesPromote its members’ common interests by developing ETNOpositions and communicating them to European Union policymakersContribute to the development of a transparent and faircommercial and regulatory environment for the Europeantelecommunications market and for its members when operatingoutside EuropeFacilitate cooperation and coordination of activities betweenMembers
  4. 4. ETNO membership Full Members • European entities offering electronic communications networks Observer Members • E-communications networks and service providers from outside Europe • ICT equipment manufacturers ETNO members participate in ETNO 14 technical working groups and contribute to define joint European positions. ETNO members benefit from full insight into EU policy and regulatory developments. ETNO provides its members with a platform for exchange and cooperation among industry players.
  5. 5. ** T-Group companies who are members of ETNO: Deutsche Telekom, Hrvastki Telekom, Magyar Telekom, MakedonskiTelekom and Slovak Telekom,
  6. 6. ETNO observers
  7. 7. ETNO on the International scene Cooperation Agreements with SAMENA Telecommunications Council (South Asia, Middle East and North African association) and US Telecom. Future cooperation with Latin American operators. Regular information exchange and joint statements on regulatory and policy issues of common interest. Joint meetings and events (ETNO/SAMENA first CEO Meeting, Istanbul June 2011, ETNO Forum in Washington November 2011). Sector member of the ITU.
  8. 8. Telecoms Loyalty and Churn:EU Telco’s strategies Commitment to enhance Quality of services for both fixed and mobile services Strengthen the customers’ relationship through ancillary services: security, protection of data, customer care, online alternative dispute resolution mechanism Offering new type of services that combine services that were before separated: triple play packages combining voice, data tv and bundle offers delivered with better prices for consumers. Better care for new customers: children protection, safer internet, services to disabled and elderly. Differentiated mobile and fixed data offers tailored to needs
  9. 9. Customer retention:The European ContextStrong competitive pressure at retail levelEx-ante regulation at wholesale levelIncreased network and platform convergence/ Fixed and mobilesubstitutionNet Neutrality debate: threat to innovative business models andcustomer offers?
  10. 10. Changing landscape:
  11. 11. Changing landscape:Consumers are driving
  12. 12. Commercial trends: continued internet traffic growth and fall in out of bundle revenues Global Consumer Internet TrafficMarket trends observed in the Netherlands 70000 KPN: Use of instant messaging apps and other 60000 ‘over the top’-applications leads to declining SMS traffic; lower out of bundle revenues 10797 50000 Commercial strategies of MNOs include attempt to increase billed ARPU via monthly fees 40000 8375 P B /m o n thCisco VNI finds continued data growth 30000 6523 33620 Internet traffic will increase fourfold over next 5054 24357 5 years. Overall, IP traffic will grow at a compound 20000 17583 annual growth rate of 32 percent 2010 - 2015. 3771 12146 2888 8079 Traffic from wireless devices will exceed traffic 10000 4672 13797 from wired devices by 2015 4968 6017 7277 8867 11040 0 2010 2011 2012 2013 2014 2015 File Sharing Internet Video Other
  13. 13. Rapid traffic increase contrasts with declining revenuefor EU telecoms sector First EU digital Scoreboard*: Negative revenue growth driven by decline in fixed and mobile revenue Decline in revenue linked to structural adjustments in the sector Disconnect between network revenues and revenues from OTT applications Investment in mobile and fixed equipment no longer increasing 2008 2009*Digital Agenda Scoreboard Report, SEC(2011) 708
  14. 14. Managed services and quality of service classes promoteinnovation and consumer choice Commercial service differentiation e.g. regarding to quality is a reality in the internet today; emergence of new models should not be restricted ex-ante Network innovation and quality of service (QoS) increase efficiency of the network and enable new services over broadband. New commercial models on two-sided markets can open up possibilities for new services and attract new customers to internet-based services Europe should promote open and interoperable standards for IP-based Interconnection at specified quality of service QoS Interconnection alongside public internet (e.g. IPX-based) and QoS classes alongside best effort services in the public internet Safeguards against anti-competitive behaviour: Competition on retail broadband markets (infrastructure or service-based) Increased end-user transparency Continued availability of best effort internet Competition law tools
  15. 15. More information… #ETNOAssociation