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Keynote orange telmo_perez


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Keynote orange telmo_perez

  1. 1. Telecom Strategic Frameworkfor Home & Convergence Telmo Pérez Luaces VP Business Growth Home Line of Business
  2. 2. France Telecom / Orange is a leading telco operator, with notablepresence in Europe and AMEA Conquest 2015 Four Strategic pillars Our assets Our people • 169,000 employees worldwide, of which 39% frontline staff • 7,000 Orange branded shops1 Our networks • 217 million customers, operating in 35 countries (14m Broadband) Our • 45Bn € yearly revenues customers • world’s 7th telecoms brand2 world’ • global network service provider leading for 10 International years in a row3 development Data as of end June 2011 - 1) UK excluded, (2) source: Millward Brown, (3) source: Gartner 8- Connections Europe – Amsterdam, November 8-9th 2011 2
  3. 3. Our agendaForces shapingthe telco core Network technologiesbusiness 1 2P 3P Customers Market and Demand Fixed Voice Fixed BB Competition TV/VoD 4P+ Wireless Regulation 2 Convergence everywhere Core business Broadband everywhere (and VHBB) TV everywhere New markets: digital home 8- Connections Europe – Amsterdam, November 8-9th 2011 3
  4. 4. about cross- Convergence is speeding up across Europe. The initial stage about cross- selling while coming waves will focus on enriched services and experience experience Convergence battlefield is getting crowded 4P offers are proliferating across Europe coming from different origins 4P is generalizing % Indicative price discount .v.TELCO ALT/NETS INCUMBENTS through Europe full public prices of all included services On overall bill 20% 18% 10% using… using… Converged Own Growth Telco1 Telco2 Telco3 Offer Focus MVNOs/Wholesale Inorganic/Partners During Q4 2010, over 2% of For , high households have moved to the same operator for F & M Post- percentage of Mobile Post- Pay net adds were Ideo 4P offers in 2010 MEDIA / TV CABLECOS 2009 2010 Source: Orange analysis and operators published pricing 8- Connections Europe – Amsterdam, November 8-9th 2011 4
  5. 5. of Hunger for bandwidth increases especially on the proliferation of connected devices and quality TV/video needs (HD, 3D). However, take- VHBB take-off will take some time Current bandwidth needs by sort of customer FBB and VHBB forecast (Europe*, 2011-2016) *Aggregated Mn HDTV 56.5 58.1 3D 54.8 50.0 52.8 Digital 48.5 Home Gaming IPTV + Video calling % Casual Gaming + Online storage Several 6.2% 7.9% 10.0% 12.2% 14.7% 17.4% Advanced Connected Devices + Email internet Smartphones Tablet 2011 2012 2013 2014 2015 2016 Web surf Total FBB lines VHBB lines as a % of all FBB BASIC SOCIAL FULL ADVANCED MEDIA Different incumbents are delaying or revisiting the fibrerequired Speed 30- 30-35 roll-out plan announced in the past (ie. Telefónica, 4Mbps 12Mbps 20Mbps Mbps Belgacom) Source: Ovum, Screen Digest, Idate, Yankee, Pyramid, Dataxis, Analysis Mason 8- Connections Europe – Amsterdam, November 8-9th 2011 5
  6. 6. roll- It is crucial to have a holistic strategy of the network roll-out plans in order to serve the best experience in a profitable way Multiple technologies to fully provide BB in each country 50Mb 100Mb 400Mb 1GB Telco FTTH S VDSL vectoring A Cable DOCSIS 3.0 A Mobile LTE A current potential S->symetric A->asymetric 22MbpsFuture usages and proliferation of connected devices will increase increase download 2013- 2013-2015the need of bandwidth in the coming years, but not exponentially upload bandwidth 50Mbps Source: Arthur D. Little – BNP Exane, Booz&Co. 8- Connections Europe – Amsterdam, November 8-9th 2011 6
  7. 7. Most major market players are trying to expand along the valuechain on their own Observed value chain movements Differentiated strengths of Telcos Content Content Technical Technical Customer Marketing Device Production Aggregation Platform Distribution Relationship 1 Content players: Shift towards multiple licensing & own distribution Content providers/ FTA: Move on new platforms & development of new revenue models broadcasters PayTV (DTH, CATV): Development of unique programming & shift on new devices 2 Internet players Spreading out on new platforms & devices, focusing on better content aggregation 3 Telecoms: Utilization of network capabilities to provide enhanced TV services Distributors Cable: Increased focus on own packaging & OTT 4 Consumer IP enabling of devices and integration electronics of VAS manufacturers 8- Connections Europe – Amsterdam, November 8-9th 2011 7
  8. 8. Combining key trends and uncertainties, four Strategic Scenarios can be envisaged for the Digital Home of the futureAxis 1: Usages going- Many different battlefields going-on OS Telco convergenceNew activities, in evolving “iHome” iHome” “My World @Home” @Home” houses Devices and CE Service providers “Entertainment More, “Chaos @Home, the of the same in the Living Room” Room” battlefield of Giants” Giants” Concentrated Fragmented giant patchwork Axis 2: Ecosystem ecosystems of alliances According to the different trends currently perceived, we believe that market is moving up in the matrix… and believe matrix… likely the proliferation of the market (OS, standards, devices) are likely driving the ecosystem to a fragmented world, @Home” “My World @Home” 8- Connections Europe – Amsterdam, November 8-9th 2011 8
  9. 9. tryingIn order to take the lead in most of the segments, players are trying deliveringto cope with the roles of facilitators, integrating and delivering theservices Battlefield is now on the service provisioning, where the value lies on, with telcos at stake of being bypassed in a legitimated area Module / Reseller Smart Network Service System Service Modem (Bus. Object operator enabler integrator provider supply Cust.) Average Value Share Distribution 5 – 10% 15 – 20% 30 – 40% 15– 15– 20% 10– 10– 20% Telcos Manufacturers Module players System integrators and OTT players Source: Arthur D. Little 8- Connections Europe – Amsterdam, November 8-9th 2011 9
  10. 10. Markets will grow fast but the overall revenue slice will be still stillmodest within big telcos P&Ls. In any case, it is mandatory to pavepavethe way for the future The market for adjacent services in the Home is still nascent but growing fast Operator revenue distribution 2015 Orange Footprint, 2010-20 Illustrative € Bn +6% 3% of total revenue +6% 29% 35% +81% 7% 25% Fixed access Media content Nascent and adjacent consumption markets Mobile Fixed Online Business Verticals devices 2010 2015 Source: Orange analysis, Arthur D. Little 8- Connections Europe – Amsterdam, November 8-9th 2011 10
  11. 11. A European survey on home automation shows that consumer stand-prefers bundles versus stand-alone offers and that, although not themost preferred, telcos are among the top providers Stand alone or bundle ? Despite technical players are more legitimated in each area, telcos are very valued as integrators and are the 1 provider per most preferred just after the formers service Telcos’ presence on both boxes and M2M could be used to build up the ecosystem on top of individual players 1 Service provider Control over media devices could act as a first phase in the adoption of the services France UK Spain Poland Source: Orange analysis *Note : scope France, Germany, Italy, Spain, Poland, UK 8- Connections Europe – Amsterdam, November 8-9th 2011 11
  12. 12. Orange (and telcos in general) has the some good assets to lever Brand Customer Information Widely recognised and Access to unique customer trusted by more than 190m and behaviour information customers (identity, profile, address book…) Enables us to offer premium services and elicit customer Capacity to detect patterns trust with their data and develop profitable offers Trust to facilitate access to Our People & Customers Leverage customer innovative products and information as a new class services of personal asset Customer scale & billing relationship Present in over 30 countries Key differentiator against non telco players Diverse workforce and skill sets & knowledge Extensive physical Mobile & fixed assets across distribution (3000+ shops in Europe & Africa Europe) Spectrum, boxes, SIM, APIs Increasing online capabilities Technical control and device Our call centres support & service integration millions of customer capability interactions annually Network & Connectivity Local Physical Presence 8- Connections Europe – Amsterdam, November 8-9th 2011 12
  13. 13. We have considered eight revenue areas – existing or emerging – inthe Home (extended). Initiatives progress according to level ofmaturity Media & e-Health / Well-being Well- entertainment* e-Education & Home Tele-monitoring, working Content and Tele-consultation distribution Well-being products & Digitalization services of content and tutoring Home Automation M2M Integration and central control of home systems Digitalization (energy mngt, security, of content and tutoring lighting, motorization, …) Digital Home Smart cities Coaching Home support for Private data digital devices (e.g. IT management ICT integration at assistance) global city scale Private data storage and access Source: Orange analysis Note: *Current core markets for Orange Some initiatives 8- Connections Europe – Amsterdam, November 8-9th 2011 13
  14. 14. In parallel, we will push two key elements to us:1. Consumer: Digital Home Coaching Willingness to pay for Home tech support Tech support resources - 2010 FR survey - - 2010 FR survey - Among BB HHs Among those willing to buy support services 1st choice 2nd choice 3rd choice Family & Friends 30% 15% 14% 27% Web sites 16% 18% 12% 70% 3% BB supplier 13% 14% 13% CE retailer 7% 12% 13% Home computer manufacter 9% 11% 10% Up to € 100 Between € 100 and € 500 Nothing CE manufacter 7% 9% 10% Source: Park Associates 2010 8- Connections Europe – Amsterdam, November 8-9th 2011 14
  15. 15. In parallel, we will push two key elements to us:1. Consumer: Digital Home Coachingbecome the assistance and support provider of choice, differentiating from otherplayers without physical presence Telcos can leverage current contact points and theTelcos to better address the new customer needs customer’ capacity to reach the customer’s premise Installation Installation Ensure the quality of the Ensure the quality of the service since the first service since the first second second Call Centres Diagnosis Diagnosis Internet Fixed Web / Social Coach Coach Shops Media Drive Telco’ s Telco’’s Telco’ Telco Drive Telco customers into customers into support support services the potential of the potential of ecosystem ecosystem their services their services and devices and devices Mobile TV Assistance // Security Customer premises Assistance Security Support on the technical issues Support on the technical issues Protect customer data Protect customer data 8- Connections Europe – Amsterdam, November 8-9th 2011 15
  16. 16. In parallel, we will push two key elements to us: 2. B2B (and B2B2C): Alliances and partnerships are critical to both reach global scale and define standards, a game where telcos must leadOrange, DT and TeliaSonera agree to cooperate on Orange creating market via new M2M beyond standard roaming agreement in services through partnerships offering a new and unrivalled m2m experience North America Europe Africa, Middle East Veolia Water and Orange launch m2o city, a smart metering operator Veolia Water and Orange are joining forces in the smart metering sector and are launching m2o city, an operator specialized in remote environmental data and water meter reading services. Orange – Veolia Eau press release, 28th March 2011 Common FT&DT&TS footprint for M2M Service Roaming services with enhanced service quality From Stephan Richard Chairman France Incident and troubleshooting capacity (shorter repair times) Telecom Module certification across both networks Investor’s Day 31/05/2011 Getting customers to market faster, simpler and reliably driver Digital Home services and Smart ecosystems are a fundamental driver for new business and efficiency Digital Home is still very immature – no dominant position exist Mass- partnerships Mass-market application of future Smart ecosystems driven through partnerships 8- Connections Europe – Amsterdam, November 8-9th 2011 16
  17. 17. Questions and answers 8- Connections Europe – Amsterdam, November 8-9th 2011 17
  18. 18. Thank You STRICTLY CONFIDENTIAL 18