Transcript No Slide Title

INSTITUTO SUPERIOR TÉCNICO
M. Sc in Engineering and Management of Technology
Pedro Pinheiro
TMN
October 19th, 2001
www.myTMN.pt
Agenda
1. The Mobile Business of Group Portugal Telecom
2. Mobile Telecommunications in Portugal: a
market near saturation
3. TMN’s strategy for the new economy: myTMN
4. Challenges to mobile operators imposed by the
new economy
www.myTMN.pt
PT Móveis
9,6 million clients (1H2001)
Móveis
CRT Celular
100%
Portugal
41,2%
Brasil
83%
7,3%
Brasil
Brasil
30,5%
66,4%
Marrocos
Botswana
Sao Paulo
Paraná e
Santa Catarina
#1
#1
#2
#1
#2
#1
Market share
Market share
Market share
Market share
Market share
Market share
50%
64%
29%
76%
33%
65%
Rio Grande
Do Sul
www.myTMN.pt
Clear Leadership in Portugal
TMN
Market leader in Portugal
Clients: 3.5 Million (October 2001)
Market share: 49% (Source: Marktest)
Mimo: Pre-paid card with the highest brand awareness
Best Company of the Year 1998, 1999, 2000 (Diários de Notícias)
9th in the Best Companies to Work For 2000 (Exame)
(highest ranking among Portuguese companies)
Telecommunications Company of the Year 2000 (Exame)
TMN’s Milestones
3/1991: Birth of TMN
9/1995: Launch of MIMO (1st pre-paid mobile service in the world)
5/1998: 1 Million clients
11/1999: 2 Million clients
3/2000: WAP launch
11/2000: GPRS launch (1st in Portugal)
12/2000: UMTS License
3/2001: 3 Million clients
10/2001: 3.5 Million clients
www.myTMN.pt
Leadership in Brazil
Telesp Celular (são Paulo)
Largest mobile operator in South America
Clients: 5 Millions (October 2001)
Market Share: 64%
Penetration rate SP: 21% (15% Brazil)
WAP clients: 1,4 millions (30%)
Global Telecom (Paraná, Stª Catarina)
Clients: 628 thousand
Market share: 29%
First operator to launch WAP in Brazil
Telesp Celular and Global Telecom reach a population
above 51 million people and 45% of Brazilian's GDP
www.myTMN.pt
Joint Venture PT/Telefonica in Brasil
Current Presence PT- Telefonica
Joint Venture
Largest operator in South America
More than 9.3 million clients, representing 42%
of the total Brazilian mobile market
Market potential of 94 million people,
representing 72% of Brazil’s GDP
Teleleste
(Bahía e Sergipe)
TeleSudeste
Rio J.e E.Santo
Telesp Celular
São Paulo
Global Telecom
Paraná e
Santa Catarina
CRT Celular
Rio Grande do Sul
Opportunities to create value based on
synergies
Significant savings and risk reduction regarding
auctions for new licenses
Joint management between PT and Telefonica,
being all important decisions taken in
agreement. Each shareholder detains 50%
of the JV.
CEO appointed by PT and CFO appointed by
TEF
www.myTMN.pt
Agenda
1. The Mobile Business of Group Portugal Telecom
2. Mobile Telecommunications in Portugal: a
market near saturation
3. TMN’s strategy for the new economy: myTMN
4. Challenges to mobile operators imposed by the
new economy
www.myTMN.pt
Penetration Rate in Portugal
More mobile than fixed line phones
6.000.000
4.000.000
2.000.000
Mobile
2º Trim. 00
1º Trim. 00
1999
1998
1997
1996
1995
0
Fixed Line
Source: ICP
www.myTMN.pt
Mobile Penetration Rate in Portugal
It’s getting harder to grow more...
100
80
60
61,1
62,5
61,4
Set-00
Out-00
Nov-00
Dez-00
67
69,4
63,4
66,1
68,7
65,7
68,2
64,3
Jan-01
Fev-01
Mar-01
Abr-01
Mai-01
Jun-01
Jul-01
Ago-01
60
40
20
0
Source: Marktest, June 2001
www.myTMN.pt
Mobile Penetration Rate in Europe
Portugal has one of the highest penetration rates in Europe
Portugal: 7.2 Million Clients
Source: ICP, June 2001
www.myTMN.pt
Market Share
TMN is the clear leader in Portugal
100
TMN
Telecel
Optimus
80
60
49,2
49,8
50,2
32
31,5
50,3
48,8
%
40
20
33,5
16,8
17,8
17,9
32,7
16,8
34
47,1
48,4
49,9
48,6
47,5
48,8
28,9
29,5
29,5
21,5
22,3
34
31,3
16,8
49,3
18
19
29,6
19,6
28,9
19,8
20,9
0
Set.00(3928) Out.00(4004) Nov.00(4093) Dez.00(4019) Jan.01(4149) Fev.01(4207) Mar.01(4300) Abr.01(4330) Mai.01(4388) Jun.01(4468)
Source: Marktest, June 2001
Jul.01(4501) Ago.01(4543)
Base(000): Owners/users of a mobile phone
www.myTMN.pt
Mobile Phone Acquisition Plans
A market near saturation
100
80,5
80
74,3
74
74,3
73,7
75,1
76,9
79,5
79,8
77,9
60
78,9
75,8
Will buy
Might buy
%
Is not going to buy
40
20
16
5,7
16,8
5,2
17,1
4,5
16,9
5,3
16,3
5
15,3
4,9
12,8
12,3
12,4
12,1
11,7
3,3
3
2,8
3,8
4,3
12,7
6,7
0
Set.00
(2620)
Nov.00
(2455)
Jan.01 (2399)
Mar.01
(2248)
Mai.01 (2160)
Jul.01
(2047)
Base (000): People that do not own/use a mobile phone
Source: Marktest, June 2001
www.myTMN.pt
Type of Current Contract
Less and less ownership of the client
100
79,1
80
77,9
76,1
76,8
77,3
78,5
78,8
66,4
62,5
58,1
60
Pre-paid
55,5
56,4
Postpaid
%
Package minuts
No mandatory recharges
40
DK/Dr
20
16,3
17
18
17,8
17,7
16,7
15,9
3,6
3,8
16,3
12,8
3
3,2
3,3
3,2
3,3
3,4
17,2
21
16,8
17,4
2,4
2,4
23
16,7
3
22,3
16,3
3,1
0
Set.00(3928) Out.00(4004) Nov.00(4093) Dez.00(4019) Jan,01(4149) Fev.01(4207) Mar.01(4300) Abr.01(4330) Mai.01(4388) Jun.01(4468) Jul.01(4501) Ago.01(4543)
Base(000): Owners/users of a mobile phone
Source: Marktest, June 2001
www.myTMN.pt
Type of Future Contract
Less and less ownership of the client
Prepaid
100
Postpaid
Package Minuts
No mandatory recharges
80
Dk/Dr
67,7
57,3
60
50,2
%
45,9
44,5
40
34,9
32,3
27,9
29,1
20
17,1
10,8
4,3
18,8
14,6
15,5
14,4
16,7
14,3
7
5,9
2,7
0,2
0
Mar.01 (362)
47,1
Abr.01 (340)
Mai.01 (329)
5,3
3,1
2,1
Jun.01 (332)
2,1
Jul.01 (327)
6,7
1,6
Ago.01 (388)
Base (000): Potential owners/users of a mobile phone
www.myTMN.pt
Profile of the Future Mobile User
Only the low end of the market is still up for grabs…
Ago.01(388)
7,8
Jul.01(327)
7,3
Jun.01(332)
7,3
19,6
72,6
19,2
73,5
16,4
76,3
Mai.01(329)
9,9
Abr.01(340)
9,3
Mar.01(362)
10,5
24,6
64,8
Fev.01(472)
9,3
26,9
63,9
14,5
75,6
20
70,6
A/B
C1
Jan.01(511)
12,8
24,9
62,3
Dez.00(561)
15,6
22,8
61,6
Nov.00(532)
15,2
23,7
61,1
Out.00(558)
11,9
Set.00(569)
24,2
7,9
0%
63,9
26,2
10%
20%
C2/D
65,9
30%
40%
50%
60%
70%
80%
90%
100%
Base (000): Potential owners/users of a mobile phone
Source: Marktest, June 2001
www.myTMN.pt
New Focus for Operators
Operators don’t want to be just pipes
High penetration
rates
Voice and access are becoming
commodities (low prices and margins)
Stabilization of
Market shares
Pressure on growth rates and ARPU
Broaden the offer to more profitable services
Focus on growing ARPU and less on growing customer base
Migrate from being a capacity provider to a full-scale service provider
www.myTMN.pt
Agenda
1. The Mobile Business of Group Portugal Telecom
2. Mobile Telecommunications in Portugal: a
market near saturation
3. TMN’s strategy for the new economy: myTMN
4. Challenges to mobile operators imposed by the
new economy
www.myTMN.pt
TMN’s Strategy
Aggregate all value added/content based services
under a strong brand associated to TMN
Partner with the best content providers
Provide multi-channels (SMS, WAP, WEB, voice)
to access the same content
Focus on personalization/customization
Open access policy
Learn with the mistakes of Internet based business
models: make money is still the goal; grow in a
sustainable way
www.myTMN.pt
myTMN- WAP
Favoritos
Destaques
Gestão Pessoal
1 Easy Messaging
2 Microsoft Outlook
3 E-mail Sapo
4 E-mail TMNnet
Informação
1 Notícias
2 Desporto
3 Social
4 Economia
5 Trânsito
6 Tempo
7 Transportes
8 Listas Telef
9 Saúde
10 Serviços
Chat Mania
1 Chat City
2 Chat Brasil
Lazer
1 Melodias e Imagens
2 Jogos
3 Anedotas
4 Horóscopo
5 TV
6 Música e Livros
7 Curiosidades
Aqui Perto
1 Farmácias
2 Postos GALP
3 Restaurantes
4 Bares
5 Discotecas
6 Clínicas
7 Galerias de Arte
8 Museus
Fora de Casa
1 Cinema
2 Cultura
3 Noite
4 Gastronomia
5 Viagens
Finanças
1 Bolsa
2 Bancos
3 Telemultibanco
4 Serviços
TMN
Apoio myTMN
Apoio Clientes
TMN Online
Activ. Automát. Serv
Número Amarelo
Guia Telemóvel
SOS Telemóvel
Navegação
1 Portais
2 Directório de sites
3 Por palavra
4 Por endereço
Votações
www.myTMN.pt
myTMN- SMS
SMS PUSH (Mensageiro Confort)
SMS PUSH (Mensageiro Confort)
SMS PULL (Mensageiro Expresso)
INFORDESPORTO
Futebol: Golos, resultados,
classificações, melhores marcadores,
notícias, directos TV (I Liga, II Liga,
Taça de Portugal, Competições
europeias), Futebol internacional
Basquetebol: Resultados,
classificações
Andebol: Resultados, classificações
Hóquei em Patins: Resultados,
classificações
Futebol salão: Resultados,
classificações
Golfe: Resultados, rankings
Ténis: Resultados, rankings
Automobilismo; Motociclismo
Totojogos
NEGÓCIOS
Notícias por palavra chave; Notícias
por empresa PSI20; Notícias de última
hora; Price Target acções; Sessão
INFORDESPORTO
Futebol: Directos TV, resultados,
classificações, melhores marcadores
Totojogos a pedido
SAPO
TELEMULTIBANCO
Consultas; pagamentos de serviços;
transferência entre contas; outras operações
Câmbios; Destaques TV; Top 5
VoxPop; Estreias de cinema;
espectáculos; previsão do Tempo;
previsões da Maya; Mensagem dos
Anjos; Provérbio do dia; Notícias jogos
DIÁRIO DIGITAL
Títulos Diário Digital; Títulos imprensa
do dia; múltimédia; cultura; outros
temas; Notícias muito urgentes
BOLSA ON-LINE
Consultas; personalizar carteira de títulos;
notificação de eventos (alarmes); recepção
automática de informações;
DINHEIRO DIGITAL
LANETRO
Música: concertos da semana; Teatro:
estreias da semana; Cinema: estreias
da semana; Arte: estreias da semana;
Destaques do dia
SPACE VIAGENS
Cursos de inglês; estadias/autoférias;
futebol europeu; golf; neve/promoções;
pacotes de férias/promoções;
sugestões de fim-de-semana; voos
promoções
DESPORTO DIGITAL
Notícias principais clubes; Notícias
futebol nacional; Notícias futebol
internacional; Notícias motores;
Notícias outras modalidades
SUPER ELITE
Notícias
TSF
Crise EUA
www.myTMN.pt
myTMN- Voice
IVR (Voz Online)
TMN Notícias
Informações de última hora 24h por dia
Bolsa On-Line
Informações sobre índices e acções
Telemultibanco
Acesso a operações de Multibanco
InfoMadeira
Informações de interesse turístico, cultural,
desportivo, de lazer e de carácter geral, sobre
a ilha da Madeira
InfoAçores
Informações sobre o Arquipélago dos Açores
SOS Lar
Serviços domésticos de canalização,
electricidade, desentupimentos, refrigeração,
chaves e fechaduras, baby sitting, vidros,
assistência médica, envio de flores, etc
22 Euro
Conversões de valores em Escudos para
valores em Euros e vice-versa
22 Mar
Informações sobre as principais praias
Portuguesas
www.myTMN.pt
myTMN- WEB
www.myTMN.pt
myTMN- WEB
www.myTMN.pt
myTMN Partnerships
www.myTMN.pt
myTMN
Total WAP cards-
460.000
% from total TMN cards-
14%
Daily mobile originated SMS-
2,2 M
% distinct SMS users-
50%
% data revenue from total TMN revenue-
7%
Most popular services- Amusement and Entertainment
(Ring tones, icons, Chat, SMS Push)
www.myTMN.pt
Agenda
1. The Mobile Business of Group Portugal Telecom
2. Mobile Telecommunications in Portugal: a
market near saturation
3. TMN’s strategy for the new economy: myTMN
4. Challenges to mobile operators imposed by the
new economy
www.myTMN.pt
New challenges for mobile operators
Changes in corporate culture
More flexibility to react to a fast changing market, very competitive, difficult to
predict and much less stable than voice
Migrate from a culture focused on selling cards and voice minutes to a fullscale service provider
Attract a different type of human resources
Changes in its core infrastructure and high investments requirements
More flexible billing systems
UMTS investments
New type of partners and business models
Depend on good content and applications
Manage non traditional partners
Share revenue with partners
Identify the right killer applications/ bet on the right services
Retain current customers is the highest priority
www.myTMN.pt
Moving Forward…
GPRS
UMTS
MMS
Wi-Fi
Bluetooth
EMS
www.myTMN.pt