Transcript Slide 1

Competitive Business Case
UBI – Dec/2003
Alex Cutrim / Suzana Roma
Layered, Multi-Player Mobile Industry
Creates Complex Business Environment
Corporate Personal
Consumer
Service
Provider
s
Telecomm.
Equipments
Basic Components
Vodafone, T-Mobile, …
Core network switching and transmission
equip., wireless handsets, satellite equip.,…
Processors, electronics, plastics,…
Service Providers - Abundance of Players
VoiceStream Wireless
Southern Linc
Alltel
AT&T wireless group Dobson Comm.
Sprint PCS
Century Tel. Dynamic Mobile Data
Vodafone
Cellular One
Centennial Comm.
T-Mobile
Winphoria
Cingular Wireless
GoAmerica
Triton PCS Networks
Metricom
Western Wireless Nextel Comm.
MCI WorldCom
Cell phone - Dominated by Top 5
Nokia
Towering Service - Major Players
American Tower
Corporation
Motorola
Telecommunications
14600 towers, USA, Brazil, Mexico
Spectrasite Comm., Inc.
Ericsson
8000 towers. USA, Canada
Alcatel Siemens Information
and Communications
SBA Comm., Inc.
3700 towers. USA, P.Rico
Crown Castle
International
Australia, P.Rico, UK, USA
AT&T, Sprint
Pinnacle Towers,
Inc.
2300 towers. USA, Canada
Components - No clear leaders, fragmented
Texas Instruments
Good Morning Electronic
Information
Bluetooth capabilities, wireless
infrastructure, RF products
Taiwan based
Supplies: Nokia, Ericsson, Motorola, Siemens
Sanyo
Battery maker: Nokia, Ericsson, Motorola
Geo Tex Creative Plastics
Visions of a Near Future…
Estimate of 1 Billion mobile subscribers by 2003!
Visions of a Farther Future…
Connecting OBJECTS with BUSINESS APPLICATIONS
for added-value products and services
Employee
dB
ERP
Consumer
Business
CRM
Mobile Network
House
TV
Car
www.com
The Challenge
Integrating the plethora of systems and
protocols along the value chain
The real challenge is connecting
Business Interests to a Common Goal
Cellphones, PDAs,
smartphones,
blackberry,… Employee
Microsoft, Symbian,
Consumer
Palmsource,…
Java, XML,
XHTML, VXML,…
dB
ERP
Business
Mobile Network
House
TV
WLAN, Car
bluetooth,…
CRM
GSM, CDMA,
TDMA, GRPS,
UMTS, EDGE,
W-CDMA,…
www.com
WAP, Windows,
Linux,…
… under a changing Technological
Landscape
3rd Generation: Broadband Digital
WCDMA
CDMA2000
Voice and Extended Data (MMS)
3G
Higher connecting users => populated
areas
UMTS
EDGE
GPRS (GSM)
2.5G
2nd Generation: Digital
Voice and Data (SMS)
2G
Intel tracking: extended batt. life
Limitation on # connecting users TDMA
1st Generation: Analogue
Limited to Voice Services
1G
Always-on: limited batt. life=>
limited mobility
Subject to cloning/fraud
(850 MHz)
GSM
CDMA
Opposing Strategies Will Slow the
Expansion Process
Standardization of
Technologies
Diversity in
Technologies
Synergies in value
chain
Complexity of
Hardware
Efficiency, Lower
Investments
Abundance of
Equipment Types
Increased Service
Value
Increased Equip.
Revenues
Profit
Service Providers
Telecomm. Equipment
In the End, Consumer will Decide
Diversity of
Technologies
Standardization of
Technologies
More
Service
Proliferation of
Devices / Providers
Consolidation
Limited
Transmission
Faster
Transmission,
More Power
Higher Start-up
Costs
Higher On-going
Costs
“You Pay for What
We Have”
“You Get What You
Pay For”
Rapid Expansion in Mobile Internet Use Will
Test Capability of Providers to Keep Up
Mobile Internet Users
194
2000
2005
MM
89
79
52
30
7
Europe
2
North America
0.1
Latina
America
Asia-Pacific
Vodafone
T-Mobile
Mission
We help people find information, entertainment or
assistance wherever they are.
We will deliver the best customer
experience in mobile communication –
the true freedom to move- on a global
scale.
Vision
Our vision is to be the world’s mobile telecommunication
leader- enriching customer’s lives, helping individuals,
business and communities be more connected in a
mobile world.
They will prefer Vodafone because the experience of
using Vodafone will be the best they can find.
We will lead in making the mobile the primary means of
personal communication for every individual around the
world.
Through leadership,our scale, our scope and our
partnerships, we will bring online mobile services to the
world.
Our core slogan is “Get More” more
value for money, more freedom of
choice, more options, more services;
without more expenses.
Objectives
The Company’s objective is increasingly focused on
voice and data revenue growth and margin
improvement.
Provide the best possible return for the shareholders.
To extend our operational leadership of the industry .
To extend service differentiation
To provide our customers with safe, reliable products
and services that represent good value for money.
Global brand for global movers:
customers are on the move round the
globe and want to use their mobile
phones everywhere.
Transnational Company: be one team
Individual Markets and Cultures
Growth
Strategy
Research &
Global
Presence
Developmen
t
Competitiv
e
Assessmen
t
Organizational
Products
Structure
Market
Image
Growth Strategy
Vodafone
T-Mobile
Increase marketing focus on our
established high quality customer base
Provide its customer seamless transAtlantic services
Invest in delivering Vodafone branded,
easy to use, customer propositions for
mobile voice and data. One worldwide
brand => Brand awareness => preference
A recognizable brand, present on
international markets, assuring the same
high quality everywhere
Maximize the benefits of scale and scope,
through the use of partner network
agreements, by increasing equity interests
in business where the group has existing
shareholdings
Subsidiaries are still responsible for
performance in their countries. They know
best what their customers want and need,
and will be the ones from whom the
important ideas will come
Understand, anticipate and respond to the
needs of our customers and provide them
with innovative products and services
Make further acquisitions or disposals of
business
Global Presence
Vodafone
T-Mobile
123 million customers spanning
the key global cellular markets in
28 countries
Deutsche Telekom and its
subsidiaries and affiliates provide
wireless services to approximately
82 million customers worldwide
Still, its global strategy appears
less than clear outside its
European heartland, especially in
the United States
It is the first to operate a transAtlantic mobile network based on
GSM
In the United Kingdom, it carved
Its subsidiaries and affiliates are
out a position of market
among the first operators to use
dominance against a powerful
the future oriented GPRS
rival, partially owned by the former
telecom monopoly, BT
$300 Billion in acquisitions
Products
Vodafone
T-Mobile
Vodafone Live!: bringing customers a world of
colour, sound and pictures
Acquisition of Vizzavi is expected to continue
to drive a significant part of the Group's growth
in future years
Lifestyle and mobility:
The company is broadening its mobile multimedia services
spectrum
Color displays, multitonal ringing, Java capability and GPRS
connections have made many mobile multimedia services more
attractive, faster and easier
T-Mobile t-zones are characteristic for this next content generation.
Six popular channels: t-info, t-sports, t-news, t-games, t-music.
More than 100 partners with over 500 services providing a wide
variety of content
Mobile Office from Vodafone: high speed data
card enabling customers to access their normal
business applications when out of the office
A customised Vodafone branded GPRS data
card provides optimal service on Vodafone
network
Making the Office Mobile:
The products provide secure, efficient communication between the
mobile employees by optimizing essential office applications, such
as e-mail and office Outlook.
Products already available: Mobile Access Portal, Mobile Service
Portal, BlackBerry Solution or the T-Mobile MDA and Sidekick
Wireless Office: replace desk phones or
replace their entire PBX
New technologies: Acquisition of UMTS licenses in six european
countries
Blackberry: advanced wireless handhelds,
software and services
Mobile messaging: The company launched GPRS in 2002 in
Europe
Connected by Vodafone: descriptor applied to
mobile data solutions provided through
partnerships between Vodafone and leading
mobile device manufacturers
Market Image
Vodafone
T-Mobile
For many early British mobile users,
As part of its brand philosophy, the
Vodafone became synonymous with
company will strengthen its
the mobile phone, as in “call me on my commitment to quality and a superior
Vodafone."
range of voice and data products
Vodafone live!: Best Consumer
Wireless Application or Service at the
GSM Association Awards, and, most
recently Best New Service at the
World Communications Awards and
Best Network Service at the Mobile
Choice Consumer Awards
High profile sponsorship of Ferrari
and Manchester United
Vodafone Hopes to Make Global
Mobile Mean More Than Wireless
Voice
The T-Mobile brands symbolizes
reliability, attractiveness, and
innovation throughout Europe and the
United States.
Spokestar Catherine Zeta-Jones
A recognizable T-Mobile brand,
present on international markets,
assuring the same high quality
everywhere, is an important
orientation.
Organizational Structure
Vodafone
T-Mobile
It developed global
One team: Main activities,
functions for supply chain, IT such as marketing, platform
and technology
harmonization, procurement,
management.
and brand migration will be
managed centrally in future
Individual markets and
cultures: Subsidiaries are
responsible for performance
in their countries
Research and Development
Vodafone
T-Mobile
NTT DoCoMo and J-Phone (owned partially by
Vodafone) launch 3G network
Lucent Technologies and T-Mobile launched a
joint pilot project to evaluate secure high-speed
data services using 3G UMTS technology.
Vizzavi is Vodafone’s 50/50 joint venture with
media giant Vivendi. Essentially it is looking to be
the Yahoo! of the mobile internet.
Joined forces with Google to bring advanced
search capabilities to mobile internet portal
Signed agreements with content providers: MTV,
Universal Mobile, AOL, Aspiro, CNN, Digital
Bridges, E*Trade, MapQuest, NGame, Picofun,
PocketBoxOffice, PocketThis, Sabre,
TicketMaster & CitySearch, Upoc, ViAir’s, Zagata
Vodafone made a joint-venture with Oracle to offer
field workers access to key business systems.
Vodafone partnerships with SAP and HewletPackard to collaborate on Mobile Enterprise
solutions
Microsoft partners with T-Mobile HotSpot to
promote Wi-Fi access for Windows Mobile
Customers
Vodafone and Microsoft join forces to create
programming standards for software that will
eventually link computers and mobile phones
T-Mobile will deploy 3G Lab’s Trigenix product:
the goal is to enable users to create their own
personalized interface.
Launches Global Blackberry Solution. Has worked
closely with Research In Motion to deliver
customized BlackBerry solution.
Working closely with Research in Motion to offer
Blackberry terminals supported by the operator’s
GRPS and “push” e-mail services.
Growth
Strategy
Research &
Global
Presence
Developmen
t
Competitiv
e
Assessmen
t
Organizational
Products
Structure
Market
Image
Vodafone
T-Mobile
Strengths
Global reach,
strategic executer,
industry enabler
Weaknesses Technology base in
US, “over focus” on
global Brand strategy
Agile, opportunistic
with current
possibilities
Lack of long-term
focus
Opportunities Leverage global
capabilities to drive
mobile standards
Threats
Value for money of
3G derived mobile
services, price paid
for 3G licenses
Keep close distance
to leader to avoid
risks
Value for money of
3G derived mobile
services
Executive Summary
Vodafone is well positioned to become the
World’s true leader in Mobile services


Focused, global, execution
Leveraging global presence to drive mobile
industry to deliver increased value
The real power of a global player is not in
leveraging seamless global services
T-Mobile has the technological global
competitive edge to be in the forefront of
the industry

Does not appear to be committed to this
Vodafone’s Choice for Verizon in the US
appears to be driven by quality opposed to
strategy
Are you encouraged to switch providers based in WNP?
22.6
Verizon
37.6
T-Mobile US
37.0
AT&T
38.2
Qwest
34.8
US Cellular
Cellular One
33.3
Cricket
33.1
32.2
Sprint PCS
27.1
Cingular
Nextel
24.5
Alltell
24.4
TracFone
12.2
Verizon is based on the
CDMA platform
Not one of Verizon
Wireless services carry
the Vodafone brand
“Put option” on $10 billion
45% stake can be
exercised by Vodafone

AT&T Wireless and TMobile USA are GSM
Reference Sources
BIGresearch
CeBit News
CNET News.com
Duke University
Gartner
GlobalWirelessNews
GSM association
gsm world
Intermarket Group
Microsoft
MIT University
MULTEX
New York Times
PMN Publications
Qualcomm
Reuters
Robert Kahn, “Father of
the Internet”
The Motley Fool
This Is Money.com
T-Mobile International
Vodafone
Wall Street Journal
World Investment AK
Yahoo! Finance
About the Authors
Alex Cutrim is an Electronics Engineer major
He has extensive practical background in
Strategic Intelligence functions
He has worked in several areas of The CocaCola Company and Sony
[email protected]
Suzana Roma is a Statistician major
She has broad experience with applied statistics
to Marketing Intelligence
She has worked in several consumer oriented
companies such as Coca-Cola, Telemar
(Telecom) and Fininvest (Bank)
[email protected]