NBN, the best thing that ever happened to…

Click to Bypass

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Buffering . . .

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Market trends

New wave

Next 5 years

Consolidation

Last 5 years

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Emergence of big brands Already started!

The big brand formula

Want

Need

Nice to have

Cement existing base +

Add brand value & reach

Low cost to serveFast speed to market

Straight forward costing

Additional revenue streams

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Add the NBN mandate

Encouraging new entrants

Promoting competition Price neutrality

Superior product

“This is intended to level the playing field for Australian telecommunications and create real

and vibrant competition within the industry.”- nbn co corporate plan 2016

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Result

93% market share to the big 4

71 POIs have 4 or less access seekers

Limited emergence of big brands or at least no impact

Source: ACCC NBN Wholesale Market Indicators Report April 2016

47%

27%

14%

6%7%

NBN Market Share

Telstra TPG Optus M2 OthersWHY?

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Poor customer experienceSQ check

Up to 3 phone calls to provision

NBN complaints up 68%

5 times more likely to get a TIO complaint

# of TIO* Total subs* Per 1k subs

NBN 6715 485615 13.83

Mobile 57983 21000000 2.76

DSL/MBB 31835 12700000 2.51

*Sources: Mobile subs - ABS, NBN Subs - NBN annual report 2014-15, Complaints - TIO 2014-2015 Annual Report7

Brand Formula

=

Customer experience

+

Ease of market entry

+

Predictable Margins

High barriers to entry

• 121 POIs

• Complicated pricing construct

• Doesn’t easily translate to retail market trends

• Onerous support requirements

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Brand Formula

=

Customer experience

+

Ease of market entry

+

Predictable Margins

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Low, unpredictable margins

• High CVC charges

• High cost to serve & support

• Unpredictable usage based cost

• Spend too much time on non-core functions

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Brand Formula

=

Customer experience

+

Ease of market entry

+

Predictable Margins

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Your

brand

Brand formula recap

Poor customer experience

+High Barriers to entry

+Low unpredictable Margins

=10

NBN, the best thing that ever happened

to…

Mobile11

Great customer experience

Plug and PlayNetwork improvement 4G/5GIncreasing data quotas YoYNear 100% coverage

Total mobile complaints* - 21%

Mobile coverage complaints* - 49%

*Source: TIO 2014-2015 Annual Report12

Brand Formula

=

Customer experience

+

Ease of market entry

+

Predictable Margins

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Low barriers to entry

• MVNO + enablement provider

• Simple pricing construct - retail minus

• Directly translates to retail market trends

• Low support requirements

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Brand Formula

=

Customer experience

+

Ease of market entry

+

Predictable Margins

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Predictable Margins

• ‘Retail minus’ cost structure

• Bolt-ons and cross sell opportunities

• Increased customer spend on brand

• Spend time on sales and marketing, not support

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Brand Formula

=

Customer experience

+

Ease of market entry

+

Predictable Margins

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Great customer experience

+Low barriers to entry

+Predictable margins

Brand formula recap

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=

Without drastic change the NBN is going to be left behind

... so while its being reviewed, the market moves forward

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Mobile usage

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• Shift to ‘mobile first’ usage and even ‘mobile only’ adoption

Source: http://www.acma.gov.au/theACMA/engage-blogs/engage-blogs/Research-snapshots/Australians-get-mobile

Mobile enablement platform

• Go to market in under 4 weeks

• Activate SIM in 7 seconds

• 400,000+ users already active

• 4 big brands launching this quarter

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enablement

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We cracked the big brand formula

Want

Need

Nice to have

Cement existing base +

Add brand value & reach

Low cost to serveFast speed to market

Straight forward costing

Additional revenue streams

Customer engagement+

Customised plans & bundling

APIs, high automation, CRM4 weeks go to market

Low CAPEX, management reporting

Margin to be made!

Case Study – Jims Mobile Phones

Capitalise on existing customer base asset

Leverage brand value

Need low customer touch & automated systems

Aussie based, experienced team = positive customer experience

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Special thanks to NBN for making this

possible

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