Download - CommsDay Melbourne Congress 2016: Symbio
NBN, the best thing that ever happened to…
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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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