mobile market discuss papers tx spain

Value Proposition:

Collaborating for the Spanish (and alternatives) Market development

Discussion Paper

0.1 Understanding Market Development.

0.0 Document Structure.

0.2. Mediterranean Market Overview.

0.3 Potential Development.

03.1 Telecommunications: OMVS, FMC, 3/4 play.

03.2. New TV Challenges.

03.3 Content and Services Providers.

03.4 Citizens Requirements (Data Retention, LOPD, Electronic Signature).

03.5 Utilities and Manufacturers.

03.6 Engineering Companies.

0.4 tx-soluciones Capabilities.

0.6 HOT Approach.

0.7 Experience.

0.5. Working Plan.

0.8 Example of Contacts.

0.1 Understanding Market Development.

Market assessment. Business Development. Creation of business leads. Account management. Local consultants for project delivery. Partners Development. Marketing: online and one to one.

Local markets entrance is difficult.

We are dealing with highly competitive and technologically advanced markets with many companies knocking on the doors … few of them knocking on the right ones.

Normally we found sophisticated procurement processes, with personal agendas involved.

Having the right partner can make the difference!

MarketDevelopment

Main Activities

0.2. Spanish Market Overview.

Telecommunication MarketTotal Revenues by Quarter

FIX Mobile InternetAudiovisual

Services

PhoneInformation

Services

BusinessServices

Terminals Others Total

Telecommunication Market (excluding Wholesales) ServicesBreakdown

0.2. Spanish Market Overview.

Signal Transportation

and

Broadcast

Total Revenues

Mobile ADSL

Internet

Fix

0.2. Spanish Mobile Market Overview.

Market Share by Revenues

SubscribersRevenues ( million €)

Swueno,

Euskaltel

Lebara Móvil,

Happy Móvil,

Pepe Móvil,

Eroski Móvil,

Carrefour Móvil, Metrored Móvil,

Más Movil,

Flipa Móvil,

Simyo,

E-Plus,

Fonyou,

Icall,

Itsmo,

Bankinter…

MVNO´s

Market Share by Subscribers

0.2. Italian Mobile Market Overview.

Italy is amongst the top five mobile communication markets in Europe. The country comes second according to the number of subscribers, after Germany. It has the highest 3G penetration in Europe, and also the most dynamic mobile content market in terms of revenues. MVNOs have been established in the Italian market since June 2007. Moreover, WiMAX is ready to go with 35 licenses been awarded at the beginning of 2008.

7.5% 8.7% 8.5% 8.6% 8.8%

32.9%32.2% 32.5% 32.8% 32.9%

39.6%

39.9%39.9% 39.8% 39.9%

20%

19.2%19.1%

18.8%18.4%

137.4%142.2%

145.4%149.1%

122.6%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2005 2006 1Q07 2Q07 3Q070.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

WindTIM

VodafoneH3G

Penetr. per inhabitant

Total subscribers2005: 72 million

Total subscribers2007: 88.5 million

Coop Voce

Tiscali

Noverca

Poste

Carrefour Uno Mobile

Conad

Daily Telecom

Autostrade

Auchan

FastWeb

50&Più Fenacom

MVNO´s

0.2. Portuguese Mobile Market Overview.

Portugal Mobile Operators : TMN, Telecel Vodafone, and Optimus-Sonae.

•The wireless market in Portugal is growing somewhat slowly compared to many other European countries. We are now forecasting that the number of total subscribers will increase from our projected 13.8 million in 2007 to a forecasted 14.5 million in 2010. In 2010, the wireless penetration level in the country will reach 130.1%.

•Market shares (by subscribers) of the two largest operators will remain roughly the same over the next several years in Portugal. TMN will continue to have about 43% market share whereas Telecel Vodafone will have 36% of total subscribers over the forecast period of 2007 - 2010.

* TMN will continue to be more profitable than Telecel Vodafone, and its EBITDA margin is forecasted to be 43.7% in 2010. During this period, we forecast that the EBITDA margin of Telecel Vodafone will continue to remain low at 35.0%.

Phone-ix

ACP

CTT

ONI

Rede Bonus

Rede4

Talk Talk Mobile

Tele2

UZO

MVNO´s

0.2. Greek Mobile Market Overview.

-In 2010, we are predicting that Greece will be the most highly penetrated market in the world. The wireless penetration level will increase from our projected 156.6% in 2008 to 173.2% in 2010.

-The number of total subscribers in Greece will increase from 17.5 million in 2008 to 19.4 million in 2010.

-The two largest operators in Greece will continue to be Vodafone Panafon and Cosmote. We expect that Cosmote will continue to increase its market share in the next few years. It will increase from 39.9% to 42.1% from 2008 to 2010. During the same forecast period, Vodafone Panafon's market share will decrease from 32.3% to 30.1%.

- Cosmote will enjoy a higher EBITDA margin at 40.2% and a lower ARPU of US$ 33.74 per month compared to Vodafone Panafon with 35.0% EBITDA margin and $34.43 ARPU per month.

In Greece mobile phone services are

also offered by three smaller

companies which are subsidiaries of

the major ones, aimed at people who want cheap and simple calls.

Q Telecom

Frog Mobile

NO’MAD

MVNO´s

Based on tx-soluciones contacts and previous work done with customers, there some key areas where the products and services could be presented and offered in a short term time frame.

0.3. Potential Development.

Segment Challenges Entry Point

TelecomOperators

Convergence

Triple Play

Deal with MVNOs

Merges Reorganization

They have to concentrate their effort in Increase ARPU by selling more services and more profitable services.At same time they cannot loose market share.

MVNO´s

Three types:

1. Just in the market. NO good results by the moment.

2. Working for the Launch. Negotiating with Mobile Operators.

3. Thinking in how to enter this market.

Review Business Cases

Deal with HMOs and Regulators

Technical Support for Integration

Processes & Operations Definition / RFPs

Business Plan

Logistics (Terminals, SIMs,…) Optimisation

TV

New Business Models in the market.New Devices and New Technologies under discussion.Big regulation issues.Content Control.Audiences management.Government and Regulatory aspects.

Redefine Business Model

Deal with Regulators

Technical Support for Integration

New Processes & Operations Definition

Business Plan

New Technologies Advisor

Revenues Assurance



Content and Services Providers

New Business Models considering Telecom OperatorsThey need to be able to offer new type of content, but they have to do through the Telecom Operators Networks.Avoid illegal copies and protect contents.Fight against Old media (traditionally used for content delivery) resilience to new interactive channels.Merge to have enough volume (€) to be able to create good quality contents .

New Platforms Integration

DRM policies and Implementation

DRM Entities Relationships

Telecom Operator Business Negotiation

Telecom Operator Technical Negotiation

Audience response Multichannel Real time Systems

Merges Reorganization

Citizens drivenActivities(Target market: RegulatoryEntities and Government Agencies)

The people always require more services and more content at reasonable price and like to adopt new technologies to simplify life.

But they need to continue being free and safe.

The role of the Authorities is to protect the people and privacy.

Data Protection Implementation (LOPD)

Data Retention Implementation

Digital Signature / Fraud Control

Tariffs Management and Control



UtilitiesNew Models and processes Implementation.

New Business Development:Looking for new sources and markets for business.

Own Business Improvement: Usage of new technologies to increase internal profitability.

EngineeringCompanies

Be able to provide the required services, platforms and products that the rest of the market will be asking for.

Services Demand analysis.

Fast access to New Tech.

Knowledge Acquisition.

Markets trends analysis.

Mobilize Sales Forces.

Home working.

New Processes based on new telecom convergent services (Tele metering)

Continuous tariffs analysis.

Strategic Partnering Advisor Services.

Architectures and Specifications.

Regulations and Licensing processes.

Market trends.

Clients and Competitors.

All Entry Point type of projects named in this pages, are illustrative and real. Of course there are more initiatives that are not in this list, when working there we will discover new opportunities for more business.

Concerning customers, during this last years we have been dealing mainly with:

Telecom Operators & Service Providers in Spain and Portugal (Telefónica, Orange, Vodafone, Xfera, ONO, Metrored, Euskaltel, Telecable, TMN, Optimus, Metrored...).

In some of this projects a closed relationship was required with System Integrators (HP, Atos-Origin, IBM Global Services, INDRA,…),

as well as with OSS/BSS providers (Comverse, Amdocs-Cramer, Comptel,.) for complex integrations,

and with Mobile Services Platforms providers (XIAM, Unipier, Pontis, Changing Worlds,.) for Content Management, Cross-selling, Profiling, Personalization.

0.4 tx-soluciones Capabilities.

Diversification

NEED

Convergence

Content Delivery

Reachability

Optimise

ASPs, ISPs

SECTOR

Telecom Operators

TV

Marketing y Communication

Industries y Commerce

New Services Deployment

SOLUTION TYPE

MVNO & FMC & IMS

Strategic Positioning

Mobile Marketing

Delocalised Processes

Market Analysis

Presentations

Feedback

Needs

Proposals

•Target Identification.• Interlocutors definition

Company capabilities.•Experience.•Presence

•Opportunities:•Short term.•Medium term.

• Creation• Identification• RequirementsSpecification

•Write Down•Tender•Defences

MarketDevelopment

0.5. Working Plan.

Closing Opportunities

Negotiation

Closing

Delivery

•Business Case• Benefits / cost analysis

•Payment terms• Administrative issues•Agreement/Contract

•Project Plan•Resources•Methodology

¨DoThe

Project¨

• Fast Phase, due to the tx-solutions position in this market.• Some training required to in depth understanding the offerings. • Not too many resources required.

• Remote resources required at the beginning.• Local Organization developing based on the Business created.

KEY Players•Multilevel Strategy.• Main Contacts.

NewMarket

Development

0.5. Working Plan: By account.

• Step1: Strategic workshop to define a Multilevel account Presentation.

Identify Work already done within the account.Putting in common Contacts and tenders. Detailed analysis of new Contacts and responsibilities in the Potential Customer.

• Step2: Start Presenting the Capabilities and Offerings to all strategically identified contacts for fast detection of on going opportunities.

This is a Continuous activity!At this step the Business Targets will be defined.

• Step3: Opportunities Qualification.

Sales opportunity assessment.Business Value Proposition Creation.Decision Making Structure Identification & Analysis.

• Step4: Tendering (In case).

Strategic Positioning.Multi-front attack.

Market targeting.

Competitive positioning advice.

Localization of marketing tools (brochures, website, white-papers, proposals,…).

Pricing advice.

Business Development.

Virtual Account Management.

Meeting & Workshops Enabler.

Local Partner Seeker.

0.5. Working Plan: Services Offering & Business Benefits.

Cost rationalization and virtual presence.

Better chances to win deals.

Inside knowledge for a quick opportunity assessment.

Access to the right people inside the targeted organization.

Eyes and ears on the market evolution, maximizing present and future opportunities.

Low risk.

Services Offering Business Benefits

Google pay-per-click advertising, localized for Spain (and –in case- Italy, Portugal and Greece) with a monthly budget to be discussed.

Landing page at Company website, in Spanish (and –in case- Italian, Portuguese and Greek).

Online direct marketing campaigns, in local language, for every event or news release.

Commission on sales (to be defined).

Costs associated to customer visits outside Madrid to be invoiced monthly.

Advisor will bear the Business Card of the Company.

Advisor will have a POP3 or OWA email account from the Company.

Monthly report on activities, leads, opportunities and qualifications.

Initial 12 months contract.

0.5. Working Plan: Promotional & Base requirements

0.5. Working Plan: Expected opportunities behaviour.

tim

eLeads:

Opportunities:

“can-win”

Opportunities:

“WON”

opportunities

2-4 months

5-7 months

8-12 months

Sales Funnel

Based on our sales experience within this market, we can establish this timing schema:

0.5. Working Plan: cooperation alternatives.

tx-soluciones will Develop the Company Business in the designed markets.

For this activity a retainer fee of (+V.A.T.) will be invoiced monthly.

Commission will be paid on all contracts secured with Spanish and Portuguese Customers.

Commission will be paid at a rate of X% (to be defined!).

The initial contract will be for 12 months from signature date.

Considering annual renewal without explicit (3 months in advanced) written notice by any of the parties.

All additional expenses (travel, transportation,…) that could be required to do the project are not covered by this fee. That will be invoiced to the Company once approved.

Experienced advisor profile. Fast Identification of critical

issues. Business Oriented.

Fast deployments

Multifunctional. Multidisciplinary. Good relationships with Telecom

players (Operators, TVs, ISPs,....). Good relationships with System

Integrators. Experience.

Media and Telecom. Market Knowledge

Based on Experience. Designed to cover the whole life cycle:

From concept to market launch.

Complete and Proven Methodologies

Exploración

a

Análisis

b

Negociación

c

Puesta en Marcha

d

¨Hands ON Team¨ HOT

0.6 HOT Approach.

0.7 Experience.

Main Roles

Tech

.B

usi

ness

Manag

em

ent

Tech. Support.Product

Management.Solutions Design.Project

Management. People

Management.Account

Management.Marketing Director.IS/IT Director.Sales Director.Channel

Development.Business

Consultant.Strategic

Consultant.Technological

Consultant.New Business

Launch.New line of

Business Development.

New Business Conceptualisation and creation.

Main Customers

Telecoms.

Industry &

Commerce

Banking&

Finances

Others

etc...

[email protected]

Phone: +34 91 6595884 Mobile: +34 60 9209048Fax: +34 91 6595816

Presented By:

Carlos Etxeberria Gamazo