telcoinabox's damian kay

Resellers, Aggregators and the Future

Comms Day Summit – 10 April

So, what is a reseller? Telecommunications resellers provide

fixed, mobile and data telecommunications services over

third-party-owned networks.

They simply buy and resell telecommunications services.

Telecommunications Resellers in Australia: Market Research Report - 2012

But it’s confusing

Is it:

Tier 2, Tier 3 or something

In-between?

In our opinion the definition is...

Source: Telcoinabox in collaboration with Market Clarity

Infrastructure owners on a large scale

Small infrastructure players, including regional wireless players and aggregators. Revenue typically > $50M. Includes major multi-national telcos

ResellersSmaller SPs, reliant on Tier 1 and Tier 2 for

services

TIER 1

TIER 2

Tier 3

The tier 3 market

2007 2008 2009 2010 2011 2012 2013 2014 2015

ISPs

659 678 638 529 484 473 475 500 520

VSPs

369 413 436 349 312 341 345 360 380

50

150

250

350

450

550

650

750

Nu

mb

er o

f T

ier 3

provid

ers

Source: Market ClarityVoice Service Providers include fixed voice, VoIP and mobile

“Pure” tier 3 telcos in Australia today

463 Source: Market Clarity

Telco dealers

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=FTqMnS97fRrKxM&tbnid=hTVektIk03Lb8M:&ved=0CAUQjRw&url=http://naracoorteretravision.com.au/tag/telstra-dealer/&ei=7RphUaOVBoj1iQezgoG4DA&bvm=bv.44770516,d.aGc&psig=AFQjCNHROYt9ScrlVzxJBdDzXaZz76P3ZA&ust=1365404772607832

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=uH4IMlLSVuC1fM&tbnid=tkuUHfDBu0ho3M:&ved=0CAUQjRw&url=http://wishcommunications.co.uk/blog/?paged=2&ei=5RthUbnSGo6tiQe4zIG4Cg&bvm=bv.44770516,d.aGc&psig=AFQjCNEvgieybRYCUoC0TdvkixTg6B_mUw&ust=1365405016707070

Getting Shafted

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Yo5StFgdLI1FqM&tbnid=pfm5JfyokK5x2M:&ved=0CAUQjRw&url=http://www.theaustralian.com.au/opinion/a-paralysed-gillard-is-making-rudd-look-good/story-e6frg6zo-1225929704077&ei=8yhhUceBMIq5iQeto4DADQ&bvm=bv.44770516,d.aGc&psig=AFQjCNH3NyrB2ljQY67A_HZnr8-rsmg6Mg&ust=1365408323015006

Customer ownership

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=rI7gof3VaFnYoM&tbnid=tRc62wBpmuUUQM:&ved=0CAUQjRw&url=http://www.grokdotcom.com/?p=3252&ei=JyphUbySNqT8iAff2YHIDw&bvm=bv.44770516,d.aGc&psig=AFQjCNHDFmPW9lJ0tl8zx3bf1kCOLETsnw&ust=1365408667149379

The rise of the “non-traditionals”

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=rYB9mmUOyxR_AM&tbnid=QcWyMh1d63kE0M:&ved=0CAUQjRw&url=http://www.muovo.eu/employers/why-we-are-different&ei=WiNhUfCpJomtiQfu0ID4AQ&bvm=bv.44770516,d.aGc&psig=AFQjCNG2jdtoFbfmoudyQysAYiT97lvUEQ&ust=1365406914982742

Bolting-on telco as a new revenue stream

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=aG4eUuFFdRnjYM&tbnid=g4ARIvNeNDtUxM:&ved=0CAUQjRw&url=http://www.ideasbynet.com/nut_and_bolt_stress_toys.htm&ei=LhphUcPLIeiTiQfHtYGoBw&bvm=bv.44770516,d.aGc&psig=AFQjCNGLezqChrm9bZnGwRZVI51BDoidGQ&ust=1365404518461533

Will this mean market saturation?

We will see carrier churn accelerate

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=kTpUseOQkrO1qM&tbnid=3a3PpFyfmgjVnM:&ved=0CAUQjRw&url=http://www.australianstockreport.com.au/share-tips/sp-asx-news/asx-blue-chip-shares/telstra-tls-finalises-deal-for-nbn-network/&ei=HDdhUevZD6iViAez9oCgCw&bvm=bv.44770516,d.aGc&psig=AFQjCNHkR-0OX7CeoO7KNIBataomlxGnIQ&ust=1365411957915680

Why will the new kind of ‘reseller’ thrive?

Trusted brandsExisting large scale customer baseBig revenue driversOffer better customer experienceOffer value for money

But wait, there’s more…

7 Key Segments

What is driving demand?

Under the spotlight

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=81nbtfFDrOZ0SM&tbnid=dxoQxv2iIhG5bM:&ved=0CAUQjRw&url=http://www.littleblackdressgroup.com.au/janine-blog/step-into-your-own-spotlight/&ei=4B5hUfKFDYmiiAeY_oHQCA&bvm=bv.44770516,d.aGc&psig=AFQjCNG816H6N4-hAOqeVg3NOn9IkGl7uw&ust=1365405790445796

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Tj_i_tGyVTopSM&tbnid=Eh61dAECAuilgM:&ved=0CAUQjRw&url=http://www.gippstafe.vic.edu.au/&ei=Th9hUdSkJYyRiQfd1IDADQ&bvm=bv.44770516,d.aGc&psig=AFQjCNHW_sb5b6q-zTmwOtRuPmioAyTFJA&ust=1365405893838178

Tip of the iceberg

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=wQP8YJMi71hAGM&tbnid=ktKm4gdrveWPvM:&ved=0CAUQjRw&url=http://www.glennsasscer.com/wordpress/2011/10/05/tip-of-the-iceberg/&ei=2iFhUZH4Oq2SiQfR2oDoCQ&bvm=bv.44770516,d.aGc&psig=AFQjCNE99XFP81PjpYx0z-o8Z63mLw4nSQ&ust=1365406453562028

How do they become a reseller?

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Wk5yCqR0_qNzkM&tbnid=zEIqGZML36Wr9M:&ved=0CAUQjRw&url=http://www.dnaevolution.com.au/howwedo.html&ei=1SphUbLEDsqWiQftvID4DA&bvm=bv.44770516,d.aGc&psig=AFQjCNHrnGH-7P5T7HJWUsNoO8Tosy9oMQ&ust=1365408836364900

The ideal aggregator

Aggregator

Does not compete with its

customers

Scale – Ability to Invest & Grow

Ownership / control of core network assets

Breadth of products /

services – a “one-stop-shop”

Customer focused –

trusted, open, transparent

Experience & expertise –

proven track recordCompletely “white label”

So in summary

• NBN will drive new Tier 3 entrants into the market

• A greater role for aggregators as they become more relevant

• Plethora of unprecedented demand by RSPs

So what are our plans to manage the demand?

The Inabox Group after acquiring the business of Telcoinabox is going to IPO in June 2013

Questions

www.inaboxgroup.com.au

telcoinabox's damian kay

Technology

new tier

pure tier

regional wireless tier

market800 number of

market clarity

telecommunications resellers

services source

mobile source