telenor norway - mobile · telenor norway - mobile ric brown, market director, ... 3g 4g . we will...
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Solid market leader position in a postpaid bundle market
2 Source: Telenor analysis and Norwegian Communications Authority
Market share estimates adjusted for recent acquisitions
Mobile subscriptions (‘000)
5.6 5.7 5.8 5.9 5.9
73% 74% 75% 75% 76%
2010 2011 2012 2013 2014
Postpaid Prepaid Postpaid share
Mobile revenue market shares
15.8 15.9 15.9 15.5 16.0
21% 29%
42% 52%
59%
2010 2011 2012 2013 2014
Bundles Non-bundle Bundles share
Mobile revenues (NOK bn) Total mobile market (NOK bn)
56% 34%
3% 3% 3%
Telenor
TeliaSonera
ICE
Phonero
Others
10.3
5.7
Consumer
Business
An enormous customer appetite for mobile data
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e
+66%
+63%
+37% 10
6 4 4
1
50
29
16
+69%
+78%
Data traffic (PetaBytes)
3
Data consumption supported by strong growth in
4G coverage and handset penetration
4
9% 15%
20%
33% 35% 38%
41%
48%
Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
41% 46%
53% 57%
72% 80%
84% 86%
Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
4G handset penetration
4G population coverage
Increased data usage translating into increased ARPU
5
Median mobile data usage (MB/sub/month) ARPU (NOK/month)
287 304
320 309 312
Q114 Q214 Q314 Q414 Q115
Domestic Roaming Interconnect
180
232
265
319
389
Q114 Q214 Q314 Q414 Q115
9%
116%
MOBIL
S
MOBIL
M
MOBIL
M+
MOBIL
L
MOBIL
XL
NOK 249 Unlimited
voice & SMS
1 GB
10 Mbit/s
NOK 299 Unlimited
voice & SMS
2 GB
20 Mbit/s
NOK 349 Unlimited
voice & SMS
4 GB
20 Mbit/s
.
NOK 399 Unlimited
voice & SMS
6 GB
30 Mbit/s
.
NOK 599 Unlimited
voice & SMS
12 GB
40 Mbit/s
Cloud storage
10 GB
Cloud storage
25 GB
Cloud storage
30 GB
Cloud storage
50 GB
Cloud storage
75 GB
Insurance
3 months
Insurance
3 months
Insurance
3 months
Insurance
6 months
DATA-SIM
MOBIL
XXL
NO 799 Unlimited
voice & SMS
25 GB
50 Mbit/s
Cloud storage
100 GB
Insurance
6 months
DATA-SIM
Insurance
3 months
Data centric tariffs with clear upselling logic
6
Q3 13 Q1 14 Q3 14 Q1 15
≤199 249 ≥299
55%
38%
43%
23%
Q3 13 Q1 14 Q3 14 Q1 15
≤199 249 ≥299
…resulting in improved sales mix
7
Consumer postpaid subscriber base (NOK pr month) Consumer postpaid sales mix (NOK pr month)
18% 23% 30%
36%
..and strong growth in subscription and traffic revenues
8
Mobile subscription & traffic revenue growth
1%
-3%
-2%
2%
5%
10%
11%
9%
Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
Mobile revenues (NOK m)
3 258
3 368 3 436
3 358
3 562
3 775 3 731
3 687
Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
4G vs 3G enabled handsets in customer base (m)
There are drivers for continued growth:
Handsets, content, applications and 4G coverage
9
1.5 million unique 4G users
Rapid data growth in areas with 4G coverage
Strong innovation on handsets and services globally 0,0
0,2
0,4
0,6
0,8
1,0
1,2
1,4
1,6
1,8
2,0
Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
3G
4G
We will focus on our customers by building on
4 strong differentiators
10
Speed & coverage
• Best nationwide network
• 95% 4G coverage in 2015
• Improved geographic
coverage
• 4G+ to more than 200
municipalities by summer 2015
What you need
• Attractive device bundles
• Cloud storage
• Mobile banking ID
• NFC
You’re in control
• Telenor app with full billing
overview and top-up
• Roaming and data control
packages
• Antivirus and security solutions
• Family subscriptions/bundles
Expert help
• 92 Telenor stores
• Customer service 7 days/week
via phone, mail or social media
• Award winning online customer
service
Bringing mobile data
to new segments
• Move 500,000 customers from voice only
to voice and data over 3 years
• Offer courses all around Norway to help
people get online
• Moving to data-centric price plans
typically gives NOK ~80 ARPU uplift
12
Age distribution – inactive and new mobile data users
Inactive users
New users
6 18 30 42 54 66 78 90
3%
2%
1%
0%
Five distribution channels serving the consumer market
Telemarketing
• 7% of sales
• 100% SIM-only
share
• Increasing
share of sales
• Low cost and
high efficiency
• 80% of sales on
non sales
requests
Customer
service
• 92 branded
shops
• High service
quality
Branded
shops
• 1m visitors/day
• Sales mainly
triggered by
price
• Seen in
combination
with branded
shops
Digital
channels
• Large share of
handset lock-in
sales
• 20% of total
sales
External retail
13
A strong consumer brand portfolio with 3 different brands
Expect more
«Expect more»
• Premium brand with unique differentiators
• Leading customer service
• Strong distribution: Online, own stores and external retail
Expect more
«Afford to be demanding»
• Youth and data oriented
• Value for money data packages
• Postpaid only
• Device bundles and SIM-only
Expect more
«Money saved –
every day»
• Low cost low price
• No lock-in
• Pure online model
• SIM-only
• Postpaid and prepaid
14
57%
43%
62%
38%
Our B2B position is built on connectivity and solutions
that allow customers to focus on what they care about
15
Revenue (NOK bn)
Revenue market shares
business segment
Subscriber market shares
business segment
Business market overview
Subscriptions (m)
1,3
4,6
6,2
11,1
Business Consumer
Telenor Others
Well positioned to drive
continued growth
17
Continued upselling potential from increasing data consumption
Untapped potential from connecting currently non-active data users
Maintain market position through network superiority and other differentiators
Key takeaways?