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X-Play Services: The Way to Consumer’s Heart

X-Play Services: The Way to Consumer’s Heart. Sofia April 19 th , 2006. The Bigger Picture. TV over IP: a reality or not quite yet ?. 1. Broadband has become mass market. Broadband density (subscribers par 100 inhabitants). New internet competition!. Source: IDATE, 2005.

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X-Play Services: The Way to Consumer’s Heart

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  1. X-Play Services: The Way to Consumer’s Heart Sofia April 19th , 2006

  2. The Bigger Picture TV over IP: a reality or not quite yet ? 1. Broadband has become mass market Broadband density (subscribers par 100 inhabitants) New internet competition! Source: IDATE, 2005 Source: Alcatel 2005

  3. What’s next for cable & telecom operators ?

  4. The NEW CABLE … Community TV Personal TV Better TV “view together” community-specific content “my content @ my time“ finally made simple Performance High-quality Towards HDTV • Better, more personal, yet more sociable TV experience • Bundled services – cheaper, simpler, more reliable

  5. The NEW CABLE … “My time” “My content” DVR in the US VOD in US US households (millions) US households (millions) FACTS • The Average Revenue per Subscriber (ARPU) for 3-play enabled networks is 40% higher on average compared with non-3play networks • Cable in the US market is gaining market share from satellite operators for a first time in the last 10 years thanks to bundling • Churn is reduced dramatically when more then one service is used by the customer • The newly –acquired technological capabilities of the cable operators open to them the corporate business market for voice & data services Source : Forrester, technographics

  6. The New Challengers – THE BATTLE FOR THE BUNDLE National coverage Typically 18 channels Urban coverage Typically 18-36 channels TV on the GO TV at home Remote PVR programming Discovery ADSL 3G DVB-H+ Immersion Access to home video libraries • Fixed & Mobile telecoms are rushing to offer bundled data, voice & video services BUT: • IP-TV is still in its infancy as a technology – QoS & costs are hard to control • No expertise in content acquisitions • Multimillion network upgrades required • Bandwidth barriers to going HDTV • Mobile content – a whole new format – unavailable and customers unwilling to pay for it

  7. CableTEL Company Facts • The only alternative operator with sizable national access to the last mile: • presence in 20 cities • network coverage of over 600,000 households • Broadband services in 10 cities - 256kbps to 2Mbps service plans providing direct internet access to Frankfurt and the major national IP peers • Investment program worth over 100 million leva since 2004 • 2600 km national optical infrastructure • Metropolitan F/O networks in different stages of construction in 17 cities • Carrier - class voice exchange with next-generation convergence capabilities • In-house call centre • 650 experienced employees throughout the country • International management team • Plans for consolidation of the last cable mile • Direct terrestrial connectivity with Greece, Turkey, Romania and Macedonia • Strategy for broad expansion in newly-liberalized telecom markets in the region

  8. The backbone of the Bulgarian alternative telecom market

  9. CableTEL’s product solutions for residential and corporate customers International Interconnect Additional Data Services Router VoIP Internet TDM ADM Global Switching Solution National Fiber Ring PBX FTTP POTS POTS HFC Network FTTP Other Telecom Operators Business Customers Residential triple Play Customers

  10. Product Portfolio

  11. CableTEL vision for convergence of services • Premiere of Triple play services in Bulgaria • Cable TV – basic packageand premium channels • Broadband Symmetric Internet Access from256kbsto 2Mbs • Fixed telephony service, based onnext generation convergence platform for IP & TDM signaling • Value Added services • CATV – prepaid digital packages, (near)on demand videoapplications, electronic programming guide (EPG), local information channels • Internet – web hosting, e-mail servers, game servers, Р2Р, antivirus services, chat services • Telephony – online bill check information ; online payment, call hold, call transfer, call waiting and call restraint; caller identification, specialized numbers for access to services; phone support for clients; fax number; voice mail, wireless applications

  12. Bundle Advantages for customer and operators • For the end user • Telephone service – easy to useand without the need for new equipment • Options for more than one fixed line, fax, etc. • The best prices on the market. • Attractive package price for the three services • One bill, one operator, one contact point for support • For the operator • Platform for generating new income streams based on the existing infrastructure = better return • Virus Marketing Effect • Expanding the client base by telephone service offers • Access to corporate clients as a new segment of the cable business • Building loyalty and decreasing churn rate of customers • Two-way connectivity with clients enables development of new services: teleshopping, interactive applications, games, stakes • Closing the circle of communication services for household needs by one single operator • Better understanding of the clients’ needs and interests = winning business

  13. Thank you for your attention !

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