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Agenda

Product Development for Optimal FTTH Take-up Boro Petkoski, Makedonski Telekom AD, Deutsche Telekom Group 28 April 20 10. 1. Agenda. Background Growing bandwidth needs Residential portfolio (FTTH) Business portfolio (FTTB) How to maximize value for customers?

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Agenda

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  1. Product Development for Optimal FTTH Take-upBoro Petkoski, Makedonski Telekom AD, Deutsche Telekom Group 28April2010 1

  2. Agenda • Background • Growing bandwidth needs • Residential portfolio (FTTH) • Business portfolio (FTTB) • How to maximize value for customers? • How to accelerate FTTH take-up? • What else is important? • Conclusion • Resources 2

  3. Background Makedonski Telekom: • Incumbent telecom company in Macedonia • Part of Deutsche Telekom Group Macedonian broadband Internet market: • 64 ISPs • 4Play, 3Play, 2Play available • 40% household penetration • 270,000 customers • 49% Makedonski Telekom retail market share 3

  4. Growing bandwidth needs Watch additional TV Stream Transfer VoD to The Car Download the Latest Tunes for iPod Stream YouTube videos about a friends wedding „Copper, great for pipe work, not so great for YouTube” DSL is not sufficient anymore Download the news as Podcast Make international VoIP Calls More than 21 Mbps Order new snickers with IPTV Banner Work From Home Answer Video Call on TV Watch show on Demand Gaming

  5. First FTTH products introduced in Macedonian market in December 2009. 5

  6. Residential portfolio (FTTH) 3 Max Optic Call & Surf Optic Max Optic 6

  7. Business portfolio (FTTB) Office Complete Optic Max Optic Pro 7

  8. How to maximize value for customers?? 8

  9. Residential products FTTH vs. ADSL > = = Premium* *Monthly FTTH price premium above ADSL. 9

  10. Business products FTTB vs. ADSL > = Premium* *Monthly FTTB price premium above ADSL. 10

  11. Value proposition • Download speed x 4 • Upload speed x 50 • Internet traffic x 2 • Monthly price premium: • 5 € residential • 10 € business Up to 60 Mbps symmetrical Unique in the market 11

  12. How to accelerate FTTH take-up?? 12

  13. Free installation • Free installation of FTTH service with one-year contract 13

  14. 3 months trial • Try FTTH 3 months for the price of ADSL • Can return to ADSL if not satisfied • No cost & no risk to try FTTH 14

  15. Gift wireless router • Wireless router as a gift with a one-year FTTH contract 15

  16. 2nd phone line • Second telephone line with separate number at no additional charge 16

  17. Free HD TV channels • Viewing HD TV channels 3 months free in HD 17

  18. An offer you can‘t refuse? • Download speed x 4 • Upload speed x 50 • Internet traffic x 2 Up to 60 Mbps symmetrical Unique in the market • Free installation • 3 months trial • Gift wireless router • 2nd phone line • HD TV channels + 18

  19. What else is important?? 19

  20. Strong marketingcommunication • Direct mail (letters & brochures) to FTTH-passed homes • Posters & stickers in FTTH-passed buildings • Local promotions and direct contacts with prospects • POSM in retail stores • Online

  21. Strong PR • Press releases • Interviews • Endorsements • Online

  22. Dedicated sales force • Telesales • Door-to-door sales • Retail stores • Online sales Source: flickr.com 22

  23. Selection of high-potential deployment areas 2 3 4 1 1 • Densely populated urban areas • Multiple dwelling units • High broadband penetration • High purchasing power 23

  24. Rapid network deployment & installation • Construction permits • Home-owner consents • Installation capacity 24

  25. Positive word of mouth • Neighbors talk • Word of mouth spreads fast • Strong impact on sales Source: flickr.com 25

  26. Conclusion ... • Attractive products are key • Speed sells, but may not be enough • Market penetration vs. market skimming • Without special incentives, most customers don’t immediately grab FTTH 26

  27. ... also important • Strong marketing communication • Strong PR • Dedicated sales force • Selection of high-potential deployment areas • Rapid network deployment & installation • Positive word of mouth 27

  28. Resources Useful information available in: “FTTH Business Guide“ Published by: Free download: http://ftthcouncil.eu/ 28

  29. Back Up. Thank you. Boro Petkoski Makedonski Telekom AD Deutsche Telekom Group boro.petkoski@telekom.mk

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