Convergent Billing as part of an effective marketing and sales strategy Olga Botero de Duque

1. Orbitel Convergent Billing as part of an effective marketing and sales strategy Olga Botero de Duque

3. If you want to see the Caribbean, go to Cuba or Dominican Republic;If you want to see the Pacific Ocean, go to Chile;If you want to see The Andes, go to Ecuador;If you want to see The Amazon, go to Brazil;If you want to see the pre-Columbian cultures, go to Mexico or Peru;BUT if you want to see all these things together, your destination is definitely Colombia.” Advertisement used by French travel agency

4. Colombia Land Frontiers: Venezuela, Peru, Ecuador, Brazil and Panama Coast Lines: Atlantic Ocean and Pacific Ocean Population : 45 million (71% urban, 28% rural) Capital: Bogotá, 6.9 million inhabitants Climate: Tropical (climate based on altitude) Time: 5 hours behind GMT Official Language: Spanish Currency: Peso (COP vs. US$ 2004; COP$ 2,350=US$ 1) GDP (2004): US$ 263.2 billion (growth rate 3.9%) GDP per capita (purchasing power parity) (2004): US$ - $6,300 Fifth largest economy in Latin America, following Mexico, Brazil, Venezuela and Argentina. Second Foreign Direct Investment destination in South America.

5. Who is Orbitel?

6. Long distance operator for both fixed and mobile lines. • Access Code – 05, 005 • Additionally : Data, broadband, and Internet services. • Started operations Nov. 1.998 • Only private long distance operator. • With operations in 3 countries. • Market Share (Nielsen): DLD: 32.4 %, ILD: 44 % • Achieved positive net income after two years of operations, four years before expected in the business plan. • In the 4th year of operation, Orbitel became # 1 Company in International Long Distance.

7. Orbitel serves 75 out of the 100 largest corporations in Colombia. • Distinguished as one of the five most successful business cases in Colombia by Harvard University, Gold Service International and Cambio Magazine. • Best e-commerce solution in Colombia 2002. Microsoft. • Social consciousness: 83 Integrated Sites of Social Telecommunications installed in remote and needed regions of Colombia. • Proexport – Exporting Company 2004

8. What is our strategy?

9. To differentiate and compete … • Product leadership ? • Operational excellence ? • Customer relationships and experience?

10. Products... It is just a matter of time and $$$ for the competition to copy them

11. Operational Excellence... A must !!!

12. Then ¿ what ?

13. . . . Lifestyles instead of just brands “Communication should never be commissioned from outside the company, but conceived from within its heart." Luciano Benetton - Campaign : Food for Work

14. “When was the last time you felt this strongly about anything ?”

15. . . . Experienceinstead ofjust products or services “ We are not in the airline industry. We are still in the entertainment industry, only at 30.000 feet” Richard Branson

16. Brand values • Value for Money • Good Quality • Brilliant Customer Service • Innovative • Competitively Challenging • Fun

17. We thrive for a total customer experience emotional connectionconsistent execution sensorial responses

18. Our competitive strategy : Experience thru relationships that make the difference Deep customer knowledge that generates value for both

19. Total Customer Experience Customer Relationships Customer Service We have gone from Service to Experience • Values • Trust • Retention • Deep customer knowledge • Intelligent interaction - segmentation • Consultative selling • Closeness • Solving • Commitment

20. Managing the customer experience CUSTOMERS Define Customer Values Design Experience Align People Measure Improve Value Generation • Customer expectations • What the customer values • Differentiators • Strengths and inhibitors • Brand • Relationships • Interaction • Execution • Culture • Processes • Process results • Customer KPIs • Processes • People

21. We are building our differentiated experience .. Our customer values : Happiness Optimism Friendship Innovation Excellence

22. Advertising – brand Products Sales E-Orbitel Claims and Help Desk E-mails – direct mailings 150/158 Call Centers Franchises Experience Values Collections Invoice - Billing Employees Unique and Memorable Experience Loyalty

23. Segment based customer relationships and experience

24. TOTAL CUSTOMER EXPERIENCE Customer knowledge Segmentation / LTV Differentiated Valued Offer Differentiated Relationships & Treatment Switching costs BRAND MANAGEMENT Measurements : Satisfaction – Retention /Churn Rate – LTV - Brand behaviour

25. By needs • By tier Levels according to customer value • AA, A, B, C TOTAL CUSTOMER EXPERIENCE Customer knowledge Segmentation / LTV Segmentation / LTV Differentiated Valued Offer Differentiated Treatment Switching costs BRAND MANAGEMENT Measurements : Satisfaction – Retention /Churn Rate – LTV Brand behaviour

26. Product portfolio : DLD, ILD, VoIP, IP Packages, IPLs, IAPs, VPNs, Voice ONNET and Voice OFFNET, complete IN portfolio • Pricing strategy • Billing information analysis • Consultative selling • Training TOTAL CUSTOMER EXPERIENCE Customer knowledge Segmentation / LTV Differentiated Valued Offer Differentiated Valued Offer Differentiated Treatment Switching costs BRAND MANAGEMENT Measurements : Satisfaction – Retention /Churn Rate – LTV Brand behaviour

27. Differentiated sales force • Direct sales force • Distribution channels, Internet, Contact Centre • Specialized sales force • Differentiated customer management : • Frequency of contacts • Contact intensity • 360 view of the customer TOTAL CUSTOMER EXPERIENCE Customer knowledge Segmentation / LTV Differentiated Valued Offer Differentiated Treatment Differentiated Treatment Switching costs • Differentiated billing • Direct vs. indirect billing • Personalized billing • EBPP - MBPP • Information analysis • Collections • Claim management • Differentiated customer service: • Different SLAs • 158 vs. 1-800 • Service Channels BRAND MANAGEMENT Measurements : Satisfaction – Retention /Churn Rate – LTV Brand behaviour

28. Usage incentives • Frequent Caller - points based program • Information management and analysis • Annual balances • Programming PABX • Sharing knowledge and experience • Consultative selling • Training TOTAL CUSTOMER EXPERIENCE Customer knowledge Segmentation / LTV Differentiated Valued Offer Differentiated Treatment Switching costs Switching costs BRAND MANAGEMENT Measurements : Satisfaction – Retention /Churn Rate – LTV Brand behaviour

29. Billing is at the heart of • Customer knowledge and segmentation • Product portfolio and bundling • Promotions and Pricing strategy • Frequent caller programs • Billing customisation & information analysis for customers • Auto- servicing : EBPP, MBPP • Building TRUST

30. Promotions : Happy destination

31. 275.000 Points I PAQ65.000 Points

32. Billing information analysis Detailed and historic information

33. Historic information Customisation

34. Electronic Payments

35. Payments Calendar

36. Experience Values Vantive E-Orbitel Contact centers - Genesys Prepaid and IN Data Link Biztalk SAP Gestel Billing Frequent program Customer Data Marts CCB

37. Billing – in the middle of • Relationships with • Sales channels – commisions • Carriers and partners – compensation • Financial institutions - payments • Customer self – service • Contact centers • Web • Mobiles

38. TOTAL CUSTOMER EXPERIENCE Customer knowledge Segmentation / LTV Differentiated Valued Offer Differentiated Treatment Switching costs BRAND MANAGEMENT Measurements : Satisfaction – Retention /Churn Rate – LTV Brand behaviour

39. Our brand • A brand is not what you say it is, it is what THEY say it is. • The degree of trustI feel towards the product, rather than an assessment of its features and benefits, will determine whether I’ll buy it. • Trust is the ultimate shortcut to a buying decision and the bedrock of modern branding. • The Brand Gap - Marty Neumeier

40. CINCO our vehicle - icon Happiness, Friendship

41. Optimism - This is the year when only good things happen

42. Innovation : Communicate fast and easy. It is in your hands.

43. Excellence : Orbitel does not steal…

44. Friendship and Happiness

45. Results ?

47. Telecom ORBITEL 007MUNDO TOP OF MIND evolution from december’01 to april’05 Source: Advanced Tracking Programme –Millward Brown

48. TELECOM ORBITEL 007MUNDO TOP OF HEART : If there was only one long distance company ¿Which one would you rather have? Source: Advanced Tracking Programme –Millward Brown

49. Image Billing Communication Price Plans Advertising / products and services Closeness Plan Subscription Customer Processes & Impacts Pyramid Very Important Important Source : Customer Satisfaction Survey done by INVAMER-GALLUP Colombia using Gallup’s Methodology.

50. INVAMER - GALLUP Satisfaction Results – Dec’04 Source : Customer Satisfaction Survey done by INVAMER-GALLUP Colombia using Gallup’s Methodology.