csl修改版

CSL

Nicole DIAO HONGFANG 1155037755 Sylvia ZHANG SHIWAN 1155036953 Aiur WU TIANYI 1155037073 Ann JIANG AN 1155036790

Jessica ZHANG YUEMIAO 1155037586 Sophia ZHANG XIAQIU 1155037040 Angeline XU YIHUA 1155036780 　　　

1

2

Information Strategic

Analysis

3

PLAYERS

Players

5

INTRODUCTION

6

CSL

ommunicationervicesimited

Introduction

7

CSL

reateimpleife

Introduction

8

CSL Limited

Headquarters Hong Kong

Industry Telecom

Founded 1983

Parent Company Telstra Corporation Limited Australia’s

leading telecommunications and information services

company

Status The leading mobile operator in Hong Kong.

Introduction

─

9

Introduction

BrandsThe First operator to adopt multi brand strategy

1010

One2Free

New world mobility

10

Key Facts

It is Hong Kong's first mobile network operator.

It was the first in the world to begin a High Speed

Switched Data Service or HSCSD.

It was the first in Hong Kong to launch a commercial

General Packet Radio Service or GPRS, and launched Asia‘s

first.

Introduction

11

Business Retail

Around 40 retail shops under three different brands.

Corporate

Provide total mobile solutions to corporate customers and industries.

Wholesales & International Services

Prepaid cards & third-party operators, IDD;

No. 1 roaming coverage in Hong Kong with most overseas’ partners.

Technology

Customer Relationship Management

Introduction

12

REVENUE MODEL

13

Sales of mobile communication equipment and

devices

Basic communication charges (pre-paid, post-paid)

Value-added service charges

Revenue Model

Revenue ModelCloud Service

AnyplexLibrary of Hollywood blockbuster movies on

demand

GameBox Cloud-based mobile gaming service

Books On DemandOnline book store service

MyRoomPersonal cloud storage and content sync

service

Entertainment

MusicMusicholic

PlaylizMusic Channel

Connecting ToneMyRingtone

Invest FamilyInvest Power

Invest ProInvest Express

Contents Channels

Information Channel

Studio On DemandMobile entertainment with

live and archived TV programs

OthersDisney Channel

LUXE Traveler appNon-traditional Voice & SMS Management

Call Manger appCall FilteringMulti number

Multi SIMSMS forward

Secretarial Service

Customer Care

Service AppPersonalized Self-served channel

to manage customer account

oneRewardsMobile coupon App for one2free customers with various benefits

Others

Content BillingShort code service

for 3rd party content billing

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15

TECHNOLOGY

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Network

the only operator in HK has sufficient FD-LTE

spectrum

2G: GSM1800/ 2600 MHz dual band network

3G: W-CDMA

4G: LTE 150M → 300M

Technology

17

Cloud Storage App: Anyplex, GameBox, Book on Demand,

MyRoom

Technology

18

Technology

MMS(Multimedia Messaging service) Sending pictures, music, flash messages

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OPERATION

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Content Management

Cloud VS. GameBox

Operation

Operation-Content Management

CSL provide apps with abundant resources

GameBox

Playliz Books On Demand

Anyplex Musicholic

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Operation-Content Management

Where are the contents from?

Operation-Content Management

How to realize cooperation? e.g. Game Box

Game publishers invent games and gain licenses

CSL negotiates with game publishers

CSL and Game publishers sign contract for their cooperation

CSL includes the games into the GameBox and do promotion

CSL shares a certain part of their revenues with game publishers

Mobile Devicereceives streaming video and sends commands

Cloud-gaming Server

does all the heavy work

Low Latency Video

Controller Action

powered by one2free’s 4G LTE network

Operation-Cloud VS GameBox

How does GameBox work?

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INTELLECTUAL PROPERTY

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Cooperated products (e.g. GameBox) Contents are produced by other game publishers (Capcom/Atari) Technical support is provided by CSL IP is owned by both CSL and game publishers

Intellectual Property

Technical

SupportContent

s

IP

Products invented completely by others (e.g. Movie, music) CSL only provide a platform and help to do promotion and marketing.

IP (including concept, content, etc. ) belongs to that party.

Intellectual Property

Platform Content & IP

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ECOLOGY

Ecology

Telecom equipmentmanufactur

ere.g.ZTE

Telecom operatore.g.CSL

Softwaredevelopere.g.Royal Games

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Ecology-competitors

Ecology-competitors

Credit Suisse Telecommunication Network Ratings

Telecommunicatio

ns Operator

3G Coverage

Score

3G Speed Score

4G Speed Score

4G Spee

d Score

Common Usage Score

Continuous

Performanc

e

Total

Score

SmarTone 4 5 5 4 4 5 27

Hutchison Telecom

5 5 3 5 3 4 25

CSL* 5 3 3 4 2 4 21

China Mobile HK 3 2 4 3 4 5 21

PCCW 3 4 3 3 2 3 18Notes: General usage includes browsing websites and uploading images, with 5 points being the highest score for the item. Final scores are rounded up in the test.*Credit Suisse tested CSL’s one2free network

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Ecology-competitors

CSL

Hutchison Telecom

SmarTone

PCCW

Hong Kong Telecommunications Operators Market Share

Based on the number of users

29.7%

12.9%

13.6%

25.8%

Note: Based on statistics from last year-end. Credit Suisse estimated the number of users and profits made from services

33

Ecology-customer segmentation

Business

Young Dynamic

General Mass

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NEXT

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Starting from mobile payment…

Next-Into OTT Value Chain

+

36

Next-Mobile Payment

Mobile user familiarity

Financial security Better mobile

payment

+ =

37

Strategic Analysis

38

Rivalry among Existing

Competitions

Threat of New

Entrants

Threat of Substitute Products or

Service

Bargaining Power of Suppliers

Bargaining Power of Buyers

Five Forces Framework

39

Rivalry among Existing

Competitions

Threat of New

Entrants

Threat of Substitute Products or

Service

Bargaining Power of Suppliers

Bargaining Power of Buyers

Five Forces Framework

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

……

2020

3G3.5G

3.75G

4G LTE

LTE CAT 4

LTE ADVANCED

5G

100MB 300MB150MB

Price War, Service War, Quality War, New Product War

Rivalry among Existing Competitors

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

……

2020

3G3.5G

3.75G

4G LTE

LTE CAT 4

LTE ADVANCED

5G

100MB 300MB150MB

Rivalry among Existing Competitors

Service War Canceling the

“plan of limitless data

use”

42

2011.11

2012.2

2013.9

Office of the Telecommunications Authority “guidance for fair data use”

CSL, 3HK “fair data usage” 5GSmarTone cancel “limitless data use” “fair data usage” 5G & 8GPCCW cancel “limitless data use” ONLY!

CSL,3HK, SmarTone cancel “limitless data use”

China Mobile “limitless data use”

Rivalry among Existing Competitors

Service War-Cancel the plan of limitless data use

CHEATI

NG!

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

……

2020

3G3.5G

3.75G

4G LTE

LTE CAT 4

LTE ADVANCED

5G

100MB 300MB150MB

Rivalry among Existing Competitors

Quality War Comparison

between 1800MHz and

2600 MHz

44

2012.8 SmarTone change 1800MHz from 2G to 4G better for indoor signal

CSL dual-band: 1800MHz and 2600MHz more capacity, more stability

Rivalry among Existing Competitors

Quality War-Comparison between 1800MHz and 2600 MHz

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

……

2020

3G3.5G

3.75G

4G LTE

LTE CAT 4

LTE ADVANCED

5G

100MB 300MB150MB

Rivalry among Existing Competitors

New Product War CSL vs.

Genius Brand(PCCW+3)

2013.3

2013.6

Genius Brand(PCCW + 3HK)new 10MHz band width of 2600MHz total 20MHz!!!

CSL LTE Cat 4: download speed—150Mbps necessary requirement: 20MHz bandwidthPCCW LTE Cat 43HK LTE Cat 4

Rivalry among Existing Competitors

New Product War（ LTE CAT 4） - CSL vs. Genius Brand (PCCW+3HK)

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

……

2020

3G3.5G

3.75G

4G LTE

LTE CAT 4

LTE ADVANCED

5G

100MB 300MB150MB

Rivalry among Existing Competitors

3G Licens

e(2013.10)

Importance of frequency spectrum

48

Rivalry among Existing

Competitions

Threat of New

Entrants

Threat of Substitute Products or

Service

Bargaining Power of Suppliers

Bargaining Power of Buyers

Five Forces Framework

No 3G License Rent 3G capacity from CSL & PCCW Terrible user experience

Reauction 3G License in HK The entrance of China Mobile HK

Threat of New Entrants

China Mobile Hong Kong

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Plum Consulting:

“Increasing overall spectrum instead of redistributing existing holdings.”

Threat of New Entrants

Protests from Operators in HK

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Rivalry among Existing

Competitions

Threat of New

Entrants

Threat of Substitute Products or

Service

Bargaining Power of Suppliers

Bargaining Power of Buyers

Five Forces Framework

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Threat of Substitute ProductsFixed Carriers Pure Fixed Carriers

Not trendyWharf T&T, HK Broadband

Triple Players: PCCWTV, Broadband, MobileFMC VS FMSConvergence, Wifi

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Threat of Substitute ProductsOTT Skype/Wechat:

Long-Distance Call, SMS Other APPs:

Music, Pictures Download

Add into Industrial Chain

54

Rivalry among Existing

Competitions

Threat of New

Entrants

Threat of Substitute Products or

Service

Bargaining Power of Suppliers

Bargaining Power of Buyers

Five Forces Framework

The bargaining power of suppliers

KEY POINTS GAME MOVIE/BOOK/MUSIC

Substitute products are unavailable in the marketplace.

☆☆☆ ☆

The supplier’s product is highly differentiated. ☆☆☆☆ ☆

There are few suppliers and many buyers. ☆☆☆ ☆☆

It is dominated by a small number of companies and is more concentrated than the industry to which it sells.

☆☆☆ ☆☆

The cost of switching from one supplier’s product to another supplier’s product is high.

☆☆☆ ☆☆

Its products are an important part of the buyer’s business.

☆☆☆ ☆☆☆

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Rivalry among Existing

Competitions

Threat of New

Entrants

Threat of Substitute Products or

Service

Bargaining Power of Suppliers

Bargaining Power of Buyers

Five Forces Framework

KEY POINTS BUYERThe telecommunication service is sufficiently standardized among sellers that not only can buyers find alternative sellers but also they can switch suppliers at virtually zero cost.

☆☆☆☆

The supplying industry is comprised of large numbers of relatively small sellers.

☆☆☆☆

The buyers pose a threat of integrating backward to make the industry’s product.

☆☆☆☆

The buyer’s purchases directly determine the revenue of the company.

☆☆☆☆

The bargaining power of buyers

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As for now, CSL has the largest market share in HK. However, due to the fierce competition of HK telecommunication industry, CSL has to move really fast and being creative enough. Otherwise, the future of CSL cannot easily be as good as it is now.

Conclusion

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Thank you!