fibre rollout project examples – lyse and altibox partners · fibre rollout project examples –...
TRANSCRIPT
Fibre rollout project examples –
Lyse and Altibox partners
Eirik Gundegjerde
CEO
Lyse Tele AS
Content
Lyse, moving towards multiservice approach
The Market
Choosing infrastructure
Sales strategy
Network Buildout
Geographical coverage
Developing services
Key figures
Conclusions
The Market & infrastructure
Lyses strategic position
Providing broadband services to regional customers
Going for a lasting position in this emerging market, and offering high quality competitive services
The infrastructure evaluationThe fiber choice
Economical consequences
What about the services?No single service could give us sufficient ARPU to finance this infrastructure
We decided on FttH and a full set of 3P services
-30000
-20000
-10000
0
10000
År 1 År 3 År 5 År 7 År 9 Serie1
The competition before and after FttH
Coax: Get, Telenor
Satelite: Viasat, Telenor
xDSL: Telenor and others
DTT: Riks-TV
Mobile (HSPA ++): Telenor, Netcom, ICE, NwN
The customer choice: several infrastructures and several servicesKey Question: How to introduce a new infrastructure and compete with the excistingvendors?
Sales strategy
Sell, then build
Targeting residential areas in Stavanger region
Customers already signed up on ISDN, DSL and cable-TV/satellite-TV from other vendors.
How to reach the penetration goals?
Detached houses, slightly above medium income.
42% signed up for triple play during our 4 week test sales.
Our sales pitch was one-stop-shopping
Future proofing the home.
Cover the households needs
From a marketing point of view, we address the household with our bundle.
Next generation infrastructure
Highspeed internet
”Magic” TV
Lots of convenience
And some discounted services like fixed line telephony
Next to 100% hitrate if there are teenagers in the household
Our offering
IPTV SD and HD, 32-130 channelsVoD, +400 films, major studiosPoD, local news etcPVRGames, webcams etc.
Internet access10 to 100Mbps symmetrical
VoIP2 fixed lines (alarm/fax compatible)Multiple phone servicesFree calls in the Nordic countries
One contract, vendor, invoice, call center.
The process ….
Analyse area
Sell
Build
Deploy services 80% are doing their”homework”
The Network Buildout
Gigabit ethernetFiber
10/100Mb ethernet
SME
POIResidential
Multitennant
AccessNetwork
CoreNetwork
MetroNetwork
Services
Multiple Gbps
10 GB ethernet
The buildout –
Regional Metro & access network
Ethernet all the way
Capasity, latency, jitter
Applications
Fully symetrical services
Standard 100/100 Mbps
Easily upgradeble
Network Neutrality
GeographicalCoverage
Regional – National - International
Our operation are very regional, with 80k subscribers at maximum in the Stavanger area
The services can scale to a mill subscribers without any problem
We decided to use a franchise model, and have franchisees sell and build in all other regions than our home market.
Several utility companies, municipalities and private companies has signed up with the same model
Today we have 33 franchisees that build in 186 counties in Norway, and 1 that builds in 9 counties in Denmark.
Total customer potential Lyse and Partners is over 1 mill subscribers
The Core structure
Metro network
Main links CorePOI Core
10Gbps ring in South-Norway
2,5Gbps ring in Mid-Norway
2,5Gbps ring Stockholm & Copenhagen
1Gbps ring in Northern Norway
Building FttH based on Altibox in red areas
Altibox Franchisees
DevelopingServices
Whats this about?
”Fiber to the people”
Minimum capex and aquisition cost
Maximum uptake and service penetration
Volume and reduced opex
Long term investment
How to deal with competition?
Service innovation – you simply have to be best!
TV-services
Telephone-services
Internet-services
IP
Mobile-services
Alarm-services
AMR-services
From Triple to Multiplay…..
Gaming-services
Sensor-services
New Services – Competition – Convergence
Services – the big picture
Multi-play services
Regional services
Converged services
Intra services
Altibox subscribers can choose
Her ønsker jeg å Oppdatere med
Flervalgspakken vår
Basispakke 1: Viasat Gull Basispakke 2: Altibox
Regional Services
Examples from this region
Popular services on your cellular
Manage your PVR through your cell phone
Security & surveilance
Figures
Customer focus and sales methodology
Before sellingSegmentation & field studies before opening a new market
The right customers
The right area due to cost
Average CAPEX is 2.600 Euro, mostly civil works
Average sales cost is 150 Euro
Totalt investments 200 mill Euro
Average penetration 60%Among these we contract:
100% Internet (mandatory)
80% IPTV
80% Telephone
The main benefits of multi-play:
Market penetration where offered; 60%
Churn: <1%
Average monthly ARPU pre VAT: 90 Euro and increasing
115.000 subscribers at present
Delivering 700 – 1000 new subscribers per week
135.000 Set-Top-Boxes
Bandwidth consumption: next to 100 Mbps per High-usage family
Conclusions
Package as a benefit
When doing initial market research and concept, we tested several levels of bundling
In our market, a majority would prefer single supplier of a bundled package of installation, services and billing
We concealed the fact that this service bundle was Internet, IPTV, and IP-telephony
Spesialized on providing regional content
We still focus on the content and user experience, and the fact that fiber is a high capacity longterm solution
Service innovation
Economics
Sustainable economics:Number of choosable services are high
Product penetration (100/80/80) high ARPU
Area penetration > 60%
Same services, technology and topology all over means lower OPEX
Time-to-market for services
IP – facilitates new service bundles and convergence
Bandwidth & symmetrics
Competes easily with incumbants and others
-30000
-20000
-10000
0
10000
År 1 År 3 År 5 År 7 År 9 Serie1
Future Goals
The Challenger to the Incumbent
End 2012 400k subscribers
50 Franchisees
ThreathsContent owners puts exclusive rights to popular content
Regulation models that will decrease customer uptake and economics in the first fase
0,00 %
10,00 %
20,00 %
30,00 %
40,00 %
50,00 %
60,00 %
Telenor
NGT
Get
Tele2
Ventel
oAltib
ox
TM
BKK
Eidsiva
Andre
2q052q062q07
The key question
How to ensure that fiber infrastructure are beeing built?
Commercial models
Competition between several infrastructurs providing ”same” services
Several service vendors competes on the FttH infrastructure as well
Our experience from ”open” networksA rich uncle
Low penetration of services
In the future: Internet pipe will serve most services
The customer choice …
Why did they sign up, and what makes them stay and pay?
Competitive
New services - innovation
Single point of contact
Fiber and future proof technology
Thank you for your attention!