LTE and the customer’s perspective…

H.Tolga Gedikoglu

JSC ALTELVice President Commercial Divisions – LTE

LTE Forum 2013| Istanbul

2

Our Country , Our market…

-

3%

6%

9%

12%

15%

0

500

1,000

1,500

2,000

2,500

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Pen

etra

tion

of p

opul

atio

n

MB

B S

IMs

(thou

sand

)

MBB - 3G MBB - LTE MBB penetration of population

Kazakhstan MBB market ALTEL is the first Kazakhstan mobile operator since 1994ALTEL is the first 3G operator since 2010

• Total population 16.9 million • Territory 2,724,900 sq. km• Population of Astana & Almaty 2.2 million• Territory of Astana & Almaty 1,062 sq. km

Summary of fixed and mobile broadband service availability

[Source: Analysys Mason, 2012]

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

0

5

10

15

20

25

30

35

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Pen

etra

tion

of p

opul

atio

n

SIM

s (m

illio

n)

Handset subscribers MBB subscribers Mobile penetration

Mobile broadband SIMs in Kazakhstan, 2010–2021 [Source: Analysys Mason, 2012]

Mobile handset and broadband SIMs and penetration in Kazakhstan, 2012–2021 [Source: Analysys Mason, 2012]

4

ALTEL is the first 4G operator since December 2012

Almaty Astana

5

GAMING0%

HTTP(video, browsing,

Yotube)61%

OTHER4%

TORRENT USAGE

32%

STREAMING1%

VOIP (Skype, SIP)1%

Our users’ experience

EV-DO (1Mbps) 3G (5Mbps) 4G LTE (20Mbps)0

50

100

150

200

250

300

Online video; Number of downloads per 24 hours

EV-DO (1Mbps) 3G (5Mbps) 4G LTE (20Mbps)0

5000

10000

15000

20000

25000

Music; Number of downloads per 24 hours

EV-DO (1Mbps) 3G (5Mbps) 4G LTE (20Mbps)

020000400006000080000

100000120000140000160000

Photo; Number of downloads per 24 hours

EV-DO (1Mbps) 3G (5Mbps) 4G LTE (20Mbps)0

50000100000150000200000250000300000350000400000450000500000

Email; Number of downloads per 24 hours ALTEL4G usage during one month

period

6

Various touch points for our Customers

Quality of mobile internet for various needs

Comfortable internet usage

Prices and tariffsPayment

User equipment

Personal account and

site

Sales points

Call center

Company image

Customer services

7

Is this “the Formula” for us ?

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Various Customer Perspectives !

9

85% of indoor coverage

More than 95% time in online

mode Average speed 50+ Mbps

connection manager software

Sufficient coverage Speed

Simplicity of usage Stability

Perspective: How Internet works in my area?

Expectations

Achievements

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Prices and tariffs Volume based

Speed based

Usage based

Single vs. Variety

Limited “Unlimited”

All means

All types

All the time

Perspective: What do I pay and How do you want me to pay for the services?

The choice

Payment

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Perspective: When I need something, it should be Easy to reach & easy to understand ?

o Sufficient amount of informationo Usabilityo Clear user-friendly interfaceo New services promotiono Subscribers feedback

Web site

Personal Accounto Personal Financial & Operational

informationo Extended info on account and serviceso Statistics o Online paymentso Purchasing new VAS serviceso Easy connection to operator

12

UsabilityReliabilityFunctionalityGood priceSmall SizeCool design

Perspective: How are the functionality of devices ?

What I want?

13

Perspective: Where can I find you and how do you sell differently ?

Perspective: Where am I now and where will I be ?

14

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So what we say is ;

Enhance the Customer experience through :

Mandatory offers for customers

Quick benefits

Long – Termbenefits

Competitive advantages

Target Area Campaign, Smart deployment

Promo with top-up terminals

Coverage campaign

Reactivation campaigns

Today’s service is better than yesterday,it will be much better tomorrow

Coverage

Offers

Consistency

Speed

Internet is as necessary as air

New Devices introduction & campaigns

ALTEL retail engagements zones

4G vs. 3G

ALTEL wants to be the best in MBB market among all other competitors

New sales mechanism with free

of charge first day

Motivation Program for sales force

Do not buy it, simply try it!

We are building the best company. So, we need “THE” people

ALTEL working environment is the best

Office is much better than I thought.

We will be “THE ” company in this country

Series of tailored communication campaigns

Events and promotions

Corp Com, community education & build up, interactive strategies

Life style & attributes

Brand building

17

Key learnings are …

Expectation

Dependency

Consistency

Availability

Overpromise

Bundle

Volume

ObserveListen

Talk

Plan Live like your customer

Organize

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