Agenda
• Marked situation in Denmark for TDC
• Status and forecast for mobile voice
• What can/should operators do to maintain business
• Conclusion
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• Marked situation in Denmark for TDC
• Status and forecast for mobile voice
• What can/should operators do to maintain business
• Conclusion
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TDC is the Danish incumbent (fixed, cable & mobile) focusing on the Nordic markets…
TDC's present focus
TDC Nordic
(Business only)
Key Financials • Revenue 2010: DKK 26,167m • EBITDA 2010: DKK 10,772m • % margin: 41.2%
Core Business
Divested Fixed Voice PSTN >1.1 mio ISDN >100.000
VoIP subscribers SIP ID's >350.000
Convergence subs Duét >370.000 Mobile flex >500.000
TV subscribers YouSee >1.1mio TDC >120.000
Mobile subscribers Voice >2.5mio Data >200.000
Messaging/month SMS >800 mio MMS >3mio
Subscribers
TDC Denmark
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TDC has competitive pressure from both Fixed-only and Mobile-”only” oriented players
Fixed focus Fixed and Mobile Mobile focus*
* Both Telia and Telenor also offer fixed services, but the main focus seems to be on the mobile network going forward – especially with their mobile network partnership announced recently. 3 is a mobile-only player aside of Skyline who is a Wimax operator.
Fiber (Utilities) and Coax players
Focus on very high-speed internet (>100Mbit/s for Fiber) as well as digital TV
Fiber companies also focus on up-load speed
Focus on Mobile Voice and Mobile Broadband
Mobile BB as Fixed BB substitution (mainly “3”)
Aggressive LTE roll-out (Telia)
Use all access technologies
Position MBB as complementary for Fixed BB
Focus on Dual/Triple/Quad play services and convergence
Cover the different market segment with various brands
To Many Mobile Operators are leading to ”price war”
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All players have launched bucket products with free SMS/MMS and variable data and voice buckets. For 20€ at month can you get:
6 Hours of voice 6 GB data
Double up on volume at same price over 6-12 months!
Good message is that Voice and Data is bundled. Bad message is that data is perceived for free leaving the possibility for OTT player to provide value added services!
• Marked situation in Denmark for TDC
• Status and forecast for mobile voice
• What can/should operators do to maintain business
• Conclusion
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Trend towards”All IP” Convergens & Mobility
Home Work
Transport
Public Digitization
Cloud
mVoIP
Mobile payment
OTT
M2M
HAP
UC
Triple Play
Is there a Future for Voice Business ?
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Even that not all analysis's are agreeing on the future, is it clearly that voice is and will be the most used service! But who will provided the service?
Source: Internal Ericsson
This slide contains forward looking statements
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
2008 2009 2010 2011 2012 2013 2014 2015 2016
BU
SD
Mobile data, incl. mobilePC access & SMS
Mobile voice
Fixed corporate dataservices
Fixed broadband
IPTV
Fixed VoIP
Fixed narrowband voice
Source IDC
• Marked situation in Denmark for TDC
• Status and forecast for mobile voice
• What can/should operators do to maintain business
• Conclusion
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Operator vs. OTT Voice and messaging services
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Operator based Voice
Advantages Ease of use Controlled (Voice) QoS
CSFB SRVCC
Support for legacy Voice services MSISDN and thereby interconnect with all subscribers in the world!
Subscription relationship
Disadvantages Traditionally based business case before innovative development
Competitive environment between Operators
OTT Voice Advantages ”Free” usage (Incl. international calls) Dynamic service implementation
Instant messaging Video call’s Etc.
Interaction to PC based applications
Disadvantages Best effort service ”Only” data barer Expensive at roaming Community based Receiving party on data
The main advantages for Operator may cease to exist when LTE deployment have reached an level where need for ”legacy” voice services are limited!
Which tools do Operators have to maintain Voice Services
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Protective strategy Block/limit Voice services for OTT player (incl. Verticals)
Operator Consolidation
Keep high roaming cost for data
No flat rate Data subscriptions
Offensive strategy Always included Voice in data bundles
Ensure superior Voice quality
VoLTE and communication as a service (e.g. RCSe)
Ease of use Terminal support Industry standard
Challenges
(National) Operator corporation
Service launch e.g. RCSe (before VoLTE)
Limit Halve rate usage HD voice launch Etc.
Role of GSMA?
• Marked situation in Denmark for TDC
• Status and forecast for mobile voice
• What can/should operators do to maintain business
• Conclusion
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Conclusion
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Operator do have the option to maintain control of voice services but it requires that: Voice services are constantly developed and Interconnection with other operators are ensured.
But When LTE is ”fully” deployed are operator advantages limited
Timing is critical if OTT’s and verticals voice business should be limited if “Kodak moment” should be avoided..