A 3G story that makes sense

Transcription

A 3G story that makes sense
22 mln pop / 240k km2
pg1
Terrain Map
Economics Outlook
GDP (%)
Monthly average net income / capita
USD
12
300
9
250
6
200
3
150
0
-3
1998 1999 2000 2001 2002 2003 2004 2005
100
50
-6
1998 1999 2000 2001 2002 2003 2004 2005
Inflation Rate (%)
75
Unemployment rate (%)
15
60
10
45
30
5
15
0
0
1998 1999 2000 2001 2002 2003 2004 2005
Source: Romanian Yearbook – National Institute of Statistics
1998 1999 2000 2001 2002 2003 2004 2005
Telecommunications Market
%
PCs (x1,000)
3500
3000
16%
15%
14%
7,000
12%
5,000
10%
4,000
8%
3,000
12%
2500
9.7%
2000
1500
1000
2.3% 2.9%
Internet users (x1,000)
6%
3.5% 4.0%4.7%
4%
500
2%
0
0%
6,000
5,000
4,000
16.2 16.9
17.6
18.3
19.43 19.98
20.24 20.14
3,000
2,000
25
4.4
2,000
0.7
0
1998 1999 2000 2001 2002 2003 2004 2005
Fixed lines (x 1000)
Penetration Rate (%)
%
16,000
10
8,000
6,000
4,000
2,000
61.87
47.12
32.47
22
2.9 6.1
11.7
70
60
50
40
30
16.5
20
10
0
0
1998 1999 2000 2001 2002 2003 2004 2005
Mobile phones (x 1000)
Source: MCIT, ANRC, EIU Country indicators
*estimates
Mobile phones (x1,000)
10,000
0
1998 1999 2000 2001 2002 2003 2004 2005
5
1.6
0
15
0
10
6.9
2.6
1,000
14,000
12,000
5
15
10.2
20
1,000
20
18.5
Internet users (x 1000)
%
25
23
1998 1999 2000 2001 2002 2003 2004 2005
PCs (x 1000)
Penetration rate (%)
Fixed lines (x1,000)
%
Zapp Overview & Strategy
Zapp Milestones
2007
2006
2005
2004
2004
2001
2000
Launch EVDO Rev A in 450/2100
Licensed to use 2100 spectrum (11x)
Launch of fixed WLL services
Launch of EV-DO Rev 0 in 450
Achievement of EBITDA breakeven in 2Q 2004
Launch first cdma2000/450 network
Licensed to use 450 spectrum to deploy cdma2000 (3x)
Success Factors
As the 4th entrant into the market (competing with Vodafone,
Orange and Cosmote national GSM operators), Zapp managed to
succeed thanks to its:

Technology choice
• cdma2000 to provide support for both high quality voice and high speed
data services with intensive traffic profiles
• Multi band support and smart interoperability with Bluetooth and Wi-Fi
devices to enable innovative mobile applications

Spectrum choice
• 450 spectrum to achieve a large & cost-effective coverage
• 2100 spectrum overlay to enable high capacity plant for 3G services

Strategy choice
• Convergent positioning at the account level to provide both urban & rural,
mobile & fixed, voice & data services (enabling cross-selling)
• Divergent positioning at the service instance level to enable specialized
terminals to be used independently (unlike typical 3G)
• Enabling affordable flat-fee based connectivity to the most valuable
content for the end-user (via local peering and content self casting)
Onward Strategy
After the SME/SOHO initial focus, Zapp
targets additional segments and niches
enabled by:
Corporate
•
Full nationwide coverage (450) and
high capacity urban network (2100)
Zapp
SME, SOHO
•
Unlimited voice (on-net) and data
services offering (flat-fee based)
•
Consumers
New terminals offering and steadily
decreasing handset prices
•
New mobile data features and
applications (Brew, My Casting, VoIP)
•
Pre-paid services introduction
•
Services convergence
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Customers Base
600,000
600,000
500,000
500,000
400,000
400,000
300,000
300,000
200,000
200,000
100,000
100,000
0
0
Terminals
• Mobile Voice and Data
• Fixed Voice and Data
• Broadband data
Network
Mobile Services Coverage
Over 1,500 localities covered for the indoor level of service, over 17,000 km of
roads covered for the in-car level of service and over 180,000 square km
covered for the outdoor level of service by 520 BTS
Fixed Services Coverage
Over 10,000 localities covered with indoor level of service by the same
network
Traffic & Performance
Usage Profiles
-Average Voice usage/sub/month: 450 MOU (25mErl@BH)
-Average Data usage/1x Limited sub/month: 300 MOU & 40 MB
-Average Data usage/1x Unlimited sub/month: 5600 MOU & 800 MB
-Average Data usage/DO Limited sub/month: 1800 MOU & 600 MB
-Average Data usage/DO Unlimited sub/month: 4800 MOU & 2000 MB
-Average user data speeds: 60-110 kbps (1x) and 500-900 kbps (DO)
-Packets speed distribution below (DO Rev0)
450/2100 Rollout
Dual-band concept

450 spectrum (2x4.5MHz) can accommodate up to 3 cdma2000 carriers
Zapp dedicates 2 carriers for the 1xRTT voice/data services and 1 carrier for the
EV-DO broadband services
1 single DO carrier is sufficient for the mobile broadband services offering (using
Rev0 & RevA technology) but not enough for the mass-market positioning as
portable and fixed broadband connectivity solution (as DSL/Cable alternative)
without heavy cell-splitting in the urban environments.
2100 spectrum (2x15MHz) can accommodate up to 12 additional cdma2000
carriers
Zapp dedicates 3 carriers for the 1xRTT voice & data services and 9 carriers for
the EV-DO broadband services (having the option to deploy 1 UMTS carrier for
roaming business opportunity)
Dual-band antennas, base stations and terminals available from several vendors
2100 spectrum allows Zapp network to smoothly evolve towards RevB & RevC in
order to protect the leadership positioning in terms of data speeds offering while
450 spectrum will continue to provide/enable the largest broadband coverage
footprint
Same urban & rural, voice & data services (no divide) with large
coverage & high capacity offered at the same time, by the same
network/technology, through the same terminals
Phase 1: 450/Mobile & 2100/Portable – June 2008
272 cities covered by the 450 network layers (1xRTT & DO Rev0 & DO RevA )
19 cities covered by the 2100 network layers (DO RevA)
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Phase 2: 450/Mobile & 2100/Portable – Dec 2009
295 cities covered by the 450 network layers (1xRTT, DO Rev0 & DO RevA)
62 cities covered by the 2100 network layers (DO RevA & 1xRTT)
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Phase 3: 450/Mobile & 2100/Portable – Dec 2011
314 cities covered by the 450 network layers (1xRTT, DO Rev0 & DO RevA)
124 cities covered by the 2100 network layer (DO RevA & 1xRTT)
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450/2100 Terminals

Phase1:
DO RevA USB dual-band modem with manual switch between
450/2100 (MSM6800 based) – Q4 2007
Phase2:

1xRTT low-cost dual-band handset with automatic switch/handover
between 450/2100 (QSC1100 based) – Q2 2008
DO RevA USB dual-band modem with automatic switch/handover
between 450/2100 (MSM6800 based) – Q4 2008
1xRTT & DO RevA dual-band handset/modem with automatic
switch/handover between 450/2100 (MSM6800 based) – Q1 2009
Large volume commitments and favorable economies of scale for the
DO RevA 450/2100 handsets & modems would be possible based on the
high capacity offered by the 2100 spectrum, enabling the mass-market
positioning of the DO products.
Applications
Zapp Brew Apps
eMMail
eCare
€xchange
Sync
BREW Catalog
Download Evolution
Applications Download Distribution
Carrier
Managed
39%
True Brew
42%
2006
Zapp
19%
2005
Utils - 8
Comm - 5
Games - 38
2004
Information - 13
Pers. - 7
0
100000
200000
Mobile & Fixed Hotspots Backhauling
Personalized Portal Services
Completely customizable portal services with user manageable content and
optimized interfaces for PC, PPC/PDA and Mobile browsers (www.zappmobile.ro)
TV/Video/Music/Photo/Webcam/PVR/Feeds/Files Access
Free Media Center solution to access the entire home/office content and files by
streaming to any broadband mobile device with an embedded web browser/media
player plug-in (www.orb.com)