Mobile Application Solutions: An Operator`s Experience

Mobile Application Solutions: An Operator`s Experience

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
Penetration Rate (%)
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)
%
Penetration Rate (%)
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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7
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)
Applications
Zapp Brew Apps
eMMail
eCare
€xchange
Sync
BREW Catalog
Applications Download Distribution
Carrier
Managed
39%
Download Evolution
True Brew
42%
Zapp
19%
2006
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/Fe
eds/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)