Network services for developing the future

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Network services for developing the future

• Best Of Wireless 26/11
• B. Lemaire

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Agenda

• Belgacom Mobile The Company
• A changing market, and the Proximus approach
• From infotainment to any business

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Who is Proximus ?
25
75
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Who is Proximus ?

• Proximus network performance characteristics
• 1st dual-band network 900-1800 MHz in Belgium
• High standard in CCSR - Overall Call Succes Rate
• 12 mio voice calls per day and over 5 mio SMS/day
  
• GPRS network ready by 18/01/01
• Mobile Intranet secure access to corporate
  networks (July 2001)
• UMTS license A (highest technical value in
  spectrum allocation)
• 188 roaming agreements with 115 countries
  (Eurocall)
• Proximus commercial performance
• 4.2 Mio active customers
• 2 Bio turnover in 2002
• 2.300 employees

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Proximus Vision
My mobile, my personal assistant, always,
everywhere

Sport
Traffic information
Adressbook
Stock quotes
IVR
Positioning
News
Dispatching
Media
conversion
Fax
Unified messaging
Gambling
e-
mail
Gaming
Voice mail
Ticketing
Time tables
Calender
Workgroup
Reminders
coordination
Payments
File
transfer
Banking
Internet access
Weather Forecasts
Account queries
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Agenda

• Belgacom Mobile The Company
• A changing market, and the Proximus approach
• From infotainment to any business

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Mobile World evolving from simple to complex
3G - Tomorrow
2G - Yesterday
Voice
Telco/ Network Operator
User
Devices
Infrastructure

• Delivering rich 3G service portfolios require a
  multitude of players. Mobile operators will only
  be one of these players, having to deal with
  business models in complex partnerships and two
  broad sets of customers - end-users retail
  (B2C, B2B) - service/application/content
  providers wholesale (B2B2B, B2B2C)

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Approaching customers under different models
CUSTOMERS Consumers / Business
Partners who develop and provide
applications/services that run on the Proximus
network
PROXIMUS OFFER B2B RES
Content Providers
ISP
ASP
CONTENT PROVIDERS
PROXIMUS PORTAL MDG
CONTENT AGGREG.
NETWORK SERVICES OFFER
NETWORK SERVICES LAYER (Commercial access
proposition)
BEARER SERVICES LAYER (Core network business)
Proximus
Other Player
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Part of our future growth depends mobile data
services

• Data development are one of the axes that will
  support the revenue growth of any operator
• Business models are key to encourage merchants to
  develop offer a large portfolio of goods
  services
• Access for customers to those goods services
  should be secure easy to use
• Proximus needs to play an active role in
  developing data services
• The network services are a natural extension of
  Proximus existing business
• capacity to manage a large customer base (4.2 Mio
  active customers)
• ability to handle massive numbers of small
  transactions
• capability to bill and collect payments, to
  control access and spending and to prevent fraud
• telecom business is secure (both network
  devices)

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Proximus Value added NetworkServices Goals
Content Providers
ISP
ASP

• Revenue share business model
• Customer support
• Operational excellence
• Commercial support

Business Partners
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Third parties SMS wholesale
Technical configuration
And MMS or Location information
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And today, roles and responsibilities
Operator
Third party
Content provider
ProximusMobistarBase
e.g. Paratel, Netsize, Mcube, TMSC, Mobile Way,
Telitas, Wap MX, GSM Online, K-Mobile, Jippii
e.g. RTL, VTM, VT4WilstoDe Persgroep, Etri
Roles Responsibilities

• Short code
• Billing
• Network
• Support to 3rd party content provider
• End-User Support

• Gateway
• Coordination with mobile operators
• Application provider

• Customer service (opt-in/opt-out)
• Content offer
• Applications
• Marketing push

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The Value Chain
Application Provider
Gateway
ContentCreator
Content Provider
Merchant
Operator
End-user
Etri Reuters Digital Fun VTM VT4 Jim TV VUM ...
Etri Digital Fun Kiwee KMI VTM Jim
TV VUM Rendez-vous.be ...
Ring Ring Codepartners Zoyd NE Way ...
Etri Digital Fun Kiwee KMI TMF De
Standaard Rendez-vous.be ...
Telitas Goldenbytes Netsize Ring
Ring Paratel MCube
ProximusMobistar Base
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Agenda

• Belgacom Mobile The Company
• A changing market, and the Proximus approach
• From entertainment to integration in all business

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From Entertainment

• Existing business has started with mainly
  infotainment
• Logos and tones
• TV interaction
• This area of business continues to develop
  through more sophisticated applications
• Java gaming
• Music download
• Increased interactivity
• MMS wall papers
• The infotainment market is evolving from simple
  160 characters messaging to sophisticated
  applications as the handset market enables this
  type of applications.

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Proximus mobile business solutions

• Responding to 3 Business customers needs
• improve productivity
• control cost
• generate revenues
• A customised approach
• With partners to deliver end-to-end solutions

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To integration in all business

• Business outside the entertainment are now more
  and more entering the use of mobile device as
  development area
• Inclusion in distribution channel/process (i.e.
  use of sms for sales from a distance)
• Mobile becomes just another media in the
  marketing mix (i.e. mobile advertising)
• CRM tool (i.e. contacting the customer for
  confirming reservations to a seminar)
• Why?
• Penetration rates
• Customer intimacy
• Efficiency compared to other media

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Why? - Penetration rates SMS
The penetration of SMS is such that it covers an
extremely substantial part of the Belgian
population.
Basis GSM-users in Belgium
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Why? - Penetration rates SMS
(N400 Px customers 200 postpaid, 200 prepaid)
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Why? Customer intimacy

• A mobile phone gives access directly to the user
• In addition it is a personal object
• It is therefore a dream tool for any marketer, as
  it enables a direct personal contact with the
  consumer.
• Therefore it is also a tool to handle with care
  as wrong use will create more rejection than
  adherence
• E-mail was also considered as a dream tool ,
  however spamming lead to customer rejection
• Avoiding the e-mail spamming phenomena will only
  be achieved by remaining close to the consumer
  and the respect of the applicable laws
• opt-in, opt-out,
• clear and simple procedures,
• fair trade practices

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Why? Efficiency compared to other media
Push campaign One off Pull Continued dialogue
Action E-mail marketing action Retail promotion Loyalty scheme
Compared to Targeted e-mail mailing Free-phone response No comparable tool
Example Push SMS to promote event, call to action, Contest on FMCG product wrapping Regular SMS dialogue with customer (announcement, propositions)
Comment Cost per thousand 107 compared to 170 with e-mail - Cost comparable (125) - High response rates of 13 - Cost per thousand 111 - High level of interaction
Mobile marketing (in this case SMS), showed a
high efficiency both on cost and response rate.
Source Forrester research the marketeer guide
to sms
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Examples of new applications

• Estaimpuis information services to the citizen
• STIB/MIVB timetables
• National Lotery sms game
• De persgroep Immonet information service
• Forest National interactivity
• TVs, radios
• Mobile contest on candy bars
• Banking sector advertising
• Movie sector advertising
• Internet site
• Internet blogs
• Mobile gaming

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Further evolution

• SMS continues to develop itself strongly as it
  did over the past three years.
• MMS and Location will follow the same trend,
  while offering increased potentials thanks to its
  multi-media capabilities.
• Proximus will support actively the development of
  MMS like we did for SMS. As of the moment that
• There will be increased penetration
• Interoperability will be there
• The market will come to a technical maturity
• MMS will definitely be a killer application.
• MMS EXAMPLES
• .

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Conclusion

• As part of their strategy, Proximus has
  facilitated the use of SMS by third parties
• This has translated itself into first inclusion
  of the mobile device into entertainment sector
  through things like logos, ring tones, and TV
  interactivity with as main driver the generation
  of revenues
• More and more mobile is included in non
  entertainment business.
• Because mobile
• Have extremely high penetration rates
• Gives access to the customer like never before
• Is extremely efficient in reaching the consumer
• SMS, MMS and LBS provide enhanced possibilities
  that enlarge the tools that are available to
  support the business of any company in search of
  developing his activities.

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THANK YOU!

• Boris Lemaire
• Belgacom Mobile
• BMD Marketing Network Services
• Market Manager Network Services
• Boris.lemaire_at_proximus.net
• 32.2.205.41.24.