Challenges and opportunities in a competitive environment

1
Challenges and opportunities in a competitive
environment

03.05.2005
Nils Melngailis CEO SIA Lattelekom
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Challenges
Legislation
Public Utility Commissions decisions
EU Directives
Universal Service obligations
Interconnection tariffs
Scarce resources
Retail tariffs
Competition
3rd mobile voiceoperator
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Development of Telecommunications Retail Market

• Declining fixed voice volume (by 25-30 during
  next 5 years), gradual tariff rebalancing
  included in this scenario
• Fast growth of mobile telephony (penetration
  exceeding 80 in 2006) while volume in money
  terms almost stable during next 5 years
• Fixed data segment will about double during next
  5 years

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Lattelekom core and related business strategy
Corporate accounts
Residential customers

• Fixed Voice
• Mobile Voice
• Data and Internet
• IT infrastructure
• IT services
• BPO

• Fixed voice
• Mobile voice
• Internet
• TV

Core businesses
SME
Network
Call Center Business Process Outsourcing

• Network Maintenance

Related businesses
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In todays economy business models are changing
towards decapitalized New Economy
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Lattelekom - an example of a major business
transformation
After
Before
IT
Sales marketing
Sales marketing
Billing
Network Operations
Shared services (HR, project mgmt)
Network Operations
Finance Acc.
Procurement
Transportation
Property mgmt
HR mgmt
Training
IT
Call centre services
Network Maintenance
Billing
Customer care
Fleet mgmt, leasing
Property mgmt
Training
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The Baltic Region from todays perspective
Europe
Source Observer Latvia, 2005 European
Information Technology Observatory, 2004
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Joint efforts to make the connected economy a
reality

• Government
• Efficiency
• Legal framework
• Export policies
• Education and RD
• Business
• Consolidation and economies of scale
• Partnerships
• Cross-border cooperation

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Thank you!

• Nils.Melngailis_at_lattelekom.lv
• www.lattelekom.lv