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Product Development for Optimal FTTH Take-up Boro Petkoski, Makedonski Telekom AD, Deutsche Telekom Group 28 April 2010 1.

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Presentation on theme: "Product Development for Optimal FTTH Take-up Boro Petkoski, Makedonski Telekom AD, Deutsche Telekom Group 28 April 2010 1."— Presentation transcript:

1 Product Development for Optimal FTTH Take-up Boro Petkoski, Makedonski Telekom AD, Deutsche Telekom Group 28 April

2 Agenda 2  Background  Growing bandwidth needs  Residential portfolio (FTTH)  Business portfolio (FTTB)  How to maximize value for customers?  How to accelerate FTTH take-up?  What else is important?  Conclusion  Resources

3 Background 3 Makedonski Telekom:  Incumbent telecom company in Macedonia  Part of Deutsche Telekom Group Macedonian broadband Internet market:  64 ISPs  4Play, 3Play, 2Play available  40% household penetration  270,000 customers  49% Makedonski Telekom retail market share

4 Growing bandwidth needs Order new snickers with IPTV Banner Download the Latest Tunes for iPod Stream YouTube videos about a friends wedding Watch show on Demand Answer Video Call on TV Work From Home Download the news as Podcast Make international VoIP Calls Transfer VoD to The Car Watch additional TV Stream Gaming More than 21 Mbps DSL is not sufficient anymore „Copper, great for pipe work, not so great for YouTube”

5 First FTTH products introduced in Macedonian market in December

6 Residential portfolio (FTTH) 6 Max Optic Call & Surf Optic 3 Max Optic

7 Business portfolio (FTTB) 7 Max Optic Pro Office Complete Optic

8 How to maximize value for customers? ? 8

9 Residential products 9 20/20 Mbps 30/30 Mbps 40/40 Mbps 30 GB60 GB300 GB 200 min.500 min. Unlimite d Unlimited calls within community 60 chan.80 chan. EPG, Pause, FF/RW, Rec, PinP 5 € Premium* *Monthly FTTH price premium above ADSL. 6/0.75 Mbps 8/0.75 Mbps 10/0.75 Mbps 15 GB30 GB150 GB 200 min.500 min. Unlimite d Unlimited calls within community 60 chan.80 chan. EPG, Pause, FF/RW, Rec, PinP FTTHvs. ADSL > = =

10 Business products 10 45/45 Mbps 50/50 Mbps 60/60 Mbps 60 GB140 GB600 GB 300 min.600 min. Unlimite d Discounted local, nat’l & int’l traffic 10 € Premium* *Monthly FTTB price premium above ADSL. 12/1 Mbps 14/1 Mbps 16/1 Mbps 30 GB70 GB400 GB 300 min.600 min. Unlimite d Discounted local, nat’l & int’l traffic FTTBvs. ADSL > =

11 Value proposition 11  Download speed x 4  Upload speed x 50  Internet traffic x 2  Monthly price premium:  5 € residential  10 € business Up to 60 Mbps symmetrical Unique in the market

12 How to accelerate FTTH take-up? ? 12

13 Free installation 13  Free installation of FTTH service with one- year contract

14 3 months trial 14  Try FTTH 3 months for the price of ADSL  Can return to ADSL if not satisfied  No cost & no risk to try FTTH

15 Gift wireless router 15  Wireless router as a gift with a one-year FTTH contract

16 2 nd phone line 16  Second telephone line with separate number at no additional charge

17 Free HD TV channels 17  Viewing HD TV channels 3 months free in HD

18 An offer you can‘t refuse? 18  Download speed x 4  Upload speed x 50  Internet traffic x 2  Free installation  3 months trial  Gift wireless router  2 nd phone line  HD TV channels + Up to 60 Mbps symmetrical Unique in the market

19 What else is important? ? 19

20 Strong marketing communication  Direct mail (letters & brochures) to FTTH-passed homes  Posters & stickers in FTTH-passed buildings  Local promotions and direct contacts with prospects  POSM in retail stores  Online

21 Strong PR  Press releases  Interviews  Endorsements  Online

22 Dedicated sales force 22  Telesales  Door-to-door sales  Retail stores  Online sales Source: flickr.com

23 Selection of high-potential deployment areas 23  Densely populated urban areas  Multiple dwelling units  High broadband penetration  High purchasing power 1

24 Rapid network deployment & installation 24  Construction permits  Home-owner consents  Installation capacity

25 Positive word of mouth 25  Neighbors talk  Word of mouth spreads fast  Strong impact on sales Source: flickr.com

26 Conclusion  Attractive products are key  Speed sells, but may not be enough  Market penetration vs. market skimming  Without special incentives, most customers don’t immediately grab FTTH

27 ... also important 27  Strong marketing communication  Strong PR  Dedicated sales force  Selection of high-potential deployment areas  Rapid network deployment & installation  Positive word of mouth

28 Resources 28 Useful information available in: “FTTH Business Guide“ Published by: Free download:

29 Back Up. Thank you. Boro Petkoski Makedonski Telekom AD Deutsche Telekom Group


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