Product Development
for Optimal FTTH Take-up
Boro Petkoski, Makedonski Telekom AD, Deutsche Telekom Group
28 April 2010
1
Agenda

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
2
Background
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
3
Transfer VoD to The Car
Growing bandwidth needs
Stream YouTube videos about
a friends wedding
„Copper, great for
DSL
is
not
pipe work,
not 21
so
More
than
greatsufficient
for YouTube”
Make international VoIP Calls
Mbps
anymore
Download the news as
Podcast
Watch additional TV
Stream
Order new snickers with IPTV
Banner
Download the Latest Tunes
for iPod
Work From Home
Answer Video Call on TV
Watch show on Demand
Gaming
First FTTH products introduced
in Macedonian market in December 2009.
5
Residential portfolio (FTTH)
3 Max Optic
Call & Surf Optic
Max Optic
6
Business portfolio (FTTB)
Office Complete Optic
Max Optic Pro
7
How to maximize value for customers?
8
Residential products
FTTH
vs.
20/20 Mbps 30/30 Mbps 40/40 Mbps
30 GB
60 GB
300 GB
6/0.75
Mbps
8/0.75
Mbps
10/0.75
Mbps
15 GB
30 GB
150 GB
Unlimite
200 min. 500 min.
d
Unlimite
= 200 min. 500 min.
d
Unlimited calls within
60 chan. community
80 chan. 80 chan.
Unlimited calls within
60 chan. community
80 chan. 80 chan.
EPG, Pause, FF/RW, Rec, PinP
Premium*
>
ADSL
5€
5€
*Monthly FTTH price premium above ADSL.
=
EPG, Pause, FF/RW, Rec, PinP
5€
9
Business products
FTTB
vs.
45/45 Mbps 50/50 Mbps 60/60 Mbps
60 GB
140 GB
600 GB
Unlimite
300 min. 600 min.
d
Premium*
Discounted local, nat’l & int’l
traffic
10 €
10 €
10 €
*Monthly FTTB price premium above ADSL.
>
ADSL
12/1
Mbps
14/1
Mbps
16/1
Mbps
30 GB
70 GB
400 GB
Unlimite
= 300 min. 600 min.
d
Discounted local, nat’l & int’l
traffic
10
Value proposition

Download speed x 4

Upload speed x 50

Internet traffic x 2

Monthly price premium:


5 € residential
10 € business
11
How to accelerate FTTH take-up?
12
Free installation

Free installation of FTTH service with one-year contract
13
3 months trial

Try FTTH 3 months for the price of ADSL

Can return to ADSL if not satisfied

No cost & no risk to try FTTH
14
Gift wireless router

Wireless router as a gift with a one-year FTTH contract
15
2nd phone line

Second telephone line with separate number at no additional charge
16
Free HD TV channels

Viewing HD TV channels 3 months free
in HD
17
An offer you can‘t refuse?

Download speed x 4

Upload speed x 50

Internet traffic x 2
+

Free installation

3 months trial

Gift wireless router

2nd phone line

HD TV channels
18
What else is important?
19
Strong marketing
communication
Strong PR

Telesales

Door-to-door sales

Retail stores

Online sales
Source: flickr.com
Dedicated sales force
22
Selection of high-potential deployment areas

Densely populated urban areas

Multiple dwelling units

High broadband penetration

High purchasing power
1
23
Rapid network deployment & installation

Construction permits

Home-owner consents

Installation capacity
24

Neighbors talk

Word of mouth spreads fast

Strong impact on sales
Source: flickr.com
Positive word of mouth
25
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
26
... also important

Strong marketing communication

Strong PR

Dedicated sales force

Selection of high-potential deployment areas

Rapid network deployment & installation

Positive word of mouth
27
Resources
Useful information available in:
“FTTH Business Guide“
Published by:
Free download: http://ftthcouncil.eu/
28
Back Up.
Thank you.
Boro Petkoski
Makedonski Telekom AD
Deutsche Telekom Group
boro.petkoski@telekom.mk