D ISP Overviews
Julian Herbert
www.point-topic.com
28 January 2005
ISP Overviews
• Background
• The six ISPS
– Summary
– Highlights
– Propositions
www.point-topic.com
2
ISP Overviews
• Background
• The six ISPS
– Summary
– Highlights
• Propositions
www.point-topic.com
3
Background
• Profiles of six ISPs
• All from outside UK
• Pioneers in marketing particular value-added
applications
www.point-topic.com
4
ISP Overviews
• Background
• The six ISPS
– Summary
– Highlights
• Propositions
www.point-topic.com
5
The six ISPs
Overview
ISP
Country
Value-added offering
Bell Canada
Canada
Security services for residential and business
customers
Catch
Communications
Norway
Business-focused ISP that aims to make VPNs
cheaper and simpler
FastWeb
Italy
Strong video and TV element in a triple-play
bundle
Free
France
Voice-over-IP as part of residential triple-play
bundles
SingTel
Singapore
Turbo button to boost download speeds
Sprint
USA
Bundled DSL, telephone and mobile offering to
retain customers and maintain revenue
www.point-topic.com
6
Bell Canada – Simpatico
Summary
Security for residential & business customers
• Uses ‘white label’ security services from Zero Knowledge
Systems (ZKS).
• Customer opts to receive security report about threats
which have been intercepted. Report = marketing and
communications opportunity
• Anti-virus, Anti-spyware, Firewall package free for 6
months and C$10.90 a month thereafter; equivalent to
19% of monthly ARPU
• Improves customer retention: ZKS claim customers with
security option are 30% less likely to churn
www.point-topic.com
7
Bell Canada – Simpatico
Highlights
• Service deliberately simplified compared to shrinkwrapped alternatives
• Marketing and communications opportunities to
subscribers via a useful service
• Increase ARPU across a wide range of consumers
(around C$11 or 19% of monthly ARPU)
• Service can be licensed on up to 3 PCs per
household
www.point-topic.com
8
Bell Canada – Simpatico
Propositions
• Have you had a computer virus infection?
• Do you pay for Anti-virus/firewall/anti-spyware etc at
the moment?
• Would you pay £4.60 a month for your broadband
security?
www.point-topic.com
9
Catch Communications (Norway)
Summary
Business-focused ISP makes VPNs cheaper, simpler
• Ethernet-based network provides MPLS based IP
VPN services comparable in quality to frame relay
• Success in attracting price sensitive public sector
customers
• Average monthly revenue per site of about $500
www.point-topic.com
10
Catch Communications (Norway)
Highlights
• IP core network and DSL focus
• Winning frame relay and VPN customers with easyto-install solutions
• Recognise that quality has to be better, price lower, to
overcome inertia
www.point-topic.com
11
Catch Communications (Norway)
Propositions
• Join your multi-site business for $550/site/month
(approx. £290)
• You can have an SLA that’s better than for frame
relay (although not quite as good as for SDH leased
line), and at less cost
www.point-topic.com
12
FastWeb (Italy)
Summary
Strong video and TV element in a triple-play bundle
• Security services for residential and business
customers
• Full ‘triple play’ package (broadcast and on-demand
video, PVR services, telephony, HSI
• Video telephony option
• Competitively priced bundles (€25, €75, €95/month)
• VoD and PVR contribute 11% of total ARPU
• Video penetrates 41% of customer base
www.point-topic.com
13
FastWeb (Italy)
Highlights
• Pure IP network, mainly owned by FastWeb, using
DSL and fibre
• Good value plug and play service bundle deployed
rapidly
• Initial focus on just 6 cities
• Video and TV will increasingly drive revenue
• Not required to develop emergency call service, so
VoIP market stimulated
www.point-topic.com
14
FastWeb (Italy)
Propositions
• Structured service bundles for €25, €75, €95 monthly
• Video telephony – camera for €5/month, free calls to
other FastWeb subscribers, vs €1 Euro/min to ISDN
videoconferencing line (ie at an office)
• Video on demand – library of 1000+ titles, at €4 for a
back catalogue film, €6 for a ‘latest release’
www.point-topic.com
15
Free (France)
Summary
Voice over IP as part of residential triple play bundle
• Triple play bundles comprises HIS, TV and Phone for
flat monthly rate €29.99
• Proprietary nationwide network (12,000km optical
network, 220 ADMs, 1500 DSLAMs, equipment in
602 France Telecom exchanges
• ADSL 2+ launched July 2004
• 1 million customers at end 2004
www.point-topic.com
16
Free (France)
Highlights
• VoIP switches and gateways deployed as part of
extensive proprietary national network
• Highest penetration of primary voice line customers
of any broadband network in France
• Free calls to any fixed line number in mainland
France
• Customer base growing at 18% quarter on quarter in
2004
www.point-topic.com
17
Free (France)
Propositions
• Do you currently use voice over IP services, either
through your broadband provider or through software
based solution such as Skype?
• Would VoIP be compelling as a primary line
replacement or just for secondary line?
• How complicated does setting up a VoIP service
appear to be?
www.point-topic.com
18
SingTel (Singapore)
Summary
‘Turbo’ button to boost download speed
• BOD service launched July 2003
• Connection speed increased ‘on demand’ at a price
based on data consumption; overage = S$0.3/Mb
• Users log-in to high bandwidth service through a
different domain
• Increases bandwidth from 512kb to 1.5Mb
www.point-topic.com
19
SingTel (Singapore)
Highlights
• Speed top up available to some broadband users
• Other operators have trialled this (NTL - 'Turbo')
• SingTel sells BOD on top of a relatively complex
range of broadband and 'midband' products
www.point-topic.com
20
SingTel (Singapore)
Propositions
• How fast do you think broadband is? 500k? 1 Mbps?
(use examples of song download times).
• Roughly how much data do you think you download
in a month? (1 Megabyte, 10 Megabytes, 100
Megabytes, 1000 Megabytes (=1 Gigabyte), 10
Gigabytes, 100 Gigabytes?)
• Would you pay less if you could only use fast
broadband during evenings and at nights, or at
weekends?
www.point-topic.com
21
Sprint (USA)
Summary
Bundled DSL, telephone, mobile retains customers
• Packages tie together fixed (local/long distance)
offering with Sprint PCS mobile offering
• Offers incentive to Sprint DSL customers to become
Sprint PCS customers
• Subscribers to all services benefit from c. $15/month
off DSL csot and free calls between home and PCS
• Market limited to intersection comprising local
exchange customers on DSL enabled exchanges in
areas of Sprint PCS coverage
www.point-topic.com
22
Sprint (USA)
Highlights
• Nearly 70% of local exchange customers puchase
additional mobile or DSL packages
• Data is the only fixed line of business which
increased revenue in Q3 2004, thanks largely to
increase in DSL take up
• Range of bundled packages, based around
subscribing to a Sprint local exchange service in one
of 18 states
• Revenue growth from installed customer base heavily
offsets overall revenue decline being experienced by
Sprint in the local exchange market
www.point-topic.com
23
Sprint (USA)
Propositions
• Do you think bundling services together would save
you money in the long term - or is it better to keep
elements separate and to shop around?
• How much of an advantage is it to have all three
services on a single bill?
• If you buy a bundle of services are you concerned
that one or more of them might not be the best for
your particular needs - such as including the mobile
company which gives the best local fixed service?
www.point-topic.com
24
Julian Herbert
020 7551 9260
www.point-topic.com
julian.herbert@point-topic.com
www.point-topic.com
25