Achieving Cost-Effective And Successful
Communication With Your Customers
Thomas Rößler, 27th September 2004
O2 Germany GmbH & Co. OHG
Content
 The company O2 Germany
 Determining how to successfully communicate and distribute prepaid
services to your target market.
 Leveraging your communications channels to maximise service usage and
attract higher spending customers.
 Examining how to market additional services at the point at which
customers access their account details and recharge their accounts
 Targeted products, services and promotions.
 Exploiting new segmentation and profiling data to ensure that
you are communicating the right services to the right customers
individually.
The Company O2 Germany
Company Profile
Mobile Network
Customer Numbers O2 Germany
Sales & International Communications
With O2
Market Share Germany & ARPU
Employees
Company Profile
 O2 Germany (formerly VIAG Interkom) is a subsidiary of mmO2 plc.
 Network operator owning its own mobile telephone network.
 Innovative postpaid and prepaid products, mobile data services.
 More than 6.3 million customers (more than 2.6 million prepaid
customers) since June 2004 in Germany.
 Strengths of O2 Germany: one of the leading innovators in mobile data
services, exceptional service O2 Genion Homezone, almost total
mobile phone coverage via O2 Germany’s mobile network and national
roaming through the D1 network, established sales channels.
 Owns an UMTS licence.
 Goal of O2 Germany: consistent growth, continuous increase in market
share (revenue and customers)
Mobile Network
 GSM 1800 (E2) mobile communications network.
 Appr. 10,000 GSM and appr. 1,500 UMTS base stations in operation.
 Intelligent network which enables the Genion and Prepaid functionality.
 Virtually nation-wide coverage via O2 Germany’s mobile network and the
national roaming using the D1 network.
 National GPRS roaming in the D1 network, nation-wide data transfer
approaching ISDN speed in Germany.
 Even faster data transfer with UMTS (Laptop card for GPRS/UMTS
already offered).
 WLAN - very high transmission speed over 400 business relevant
hotsports such as airports or hotels.
© O2 Germany, August 2004
Customer Numbers O2 Germany & ARPU
7
6
Millions
5
4.3
4.1
5.3
5.0
4.8
4.6
6.3
6
5.6
4
Postpaid
Prepaid
Total
3
2
1
© O2 Germany, status 30 June, 2004
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04
0
44
45
11
11
46
43
46
45
44
45
11
12
12
11
10
11
11
Postpaid
Prepaid
20
Ju
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2
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04
00
4
03
D
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20
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20
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© O2 Germany, status 30 June, 2004
rt
o
ar
te
qu
45
* base: quarter-ARPU
02
Euro
50
45
40
35
30
25
20
15
10
5
0
Sales & International Communications With O2
 Appr. 470 o2 shops throughout Germany
 Own shops, Partner shops, Franchise, Shop-in-shops with Vobis
 Currently around 9,000 specialist dealers, wholesalers and other
established sales channels.
 International roaming with more than 298 partners in 148 countries
enabling convenient calling round the world.
 International GRPS roaming with more than 30 partners for very
widespread data communication
– GPRS roaming: 44 networks in 43 countries
– GSM roaming: 296 networks in 142 countries
© O2 Germany, August 2004
Market Share Germany, based on Revenue for FY
2003/2004
O2
10.3%
E-Plus
11.9%
T-Mobile
40.8%
Vodafone
37.0%
Source: quarterly and annual reports
(for Vodafone & O2: revenue FY 03/04; E-Plus & T-Mobile: cumulative revenue for April 03 to March 04)
© O2 Germany, status 31 March, 2004
Employees
6000
5000
4000
3000
* since March
2001 without
employees of
BT Ignite
2000
1000
© O2 Germany, status 30 June, 2004
04
Ju
n
03
D
ec
03
Ju
n
02
D
ec
02
Ju
n
01
D
ec
01
Ju
n
20
00
19
98
19
96
0
The Project
Project Framework
The Marketing Engine To Serve All
Your Prepaid Customers
Architectural Overview
Project Framework
 Project was initially a cost saving initiative, therefore the business case
was crucial (CAPEX and OPEX consideration); See also optimized H/W
configuration).
 Timeframe was limited for realisation (window of opportunity).
 Sicap PABQ (Prepaid Account Balance Query) application was selceted to
reduce costly IVR calls which are offered for free to Prepay customers to
check the balance.
 No/limited IT impact to eliminate dependencies from IT release planning.
 Almost no Marketing involvement required, except definition of access
code:
*
1
0
1
#
The Marketing Engine To Serve All Your Prepaid
Customers
 Two rack units support all Prepaid
customers.
 2x SUN Netra T1 AC200 as an
optimized hardware configuration to
radically optimize the CAPEX
investment.
 Sicap IWU and UMB application
deployed on the same redundant SUN
servers (two servers in total).
 Capacity is more than sufficient and can
be easily expanded by quickly adding
more licenses (software based).
Architectural Overview
SCP
TRö
NW-5
Application Server
[IF-4]
NW-9
MSC-HLR
OIS
NW-1
NW-4
STP
 OIS (Open Interface System)
integration via Corba/XML
(new for Sicap).
[IF-3]
[IF-1]
Sicap USSD Gateway
(PABQ)
[IF-2]
IWU
NW-2
UMB
[IF-9]
NW-3
[IF-5]
[IF-5]
UMC
[IF-8]
USSD CBS
NW-6
NW-8
[IF-6]
[IF-7]
Provisioning
Interface to be
Implemented
Existing
Interface
Out of
Scope
 Architecture is open for
additional internal and external
application service
developments.
OA & M
MDS
NW-7
IT-1
 Sicap UMC initially choosen
as an interim O&M tool (new).
 Proprietary Interface to be
developed (Corba/XML)
towards SCP account via
Open Interface System (OIS)
utilizing Corba/XML
Marketing Aspects
USSD As An Important Marketing
Channel
Increasingly Success With USSD
Service Usage
Additional Services Realised
Applications & Services Under
Investigation
USSD Application As An Important Marketing Channel
 Marketing insists now on using the
USSD string as a communications
channel on a permanent basis (other
than originally planned).
Your balance is
9,35 EUR
Your
Advertisement
could be here
 USSD campaigns are on a permanent
basis now (24h change process); Two
campaings can run in parallel.
 USSD is a fast service (appr. 7s
response), cheap in operation, flexible
to Marketing plans and extremly
effective!
 USSD advertisement string as a
Marketing Channel multiplies the replies
to service promotions and APRU
generation.
Note: Maximum length of USSD string limited with Trium handsets (non GSM standard)
limits the advertisement text possible !
Increasingly Success With USSD Service Usage
~ 350k
~ 700k
Additional Services Realised
 Added account expiry date information as an application.
– Business Case to reduce inquiries to the customer care center.
– individual promotion text possible.
 Added Sicap UMB (USSD Menu Browsing) application.
*
1
0
0
#
: to access the USSD menu
*
1
0
1
#
: for balance inquiries
*
1
0
2
#
: for balance expiry date information
Note: Watch your access network capacity !
Applications & Services Under Investigation
 Enable nationwide usage of USSD by USSD stage 2 in national roaming
environment or HLR ´update´ to support stage 1.
 Service Provider Support (MVNOs with own brand).
 Investigate and eventually promote International Roaming usage.
 Investigate Alternative Recharge applications.
 Take ideas from this Prepaid Mobile Conference.....
Thank You For Your Attention !
 Questions & Answers
 Contact: thomas.roessler@o2.com
 O2 Can Do !