This document discusses retention strategies for fixed network operators to counter challenges from growing mobile networks. It outlines key trends showing mobile subscriber growth exceeding fixed lines globally and in Africa. Fixed operators face challenges like high infrastructure costs and liberalized markets. The document recommends focusing on customer retention through strategies like delighting customers, adding perceived value, building bonds and engagement across the customer lifecycle. It suggests leveraging existing fixed network infrastructure through convergence of fixed and mobile networks, triple/quadruple play offerings, international cables, and corporate services. The conclusion is that fixed operators still have opportunities as backbone providers and meeting growing bandwidth demand through innovative strategies.

1. Retention Strategies For Fixed
Operators
Edward Emmanuel
Tanzania Telecom
Vs Mobile Counterparts

2. Agenda
Global ICT Development
Key ICT Indicators for Africa
Challenges facing Fixed operators
Retention Strategies for fixed Operators
Conclusion

3. World Trends

4. Observation on Trends
 In 2002, the number of Mobile Subscribers (1.17b)
surpassed for the first time the number of fixed lines
(1.09b) worldwide
 In 2005 the number of Mobile Subscribers on every
continent exceeded the number of fixed lines in
service
 In terms of growth, the number of Mobile
Subscribers almost Doubled (2.18b) while that of
fixed barely grew (1.23b) in 2005

5. Africa: Subscribers (mil)
400
350
300
250 Mobile Broadband
Mobile Subs
200 Fixed Lines
Fixed Broadband
150 Internet Users
100
50
0
2005 2006 2007 2008 2009 2010
Source: ITU 2011.

6. Africa: Penetration (100 inhts)
50
45
40
35
Fixed Lines
30
Mobile Subs
25
Mobile Broadband
20
Fixed Broadband
15 Internet Users
10
5
0
2005 2006 2007 2008 2009 2010
Source: ITU 2011.

7. Observation
 Africa is the fastest growing mobile market in the world (ITU)
 A major reason for the boom is that Africa lags far behind other
continents when it comes to fixed-line phone subscribers
 Africa lacks an investment-intensive infrastructure, e.g., fixed telephone
line and fixed broadband infrastructure
 the large costs of stringing up telephone wires so far has not been
economically viable
 The establishment of mobile phone networks has also defied structures
hostile to investments, warfare, failed states and natural disasters
 Intense competition has pitted once powerful monopoly fixed Networks
against rapidly growing Mobile Networks

8. Challenges Facing Fixed Network
 Lack of investment-intensive infrastructure, e.g., fixed
telephone line and fixed broadband infrastructure
 High costs inputting up Fixed Network to address the raising
Demand
 Liberalization of the Telecommunication markets v. Readiness
of the Fixed Operators to compete
 Decline of Fixed Telephony Revenues and subscribers
 Business models, company culture, organizational structure
and identities of Fixed Operators
 Thus Fixed line Sector remains the least dynamic sector – While
the number of fixed lines have been falling in Developed
counties, they are developing very slow in developing world
(ITU)

9. What Next For The Fixed
Operators?
Retention Strategies

10. Manage Customer Process
Identify
Customer
 Transforming the
Expectations
Business Models
 Align the Strategic
Integrate Measure
across the Customer Choices and
Business Lifetime Value
capabilities to the
specific needs of the
customers
 Greater Customer
Manage
Intimacy
Manage
Customer
Customer
Experience
Information as  Need based
strategic Asset
Segmentation
Align Strategy
with Customer
 Time to deliver
Values and
Expectations
Source: BMI Institute of Business Value

11. Elements of Customer Life Cycle
• Awareness • Acquisition
Identify Brand Retails Shops,
values for Different Websites,
target segments to multichannel contact
centers are critical
inform Innovative customer Touch points
Market & Product that can provide
campaign differentiation
Billing and Network Features,
Payment, customer innovative services
care, marketing and solutions
and other intelligently priced
communication and bundled are
present critical for Revenue
opportunities for stimulation and
improved customer differentiation
experience
• Retention • Growth

12. Positive Retention Strategies
1. Creating customer delight
2. Adding Customer perceived value
3. Creating Bonds
4. Building Customer Engagement

13. 1. Customer Delight
 Meeting and exceeding customer expectations
 Understand customers, and then acquire and deploy
resources to ensure their satisfaction and retention
 Going beyond what would normally satisfy the
customer.
 Being aware of what it usually takes to satisfy the
customer and what it might take to delight or
pleasantly surprise the customer.

14. 2. Customer-perceived value
 Companies can explore ways to create additional
value for customers
 The ideal is to add value for customers without
creating additional costs for the company
 If costs are incurred then the value-adds may be
expected to recover those costs e.g
 Loyalty schemes
 Customer clubs
 Sales promotions

15. 3. Bonding
 Social bonds
 positiveinterpersonal relationships between people on
both sides of the customer-supplier dyad
 Structural bonds
 when companies and customers commit resources to a
relationship.
 these resources yield mutual benefits for the
participants
 Resources committed to a relationship may or may not
be recoverable if the relationship breaks down

16. 4. Build customer engagement
 Highly engaged customers have levels of emotional
or rational attachment or commitment to a brand,
experience or organization that are so strong that
they are highly resistant to competitive influence

17. Making Use Of The Available Infrastructure

18. Convergence
• Seamless connectivity between fixed and
 Fixed Mobile wireless telecommunications networks
Convergence • Provide services to users irrespective of
location, access technology, and
(FMC) terminal.
• Build and offer multiple services out of,
integrated or converged networks, fixed
and mobile
• Wide coverage remains the viable & Cost
 Telco Media effective option for deploying services
• Broadband technologies enable
Convergence operators to broadcast or stream
multimedia signals to their subscribers
(TMC) • Engage in complex web of collaboration
with the media and entertainment, IT
• Partner to create value

19. Triple Play/Quad play
 Explosion in data service
revenues
 High demand of data
related services
 Narrow Consumer Options
and search costs
Triple play: the provision of two bandwidth-
intensive services - high speed internet access
and television – with a less bandwidth-
intensive service, fixed line telephone.
Quadruple Play is a triple Play that adds
Wireless or Mobile telephony Services

20. International Data Cables
 Arrival of several
international data cables
 Rising demands for major
Bandwidths
 Cross border connectivity
 Backhaul connectivity is
crucial because it
enables transmission of
intra-regional and other
international traffic

21. Existing Service
 Make use of all services available in the Fixed
Network
 Corporate services and solutions such as data virtual
private networks (VPNs) and multi-protocol label switching
(MPLS)
 Data products and services such as broadband and fixed-
lines
 Whole sale Business: providing guaranteed bandwidth to
businesses between major commercial centres

22. Conclusion
 Fixed-line telecommunication Opportunity as backbone providers (fiber optic
network, for the Internet, and fixed lines still provide the fastest data speeds by
far)
 Growing customer demand for higher bandwidths and the time to deliver
 Customers do not care what technology is used to transmit their data or how
the Functions they use are supported. Their primary concern is service that
addresses their needs
 Success will depend on each players ability to combine its own differentiating
strengths (such as Customer Management, network assets and service
creation with the capabilities of partners to create seamless communication
services that meet the needs of targeted customer segments - IBM

23. END OF PRESENTATION
Thank you