speech at SIMCEL seminar in UADE

1. masificació
Hacia la masificación de los servicios de
mó
banda ancha móvil
dos dimensiones importantes
By eduardo griffa
CU PRincipal &
Lead transformation consultant

2. http://www.youtube.com/watch?v=i5AuzQXBsG4

3. Five technological revolutions in 240
years
1971
IT & telecommunication
1908
Automobile, oil & mass production
1875
Steel & heavy engineering
1829
Steam, coal, iron & railways
Source: Professor Carlota Perez
1771 Universities of Cambridge, Tallinn and Sussex
The industrial revolution
Public | © Ericsson AB 2011 | 2011-01-25 | Page 3

4. Technological revolution
Propagates in two different periods
INSTALLATION DEPLOYMENT
Turning
point
More efficiently solving Applying paradigm to
old problems - winners innovate across society –
among old players new winners
Time
20-30 years 20-30 years Source: Professor Carlota Perez
Universities of Cambridge, Tallinn and Sussex
Broadband at turning point
Public | © Ericsson AB 2011 | 2011-01-25 | Page 4

5. Agenda
INDUSTRY CHALLENGES
HOW MUCH INTEGRATED IS YOUR FACTORY ?
HOW IS IT REALLY LIKE TO BE YOUR
CUSTOMER ?
CONCLUSSIONS
Public | © Ericsson AB 2011 | 2011-01-25 | Page 5

6. Agenda
INDUSTRY CHALLENGES
HOW MUCH INTEGRATED IS YOUR FACTORY ?
HOW IS IT REALLY LIKE TO BE YOUR
CUSTOMER ?
CONCLUSSIONS
Public | © Ericsson AB 2011 | 2011-01-25 | Page 6

7. Speed of change
Public | © Ericsson AB 2011 | 2011-01-25 | Page 7

8. Market trends 2011
GOING MOBILE: VIDEO, CLOUD
SERVICES, INTERNET & M2M
MORE CONNECTED DEVICES &
AFFORDABLE SMARTPHONES
TIERED PRICING & NEW BUSINESS
MODELS FOR MOBILE BROADBAND
MODERNIZATION OF NETWORKS,
OSS/BSS & OPERATIONS
FOCUS ON HIGH PERFORMANCE
BROADBAND NETWORKS
Source: Hans W in Sales Summitt 2011 and Q4 10 result presentation
Public | © Ericsson AB 2011 | 2011-01-25 | Page 8

9. The new broadband world
Device Resource Content and Power Business
Applications
Momentum Utlization apps storage Consumption Models
Shared Dedicated Defined & tested Own device Irrelevant One size fits all
Personal Shared 100s per day Cloud Low Differentiated
Public | © Ericsson AB 2011 | 2011-01-25 | Page 9

10. Cost efficiency is not the only
challenge
What are the key drivers What does business
of satisfaction of my innovation mean?
What are my
customers ? customers’ pain
points ?
Where do you
Is the network a prioritize
differentiator ? business innovation?
How to use the technology
as an enabler of cost How efficient are my
reduction in business operations ? How do I
processes ? benchmark ?
Do I need to invest to save ? Do I have to reduce Costs
first and then increase the
revenues ?
Driving down cost is
important -
Do I have to Optimize or do
but far from enough I have to develop (enable)
new things ?
Public | © Ericsson AB 2011 | 2011-01-25 | Page 10

11. Two important dimensions
High
Level of integration of
"factory"
Med.
Low
Low Middle High
Level of customer centricity
of organization and product portfolio
Public | © Ericsson AB 2011 | 2011-01-25 | Page 11

12. Agenda
INDUSTRY CHALLENGES
HOW MUCH INTEGRATED IS YOUR FACTORY ?
HOW IS IT REALLY LIKE TO BE YOUR
CUSTOMER ?
CONCLUSSIONS
Public | © Ericsson AB 2011 | 2011-01-25 | Page 12

13. Traffic and revenue decoupled…
Traffic
Revenue & Traffic
De-Coupled
Revenues
Voice Dominant Mobile Broadband Dominant
Time
Source: Light Reading
Public | © Ericsson AB 2011 | 2011-01-25 | Page 13

14. adjusting the image…
Traffic
Cost/GB
Time
Source: Light Reading
Public | © Ericsson AB 2011 | 2011-01-25 | Page 14

15. Agenda
INDUSTRY CHALLENGES
HOW MUCH INTEGRATED IS YOUR FACTORY ?
HOW IS IT REALLY LIKE TO BE YOUR
CUSTOMER ?
CONCLUSSIONS
Public | © Ericsson AB 2011 | 2011-01-25 | Page 15

16. Customer experience in telecom
trailing other industries
Indexed customer
satisfaction
100
90
84 84 83 83 82
80 79
76 75 75 74 74 74 74
72 71
70 69
64
60
0
Automot. Credit ElectronicsInternet Express Life Super Banks Hotels Utilities Internet Motion Postal Fixed tel. Cable Wireless Airlines
Unions search Delivery Insurance markets News Pictures Service service TV tel. service
engines
Note: maximum rating is 100
Source: ACSI 2009
Public | © Ericsson AB 2011 | 2011-01-25 | Page 16

17. SIX KEY drivers of customer
experience
CUSTOMER EXPERIENCE RELATIVE
SATISFACTION DRIVERS WEIGHT1
It is easy to join us
1 Purchase process
› ~50
2 Service installation
›
Dealing with us is a pleasure
3 Response to an enquiry
› ~50
4 Problems (e.g. “I cannot access internet")
›
5 Invoice (e.g. “The amount is different than in the
›
~70
agreement")
Recognition - we value our loyal customers
6 Agreement prolongation (e.g. “I have worse
› ~60
contractual terms than new customers")
Note: Share of respondents mentioning as top three pain-point or satisfaction driver
Source: BCG
Public | © Ericsson AB 2011 | 2011-01-25 | Page 17
Source: BCG

18. Agenda
INDUSTRY CHALLENGES
HOW MUCH INTEGRATED IS YOUR FACTORY ?
HOW IS IT REALLY LIKE TO BE YOUR
CUSTOMER ?
CONCLUSSIONS
Public | © Ericsson AB 2011 | 2011-01-25 | Page 18

19. Two important dimensions
High
Level of integration of
"factory"
Med.
Low
Low Middle High
Level of customer centricity
of organization and product portfolio
Public | © Ericsson AB 2011 | 2011-01-25 | Page 19

20. The result of transformation
Operators can gain 30-40% OPEX savings
...and be prepared for future growth
Operators can grow their traffic 100
times ...and still keep control of the CAPEX
Operators can reduce cost ...and increase
Customer experience. They can also
decrease unit costs for voice by up to 75%
…and for broadband by up to 95%
Public | © Ericsson AB 2011 | 2011-01-25 | Page 20

21. What are the big guys doing ?
Public | © Ericsson AB 2011 | 2011-01-25 | Page 21

22. What is your
Transformation approach?
1 Front
High runners
Level of integration of "factory"
2 Selective
transformers
Med.
3
Integration
skeptics
Low
Low Middle High
Level of customer centricity
of organization and product portfolio
Public | © Ericsson AB 2011 | 2011-01-25 | Page 22

23. Public | © Ericsson AB 2011 | 2011-01-25 | Page 23

24. Financial result of Telstra’s
Transformation
FINANCIAL BENEFITS CAME AFTER 5 YEARS 6-8% LOWER CAPEX/SALES RATIO
CAPEX/Sales Ratio (%)
$5B SALES GROWTH
Reduced cost ...and increased
customer experience
Unit costs are decreased for voice service
by 75% …and for broadband by 95%
Public | © Ericsson AB 2011 | 2011-01-25 | Page 24 Source: Telstra’s Investor Day presentations, October 2009

25. DT transformation
Source: Deutsche Telekom Investor Day. On Our Way To A New
DT – “Fix – Transform – Innovate, March 17, 2010 René Obermann”
Public | © Ericsson AB 2011 | 2011-01-25 | Page 25

26. TRANSFORMATION FOR
SUSTAINABLE GROWTH
Source: 7th investor Conference October 2009, JM A Pallete
Public | © Ericsson AB 2011 | 2011-01-25 | Page 26