Value Proposition canvas- Customer needs and pains
Case Study : P1 4G Staying One Step Ahead
1. P1 4G
STAYING ONE
STEP AHEAD
Highlights How adopting quality
P1’s Challenges
• Maximize infrastructure capability
helped chart P1’s growth
P1 4G (P1) is Malaysia’s first WiMAX telecommunications company, the
• Reduce customer churn
• Increase user satisfaction & experience level region’s first large-scale Mobile WiMAX commercial deployment and the
• Reduce customer call center cost and subscriber world’s first large-scale 802.16e 2.3GHz WiMAX network deployment
complaints outside of Korea.
Greenpacket’s Strength
Two years after its introduction, P1 was faced with a maturing market
• Best-in-class performance devices
where subscribers have become more sophisticated and demand quality
• Deep understanding of user needs
• Strong WiMAX R&D broadband services. P1 saw an opportunity to differentiate by surpassing
the level of service already available in the country. P1 was determined
How did P1 benefit? that coverage and quality of service would be its unique selling point.
• Increased coverage by an average of 10-20%
• 135% and 88% monthly net active subscriptions This is why P1 raised the bar with its ‘Super Broadband’ campaign
increase since launch of DX and UH devices
centered on delivering quality experiences from normal tariff package to
• Two-thirds churn reduction
best value mixed packages, passive to proactive customer service and
• 47% decrease of customer calls at call center
• Exponential increase of nomadic subscriber growth industry average to best-in-class high performance devices while its
competitors are busy waging a price war.
www.greenpacket.com
CASE STUDY
2. P1: CHANGING MALAYSIA’S
BROADBAND CLIMATE
According to the World Bank, broadband accelerates
economic development. Every 10% increase in “P1 is committed to delivering a super
broadband penetration contributes to 1.38% GDP 4G rich media broadband experience
growth. In Malaysia, mobile broadband communication that is affordable and accessible to all
can be used in vertical markets like trade and commerce, Malaysians at home and on-the-go.
education, healthcare, emergency services and Being one of the 4G pioneers in
government administration. South-East Asia and in the world, P1
is today Malaysia’s largest 4G
The Malaysian government’s issuance of WiMAX license Operator as well as the 4G leader in
was a call for change. P1 responded with its introduction South-East Asia. P1 is getting
and created landmark changes that contributed positively
stronger, wider and faster by the day,
to the country’s broadband penetration and sparked a
and it is our mission to
race to all incumbent wireless and wireless players to
play a major role in
step up in fulfilling the nation’s ICMS 886 ICT plan.
Malaysia was able to achieve its target 50% broadband
realizing the nation’s
penetration ahead of schedule with 53.5% penetration as
goal of proving
of August 2010 but there is still pent up demand for broadband for all.”
broadband.
Michael Lai
Chief Executive Officer
Packet One Networks
P1’S RACE TO THE
SUMMIT
P1 grew to more than 200,000 subscribers in just two P1’s Achilles heel lies in WiMAX’s issues with indoor
short years and ready for a new growth stage. The coverage. Similar to radio planning in the cellular world,
company believed that they could double their daily net WiMAX radio planning approach has seen little
subscriber adds from 500 to 1,000. However, the real divergence from conventional means which means that it
challenge for P1 to sustain this new growth is to convince is based on single wall coverage. Single wall coverage
and turn these new subscribers into loyal long-term planning allowed P1 to significantly reduce its initial
customers. P1 decided that improvements in service CAPEX. The tradeoff was that P1 had to recommend
quality and end user experiences are the answers. prospect customers to withhold their subscriptions even
when they are within coverage areas as the deliverable
Underlying challenges lay ahead for P1. High quality of service was deemed unsatisfactory by the
expectations are set for WiMAX as it is deemed to be the operator.
next generation 4G technology that is able to deliver
consistent, robust and high quality broadband service
and better user experience that is beyond what other
mobile operators in Malaysia could provide. The end-user
experience has to be on par with wireline broadband
01
service.
CASE STUDY
3. GAME CHANGING
EXPERIENCES
P1’s vision to deliver consistent and robust broadband
service steered the operator to adopt a growth strategy Net Active Subscription
Subscription
built upon the foundation of delivering quality service and UH Launch
devices. There was a need for home and mobile devices
with high performance signal quality.
DX Launch
P1 looked towards Greenpacket for a solution and it
came in the form of best-in-class devices in the DX Series
WiMAX Indoor VoIP modem and the UH Series USB High
Gain modem. The devices were introduced by P1 in 2H
2010 during the Super Broadband campaign and it
0
0
10
10
0
0
0
-1
10
1
-1
t-1
r-1
v-
g-
p-
ay
l-
n
Oc
No
Ap
Au
Se
Ju
Ju
completely shattered expectations. P1 has a massive hit.
M
Source: Packet 1
The DX was launched in the month of August 2010 as Figure 1: Increased net subscription as a reflect of new
part of P1’s home package plan. As a result, the net package plan with associated Greenpacket DX & UH Series
active subscriber (subscribers added minus churn) product launch
additions per month rose by a staggering 135%. The UH
saw astounding results as well when it was launched in
“Greenpacket’s DX and UH modems
November 2010. Net active subscriber additions per
delivered astounding results in
month increased by another 88%, collectively tripling its
combating indoor penetration issues
net subscriber adds within two quarters.
inherent to wireless technologies.
Additionally, subscriber attrition significantly cut by
Since their introduction, P1 is not only
two-thirds as indicated by COP (Cooling Off Period) seeing lower subscriber CHURN due
churn after UH’s introduction. What’s even more amazing to happier customers, but is also
is that it is an average 1 to 2% higher from COP churn experiencing a tremendous increase in
registered for Home Package Plans using fixed devices. subscribers as we are now able to
The rest of the COP churn was mostly accounted by deliver stronger
customers who were genuinely outside coverage area. broadband experiences
to new customers in
P1’s customer care centre has reported a 47% reduction cell-edge locations.”
in customer complaints related to low data rate
performance, device connectivity and out of coverage
issues. This drop effectively reduces operational cost Ti Lian Seng
while significantly increases revenue. The ability to deliver Vice President of Technology
Packet One Networks
the right customer experience creates customer loyalty
and this is evident with subscribers staying with P1 since
its launch.
02
CASE STUDY
4. TACKLING THE
ROOT CAUSE
Field result showed that in real-world usage scenarios,
every single dB increases the cell size by an average of 10 “At P1, we see mobile broadband as
to 20% depending on geographical terrain. This is a the next megatrend. Just like how
significant increase as the RSSI and CINR improvement voice evolved from fixed to mobile,
means that users at the cell edge now is able to receive broadband will become increasingly
satisfactory service at better modulation schemes and mobile and personal. To that end, we
thus maximizes the infrastructure investment. launched our Super WiGGY plans with
Green Packet’s UH-235 USB modem
Using broadband in a nomadic and mobile manner is not in November this year. With stronger
something new in Malaysia as wireless broadband and wider P1 4G coverage by the day,
penetration was a reported 3.79% in 2009¹. However, a
the UH-235 USB modem is the ideal
large portion is contributed by embedded devices rather
enabler for personal
than USB devices. Therefore the mode of utilization is still
broadband both at
very sporadic as satisfaction level and confidence over
the data speeds on mobile based plans (i.e: through USB
home and on-the-go.”
dongle) is unsatisfactory due to indoor penetration
losses. This has resulted in operators offering services on Michael Lai
best effort basis to control usage; while on the other Chief Executive Officer
Packet One Networks
hand, users are expecting DSL-type speed.
P1’s launch of W1GGY has shown tremendous demand Customer acquisition cost increases along with higher
and uptake has increased exponentially with the launch quality devices. Nonetheless, P1 has proven that
of UH. This proves that Malaysian broadband users delivering the right customer experience has a real and
demand for high quality, robust personal broadband accountable impact that boosts customer loyalty that
services. The high performance capabilities of UH leads to long-term returns.
delivered what the users expected.
0
0
0
10
10
0
10
10
Home
r-1
-1
l-1
t-1
g-
p-
v-
n-
ay
Ju
Ap
Oc
No
Au
Se
Ju
M
Nomadic
0
0
0
10
0
0
10
10
r-1
-1
l-1
-1
t-1
g-
v-
n-
ay
p
Ju
Ap
Oc
No
Au
Se
Ju
03
M
Source: Packet 1 Figure 2: Demand trend for Home & Nomadic service plans
CASE STUDY
5. THE GREENPACKET
DIFFERENCE
Greenpacket and P1 have been close partners since P1’s
launch. As P1’s sole device vendor, Greenpacket has “Greenpacket’s synergy with P1 has
been given the valuable opportunity to develop a allowed us to create better products
top-down understanding in all stages of growth of a based on real-world subscriber and
WiMAX network. Both companies moved forward operator needs. Our commitment to
together in developing solutions that are most suitable to P1 as a customer and partner is to
wireless data network needs. WiMAX devices play an deliver only the finest products and
important role in the subsystem that improves overall support, which echoes the same high
network performance, contrary to the common level commitment that
perception that WiMAX devices are only tools that extend P1 has to theirs.”
connectivity to end users.
Greenpacket’s 2nd generation devices are a result of the
Kelvin Lee
Senior General Manager
company’s extensive understanding and innovation in Greenpacket
developing products that would not only optimize
network capabilities, but also allow its customers to
differentiate and profit from their infrastructure
investment. P1’s success with the DX and UH are prime
examples.
04
6. “DX TOWER” - Perfect synergy “UH SHUTTLE” – Performance
of Wireless technologies in Versatility
The DX or “Tower” is the first data and voice enabled UH or “Shuttle” is the world’s first high gain USB modem
WiMAX WiFi IAD that supports WiFi 802.11n in the that supports both fixed and nomadic WiMAX.
market. By using WiFi 802.11n which is up to 15 times Incorporating one of the most advanced antenna
faster in performance compared to 802.11g, the DX is designs, the UH sets new standards for ease-of-use,
able to extend best quality wireless coverage both performance and quality, both indoors and outdoors. It
indoors and outdoors. Coverage is extended by 10 times allows the user to engage the device in numerous
with quality of service (QoS) enhancements, users get to configurations to get the best signal quality as it combats
enjoy true mobile wireless freedom and with the highest all the legacy limitations of conventional USB modems
performance. from absorption losses, shielding losses,
non-line-of-sight (NLOS) and unable to get the best
The DX can be placed near the window where the WiMAX emitted radiation pattern.
signal is strongest and use the stronger, wider and faster
WiFi coverage within its indoor premises making it The UH’s features and aesthetic design has captured
suitable to be used in home, SME or SOHO as it gives the P1’s users as being both practical and unique. Demand
best in class service. for the UH is higher than normal USB modems and
customer feedback has been positive.
P1 is able to package the DX as part of its premium home
as well as enterprise plans on a common device due to
the performance capabilities that satisfy both market
segments. In a long run, saving P1 the operational cost
and technical effort required to manage multiple device
platforms.
On the move
Indoor Outdoor
Shuttle’s versatility gives it an edge-it can be used
anywhere, anytime, indoors and on the move
05
CASE STUDY
7. Common Advantages of DX & UH
High Gain Omni Antenna High Transmission Power
All of Greenpacket’s 2nd generation devices are designed The DX and UH enjoy better signal quality even while
with high-gain Omni antenna. Both the DX and UH have indoors with 25dBm transmit power. For the DX, the 2Tx
5dBi gain that ensures WiMAX signals are strong, gives it an equivalent performance similar to 28dBm while
compensating indoor penetration loss. the UH has the best-in-class transmit power in a USB
form factor, resulting in better uplink performance to
Omni antenna radiates and receives WiMAX signals from combat the de-facto limitation of WiMAX.
any direction, allowing great flexibility in modem
placement. This gives users ultimate flexibility in where
they want to place their modems.
Smart Signal Transmission World-class WiMAX R&D
DX implements 2Tx and 2Rx. Transmitting with both Besides our global presence that extends over nine
antennas effectively creates diversity that guarantees offices around the world, P1 was impressed with
increase signal strength for an improved uplink Greenpacket’s world-class design efforts globally,
performance of up to twice the coverage area and particularly Greenpacket’s Taiwan R&D Center.
capacity.
This center is dedicated to advancements in the WiMAX
UH implements automatic selection of the best antenna field where a team of WiMAX specialists engage in
to improve signal strength for better uplink performance. consistent research, development and design activities to
It is the design of the UH that enables this diversity to be provide state-of-the-art WiMAX modems with unrivaled
effective as minimum distance between the two antenna performance and quality.
are required to create transmit diversity.
A winning partnership
Green Packet’s relationship with P1 is developed on a long-term strategic partnership. This is demonstrated via our
commitment to continuously provide new and innovative solutions that supports P1’s vision.
If you would like to obtain more information on how you can improve your mobile broadband experience, please
contact us at marketing.gp@greenpacket.com
06
CASE STUDY