Analysis of Telecom in Nordics region.

1. - VENKATESH K.G

2. TELECOM MARKET ANALYSIS OF NORDICS REGION
 Reduced growth in fixed broadband connection/services.
 Overall the trend is moving more towards data and
mobile services rather than fixed line services.
 Also upon the introduction of newer technology for
effective utilization of bandwidth like 3G/4G , prior
technologies are loosing their coverage in the market.
 Shift from value added service like SMS to free date
based communication services.
 Shift towards IPTV .
MARKET SIZE GROWTH
SUBSCRIBER GROWTH ACROSS
SEGMENTS
TELECOM MARKET ANALYSIS OF NORDIC REGION – SWEDEN
 Voice services is decreasing and mobile broadband services is increasing
over period.
 Smart phone market is growing exponentially. So high potential market
for mobile based services.
 The total data transmitted is exponentially increasing and at the same
time price for the data transmission is decreasing. Newer technology like
3G , 4G ensures optimal utilisation of bandwidth.
 Data revenue increased by 21% in 2012, amounting to SEK 7 billion
Mobile networks were used to send /receive 176,000 TB of data in 2012,
75% growth over 2011
 The number of text messages (SMS) decreased by approx. 6 per cent in
2012, while the number of multimedia messages (MMS) increased by 15
per cent.

3. TELECOM MARKET ANALYSIS OF NORDIC REGION - DENMARK
 Subscription of fixed line services, outgoing fixed line traffic and subscriber
lines per 100 has declined over period though Denmark continues to have
highest level of broadband penetration in the world.
 Broadband subscription has marginally increased over the period though
fixed line services is loosing its market presence. This clearly implies an
increase in mobile broadband services in the market.
 Outgoing fixed line traffic excluding IP telephony has declined over period
and the number of IP telephony subscription has almost doubled
indicating shift in demand to IP based telephony services.
 Cable modem subscription has remained stagnant over the period. This
indicates the shift in people’s preference to mobile services.
TELECOM MARKET ANALYSIS OF NORDIC REGION - NORWAY
MOBILE MARKET REVENUE
 Revenue from mobile data has increased over period.
 Value added services like SMS is loosing its share in the market.
 Dedicated mobile broadband subscription and mobile data traffic
packages has increased consistently over period and mobile services
excluding mobile data is loosing its share in the market.
 Norwegian Post & Telecommunications Authority (NPT) released a
report stating revenue from voice is decreasing by 11% year-on-year
and messages by 4% year-on-year.
 BMI believes there were 1.277mn fixed lines in service at the end of
2013, a figure that will fall to 1.138mn by 2018.
 The mobile market also underperformed in 2013. There were 5.947mn
subscribers at the end of 2013, a figure that will slowly rise to 6.143mn
by 2018.
 Growth to be driven by demand for rich media services, such as
network-agnostic Internet TV, the broadband market represents the
only real area of organic growth. BMI estimates a year-end 2013
subscription base of 2.747mn, rising to 3.032mn in 2018.

4. TELECOM MARKET ANALYSIS OF NORDIC REGION - FINLAND
 It is observed that though the investment in telecom domain has
increased over the period, the revenue from it has not improved
significantly. So there is a pressure on telecom operators.
 Investment in mobile network is gradually increasing over the
period and
 Fixed line services as well as mobile revenue is facing stress over
2009-11
 Inspite of flattish revenue, investment rate has remained steady
indicating better expectations of the industry
 Investment in Television and other services has however been
profitable to operators which could have attributed for the overall
growth.
 Broadband adoption in Iceland remains among the highest in the world.
FttH networks have been stimulated by government policies to deepen
the fibre footprint in the capital and major outlying towns.
 The government ITC policy to 2012 is geared at enabling public services
including health, education, government procurement, telecommuting
and teleconferencing to be available online via a coordinated network, so
stimulating further broadband uptake
 The mobile sector remains dominated by Síminn and Vodafone Iceland,
with the two smaller players having secured only 6% of the voice market.
Nevertheless, they have capitalised on their ability to offer 3G services in
the 900MHz spectrum band, accounting for 55% of mobile data traffic.
 Farice’s 2013 deal with Ciena Corporation will see the DANICE submarine
cable system connecting Iceland with Denmark upgraded to 100Gb/s.
The bandwidth will help support Iceland’s developing data centre
industry.
TELECOM MARKET ANALYSIS OF NORDIC REGION - ICELAND

5. TELECOM COMPETITOR ANALYSIS OF NORDICS REGION - SWEDEN
TOTAL BROADBAND FIXED BROADBAND MOBILE BROADBAND
• As observed, though Telia Sonera’s Fixed broadband
services remained stable over period, its overall share in
total broadband has declined. This clearly shows an
increase in demand in mobile broadband services.
• Hi3g’s overall market share has increased significantly
increased over the period because of emphasise laid on
mobile broadband services.
• As observed, every major player except Telia Sonera is
successful in tapping mobile broadband market
TOTAL TELEVISION SERVICES DIGITAL TELEVISION SERVICES
• As observed in the above graphs, Telia Sonera’s share in total television services has increased and it can be attributed to the
increased emphasis on digital television services and strong presence in fixed line market
• Boxer’s share in overall Television services is declining and there is a corresponding diminishing presence in digital television services.
TELIA SONERA CAN FURTHER LEVERAGE THEIR PRESENCE IN FIXED LINE BROADBAND MARKET TO PENETRATE LUCRATIVE DIGITAL TV

6. TELECOM COMPETITOR ANALYSIS OF NORDICS REGION - DENMARK
• The mobile sector remains dominated by Síminn and Vodafone
Iceland, with the two smaller players having secured only 6% of
the voice market. Nevertheless, they have capitalised on their
ability to offer 3G services in the 900MHz spectrum band,
accounting for 55% of mobile data traffic in 2010.
• The broadband market continues to move towards fibre from
DSL
• Fixed line market is declining while the wireless network is ramping up fast
• In Denmark, Telecom market is controlled by TDC having 80% of the market share.
• In spite of declining trend in fixed line business, TDC has a healthy market share indicating relatively better success in tapping wireless market
• TV market is more diversified with a lot of players. None of the top players in telecom market other than TDC(4.9%) of market share is found
among the top players. So TV service is not much IP based.
Sl.
No
.
Compa
ny
Market
Share
1. TDC 80%
2. Tela 10%
3.
Teleno
r
6%
4. Others 4%
TELECOM COMPETITOR ANALYSIS OF NORDICS REGION - ICELAND
Mobile Market
Siminn
Nova
Vodafone
Tal
Others

7. TELECOM COMPETITOR ANALYSIS OF NORDICS REGION - FINLAND
MARKET SHARE CABLE TV MARKET SHARE FIXED LINE VOICE
MARKET SHARE FIXED LINE
BROADBAND
MARKET SHARE WIRELESS
STRATEGIC GROWTH AREAS – FIXED LINE BUSINESS
1. Tieup with a local System Integrator
 Company can tie-up with a local System Integrators to target MSMEs, where in the SI partner handles last mile connectivity and maintain predetermined SLAs
 SI partner will offer services like server maintenance, mail service, conference call services, VOIP services and other services
 Tie-ups with SI will increase the value added service composition of the Company, increase revenue per customer, improve retention , reduce customer acquisition cost
as SI partner will do it, more cost efficient and improve customer satisfaction due to SLA commitments of SI partner
2. Asset Play: Product Bundling
 Company should leverage their fixed line network to offer more services like cable television, IPTV. They should offer bundled services to end customers
 Services and plan be customized and better tariff plans can be offered to tap this opportunity. This will lead to better retention of customer base and higher revenue per
customer
3. Asset Play: Resource Sharing
 Aggressive usage of fixed line market can also help Company improve their asset utilization and higher RoI. Since operating cost is typically lo for this business, the RoE
can also increase
 Company can also look at resource sharing in the fixed line market which will ensure better asset utilization and offer regular cash flows

8. REDUCING OPERATIONAL COST
Pricing Play
Tie-up with Smartphone
Manufacturers
Tie-up with E-
Retailers
1. Increased focus on mobile data segment
 Company should come out with disruptive pricing strategy in
mobile data segment
 They should carry out market intelligence activity to
understand customer preference and offer data service
packages according to that
 They should form joint promotion activities with smart
phone manufacturers to offer attractive promotional offers
 They still being the largest telco should also get into tieup
with premier e-commerce, online book stores , consumer
electronics
 They can look at success story of Reliance Communication in
Data segment in India
STRATEGIC GROWTH AREAS – WIRE LESS BUSINESS
Outsourcing
Sales
Network
Rationalizati
on
Tieup With SI
1. Outsourcing
 Company should outsource call centre services and network management services
 Predetermined SLA requirements should be warranted
2. Sales Network Rationalization
 Curtail non performing sales force and offer incentives for better performance
 Since the Company has been in operations for long, inefficiency would have creped in. Reduce redundant work force
 Offer attractive packages online like better talk time to move customer acquisition online
3. Tie-up with SI:
 SI partner being local, specialised and more nimble will have lower cost structure
 SI partner will also improve customer satisfaction as the process will be clearly laid out, standardized and wetted by management. Penal
clauses can be included for breach of SLA terms

9. PRODUCT MARKET INVESTMENT STRATEGY - NEXT 2 YEARS
• Stop investing more on fixed line services and focus should be on efficient utilization of existing resources.
• Since revenue is flattish, Nattel can consider focusing more on core activities and outsource non-core activities like BPO, network
management
• Sales force rationalization and devising effective incentive structure
• Resource sharing agreements in fixed line services
• Hire an SI partner to target MSMEs and Corporates
• Form partnerships with e-retailers and smartphone manufacturers
• Analyse current service bundling which is having more hit-rate and check if the same service can be provided at a competitive price.
• Carry out analytics by hiring a third party to analyse the present market trend segment wise (age, sex, demography) for better
targeting of services
• Get updated with the current trends and changes in the pattern of demand of the customers so that we do not stand absolute
• Hiving off and subsequent sale of non core business units like real estate
•Enhance the already developed web-portal to handle more volume and provide special incentives to customers using online portal instead
on BPO by which we can consider eliminating dependence on BPO’s.
•Invest the money raised from the funds raised by the previous plan on mobile data segment since this is having more potential market.
•Tie-ups with banks and travel portals to book tickets and tap the lucrative m-banking and online booing market
•Tie-ups with the dealers providing gaming/ apps development. By this service men of these organizations would help in getting Nattel’s
service in domestic / commercial places.
PRODUCT MARKET INVESTMENT STRATEGY - NEXT 5 YEARS

10. PRODUCT MARKET INVESTMENT STRATEGY - NEXT 10 YEARS
• Focus on B2B rather than only B2C to capture more volume.
• The 3rd P of Marketing, Place is diminishing. So more strategic tie-ups with more e-commerce industries to have sustained growth.
• Many corporate are shifting towards cloud-based services for sharing the resources to optimise operational expenses. So more
strategic tie-ups with cloud service providers enables gaining more volumes.
• Invest in big-data and offer Data base maintenance services to clients
• Closely track changes in mobile technologies and be nimble to test and rollout quickly
• Have more attractive customised bundled packages at an attractive price so that more customers would use our service. By doing
this, we will gain more volume in the market.
• After gaining sufficient market in data portion in the market, have a competent technology and make sure we are the best in
technology. This creates barrier for new entrants from entering the market. As well as the existing players from taking our share in
the market.
• Consider entering the adjacent nations on new robust technologies by having joint venture of the key players.
• Constantly monitor the operational efficiency of the organization and make sure we make efficient utilization of the resources.
• Efficient utilization of the resources. If any of the resources is idle, we can consider leasing it out so as to have efficient utilization of
the resources with their competitors..
• Surpassing telecom and extending to other industries: The revolutionary experience of home networking creates new markets.
• Tie-ups with retailers/super markets ,fast-food and other popular restaurants and incorporate SMAC technology. Because marketing
is moving from 1:n to 1:1 (personalised communication).
• Strategic tie-ups with e-commerce and other major corporate to gain volume (eg:- Amazon.).
NATTELS BUSINESS STRATEGY AND CUSTOMERS IN FUTURE.

11. Thank You