3. Consistent growth sinceConsistent growth sinceConsistent growth sinceConsistent growth since the beginning of the 21st centurythe beginning of the 21st centurythe beginning of the 21st centurythe beginning of the 21st century
Services
Clients
1989 2000 2009
Integrated ICT
solutions for all
customer segments
Basic telephone
and data services
Wireline and mobile voice,
data and Internet services
About 12million
subscribers
About 265
million
customers
About 68million
customers
IPTV Competence Centre
Telefonica
2
Staff
Finances
Geographies
(1) EPS: Earnings per share
Spain
Operations in
25 countries
Operations in
16 countries
About 71,000
professionals
About 257,000
professionals
About 149,000
professionals
Revenues: 4,273M€
EPS (1): 0.45 €
Revenues: 56,731M€
EPS(1): : 1.71 €
Revenues: 28,485M€
EPS(1): 0.67 €
4. So, Telefónica is now a benchmark for the global Telco sectorSo, Telefónica is now a benchmark for the global Telco sectorSo, Telefónica is now a benchmark for the global Telco sectorSo, Telefónica is now a benchmark for the global Telco sector
............
International integrated Telco
operator by customer base
1st
European integrated Telco
operator by market capitalisation
1st
273.3 million accesses (as of Mar’10)
• 101.0 million in Europe
• 172.3 million in Latin America
Operations in 25 countries
• 6 in Europe (1)
• 13 in Latin America (2)
• 3 through strategic and industrial alliances (3)
Telco in Dow Jones1st
IPTV Competence Centre
Telefonica
3
Among the 50largest companies
in the world by market cap
Among the 100 largest
companies in the world by revenues
About 257,000 professionals
• 31.1% in Europe
• 68.1% in Latin America
• 0.8% in others countries
Revenues (Mar’10) : 13,932Mill.€
OIBDA (Mar’10) : 5,114 Mill.€
Net Income (Mar’10) : 1,656 Mill.€
Telco in Dow Jones
Sustainability Index
1st
(1) Plus Morocco
(2) Plus U.S.A. and Puerto Rico
(3) China, Italy and Portugal
5. Telco services are essential today and they will be more soTelco services are essential today and they will be more soTelco services are essential today and they will be more soTelco services are essential today and they will be more so
in the future …in the future …in the future …in the future …
Everybody and
everything connected
Social networking
User Generated Content
Huge increase of digital
content
Customer demand drivers
IPTV Competence Centre
Telefonica
4
Evolution from devices to ecosystems
(Devices + Operating Systems + User Interfaces + Applications)
content
Hundreds of thousands of
applications
e-World: e-Health,
e-Learning, e-Finance
services, e-Travel
M2M : smart metering,
e-Car, e-Logistics, vending
Increasingly powerful
devices
15. CaseCaseCaseCase StudyStudyStudyStudy: Comcast: Comcast: Comcast: Comcast
Strenghths
• Customer Base
• TV in the core
strategy
Weakness
• Infraestructure
• Wireline only
• Fancast
complementary
IPTV Competence Centre
Telefonica
14
“Comcast rolls out iPhone app for phone and e-mail features, TV listings, and
movie trailers”
“Comcast Looking To Offer À La Carte Streaming Music To ISP And Cable
Customers”
“HBO, Cinemax coming to Comcast’s and Time Warner’s TV Everywhere plans”
“Use an iPad to Control Cable Shows Remotely with New Comcast Initiative”
16. CaseCaseCaseCase StudyStudyStudyStudy:::: VerizonVerizonVerizonVerizon
“Verizon Promotes Use of Its Inventive Self-Service Interactive Tool”
“Android App Controls Your Verizon Fios TV”
“Motorola and Verizon team up for TV tablet”
“Verizon FiOS Media Manager: Easy Setup, So-So Delivery”
“Verizon Expands Advanced, Remote DVR Management Service to FiOS TV Customers”
IPTV Competence Centre
Telefonica
15
“FiOS To Carry YouTube, Internet Radio”
“FiOS TV Subscribers First to Access HBOGo.com”
Strenghths
• Technology &
seamless approach
• TV in the core
strategy for
wireline company
Weakness
• Mobile service
(Vcast) not
integrated
17. Typical Starting Scenario of content deliveryTypical Starting Scenario of content deliveryTypical Starting Scenario of content deliveryTypical Starting Scenario of content delivery
Content
Negotiations
Encoding Encription Distribution Delivery Presentation
Content
Encoding Encription Distribution Delivery Presentation
IPTV Competence Centre
Telefonica
16
Content
Negotiations
Encoding Encription Distribution Delivery Presentation
Content
Negotiations
Encoding Encription Distribution Delivery Presentation
18. First Step into content delivery convergenceFirst Step into content delivery convergenceFirst Step into content delivery convergenceFirst Step into content delivery convergence
Encoding Encription Distribution Delivery Presentation
Content
Negotiations
•It’s not only content negotiation, implies a common business stragey
•Not efficient to provide a multiscreen strategy but suitable
•Common UX guidelines to provide a seamless experience to customers
IPTV Competence Centre
Telefonica
17
Encoding Encription Distribution Delivery Presentation
Encoding Encription Distribution Delivery Presentation
19. Second Step into content delivery convergenceSecond Step into content delivery convergenceSecond Step into content delivery convergenceSecond Step into content delivery convergence
Content
Negotiations
Encoding Encription Distribution
Delivery Presentation
•Encodig stage includes metadata creation and
IPTV Competence Centre
Telefonica
18
Delivery Presentation
Delivery Presentation
•Encodig stage includes metadata creation and
distribution to the different platforms
•Encoding and encryption to fit in selected
convergenced devices
•Single Distribution to existing content delivery
elements
20. Third Step into content delivery convergenceThird Step into content delivery convergenceThird Step into content delivery convergenceThird Step into content delivery convergence
Content
Negotiations
Encoding Encription Distribution Delivery
Presentation
•Second and third step could be alternated
depending on each service provider state of art
IPTV Competence Centre
Telefonica
19
Presentation
Presentation
depending on each service provider state of art
•Homogeneous CDN to provide efficieny and
improve business models
•Presentation layer cannot be harmonized yet but
one day it can be the fourth step of convergence
21. MultiscreenMultiscreenMultiscreenMultiscreen challengeschallengeschallengeschallenges
Commercial
• Internal development process towards convergence scenarios
• Adquire content rights for all screens
• Harmonized of commercial brands
• Adequate bundling to reduce churn and give more ARPU
• Seamless User eXperience
Technical
• Fragmented technologies
IPTV Competence Centre
Telefonica
20
• Fragmented technologies
› Content Formats
› DRM
› Presentation layer
• Migration
› Reuse or replace
› Evolution from actual vertical silos
• Unified customer care
› Unified User ID
› Convergence OSS/BSS
22. Open IPTV Forum
• Multiple player: Service Providers, CE manufacturers, SW Suppliers, DRM
manufacturers…
• Convergence to maximum
› Managed and un-managed networks
› Service Provider and Platform provider independent environments
StandardizationStandardizationStandardizationStandardization
IPTV Competence Centre
Telefonica
21
23. PayPayPayPay TVTVTVTV strategystrategystrategystrategy
Multiscreen is one of the pilars for evolving PayTV strategy
Let’s go one step back for a global vision
• Content…remains king
• Pricing
› Entry level
› Upselling
› Bundling
› Competitive
IPTV Competence Centre
Telefonica
22
› Competitive
• Give to consumers control
› DVR
› Remote Control (convergence management)
• Personalize
• Home Integration
• Multiroom services
• Cross Platform Video Delivery
User eXperience to provide an easy to use and differentiated experience
