D ISP Overviews Julian Herbert point-topic 28 January 2005
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Transcript of D ISP Overviews Julian Herbert point-topic 28 January 2005
D ISP Overviews
Julian Herbertwww.point-topic.com
28 January 2005
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ISP Overviews
• Background• The six ISPS
– Summary– Highlights– Propositions
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• Background• The six ISPS
– Summary– Highlights
• Propositions
ISP Overviews
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Background
• Profiles of six ISPs
• All from outside UK
• Pioneers in marketing particular value-added applications
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• Background• The six ISPS
– Summary– Highlights
• Propositions
ISP Overviews
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The six ISPsOverview
ISP Country Value-added offering
Bell Canada Canada Security services for residential and business customers
Catch Communications
Norway Business-focused ISP that aims to make VPNs cheaper and simpler
FastWeb Italy Strong video and TV element in a triple-play bundle
Free France Voice-over-IP as part of residential triple-play bundles
SingTel Singapore Turbo button to boost download speeds
Sprint USA Bundled DSL, telephone and mobile offering to retain customers and maintain revenue
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Security for residential & business customers
• Uses ‘white label’ security services from Zero Knowledge Systems (ZKS).
• Customer opts to receive security report about threats which have been intercepted. Report = marketing and communications opportunity
• Anti-virus, Anti-spyware, Firewall package free for 6 months and C$10.90 a month thereafter; equivalent to 19% of monthly ARPU
• Improves customer retention: ZKS claim customers with security option are 30% less likely to churn
Bell Canada – SimpaticoSummary
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Bell Canada – SimpaticoHighlights
• Service deliberately simplified compared to shrink-wrapped alternatives
• Marketing and communications opportunities to subscribers via a useful service
• Increase ARPU across a wide range of consumers (around C$11 or 19% of monthly ARPU)
• Service can be licensed on up to 3 PCs per household
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Bell Canada – SimpaticoPropositions
• Have you had a computer virus infection?• Do you pay for Anti-virus/firewall/anti-spyware etc at
the moment?• Would you pay £4.60 a month for your broadband
security?
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Catch Communications (Norway)Summary
Business-focused ISP makes VPNs cheaper, simpler
• Ethernet-based network provides MPLS based IP VPN services comparable in quality to frame relay
• Success in attracting price sensitive public sector customers
• Average monthly revenue per site of about $500
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Catch Communications (Norway)Highlights
• IP core network and DSL focus• Winning frame relay and VPN customers with easy-
to-install solutions• Recognise that quality has to be better, price lower,
to overcome inertia
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Catch Communications (Norway)Propositions
• Join your multi-site business for $550/site/month (approx. £290)
• You can have an SLA that’s better than for frame relay (although not quite as good as for SDH leased line), and at less cost
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FastWeb (Italy)Summary
Strong video and TV element in a triple-play bundle
• Security services for residential and business customers
• Full ‘triple play’ package (broadcast and on-demand video, PVR services, telephony, HSI
• Video telephony option
• Competitively priced bundles (€25, €75, €95/month)
• VoD and PVR contribute 11% of total ARPU
• Video penetrates 41% of customer base
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FastWeb (Italy)Highlights
• Pure IP network, mainly owned by FastWeb, using DSL and fibre
• Good value plug and play service bundle deployed rapidly
• Initial focus on just 6 cities• Video and TV will increasingly drive revenue• Not required to develop emergency call service, so
VoIP market stimulated
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FastWeb (Italy)Propositions
• Structured service bundles for €25, €75, €95 monthly• Video telephony – camera for €5/month, free calls to
other FastWeb subscribers, vs €1 Euro/min to ISDN videoconferencing line (ie at an office)
• Video on demand – library of 1000+ titles, at €4 for a back catalogue film, €6 for a ‘latest release’
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Free (France)Summary
Voice over IP as part of residential triple play bundle
• Triple play bundles comprises HIS, TV and Phone for flat monthly rate €29.99
• Proprietary nationwide network (12,000km optical network, 220 ADMs, 1500 DSLAMs, equipment in 602 France Telecom exchanges
• ADSL 2+ launched July 2004
• 1 million customers at end 2004
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Free (France)Highlights
• VoIP switches and gateways deployed as part of extensive proprietary national network
• Highest penetration of primary voice line customers of any broadband network in France
• Free calls to any fixed line number in mainland France
• Customer base growing at 18% quarter on quarter in 2004
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Free (France)Propositions
• Do you currently use voice over IP services, either through your broadband provider or through software based solution such as Skype?
• Would VoIP be compelling as a primary line replacement or just for secondary line?
• How complicated does setting up a VoIP service appear to be?
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SingTel (Singapore)Summary
‘Turbo’ button to boost download speed
• BOD service launched July 2003
• Connection speed increased ‘on demand’ at a price based on data consumption; overage = S$0.3/Mb
• Users log-in to high bandwidth service through a different domain
• Increases bandwidth from 512kb to 1.5Mb
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SingTel (Singapore)Highlights
• Speed top up available to some broadband users• Other operators have trialled this (NTL - 'Turbo')• SingTel sells BOD on top of a relatively complex
range of broadband and 'midband' products
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SingTel (Singapore)Propositions
• How fast do you think broadband is? 500k? 1 Mbps? (use examples of song download times).
• Roughly how much data do you think you download in a month? (1 Megabyte, 10 Megabytes, 100 Megabytes, 1000 Megabytes (=1 Gigabyte), 10 Gigabytes, 100 Gigabytes?)
• Would you pay less if you could only use fast broadband during evenings and at nights, or at weekends?
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Sprint (USA)Summary
Bundled DSL, telephone, mobile retains customers
• Packages tie together fixed (local/long distance) offering with Sprint PCS mobile offering
• Offers incentive to Sprint DSL customers to become Sprint PCS customers
• Subscribers to all services benefit from c. $15/month off DSL csot and free calls between home and PCS
• Market limited to intersection comprising local exchange customers on DSL enabled exchanges in areas of Sprint PCS coverage
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Sprint (USA)Highlights
• Nearly 70% of local exchange customers puchase additional mobile or DSL packages
• Data is the only fixed line of business which increased revenue in Q3 2004, thanks largely to increase in DSL take up
• Range of bundled packages, based around subscribing to a Sprint local exchange service in one of 18 states
• Revenue growth from installed customer base heavily offsets overall revenue decline being experienced by Sprint in the local exchange market
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Sprint (USA)Propositions
• Do you think bundling services together would save you money in the long term - or is it better to keep elements separate and to shop around?
• How much of an advantage is it to have all three services on a single bill?
• If you buy a bundle of services are you concerned that one or more of them might not be the best for your particular needs - such as including the mobile company which gives the best local fixed service?