Gary Bhomer. Director, Telstra Wholesale

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1 Gary Bhomer Director, Telstra Wholesale

2 1 What services are in demand? What are customers looking for now? 2 How can an operator innovate quickly? Leveraging the strengths of the leading MNO in Australia to enable service differentiation for MVNOs 3 Developing stronger partnerships with MVNOs MVNO World Congress Gary Bhomer April 2016 Page 2

3 About Telstra Corporation Mobile Market in Australia and Key players About Telstra Wholesale What services are in demand? Wholesale Products and Services Telstra Wholesale Powering Possibilities MVNO World Congress Gary Bhomer April 2016 Page 3

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5 40,000 employees across over 20 countries 1.4 million shareholders One of Australia s largest shareholder bases 16 million global Wi-Fi hotspots 2 million in Australia by million domestic retail mobile services 6.0 million fixed voice retail services 3.1 million fixed data retail services Australia s largest fully integrated IP network Our Purpose: To create a brilliant connected future for everyone Telstra - Most Trusted Brand MSI Global Alliance 2016 Survey MVNO World Congress Gary Bhomer April 2016 Page 5

6 with more than 40,000 staff in more than 20 countries, interests in 20 cable systems and 3 Satellite Earth Stations

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9 24% 16% MVNO A 13% MVNO B 10% MVNO C 8% Australian retail mobile subscriber share (Estimated) 9% MVNO base MVNO D 6% Others 40% MVNO E 23% 51% MVNO World Congress Gary Bhomer April 2016 Page 9

10 MVNO World Congress Gary Bhomer April 2016 Page 10

11 MVNO World Congress Gary Bhomer April 2016 Page 11

12 Customers > 200 Employees > 500 Turnover > $2 Bn

13 Our customer promise: we care 3 Best 2015 Our pillars Personalised Wholesale Operator of the Year 1 2 Total Service We know our Wholesale customers as individuals products and services We Confidence 3 Best Industry awards Recognition Wholesale through industry honours for We keep our customers Telstra Wholesale s products products and We deliver services quality products with the informed and services broadest reach The Asia Communication Awards recognise Listen and respond to our outstanding customers performance and innovation from leading Asian telecoms carriers, Build Strong relationship service providers, operators and vendors Care About our customers We deliver quality products with the broadest reach Asia Communication Awards MVNO World Congress Gary Bhomer April 2016 Page 13

14 MVNO World Congress Gary Bhomer April 2016 Page 14

15 Shared by global MVNOs for 2016/17 Add innovative products/ services bundles Address new segments of the market 39% 33% 9% 19% Source: Ovum, MVNOs Business Development Survey, 2015 (n=440) Enter a new geography Enter adjacent markets (e.g. travel, insurance and advertising) Insight: Know your opportunities in order to grow MVNO World Congress Gary Bhomer April 2016 Page 15

16 Shared by global MVNOs for 2016/17 Survey respondents chose multiple answers Insight: Focus on your segment - Tailor and target Youth/ Media and Entertainment Retail Brand Extender Social Network/ Community- Based Ethnic/ International Consumer Electronics/ M2M Business/ Enterprise/ Vertical FMC/ FMS, Fixed/ Rural Brand Extender 38% 32% 29% 29% 29% 15% 11% Source: Ovum, MVNOs Business Development Survey, 2015 (n=440) MVNO World Congress Gary Bhomer April 2016 Page 16

17 Then Budget conscious users Selling PAYG and airtime Low maintenance / Low touch customer service No serious competition from MNOs Lowering prices to compete Premise-based, standalone service delivery platforms Source: Ovum, MVNOs Business Development Survey, 2015 (n=440) Now Value-conscious users Selling monthly, at-rate, recurring services High maintenance / High touch customer service Increasing competition from MNOs Adding services to compete Cloud services Insight: New products, services and bundles are needed MVNO World Congress Gary Bhomer April 2016 Page 17

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19 Facilities Voice Mobile Broadband Data and IP MVNO World Congress Gary Bhomer April 2016 Page 19

20 MVNO World Congress Gary Bhomer April 2016 Page 20

21 End user relationship Marketing Commercial contract with Telstra Wholesale You focus on marketing your business and customers Wholesale Customer (MVNO) Telstra Wholesale Telstra Mobile core network Telstra s Radio access network Wholesale customer relationship 2 nd level operational customer support USIM sourcing USIM and Handset Logistics Payment gateway and credit scoring Connectivity and B2B integration Mobile Apps and Customer portal Call centre and 1 st level operational customer support Your Enabler/ Vendor (MVNE) Ericsson Real time rating system Convergent platform for billing and provisioning Managed service API solution 3 rd and 4 th level operational customer support MVNO World Congress Gary Bhomer April 2016 Page 21

22 Your branding Market your own branded 3G or 4G mobile and/or mobile broadband offerings to leverage your brand and increase your market presence High quality mobile network Our Mobile Solution is built on our high-quality, reliable mobile network with extensive coverage supported by a cutting edge intelligent network platform and online systems Single platform Convergent platform and billing supports Pre-Paid, Post-Paid and Broadband services on a single platform. The flexibility to move customers from Pre-Paid to Post-Paid. Streamlined operational efficiencies that come with managing a single platform interface Your plans Supports a range of plan options Pay As You Go (PAYG), Non PAYG, Bolt-on, Standalone data Real-time information Manage your customers and their accounts in real time with notifications to minimise bill shock for your customers We support you Be supported by an experienced Telstra Wholesale team throughout onboarding and any future plan changes to enable the successful launch of your mobile products to market MVNO World Congress Gary Bhomer April 2016 Page 22

23 Your branding Market your own branded 3G or 4G mobile and/or mobile broadband offerings to leverage your brand and increase your market presence Your plans Supports a range of plan options Pay As You Go (PAYG), Non PAYG, Bolt-on, Standalone data High quality mobile network Your branding Our Mobile Solution is built on our high-quality, reliable mobile network with extensive coverage supported by a cutting edge intelligent network platform and online systems Market your own branded 3G or 4G mobile and/or mobile broadband offerings to leverage your brand and increase your market presence Real-time information Manage your customers and their accounts in real time with notifications to minimise bill shock for your customers Single platform Convergent platform and billing supports Pre-Paid, Post-Paid and Broadband services on a single platform. The flexibility to move customers from Pre-Paid to Post-Paid. Streamlined operational efficiencies that come with managing a single platform interface We support you Be supported by an experienced Telstra Wholesale team throughout onboarding and any future plan changes to enable the successful launch of your mobile products to market MVNO World Congress Gary Bhomer April 2016 Page 23

24 Your branding Market your own branded 3G or 4G mobile and/or mobile broadband offerings to leverage your brand and increase your market presence Your plans Supports a range of plan options Pay As You Go (PAYG), Non PAYG, Bolt-on, Standalone data High quality mobile network Your High branding quality mobile network Our Mobile Solution is built on our high-quality, reliable mobile network with extensive coverage supported by a cutting edge intelligent network platform and online systems Single platform Market your own branded 3G or 4G Our mobile Mobile and/or Solution mobile is built broadband on our offerings high-quality, to leverage reliable mobile your brand network and increase your market presence cutting edge intelligent network platform and online systems with extensive Real-time information coverage supported We by support a you Manage your customers and their accounts in real time with notifications to minimise bill shock for your customers Convergent platform and billing supports Pre-Paid, Post-Paid and Broadband services on a single platform. The flexibility to move customers from Pre-Paid to Post-Paid. Streamlined operational efficiencies that come with managing a single platform interface Be supported by an experienced Telstra Wholesale team throughout onboarding and any future plan changes to enable the successful launch of your mobile products to market MVNO World Congress Gary Bhomer April 2016 Page 24

25 Combined network coverage Combined total coverage of at least 98.8% of the population 1.3 million square kilometres 4G uses a combination of 1800MHz / 700MHz for coverage with 2600MHz added for capacity in selected areas 2G uses 900 MHz (Note the 2G network will be exited in December 2016) 3G uses 850Mhz for coverage with 2100MHz added for capacity in selected areas The TW coverage footprint is underpinned by over G and G sites MVNO World Congress Gary Bhomer April 2016 Page 25

26 Your branding The Mobile Solution built with Ericsson is an incredibly important platform for Telstra Market your own branded 3G or 4G mobile and/or mobile broadband offerings to leverage your brand and increase your market presence Wholesale Your plans as we continue to focus on growing our Mobile business in Australia Supports a range of plan options Pay As You Go (PAYG), Non PAYG, Bolt-on, Standalone data High quality mobile network High Single quality platform mobile network Our Mobile Solution is built on our high-quality, reliable mobile network with extensive coverage supported by a cutting edge intelligent network platform and online systems Single platform Convergent platform and billing Our supports Mobile Pre-Paid, Solution Post-Paid is built on and our high-quality, Broadband services reliable mobile on a single network platform. The flexibility to move customers from cutting Pre-Paid edge Manage to Post-Paid. your intelligent customers and Streamlined network platform their accounts in real time with and operational online notifications systems efficiencies to minimise bill shock that come with for your customers managing a single platform interface with extensive Real-time information coverage supported We by support a you Convergent platform and billing supports Pre-Paid, Post-Paid and Broadband services on a single platform. The flexibility to move customers from Pre-Paid to Post-Paid. Streamlined operational efficiencies that come with managing a single platform interface Be supported by an experienced Telstra Wholesale team throughout onboarding and any future plan changes to enable the successful launch of your mobile products to market MVNO World Congress Gary Bhomer April 2016 Page 26

27 Our end to end solution The diagram below conceptually summarises the end-to-end service delivery Telstra Wholesale: Mobile Network Real time Charging HLR SMSC Real time Policy Telstra Wholesale: Mobile Platform IN platform and support systems NGW MMSC Interfaces Integrated mobile manager Your customer management system CRM system Wholesale Billing Investments in dedicated infrastructure to enable market Mobile references requirements of our customers Intelligent network platform Support systems Including voic , RVA, Call control, balance management and SMS notifications MNP Service provisioning, MNP transactions, CDR delivery, usage history etc VM CDR Interface types Integrated Mobile Manager (B2B) API connection Wholesale customer responsibility Customer management system Customer relationship management (CRM) or other system options MVNO World Congress Gary Bhomer April 2016 Page 27

28 Your branding Market your own branded 3G or The 4G mobile Mobile and/or mobile broadband Solution offerings to leverage your brand and increase Your your plans built market presence with Ericsson is Supports an incredibly a range of plan options important Pay As platform You Go (PAYG), Non PAYG, Bolt-on, Standalone data for Telstra Wholesale Your plans as we continue to focus on growing our Mobile business in Australia Supports a range of plan options Pay As You Go (PAYG), Non PAYG, Bolt-on, Standalone data High quality mobile network Single platform Our Mobile Solution is built on our high-quality, reliable mobile network with extensive coverage supported by a cutting edge intelligent network platform and online systems Single platform Real-time information Convergent platform and billing supports Pre-Paid, Post-Paid and Broadband services on a single platform. The flexibility to move for customers your customers Real-time information from Pre-Paid Manage to Post-Paid. your customers and Streamlined their accounts in real time with operational notifications efficiencies to minimise bill shock that come with for your customers managing a single platform interface Convergent platform and billing supports Pre-Paid, Post-Paid and Broadband services on a single platform. The flexibility to move customers from Pre-Paid to Post-Paid. Streamlined operational efficiencies that come with managing a single platform interface Manage your customers and their accounts in real time with notifications to minimise bill shock We support you Be supported by an experienced Telstra Wholesale team throughout onboarding and any future plan changes to enable the successful launch of your mobile products to market MVNO World Congress Gary Bhomer April 2016 Page 28

29 Your branding Market your own branded 3G or 4G mobile and/or mobile broadband offerings to leverage your brand and increase Your your plans market presence Supports a range of plan options Pay As You Go (PAYG), Non PAYG, Bolt-on, Standalone data Your plans Supports a range of plan options Pay As You Go (PAYG), Non PAYG, Bolt-on, Standalone data High quality mobile network We support you Our Mobile Solution is built on our high-quality, reliable mobile network with extensive coverage supported by a cutting edge intelligent network platform and online systems Manage your customers and their accounts in real time with notifications to minimise bill shock for your customers Single platform Real-time information Be supported by an experienced Telstra Wholesale team throughout onboarding and any future plan changes to enable for your customers Real-time the successful information launch of your mobile products to market Convergent platform and billing supports Pre-Paid, Post-Paid and Broadband services on a single platform. The flexibility to move customers from Pre-Paid to Post-Paid. Streamlined operational efficiencies that come with managing a single platform interface Manage your customers and their accounts in real time with notifications to minimise bill shock We support you Be supported by an experienced Telstra Wholesale team throughout onboarding and any future plan changes to enable the successful launch of your mobile products to market MVNO World Congress Gary Bhomer April 2016 Page 29

30 Your branding Market your own branded 3G or 4G mobile and/or mobile broadband offerings to leverage your brand and increase your market presence Your plans Supports a range of plan options Pay As You Go (PAYG), Non PAYG, Bolt-on, Standalone data High quality mobile network We support you Our Mobile Solution is built on our high-quality, reliable mobile network with extensive coverage supported by a cutting edge intelligent network platform and online systems Manage your customers and their accounts in real time with notifications to minimise bill shock for your customers Single platform Be supported by an experienced Telstra Wholesale team throughout onboarding and any future plan changes to enable Real-time the successful information launch of your mobile products to market Convergent platform and billing supports Pre-Paid, Post-Paid and Broadband services on a single platform. The flexibility to move customers from Pre-Paid to Post-Paid. Streamlined operational efficiencies that come with managing a single platform interface We support you Be supported by an experienced Telstra Wholesale team throughout onboarding and any future plan changes to enable the successful launch of your mobile products to market MVNO World Congress Gary Bhomer April 2016 Page 30

31 Telstra has a significant role to play to enable the wholesale market to effectively grow and create highly valued customer interactions and improve speed to market Disruptive technology is changing the market place, presenting challenges and opportunities Needing to manage evolving technology to support growth Higher customer expectation for speed, innovation and real time service This presents new opportunities and challenges for our customers MVNO World Congress Gary Bhomer April 2016 Page 31

32 Flexible and innovative solutions High-performing network Expertise Customise for stronger brand presence and efficient customer management in real time Customise branding and elements of the service for your target market Range of wholesale billing options to support your retail plans State-of-the art intelligent network platform and support systems for real -time billing and charging (converged capability) Integrated business to business system interface providing efficient, seamless online tools for service and real-time account balance management Spend less time worrying about network issues and more time focussing on sales and marketing Coverage depth and breadth High data speed available across our coverage footprint, consistent network capability High quality and high capacity Ethernetenabled backhaul 24x7x365 network health monitoring and proactive capacity management Confidence in being supported by highly skilled people with extensive mobile experience Industry s largest workforce network management and operational support Strong expertise in managing wireless networks Proven ongoing, dedicated account and business operation management MVNO World Congress Gary Bhomer April 2016 Page 32

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