Roger Ballance. Executive Vice President Sales & Marketing

Transcription

1

2 Roger Ballance Executive Vice President Sales & Marketing

3 Canadian Telco Industry! Significant changes! New entrants! Consolidations! Fierce competition! MTS approaching market from position of strength

4 Agenda Market position Value proposition Wireless

5 Manitoba Market 1999 MTS Baseline Revenues Data/Internet/ Wireless 27% Traditional Operations 73%

6 Leadership Position Market Share Local services Approx. 100% Long distance 79% Wireless 69% Internet access > 60%

7 Leadership Position Delivering High Quality Competitively Priced Services

8 Value Proposition! High levels of:! Brand recognition! Customer satisfaction! Customer loyalty! Full service provider! Significant asset

9 Value proposition Price Competitiveness! Price leader! Avoid unnecessary re-pricing! Supported by tight cost controls! Process reengineering! Renegotiated contracts! Bell Alliance

10 Value Proposition Price Competitiveness Low Cost Provider! Internal e-business project! Redesigning interaction with:! Customers! Suppliers! Workforce! Improves cost structure! Areas of focus:! Repair services! DSL provisioning! Dealer/channel extranet

11 Value Proposition Comprehensive Portfolio of Services! Wireline! Wireless! Internet access! Security services! NGN broadband enabled services

12 Value Proposition Service-Bundling! Drives stimulation! Current approach! Selectively introducing as market conditions warrant! Rewards loyalty! Less incentive to shop around

13 Value Proposition Convenience and Accessibility! One face to customer through:! Organization structure! Distribution channels! Billing

14 One Face to the Customer Organization Structure! CRTC Decision Oct/99! Joint marketing and bundling!wireline!wireless! MTS immediately moved to integrate operations

15 One Face to the Customer Integration of Wireline & Wireless! Combined Resources! Operations! Staffing! Real estate! Distribution channels! Customer care! Other back office functions

16 One Face to the Customer One Face to the Customer ISP Business! Moved to MTS Communications! Integrated approach

17 One Face to the Customer One Face to the Customer Channel Distribution! Channel Revamping:! Innovative! Aggressive! Proactive! Positions MTS as premier service provider

18 One Face to the Customer Channel Distribution e-tailing! Opportunity for sales and marketing! Refocused website as distribution channel

19 One Face to the Customer Channel Distribution e-tailing! All MTS products and services online! Order services! Access bills! Full customer service

20 One Face to the Customer Channel Distribution e-tailing Web-based call center! Live interactive sales chats! B2B and B2C! Leading edge application! MTS an early adopter! Permission marketing! Close sales in realtime

21 Internet Popular Services - Customer Interest Other 15% 85% Wireless Services High Speed Internet Dial Up Internet

22 One Face to the Customer Channel Distribution - Enhanced Retail! Offer full suite of services! Residential and small business customers! Fashioned after Bell World stores

23 One Face to the Customer Channel Distribution Connect Stores!6 franchise stores in Winnipeg and Brandon!1 corporate store! Develop skills! Test products! Set standards! Manage channels

24 One Face to the Customer Customer Care and Billing!Key requirement in value proposition!substantial investment! $12 million

25 One Face to the Customer! Combined bill! Wireline and wireless! Single point of contact in customer care group! Single bill available to high end customers! Q3/00

26 Plan/Approach Value Proposition Price Breadth and Quality of Service Convenience

27 Leveraging Core Competencies Ontario Justice - Video Conferencing! 90 locations! Multi-million dollar contract! Hardware sale! Facilities installation! Administration

28 Wireless Strong Manitoba Franchise (000 s) Customers ($M) 82.2 Revenues Dominant market position 69%

29 Wireless Growth! Growth from increases in! Subscribers! Minutes! New wireless applications! Forecast customer growth! 40% - 50% over next few years! Manitoba penetration rates! Currently 21%! Opportunity to move to national levels

30 Wireless Prepaid! 8% of customer base! Entree to wireless! Migrate to post paid! 32% of 1999 net activations

31 Wireless Post Paid! Pricing very competitive! Strong increase in PCS activations! PCS subscribers doubled in H1/00

32 Wireless Revenues and Profitability! ARPU of $56! Customer churn 1.4%/month! One of the lowest in North America! Contributes to profitability

33 Wireless Growth Wireless Data Offerings! Today - CDPD technology over analog network! Wireless point of sale offering! Full credit card processing! Utilizing service for internal e-business! Technicians equipped with laptops with wireless capabilities

34 Wireless Growth Wireless Data Offerings! Implementing CDMA technology! Introduce new services Q4/00! Mobile Browser

35 Wireless Growth Mobile Browser! National content from Bell! Local content by MTS Advanced! Uses Bell s WAP server! 800 MHz or 1.9 GHz handsets!content

36 Wireless Growth Content! Financial information! Trading capabilities! Movie listings! Weather! Sports results

37 Wireless Data! $2 million capital spending in 2001

38 Wireless Infrastructure! Most extensive footprint! 96% of population! Analog and digital PCS! 800MHz in major urban centres! 1.9GHz in Winnipeg/24 sites

39 Additional Spectrum Manitoba! Bidding for 10 MHz in Manitoba! Accommodate growth! Wireless voice! Data services! Supported by 2.5 and 3G equipment! Auction expected to begin in Q1/01

40 Wireless Network Manitoba Expansion 2001! Extending 800 MHz service! Major transportation routes! Additional communities! Expanding 1.9 GHz! Winnipeg Cellular coverage Digital 800 MHz coverage Brandon Winnipeg

41 Priorities Enhancing the value proposition Increasing share of wallet Winning thru e-business project Cost management

42