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(Microsoft Powerpoint MobileMobile commercecommerce inin CzechRepublicCzechRepublic Pleas pay attention OndOnd řřejej ČČáástekstek to the notes by some castekcastek @mail.@mail. munimuni ..czcz of the slides MobilecommerceMobilecommerce SetSet ofof processesprocesses connectedconnected toto realizationrealization ofof businessbusiness transactionstransactions andand executedexecuted viamobileviamobile technologiestechnologies inin realreal timetime (online)(online) MobileMobile technologiestechnologies InfrastructureInfrastructure operatedoperated bymobilenetworkbymobilenetwork carrierscarriers 2 MM--commercecommerce applicationsapplications Content services (sending of messages , dictionaries , …) Messaging – sending SMS/MMS to customers Remote Access/Mobile Office ( access to company ´s intranet) Emergency Services (112, 911) Video and audio data – usually by 3G services Entertainment – games , competitions , ringtones Tailing – purchasing or reservation of tickets (Mobitickets ) Financial Services – banking and broking Payment – m-payments Navigation – Global positioning system Telemetry – automatic sending of data between machines Marketing services – SMS inquiries , company ´s logos, collecting of loyalty bonuses via mobile phone 3 DeterminantsDeterminants ofof mm--commercecommerce MobileMobile phonephone penetrationpenetration TechnlogiesTechnlogies implementedimplemented ServicesServices offeredoffered 4 TechnologyTechnology basesbases ofof mm--commercecommerce 0G 2G 3G • PTT • GSM • W-CDMA • MTS • iDEN o UMTS (3GSM) • IMTS • D-AMPS o FOMA • AMTS • IS-95 /cdmaOne • 1xEV-DO /IS-856 • OLT • PDC • TD-SCDMA • MTD • CSD • GAN /UMA 0.5G • PHS 3.5G • Autotel/PALM 2.5G • HSDPA • ARP • GPRS 3.75G 1G • HSCSD • HSUPA • NMT • WiDEN 4G Frequency bands • AMPS 2.75G • SMR • Hicap • CDMA2000 • Cellular • CDPD 1xRTT /IS-2000 • PCS • Mobitex • EDGE (EGPRS) 5 • DataTac TechnologiesTechnologies availableavailable inin CRCR NMTNMT analogueanalogue ,, voicevoice onlyonly GSMGSM 14,414,4 kbpskbps GPRSGPRS 57,657,6 kbpskbps HSCSDHSCSD 171,2171,2 kbpskbps EDGEEDGE 384384 kbpskbps CDMA2000CDMA2000 20482048 kbpskbps UMTSUMTS 19201920 kbpskbps 6 ThirdThird generationgeneration (3G)(3G) MuchMuch fasterfaster datadata transmissiontransmission thanthan beforebefore ThereforeTherefore newnew servicesservices possiblepossible DevicesDevices ofof higherhigher performanceperformance NewNew servicesservices involveinvolve multiplymultiply partiesparties 7 FourthFourth generationgeneration CurrentlyCurrently areare standardsstandards underunder developmentdevelopment AtAt leastleast 1010 timestimes greatergreater capacitycapacity HigherHigher speedsspeeds (100(100 MbpsMbps stationarystationary conditionsconditions ,20,20 MbpsMbps atat 100100 mphmph )) 8 PenetrationPenetration inCRinCR Numberof subscribers (in thousands) 5000 4500 4000 3500 3000 TelefonicaEurotel 02 2500 OskarVodafone 2000 T-mobileT-mobile 1500 1000 500 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 9 MobilesMobiles vs.vs. LandlinesLandlines Number of subsribers Number of subscribers inhabitants 100 per Number of subscribers of public landlines Number of subscribers of public mobile networks Number of subscribers of public mobile networks per 100inhabitants Number of subscribers of public landlines per 100inhabitants 10 Yearly revenues per subscriber in Czech Republic in USD 3500 3000 2500 2000 1500 1000 500 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Mobile telecommunication revenue in Czech Republic in mil. USD 2500,00 2000,00 1500,00 1000,00 500,00 0,00 11 1995 1998 1999 2000 2001 2002 2003 Country 1994 1999 2003 Country 1994 1999 2003 Australia 881 594 429 Luxembourg 960 387 359 Austria .. 515 646 Mexico 1570 199 197 Belgium 1932 502 460 Netherlands 1543 380 463 Canada 703 466 432 New Zealand 412 312 332 Czech Republic 2965 437 227 Norway 488 277 381 Denmark 462 378 371 Poland .. 363 208 Finland 2995 485 533 Portugal 1176 332 395 France 875 310 358 Slovak Republic .. 19 195 Germany 1129 701 353 Spain 842 423 384 Greece 215 402 392 Sweden 407 299 285 Hungary 1021 477 254 Switzerland 1007 546 535 Iceland 428 267 402 Turkey 353 86 114 Ireland .. 486 458 United Kingdom 0 328 319 Italy 886 292 331 United States 630 583 554 Japan 3132 1056 932 OECD 917 537 12454 Korea 1232 311 396 MarketMarket structurestructure inin CRCR NumberNumber ofof CoverageCoverage NetworkNetwork EBITDAEBITDA activeactive SIMSIM ARPUARPU ofof CarrierCarrier ((billionsbillions CZK)CZK) cardscards populationpopulation TelefTelef .. OO 2 44 770770 000000 533533 (n/a)(n/a) 10,410,4 (( --2%)2%) 9999 %% VodafoneVodafone 22 263263 000000 679679 (+3)(+3) --0,460,46 (( --23,4%)23,4%) 98,498,4 %% TT––MobileMobile 44 734734 000000 483483 (( --4)4) 9,679,67 (+8,3%)(+8,3%) 9999 %% Active SIM cards total: 11 767 000 Population est.: 10 235 000 Penetration: 115 % As to 30th June 2006 13 TelefTelef óónicanica OO22 WholyWholy ownedowned byby ČČeskýeský TelecomTelecom ČČeskýeský TelecomTelecom nownow ownedowned byby TelefonicaTelefonica S.A.S.A. 1991NMT1991NMT 1996GSM1996GSM 20002000 MarchMarch HSCSD,HSCSD, OctoberOctober GPRSGPRS 2004CDMA2004CDMA 14 RebrandingRebranding ofof EurotelEurotel FirstFirst namename waswas ČČeskesk áá sprspr áávava PoPo šštt aa telekomunikactelekomunikac íí ((untiluntil 1992)1992) In1992In1992 waswas establishedestablished newnew companycompany calledcalled SPTSPT TelecomTelecom (monopolyin(monopolyin landlineslandlines )) andand EurotelEurotel (monopolyin(monopolyin mobilesmobiles ),), thethe marketingmarketing costscosts werewere estimatedestimated toto bebe moremore thanthan 10mil10mil KK čč In2000In2000 waswas SPTSPT TelecomTelecom renamedrenamed toto ČČeskýeský TelecomTelecom ,, thethe costscosts areare believedbelieved toto bebe aboutabout 250mil250mil KK čč TheThe lastlast changechange waswas ofof bothboth namesnames ((ČČeskýeský TelecomTelecom andand Eurotel)Eurotel) toto TelefTelef óónicanica O2O2 CzechCzech RepublicRepublic ,, thethe rebrandingrebranding costscosts areare estimatedestimated toto bebe ccacca 500mil500mil KK čč 15 TT--MobileMobile 19961996 CompanyCompany namednamed RadiomobilRadiomobil obtainedobtained GSMGSM licenselicense 19961996 LaunchedLaunched networknetwork calledcalled PaegasPaegas == firstfirst everever competitioncompetition onon CzechCzech telecommunicationtelecommunication marketmarket 20022002 RenaimedRenaimed toTtoT --MobileasMobileas approxapprox .60,6%.60,6% boughtbought byTbyT --Mobile,Mobile, wholywholy ownedowned byby DeutscheDeutsche TelecomTelecom AGAG 16 RebrandingRebranding ofof PaegasPaegas CompanyCompany RadiomobilRadiomobil hadhad beenbeen operatingoperating networknetwork calledcalled PaegasPaegas In2002TIn2002T --mobilemobile undertookundertook a3a3 monthsmonths marketingmarketing campaingcampaing valuedvalued atat 500500 –– 600mil600mil KKčč 17 VodafoneVodafone LicenseLicense sincesince OctoberOctober 1999,network1999,network launchedlaunched in2000in2000 20012001 andand 20022002 WorldWorld CommunicationCommunication AwardAward asas WorldWorld ´´ss bestbest mobilenetworkmobilenetwork carriercarrier 20052005 BoughtBought byby VodafoneVodafone GroupGroup PlcPlc .. 18 RebrandingRebranding ofof OskarOskar AsAs itit waswas boughtbought byby VodafoneVodafone in2005,in2005, itit changedchanged itsits namename toOskartoOskar VodafoneVodafone firstfirst andand 1.2.2006to1.2.2006to VodafoneVodafone finallyfinally TheThe marketingmarketing campaingcampaing startedstarted inin JulyJuly 20052005 andand havenhaven ´´tt finishedfinished untiluntil FebruaryFebruary 20062006 ApproximatelyApproximately 500milK500milK čč waswas spentspent 19 HowHow theythey werewere allall changingchanging 20 TechnologiesTechnologies CarrierCarrier GSMGSM HSCSDHSCSD GPRSGPRS EDGEEDGE CDMACDMA UMTSUMTS TelefonicaTelefonica YesYes YesYes YesYes NoNo YesYes NoNo OO2 VodafoneVodafone YesYes NoNo YesYes YesYes NoNo NotNot operatingoperating TT––MobileMobile YesYes NoNo YesYes YesYes NoNo YesYes SpeedSpeed 14,414,4 57,657,6 171,2171,2 384384 20482048 19201920 ((kbpskbps )) 21 CompetitionCompetition nowadaysnowadays atat CzechCzech mobilemobile telecommunicationtelecommunication marketmarket isis strongstrong becausebecause :: TheThe realreal penetrationpenetration isis aboutabout 85%85% == providersproviders fightfight forfor thethe restrest TheThe shareshare ofof prepaidprepaid customerscustomers isis highhigh == providersproviders wantwant postpost --paidpaid 3G3G isis launchinglaunching == datadata servicesservices isis aa wayway toto raiseraise ARPUARPU 22 % of all people older 15years Total 15+ Real Males Real Females penetration penetration 16– 24 25– 34 35– 44 45- 54 55- 64 23 23 65+ HowHow toto getget newnew customerscustomers whilewhile thethe realreal penetrationpenetration isis 8585 %% InIn somesome countriescountries ((GermanyGermany )start)start upup ofof virtualvirtual providersproviders focusedfocused onon specialspecial segmentssegments ((elderselders ,, lowlow spendingspending customerscustomers )) AnotherAnother wayway isis aa dealdeal withwith resellersresellers ((AustraliaAustralia )) TheThe fastestfastest andand cheapestcheapest isis toto makemake newnew plansplans //tariffstariffs .. ItsIts sideside effecteffect isis alsoalso thatthat thethe pricesprices areare hardhard toto comparecompare ,, soso thethe customercustomer isis notnot soso priceprice sensitivesensitive 24 PrepaidPrepaid vs.vs. PostpaidPostpaid PostpaidPostpaid customerscustomers aremuchmorearemuchmore profitableprofitable -- VodafoneVodafone hashas aboutabout 50%50%
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