SIMPLICITY CONVENIENCE ECONOMY IN 2008 THE MARKET SHOWED STRONG APPETITE FOR TRIPLE PLAY OFFERS
Appetite for type of offering Most relevant attributes 2007. Percentage Percentage
Brand (18%) Broadband 2x 63% (21%)
37% TV (51%) Fixed Voice (7%) Others Individual offer Triple play PT LAUNCHED THE TV OF THE FUTURE
DIFFERENTIATED +160 channels FAST ZAPPING HD & 3D LOCAL CONTENT
SPORTS
ENTERT. LEADER IN VOD ADVANCED RECORDING +30 HD CHANNELS
Also available on satellite NEWS
Pioneer in 3D broadcasts KIDS IN 2009 FIBRE TRANSFORMED THE MEO EXPERIENCE
+ SPEED BEST FIBRE Internet up to 100 Mbps NETWORK IN TV IN THE ENTIRE HOME EUROPE WITH + Ability to watch TV in any room without a STB +1.6M HOMES PASSED + QUALITY OF SERVICE Better image, reliability and remote support MEO CONTINUED TO INNOVATE WITH THE INTRODUCTION OF INTERACTIVITY…
WORLD CUP 2010 SECRET STORY
+1 MILLION VISITS 16.5 MILLION VISITS (3RD EDITION)
IDOL THE BIGGEST LOSER
1.5 MILLION VISITS ~2 MILLIONS VISITS … AND TV APPS
FOOTBALL SPORT TV BENFICA TV MEO RADIO
MUSIC BOX MEO KIDDY MEO KIDS MEO SURF
MEO TELEJORNAL SAPO KIOSK FACEBOOK FLICKR MEO KANAL: A CHANNEL FOR EACH MEO CUSTOMER
• 28 thousand channels created to date
• 29 thousand hours of content
• 191 thousand uploaded videos into channels
• Top categories: Family & Friends, Humor and Music
+450 thousand homes have watched Meo Kanal MEO CUSTOMERS GET NEW MEO CUSTOMERS
+3 thousand sales done by MEO customers MEO MULTI-SCREEN AT HOME AND EVERYWHERE
TV TABLETS AND PCs SMARTPHONES
MEO Go! @home @everywhere Advanced TV experience in all screens • 61 channels FREE PAID • PCs, smartphones and tablets • Wi-Fi, 3G/4G of any operator MULTI-SCREEN MOBILITY • Download & Play in VoD EXPERIENCE EXPERIENCE MEO LEADER IN 3P
PT’s 3P market share vs. largest competitor Top of mind (pay-TV) Percentage Percentage
58% 52% 40% 44% 41%
3%
3Q08 3Q10 3Q12 Fixed Fixed player 1 player 2
SOURCE: Annual reports; Publivaga SIMPLICITY CONVENIENCE ECONOMY LEADERSHIP IN MARKET SHARE…
Subscriber market share Percentage
FIXED MOBILE 3Q12 2Q12
Others Others 6% 5% 2% 1% 4% Player 3 6% 7% 8% 1% Player 2 13% 12% 5% 28% Player 2 19% 33% Player 1 51% Player 1 41% 28%
58% 51% 38% 45% 40%
Voice Broadband Pay-TV Voice Broadband1
1 Mobile broadband market share in number of users with dongle NOTE: Data relative to the whole market (not only consumer segment) in the case of fixed SOURCE: ANACOM; Companies’ reports … AND IN TOP OF MIND “What brands do you remember for each of these services?” 2011. Top of mind. Percentage of respondents
MOBILE INTERNET
34% 20%
Player 1 29% Player 1 15%
Player 2 10% Player 2 12%
PAY-TV FIXED TELEPHONE
36% 66%
Player 1 35% Player 1 7%
Player 2 17% Player 2 5%
SOURCE: My Brand 2011 Study (sample of 1,671 respondents) LARGEST COMMERCIAL FOOTPRINT IN THE CONSUMER SEGMENTS
PROACTIVE CHANNELS (PUSH) REACTIVE CHANNELS (PULL)
Door-2- Outbound Branded Multi Inbound Online door stores operator
Up & Acquisition Sales conversion and service-2-sales cross-sell 1,300 3,500 315 3,000 331 1.5 M sales force sales agents sales sales monthly stores agents agents visitors
CONVERGENCE STRONGLY SUPPORTED BY UNIFIED SYSTEMS AND CRM INTELLIGENCE DEMAND FOR INTEGRATED OFFERS IN PORTUGAL
“How do you rank an integrated 4P offer by a single brand?” Percentage 81% are interested in 4P offer 56%
25% 9% 9%
Not interested Little Interested Very interest interested
SOURCE: My Brand “Estudo de mercado do Grupo PT”, November 2011 (N=1671); Primary market research (conjoint-based) ON THE ROAD TO CONVERGENCE
ALL-IP STORAGE FIBRE NETWORK
2G, 3G, 4G
WiFi SYSTEMS AND PLATFORMS FOR MORE THAN 9 MONTHS…
100 PEOPLE + dedicated full-time to the project
20 DEPARTMENTS + and functions involved
80,000 HOURS + for project specification and IS development ON THE ROAD TO CONVERGENCE
STORAGE COST CONVERGENCEFIBRE COMPETITIVE MULTI-PLATFORM OF OFFER APPS AND ALL-IP NETWORK CLOUD PT SERVICES 6TH LARGEST ACCOUNT DATA CENTRE IN TECHNOLOGICAL SHARING AMONG CONVERGENT THE WORLD CONVERGENCE DEVICES SYSTEMS AND IN HIGH-SPEED PLATFORMS NETWORKSWiFi IN ADDITION TO PRICE, MOBILE AND BRAND ARE THE KEY ATTRIBUTES OF 4P Weight of the Relative importance of F-M offers for 3P households characteristic Percentage
Mobile Brand 21% 14%
TV Price 14%
39% Broadband 9%
Others 3% MEO IS THE SELECTED BRAND FOR AN INTEGRATED OFFER
“Which brand would you choose for a 4P offer?” Percentage 31.4%
17.2% 16.2% 13.3% 5.8%
Fixed Mobile Mobile Mobile player 1 player 1 player 2 player 3 MEO BRAND NEEDED TO EVOLVE
+ CONQUEROR + ENTHUSIAST + INTELLIGENT
+ DARING + COURAGEOUS
+ VISIONARY + DETERMINED + CATCHING THE FIRST DAYS OF THE NEW MEO
BIRTH MISTERY CAMPAIGN REVELATION
Cabeço de Vide
Billboards, social Birth of civilisation networks, TV
21.12.2012 11.01.2013
SIMPLICITY CONVENIENCE ECONOMY A NEW ELEMENT IS BORN
TV 85 channels and all advanced features
INTERNET 100 Mbps guaranteed speed
FIXED PHONE Unlimited national and international calls to fixed networks (from 9 p.m. to 9 a.m.)
MOBILE PHONE 2 SIM cards with unlimited calls and SMS to all networks + 200MB mobile internet per SIM card SIMPLICITY CONVENIENCE ECONOMY M4O KEEPS THE LEADING 3P “DNA”
• THE BEST CHANNELS TV • THE BEST INTERACTIVE EXPERIENCE • TV ANYWHERE
• GUARANTEED SPEED INTERNET • HIGHEST SATISFACTION INDEX IN PORTUGAL • FREE ACCESS TO PT’S WIFI NETWORK
FIXED • UNLIMITED NATIONAL CALLS TO FIXED NETWORKS • UNLIMITED CALLS TO +30 INTERNATIONAL PHONE DESTINATIONS NETWORK EFFECT DOMINATES THE MOBILE MARKET MoU Percentage
Off-Net
95% 80%
On-Net
Tribal Non-Tribal Customers Customers PORTUGUESE WILL NOW BE ABLE TO CALL ALL NETWORKS FOR FREE
TOTAL FREEDOM TO TALK AS MUCH AS YOU WANT, WITH WHOMEVER YOU WANT NEW GENERATION DEVICES
Smartphones
Text
Tablets ALWAYS ON, ANYWHERE
INTERNET TV AND MUSIC
Mobile internet with Free traffic 200 MB per card SIMPLICITY CONVENIENCE ECONOMY A UNIQUE CUSTOMER EXPERIENCE
Single invoice and value for the entire Billing family, allowing total cost control Integrated self-care online portal Self-care for all products and services
CRM Integrated customer view
Integrated experience online and Sales at the store ONE INVOICE
TV
INTERNET
FIXED PHONE
MOBILE PHONE ONE VALUE WITHOUT SURPRISES % of Portuguese mobile spending
Unlimited voice calls to all networks • INCLUDED IN THE INVOICE
Mobile services • NO SURPRISES Unlimited SMS to all networks included • NO PENALTIES in Internet up to 200 MB • NO ADDITIONAL CHARGES 98%
International voice calls • CHARGED TO THE PREPAID Other services BALANCE not included Mobile internet >200 MB in • MANAGED INDIVIDUALLY NOT ADDED TO THE INVOICE Other VAS (e.g., ringtones) • 2% ONLINE SELF-CARE PORTAL
1 ACCOUNT 1 USERNAME 1 PASSWORD/CARD ONE PHYSICAL AND ONLINE CHANNEL
PHYSICAL ONLINE
Unique customer care in 100% online 300 MEO stores across the country experience A TRULY INTEGRATED OFFER
Bundle Convergence 1 brand 1 value 1 invoice 1 aggregated 1 aggregated + product ≠ product 1 sales channel 1 call centre 1 website SIMPLICITY CONVENIENCE ECONOMY A NEW ELEMENT IS BORN
TV 85 channels and all advanced features 99 INTERNET 79, 100 Mbps guaranteed speed €/month
FIXED PHONE Unlimited national and international calls to fixed networks (from 9 p.m. to 9 a.m.)
MOBILE PHONE 2 SIM cards with unlimited calls and SMS to all networks +200MB mobile internet per SIM card PORTUGUESE FAMILIES WILL SAVE MONEY…
+SAVINGS 3P
Current service 2P at home
1P
Subscribers of …AND SOME HAVE ALREADY STARTED
+100 families have already subscribed and saved
Bragança 100% SUBSCRIBERS WITH Castelo Branco BETTER SERVICE…
Portalegre … SAVING ~€20/MONTH, Beja 18% OF SAVINGS 6 stores in 4 Districts THE PORTUGUESE WANT SMARTPHONES
Smartphone penetration Percentage of the population
+50% of Portuguese without 57% a Smartphone would like to acquire one 20% if the price was not an issue
SOURCE: Yankee Strategy Analytics INSTALLMENTS INTRODUCED BY MEO
Initial Monthly payment payment Installments up to 12 months 25 € + 12 x 6.24 € (25%) (75%) without interest RP = 99.9 € <
Upfront payment of 200 € 12 x 16.66 € 25% for retail price <200€ + (50%) (50%) 50% for retail price >200€ RP = 399.9 €
MAKING HISTORY AGAIN