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Competitive Advantage Through the Mobile Way

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Competitive Advantage Through the Mobile Way Developing our business the Mobile Way Arve Johansen, Deputy CEO Telenor and Head of Telenor International Mobile 1 1 Competitive advantage through the Mobile Way Prioritized areas Human Resources Common segment in the Mobile Way Procurement & Management strategies Infrastructure Alliances Common Product Management Roaming Development Strong group-wide governance Key Success Agility and competence Factors Simplicity & focus Group commitment 2 Competitive advantage through the Mobile Way Prioritized areas Human Resources Common segment in the Mobile Way Procurement & Management strategies Infrastructure Alliances Common Product Management Roaming Development 3 Investment optimisation Human Common Procurement Resources segment & Management strategies Common Infrastructure Alliances Product Management Roaming Development z Mobile business model profitable in new segments z Key drivers – Large group-wide procurement savings – Exploiting opportunities in existing technology – Benchmarking and best practice sharing – Efficient network operations 4 Competitive advantage through the Mobile Way Prioritized areas Human Resources Common segment in the Mobile Way Procurement & Management strategies Infrastructure Alliances Common Product Management Roaming Development 5 The Mobile Way management principles Human Common Procurement Resources segment & Management strategies Common Infrastructure Alliances Product Management Roaming Development Management philosophy Implementation z Integrity z Telenor in key positions in all companies z Passion for business z Management rotation z Change and constant renewal z Succession planning for all z Empower People critical positions z Operational excellence z Bonus and incentives on important value drivers 6 Competitive advantage through the Mobile Way Prioritized areas Human Resources Common segment in the Mobile Way Procurement & Management strategies Infrastructure Alliances Common Product Management Roaming Development 7 Human Common Procurement Resources segment & Management strategies Common Infrastructure Alliances Product Management Roaming Development z Seamless availability of 58 mill. subscribers customer services when roaming z Leverage scale in selected procurement activities z Improved services to multi- national clients z Group cooperation in roaming 8 Competitive advantage through the Mobile Way Prioritized areas Human Resources Common segment in the Mobile Way Procurement & Management strategies Infrastructure Alliances Common Product Management Roaming Development 9 Creating local competitive advantage Human Common Procurement Resources segment & Management strategies Common Infrastructure Alliances Product Management Roaming Development Local responsiveness Best practice & Idea sharing Formal & Virtual networks Common service Common marketing Common segment framework framework go-to-market strategies Mobile Way tools 10 Building the djuice brand Human Common Procurement Resources segment & Management strategies Common Infrastructure Alliances Product Management Roaming Development djuice “offers more” Value Proposition Phone + Tailor- made and Sponsorships and Brand & Communication Reasonable Price plan bundle of services Loyalty Activities with Attitude Tasty sugar water Something Extra Sponsorships Brand & Community And Loyalty Activities with Attitude 11 Building the revenue base Human Common Procurement Resources segment & Management strategies Common Infrastructure Alliances Product Management Roaming Development Services, Partnerships, Events important to develop (ARPU) and retain customers (Churn) Subs / Revenues Handset and Price important to gain critical mass € Time 12 djuice under Telenor leadership Human Common Procurement Resources segment & Management strategies Common Infrastructure Alliances Product Management Roaming Development Norway, Subs: 820 000 z Strategy - market leadership within youth segment Sweden, Subs: 100 000 Ukraine, Subs: 2 350 000 z Reduced time-to-market securing strong segment Hungary, Subs: 340 000 positioning z Positive impact on the mother Bangladesh brand 13 Profitability in low-ARPU segments Human Common Procurement Resources segment & Management strategies Common Infrastructure Alliances Product Management Roaming Development z Volumes and margins matter more than ARPU – Tailored pricing strategies ARPU (NOK) – Manage acquisition costs EBITDA margin – Optimise network costs – New distribution solutions – Fill the networks with traffic! il n n i r e e b fo o iG ta n t o o n s o n M n D v h o n n a i P M o P y n o T S K e r e P m ra G 14 Competitive advantage through the Mobile Way Prioritized areas in the Mobile Way Human Resources Common segment Procurement & Management strategies Infrastructure Alliances Common Product Management Roaming Development Strong group-wide governance Key Success Agility and competence Factors Simplicity & focus Group commitment 15 Pakistan – Deploying the Mobile Way from day Human Common Procurement Resources segment & Management strategies Common Infrastructure Alliances Product Management Roaming one Development z Full-scale industrialisation – Management – Positioning – Network rollout – Business processes z Leveraging Telenor’s greenfield and emerging market expertise – Record speed rollout and launch – Fast subscriber uptake – ”Quality operator” position conquered 16.
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