zitius new zeeland 2012
DESCRIPTION
Open Access Networks, presentation of broadbandservices presentation from New Zealand 2012TRANSCRIPT
Zitius OPCO "Experiences from the Swedish Market"
Sören Fernström, co-founder
”It’s not about technology it’s about relations and business models”
Can you imagine?
Imagine an airport…
… with one Airline: … with many Airlines:• Limitless destinations• Huge competition• Fair prices!• Freedom of choice
• Limitation of destinations• No competition• Fair prices?• Slow development
100/10 Mbps, NZD 331000/100 Mbps, NZD 37VoIP, NZD 6 IPTV (18 channels), NZD 24100Mbps Triple play, NZD 53(VoIP, IPTV, 100/10)
An airport for RSP:sThe universe of Zitius
• Freedom of choice
• Many RSPs
• Limitless variations of services
• Huge competition
• Change RSP whenever you want
• Fair prices UNCAPPED !!!!
RSP’s
NetCo=Infrastructure owner
OpCo=Lessee+manager of airport
• In 1994 it was estimated that the need for fiber infrastructure in Sweden exceeded 250 000 km to reach out to 99% of the population, to a sum of €10 billion.
• The “Home PC” project ensured everyone could get a computer from their employer, with high tax subsidy.
• The target for Swedish strategic Broadband service today is “before 2020 , 90% of all Swedish citizens and company's should have >100 Mbps access”. Today we have reached >10 Mbps.
• The City Networks around Sweden got huge government subsidies, under the precondition that they also had to open up their networks for competition. Today they are even forced to climb down in the food chain and stop distribute their own broadband services.
Actions taken by the Swedish Government
• Fixed voice - Mobile Network – Skype
• Future?
• Freedom of Choice - Competition
• Problem, challenge or business opportunity?
The world is changing fast!From monopoly to freedom of choice
Subscriber
A simple business model
RSP
OpCo
NetCo
Revenue stream
The subscriber receives a single invoice per month from their RSP
The OpCo invoices the RSP
The NetCo invoices the OpCo
Subscriber
A simple business model
RSP
OpCo
NetCo
Sweden
Subscriber
RSP
?
NetCo
New Zealand
A close call
• We travelled all over Sweden (twice as big as New Zealand) for two years to meet NetCos who where in big need for a helping hand
• Instead of signing contracts and do high margin business with Landlords next door
• Those mistakes almost cost us our business
Council/State Landlord•18% after 12 month
•25% after 24 month
•35% after 60 months
•Competition from Cable and DSL
Facts we didn´t have
Average broadband penetration in Sweden = 54%
(Excluding retirement homes, and services accommodation)
Houses/Condominiums•60% after 12 month
•70% after 24 month
•>80% after 60 months
•Competition from Cable and DSL
Private Landlord•25% after 12 month
•35% after 24 month
•55% after 60 months
•Competition from Cable and DSL
New Houses/Condominiums•85% after 12 month
•87% after 24 month
•>87% after 60 months
If we had the facts
Customers ranked by ROI
1.New Condominiums/Houses
2.Condominiums/Houses
3.Private Landlords
4.Council/State Landlords
Customers with the most need
1.Council/State Landlords
2.Private Landlords
3.Condominiums/Houses
4.New Condominiums/Houses
Conclusion
• Go for the deal with the highest margin, not the biggest need
• Educate your customer
• Simplicity is far better then being unique
• Ensure Longevity, long relations is the key to success
• Do your homework, don´t ignore the facts like we did
Who will be the first Zitius in New Zealand?
“Internet is perhaps the most democratic medium in human history. Therefore, it is the democratic state's responsibility to work for all
citizens in one way or another to access the Internet”