Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Investor Day (February 2001)
36 slides from Elisa Oyj Class A's investor day presentation, Feb 7, 2001
Slide 1: Elisa Communications Capital Market Day Radiolinja
Elisa Communications Capital Market Day Radiolinja February 7-8, 2001 Kuusamo 6.2.2001 JLa 1
Slide 2: Some trends in Finnish mobile business
Some trends in Finnish mobile business 6.2.2001 JLa 2
Slide 3: Mobile traffic is increasing rapidly
Mobile traffic is increasing rapidly Usage of networks - minutes (%) 100 90 80 76 70 70 64 60 58 Mobile future! 1996 1999 50 41 2002 40 2005 31 30 20 20 13 8 9 10 3 3 2 2 2 2 0 Local Long-distance International Mobile Source: Ministry of Transport and Source: Ministery of Transport and Telecommunica
Slide 4: Competition is increasing and market structure is changing
Competition is increasing and market structure is changing banks, ISP’s, media houses, IT-houses? 1999-2000 2+G comp. RSLCOM Saunalahti - 2 MNO - n city dna 2G+3G Telia RL - 5 MSP RSLCOM Sonera 2G Saunalahti 2002 => 1997-1998 - 1+n LSP Telia RL 3G comp. 2G comp. Sonera 2001-2002 - 4 MNO - 2 MNO 2,5G
Slide 5: Business life cycles
Business life cycles Creation Collection Fragmentation, Integration, differentiation centralisation Growth Capital Chaos Spinoffs Structures Innovations Economics of scale Cost efficiency New market Sunset Boulevard 6.2.2001 JLa 5
Slide 6: Value chain is changing to value network(s)
Value chain is changing to value network(s) Infra Network Trans- Access Services Application Content Delivery Terminal Integration mission Terminal supplier Content Content MVNO Provider Application Provider Content Provider Provider Content Co-brand Application Infra Integrator (CRM) Integration su
Slide 7: Business evolution
Business evolution Growth business Mature business Market creation Technology Services Customership Functionality Solutions Lifestyle Features Applications Processes One-size-fits-all Generic segmentation One-to-one-segment Mass market Mass Customisation Niche market Differentiation Standard defines
Slide 8: Migration from 2-2,5G towards 3G
Migration from 2-2,5G towards 3G 6.2.2001 JLa 8
Slide 9: Basic assumptions
Basic assumptions • New culture has to be created now, well before 3G • Corporate segment will be the first adaptor (GPRS, 3G) • GPRS will enable most of 3G services • Existing Internet based services will be the first killer apps (banking, news, email, calendar…) • Lifecycle of new services is shor
Slide 10: GPRS is part of evolution
GPRS is part of evolution • Critical success factors • pricing should be sensible and predictable • wide range of ”easy” services • right terminal pricing • GPRS-terminal delay is major threat • for launching network services! • Radiolinja will launch services when there is a relevant market (termin
Slide 11: Speed handicap disappears with new technology (?)
Speed handicap disappears with new technology (?) • Back to reality... • GSM: 9,6..14,4 kbit/s • HSCSD: 14,4..56 kbit/s (like modem) • theoretical maximum 115 kbit/s, but requires whole capacity for one user… • GPRS: 20..40=>80kbit/s (like ISDN) • theoretical maximum 115 or even 176 kbit/s, but requ
Slide 12: Radiolinja's approach
Radiolinja’s approach 6.2.2001 JLa 12
Slide 13: Radiolinja
Radiolinja Vision • A leading provider of wireless communication services in Finland and the Baltic countries, including both business and entertainment • Competent value added service provider on selected foreign niche markets Mission • Radiolinja creates a wireless lifestyle and Mobile Society 6.2
Slide 14: Our business environment is changing
Our business environment is changing • Basic market growth (subscriptions) is slowing down due to market saturation and price erosion. • Competition is increasing due to many new market players. • Mobile telecommunication is facing heavy changes in market structures - media, it and telecommunication
Slide 15: Core business areas
Core business areas • Service provider business • Residential customers • We focus on customer intimacy (strengthening customership, segmentation and loyalty, high quality contact center services, mobile portal services, simplified pricing concepts) • We investigate new business concepts like mobile
Slide 16: Core business areas
Core business areas • Mobile network operator business • MVNO, ESP and SP services • We focus on getting new customers to our domestic network • We are investigating international opportunities for new business (e.g. with Elisa in Germany) • New MNO business • We are seeking new mobile operator busi
Slide 17: Towards customer specific brands
Towards customer specific brands • We aim to produce long-lasting competitive edge through the concept of customer relationship management. The first brand customer concept - DJ Esko - sells, markets and develops products and services for youngsters and pioneers. • Promises made in communications ar
Slide 18: DJ Esko 1.0 service pack for pioneers
DJ Esko 1.0 service pack for pioneers Wireless lifestyle, Mobile society- examples • Radiolinja has launched the DJ Esko 1.0 service pack for pioneers and mobile telephone users that are young at heart. • WAP-like menu and services • personal Internet connection • saldo account reminder • Ilmari e-m
Slide 19: New emerging business areas
New emerging business areas • Market has to be created • Mobile portal services • We provide Mobile portal platform -concept and mobile internet access (through WAP, GSM LAN, GPRS, 3G) • Content Services • We focus on 3 main areas • Lifestyle services (e.g. church, fitness) • Entertainment (e.g. mob
Slide 20: New emerging business areas
New emerging business areas • Strong potential for global markets • New innovations and concepts will provide business opportunities even for a global marketplace • Demand for high quality partner network • Success in new business areas will be based on partnering. There will be strong emphasis on c
Slide 21: Mobile portal platform
Mobile portal platform Wireless lifestyle, Mobile society- examples • Radiolinja has developed open Mobile portal platform concept for portal providers willing to extend portal services to mobile users. Concept can be tailored from a specific service element to full turnkey solution. • Authenticatio
Slide 22: Summary
Summary • Yes, there is change(s) going on • convergence, migration to 3G, competition, maturing of mobile communications market • Radiolinja is ready for new technologies • GPRS will be launched parallel to major terminal launches • 3G will be rolled out 2002 according to plans • Radiolinja is read
Slide 23: Supplementary material
Supplementary material 6.2.2001 JLa 23
Slide 24: Radiolinja's approach - some examples
Radiolinja’s approach - some examples 6.2.2001 JLa 24
Slide 25: A mobile remote for your home
Wireless lifestyle, Mobile Society – examples A mobile remote for your home • Radiolinja, together with ABB Control Oy, introduced the e-Näpsä! service, which enables wireless remote control of home’s electrical systems through a WAP phone. • At its simplest e-Näpsä! consists of an electrical distri
Slide 26: Faster first aid with locationing
Wireless lifestyle, Mobile Society – examples Faster first aid with locationing • Radiolinja, together with Finnish Red Cross, piloted locationing services, which enable field co-ordination of first aid paramedic units. • Enables faster direction of first aid to emergency spots • First aid personnel
Slide 27: Safe electronic payment
Wireless lifestyle, Mobile society - examples Safe electronic payment • Radiolinja is developing a verification service relating to safe electronic payment together with the National Population Register Centre. • The service will provide Radiolinja’s mobile phone subscribers with personal electronic
Slide 28: A world of mobile games at your service!
Wireless lifestyle, Mobile society – examples A world of mobile games at your service! • Radiolinja’s customers will soon be able to enjoy SMS-based mobile phone games developed by the Finnish company Riot Entertainment on the basis of various movie themes. • The games are international - it is easy
Slide 29: WAP phone as a teaching aid
Wireless lifestyle, Mobile society – examples WAP phone as a teaching aid • Radiolinja and CODEONLINE Oy, a developer of wireless applications for practical and entertainment use, have together implemented a pilot project in which the WAP phone was used as a teaching aid in elementary school. • The
Slide 30: Fun and entertainment: WAP Golf Counter
Wireless lifestyle, Mobile society – examples Fun and entertainment: WAP Golf Counter • Radiolinja has developed a WAP Golf Counter that has been tested in Radiolinja’s own golf tournament. • You can access the counter by entering a given address on your WAP. On the startup screen, the counter asks
Slide 31: About basic market indicators
About basic market indicators 6.2.2001 JLa 31
Slide 32: What is penetration?
What is penetration? • Number of subscriptions devided by national population? • usually related (only) to personal services • basic assumption: subscriber = person • all types of subscriptions are divided by population, what does it tell about markets? • How about e.g. Telematics and EAI ? • There
Slide 33: Development trend for business growth and penetration
Development trend for business growth and penetration ”Traditional definition” Mobile 6.2.2001 JLa 33
Slide 34: Development trend for business growth and penetration
Development trend for business growth and penetration Example only Communication Mobile VAS Content Telematics/location eCommerce 6.2.2001 JLa 34
Slide 35: What is ARPU?
What is ARPU? • Average Revenue Per User • usually related (only) to personal services • user = person • all types of revenues are divided by people, what does it tell about nature of business? • How about e.g. Telematics and EAI ? • There is no human ”user”… ”user” may be computer, measurement devi
Slide 36: Development trend for ARPU
Development trend for ARPU Example only Communication Mobile VAS Content Telematics/location eCommerce 6.2.2001 JLa 36