Hutchison Telecommunications (Australia) Ltd
Hutchison Telecommunications (Australia) — Citigroup Wireless Conference 2005
28 slides from Hutchison Telecommunications (Australia)'s conference presentation, Jun 8, 2005
Slide 1: ASX announcement: CEO Presentation
Hutchison Telecommunications (Australia) Limited ABN 15 003 677 227 A member of the Hutchison Telecommunications Group Building A, 207 Pacific Highway St Leonards NSW 2065 Tel: (02) 9964 4646 Fax: (02) 9964 4811 www.hutchison.com.au Companies Announcements Office Australian Stock Exchange Date 8 Jun
Slide 2: Citigroup Wireless Conference, 8 June 2005
Citigroup Wireless Conference 8 June 2005 Kevin Russell, CEO
Slide 3: In mobiles, 3G is a technology step change
In mobiles, 3G is a technology step change.
Slide 4: 3G network vs 2G
3G network vs 2G • More efficient across both voice and data – 4 to 6 times capacity improvement over GSM • Mobile technology for data services • Standardised roadmap with global commitment A fully loaded 3G network is estimated to cost 25% of an equivalent fully loaded GSM network 3
Slide 5: 3G momentum is building
3G momentum is building.
Slide 6: Globally
Globally 70 3GSM operators by end 2004 2002 2003 2004 Q1 Q2 Q3 Q4 2005 planned
Slide 7: Locally
Locally • All four operators in market by end ’05 • Commitments made to comprehensive 3G build • Major handset suppliers in market by end ’05 • Voice pricing falling, usage climbing : 3G capacity urgently required How far have we moved in last 12 months…. 6
Slide 8: 3G is about both voice and non-voice revenues
3G is about both voice and non-voice revenues.
Slide 9: Growing voice usage and revenues
Growing voice usage and revenues • Australian mobile voice pricing historically high and usage low • Declining prices are stimulating fixed to mobile substitution • Trend is set to accelerate driven by: – increased capacity – increased competition – increased consumer awareness – proposed 43% declin
Slide 10: Global trends
Global trends 0.7 France 03 Mobile voice revenue / Fixed and Mobile voice revenue (%) Spain 03 Portugal 02 0.6 UK 04 Norway 03 US 03 Sweden 03 Germany 03 0.5 NZ 04 Australia 04 Switzerland 02 0.4 0.3 0.2 0.1 0 0 1 2 3 4 5 6 7 8 Mobility premium (x) Australia will narrow the gap with global peers Sou
Slide 11: Incremental revenue growth from non-voice services
Incremental revenue growth from non-voice services • Current non-voice ARPU for incumbents is largely driven by SMS • Current market size estimated at over $1 billion $15.81 • 3G will grow incremental non-voice $14.00 $12.41 revenue $7.70 $8.20 $5.80 Telstra Optus Vodafone 3 Source: Company announce
Slide 12: If we build them will they come?
If we build them will they come?
Slide 13: Yes, people are using it
Yes people are using it.
Slide 14: 65% browse regularly
65% browse regularly.
Slide 15: Purchase regularly
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Slide 16: Content and services examples
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Slide 17: Big Brother with 24/7 Live Cam TV
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Slide 18: Business solutions and applications
real home/office estate video surveillance sales & field force productivity custom mobile applications www.polymorphicsolutions.com.au
Slide 19: Opportunities and challenges for incumbent and greenfield operators
The opportunities and challenges for incumbent and greenfield operators in 3G are profoundly different.
Slide 20: How quickly: the incumbents' considerations
How quickly … the incumbents’ considerations • Migration costs: retention and churn stimulation • Major capex spend … legacy systems and investment • Shareholder expectations • Conflicting business priorities • Internal commitment and change The slower … the better 19
Slide 21: How quickly: the Hutchison view
How quickly … the Hutchison view • It’s about incremental growth… not retention • Investment made … fill the network • Maximise the leadership window • Service revenue will take off with scale and education The quicker … the better 20
Slide 22: The 'tipping point' of 2G to 3G migration
The ‘tipping point’ of 2G to 3G migration may be sooner than many predict.
Slide 23: Triggers for 3G take-up
Triggers for 3G take-up • All major operators offering 3G services • Network quality comparable to GSM • Handset range from leading suppliers and prices falling • 3G service penetration and usage building • Market share gains by 3 Late 2006 appears a possible inflexion point 22
Slide 24: We are uniquely positioned
We are uniquely positioned.
Slide 25: 3 – a unique opportunity
3 – a unique opportunity • Uncompromised focus on 3G • Purpose built systems and cost structure • Global branding and know-how • First mover advantage • A new entrant with sustainable network leadership 3 is, and will continue to be, the 3G leader in Australia 24
Slide 26: In closing...
In closing...
Slide 27: Summary
Summary • 3G momentum is building – locally and globally • 3G is the growth mobile market • 3G is about both voice and non-voice revenue • The 3G opportunity for incumbents and greenfield operators is profoundly different • Hutchison is uniquely positioned in Australia for 3G take off 26
Slide 28: Thank You
Thank You.
Hutchison Telecommunications (Australia) — Citigroup Wireless Conference 2005 on 6ix