Swisscom Ag · SIX:SCMN
Swisscom — Swisscom Capital Markets Event 2004
22 slides from Swisscom's conference presentation, Apr 2, 2004
Slide 1: Innovation
Innovation Michael Shipton, CSO Frédéric Gastaldo, CEO Eurospot Walter Steinlin, CTO 1-2 April 2004 Swisscom Capital Markets Event Interlaken, Switzerland 1
Slide 2: Approach, Execution, Outlook
Approach § Option building through innovation § Disruption § Swisscom’s approach Execution Outlook Michael Shipton, CSO 2
Slide 3: Innovation as an integral part of option building
Option building through innovation Innovation as an integral part of option building Swisscom strives to identify investments opportunities abroad – a key aspect is the identification of industry disruptions leading to the creation of market niches A company committed to strong fundamentals and fina
Slide 4: Disruption changes the game
Disruption Disruption changes the game The communication industry remains extremely dynamic as disruptive developments in technology and business models quickly reshape the landscape • Silicon developments leading to increased Technology and integrated capabilities driven • IP development leading to
Slide 5: Disruption creates threats and opportunities
Disruption Disruption creates threats and opportunities The changes create a need for incumbent players to react decisively in their own markets, and lead to opportunities for focussed attacks abroad e.g. Wireless LAN Swisscom as incumbent uses WLAN as Abroad, Swisscom enters a new market additional
Slide 6: Swisscom's approach
Swisscom’s approach A systematic approach to execution is essential Swisscom analyses the attractiveness of opportunities by assessing the combination of the disruptive potential and the strength of the niche character High Wireless Broadband PWLAN Luxury DVB-x telecom services Streaming Bundled VoI
Slide 7: Approach, Execution, Outlook
Approach Execution § Occupy § Adapt § Expand § Specific learnings Outlook Frédéric Gastaldo, CEO Eurospot 7
Slide 8: Occupy: speed of land grab was key
Occupy - Occupy: speed of land grab was key ... Eurospot started with acquisitions followed by a fast organic development of the initial footprint The European PWLAN market is Integration of acquisitions in Land grab, i.e. broad approach to a multi-domestic market an entrepreneurial outfit locations
Slide 9: Resulting in successful site acquisition
Occupy ... resulting in successful site acquisition Swisscom Eurospot has quickly secured a leading position in Europe and is recognised as such by the hospitality industry and service providers Number of contracted hotspots • In northern Europe (Germany, UK, 2'000 Benelux), successful location acqu
Slide 10: Occupy: strong national positions
Occupy - Occupy: strong national positions By reaching leading national positions, Swisscom has become a strongly recognised service provider in each of the markets Germany UK Benelux #1 SC Eurospot (580) #1 BT Openzone (956) #1 SC Eurospot (206) #2 T-Mobile (400) #2 SC Eurospot (801) #2 KPN (140) C
Slide 11: Occupy: today Europe's leader in active access points
Occupy - Occupy: today Europe’s leader in terms of active access points Swisscom Eurospot did not only stop at contracting hot spots but also activated a very large number of access points at these locations Active access points 12'000 10'000 8'000 6'000 4'000 2'000 0 Eurospot Swisscom Mobile 11
Slide 12: Adapt: from hotspot operator to service provider
Adapt - Adapt: from hotspot operator to service provider Immediately after initial market-entry, Swisscom Eurospot focused on learning from customers and partners and has adapted and refined its business model. This lead to increased usage month after month : 2000 sessions per day in February. Usage
Slide 13: Expand: a work in progress
Expand - Expand: a work in progress Revenues per active access point is constantly increasing and represents our main performance indicator. In parallel, Eurospot expands along three directions Situative behaviour niches such as “business travellers in vacation”; sales force personnel in 3- star hot
Slide 14: Specific learnings replicable for the future
Specific learnings - replicable for the future 1 Speed and adaptation capability: - Managerial experience - Balance between strategic focus and flexibility - Highly professional implementation 2 Governance: - Specific governance principles adapted to Specific learning to serve ventures as a basis fo
Slide 15: Approach, Execution, Outlook
Approach Execution Outlook § A business focused view § Skills and approaches § Technology trends § A long-term example Walter Steinlin, CTO 15
Slide 16: Swisscom innovations facilitates
A business focused view Swisscom innovations facilitates ... How to facilitate Where to facilitate a) beyond immediate issues: • Scan and identify technologies room to look ahead • Assess relevance for Swisscom b) across current strategies: • Acquire knowledge synergy • Support market introduction c
Slide 17: Business focused view in the innovation programs
A business focused view ... with a business focused view in the „innovation programs“ Integrated Software and Security Media and Service Design Communication Services Technologies Business Support Systems Network Services EMC and Environmental (wired and wireless) Business Impact 17
Slide 18: Interdisciplinary skills and a mix of approaches
Skills and approaches With interdisciplinary skills and a mix of approaches Interdisciplinary Skills Various Approaches § We do Sociologists – Desk research Psychologists – Lab tests – Field trials Economists § We partner – Academia and Industry – International R&D (EURESCOM, Telco Engineers IST, …)
Slide 19: Technology trends follow the Hype-Cycle
Technology trends Technology Trends follow the „Hype-Cycle“- Key is to estimate the „First Market Relevance“ Visibility Hype Productive Market Warm-up Slowdown Take-off Technology Drop Standards -off Trigger Time First Market Relevance Example Public WLAN (802.11b) 1997 1999 2000 2001 2002 TODAY 19
Slide 20: Prioritised Technology Map
Technology trends Our prioritised Technology Map shows the most important technology driven opportunities ri ty i gh prio H big UMTS Services Estimated Wireless Access impact beyond Wi-Fi Residential IP- Open UMTS Enterprise IP- Communication Services Communication ty Virtual Identity p riori medium
Slide 21: Long-term example: wearable computing
A long-term example As a long-term example: wearable computing for private use of telecommunications We need to know § the technologies Follow the adjacent Demo § how people use them of Wearable and Computing ! § how to provide services 21
Slide 22: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements ”This communication contains statements that constitute "forward-looking statements". In this communication, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations an