1. Telecoms Loyalty and Churn:
How to retain customers in today’s
competitive and convergent
markets
December 6, 2011
Moscow
2. About ETNO
ETNO’s 40 full members and 10 observers from Europe and
beyond represent world leading telecoms operators and ICT
manufacturing providers.
ETNO members and observers account for an overall turnover of
€600 billion and 1.6 million employees.
Through their investment and innovation efforts, ETNO members
and observers directly contribute to bringing the benefits of
broadband to all, thereby achieving the goals of the Digital
Agenda for Europe.
3. ETNO Objectives
Promote its members’ common interests by developing ETNO
positions and communicating them to European Union policy
makers
Contribute to the development of a transparent and fair
commercial and regulatory environment for the European
telecommunications market and for its members when operating
outside Europe
Facilitate cooperation and coordination of activities between
Members
4. ETNO membership
Full Members
• European entities offering electronic communications networks
Observer Members
• E-communications networks and service providers from outside
Europe
• ICT equipment manufacturers
ETNO members participate in ETNO 14 technical working groups and
contribute to define joint European positions. ETNO members benefit
from full insight into EU policy and regulatory developments. ETNO
provides its members with a platform for exchange and cooperation
among industry players.
5. *
* T-Group companies who are members of ETNO: Deutsche Telekom, Hrvastki Telekom, Magyar Telekom, Makedonski
Telekom and Slovak Telekom,
7. ETNO on the International scene
Cooperation Agreements with SAMENA Telecommunications
Council (South Asia, Middle East and North African
association) and US Telecom. Future cooperation with Latin
American operators.
Regular information exchange and joint statements on
regulatory and policy issues of common interest.
Joint meetings and events (ETNO/SAMENA first CEO
Meeting, Istanbul June 2011, ETNO Forum in Washington
November 2011).
Sector member of the ITU.
8. Telecoms Loyalty and Churn:
EU Telco’s strategies
Commitment to enhance Quality of services for both fixed and
mobile services
Strengthen the customers’ relationship through ancillary services:
security, protection of data, customer care, online alternative dispute
resolution mechanism
Offering new type of services that combine services that were
before separated: triple play packages combining voice, data tv and
bundle offers delivered with better prices for consumers.
Better care for new customers: children protection, safer internet,
services to disabled and elderly.
Differentiated mobile and fixed data offers tailored to needs
9. Customer retention:
The European Context
Strong competitive pressure at retail level
Ex-ante regulation at wholesale level
Increased network and platform convergence/ Fixed and mobile
substitution
Net Neutrality debate: threat to innovative business models and
customer offers?
12. Commercial trends: continued internet traffic growth and
fall in out of bundle revenues
Global Consumer Internet Traffic
Market trends observed in the Netherlands 70000
KPN: Use of instant messaging apps and other
60000
‘over the top’-applications leads to declining SMS
traffic; lower out of bundle revenues 10797
50000
Commercial strategies of MNOs include attempt
to increase billed ARPU via monthly fees
40000 8375
P B /m o n th
Cisco VNI finds continued data growth 30000 6523 33620
Internet traffic will increase fourfold over next 5054
24357
5 years. Overall, IP traffic will grow at a compound 20000
17583
annual growth rate of 32 percent 2010 - 2015. 3771
12146
2888 8079
Traffic from wireless devices will exceed traffic 10000
4672 13797
from wired devices by 2015 4968 6017 7277 8867
11040
0
2010 2011 2012 2013 2014 2015
File Sharing Internet Video Other
13. Rapid traffic increase contrasts with declining revenue
for EU telecoms sector
First EU digital Scoreboard*:
Negative revenue growth driven
by decline in fixed and mobile
revenue
Decline in revenue linked to
structural adjustments in the
sector
Disconnect between network
revenues and revenues from
OTT applications
Investment in mobile and fixed
equipment no longer increasing
2008 2009
*Digital Agenda Scoreboard Report, SEC(2011) 708
14. Managed services and quality of service classes promote
innovation and consumer choice
Commercial service differentiation e.g. regarding to quality is a reality in the internet
today; emergence of new models should not be restricted ex-ante
Network innovation and quality of service (QoS) increase efficiency of the network and
enable new services over broadband.
New commercial models on two-sided markets can open up possibilities for new services
and attract new customers to internet-based services
Europe should promote open and interoperable standards for IP-based
Interconnection at specified quality of service
QoS Interconnection alongside public internet (e.g. IPX-based) and QoS classes alongside
best effort services in the public internet
Safeguards against anti-competitive behaviour:
Competition on retail broadband markets (infrastructure or service-based)
Increased end-user transparency
Continued availability of best effort internet
Competition law tools
