Transcript Neuf TV

Neuf Cegetel
Leading alternative operator in France
July 2006
Contents

Leading alternative operator in France

Innovation lies at the heart of our strategy
 Some examples: Neuf TV, the BeautifulPhone, TWIN™, multiplay
solutions for business customers

Strong foundations are the basis for the growth of the group

Quality is the number one priority for the group

Dynamic growth in the wholesale, business and residential markets
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Leading alternative operator in France
Who are we?
 A new group created with deregulation and with the
Internet age …
… which in just a few years has become a major player
- In triple play services for the residential market (Internet,
IP telephony, mobile telephony, broadband TV)
- In multiplay solutions for the business market (VoIP,
broadband Internet, mobile telephony)
 Leading competitor to the incumbent operator in all
markets (residential, business and wholesale) with:
- More than 3 million residential customers, including 1.3
million broadband customers *
- 118,000 corporate sites connected to the Neuf Cegetel
network *
- 200 carrier customers
* As at the end of March 2006
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An ambitious vision for our customers

Blurring the boundaries for users
 Usages are identical at home, at work, or on the move
 Terminals are converging (fixed line and mobile phones,
PC, television set)
 Technologies are complementary (ADSL, GSM, WiFi,
Wimax, etc.)
 Contents are available from any terminal (messaging,
email, Internet, television, music, video) in any location

Our aim is to leverage the full potential of this
convergence…

… and to make it easy for everyone to access a whole
new world of communications and content
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A new communications era
Stay in touch with friends and family
Planète Neuf: unlimited free telephony
Distance doesn’t matter anymore
Neuf Giga: a storage online service
Call from anywhere anytime
BeautifulPhone
Simplicity…
Simple access to Internet with Neuf Box
… and security
A security pack
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An own personal and interactive television
service (TV over ADSL)
A wide range of contents at
your fingertips (200 channels)
Wireless technology
Access to multimedia content (visioconferencing,
information & leisure services…)
A wide range of services
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Our strategy is driven by innovation
 Our decision to roll out an All-IP network more than 3
years ago
 Our massive investment (€600 million) in unbundling
and ADSL technology in order to be able to provide
direct access to our network
 The rollout of increasingly sophisticated decoders at
our customers’ premises:
- Neuf Box set-top boxes for residential customers
- multiplay boxes for business customers
 The development of easy-to-use web-based
applications managed by the core network (unified
messaging, online storage of data, videophone, security,
remote access, etc.)
 The launch of mobile services (MVNO agreement) in
2005 (Neuf Mobile) and the first GSM-WiFi hybrid phone
on the residential market (TWIN™)
Competitive advantages for offering quad play services
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Our advantages in a converging world...…
NEUF CEGETEL’S COMPETITIVE
ADVANTAGES
2
3
Content
providers
ISPs
Open network
End-to-end services
Internet
1
All-IP network for voice,
data and Internet
Mobile operators
Broadband Internet
Fixed and mobile voice services
emails Game
Storage
IP centrex
TV / video
Access to the end
customer
Security
…
4
Expertise in CPE
Fixed telephony
operators
Customer relationship
(Billing, customer service)
All the various players are
targetting the same
customers
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Neuf Cegetel’s innovative services
Constant innovation between 2004 and 2006,
preparing for the launch of quad play services
2004
First ISP to offer broadband Internet at €14.90 per month (Feb. 04)
• First ISP to launch full unbundling (May 04)
• First ISP to offer a hybrid DTT/DSL TV decoder (Sept. 04)
• First ISP to offer pay-as-you-go triple play - users only pay for the services they use (Nov. 2004)

2005
• First operator to provide a multiplay solution for businesses (Feb. and June 2004), voice, data,
mobile, 9office
• First ISP to launch real-time, live measurement of TV over ADSL with the service Neuf Hit View (Sept.
05)
• First operator to launch a full-scale pilot trial of a hybrid fixed/mobile GSM/WiFi telephone, the
BeautifulPhone (Nov. 05)
2006
• First ISP to offer a secure online 9 Gb data storage service, file sharing and backup facility, at affordable
prices for residential customers, Neuf Giga (Feb. 06)
• First ISP to offer a remote access service with unlimited calls to 31 countries, Neuf Talk (March 2006)
• First operator to launch a box-based IPBX and IP Centrex solution specifically designed for SMEs, 9pass
(Feb. 06)
• First operator to offer the whole range of quad play services under the single Neuf brand
name (Feb. 06)
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A new service introduced nearly every month
during 2005 ….
Neuf TV
interactive
and
personalised
services
DTTV
Free telephony over IP
on Neuf TV
Wengophone: the
software to make calls
anywhere in the world
February
Unlimited
international calls
Launch of 9office
mobile for business
customers
April
July
November
2005
January
March
on Neuf TV
June
September
and
on Neuf TV
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December
… and 2006 …
Wireless TV using
powerline technology
TWIN ™ : 1st GSM-WiFi hybrid phone
Neuf TV HD and VOD
Unlimited phone
calls with
february
February
april
2006
January
january
june
march
March
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Neuf TV: interactive and personalised TV

Neuf TV, a platform for digital entertainment

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Neuf TV, interactive television

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High Definition TV
Digital VCR
Media center
Portal for live information
Programme guide
Subscription to new services via the TV set
Live, real-time viewing figures
Communication tools (e.g. voice messaging,
videoconferencing)
Neuf TV, personalised televison


RSS feeds
Favourite channels

HD decoder

VOD in september 2006
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BeautifulPhone: Neuf Cegetel was the first operator in
Europe to trial a hybrid GSM/WiFi telephone
The advantages of
fixed telephony
Since December 2005, 400 users have been testing the BeautifulPhone
In the home, the
BeautifulPhone
connects to the WiFi
Neuf Box and
automatically connects
to the landline. It offers:
- unlimited phone calls
- true broadband
(between 8 and 11
Mbit/s)
- access to all
multimedia content
The advantages of
mobile telephony
• a truly personal device
• ability to stay in
contact and have
access to all your
content wherever you
are
Take advantage
of high-speed
WiFi broadband
on your mobile
make unlimited
calls while at
home through
the landline
Transfer
multimedia
content
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A revolutionary new solution for business
customers: the multiplay offer

Neuf Cegetel has led the way in multiplay services,
with its 9office service launched in 2005 and 9pass,
launched in 2006

The multiplay solution is
 A Neuf Cegetel innovation designed to simplify
corporate telecommunications
 A converged service offering Internet, fixed
telephony, mobile telephony, intranet, security and
multiple applications (remote access, messaging,
etc.)
 Based on a single, intelligent, secure box,
connected to the Neuf Cegetel All-IP network
 A scalable and simple service offering
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Strong foundations are the basis for the
growth of the group
An All-IP network – the leading alternative long-distance
network in France
The most extensive alternative broadband network, with
the most local loop connections
 45,000 kilometres of optical fibre cables
 1 000 local concentrators
 Coverage of nearly 70% of the population
 Interconnections at all digital local exchanges
 114 IP PoPs
A state-of-the-art, entirely ADSL2+ network
A network with the capacity to handle heavy traffic, open
to all operators and ISPs
 1.7 million unbundled lines* (60% french unbundled
lines)
 25% of the traffic in France (62 billion minutes)
The most extensive IP/MPLS infrastructure with 100
access points, which makes it possible to implement large
corporate networks
* As at the end of March 2006
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Financial performance which places the group in
a good position for 2006 and 2007
GROUP
Change from 2004
2005
Pro forma
Revenues
€ 1 826 M
€ 2 752 M
+ 55 %
Adjusted EBITDA (1)
€ 255 M
€ 312 M
+ 57 %
2005
Adjusted Net Earnings
(2)
2600**
Network
Leading alternative operator
Markets March 2006
Residential
Business
Wholesale
Residential
Business
Wholesale
€9M
Number of employees
Total Investment
• of which LLU
Broken down by Market
€ 2,5 billion
€ 600 million
Leading alternative operator
3 million customers, of which
1.3 million broadband customers
118,000 corporate sites connected
200 customers
OBJECTIVES FOR 2007
> 2,000,000 broadband residential
customers
> 200,000 corporate sites connected
> 20 % EBITDA/revenue margin
(1) Earnings from operations before amortisation, depreciation and other income, adjusted before provision for restructuring
* Pro forma figures following the integration of Cegetel ** Excluding Jet Multimedia
(2) Earnings before exceptional depreciation, retirement of assets and provision for restructuring
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A stable ownership structure
Two key shareholders SFR and Louis Dreyfus supporting the
development of the group
* Artemis, PAI, Goldman Sachs, Phoenix, BC Partners
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Powerful brands
Marque groupe
Wholesale Brand
Residential Brand
Business Brand
Two popular
brands with a
strong
awareness
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Quality is the number one priority for
the group
Neuf Cegetel’s approach to quality

Quality is absolutely vital to recruit new
customers and to reinforce their loyalty
whether they are residential or corporate
customers

Our objective is to guarantee the best
possible service for our customers:
 A high level of technical, commercial and
administrative support designed to meet
customers’ requirements and keep up with
their changing needs
 Availability and performance of both the
network and the services provided
 Simplicity and innovation in all the services
we provide
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Quality for business and carrier customers

A division specifically dedicated to business and carrier customers
 The Customer Service Division: 800 employees dedicated to all
technical and administrative aspects of the customer’s day-to-day
operations
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A close relationship, backed up by dedicated Extranet access
 Customers can access quality of service indicators and check the
status of traffic in real time, as well as track their orders and the
progress of fault repairs, etc.
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Innovation at the service of the customer
 Responsive sales teams always ready to give customers advice and
to anticipate their need for new, improved services
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Highly secure network monitoring setup, with two redundant NOC
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ISO 9001:2000 Certification for services provided to large companies
on a national scale since 2001.
Key figure
Over 90% of all customer incidents are resolved proactively
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Quality for residential customers
 Background: Increasing number of customers who find
themselves technologically challenged by an ever-growing
number of services perceived as highly complex
 Objective: To help customers every step of the way and to
anticipate any problems, taking preventive action where
necessary
 Dedicated unit for residential customers
 Dedicated customer relationship unit with 2,000 customer
service advisors
 Follow-up of service activation, management of customer
relationship, customer loyalty, billing
Key figures (as at end 2005)
80% of problems resolved with the first call
90% of calls answered in less than 50 seconds
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Residential customers: tools and indicators
Tools

Plug and play tools such as
the installation kit

Portal: hundreds of
factsheets, FAQs, advice, etc.,
available online

Technical support available
through the telephone
helpline or online

Technical support at
customers’ home
Indicators

Creation of a monthly quality
benchmark
Responsiveness of the customer
service team
Technical support
Delivery times
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Indicators measuring the
performance of the broadband
and VoIP service: Neuf and
Cegetel topped the IP Label/01
Net rankings for the last 3
months of 2005
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Dynamic growth in the wholesale, business
and residential markets
On the wholesale market
Supporting the development of other players on the market
Neuf Cegetel, the traditional partner of carriers and ISPs

Leading alternative operator on the wholesale
market

Leading alternative operator in the provision of
unbundled DSL access lines, transport and
collection of voice and data and termination of calls,
to other ISP and carriers

Major player in international trading
Highlights

200 national and international carriers,
including SFR, using the Neuf Cegetel
network

Revenues of €1,106 million*

40 billion minutes of voice traffic carried *

More than 1 million DSL access lines
rolled out for third-party operators
Le Numéro,
a Wholesale Division
customer
* Pro forma figures following the integration of Cegetel
Figures as at the end of 2005
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On the business market
Simplifying corporate telecommunications
Highlights

Leading alternative operator
 Revenues of €908 million*

Leading alternative operator on the IP VPN market
 118,000 corporate sites connected to the Neuf Cegetel
network (Q1 2006)
 More than 40,000 new sites connected in 2005

First to launch a multiplay solution for businesses with 2
dedicated offers 9pass and 9office

Largest sales force, after that of the incumbent operator,
20 agencies located throughout France

A strong footing in the public sector with 1,600 customers
(ministries, government departments and local authorities)

ISO 9001:2000 certification
* Pro forma figures following the integration of Cegetel
Figures as at the end of 2005, unless otherwise specified
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Principal ways in which services will be
improved
Enhancing Mobile Services
Provide remote employees with broadband
solutions (3G, WiFi, etc.)
Moving over to high-speed
broadband
Expand bandwidth capacity
at corporate sites
Businesses
Multiplay solutions
Make the most of a single voice/data network solution
simpler to operate and offering a high level of quality
Value added services:
Interactive voice services, push mail, IPBX, IP Centrex,
videoconferencing and data storage
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9pass: multiplay solution for small companies
(3 to 19 employees)
SIMPLER MANAGEMENT OF
SERVICES
INNOVATION
• A sophisticated “Box”,
developed in-house by Neuf
Cegetel (integrated IPBX, IP
Centrex, Proxy SIP, WiFi, CPL,
router switch, fixed IP, HD
Internet)
• A single invoice
• A single extranet through which
users can manage all their
services
• A single customer service
department for all services
(administrative and technical)
• Web-based services (unified
messaging and Outlook Webmail,
Softphone)
• Mobility and remote access
solutions
A solution designed in
partnership with INTEL and
MICROSOFT and combining
the best of the technologies
to offer IPBX functions, IP
telephony, Internet access
and mobile telephony.
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9office: a multiplay solution for SMEs
Voice over IP
Access line
+ Internet/intranet
Line rental
and unlimited calls
Mobile
+
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The first multiplay solution in France, launched in
March 2005

A modular service offering: voice service with
unlimited local and national calls, broadband
Internet and mobile telephony
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Nationwide coverage
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Simple implementation and real-time control and
management through a dedicated extranet
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Cost savings and scalability provided by the solution

A constantly developing service
 Broadband intranet and remote access solutions
(during 2006) to provide a comprehensive, scalable
solution comprising fixed/mobile telephony, data
and Internet services
Remote Access Service
IAD providing
IAD permettant
access
to all the
l’accès
à l’ensemble
services
on the
des
services
sur le
same
xDSL link
même lien xDSL
Value Added Services
IPBX
Security
Unified messaging
Videoconferencing
Fax-to-email
Web configuration
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9iPnet for rolling out large networks

9iPnet, the latest generation IP VPN service
 The fastest SDSL (2 Mbit/s) in France at competitive prices*
 Different levels of service and a wide range of features meeting all our
customers’ requirements
 Dedicated day-to-day support, operational tools and the benefit of Neuf
Cegetel’s expertise in rolling out the interconnection of multiple sites
Leading alternative operator on the IP VPN network

118,000 corporate sites connected directly to the Neuf
Cegetel network (Q1 2006)
 More than 40,000 new sites connected in 2005
* At the end of 2005
*subject to technical feasibility
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Business customers in all sectors of the economy
3 Suisses, AGF, AP-HP, Banque Populaire, BP, Casino, Compagnie des
Wagons-Lits, DaimlerChrysler, Dassault Systèmes, France Télévisions,
Generali, Canal+, Groupe Caisse d’Epargne, Heineken, La Poste,
Manpower, National Citer, Norauto, Oracle France, PSA Peugeot Citroën,
Renault, Sernam, SNCF, The Phone House, UGC, …
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On the residential market
Innovations designed to benefit as many people as possible
Highlights
 Revenues of € 738 million (1)
 More than 3 million customers (Q1 2006)
 including 1.3 million broadband customers
(Q1 2006)
 13% share of the broadband market
 One of the leading ISPs on the market
 157,000 new broadband customers (Q1
2006)
Figures at the end of 2005 unless otherwise specified
(1) Pro forma figures following the integration of Cegetel
(2) Source: ARCEP, broadband Observatory 31/12/05 and Neuf
Cegetel
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Success of à la carte services...
Broadband up to 20 Mbit/s = € 14.90 per month
Unlimited local and national calls: €9 per month
Telephone line rental (full unbundling): €6 per month
Number portability
Neuf Talk
Unlimited international calls (31 countries)
Neuf TV and associated services: €6 per month
Additional, simple and useful services
Neuf Giga for storing and sharing data
Security package to surf the Internet
Planète Neuf for unlimited free calls between Neuf subscribers
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April 2006: launch of Neuf Mobile, a mobile service
with the benefit of inclusive unlimited calls

Neuf Mobile is a MVNO in partnership with SFR

9 price plans (calls + SMS) starting at €21.90 per
month for 1½ hours talk time

As an additional benefit, once they have used up
their inclusive talk time, customers can choose
between the options of either continued free
unlimited calls to other Neuf Mobile customers or
continued free unlimited text messages to all
operators

Free and unlimited calls between Neuf mobiles and
the Neuf fixed line

The slimmest mobile phone on the market
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The TWIN™: the first GSM-WiFi hybrid telephone on the
residential market
 Just one handset for all fixed
and mobile calls
No need to change your habits
 A mobile phone number

Developed on the basis of the results of the
BeautifulPhone trial

Affordable fixed-mobile convergence for
consumers
 The phone is provided at a cost of €199 and can
use any mobile operator network
 The phone is provided at a cost of €1 for Neuf
customers

Demonstrable savings: between 10 and 30% on
mobile expenditure
 Calls priced the same as fixed line calls:
unlimited telephone calls for customers with a
fully unbundled service connected via the Neuf
Box or via a Neuf WiFi community access point
(in the main railway stations, 127 Adael Wireless
hotspots and 50,000 FON hotspots)
 Outside WiFi coverage, normal GSM
tariffs will apply
41
Thank you
42
Appendices
Executive Committee of the Neuf Cegetel group
Chairman
and Chief Executive Officer
Company Secretary
Jacques Veyrat
Michel Paulin
Philippe de Cuverville
Residential Division
Xavier Gandillot
Network & Marketing Division
Finance & Administration
Division
François Paulus
Fabrice Dumonteil
SME Division
Jérémie Manigne
Information Systems Division
Customer Service Division
Eric Ioos
Nicolas Maguin
Business Division
Philippe Pélisson-Corlieu
Wholesale Division
Paul Zenou
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The principal service offerings for business
customers
multiplay Solution
The first multiplay solution for businesses which combines the telephone line rental, fixed and mobile telephony
and broadband Internet access. It is a comprehensive, modular and scalable solution, serving all your
company’s sites and supported by the Neuf Cegetel All-IP network.
IP-VPN Solution
This solution is used to provide simple and secure broadband interconnections for your users in France and
abroad. Support and advice and a modular solution with a range of protection, hosting and mobility options
Broadband Internet Services
Call Centre Solutions
Offering every company the broadband
Internet service which best suits its needs
A complete range of freephone, shared cost and shared
revenue numbers, which are supported by advanced call
management features.
Point to point connections
Telephony Services
A national and international bandwidth
service offering, based on the provision of
multiprotocol leased lines.
For all your local, national and international
outgoing calls, as well as calls to mobiles.
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