Transcript DNardelli_Apresentação_Workshopv2 - Docbox

Brasil Telecom Corporate
Overview
November/2006
0
Summary
1
Company outlook
2
Convergence
3
What is converging with what
4
Convergence and Brasil Telecom
5
Brasil Telecom’s steps towards convergence
6
Final Comments
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1
Company outlook - Our Footprint
 Largest Telecommunications Company in
Region II
 Gross Revenue US$ 6,4 billions
 9.4 million lines in service (LIS).
 2.8 million mobile accesses (launched
out/2004).
 1.2 million broadband subscribers.
 3.5 million active Internet clients.
 Metropolitan access networks in São
Paulo, Rio de Janeiro and Belo Horizonte.
 Offers integrated services via 2 ringsystem of fiber-optic subsea cables with
22,000 km connecting Brazil, United States,
Venezuela and Bermudas.
Region II
24% of the Brazilian population
44 million inhabitants and
27% of the country’s GDP (R$420 billion)
1
All information is referent to June 2006
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1
Company outlook - Integrated Portfolio
Brasil Telecom
Mobile
Service
Cyber
Data
Center
Portal
Internet
Broadband
Access
Internet
Dial-up
Access
Broadband
Data
Finance, HR, Marketing, Operations
Technology (Network/IT)
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DLD / ILD
Local
1
Company outlook - Mobile Telephony
 3,051
thousand mobile accesses in 3Q06
 11.4%
of market share and 31% of pos-paid accesses.
Accesses
(thousand)
31%
33%
33%
31%
27%
3,051
2,772
2,213
1,676
1,520
2,460
2,104
1,872
1,640
1.220
457
693
821
900
947
3Q05
4Q05
1Q06
2Q06
3Q06
Pos-paid
Pre-paid
Pos-paid %
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1
Company outlook - Broadband

Data Communication Services accounts for 16% of the total revenues.

ADSL revenue accounts for 43.9% of total data communications revenues.

14.5% penetration of LIS.
ADSL Accesses
121.7
70.2
70.8
97.6
1.014
CAGR (01-05): 133.7%
(thousand)
536
+40.4% x 3Q05
892
1,014
1,084
1,155
1,252
34
Net Additions
3Q05 4Q05 1Q06 2Q06 3Q06
214
Gross Revenue
282
141
220
245
270
2001
2002
2003
2004
679
CAGR (01-05): 168.8%
180
2005
388
(R$ million)
217
13
+50.2% x 3Q05
3Q05
4Q05
1Q06
2Q06
3Q06
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2001
71
2002
2003
2004
2005
1
Company outlook - EBITDA (R$ million)

Reduction of Operating costs and expenses.

Affected by increase in revenue in the data and mobile segments.
Year (accumulated)
Quarterly
32.1%
33.2%
34.5%
32.9%
33.7%
31.8%
28.9%
744.6
827.9
813.6
907.9
3Q05
3Q05
(Adjusted)
2Q06
3Q06
2,397
9M05
EBITDA Margin
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2,480
2,547
9M05 (Adjusted)
9M06
1
Company outlook - Strategic Key Messages
1. Defend fixed-line segment: >70%
of revenue;
2. Expand mobile operations:
4. Full convergence: Opex
adequate scale vs. profitability;
reduction, Capex reduction,
3. Exploit growth opportunities in
churn reduction and ARPU
Data and Internet: increase in
increase;
revenues and profits;
5. Operational Efficiency;
6. Corporate Governance culture: transparency, ethics and shareholders’
value creation.
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Convergence
Customer Benefit / Value
2
• Can be hard to increase the
added value beyond initial
benefit
The Bundles
Level of integration
Source: Ovum
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2
Convergence
Customer Benefit / Value
• Reduce costs, increases
coverage and therefore usage
Network
The Bundles
Level of integration
Source: Ovum
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2
Convergence
Customer Benefit / Value
• New applications delivered in
new ways to new devices
Services
Network
The Bundles
Level of integration
Source: Ovum
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Convergence
Customer Benefit / Value
2
• Simplifies service delivery for
both Service Provider and
Customer
Devices
Services
Network
The Bundles
Level of integration
Source: Ovum
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2
Convergence
Customer Benefit / Value
The maximum level of convergence perceived by the customer
occurs when an unique access device can be used for all services
and applications available (fixed, mobile, internet, TV, etc).
Devices
Services
Network
The Bundles
Level of integration
Source: Ovum
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3
What is converging with what
Convergence is complex and is happening in the following
levels:
• Network and Information Technology (IT)
• Industry sector
• Services
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3
What is converging with what
Network technology & IT
Network convergence happens when operators move to an All-IP-Next
Generation Network (NGN) to support all telecom traffic efficiently
SDH
Source: Ovum
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3
What is converging with what
Network technology & IT
As operators move to a multipurpose NGN’s, the IT systems that
support each service and overlay network are integrated into one
OSS/BSS system
SDH
Source: Ovum
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3
What is converging with what
Industry sector
The former distinct worlds of telecommunications and IT are already
merging. We also see that the distinctions between fixed & mobile
operators, carriers & service providers and media & telecom are blurring
• Fixed operators: some are already offering fixed-mobile convergent services,
entering the markets previously served by mobile operators;
• Mobile operators: announced plans to offer content / TV services. Some companies
are now offering football video clips to mobile handsets;
• Media providers: have purchased a number of companies designed to create new
distribution channels to theirs content. Some ISP plan to offer VoIP and TV services;
• IT and software companies: argue that will inevitably be part of the convergent
solutions market, particularly providing solutions for the home and office because of
the ubiquity of their product; (e.g.. IPTV middleware)
• Content owners: search an opportunity to identify new channels to market their
existing content. These companies see IPTV as a new channel to increase the film’s
life time by adding “on-demand” facility.
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3
What is converging with what
Industry sector
Industry sectors are converging with adjacent sectors around the
edge and in the middle. Hence the boundaries & differences between
each sector in the convergent space will be difficult to detect.
Source: Ovum
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3
What is converging with what
Services
Convergent services – User perspective
Voice
Mobility
Video
Data
• Integrated selling and customer relation services (One Stop Shop)
• One bill
• Reduction on the cost of services
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3
What is converging with what
Services on Broadband
Fixed voice, data and video services are converging, enabling bundles
Amusement
Entertainment
Communication
Video on demand
VoIP
Music on demand
Video Telephony
Rá dio via Internet
Mobility
Personal Computer
PC
Monitoring
VPN
Security, home
Firewall
surveillance and
Parental discretion
health monitoring
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3
What is converging with what
Fixed – Mobile Services
A dual mode mobile handset that acts as a normal GSM phone outside
the home, inside the home, routes calls through a device called
access point connected to conventional fixed line
GSM Network
Access
Dual-Mode
GSM-Bluetooth-CTP
Fixed Line
Fixed Line
GSM
Network
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Central
Switch
PSTN
4
Convergence and Brasil Telecom
The new scenery demands a infra-structure with specific
characteristics:
• Agnostic to devices
• Flexible
• Adaptable
• Integrated control
• Integrated management of the client
• Agile and flexible OSS/BSS
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4
Convergence and Brasil Telecom
• The possibility of service convergence (SoIP) and
network convergence stimulates the adoption of IMS
architecture.
• The future is the implementation of a totally integrated
network, all-IP, based on TISPAN architecture
(Telecoms & Internet converged Services & Protocols
for Advanced Networks).
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4
Convergence and Brasil Telecom - Network Evolution
PSTN
NGN
IMS/
TISPAN NGN
Data
GSM e
EDGE
Mobile NGN
(3GPP Rel4)
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HLR
SCP
AS
Internet
SS7
SMSC
AAA
AS
Internet
BRAS/AAA
AS
Internet
AS
Internet
SS7
BRAS/AAA
BRAS/AAA
GGSN
PLMN
Internet
PSTN
Internet
SSP
SGSN
MSC
LOCAL
DSLAM
CMTS
CM
GSM
BSC Access Router
GPRS
Access
Modem xDSL
BSC
Headend
Wi-Fi
AP
WiFi
Core nNetwork Applications
and Control and Services
Convergence – Architecture Today
4
xDSL
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POTS
CMTS
4
Convergence - NGN
Application Servers
Application
Control
Media
PSTN
IP
Transport
Access
Corporate
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Residential
Convergence - IMS
4
Messenger and
Media Stream
Billing
VAS e
IN
Business
Applications
 Mobilility
Presence
PushToTalk
 Convergence
Games
Etc.
 Confort
IP Multimedia Subsystem
Security
 Flexibility
 Otimization
QoS
 New Services
 Etc.
IP Network
MGCF
SBC
MGW/SGW
PGF
SGSN/GGSN
DSLAM
LOCAL
CM
Modem xDSL
BSC
BSC Access Router
Wi-Fi
AP
CMTS
Access Point
Bluetooth CTP
Seamless
Mobility
GSM
GPRS
WiFi
xDSL
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POTS
CMTS
5
Brasil Telecom’s steps towards convergence
• Starting a process aiming to change the company’s skill:
• moving from connectivity provider onto solution’s provider
• integrating the Information and Network Technology people
• Developing technical and market capabilities through a program focused
initially on network and market teams.
• Intensifying the company´s participation in international forums such as
ETSI and Fixed-Mobile Convergence Alliance (FMCA), which Brasil Telecom
is a member since 2003.
• Consolidating the operation of the three Brasil Telecom’s ISP, with more
than 3,5 million customers.
• Merging the fixed and mobile operations.
• Developed and implement convergent networks (NGN), services and
systems associated.
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6
Final Comments
• The network evolution shouldn’t
occur because of the need of keeping
up-to-date with technology.
• The evolution drive is the need of
offering news services or the
improvement
of
operational
efficiency.
• The speed of the implementation will
be defined mainly by the market.
• Don’t implement a new technology
just to offer the same “old” services.
• Regulatory and legal issues may
accelerate or restrain evolution.
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Thank You!
Dante Nardelli Junior
[email protected]
Tel: +55 61 3415-1249
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