Transcript The mobile internet revolution!

Lithuanian leadership in mobile
telecommunications
Lithuania - truly mobile country
Penetration of fixed and mobile telephony in Lithuania
50%
80%
40%
30%
62%
100%
58%
70%
60%
55%
120%
15%
41%
140%
90%
80%
7%
153.2%
160%
100%
4%
Total outgoing minutes
180%
Mobile
Fixed
20%
10%
60%
40%
23.5%
0%
20%
1999
2000
2001
2002
2003
2004
2005
0%
74%
71%
66%
42%
60%
50%
40%
Mobile
30%
20%
Fixed
10%
0%
1999
74% of telecommunication revenues are from
mobile
55%
Explosive growth of mobile penetration,
in Q4 2005:
– 153,2 % mobile penetration
– 23,5 % fixed penetration
80%
70%
33%
Source: Lithuanian NRA
Telecomunications market revenue
100%
90%
33%
H1
H2
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2003 2003 2004 2004 2004 2004 2005 2005 2005 2005
Fixed line penetration
Mobile penetration total (SIM cards)
2000
2001
2002
2003
2004
2005
Source: Lithuanian NRA
A brief history of Omnitel
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In 1991, after Lithuania regained independence, Dr.
J. Kazickas founded Omnitel, the 1st private
telecommunications company in Eastern Europe
– The idea behind independent communications with
the rest of the world
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In 1996 Motorola joined with 45% of shares
In 1998 Amber Mobile (Telia & Sonera) became
majority (55%) shareholder
In September 2004, TeliaSonera acquired 100%
control
Bringing innovations to the country
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First in Lithuanian to introduce GSM (1995)
First commercial Internet provider (1995)
One of the first in Europe to provide integrated services portal to GSM
service users (1999)
First in Lithuania to introduce WAP protocol for data transfer and the first
WAP portal (1999)
One of the first in the Europe to introduce GPRS (2001)
The first in the world to launch and operate Motorola’s latest base stations
Horizon II (2003)
The 4th company in Europe and the 7th in the world to have implemented on
its network the latest GPRS technology CS3/CS4 (2003). GPRS data
transfer rates are increased up to 70%
UMTS trial – live video call to Brussels (2004)
HSDPA trial (2005)
First UMTS operator in Lithuania (2006)
Omnitel today
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Top-1 telecommunications company in the Baltics
Top-3 tax payer to the budget
Top-5 most profitable Lithuanian company
Top-10 largest Lithuanian company
Top2 best reputation company in the country
TeliaSonera – one of the largest investors in Lithuania
Mobile market shares
Bitė
Omnitel
Outgoing minutes
Tele2
45.8%
GSM revenue
27.8%
53.5%
Active subscribers
10%
Source: NRA, 2005 4Q
20%
24.3%
25.1%
37.7%
0%
Service providers
27.8%
30%
40%
50%
19.4%
33.8%
60%
70%
80%
90%
100%
Customers
• Half of Lithuanian population uses Omnitel services
• 1,000,000th customer in 2003
2,200,000
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
1,888,000
1,338,000
1,053,000
850,000
579,000
214,000
1999
334,000
2000
2001
2002
2003
2004
2005
Business market leadership
Lithuanian
companies
Omnitel
customers
TOP 10
80%
TOP 20
90%
TOP 50
78%
TOP 100
83%
All companies
70%
Source: List of the largest (9 mos. 2004) Lithuanian
companies by Verslo žinios, market surveys
Highly loyal customers
Worldwide consumer loyalty to mobile industry
Conversion ModelTM index averages in different countries
Kanada
UK
40
Sweden
Omnitel
44
85
Lithuania
42
USA
Germany
65
43
Average
loyalty
51
77
Australia
St. Africa
64
Source: TNS Gallup
75
What comes next?
The mobile internet revolution!
to create the future via mobile internet
Mobile Internet gains momentum
Mobile Internet – the fastest growing
Laptop PC sales exceeds the sales
of Desktops
Total Internet subscribers, th. eop
1,000
Other
800
Leased lines
LAN
600
Optic lines
Cable TV
400
Other wireless
Mobile Internet
200
xDSL
Fixed dail-up
0
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2003
H1
H2
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2003 2003 2004 2004 2004 2004 2005 2005 2005 2005
Source: Lithuanian NRA
2004
Laptops
Source: Infobalt
According NRA 4Q report more than 76% of users are accessing Internet
via mobile channels in Lithuania
2005i
Desktops
2006p
Attractive offers boosting Mobile Internet take up
Subsidized Omni Connect card – 1 Lt;
Monthly fee for unlimited Internet use: 100Lt (28 Euro)
Subsidized HP Laptop(!) + Omni Connect card – 1Lt;
Monthly fee for unlimited Internet use – 149Lt (43 Euro)
Mobile Internet connection is
becoming essential to the laptop as a
SIM card is for a mobile phone
500000
450000
400000
350000
300000
250000
200000
150000
100000
50000
0
Total Omnitel mobile internet subscribers, th.
Laptop subsidies started in
September,2005
Q3
2004
Q4
2004
Q1
2005
Q2
2005
Q3
2005
Q4
2005
Source: Omnitel
451 000 Omnitel Mobile Internet users at the end of 2005 ( 200% annual growth )
Just in one quarter after starting to sell Omni Connect powered HP Laptops, Omnitel
became No 2 HP distributor in Baltic States
Mobile internet speed development
Metai:
2006
2007
2008
2009
2012
Super 3G
HSDPA
HSDPA
HSDPA
WCDMA
Speed Mbit/s
0.384
Etapas 3
Etapas 2
Etapas 1
3.6
7.4
14
100
Šaltinis: Informa
IP Migration trend
Pokalbių minutės skirtinguose tinkluose
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Fixed voice
Mobile voice
Fixed voiceover IP
Mobile voice over IP
Source: ADL Global Broadband Update 2005
From vertically integrated networks
towards all IP services ecosystem
Tomorrow
Today
Horizontal networks
(a lot of services)
Vertically integrated networks
(one service)
Services
Content
Content
Services
Environment
WLAN
Fixed Data Net
Fixed Telephony
Mobile
Services
IP Multi-Services
network
Access
Access
Access
Transport, Switching & Access Networks
Share of Korean mobile phones
sold in Omnitel network
2002 - 2.2%
2003 - 11.4%
2004 - 14.7%
2005 - 19.4%
2006 - 23.4% ( january - april )
Can Lithuania repeat the Ireland story?
?
Thank you!