,An Integrated Approach to Billing, Call Center and Customer Relationship Management A Discussion Document August 31, 2000,1,Agenda,Context Key issues for China Mobile The Communications Enterprise Solution Architecture (CESA) Customer Relationship Management (CRM) About PricewaterhouseCoopers,2,Context,China Mobile facing growing competition from both Unicom and China Telecom CMCCs billing and IT infrastructure are inadequate to sustain competitive advantage Large scale and rapid IT infrastructure development is required CMCC has requested PricewaterhouseCoopers assistance in building a worldclass IT infrastructure We are the undisputed leaders in this area worldwide, and have unique delivery capabilities in China,3,Key Issues for China Mobile,Key Trends in Mobile Telecoms,4,Average Revenue Per Subscriber is declining ., keeping EBITDA margins flat,The value of mobile voice services has peaked. Much of the value growth in the US is now substitutive,Mobile voice is maturing,ARPU,Penetration,* Sonera is re-branded Telecom Finland Mobile,5,It is thought that data services will ultimately fill this “value gap”, with mobile devices becoming the ECommerce “tool of choice” for most consumers,In the US, mobile valuations generally exceed cash generation by a significant margin,Voice Services,Other,70%,100%,% Mobile Value,FMC,Substitution,Data/Broadband,6,Investors believe that the introduction of mobile data technologies will create significant new opportunities.,Asia - Japan, Hong Kong, Taiwan, and Singapore - portend to be leaders in the introduction of mobile data applications,Data 9.6 - 14.5 kbps,SMS,HSCSD,GPRS 115.2 kbps,EDGE,WCDMA 384 kbps - 2 Mbps,Data 9.6,SMS,CDPD 19.2 kbps,CDPD, GPRS 57.6 - 115.2 kbps,136+ 115.2 - 384 kbps,WCDMA 384 kbps - 3 Mbps,Information Broadcast: Weather; banking; news; stocks,File transfer; download,Info access; Intranet access; real time apps;, interactive sessions,1998,1999 - 2000,2000-01,2001-02,Wireless multimedia, voice, video, multimedia applications, M-commerce,2002+,Data 28.8 kbps,SMS,WCDMA 384 kbps - 3 Mbps,7,Projections of WAP, Cellular Subs, and Internet Subs Growth,-,200,000,000,400,000,000,600,000,000,800,000,000,1,000,000,000,1,200,000,000,1,400,000,000,1996,1997,1998,1999,2000,2001,2002,2003,2004,2005,Projected Cellular Subscribers,Projected PCs Connected to theInternet(Dataquest 10/98),Projected WAP Handsets,Many believe that Internet access will move to the “handset”,8,Mobile data will enable myriad new service opportunities,Consumer,Business,Other,Information Services Entertainment Games Banking E-Commerce E-mail Video telephony Personal navigation Internet access,Database search Corporate databases Email File transfer Intranet access Internet access Vehicle navigation Video telephony,Specialist products: Telemetry Machine monitoring Navigation Corporate Intranet software,Examples,Future Mobile Value Chain,10, transport and access will become “low value” commodities .,In the consumer market, as the network becomes unbundled, value creation will migrate to either content or solutions,Consumers,CONTENT,SERVICE CREATION,INTEGRATION,MOBILE TERMINALS,TRANSPORT,Value Added Service Provider,ACCESS,Transport,Solutions,Content,Operator,Media,Portals, owning a network will not be essential for participation in the mobile consumer market .,11,In the corporate market, mobile operators may lose direct customer access,Solution providers are poised to capture a majority of the value .,IT,Fixed Telecoms,Mobile Telecoms,Corporate,Today,Corporate,Mobile Telecoms,Corporate,IT,Solution Providers,Fixed Telecoms,The Future,12,MNC Large National SME Personal Household,Content,Transport,Solutions,Most existing mobile operators are not well-positioned except in the traditional personal segment,Poorly Positioned,Moderately Positioned,Well-Positioned,Customer Segments,13,Personal,Corporate,GSM (TDMA/CDMA),GSM GPRS DECT Other,UMTS EDGE GMPCS,Country X Country Y,This may lead to a “mobile network break-up”,This “break up” is consistent with what has happened in fixed line services .,14,Key Near-Term Success Factors,Key Issues for China Mobile,15,Identify, develop, and retain target customers through on-going segmentation and analysis Secure existing revenues through revenue integrity measures Become customer centric, and begin to develop a Customer Management System Switch fixed to variable costs through outsourcing Optimise the business portfolio to capture and invest in new revenues streams,In PwCs experience, 5 strategic imperatives are common to developing mobile operators,16,1. Segment the Customer Base,Understanding the true profitability of customers is essential to get full value from the current customer base,Typical Customer Profitability Distribution,Segmentation variables: customer type needs/usage patterns service complexity location costs vs revenues,Unprofitable,Marginally Profitable,Highly Profitable,Promotions, product development, marketing, pricing, sales and support should