eofttc&launch& - talktalk business · 2013. 11. 27. · the&network& llu exchange...
TRANSCRIPT
EoFTTC LAUNCH ALEX TEMPEST DIRECTOR OF PARTNERS
21 NOVEMBER 2013
EoFTTC LAUNCH LANCE SPENCER DIRECTOR OF CONNECTIVITY
21 NOVEMBER 2013
AGENDA
+ City reacDon to TalkTalk H1 results
+ The rise and rise of data connecDvity
+ The rise and rise of Ethernet
+ 3Mb capped product variants
+ Ethernet over FTTC (EoFTTC)
INTERIM RESULTS
SUMMARY
+ H1 EBITDA of £76m in line with our planned £86m investment in growth + Strong and acceleraDng TV penetraDon with 167,000 net adds in Q2 + PosiDve net adds and ARPU growth drive 1.9% revenue growth in Q2
+ Raising FY revenue growth guidance to at least 3% + Raising FY14-‐FY17 revenue target to 4% CAGR + Clear roadmap to delivery of 25% EBITDA margin by FY17
THE UK’S FASTEST GROWING TV SERVICE + AcceleraDng net adds through H1 underpin confidence in opportunity to scale the base + c25% new to TalkTalk + Launch of EssenDals TV will drive further acceleraDon in take-‐up in H2 + Nearly 1m customers by end of FY14
80k
150k
160k 167k
Q3'13 Q4'13 Q1'14 Q2'14
TV Net Adds TV Base
SUSTAINED GROWTH IN CUSTOMER BASE AND NEW PRODUCTS
Broadband
4.047m 4.043m 4.053m 4.063m 4.071m 4.076m
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14
TV
85k
117k
152k 175k
202k
236k
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14
Mobile
SUSTAINED GROWTH IN CUSTOMER BASE AND NEW PRODUCTS
FTTC Ethernet & EFM
THE NETWORK LLU exchange
LLU exchange
Nodes
20Gbps rings 800Gbps rings 1.6Tbps rings
3,000 + exchanges unbundled for SMPF and MPF 3,000 + local exchanges for EFM 3,000 + on net Exchanges enabled for Local Access Fibre Ethernet (EAD) Access to over 5000 exchanges for Fibre Ethernet (EAD) 1,400+ SFBB enabled exchanges, 45,000 cabinets, conDnuing to roll out in line with Openreach deployments
The largest Next GeneraDon Access Network in the UK market
OUR NETWORK IS OUR ADVANTAGE THE LARGEST UK NGN…
+ More reach than any other network
+ Unique in having both SMPF (broadband-‐only) & MPF (line & broadband) in every PoP
+ Largest Next GeneraDon core network ensures speed and reliability
LLU Unbundled POPs
OUR NETWORK IS OUR ADVANTAGE …WITH THE MOST PRODUCTS
+ ADSL2+, Annex M, Fibre broadband Ethernet, EFM, IPVPN + SIP, TDM, inbound & voice apps
Ethernet/EFM POPs
COMPETITIVE LANDSCAPE -‐ ACCESS Carrier Range Speeds SLA Reach Price points
BT
Virgin
TTB
+ Virgin does not have an extensive range, but, where on-‐net, it is compeDDve. It’s high speed range is simplisDc + BT’s range is very broad, which can confuse prospects, on the other hand it can meet preiy much all types of requirements + TalkTalk has the largest EoCu and EFM footprint, and can leverage this to differenDate. New ‘Trust’ and ‘Support’ promises essenDal to fulfill
TECHNOLOGY ADOPTION IS ACCELERATING Techno
logy Ado
pDon
Ra
te of C
hange
2000 2010 1900 1990
13
MulDplying the diversity of technologies we use to communicate, at home, on the move and in the office (BYOD)
WHAT DO PEOPLE MEAN BY “CLOUD’?
RICH-‐MEDIA APPS
PERFECT STORM FOR DATA CONNECTIVITY
MOBILE DEVICES
VIRTUALISATION
NETWORK STORAGE
▼CAPEX ▲PAYG
NEED FOR LEANER STRUCTURES
NEXT GEN CONNECTIVITY
ALWAYS ONLINE
BANDWIDTH GROWTH SEP 2012 – SEP 2013
400
200
800
600
1000 Gbps
Total network traffic on TalkTalk Next GeneraDon Network
AVERAGE TRAFFIC
SEP 2012 385GB SEP 2013 850GB 120% INCREASE
PEAK TRAFFIC
SEP 2012 415GB SEP 2013 950GB 130% INCREASE
CS4
DF
DF
DF
CS3
VOICE, DATA, TV & BUSINESS SERVICES ACROSS THE SAME CONVERGED MULTI SERVICE PLATFORM.
RAPID DEMANDS ON BANDWIDTH CONTINUES + Upgrading the Metro Layer to Dark Fibre (future proofing our collector rings) + Revised topology to establish full resilience across all transport layers + AddiDonal Dark Fibre & NGN capacity from mulDple providers + Super Core re-‐design (specifically in London)
300 AddiDonal Exchanges
Unbundled by End of March
2014
350 AddiDonal Cablelinks (NGA)
by End of March 2014
300 AddiDonal Backhaul Circuits (Growth)
INCREASING NETWORK REACH
NETWORK CAPACITY UPGRADES
TALKTALK BUSINESS
BROADBAND
DATA CONNECTIVITY PRODUCT RANGE
Asymmetric, asynchronous, Contended, business SLAs,
Symmetric, synchronous, non-‐contended, business-‐grade SLAs, high
speeds
MPF & SMPF Annex M 100 MB Gig
TALKTALK BUSINESS
ETHERNET
EFM
ETHERNET SERVICES UPDATE
ETHERNET PRICE PROMOTION
+ From 1st November increase 100Mb based promoDonal discount from 20% to 25% + From 1st November increase 100-‐300/1Gb based promoDonal discount from 10% to 15% + From 1st November increase 500Mb and 1Gb Zone A.B based promoDonal discount from 20% to 25% + PromoDons to run unDl April 30th 2014
2014 SERVICE IMPROVEMENTS CURRENT FOCUS DEVELOPMENTS FOR 2014
+ Co-‐located teams providing end to end delivery management
+ Enhanced Reseller ReporDng via Service Management for EAD order journey
+ EAD Jeopardy Team/Job Controllers for managing BTOR
+ Delivery of SAP (Strategic Assurance Portal)
+ New high volume/high value order management system:
+ Improved automaDon with Openreach systems for high value orders + Improved integraDon with assurance process and new workflow engine
+ Improved jeopardy engine
+ ReDrement of legacy systems and processes
+ Improved outage management reporDng
3MB CAPPED
WHY HAVE A 3MB FIXED PRODUCT?
Very high interest in a fixed rate 3Mb product variant both of EFM product and EoFTTC, to compete with the currently available low bandwidth BT Wholesale EFM and FTTC products.
MARKET RESEARCH SHOWS:
WHAT ARE THE BENEFITS?
Significantly lower price than standard variants.
WHY HAVE A 3MB FIXED PRODUCT? WHO IS THE TARGET MARKET?
+ VoIP/SIP users who want to deliver voice only to deliver 10-‐30 voice lines on a single connecDon
+ Leased Line migraDons from legacy 2Mb and below products
+ Retail for Chip and Pin
+ Back up resilience circuits
+ Local councils where they specify fixed low bandwidth symmetrical
TARGET MARKETS FOR EFM AND EoFTTC PRIMARY MARKETS
+ SDSL is end-‐of-‐life & being reDred EFM and EoFTTC are a good up-‐sell
+ 2-‐10M leased lines are a legacy service ouen on old (& high) tariffs
+ ISDN30 Replacement
0
50
100
150
200
250
300
Leased Line SDSL ISDN30
Thou
sand
s
0 5
10 15 20 25 30 35 40 45 50
Sub 10M ethernet
10M ethernet
Thou
sand
s
0
1
2
3
ADSL
Mill
ions
PRIMARY MARKETS
+ Upsell to broadband users who require high up-‐stream speed/high availability + Cost-‐effecDve alternaDve to 2-‐10M fibre based Ethernet services + All of the above for IPVPN connecDvity & simple internet access
TARGET MARKETS FOR EFM AND EoFTTC
EFM 3MB FIXED PRICING
+ Install for 1 year contract as current standard EFM product + Install for 3 year contract as current standard EFM product + AmorDsed install as current standard EFM product + Annual rental 40% less than current standard EFM product + All Band discounts sDll apply + Product available now
EFM 3MB FIXED KEY RESTRICTIONS
+ 3Mb variant can only be purchased where the guaranteed minimum speed is 5Mb or be\er + Upgrade charge from 3Mb variant to full product will incur a full install charge £1,200 for 2 Pair, £1,650 for 4 Pair + There will be no downgrade capability from standard product to the 3Mb variant
EoFTTC
TALKTALK BUSINESS
BROADBAND
DATA CONNECTIVITY PRODUCT RANGE
Asymmetric, asynchronous, Contended, business SLAs,
Symmetric, synchronous, non-‐contended, business-‐grade SLAs, high
speeds
MPF & SMPF Annex M
FTTC fills a gap in our connecDvity set – high speed symmetrical with access to non symmetrical bandwidth
100 MB Gig
TALKTALK BUSINESS
ETHERNET
EFM EoFTTC
EoFTTC OVERVIEW
Data only service (no voice on underlying bearer) Delivered either to a Partners interconnect or as part of a MPLS IPVPN soluDon
THE NETWORK LLU exchange
LLU exchange
Nodes
20Gbps rings 800Gbps rings 1.6Tbps rings
1,400 + exchanges enabled for EoFTTC 45,000 + cabinets enabled for EoFTTC Plans to be at BTOR 1,600 exchanges 11 million homes passed, almost 50% coverage All 3,000 TalkTalk exchanges will support EoFTTC Strategically will follow Openreach rollout
The largest Next GeneraDon Access Network in the UK market
+ Install for 1 year contract £550 + Install for 3 year contract £350 + AmorDsed install £70 p.m. 1 year / £15 p.m. 3 year + Annual rental layer 2 wholesale Refer to Partner Manager + Annual rental layer 3 wholesale Refer to Partner Manager + Annual rental MPLS Managed Refer to Partner Manager + All band discounts apply + Product available December 2nd 2013
EoFTTC PRICING
EoFTTC 3MB FIXED PRICING
+ Install for 1 year contract as current standard EoFTTC product + Install for 3 year contract as current standard EoFTTC product + AmorDsed install as current standard EoFTTC product + Annual rental 40% less than current standard EoFTTC product + All Band discounts sDll apply + Product available 2nd December 2013
EoFTTC 3MB FIXED KEY RESTRICTIONS
+ 3Mb variant can only be purchased where the guaranteed minimum speed is 5Mb or be\er + Upgrade charge from 3Mb variant to full product will incur a full install charge of £550 + There will be no downgrade capability from standard product to the 3Mb variant
KEY FEATURES AND BENEFITS
+ 7 hour fix for Priority 1 faults and 24/7 support + Up to 20Mbps symmetrical product -‐ 75% of esDmated upstream guaranteed + Uncontended on the guaranteed upstream, and equal amount of downstream + Bandwidth speeds sold are guaranteed even during peak Dmes + Ability to run downstream to up to 80Mpbs + Not available if esDmated speed is less than 2Mbps + Marketed as data only product -‐ the voice is barred + Unlimited usage of data, included in tariff + 30 working day delivery, iniDally
EoFTTC
FEATURES AND BENEFITS
+ Wholesale Layer 2 (E-‐Access) product to be delivered for partners via an exisDng Ethernet Interconnect + MulDple VLAN opDon available + Each VLAN must be associated to a bandwidth no smaller than 1Mb + Shadow VLAN opDon available for resilience
E-‐ACCESS
+ Added into the MPLS IPVPN porvolio
MPLS IPVPN Over EoFTTC
TALKTALK BUSINESS COMMITTED TO BRINGING
VALUE AND INNOVATION TO THE CHANNEL