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RBS Case Study Risk Management By : Mohsen Bahrami In The Name Of GOD January 2012 By Mohsen Bahrami 1

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RBS Case Study

Risk Management

By Mohsen Bahrami

In The Name Of GOD

January 2012

By Mohsen Bahrami 1

First Generation Mobile Phones were Analogue

Used for Voice calls only

Their signals were transmitted by the method of frequency

modulation

25 MHz frequency band for the signals

By Mohsen Bahrami 2

They introduced for the first time a mobile phone system

that used purely Digital technology

GSM Global System for Mobile communications

European standard and the first digital mobile system

It offers only circuit-switched traffic (ie voice calls

SMSetc) and data transfer at very low bitrates 96kbps

From Now On Data Transfer Via Mobile Phones begins

By Mohsen Bahrami 3

There are a wide diversity of 2G systems

1048708 IS-54 IS-136 North American TDMA PDC (Japan)

1048708 iDEN

1048708 DECT and PHS

1048708 IS-95 CDMA (cdmaOne)

1048708 GSM

GSM is dominant world standard

By Mohsen Bahrami 4

GPRS General Packet Radio Service

GPRS also referred to as 25G

It offered packet-switched traffic with new network

components integrated over the existence GSM core

network

This allowed data bitrates to increase to 171kbps It is also

considered as the first step towards 3G networks

By Mohsen Bahrami 5

EDGE Enhanced Data rates for GSM Evolution

Also Referred as 275G

It was made to cover the delay of delivery of 3GUMTS

network It supported data rates up to 384kbps

By Mohsen Bahrami 6

By Mohsen Bahrami 7

All About BroadBand and Internet Connectivity

By Mohsen Bahrami 8

GSM

96kbps (one timeslot)

GSM Data

Also called CSD

GSM

General Packet Radio Services

Data rates up to ~ 115 kbps

Max 8 timeslots used as any one time

Packet switched resources not tied up all the time

Contention based Efficient but variable delays

GSM GPRS core network re-used by WCDMA (3G)

GPRS

HSCSD

High Speed Circuit Switched Data

Dedicate up to 4 timeslots for data connection ~ 50 kbps

Good for real-time applications cw GPRS

Inefficient -gt ties up resources even when nothing sent

Not as popular as GPRS (many skipping HSCSD)

EDGE

Enhanced Data Rates for Global Evolution

Uses 8PSK modulation

3x improvement in data rate on short distances

Can fall back to GMSK for greater distances

Combine with GPRS (EGPRS) ~ 384 kbps

Can also be combined with HSCSD

WCDMA

3G

By Mohsen Bahrami 9

By Mohsen Bahrami 10

Support much higher data transmission rates

Increased capacity makes them suitable for high-speed

data applications as well as for the traditional voice calls

3G systems are designed to process data

3G mobile phones can offer subscribers a wide range of

data services such as mobile Internet access and

multimedia applications

By Mohsen Bahrami 11

By Mohsen Bahrami 12

The main 3G technologies include UMTS and cdma2000

UTMS Universal Mobile Telecommunication Service

Europe settling on the UMTS with wideband CDMA (WCDMA)

WCDMA systems make more efficient use of the available

spectrum

In Europe

2012 3G subscriptions will outnumber GSM

2014 More than 70 of mobile subscriptions will be 3G

Mobile broadband began with WCDMA and its first

evolution - HSPA

By Mohsen Bahrami 13

An amalgamation of two mobile telephony protocols High

Speed Downlink Packet Access (HSDPA) and High Speed

Uplink Packet Access (HSUPA) that extends and improves

the performance of existing WCDMA protocols

HSPA supports increased peak data rates of up to 14 Mbits

in the downlink and 576 Mbits in the uplink

Today 100 of WCDMA operators have deployed HSPA

424 commercial HSPA networks in 165 countries

Achieved in less than 6 years

(November 29 2011)

By Mohsen Bahrami 14

By Mohsen Bahrami 15

8175 million mobile broadband subs (WCDMA including

HSPA) - Q3 2011

3227 HSPA user devices launched in the market by 264

suppliers

Most operators include mobile broadband in their service

portfolio

Mobile broadband is driving traffic revenue and profit

growth in markets throughout the world

By Mohsen Bahrami 16

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

First Generation Mobile Phones were Analogue

Used for Voice calls only

Their signals were transmitted by the method of frequency

modulation

25 MHz frequency band for the signals

By Mohsen Bahrami 2

They introduced for the first time a mobile phone system

that used purely Digital technology

GSM Global System for Mobile communications

European standard and the first digital mobile system

It offers only circuit-switched traffic (ie voice calls

SMSetc) and data transfer at very low bitrates 96kbps

From Now On Data Transfer Via Mobile Phones begins

By Mohsen Bahrami 3

There are a wide diversity of 2G systems

1048708 IS-54 IS-136 North American TDMA PDC (Japan)

1048708 iDEN

1048708 DECT and PHS

1048708 IS-95 CDMA (cdmaOne)

1048708 GSM

GSM is dominant world standard

By Mohsen Bahrami 4

GPRS General Packet Radio Service

GPRS also referred to as 25G

It offered packet-switched traffic with new network

components integrated over the existence GSM core

network

This allowed data bitrates to increase to 171kbps It is also

considered as the first step towards 3G networks

By Mohsen Bahrami 5

EDGE Enhanced Data rates for GSM Evolution

Also Referred as 275G

It was made to cover the delay of delivery of 3GUMTS

network It supported data rates up to 384kbps

By Mohsen Bahrami 6

By Mohsen Bahrami 7

All About BroadBand and Internet Connectivity

By Mohsen Bahrami 8

GSM

96kbps (one timeslot)

GSM Data

Also called CSD

GSM

General Packet Radio Services

Data rates up to ~ 115 kbps

Max 8 timeslots used as any one time

Packet switched resources not tied up all the time

Contention based Efficient but variable delays

GSM GPRS core network re-used by WCDMA (3G)

GPRS

HSCSD

High Speed Circuit Switched Data

Dedicate up to 4 timeslots for data connection ~ 50 kbps

Good for real-time applications cw GPRS

Inefficient -gt ties up resources even when nothing sent

Not as popular as GPRS (many skipping HSCSD)

EDGE

Enhanced Data Rates for Global Evolution

Uses 8PSK modulation

3x improvement in data rate on short distances

Can fall back to GMSK for greater distances

Combine with GPRS (EGPRS) ~ 384 kbps

Can also be combined with HSCSD

WCDMA

3G

By Mohsen Bahrami 9

By Mohsen Bahrami 10

Support much higher data transmission rates

Increased capacity makes them suitable for high-speed

data applications as well as for the traditional voice calls

3G systems are designed to process data

3G mobile phones can offer subscribers a wide range of

data services such as mobile Internet access and

multimedia applications

By Mohsen Bahrami 11

By Mohsen Bahrami 12

The main 3G technologies include UMTS and cdma2000

UTMS Universal Mobile Telecommunication Service

Europe settling on the UMTS with wideband CDMA (WCDMA)

WCDMA systems make more efficient use of the available

spectrum

In Europe

2012 3G subscriptions will outnumber GSM

2014 More than 70 of mobile subscriptions will be 3G

Mobile broadband began with WCDMA and its first

evolution - HSPA

By Mohsen Bahrami 13

An amalgamation of two mobile telephony protocols High

Speed Downlink Packet Access (HSDPA) and High Speed

Uplink Packet Access (HSUPA) that extends and improves

the performance of existing WCDMA protocols

HSPA supports increased peak data rates of up to 14 Mbits

in the downlink and 576 Mbits in the uplink

Today 100 of WCDMA operators have deployed HSPA

424 commercial HSPA networks in 165 countries

Achieved in less than 6 years

(November 29 2011)

By Mohsen Bahrami 14

By Mohsen Bahrami 15

8175 million mobile broadband subs (WCDMA including

HSPA) - Q3 2011

3227 HSPA user devices launched in the market by 264

suppliers

Most operators include mobile broadband in their service

portfolio

Mobile broadband is driving traffic revenue and profit

growth in markets throughout the world

By Mohsen Bahrami 16

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

They introduced for the first time a mobile phone system

that used purely Digital technology

GSM Global System for Mobile communications

European standard and the first digital mobile system

It offers only circuit-switched traffic (ie voice calls

SMSetc) and data transfer at very low bitrates 96kbps

From Now On Data Transfer Via Mobile Phones begins

By Mohsen Bahrami 3

There are a wide diversity of 2G systems

1048708 IS-54 IS-136 North American TDMA PDC (Japan)

1048708 iDEN

1048708 DECT and PHS

1048708 IS-95 CDMA (cdmaOne)

1048708 GSM

GSM is dominant world standard

By Mohsen Bahrami 4

GPRS General Packet Radio Service

GPRS also referred to as 25G

It offered packet-switched traffic with new network

components integrated over the existence GSM core

network

This allowed data bitrates to increase to 171kbps It is also

considered as the first step towards 3G networks

By Mohsen Bahrami 5

EDGE Enhanced Data rates for GSM Evolution

Also Referred as 275G

It was made to cover the delay of delivery of 3GUMTS

network It supported data rates up to 384kbps

By Mohsen Bahrami 6

By Mohsen Bahrami 7

All About BroadBand and Internet Connectivity

By Mohsen Bahrami 8

GSM

96kbps (one timeslot)

GSM Data

Also called CSD

GSM

General Packet Radio Services

Data rates up to ~ 115 kbps

Max 8 timeslots used as any one time

Packet switched resources not tied up all the time

Contention based Efficient but variable delays

GSM GPRS core network re-used by WCDMA (3G)

GPRS

HSCSD

High Speed Circuit Switched Data

Dedicate up to 4 timeslots for data connection ~ 50 kbps

Good for real-time applications cw GPRS

Inefficient -gt ties up resources even when nothing sent

Not as popular as GPRS (many skipping HSCSD)

EDGE

Enhanced Data Rates for Global Evolution

Uses 8PSK modulation

3x improvement in data rate on short distances

Can fall back to GMSK for greater distances

Combine with GPRS (EGPRS) ~ 384 kbps

Can also be combined with HSCSD

WCDMA

3G

By Mohsen Bahrami 9

By Mohsen Bahrami 10

Support much higher data transmission rates

Increased capacity makes them suitable for high-speed

data applications as well as for the traditional voice calls

3G systems are designed to process data

3G mobile phones can offer subscribers a wide range of

data services such as mobile Internet access and

multimedia applications

By Mohsen Bahrami 11

By Mohsen Bahrami 12

The main 3G technologies include UMTS and cdma2000

UTMS Universal Mobile Telecommunication Service

Europe settling on the UMTS with wideband CDMA (WCDMA)

WCDMA systems make more efficient use of the available

spectrum

In Europe

2012 3G subscriptions will outnumber GSM

2014 More than 70 of mobile subscriptions will be 3G

Mobile broadband began with WCDMA and its first

evolution - HSPA

By Mohsen Bahrami 13

An amalgamation of two mobile telephony protocols High

Speed Downlink Packet Access (HSDPA) and High Speed

Uplink Packet Access (HSUPA) that extends and improves

the performance of existing WCDMA protocols

HSPA supports increased peak data rates of up to 14 Mbits

in the downlink and 576 Mbits in the uplink

Today 100 of WCDMA operators have deployed HSPA

424 commercial HSPA networks in 165 countries

Achieved in less than 6 years

(November 29 2011)

By Mohsen Bahrami 14

By Mohsen Bahrami 15

8175 million mobile broadband subs (WCDMA including

HSPA) - Q3 2011

3227 HSPA user devices launched in the market by 264

suppliers

Most operators include mobile broadband in their service

portfolio

Mobile broadband is driving traffic revenue and profit

growth in markets throughout the world

By Mohsen Bahrami 16

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

There are a wide diversity of 2G systems

1048708 IS-54 IS-136 North American TDMA PDC (Japan)

1048708 iDEN

1048708 DECT and PHS

1048708 IS-95 CDMA (cdmaOne)

1048708 GSM

GSM is dominant world standard

By Mohsen Bahrami 4

GPRS General Packet Radio Service

GPRS also referred to as 25G

It offered packet-switched traffic with new network

components integrated over the existence GSM core

network

This allowed data bitrates to increase to 171kbps It is also

considered as the first step towards 3G networks

By Mohsen Bahrami 5

EDGE Enhanced Data rates for GSM Evolution

Also Referred as 275G

It was made to cover the delay of delivery of 3GUMTS

network It supported data rates up to 384kbps

By Mohsen Bahrami 6

By Mohsen Bahrami 7

All About BroadBand and Internet Connectivity

By Mohsen Bahrami 8

GSM

96kbps (one timeslot)

GSM Data

Also called CSD

GSM

General Packet Radio Services

Data rates up to ~ 115 kbps

Max 8 timeslots used as any one time

Packet switched resources not tied up all the time

Contention based Efficient but variable delays

GSM GPRS core network re-used by WCDMA (3G)

GPRS

HSCSD

High Speed Circuit Switched Data

Dedicate up to 4 timeslots for data connection ~ 50 kbps

Good for real-time applications cw GPRS

Inefficient -gt ties up resources even when nothing sent

Not as popular as GPRS (many skipping HSCSD)

EDGE

Enhanced Data Rates for Global Evolution

Uses 8PSK modulation

3x improvement in data rate on short distances

Can fall back to GMSK for greater distances

Combine with GPRS (EGPRS) ~ 384 kbps

Can also be combined with HSCSD

WCDMA

3G

By Mohsen Bahrami 9

By Mohsen Bahrami 10

Support much higher data transmission rates

Increased capacity makes them suitable for high-speed

data applications as well as for the traditional voice calls

3G systems are designed to process data

3G mobile phones can offer subscribers a wide range of

data services such as mobile Internet access and

multimedia applications

By Mohsen Bahrami 11

By Mohsen Bahrami 12

The main 3G technologies include UMTS and cdma2000

UTMS Universal Mobile Telecommunication Service

Europe settling on the UMTS with wideband CDMA (WCDMA)

WCDMA systems make more efficient use of the available

spectrum

In Europe

2012 3G subscriptions will outnumber GSM

2014 More than 70 of mobile subscriptions will be 3G

Mobile broadband began with WCDMA and its first

evolution - HSPA

By Mohsen Bahrami 13

An amalgamation of two mobile telephony protocols High

Speed Downlink Packet Access (HSDPA) and High Speed

Uplink Packet Access (HSUPA) that extends and improves

the performance of existing WCDMA protocols

HSPA supports increased peak data rates of up to 14 Mbits

in the downlink and 576 Mbits in the uplink

Today 100 of WCDMA operators have deployed HSPA

424 commercial HSPA networks in 165 countries

Achieved in less than 6 years

(November 29 2011)

By Mohsen Bahrami 14

By Mohsen Bahrami 15

8175 million mobile broadband subs (WCDMA including

HSPA) - Q3 2011

3227 HSPA user devices launched in the market by 264

suppliers

Most operators include mobile broadband in their service

portfolio

Mobile broadband is driving traffic revenue and profit

growth in markets throughout the world

By Mohsen Bahrami 16

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

GPRS General Packet Radio Service

GPRS also referred to as 25G

It offered packet-switched traffic with new network

components integrated over the existence GSM core

network

This allowed data bitrates to increase to 171kbps It is also

considered as the first step towards 3G networks

By Mohsen Bahrami 5

EDGE Enhanced Data rates for GSM Evolution

Also Referred as 275G

It was made to cover the delay of delivery of 3GUMTS

network It supported data rates up to 384kbps

By Mohsen Bahrami 6

By Mohsen Bahrami 7

All About BroadBand and Internet Connectivity

By Mohsen Bahrami 8

GSM

96kbps (one timeslot)

GSM Data

Also called CSD

GSM

General Packet Radio Services

Data rates up to ~ 115 kbps

Max 8 timeslots used as any one time

Packet switched resources not tied up all the time

Contention based Efficient but variable delays

GSM GPRS core network re-used by WCDMA (3G)

GPRS

HSCSD

High Speed Circuit Switched Data

Dedicate up to 4 timeslots for data connection ~ 50 kbps

Good for real-time applications cw GPRS

Inefficient -gt ties up resources even when nothing sent

Not as popular as GPRS (many skipping HSCSD)

EDGE

Enhanced Data Rates for Global Evolution

Uses 8PSK modulation

3x improvement in data rate on short distances

Can fall back to GMSK for greater distances

Combine with GPRS (EGPRS) ~ 384 kbps

Can also be combined with HSCSD

WCDMA

3G

By Mohsen Bahrami 9

By Mohsen Bahrami 10

Support much higher data transmission rates

Increased capacity makes them suitable for high-speed

data applications as well as for the traditional voice calls

3G systems are designed to process data

3G mobile phones can offer subscribers a wide range of

data services such as mobile Internet access and

multimedia applications

By Mohsen Bahrami 11

By Mohsen Bahrami 12

The main 3G technologies include UMTS and cdma2000

UTMS Universal Mobile Telecommunication Service

Europe settling on the UMTS with wideband CDMA (WCDMA)

WCDMA systems make more efficient use of the available

spectrum

In Europe

2012 3G subscriptions will outnumber GSM

2014 More than 70 of mobile subscriptions will be 3G

Mobile broadband began with WCDMA and its first

evolution - HSPA

By Mohsen Bahrami 13

An amalgamation of two mobile telephony protocols High

Speed Downlink Packet Access (HSDPA) and High Speed

Uplink Packet Access (HSUPA) that extends and improves

the performance of existing WCDMA protocols

HSPA supports increased peak data rates of up to 14 Mbits

in the downlink and 576 Mbits in the uplink

Today 100 of WCDMA operators have deployed HSPA

424 commercial HSPA networks in 165 countries

Achieved in less than 6 years

(November 29 2011)

By Mohsen Bahrami 14

By Mohsen Bahrami 15

8175 million mobile broadband subs (WCDMA including

HSPA) - Q3 2011

3227 HSPA user devices launched in the market by 264

suppliers

Most operators include mobile broadband in their service

portfolio

Mobile broadband is driving traffic revenue and profit

growth in markets throughout the world

By Mohsen Bahrami 16

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

EDGE Enhanced Data rates for GSM Evolution

Also Referred as 275G

It was made to cover the delay of delivery of 3GUMTS

network It supported data rates up to 384kbps

By Mohsen Bahrami 6

By Mohsen Bahrami 7

All About BroadBand and Internet Connectivity

By Mohsen Bahrami 8

GSM

96kbps (one timeslot)

GSM Data

Also called CSD

GSM

General Packet Radio Services

Data rates up to ~ 115 kbps

Max 8 timeslots used as any one time

Packet switched resources not tied up all the time

Contention based Efficient but variable delays

GSM GPRS core network re-used by WCDMA (3G)

GPRS

HSCSD

High Speed Circuit Switched Data

Dedicate up to 4 timeslots for data connection ~ 50 kbps

Good for real-time applications cw GPRS

Inefficient -gt ties up resources even when nothing sent

Not as popular as GPRS (many skipping HSCSD)

EDGE

Enhanced Data Rates for Global Evolution

Uses 8PSK modulation

3x improvement in data rate on short distances

Can fall back to GMSK for greater distances

Combine with GPRS (EGPRS) ~ 384 kbps

Can also be combined with HSCSD

WCDMA

3G

By Mohsen Bahrami 9

By Mohsen Bahrami 10

Support much higher data transmission rates

Increased capacity makes them suitable for high-speed

data applications as well as for the traditional voice calls

3G systems are designed to process data

3G mobile phones can offer subscribers a wide range of

data services such as mobile Internet access and

multimedia applications

By Mohsen Bahrami 11

By Mohsen Bahrami 12

The main 3G technologies include UMTS and cdma2000

UTMS Universal Mobile Telecommunication Service

Europe settling on the UMTS with wideband CDMA (WCDMA)

WCDMA systems make more efficient use of the available

spectrum

In Europe

2012 3G subscriptions will outnumber GSM

2014 More than 70 of mobile subscriptions will be 3G

Mobile broadband began with WCDMA and its first

evolution - HSPA

By Mohsen Bahrami 13

An amalgamation of two mobile telephony protocols High

Speed Downlink Packet Access (HSDPA) and High Speed

Uplink Packet Access (HSUPA) that extends and improves

the performance of existing WCDMA protocols

HSPA supports increased peak data rates of up to 14 Mbits

in the downlink and 576 Mbits in the uplink

Today 100 of WCDMA operators have deployed HSPA

424 commercial HSPA networks in 165 countries

Achieved in less than 6 years

(November 29 2011)

By Mohsen Bahrami 14

By Mohsen Bahrami 15

8175 million mobile broadband subs (WCDMA including

HSPA) - Q3 2011

3227 HSPA user devices launched in the market by 264

suppliers

Most operators include mobile broadband in their service

portfolio

Mobile broadband is driving traffic revenue and profit

growth in markets throughout the world

By Mohsen Bahrami 16

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 7

All About BroadBand and Internet Connectivity

By Mohsen Bahrami 8

GSM

96kbps (one timeslot)

GSM Data

Also called CSD

GSM

General Packet Radio Services

Data rates up to ~ 115 kbps

Max 8 timeslots used as any one time

Packet switched resources not tied up all the time

Contention based Efficient but variable delays

GSM GPRS core network re-used by WCDMA (3G)

GPRS

HSCSD

High Speed Circuit Switched Data

Dedicate up to 4 timeslots for data connection ~ 50 kbps

Good for real-time applications cw GPRS

Inefficient -gt ties up resources even when nothing sent

Not as popular as GPRS (many skipping HSCSD)

EDGE

Enhanced Data Rates for Global Evolution

Uses 8PSK modulation

3x improvement in data rate on short distances

Can fall back to GMSK for greater distances

Combine with GPRS (EGPRS) ~ 384 kbps

Can also be combined with HSCSD

WCDMA

3G

By Mohsen Bahrami 9

By Mohsen Bahrami 10

Support much higher data transmission rates

Increased capacity makes them suitable for high-speed

data applications as well as for the traditional voice calls

3G systems are designed to process data

3G mobile phones can offer subscribers a wide range of

data services such as mobile Internet access and

multimedia applications

By Mohsen Bahrami 11

By Mohsen Bahrami 12

The main 3G technologies include UMTS and cdma2000

UTMS Universal Mobile Telecommunication Service

Europe settling on the UMTS with wideband CDMA (WCDMA)

WCDMA systems make more efficient use of the available

spectrum

In Europe

2012 3G subscriptions will outnumber GSM

2014 More than 70 of mobile subscriptions will be 3G

Mobile broadband began with WCDMA and its first

evolution - HSPA

By Mohsen Bahrami 13

An amalgamation of two mobile telephony protocols High

Speed Downlink Packet Access (HSDPA) and High Speed

Uplink Packet Access (HSUPA) that extends and improves

the performance of existing WCDMA protocols

HSPA supports increased peak data rates of up to 14 Mbits

in the downlink and 576 Mbits in the uplink

Today 100 of WCDMA operators have deployed HSPA

424 commercial HSPA networks in 165 countries

Achieved in less than 6 years

(November 29 2011)

By Mohsen Bahrami 14

By Mohsen Bahrami 15

8175 million mobile broadband subs (WCDMA including

HSPA) - Q3 2011

3227 HSPA user devices launched in the market by 264

suppliers

Most operators include mobile broadband in their service

portfolio

Mobile broadband is driving traffic revenue and profit

growth in markets throughout the world

By Mohsen Bahrami 16

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

All About BroadBand and Internet Connectivity

By Mohsen Bahrami 8

GSM

96kbps (one timeslot)

GSM Data

Also called CSD

GSM

General Packet Radio Services

Data rates up to ~ 115 kbps

Max 8 timeslots used as any one time

Packet switched resources not tied up all the time

Contention based Efficient but variable delays

GSM GPRS core network re-used by WCDMA (3G)

GPRS

HSCSD

High Speed Circuit Switched Data

Dedicate up to 4 timeslots for data connection ~ 50 kbps

Good for real-time applications cw GPRS

Inefficient -gt ties up resources even when nothing sent

Not as popular as GPRS (many skipping HSCSD)

EDGE

Enhanced Data Rates for Global Evolution

Uses 8PSK modulation

3x improvement in data rate on short distances

Can fall back to GMSK for greater distances

Combine with GPRS (EGPRS) ~ 384 kbps

Can also be combined with HSCSD

WCDMA

3G

By Mohsen Bahrami 9

By Mohsen Bahrami 10

Support much higher data transmission rates

Increased capacity makes them suitable for high-speed

data applications as well as for the traditional voice calls

3G systems are designed to process data

3G mobile phones can offer subscribers a wide range of

data services such as mobile Internet access and

multimedia applications

By Mohsen Bahrami 11

By Mohsen Bahrami 12

The main 3G technologies include UMTS and cdma2000

UTMS Universal Mobile Telecommunication Service

Europe settling on the UMTS with wideband CDMA (WCDMA)

WCDMA systems make more efficient use of the available

spectrum

In Europe

2012 3G subscriptions will outnumber GSM

2014 More than 70 of mobile subscriptions will be 3G

Mobile broadband began with WCDMA and its first

evolution - HSPA

By Mohsen Bahrami 13

An amalgamation of two mobile telephony protocols High

Speed Downlink Packet Access (HSDPA) and High Speed

Uplink Packet Access (HSUPA) that extends and improves

the performance of existing WCDMA protocols

HSPA supports increased peak data rates of up to 14 Mbits

in the downlink and 576 Mbits in the uplink

Today 100 of WCDMA operators have deployed HSPA

424 commercial HSPA networks in 165 countries

Achieved in less than 6 years

(November 29 2011)

By Mohsen Bahrami 14

By Mohsen Bahrami 15

8175 million mobile broadband subs (WCDMA including

HSPA) - Q3 2011

3227 HSPA user devices launched in the market by 264

suppliers

Most operators include mobile broadband in their service

portfolio

Mobile broadband is driving traffic revenue and profit

growth in markets throughout the world

By Mohsen Bahrami 16

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

GSM

96kbps (one timeslot)

GSM Data

Also called CSD

GSM

General Packet Radio Services

Data rates up to ~ 115 kbps

Max 8 timeslots used as any one time

Packet switched resources not tied up all the time

Contention based Efficient but variable delays

GSM GPRS core network re-used by WCDMA (3G)

GPRS

HSCSD

High Speed Circuit Switched Data

Dedicate up to 4 timeslots for data connection ~ 50 kbps

Good for real-time applications cw GPRS

Inefficient -gt ties up resources even when nothing sent

Not as popular as GPRS (many skipping HSCSD)

EDGE

Enhanced Data Rates for Global Evolution

Uses 8PSK modulation

3x improvement in data rate on short distances

Can fall back to GMSK for greater distances

Combine with GPRS (EGPRS) ~ 384 kbps

Can also be combined with HSCSD

WCDMA

3G

By Mohsen Bahrami 9

By Mohsen Bahrami 10

Support much higher data transmission rates

Increased capacity makes them suitable for high-speed

data applications as well as for the traditional voice calls

3G systems are designed to process data

3G mobile phones can offer subscribers a wide range of

data services such as mobile Internet access and

multimedia applications

By Mohsen Bahrami 11

By Mohsen Bahrami 12

The main 3G technologies include UMTS and cdma2000

UTMS Universal Mobile Telecommunication Service

Europe settling on the UMTS with wideband CDMA (WCDMA)

WCDMA systems make more efficient use of the available

spectrum

In Europe

2012 3G subscriptions will outnumber GSM

2014 More than 70 of mobile subscriptions will be 3G

Mobile broadband began with WCDMA and its first

evolution - HSPA

By Mohsen Bahrami 13

An amalgamation of two mobile telephony protocols High

Speed Downlink Packet Access (HSDPA) and High Speed

Uplink Packet Access (HSUPA) that extends and improves

the performance of existing WCDMA protocols

HSPA supports increased peak data rates of up to 14 Mbits

in the downlink and 576 Mbits in the uplink

Today 100 of WCDMA operators have deployed HSPA

424 commercial HSPA networks in 165 countries

Achieved in less than 6 years

(November 29 2011)

By Mohsen Bahrami 14

By Mohsen Bahrami 15

8175 million mobile broadband subs (WCDMA including

HSPA) - Q3 2011

3227 HSPA user devices launched in the market by 264

suppliers

Most operators include mobile broadband in their service

portfolio

Mobile broadband is driving traffic revenue and profit

growth in markets throughout the world

By Mohsen Bahrami 16

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 10

Support much higher data transmission rates

Increased capacity makes them suitable for high-speed

data applications as well as for the traditional voice calls

3G systems are designed to process data

3G mobile phones can offer subscribers a wide range of

data services such as mobile Internet access and

multimedia applications

By Mohsen Bahrami 11

By Mohsen Bahrami 12

The main 3G technologies include UMTS and cdma2000

UTMS Universal Mobile Telecommunication Service

Europe settling on the UMTS with wideband CDMA (WCDMA)

WCDMA systems make more efficient use of the available

spectrum

In Europe

2012 3G subscriptions will outnumber GSM

2014 More than 70 of mobile subscriptions will be 3G

Mobile broadband began with WCDMA and its first

evolution - HSPA

By Mohsen Bahrami 13

An amalgamation of two mobile telephony protocols High

Speed Downlink Packet Access (HSDPA) and High Speed

Uplink Packet Access (HSUPA) that extends and improves

the performance of existing WCDMA protocols

HSPA supports increased peak data rates of up to 14 Mbits

in the downlink and 576 Mbits in the uplink

Today 100 of WCDMA operators have deployed HSPA

424 commercial HSPA networks in 165 countries

Achieved in less than 6 years

(November 29 2011)

By Mohsen Bahrami 14

By Mohsen Bahrami 15

8175 million mobile broadband subs (WCDMA including

HSPA) - Q3 2011

3227 HSPA user devices launched in the market by 264

suppliers

Most operators include mobile broadband in their service

portfolio

Mobile broadband is driving traffic revenue and profit

growth in markets throughout the world

By Mohsen Bahrami 16

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Support much higher data transmission rates

Increased capacity makes them suitable for high-speed

data applications as well as for the traditional voice calls

3G systems are designed to process data

3G mobile phones can offer subscribers a wide range of

data services such as mobile Internet access and

multimedia applications

By Mohsen Bahrami 11

By Mohsen Bahrami 12

The main 3G technologies include UMTS and cdma2000

UTMS Universal Mobile Telecommunication Service

Europe settling on the UMTS with wideband CDMA (WCDMA)

WCDMA systems make more efficient use of the available

spectrum

In Europe

2012 3G subscriptions will outnumber GSM

2014 More than 70 of mobile subscriptions will be 3G

Mobile broadband began with WCDMA and its first

evolution - HSPA

By Mohsen Bahrami 13

An amalgamation of two mobile telephony protocols High

Speed Downlink Packet Access (HSDPA) and High Speed

Uplink Packet Access (HSUPA) that extends and improves

the performance of existing WCDMA protocols

HSPA supports increased peak data rates of up to 14 Mbits

in the downlink and 576 Mbits in the uplink

Today 100 of WCDMA operators have deployed HSPA

424 commercial HSPA networks in 165 countries

Achieved in less than 6 years

(November 29 2011)

By Mohsen Bahrami 14

By Mohsen Bahrami 15

8175 million mobile broadband subs (WCDMA including

HSPA) - Q3 2011

3227 HSPA user devices launched in the market by 264

suppliers

Most operators include mobile broadband in their service

portfolio

Mobile broadband is driving traffic revenue and profit

growth in markets throughout the world

By Mohsen Bahrami 16

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 12

The main 3G technologies include UMTS and cdma2000

UTMS Universal Mobile Telecommunication Service

Europe settling on the UMTS with wideband CDMA (WCDMA)

WCDMA systems make more efficient use of the available

spectrum

In Europe

2012 3G subscriptions will outnumber GSM

2014 More than 70 of mobile subscriptions will be 3G

Mobile broadband began with WCDMA and its first

evolution - HSPA

By Mohsen Bahrami 13

An amalgamation of two mobile telephony protocols High

Speed Downlink Packet Access (HSDPA) and High Speed

Uplink Packet Access (HSUPA) that extends and improves

the performance of existing WCDMA protocols

HSPA supports increased peak data rates of up to 14 Mbits

in the downlink and 576 Mbits in the uplink

Today 100 of WCDMA operators have deployed HSPA

424 commercial HSPA networks in 165 countries

Achieved in less than 6 years

(November 29 2011)

By Mohsen Bahrami 14

By Mohsen Bahrami 15

8175 million mobile broadband subs (WCDMA including

HSPA) - Q3 2011

3227 HSPA user devices launched in the market by 264

suppliers

Most operators include mobile broadband in their service

portfolio

Mobile broadband is driving traffic revenue and profit

growth in markets throughout the world

By Mohsen Bahrami 16

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

The main 3G technologies include UMTS and cdma2000

UTMS Universal Mobile Telecommunication Service

Europe settling on the UMTS with wideband CDMA (WCDMA)

WCDMA systems make more efficient use of the available

spectrum

In Europe

2012 3G subscriptions will outnumber GSM

2014 More than 70 of mobile subscriptions will be 3G

Mobile broadband began with WCDMA and its first

evolution - HSPA

By Mohsen Bahrami 13

An amalgamation of two mobile telephony protocols High

Speed Downlink Packet Access (HSDPA) and High Speed

Uplink Packet Access (HSUPA) that extends and improves

the performance of existing WCDMA protocols

HSPA supports increased peak data rates of up to 14 Mbits

in the downlink and 576 Mbits in the uplink

Today 100 of WCDMA operators have deployed HSPA

424 commercial HSPA networks in 165 countries

Achieved in less than 6 years

(November 29 2011)

By Mohsen Bahrami 14

By Mohsen Bahrami 15

8175 million mobile broadband subs (WCDMA including

HSPA) - Q3 2011

3227 HSPA user devices launched in the market by 264

suppliers

Most operators include mobile broadband in their service

portfolio

Mobile broadband is driving traffic revenue and profit

growth in markets throughout the world

By Mohsen Bahrami 16

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

An amalgamation of two mobile telephony protocols High

Speed Downlink Packet Access (HSDPA) and High Speed

Uplink Packet Access (HSUPA) that extends and improves

the performance of existing WCDMA protocols

HSPA supports increased peak data rates of up to 14 Mbits

in the downlink and 576 Mbits in the uplink

Today 100 of WCDMA operators have deployed HSPA

424 commercial HSPA networks in 165 countries

Achieved in less than 6 years

(November 29 2011)

By Mohsen Bahrami 14

By Mohsen Bahrami 15

8175 million mobile broadband subs (WCDMA including

HSPA) - Q3 2011

3227 HSPA user devices launched in the market by 264

suppliers

Most operators include mobile broadband in their service

portfolio

Mobile broadband is driving traffic revenue and profit

growth in markets throughout the world

By Mohsen Bahrami 16

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 15

8175 million mobile broadband subs (WCDMA including

HSPA) - Q3 2011

3227 HSPA user devices launched in the market by 264

suppliers

Most operators include mobile broadband in their service

portfolio

Mobile broadband is driving traffic revenue and profit

growth in markets throughout the world

By Mohsen Bahrami 16

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

8175 million mobile broadband subs (WCDMA including

HSPA) - Q3 2011

3227 HSPA user devices launched in the market by 264

suppliers

Most operators include mobile broadband in their service

portfolio

Mobile broadband is driving traffic revenue and profit

growth in markets throughout the world

By Mohsen Bahrami 16

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

0

50

100

150

200

250

300

350

400

450

Q20

4

Q30

4

Q40

4

Q10

5

Q20

5

Q30

5

Q40

5

Q10

6

Q20

6

Q30

6

Q40

6

Q10

7

Q20

7

Q30

7

Q40

7

Q10

8

Q20

8

Price trend for low-end WCDMA handsets

Source Qualcomm Ericsson analysis

-12 per

quarter

Handset prices drop low cost HSPA chipsets comingBy Mohsen Bahrami 17

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

HSPA Phones (inc Smart phones) growth 29 year to yearBy Mohsen Bahrami 18

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 19

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 20

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 21

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 22

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

The first and major opportunity we are in fact talking

about is the Broadband Business or Internet Connectivity

It is NOT about the Mobile Business at this stage this will

come as well but this IS in fact a new Business for most

Mobile Operators

By Mohsen Bahrami 23

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Sources Ovum Wireless Intelligence Strategy Analytics Gartner and Ericsson calculationsextrapolations

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011

Millions Mobile Broadband

Fixed Broadband

15 billion subscriptions

2011

Mobile Broadband including HSPA LTE

CDMA2000 1xEV and mobile WiMAX

Broadband Everywhere vision becoming a reality

By Mohsen Bahrami 24

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 25

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

3G

HSPA

HSPA Evolved

Future

2002 2008 2009

384 kbps 3672 Mbps 42 Mbps 80 MbpsPeak rate DL

100x Higher Peak Rate in 7 years

Future

144 Mbps DL

14 Mbps UL

The experience of true Broadband

By Mohsen Bahrami 26

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

185 HSPA networks in commercial operation already today

Source Strategy Analytics ndash Mobile Broadband Subscriptions November 2006

EV-DO 24

Flash-OFDM 04

UMTS TDD 27

iBurst 02

Mobile WiMAX 25

HSPA 71

By Mohsen Bahrami 27

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 28

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 29

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

LTE Smooth transition from 3G to 4G

LTE 3GPP Long Term Evolution

Improved Spectrum Efficiency

Much faster Uplink

Comes from more need for network capacity performance

management and efficiency

Lower cost

Complements 3GHSPA

By Mohsen Bahrami 30

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 31

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 32

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 33

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 34

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 35

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

The new Internet is mobile wireless connectivity is extending

into new applications and environments

Smartphone will soon dominate the mobile broadband

landscape

The outlook is for continuing strong data growth video will be

a major component

HSPA+ is enabling operators to deliver an improved user

experience with higher data performance reduced latency at

lower cost and position for growth

LTE is the next step in the user experience and essential for

taking mobile broadband to the mass market and to achieve

the full potential of mobile broadband

LTE TDD technology is quickly maturing and may present

interesting possibilities

By Mohsen Bahrami 36

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

LTE and HSPAHSPA+ will co-exist for several years

Business model innovation is needed

Access to new spectrum is crucial

26 GHz for capacity sub 1 GHz (digital dividend) for

coverage and improved in-building performance

Re-farmed spectrum eg 1800 MHz will give some

operators an additional option for migrating to LTE

By Mohsen Bahrami 37

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Operators have slashed prices by up to 90 within the

space of 2 to 3 years

Depending on the country different pricing schemes are

offered by 3G operators

Most operators price by data volume with a stated amount

eg 5 Gbytes or use the term ldquounlimited subject to fair

userdquo

For prepaid customers some operators offer unlimited

usage for one day

Pricing by download speed is rarer eg in Singapore

Pricing by duration of connection is also rare and used for

example in Italy

Some operators charge a premium rate for corporate users

By Mohsen Bahrami 38

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Area 1648000 Km2

Population 76000000

Urban Rural 71 29

Age Distribution 65 lt35 Years

By Mohsen Bahrami 39

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Iran Network Operators

MCI (1993)

MTN Irancell (2006)

Taliya (2004)

By Mohsen Bahrami 40

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 41

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Approximate Market Share (2010-11)

MCI 60

MTN Irancell 40

Taliya Negligible

Subscribers About 70mn

Estimated Penetration rate for 2014 is 132

that would be about 103mn Subscribers

By Mohsen Bahrami 42

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Both operators offer

GPRS data services and in some regions they offer EDGE

technology

Postpaid and Prepaid SIM Cards

Voice Call SMS MMS VMS International Roaming

Mobile banking e-Care

Both Systems are based on 2 25 and 275G

By Mohsen Bahrami 43

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Irancell MCI

News Paper Mobile Fax

WiMax Data

Push Mail -

Home Zone -

Family amp Friend Finder (LBS) -

Voice SMS -

Who Called -

Vitrin -

Offering More services

Promotions and special

Discounts offered by

Irancell are Much more

than those offered by

MCI By Mohsen Bahrami 44

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Both Had announced that they were ready to upgrade their

systems to Next Generations 3G

They had the Hardware for 3G systems and just software

needed to be upgraded

Because of Iran Governments Policy to protect the 3rd

Operator entering the market the Exclusivity of 3G for 2

years (until 2014) belongs to the 3rd operator and they are

not allowed to upgrade their systems

But they are planning to launch 4G in 2014

MCI has launched Trial 4G systems to test the systems and

get ready to launch 4G in 2014 after 2 years protection

period

However it seems none of these 2 operators would launch

3G systems and they will upgrade directly to 4G

By Mohsen Bahrami 45

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Now Letrsquos Get back to 3GHSPA and Iran

Where the 3rd Operator (RighTel) is about to

lunch 3G-HSPA Network

We will talk about

Global Trends

Success Factors of Broadband

Market Examples

3G Value added Services

Statistics amp opinions

Risks and Opportunities

By Mohsen Bahrami 46

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Stay competitive

Mobile broadband is happening

User trends move towards laptop usage and frequent

access to internet regardless of current location

Reference cases from operators all over the world shows

its success

Current mobile competitors will launch alternative

access methods keep growing

Competition with other access methods

Fixed broadband tying the user to a specific socket

Offered mainly by ISPs and fixed operators

Broadband via WiMax or other Wi-Fi tying tie the user to

a specific location Offered by ISPsoperators

By Mohsen Bahrami 47

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Grow and keep your customer base

Mobile broadband will allow the operator to acquire new

customers and evolve existing customers into an extended

internet behavior

Capture new customers

(that may have another operator for fixed broadband or

mobile subscription)

Retainexpand business with current customers by

offering competitive packages of mobile broadband in

addition their current commitment

Offer bundles with fixed broadband andor mobile

subscriptions for increased loyalty

By Mohsen Bahrami 48

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Grow Revenues

Uptake and thereby time to revenue is fast

Easy to get started established behavior and straight

forward pricing (flat-rate) encourage take-up

Mobile broadband investments are low which in

combination with increased revenues will result in higher

profitability and ARPS (Average Revenue Per Subscriber) for

the operator

Supported by a thorough business case

By Mohsen Bahrami 49

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007

No connection Mobile Broadband

ldquoBefore lsquoMobile broadband I did not have any internet connection

I always went to the cyber cafeacutes to surfrdquo ndashStudent South East Asia

Dial Up Mobile Broadband

Internet connection

Main trigger ndash simplicity

39

45

15

No fixed connection Broadband Dial-up

Slow speed

Fixed broadband

Mobile Broadband

Easier to get Mobile broadband than getting fixed broadband

ndash Have no fixed phone

ndash Long waiting time ndash need it now

ndash Moving a lot (young people students) Almost 40 had no

Internet connection

before acquiring

Mobile

broadband

South East Asia

By Mohsen Bahrami 50

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

9

17

37

16

54

96

7

12

28

11

52

96

2

3

4

6

34

81

When commuting (on a bus train

or in a car)

When visiting friends and relatives

In public places (restaurants in the

park coffee shop)

When on vacation

At schoolwork

At home

At least monthly At least weekly At least daily

In what situation andor places and how often do you use wireless broadband today

Source Mobile broadband user study Operatorrsquos customer base South East Asia 2007By Mohsen Bahrami 51

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

MTN ccess Internet cafeacute in South

Africa

Job searching and applications

Health and education information

Launched HSPA in June 2006 and

profitable after just two months

Telstra provides broadband to remote

areas in Australia using HSPA

Also ethernet connections and fixed

phone connections provided using HSPA

98 of pop covered in 10 months

Up to 200 km distance from basestation

By Mohsen Bahrami 52

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

In the advent of HSPA 3 decided to adjust strategy

The follow conclusions were drawn

Become a Broadband provider DSL replacement

Beat fixed competition (both in capacity price and time to

customer (TTM))

Secure professional end-user support

3 Sweden in the lead ndash 17 subscriber growth annually

By Mohsen Bahrami 53

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Market trendBroadband connection is a commodity

Wireless connection already exists

Mobility might be a premium

CompetitionMobile ~fixed

Fixed due to market acceptance accepted price levels

TechnologyHSPA LTE ~ sufficient to cater for market need

36 ndash 72 ndash 144 - LTE

Unlimited access

199 SEK month

By Mohsen Bahrami 54

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Ingredients

First on the market

Flat rate

ADSL-comparable price

Think broadband

Focused campaign effort

Result

~10 000 new HSPA subscriptions per month (compared to total customer base of 400 000)

By Mohsen Bahrami 55

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

1To start with it IS The technology that makes it possible

1 The end user doesnrsquot care any longer since it is now comparable to any other BB alternative

2 It is cost efficient to the operator

2Which allows for pricing schemes that makes it an attractive proposition

1 And the Key to success is the simplest of Business Models going head to head with Fixed Offerings

3End users know what to do with it there is no Need to educate them

4The market size supports economies of scale as the Wireless Market is potentially much larger than the alternatives

5And we are in mass market mode

By Mohsen Bahrami 56

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Source IFPI (January 2008) Blizzard (January 2008) YoSpace (February 2008) Apple (January 2008)

World of War craft the

subscription-based

online game has more

than 10 million players

More than 4 billion songs

125 million TV shows

and 7 million movies

have been purchased

from iTunes Store

Users of 3UKrsquos SeeMeTV

and O2 UKrsquos LookAtMe

have paid for more than

32 million downloads

since launch

Global digital music sales

reached $3 billion in

2007 half of the

revenues came from

mobile

By Mohsen Bahrami 57

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Positioning

Interoperability

Content rights

Format handling

Flexible charging

Standards

Location

Presence

Identity

Localized offers

Quality of service

Legalethical delivery

Data mining

Telcorsquos

network

enablers

build an

attractive

service

offering

Network enablers

Mobile TV

Surveillance

VOD

Online music

IPTV

Online gamingOnline radio

Mobile music

Podcasting

Moblogging

Mobile games

Information

Web-surfing

Photos

Payment

Voting

Trailers

CommunitiesIM

Chat

Messaging

E-mail

By Mohsen Bahrami 58

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Three industries Telecom Media and Internet are coming

together to create a whole new world of possibilities for

people to enjoy socialize and consume but also to make

things more convenient and efficient

In the Telecom Industry we see that Service Providers

with both fixed and mobile network are becoming

broadband enabled and therefore very well suited for

carrying advanced digital content eg music movies or

mobile TV on the move as well as IPTV (in High Definition)

to the home Telecoms drivers to drive this market -

additional revenues and differentiation

By Mohsen Bahrami 59

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

The Media and Content industry is rapidly being digitalized and it is likely that all content will be available in a digital format in the future The evolution of this digitalization can be exemplified by the evolution of TV This means new opportunities for content and media companies in this networked media business

The internet ndash we can clearly see that this industry is driving the evolution and development of new services And the parts of the internet industry that are really interesting in this regard are the players that provide a communication client which people can use to communicate through players like yahoo messenger and skype so called rdquocommunication client providersrdquo and then players which create possibilities for social networking communities to be creates ndash communities centered around a certain interest belonging or hobby such as Lunarstorm MySpace and Friendster

By Mohsen Bahrami 60

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Enablers and

ubiquitous access

Digital content

Search sharing and

self-expression

By Mohsen Bahrami 61

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

On-Device Portals

Music Solutions

Mobile TV

IPTV

IMS Applications

Mobile Advertising

Mobile Gaming

By Mohsen Bahrami 62

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Voice Calls

Video Calls

Video Conferences

SMS

MMS

VMS

Voice SMS

Mobile Web Browsing

Mobile Health

Mobile Music amp Video

Mobile Banking

Mobile Gaming

On-Device Portals

Mobile TV

IPTV

IMS Applications

Mobile Advertising

LBS

GPS amp Navigator

News amp Weather

By Mohsen Bahrami 63

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Following we will see the Data and statistics

gathered By Ericsson in IRAN about Mobile

Broadband(2008)

Ericsson was trying to start Broadband

Business with Iran Telecom Operators

With thanks to Ericsson for providing the

data

By Mohsen Bahrami 64

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Qualitative

research

Quantitative

research

Validated and

standardized

approach for

gathering data

Focus Groups

bull 8 groups ndash 8

people per group

Phase 1 Phase 2

Data Analysis

and report

development

bull Total 2000 face to

face interviews

1800 from Urban

areas and 200

from rural areas

(benchmark)

Proven tools amp

methodologies

for analysis

Phase 3

In-depth

interviews

bull 30 in Tehran and

Shiraz

o 2000 People were interviewed face to face

By Mohsen Bahrami 65

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

All (15-59)

Have Computerlaptop

Use Internet at

least monthly

Have Internet

connection at home

71

52

40

40 of the total sample have and use internet at least monthly

Eight out of ten Iranians who have an internet connection also use it at least monthly

However almost 30 of the PC out there are disconnected to the internet

Among 15-24 year olds 89 who have an internet connection at home use it at least monthly

100 Youth 15-24 years

Have Computerlaptop 82

61

54

100

By Mohsen Bahrami 66

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

How often do you use any of your mobile phones for the following

= Significant higher value than Total (based on 95 confidence interval)

= Significant lower value than Total (based on 95 confidence interval)

Weekly usage Total

Pioneer

Youth

Mainstream

Youth Careerists Experiencers

Mainstream

Materialists

In touch

Organisers

Family

Phoners

Basic Phoners

(Low base)

Makereceive calls (talking) 99 100 99 99 99 99 97 99 98

Sendreceive SMS 95 100 99 99 96 92 92 88 74

Sendreceive missed calls beeps clips 83 90 85 85 79 84 79 79 66

Camera function to take pictures 62 74 66 59 45 74 57 48 33

Bluetooth 58 74 66 52 55 67 45 43 21

Listen to musicMP3 player 57 82 61 53 53 64 44 38 14

Camera function to take video clips 47 59 54 47 40 57 36 32 17

Use calendardiary function 40 50 38 42 41 38 37 35 25

Play games on mobile 39 64 47 37 21 44 26 18 18

Use handsfree or headset 33 56 34 22 23 33 23 22 16

Listen to radio (FM or operator) 13 10 14 8 13 16 16 13 8

Check voice mail 7 15 3 6 9 7 7 2 6

To no surprise itrsquos the Youth segments that are leading the way of the mobile way of life closely

followed by the Mainstream Materialists

The Youth act as ambassadors for service diffusion

They are formed by their usage and they will bring their behavior with them when growing older

By Mohsen Bahrami 67

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

How often do you do the following activities using an Internet connection on a computer

10

10

8

7

5

3

3

2

2

2

1

1

1

0

20

18

17

5

4

1

4

5

3

2

1

1

1

1

27

28

16

13

8

13

16

17

13

9

2

7

2

3

8

16

11

6

3

13

5

10

12

9

6

9

5

4

13

18

17

16

10

25

16

18

23

29

7

21

10

12

Personal e-mails

Browse the Internet for personal use

Use Instant messagingchat for personal reasons

Browse the Internet for work-related reasons

Workbusiness related e-mails

Browse for information about things you want to buy

Use Internet communities

Blogging (readingwriting blogs)

Purchase and download musicmovies

Click on banners and advertising links

Internet banking

File sharing (for free) of musicmovies

Purchase things over the Internet (other than music)

Make phone calls over the Internet using IP-telephony

Several times a day Once a day Weekly Monthly Less often

Internet is mainly used for personal reasons and for personal communication

Some restrictions in speed have an impact on usage ndash compared to other non restricted markets

the overall usage frequency is low

By Mohsen Bahrami 68

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 69

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 70

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

ldquoMany of the new mobile phones have numerous functions and can access new services Even if you do not have a

mobile phone or donrsquot have the latest mobile phone please try to answer the questions Here is a list of

different services and features along with a brief description of what each service means Imagine that there

would be no technical problems using these services Please show me how interested you would be in having

different services in a mobile phone

67

64

63

62

60

45

44

41

Mobile TV

Sharing A Picture

Video ClipsLive PicturesTV

downloads

MultimediaPicture Messaging

Automatic Mobile Phone Backup

Service

Mobile Browsing Of The Internet

Tickets In Your Mobile Phone

E-Mail

Top 2 boxes

By Mohsen Bahrami 71

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 72

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 73

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

56

Kbps

256

Kbps

1 M

bps

2 M

bps

7 M

bps

Fas

ter

0 0

99

64

18

1 56 Kbps

2 256 Kbps

3 1 Mbps

4 2 Mbps

5 7 Mbps

6 Faster

By Mohsen Bahrami 74

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Those

that

giv

e bet

ter

Those

that

are

chea

p

Those

that

are

chea

p

Those

that

hav

e m

or

0

13

73

13

1 Those that give better

lsquotechnicalrsquo performance

2 Those that are cheaper

for operators to deploy

3 Those that are cheaper

for end consumers to buy

4 Those that have more

marketing spend behind

them

By Mohsen Bahrami 75

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

8

15 15

46

15

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 76

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Educa

tion

Hea

lth

Fin

ance

Tra

nspor

t

Man

ufact

urin

g

Ente

rtai

nmen

t

50

21

14

0

77

1 Education

2 Health

3 Finance

4 Transport

5 Manufacturing

6 Entertainment

By Mohsen Bahrami 77

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Vid

eo T

elep

hony

Mobi

le T

V

Musi

c

Inte

rnet

Acc

ess

New

s

6

33

11

39

11

1 Video Telephony

2 Mobile TV

3 Music

4 Internet Access

5 News

By Mohsen Bahrami 78

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Stron

gly A

gree

Agre

e

Neu

tral

Dis

agre

e

Stron

gly D

isag

ree

12

53

0

24

12

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

By Mohsen Bahrami 79

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Ericsson Says According to the Statistics 3G systems will Shine in IRANrsquos market and the winner of this market is the operator Which Launches the 3G System First

I think that would be right if we were talking about first 2 Operators MCI amp Irancell Also there are some Important points missing which we will talk about them in the following Slides

But RighTel is a New Operator entering the market So there are some questions

Would RighTel be Able to capture a big market Share Of mobile phone subscribers in the first 2 years of Operation with 3G exclusivity

What would convince customers decide about changing their operator from MCI or Irancell to RighTel

What Would attract new mobile customers to buy RighTel

What are the most important risks which would make RighTel loose and RighTel Should be Aware of them

By Mohsen Bahrami 80

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

By Mohsen Bahrami 81

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

RighTel Claims that it will offer the following Services from the First day of starting its sales using 3GHSPA

Voice Calls (Faster More Clear voice Higher Quality amp very low waiting time comparing other 2 operatorsrsquo)

SMS

MMS (Faster with Higher Capacity comparing other 2 operatorsrsquo)

Video Calls

Broadband HSPA Data Services (up to 2 Mbps)

Also RighTel Would be able to Offer all HSPA services we talked about them (slide No63) the Cost of starting those services would be very low for a HSPA operator Comparing other costs and it needs very Short time

For the beginning it is offering 2 services (Video Calls and BB Internet Service) which the other 2 operators are not able to offer these services

By Mohsen Bahrami 82

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

First We talk about major risks and then we will Use a Risk

Breakdown Structure for more and Detailed risk Analysis

At the End We will talk about Opportunities and Services

that RighTel Would offer to Expand its Subscribers

This Risk Analysis is at the Enterprise Level because this

organization is some how a Uni-Product organization

Also will cover the tope 4 Items

By Mohsen Bahrami 83

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

RighTel is a new network operator

will need time and high advertising costs to introduce itself to the

people and compete in Market

Also as new Operator RighTel has no operating experiences

and facing new situations would cost it a lot

RighTel is the First operator offering 3G services so a

considerable percentage of customers are not familiar with

3G systems and its Services

Note When Irancell started to work It had the asset of ldquoSignificant MTN

experiencerdquo

By Mohsen Bahrami 84

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Fast Growth Rate of Network Coverage

for RighTel in first two years is very

Crucial

A Big percentage of HSPA internet Users

would like to access Internet when

Traveling to other Cities and on the

Road

Network Coverage Depends on the

Number of BTS Sites

The biggest Cost for any Operator is the

budget paid for BTS sites

Financial and Technical problems also

sanctions will affect the Network

coverage plan for any operator

By Mohsen Bahrami 85

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Expanding Network coverage Depending on the Numbers of

BTS sites needs time and money

See an example of Irancell number of BTS sites only for

covering 53 of Population

By Mohsen Bahrami 86

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

As you can see below both MCI amp Irancell Have stated

Sanctions as one of most Important Challenges or Risk

Threatening their Business

(Source Risk Report of MCI 2009 Irancell 2008)

By Mohsen Bahrami 87

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Since a considerable percentage of mobile phone owners

own the phone which do not Support 3G Networkhellip

In order to Buy RighTel SIM cards or use HSPA Services They

have to pay for a new mobile phone

What percentage of 2G mobile phone owner would pay for

new mobile phone in order to use 3G services

Note About MCI and Irancell because of upgrading 2G systems to higher

Generations in the future their customers do not need to change their

mobile phones if they would not be interested in new Services

By Mohsen Bahrami 88

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Prepaid and Postpaid SIM Tariffs

Voice calls Tariffs

Higher Tariffs for these two Products and services would decrease

the amount of customers in the beginning of sales

Internet Access Tariff comparing with WiMax and DSL

Tariffs

One of the biggest markets that RighTel is able to penetrate is the

WiMax and DSL Usersrsquo Markets

We previously told that one of 3rsquos success factors was ADSL-

comparable price

Pricing higher than WiMax and DSL would be a risk for RighTel

entering this market

Please refer to slide No75

By Mohsen Bahrami 89

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

As we Told before 3G is all about Broadband And high

speed Connection RighTelrsquos HSPA system is able to support

2Mbps Buthellip

Would Rightel be able to support Customers with high

speed

I think the Answer is NO because of

Iranrsquos Telecommunications Infrastructure weaknesses

Governmentrsquos Policy about controlling Data transfer rate and

speed limitations (More than 128 kbps is not allowed for Home

Users)

Please refer to Slide No74

By Mohsen Bahrami 90

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

As a new operator with new services RighTel needs to

choose its marketing and advertising Methods very

carefully

Choosing a good marketing plan will help RighTel to attract

more customers and prevent paying for non-efficient

advertising methodes

By Mohsen Bahrami 91

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Governmentrsquos Policies about Internet and

Telecommunication services will affect RighTelrsquos services

1 Limitations in data Connection Speed

Would Make 3G services Unattractive

2 Bureaucracy and special Terms and conditions for some

services

The least use Service of MCI amp Irancell is MMS

3 Limitations for some services

Some services may be not accepted by Government to be offered

4 Internet Filtering and limited access for Users

About 60 of Mobile Internet Users in US Told that they Use daily

connection to Access the social Communities such as Face book

Twitter andhellip to update their pages and chat with friends

By Mohsen Bahrami 92

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76

2 0912 82000 68

3 0912 2800 892

By Mohsen Bahrami 93

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

This is one of the most high risk points which RighTel Has

to Accept it

Letrsquos Think about this

Some people wonrsquot Choose RighTel only because of its services

(mostly LBS amp Video Calls)(Slide No71 amp 78)

Which One of the Following prepaid SIM Card Numbers Would you

Choose with the same Price

A) 0912(25G) B) 0932(2G) C) 0935(25G) D) 0920(3G)

Which Number has Higher Price

1 0912 152 00 76 = 5000000

2 0912 82000 68 = 1200000

3 0912 2800 892 = 2300000

By Mohsen Bahrami 94

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Environment

Legal Environment

Underdeveloped Legal 101

Judicial Environment 102

Political Environment

International Sanctions 111

Unpredictable amp high

profile Environment112

Cultural

Potential Customersrsquo

Culture121

Interest Groups 122

Governmental Policies

Limitation of Services amp

connection Speed131

Internet Filtering ndash

Limited Access132

Bureaucracy Terms amp

conditions Contracts133

Natural Environment

Big Country Area need

more BTS sites to cover141

Population Distribution 142

By Mohsen Bahrami 95

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk External Market

Competition

Entrenched Competitors-

Other Operators151

WiMax-DSL 152

Financial Condition

Countryrsquos Financial

condition161

Banksrsquo Financial condition 162

DemandPotential Customersrsquo

Amount 171

Potential Customers

Customersrsquo Financial

condition181

Customersrsquo Interests 182

Age Distribution 183

Labor MarketResources with needed

Technical Skills191

By Mohsen Bahrami 96

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Level 0 Level 1 Level 2 Level 3 Level 4No

Project Risk Internal

Organization amp

Management

Management

Experience

Managers Experiencing

new Market

201

Organization

ExperienceYoung Organization

211

Financial Constraints

Fund needed for

Expansion of Network

Coverage

221

CommitmentsCommitted to Promises amp

Plan Plus Mission amp Vision

231

Customer

Relationship with

customers

Developing A good CRM

Plan

241

Requirement

Definitions

Defining Customersrsquo

Requirements

251

Popular ServicesOffer services customersrsquo

ask for

261

After sales Services

Quality of After sales

Services to Satisfy

Customers

271

Understanding

Customers

Paying Attention to

Customersrsquo Culture

281

Already Subscribed

Customers

Customers of Other

Operators

282

2G Mobile Phone Owners283

By Mohsen Bahrami 97

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Level 0 Level 1 Level 2 Level 3 Level 4 No

Project Risk Internal

Technology

Technology Availability

Weakness of Infrastructure 291

Network Coverage Expansion

Requirements292

Technology Limits First Experience Of 3G 301

Quality Quality of services 311

Application Lack of Experience 321

Personnel

Personnel Experience Lack of Experience 331

Personnel Skills Skilled Workers availability 341

Marketing

Pricing

Prepaid amp Postpaid SIM

Prices351

Voice Call Tariffs 352

Data Usage Tariffs and Plans 353

New Services Tariffs 354

AdvertisingChoosing the Right

Advertising Methods361

PromotionsOutstanding and Competing

Promotion plans371

By Mohsen Bahrami 98

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

LikelihoodImpact

1 2 3 4 5 6 7 8 9 10

10 122 141 121281 132 131

9 283 282 112 101 102 291 133 352 111

8 142 354 221 353

7 231 152 292

6 301 271 151

5 241 261 161162 361 201211

4 181 251 331 321 311

3 182 351 191

2 183 171 341

1 371

By Mohsen Bahrami 99

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

101 Legal Environment H MTop

ManagementAccept

102 Legal Environment H MTop

ManagementAccept

111Political

EnvironmentH H

Top

ManagementAccept

112Political

EnvironmentH M

Top

ManagementAccept

121 Cultural H MTop

ManagementAccept

122 Cultural H LTop

ManagementReduce

131Governmental

PoliciesH H

Top

ManagementReduce

132Governmental

PoliciesH H

Top

ManagementReduce

133Governmental

PoliciesH H

Top

ManagementReduce

141Natural

EnvironmentH M

Top

ManagementAccept

142Natural

EnvironmentH L

Top

ManagementAccept

151 Competition M H Marketing Dep Avoid

152 Competition H H Marketing Dep AvoidBy Mohsen Bahrami 100

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

161 Financial Condition M MTop

ManagementAccept

162 Financial Condition M MTop

ManagementTransfer

171 Demand L L Marketing Dep Accept

181 Potential Customers M L Marketing Dep Accept

182 Potential Customers L L Marketing Dep Reduce

183 Potential Customers L L Marketing Dep Accept

191 Labor Market L M HR Manager Accept

201Management

ExperienceM H

Top

ManagementReduce

211Organization

ExperienceM H

Top

ManagementReduce

221 Financial Constraints H HTop

ManagementTransfer

231 Commitments H MProject

ManagerReduce

241Relationship with

customersM L After sales Dep Accept

251Requirement

DefinitionsM M After sales Dep Accept

By Mohsen Bahrami 101

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

261 Popular Services M M After sales Dep Reduce

271 After sales Services M M After sales Dep Reduce

281Understanding

CustomersH M After sales Dep Reduce

282Already Subscribed

Customers M M Marketing Dep Accept

283Already Subscribed

Customers H L Marketing Dep Transfer

291Technology

AvailabilityH M Tech Manager Accept

292Technology

AvailabilityH H Tech Manager Reduce

301Technology

AvailabilityM L Tech Manager Transfer

311 Quality M H Tech Manager Reduce

321 Application M M Tech Manager Reduce

331 Personnel M M HR Manager Reduce

341 Personnel L M HR Manager Accept

By Mohsen Bahrami 102

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Risk Item Risk Category Risk Probability Risk Impact Risk Trend Risk Owner Risk Response

351 Pricing L L Marketing Dep Accept

352 Pricing H H Marketing Dep Avoid

353 Pricing H H Marketing Dep Avoid

354 Pricing H H Marketing Dep Reduce

361 Advertising M M Marketing Dep Transfer

371 Promotion L H Marketing Dep Accept

By Mohsen Bahrami 103

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Being 1st to Launch 3G Broadband in Iranrsquos Market

No 3G competitors 2 Years 3G Exclusivity

3G system Advantages

Market Demand For New Innovations amp services

Large Addressable Markets

Mobile Subscribers (Telecom Multimedia Internet)

Tablet Owners

WiMax amp DSL users

Youthful Population

Increasing Need for Internet Connection

By Mohsen Bahrami 104

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

First RighTel Should Try itrsquos best to expand Network Coverage more

quick than other operators did (Irancellrsquos Negative Experience)

Should not set voice callsrsquo Tariff higher than other 2 operators

Set ADSL-WiMax-Comparable Price for Its Internet Services

Flat Rate amp simple schemes and Plans For Data services

Because of lower cost of various services to be offered by 3G

RighTel should offer new services (we talked about new possible

3G services Before) as much as it can to attract various customer

groups and cover some of cultural risk

Also RighTel Should be smart Choosing Advertising and Promotional

Methods

By Mohsen Bahrami 105

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Sign contracts with mobile Devices producer companies for

Joint Sales of 3G phones Tablets 3G Modems and RighTel

SIM Cards with lower prices and promotional payment

plans slashed payment also some for free

This is a way to cover the Risk of 2G mobile phone owners Also

with Slashed payment for mobile phone it would be attractive for

new subscribers also for customers of other 2 operators to buy

RighTel SIM

By Mohsen Bahrami 106

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

There Are some default services enabled for all RighTel

Subscribers (slide No82)

Voice Calls

SMS

MMS

Video Calls

Broadband HSPA Data Services amp Internet Connection

By Mohsen Bahrami 107

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

According To Ericssonrsquos Statistics Priority of Services to

Offer to customers should be chosen by Popularity

1 Mobile TV

2 IP TV

3 News amp Weather

4 Online Music amp Video Solutions

5 Mobile Banking

6 On-Device Portals

7 Communities

8 Mobile Gaming

9 IMS Applications

10 Location Based Services (LBS)

11 Educational Services

12 Mobile Health

13 Mobile Advertising

amp so onhellip By Mohsen Bahrami 108

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

As mentioned before there are some missing Points in statics

and interview study of Ericsson these points are mostly

cultural and financial about peoplersquos interest about

services

Some important points to be studied (eg by Questionnaire)

Important Factors to Choose a SIM card and Operator

Pay for new Phone to gain new services

Default services people may dislike

Importance of Network Coverage

Other Operatorsrsquo Customers why they would by a new SIM card

hellip

By Mohsen Bahrami 109

Thank

You

By Mohsen Bahrami 110

Thank

You

By Mohsen Bahrami 110