neuf cegetel leading alternative operator in france july 2006
TRANSCRIPT
Neuf Cegetel
Leading alternative operator in France
July 2006
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Contents
Leading alternative operator in France
Innovation lies at the heart of our strategy Some examples: Neuf TV, the BeautifulPhone, TWIN™, multiplay solutions for business customers
Strong foundations are the basis for the growth of the group
Quality is the number one priority for the group
Dynamic growth in the wholesale, business and residential markets
Leading alternative operator in France
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Who are we?
A new group created with deregulation and with the Internet age …
… which in just a few years has become a major player
- In triple play services for the residential market (Internet, IP telephony, mobile telephony, broadband TV)
- In multiplay solutions for the business market (VoIP, broadband Internet, mobile telephony)
Leading competitor to the incumbent operator in all markets (residential, business and wholesale) with:
- More than 3 million residential customers, including 1.3 million broadband customers *
- 118,000 corporate sites connected to the Neuf Cegetel network *
- 200 carrier customers
* As at the end of March 2006
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An ambitious vision for our customers
Blurring the boundaries for users Usages are identical at home, at work, or on the move Terminals are converging (fixed line and mobile phones,
PC, television set) Technologies are complementary (ADSL, GSM, WiFi,
Wimax, etc.) Contents are available from any terminal (messaging,
email, Internet, television, music, video) in any location
Our aim is to leverage the full potential of this convergence…
… and to make it easy for everyone to access a whole new world of communications and content
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A new communications era
Distance doesn’t matter anymoreNeuf Giga: a storage online service
Stay in touch with friends and familyPlanète Neuf: unlimited free telephony
Call from anywhere anytimeBeautifulPhone
Simplicity…
… and security
Simple access to Internet with Neuf Box
A security pack
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An own personal and interactive television service (TV over ADSL)
A wide range of contents at your fingertips (200 channels)
Wireless technology
Access to multimedia content (visioconferencing, information & leisure services…)
A wide range of services
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Our strategy is driven by innovation
Our decision to roll out an All-IP network more than 3 years ago
Our massive investment (€600 million) in unbundling and ADSL technology in order to be able to provide direct access to our network
The rollout of increasingly sophisticated decoders at our customers’ premises:
- Neuf Box set-top boxes for residential customers- multiplay boxes for business customers
The development of easy-to-use web-based applications managed by the core network (unified messaging, online storage of data, videophone, security, remote access, etc.)
The launch of mobile services (MVNO agreement) in 2005 (Neuf Mobile) and the first GSM-WiFi hybrid phone on the residential market (TWIN™)
Competitive advantages for offering quad play services
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Our advantages in a converging world...…
Internet
Broadband Internet
TV / videoFixed and mobile voice services
Open network
Customer relationship(Billing, customer service)
End-to-end services
All-IP network for voice, data and Internet
Expertise in CPE
Access to the end customer
IP centrex …
emails Storage SecurityGame
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Mobile operators
ISPsContent providers
Fixed telephony operators
NEUF CEGETEL’S COMPETITIVE ADVANTAGES
All the various players are targetting the same customers
Neuf Cegetel’s innovative services
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Constant innovation between 2004 and 2006, preparing for the launch of quad play services
2004 First ISP to offer broadband Internet at €14.90 per month (Feb. 04)• First ISP to launch full unbundling (May 04)• First ISP to offer a hybrid DTT/DSL TV decoder (Sept. 04)• First ISP to offer pay-as-you-go triple play - users only pay for the services they use (Nov. 2004)
2005• First operator to provide a multiplay solution for businesses (Feb. and June 2004), voice, data, mobile, 9office
• First ISP to launch real-time, live measurement of TV over ADSL with the service Neuf Hit View (Sept. 05)
• First operator to launch a full-scale pilot trial of a hybrid fixed/mobile GSM/WiFi telephone, the BeautifulPhone (Nov. 05)
2006• First ISP to offer a secure online 9 Gb data storage service, file sharing and backup facility, at affordable prices for residential customers,
Neuf Giga (Feb. 06)
• First ISP to offer a remote access service with unlimited calls to 31 countries, Neuf Talk (March 2006)
• First operator to launch a box-based IPBX and IP Centrex solution specifically designed for SMEs, 9pass (Feb. 06)
• First operator to offer the whole range of quad play services under the single Neuf brand
name (Feb. 06)
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A new service introduced nearly every month during 2005 ….
January
February
March
April
on Neuf TV
DTTV
on Neuf TV
June
Launch of 9office mobile for business
customers
July
September
November
December
and
on Neuf TV
Neuf TV interactive
and personalised
services
Unlimited international calls
2005
Free telephony over IP
Wengophone: the software to make calls anywhere in the world
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… and 2006 …
January
February
March
2 0 0 6january
february
march
april
june
TWIN ™ : 1st GSM-WiFi hybrid phone
Neuf TV HD and VOD
Wireless TV using powerline technology
Unlimited phone calls with
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Neuf TV: interactive and personalised TV
Neuf TV, a platform for digital entertainment High Definition TV Digital VCR Media center
Neuf TV, interactive television Portal for live information Programme guide Subscription to new services via the TV set Live, real-time viewing figures Communication tools (e.g. voice messaging,
videoconferencing)
Neuf TV, personalised televison RSS feeds Favourite channels
HD decoder
VOD in september 2006
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BeautifulPhone: Neuf Cegetel was the first operator in Europe to trial a hybrid GSM/WiFi telephone
The advantages of mobile telephony
In the home, the BeautifulPhone connects to the WiFi Neuf Box and automatically connects to the landline. It offers:- unlimited phone calls- true broadband (between 8 and 11 Mbit/s)- access to all multimedia content
• a truly personal device• ability to stay in
contact and have access to all your content wherever you are
make unlimited calls while at home through
the landline
Take advantage of high-speed
WiFi broadband on your mobile
Transfer multimedia
content
Since December 2005, 400 users have been testing the BeautifulPhoneThe advantages of
fixed telephony
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A revolutionary new solution for business customers: the multiplay offer
Neuf Cegetel has led the way in multiplay services, with its 9office service launched in 2005 and 9pass, launched in 2006
The multiplay solution is A Neuf Cegetel innovation designed to simplify
corporate telecommunications A converged service offering Internet, fixed
telephony, mobile telephony, intranet, security and multiple applications (remote access, messaging, etc.)
Based on a single, intelligent, secure box, connected to the Neuf Cegetel All-IP network
A scalable and simple service offering
Strong foundations are the basis for the growth of the group
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The most extensive alternative broadband network, with
the most local loop connections
45,000 kilometres of optical fibre cables
1 000 local concentrators
Coverage of nearly 70% of the population
Interconnections at all digital local exchanges
114 IP PoPs
A state-of-the-art, entirely ADSL2+ network
A network with the capacity to handle heavy traffic, open
to all operators and ISPs
1.7 million unbundled lines* (60% french unbundled
lines)
25% of the traffic in France (62 billion minutes)
The most extensive IP/MPLS infrastructure with 100
access points, which makes it possible to implement large
corporate networks
* As at the end of March 2006
An All-IP network – the leading alternative long-distance network in France
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Financial performance which places the group in a good position for 2006 and 2007
GROUP 2005
Network
Total Investment € 2,5 billion• of which LLU € 600 million
Leading alternative operator
Revenues € 1 826 M € 2 752 M + 55 %
Adjusted EBITDA (1) € 255 M € 312 M + 57 %
Adjusted Net Earnings (2) € 9 M
Number of employees 2600**
Pro forma2005
Markets March 2006
Residential
Business
Wholesale
Leading alternative operator
(1) Earnings from operations before amortisation, depreciation and other income, adjusted before provision for restructuring* Pro forma figures following the integration of Cegetel ** Excluding Jet Multimedia(2) Earnings before exceptional depreciation, retirement of assets and provision for restructuring
3 million customers, of which
1.3 million broadband customers
118,000 corporate sites connected
200 customers
Broken down by Market
> 2,000,000 broadband residential customers
> 200,000 corporate sites connected
> 20 % EBITDA/revenue margin
OBJECTIVES FOR 2007
Change from 2004
ResidentialBusinessWholesale
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A stable ownership structure
Two key shareholders SFR and Louis Dreyfus supporting the development of the group
* Artemis, PAI, Goldman Sachs, Phoenix, BC Partners
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Powerful brands
Two popular
brands with a
strong
awareness
Marque groupe
Wholesale Brand Residential Brand Business Brand
Quality is the number one priority for
the group
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Neuf Cegetel’s approach to quality
Quality is absolutely vital to recruit new customers and to reinforce their loyalty whether they are residential or corporate customers
Our objective is to guarantee the best possible service for our customers: A high level of technical, commercial and
administrative support designed to meet customers’ requirements and keep up with their changing needs
Availability and performance of both the network and the services provided
Simplicity and innovation in all the services we provide
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Quality for business and carrier customers
A division specifically dedicated to business and carrier customers The Customer Service Division: 800 employees dedicated to all
technical and administrative aspects of the customer’s day-to-day operations
A close relationship, backed up by dedicated Extranet access Customers can access quality of service indicators and check the
status of traffic in real time, as well as track their orders and the progress of fault repairs, etc.
Innovation at the service of the customer Responsive sales teams always ready to give customers advice and
to anticipate their need for new, improved services
Highly secure network monitoring setup, with two redundant NOC
ISO 9001:2000 Certification for services provided to large companies on a national scale since 2001.
Over 90% of all customer incidents are resolved proactively Key figure
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Key figures (as at end 2005)
Quality for residential customers
Background: Increasing number of customers who find themselves technologically challenged by an ever-growing number of services perceived as highly complex
Objective: To help customers every step of the way and to anticipate any problems, taking preventive action where necessary
Dedicated unit for residential customers Dedicated customer relationship unit with 2,000 customer
service advisors Follow-up of service activation, management of customer
relationship, customer loyalty, billing
80% of problems resolved with the first call
90% of calls answered in less than 50 seconds
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Residential customers: tools and indicators
Plug and play tools such as the installation kit
Portal: hundreds of factsheets, FAQs, advice, etc., available online
Technical support available through the telephone helpline or online
Technical support at customers’ home
Tools
Creation of a monthly quality benchmarkResponsiveness of the customer service teamTechnical supportDelivery times
Indicators measuring the performance of the broadband and VoIP service: Neuf and Cegetel topped the IP Label/01 Net rankings for the last 3 months of 2005
Indicators
Dynamic growth in the wholesale, business
and residential markets
On the wholesale marketSupporting the development of other players on the market
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Neuf Cegetel, the traditional partner of carriers and ISPs
Leading alternative operator on the wholesale market
Leading alternative operator in the provision of unbundled DSL access lines, transport and collection of voice and data and termination of calls, to other ISP and carriers
Major player in international trading
200 national and international carriers, including SFR, using the Neuf Cegetel network
Revenues of €1,106 million*
40 billion minutes of voice traffic carried *
More than 1 million DSL access lines rolled out for third-party operators
* Pro forma figures following the integration of CegetelFigures as at the end of 2005
Highlights
Le Numéro, a Wholesale Division customer
On the business marketSimplifying corporate telecommunications
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Highlights
Leading alternative operator Revenues of €908 million*
Leading alternative operator on the IP VPN market 118,000 corporate sites connected to the Neuf Cegetel
network (Q1 2006) More than 40,000 new sites connected in 2005
First to launch a multiplay solution for businesses with 2 dedicated offers 9pass and 9office
Largest sales force, after that of the incumbent operator, 20 agencies located throughout France
A strong footing in the public sector with 1,600 customers (ministries, government departments and local authorities)
ISO 9001:2000 certification
* Pro forma figures following the integration of CegetelFigures as at the end of 2005, unless otherwise specified
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Principal ways in which services will be improved
Enhancing Mobile ServicesProvide remote employees with broadband solutions (3G, WiFi, etc.)
Multiplay solutionsMake the most of a single voice/data network solution simpler to operate and offering a high level of qualityValue added services:Interactive voice services, push mail, IPBX, IP Centrex, videoconferencing and data storage
Moving over to high-speed broadbandExpand bandwidth capacity at corporate sites
Businesses
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9pass: multiplay solution for small companies (3 to 19 employees)
A solution designed in partnership with INTEL and MICROSOFT and combining the best of the technologies to offer IPBX functions, IP telephony, Internet access and mobile telephony.
• A sophisticated “Box”,
developed in-house by Neuf
Cegetel (integrated IPBX, IP
Centrex, Proxy SIP, WiFi, CPL,
router switch, fixed IP, HD
Internet)
• Web-based services (unified
messaging and Outlook Webmail,
Softphone)
• Mobility and remote access
solutions
• A single invoice• A single extranet through which
users can manage all their
services• A single customer service
department for all services
(administrative and technical)
SIMPLER MANAGEMENT OF SERVICESINNOVATION
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9office: a multiplay solution for SMEs
The first multiplay solution in France, launched in March 2005
A modular service offering: voice service with unlimited local and national calls, broadband Internet and mobile telephony
Nationwide coverage
Simple implementation and real-time control and management through a dedicated extranet
Cost savings and scalability provided by the solution
A constantly developing service Broadband intranet and remote access solutions
(during 2006) to provide a comprehensive, scalable solution comprising fixed/mobile telephony, data and Internet services
IAD permettant l’accès à l’ensemble des services sur le
même lien xDSL
Voice over IP
Line rental and unlimited calls
+
Value Added Services
IPBXSecurityUnified messagingVideoconferencingFax-to-emailWeb configuration
Access line+ Internet/intranet
Remote Access Service
Mobile
IAD providing access to all the services on the same xDSL link
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9iPnet for rolling out large networks
9iPnet, the latest generation IP VPN service The fastest SDSL (2 Mbit/s) in France at competitive prices* Different levels of service and a wide range of features meeting all our
customers’ requirements Dedicated day-to-day support, operational tools and the benefit of Neuf
Cegetel’s expertise in rolling out the interconnection of multiple sites
118,000 corporate sites connected directly to the Neuf
Cegetel network (Q1 2006)More than 40,000 new sites connected in 2005
* At the end of 2005
Leading alternative operator on the IP VPN network
*subject to technical feasibility
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Business customers in all sectors of the economy
3 Suisses, AGF, AP-HP, Banque Populaire, BP, Casino, Compagnie des Wagons-Lits,
DaimlerChrysler, Dassault Systèmes, France Télévisions, Generali, Canal+, Groupe
Caisse d’Epargne, Heineken, La Poste, Manpower, National Citer, Norauto, Oracle
France, PSA Peugeot Citroën, Renault, Sernam, SNCF, The Phone House, UGC, …
On the residential market
Innovations designed to benefit as many people as possible
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Highlights
Revenues of € 738 million (1)
More than 3 million customers (Q1 2006) including 1.3 million broadband customers
(Q1 2006)
13% share of the broadband market
One of the leading ISPs on the market 157,000 new broadband customers (Q1
2006)
Figures at the end of 2005 unless otherwise specified(1) Pro forma figures following the integration of Cegetel(2) Source: ARCEP, broadband Observatory 31/12/05 and Neuf Cegetel
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Unlimited local and national calls: €9 per month
Telephone line rental (full unbundling): €6 per monthNumber portability Neuf TalkUnlimited international calls (31 countries)
Neuf TV and associated services: €6 per month
Additional, simple and useful services
Success of à la carte services...
Neuf Giga for storing and sharing data
Security package to surf the Internet
Planète Neuf for unlimited free calls between Neuf subscribers
Broadband up to 20 Mbit/s = € 14.90 per month
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April 2006: launch of Neuf Mobile, a mobile service with the benefit of inclusive unlimited calls
Neuf Mobile is a MVNO in partnership with SFR
9 price plans (calls + SMS) starting at €21.90 per month for 1½ hours talk time
As an additional benefit, once they have used up their inclusive talk time, customers can choose between the options of either continued free unlimited calls to other Neuf Mobile customers or continued free unlimited text messages to all operators
Free and unlimited calls between Neuf mobiles and the Neuf fixed line
The slimmest mobile phone on the market
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The TWIN™: the first GSM-WiFi hybrid telephone on the residential market
Developed on the basis of the results of the BeautifulPhone trial
Affordable fixed-mobile convergence for consumers The phone is provided at a cost of €199 and can
use any mobile operator network The phone is provided at a cost of €1 for Neuf
customers
Demonstrable savings: between 10 and 30% on mobile expenditure Calls priced the same as fixed line calls: unlimited
telephone calls for customers with a fully unbundled service connected via the Neuf Box or via a Neuf WiFi community access point (in the main railway stations, 127 Adael Wireless hotspots and 50,000 FON hotspots)
Outside WiFi coverage, normal GSM tariffs will apply
Just one handset for all fixed and mobile callsNo need to change your habits
A mobile phone number
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Thank you
Appendices
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Executive Committee of the Neuf Cegetel group
Chairman and Chief Executive Officer
Jacques VeyratMichel Paulin
Chairman and Chief Executive Officer
Jacques VeyratMichel PaulinCompany Secretary
Philippe de Cuverville
Company SecretaryPhilippe de Cuverville
Residential Division Xavier Gandillot
Residential Division Xavier Gandillot
Business DivisionPhilippe Pélisson-Corlieu
Business DivisionPhilippe Pélisson-Corlieu
SME Division Jérémie Manigne
SME Division Jérémie Manigne
Wholesale Division Paul Zenou
Wholesale Division Paul Zenou
Finance & AdministrationDivision
Fabrice Dumonteil
Finance & AdministrationDivision
Fabrice DumonteilNetwork & Marketing Division
François Paulus
Network & Marketing DivisionFrançois Paulus
Customer Service Division Nicolas Maguin
Customer Service Division Nicolas Maguin
Information Systems DivisionEric Ioos
Information Systems DivisionEric Ioos
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The principal service offerings for business customers
IP-VPN Solution This solution is used to provide simple and secure broadband interconnections for your users in France and abroad. Support and advice and a modular solution with a range of protection, hosting and mobility options
A national and international bandwidth service offering, based on the provision of multiprotocol leased lines.
Point to point connections
Broadband Internet Services
Offering every company the broadband Internet service which best suits its needs
Call Centre Solutions
A complete range of freephone, shared cost and shared revenue numbers, which are supported by advanced call management features.
Telephony Services For all your local, national and international outgoing calls, as well as calls to mobiles.
multiplay Solution
The first multiplay solution for businesses which combines the telephone line rental, fixed and mobile telephony and broadband Internet access. It is a comprehensive, modular and scalable solution, serving all your company’s sites and supported by the Neuf Cegetel All-IP network.