1. Marketing for Telecommunications Operators ProjectsSergio CruzesMBA in Project Management and Technological Innovation FIPE USPMsC in Electrical Engineering EESC USPPMP certified

2. Table of ContentsTable of Contents ................................................................................................................ 21. INTRODUCTION ...................................................................................................... 32. CONTEXT .................................................................................................................. 43. END USERS ............................................................................................................... 54. BROADBAND OFFERINGS .................................................................................... 75. MACRO ENVIRONMENT........................................................................................ 8 5.1 Social and Cultural environment .............................................................................. 8 5.2 Demographic environment........................................................................................ 8 5.3 Economic environment ............................................................................................. 9 5.4 Technological environment .................................................................................... 9 5.4 Political environment ............................................................................................ 116. INTERNAL MICRO ENVIRONMENT .................................................................. 127. KEY SUCCESSES FACTORS ................................................................................ 138. BUSINESS SUMMARY FRAMEWORK ............................................................... 149. BUSINESS CONCEPTION ..................................................................................... 15 9.1 Business Plan Definition ......................................................................................... 15 9.2 Strategic Planning ................................................................................................... 16 9.3 Purpose of the Organization: Vision, Mission, Believes & Values, and Objectives ....................................................................................................................................... 18 9.4 Generic Competitive Strategies .............................................................................. 19 9.5 Marketing Strategy.................................................................................................. 20 9.5.1 Marketing Plan Definition ............................................................................... 20 9.5.2 Market Segmentation ....................................................................................... 21 9.5.3 Marketing Mix ................................................................................................. 2310. REFERENCES ...................................................................................................... 25

3. Acronyms and Abbreviations2G Second-generation mobile network technology3G Third-generation mobile network technologyAAA Authorization, Authentication and AccountingADSL/DSL Asymmetric Digital Subscriber LineARPU Average Revenue per UserBTS Base Transceiver StationBWA Broadband Wireless AccessCAGR Compound Average Growth RateCapex Capital ExpenditureCDMA Code Division Multiple AccessCPE Customer Premises EquipmentCRM Customer Relationship ManagementDOCSIS Data Over Cable Service Interface Specification (Cable Modem)DSL Digital Subscriber LineEVDO Evolution Data OnlyFTTH Fiber to the HomeGbps Gigabits per secondGSM Global System for Mobile CommunicationsHSPA High-Speed Packet AccessIBGE Brazilian Institute of Geographic and StatisticsIEEE Institute of Electrical and Electronics EngineersIMS IP Multimedia SubsystemIP Internet ProtocolIPC Potential Index of ConsumptionIPTV Internet Protocol TelevisionLTE Long Term EvolutionMIMO Multiple-Input Multiple-OutputMMDS Multichannel, Multipoint Distribution SystemOFDM Orthogonal Frequency Division MultiplexingOPEX Expended CostsPC Personal ComputerPMP Price per Megahertz per PopQoS Quality of ServiceRAN Radio Access NetworkSLA Service Level AgreementVDSL Very High Bit-rate Digital Subscriber LineVoIP Voice over IPxDSL any type of DSLWBS Work Breakdown StructureWiMAX Worldwide Interoperability for Microwave Access

4. 1. INTRODUCTION This job consists in providing the factors that influence the marketingactivities concerned with new projects in Telecommunications Operators. It isthe marketing related to the strategic planning of the organization. The study begins with the analysis of the micro-environment followed bymacro-environment analysis. Other factor to be analyzed is the technologicalenvironment that concerns with the availability of user devices.. On the legal-political environment, aspects such as spectrum availability and restrictionsshould be considered. Keywords: Marketing Strategic Plan 2. CONTEXT The service growing rate of circuit switching telephone systems is startingto decrease in Brazil and Latin America. So, Telcos are investing in fixed broadband access technologies which areshowing high growing rates. Also, Cellular operators are also noticing a decreasing on their growingrates for voice services. At the same it is very difficult to provide differentiatedvoice services. The price competition is one main drivers of the voice revenuestagnation. For most cellular operators in the world, the mobile data revenue hasreached more than 30% of the service revenues while in Brazil there is still roomto grow.

5. 3. END USERS For the end-user media consumer, the open TV main content provider inBrazil. However it is beginning a trend to search for different forms to accesscontent , entertainment or information, at devices such as PCs and mobiles. The group of users that is constantly searching for information on differentchannels other than TV, is composed of persons under 35-year old (Accenturestudy published at Converge Magazine in 13/April/2009). A study done by Yankee Group and Ericsson shows that the 3G user inBrazil is predominantly young (Teletime news, 29/July/2009). The social classes in Brazil are distributed as per Exhibit 5.1 (source:Associao Brasileira de Pesquisas, 2009) Family average income per month (Reals) 16000 14400 14000 12000 10000 8100 8000 6000 4600 4000 2300 1400 2000 950 620 440 0 A1 A2 B1 B2 C1 C2 D E Exhibit 3.1 Social classes in Brazil and family income per month Based on a report of the Exame magazine (08/April/2009) about theconsumption of the Brazilian families and IBGE information, it can be derived thatthe social classes in Brazil are distributed as per Exhibit 5.2.

6. 30,00% 25,40% 25,00% 21,80% 20,70% 20,00% 15,70% 15,00% Percentagem Brasil 8,90% 10,00% 4,10% 5,00% 2,60% 0,90% 0,00% A1 A2 B1 B2 C1 C2 D E Exhibit 3.2 Social classes percentage in Brazil In order to better estimate the total potential users based on income salary,the table 5.1 simplifies the number of classes. The total potential number in Brazilis 15,789 thousand users. Percentage of People Wireless the Brazilian between 20 - internet Potential Classes population 30 years old (potential) users A and B 29.60% 11,248 85% 9,560.8 C 42.50% 16,150 30% 4,845 D and E 28.00% 10,640 13% 1,383.2 Table 3.1 Potential internet users in Brazil based on the income salary

7. 4. BROADBAND OFFERINGS The cable modem access reaches only 184 cities representing 74 millionpeople, or 40% of Brazilian population which represents 53% of total Brazilianconsumption in accordance to the IPC/Target. While the broadband competitiveness is so tough, the end user has fewchoices. The leader subscription service is called Speedy (from Telefonica and itis present only on the state of So Paulo). The exhibit 4.1 depicts the main fixed broadband offerings in 2009. Fixed Broadband Operators (in thousand subscribers) 2460 2500 2120 2000 1920 1762 1500 1320 1000 500 402 80 0 Telefonica NET Oi Brasil Telecom CTBC GVT TVA Exhibit 4.1 Fixed Broadband Operators in 2009 An analysis done by IDC in July 2008 (published atwww.puccamp.br/servicos em 06/07/2009), provides the broadband accessprices in Brazil. The average price of minimum throughput (128 Kbps) was US$30. In Argentina, 512Kbps was US$ 27.05.

8. 5. MACRO ENVIRONMENT As per KOTLER (1995, p. 49), the macro environment consists of theforces that affect the whole micro environment: demographic, economic,technological, natural, political and cultural. 5.1 Social and Cultural environment The cultural characteristics of the areas to be serviced by a wirelessbroadband business are very non-homogeneous. The service should besegmented during the implementation phase only. The final goal is to provide aservice that is not focused for specific population profiles . 5.2 Demographic environment The demographic environment is a very important force since it consists ofthe population profile in terms of its age, ethnics, immigration, education level,lifestyle, etc.. As these trends are out of control of the company, it is important toanticipate the movement of the trends, to develop scenarios and to provide aconstant adjustment on the market strategies. The observation of the demographic environment trends allow to developgeographic, ethnics, income salary and age segmentation strategies. The geographic segmentation is extremely important for aTelecommunication Operator deployment project. It allows identifying areas withgreat growth potential and low level of competition. It is on these areas that thedeployment should start.

9. 5.3 Economic environment The main implications of future changes on the economic environment arerelated to the demand. The demand is very sensitive to the variations of theeconomic activity and any well defined plan may fail if it ignores the influence ofthe economic environment. Brazil, which has the fifth greater population and the eighth consumermarket in the world, it is becoming one of the best options for business in theworld. The internal market growth and the continuous class C expansion haveboosted the consumption in Brazil. As per magazine Exame (08/April/2009), the Class C spends its incomesalary as: 21% at commercial establishments (supermarket, drugstores) 11% with transport (bus, subway, gasoline, taxi) 10% with food (restaurant, groceries, snack bars) 8% with entertainment (gifts, sightseeing, internet) 7% with basic services (telephone, light, water, house rent) Based on this scenario, it is expected a high demand of broadband services on the next years. 5.4 Technological environment At highly competitive segments, the technology is a key determinant factorfor the business continuity. The innovations which aggregate product andservice value affect the end user perception, creating a maximization of the costbenefit and an increase on the competitive advantage.

10. The main deployed technological solutions to offer broadband services inBrazil is the UMTS with its HSPA platform. Other mobile technologies that offerwireless data are GPRS and EDGE from GSM networks and 1xRTT and1xEVDO from CDMA networks. MMDS operators also offer wireless internet(radio connection). The mobile broadband HSPA is the dominant technology. If we considerthe UMTS cellular phones and 3G data devices, they represent 96% of 3Gaccesses in Brazil (source: Teleco). Regard the fixed telephone market, the operators are updating their ADSLnetworks with ADSL2, ADSL2+, VDSL and also are beginning to deploy theFTTH technology. The Exhibit 5.1 depicts a performance comparison among differenttechnologies Peak ThrouputAccess Technology Mode Downlink ReachWiMAX* 3,5 GHz - 5 MHz