Welcome to sunrise

Discussing the implementation and deployment of sunrise‘s prepaid roaming services

Thomas Lüscher

29.09.2004

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Agenda

• Introduction sunrise & Swiss market

• Roadmap roaming services

• Pricing & impact of single services

Terminated roaming

USSD callback

SMS roaming

CAMEL roaming

GPRS / MMS roaming

• Summary

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sunrise

• sunrise is created from sunrise and diAx in 2001

• 100% owned by the TDC Group („TDC Switzerland AG“)

• First independent full service provider (mobile, fixed line, Internet) in Switzerland

• Number 2 in Swiss market

• Customer base of 2.611 million

Mobile: 1’323’000

Fixed network: 808‘000

Internet (dial-up): 359‘000

ADSL: 121‘000

• Member of the “starmap mobile alliance”

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Swiss market

• Penetration of 80%+

• Prepaid market share ~42% sunrise above average

Best value for money offering -> „most attractive prepaid product“

Comprehensive services also for prepaid incl. roaming early on

Geographical situation

• Relatively small country

• Bordering to Germany, Austria, France and Italy

Swiss travel abroad often for vacation, but also for short-trips (i.e. shopping)

Roaming is an important factor

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sunrise pronto roaming services

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The start of sunrise pronto roaming

Goal: offer prepaid roaming for summer season 2000

Not quite made it:

Only mobile terminated calls (CDR based)

USSD-callback solution not ready/stable in time

USSD-callback roaming launched in September 2000 as the second operator in Switzerland

Not the start we had hoped for; roaming revenues made up only ~2.5% of total prepaid revenues in July 2000

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SMS roaming – immediate huge success

• Idea to implementation only a few weeks

• Use interworking CDRs

• Flat rate: CHF 0.80 / SMS (~ 0.50 Euro)

First operator in Switzerland to introduce SMS roaming

Hardly any communication / advertisement

Immediately made up for almost half of sunrise pronto roaming revenue

Definitely one of the projects with the shortest payback ever!

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Summer 2001

• First time roaming really made a difference

9.3% of total prepaid revenue in July 2001

• Despite efforts, customers not so familiar with USSD-callback

Only 16% of total roaming revenue

Ratio terminated vs. callback ~ 4:1

USSD-callback

16%

SMS roaming

48%

terminated calls36%

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Introduction of CAMEL

• This time we made it for summer roaming season (launch in June 02) -> sunrise pronto direct roaming

• One competitor basically launched at the same time

• Launch with neighbouring countries (France, Germany, Austria, Italy) and Spain

• USSD-callback still in parallel, but in countries, where we had at least one CAMEL-partner, sunrise pronto customers could only log on to that network

• At the same time meant also introduction of realtime rating in our own network (all circuit switched calls)

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Chosen solution

• CAMEL Phase 1 solution without home routing

Wider support of CAMEL Phase 1 (than 2) around Europe

Didn’t see much advantages of going to Phase 2

However sunrise supports Phase 1 & 2 on the inbound side

Prepaid billing system

SCP

VMSC MSC1

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HPLMN

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Prepaid subscribercalled party

Allocate time slots and „renew“, if used up (3,4 / 8,9)

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Pricing model

New pricing model for all roaming calls

• 60s intervals, as well on the outgoing, as incoming calls side

• Formed three tariff zones

Europe 1 / Europe 2 / rest of the world

Europe 1 in line with postpaid offeringeurozone (flat rate in all countriesincluded in eurozone)

sunriseeurozone

customer in Europe 1 Europe 2 ROW

receiving calls CHF 1.- CHF 2.- CHF 3.-

calls home & Europe CHF 2.- CHF 3.- CHF 4.-

calls to ROW CHF 4.- CHF 5.- CHF 6.-

SMS CHF 0.80 CHF 0.80 CHF 0.80Exchange rate: 1 Euro = ~CHF 1.55

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First results (July 2002)

• Outgoing roaming started to make a difference

• SMS-usage stayed very high

• Increased revenue also on the terminated side

• 14.3% of total revenue in July 2002

Ratio terminatedvs. outgoing ~ 2:1

60% increase ofroaming spendingon per customerbasis

terminated calls36%

CAMEL outgoing

22%

USSD-callback

6%

SMS roaming

41%

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GRPS roaming

Introduced GPRS-roaming almost „unintentionally“:

In first phase only foreseen for postpaid

Realized, that it would almost be harder to block prepaid customers from using GPRS abroad, than to allow them to use it (on HLR level)

Quick and flexible CDR-solution implemented (supposed to be intermediate solution, but we still have it)

All sessions through sunrise APN and thus CDRs produced (SGSN-IP address used to identify location of GPRS data connection)

SGSN GGSN

Mediation

WAP GW

HPLMNVPLMN Prepaid system

CDRs

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GPRS / MMS pricing

• With the introduction of GPRS-roaming, we basically had the solution for MMS roaming in place, once MMS was

launched

• GPRS/MMS roaming only with a limited number of roaming partners in the beginning

• Flat rate for GPRS/MMS roamingMMS receiving MMS CHF 2.50

sending MMS CHF 3.-

WAP access setup fee CHF 2.50

Per kilobyte CHF 0.08

Internet access setup fee CHF 2.50

Per kilobyte CHF 0.04

Exchange rate: 1 Euro = ~CHF 1.55

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Summer 2003

• More CAMEL roaming partners – most of Western Europe covered

• Again increase in roaming revenue – mainly due to increase in outgoing calls / SMS

• GPRS / MMS roaming still very low usage

Ratio terminatedvs. outgoing ~ 1.7:1

90% increase ofroaming spendingon per customerbasis since 2001

GPRS/MMS0.3% terminated

calls26%

CAMEL outgoing

30%

USSD-callback

2%

SMS roaming

41%

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Situation today (2004)

• Roaming is a key part of the sunrise pronto offering

• Also prepaid is integrated part of roaming campaigns

• Large footprint of direct roaming

More than 40 countries and over 60 operators

Including almost all Europe, but also i.e. Thailand, some Carribean islands, Egypt or Tunisia ...

i.e. 2004: MMS contest

send your best holiday picture (published on Internet) and win travel vouchers worth several thousand Euro

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July 2004

• Further increase of roaming usage, mainly due to more outgoing

calls

• USSD-callback usage minimal

• GPRS/MMS usage „noticeable“ for the first time

Total roaming revenuemore than 15% of total prepaid revenue

Split terminatedvs. outgoing ~ 1.5:1

GPRS/MMS2%

terminated calls24%

CAMEL outgoing

33%

USSD-callback

1%

SMS roaming

40%

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Development over the years

• CAMEL roaming made a huge difference, not only in the summer months, but during the whole year (roaming still very seasonal)

• Roaming offers helped to place sunrise pronto as the most attractive prepaid offer in Switzerland (complete offering)

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Key learnings

• Roaming can make a difference and significantly increase prepaid revenue

• Keep it as simple as possible for your customers

SMS roaming immediate success (use as in home network)

USSD-callback maybe already too complex

direct roaming (CAMEL) well accepted; only enabling roaming with supporting operators per country helped

• SMS and direct roaming are key to success

• GPRS/MMS might be in the future, but not yet

• Issue: roaming rather expensive -> customers run out of money

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Outlook

• Improve / find new ways of offering refill possibilities also when abroad – sunrise offers credit card refill, but not very popular

• More solid / flexible charging solution for packet switched data when roaming – further growth is expected (UMTS

roaming?!)

• Review pricing on the GPRS / MMS side – rather expensive and not so attractive for customers at the moment

• Further improve communication of roaming services to customers (welcome SMS, SMS bon voyage, ...)

sunrise will stay committed to offer also its prepaid customers complete and easy to use roaming services

Thank you