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A BROADBAND STRATEGY TO AID ONLINE
       BUSINESS DEVELOPMENT




       CAANZ, Digital Forum, May 2009   0
A nation of people who like to do it ourselves
• Most NZ businesses are Small and Medium Enterprises
    • Over 50% employ less than 5 employees
• Almost a quarter are in the Retail industry
• No one is championing them
• And it’s hard work……                                            I Know
                                I’m Special                      Someone



  Around the
                                                         Straight Up
    Clock         It Starts
                 and Ends,            One Person,
                  With Me             Many Talents



                                                                       I Know What
                       If It Ain’t             Money                      it Looks
   There’s No        Broke, Don’t              Matters                  Like For Me
    Manual                Fix It

                                                                                      1
It’s tough at the moment
   Impact of Recession on
     Businesses (SME’s)




              Had No
                                           Reduce overheads       21%
              Impact,
               44%


                                           Increase advertising   21%

                                           Reduce staff           13%

               Mild,
             Negative
              Impact,
                                           Do nothing             17%
               45%




                Heavy
              Negative
               Impact,
                11%




 Source: Telecom Research, February 2009                                2
Telecom has significantly changed the mix



     1/3 Above the Line

                                   Delivers on
          1/3 Direct             perceptions of
                                great service and
                               business relevance




          1/3 Digital              Delivers on
                                perceptions of an
                                innovative brand



                                                    3
We have built the following digital portfolio

      The Hub       Herald          Made            Think          BizChat         Start-up
                    SB              From NZ         Small




  •    Our current portfolio grew from a desire to explore, trial and scale our online partnerships
       to develop this channel ahead of our competition.
  •    Our 08/09 brief for digital property selection was to achieve the following objective:
        • Bring the Hub proposition to market & drive uptake by showing
          NZ the future, start to change customer behaviour and educate
          on our new value proposition
  •    The above properties were selected to match the following criteria:
        •   will attract online eye-balls to our Hub,
        •   will enhance the relationship we have with SMEs to grow their business and ours,
        •   influences online behaviour and grows online literacy and usage among SMEs,
        •   provides us with an attractive media space in which to advertise more effectively.

                                                                                                  4
5
Telecom will support SME’s to participate in the
online world their customers lives in

           33 million users        8.6m
                                 registered    1 billion videos watched a day
            3 billin photos        users      13 hours of video uploaded each
      3,000 uploads per minute                             minute




 Source: Trends Report, 2009                                                    6
1. Business Broadband




                        7
2. Telecom’s Broadband Commitment




         Build a world-class access network
         enabling the delivery of broadband
     connections between 10Mbps and 20Mbps
      to 80 per cent of New Zealanders by the
                    end of 2011




                                                8
3. Telecom XT Mobile




                       9
How 3G Mobile is changing the landscape

 •   In two years most phone purchases will be Smartphones
 •   They bring rich media and internet capability
 •   We are launching 8mb camera phones, these capabilities will merge and
     create a whole ways of doing things




 •    Additionally we will see smaller portable PCs/
      browsers.
 •    With embedded 3G network technology and wifi
                                                                             10
4. Affordable Web Services
                                       46% of SME’s do
                                      not have a website




     Of the 54% with a website, the majority of them are
            looking at upgrading it in the next year
                                                           11
5. Supporting Businesses through online
   communities




                                          12
6. Putting more tools in their hands




                                       13
6. Putting more tools in their hands




                                       14
MANY THANKS




Telecom Corporation of New Zealand Limited          15

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A Broadband Strategy To Aid Online Business Development

  • 1. A BROADBAND STRATEGY TO AID ONLINE BUSINESS DEVELOPMENT CAANZ, Digital Forum, May 2009 0
  • 2. A nation of people who like to do it ourselves • Most NZ businesses are Small and Medium Enterprises • Over 50% employ less than 5 employees • Almost a quarter are in the Retail industry • No one is championing them • And it’s hard work…… I Know I’m Special Someone Around the Straight Up Clock It Starts and Ends, One Person, With Me Many Talents I Know What If It Ain’t Money it Looks There’s No Broke, Don’t Matters Like For Me Manual Fix It 1
  • 3. It’s tough at the moment Impact of Recession on Businesses (SME’s) Had No Reduce overheads 21% Impact, 44% Increase advertising 21% Reduce staff 13% Mild, Negative Impact, Do nothing 17% 45% Heavy Negative Impact, 11% Source: Telecom Research, February 2009 2
  • 4. Telecom has significantly changed the mix 1/3 Above the Line Delivers on 1/3 Direct perceptions of great service and business relevance 1/3 Digital Delivers on perceptions of an innovative brand 3
  • 5. We have built the following digital portfolio The Hub Herald Made Think BizChat Start-up SB From NZ Small • Our current portfolio grew from a desire to explore, trial and scale our online partnerships to develop this channel ahead of our competition. • Our 08/09 brief for digital property selection was to achieve the following objective: • Bring the Hub proposition to market & drive uptake by showing NZ the future, start to change customer behaviour and educate on our new value proposition • The above properties were selected to match the following criteria: • will attract online eye-balls to our Hub, • will enhance the relationship we have with SMEs to grow their business and ours, • influences online behaviour and grows online literacy and usage among SMEs, • provides us with an attractive media space in which to advertise more effectively. 4
  • 6. 5
  • 7. Telecom will support SME’s to participate in the online world their customers lives in 33 million users 8.6m registered 1 billion videos watched a day 3 billin photos users 13 hours of video uploaded each 3,000 uploads per minute minute Source: Trends Report, 2009 6
  • 9. 2. Telecom’s Broadband Commitment Build a world-class access network enabling the delivery of broadband connections between 10Mbps and 20Mbps to 80 per cent of New Zealanders by the end of 2011 8
  • 10. 3. Telecom XT Mobile 9
  • 11. How 3G Mobile is changing the landscape • In two years most phone purchases will be Smartphones • They bring rich media and internet capability • We are launching 8mb camera phones, these capabilities will merge and create a whole ways of doing things • Additionally we will see smaller portable PCs/ browsers. • With embedded 3G network technology and wifi 10
  • 12. 4. Affordable Web Services 46% of SME’s do not have a website Of the 54% with a website, the majority of them are looking at upgrading it in the next year 11
  • 13. 5. Supporting Businesses through online communities 12
  • 14. 6. Putting more tools in their hands 13
  • 15. 6. Putting more tools in their hands 14
  • 16. MANY THANKS Telecom Corporation of New Zealand Limited 15

Editor's Notes

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  3. 11
  4. Smartphone and MID data for UK from Gartner.