Presentation: Home Broadband Experience Index

Home Broadband Experience Index, a methodology to improve a country's customer's satisfaction, maximizing the broadband experience resulting to a high-quality digital life. It aims also to connect and create opportunites for market and providers. This is my persentation at MWC in Barcelona in 2019.

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IHS Markit : Home Broadband Experience Index
26 February 2019, Mobile World Congress, Barcelona
Elias Aravantinos, Senior Analyst, Operators
[email protected]
[email protected]
MediaVillagePressMeeting–ConferenceRoom4

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Technology
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Manufacturing
Technology
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Mobile & Telecom
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•Mobile networks
•Voice & data networks
•Service provider Broadband & video
•Managed services
Mobile, Consumer
& Connected Devices
•Mobile devices
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Power & Energy
Technology
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Information, insight, and analytics across critical technology markets
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About us

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•400 TMT analysts globally, including 40 media and operator analysts in offices across the world
Media analysts: global team supporting comprehensive product set

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Home Broadband Experience Index Project
... improving customer satisfaction and maximizing the
broadband experience
5

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Overall average
Satisfactionwithoverallservice 80%
Customer with a reason to complain 15%
Average call waiting time (mm:ss) 1:40
Satisfaction with complaints handling 50%
Source: Ofcom Customer Satisfaction Tracker survey 2018
✓Limited selection of service packagesto match user needs.
✓Long waiting subscription process.
✓Peak hour speed downgrades affecting reliability and availability.
✓Slow response to customer complaints.
80%
85%
90%
95%
100%
December 2017 June 2018 September 2018 December 2018
Broadband connections completed
in agreed timeframes (%)
What’s the issue with Home Broadband Service?
There are several issues and challenges when providers install a new home broadband connection all over the world

Source: NBN Wholesale Market Indicators Report (published February 2019)

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10,6
107,6
212,7
45,4
60,5
10,3
102,5
193,6
44,3
59,3
10,1
99,7
184,3
43,2
58,1
0
50
100
150
200
250
ADSL2+ Up to 100Mpbs
/cable
Up to 200Mbps
/cable
Up to 52Mbps/FTTCUp to 76Mbps/FTTC
Average Download Speed (Mbps)
Ofcom study: UK Home Broadband Performance
(selected metrics)
Maximum speed 24 hours coverage8pm - 10pm
8pm - 10pm as a proportion of the advertising maximum speed
100% 92% 88% 76%59%
83,30%
79,90%
85,60%
0,00%
20,00%
40,00%
60,00%
80,00%
100,00%
Optus Telstra TPG
ACCC study: Australian operators % performance
over advertised download speeds
(Prime time: 7pm - 11pm)
% points of change from the previous quarter measurement
What’s the issue with Home Broadband Service? Cont’
…home broadband service performance varies during peak time!
Source: Ofcom: “UK home broadband performance” Report (May 2018) Source: ACCC: “Measuring Broadband Australia” Report, (published March 2018)

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8A dynamic home broadband market keeps growing
0
20
40
60
80
100
20032004200520062007200820092010201120122013201420152016201720182019202020212022
Africa and Middle East Asia Pacific
Central and Eastern Europe North America
South and Central America Western Europe
Source: IHS Markit © 2019 IHS Markit
Broadband Households per 100 Households Per Region
91%
87%
79%
53%
38%
35%
14%
10%
3%
Access to connected devices by category
Source: IHS Markit © 2019 IHS Markit
Percentage of responses
IHS Markit data shows that North America will continue to lead fixed broadband
penetration, followed by Western Europe, and Central and Eastern Europe.

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✓What is the role of the marketing channels?
✓How long does it take to “light up” a service?
✓What is the service satisfaction?
✓How fast is really the network?
✓Is it really effective the customer care?
Marketing
Impact
Service
Provisioning
Service
Perception
Network
Performance
Customer
Care
Service
Lifecycle
…but Service Providers need to respond quickly
Services Classification
There are several issues and challenges when providers install a new home broadband connection all over the world

Improve each service stage
“By classifying and improving each service stage, Service Providers could increase business revenues. “

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•The marketing
experience is directly
related to consumer’s
buying decision
•Effective marketing
should engage
seamlessly with multiple
integrated channels
•Marketing messages
should be clear with a
defined target
Marketing impact
Define 5-categories in Service Provider’s lifecycle
•Service provisioning
needs the right
organizational readiness
•A plug and play
broadband service is a
great first step to
impress
•Instantly dispatch a new
connectivity request and
meet the agreed
installation time
Service Provisioning
•Quality-of-Experience
(QoE) is one of the most
important measures of
customers’ actual
satisfaction with their
service
•Consumers carry out
their own service “tests”
using software
applications
•Operators to ‘embrace &
support users’ needs to
win new business
Service Perception
•High speeds and
reliable service are still
critical
•Gigabit - and higher -
services are increasingly
being offered by
operators around the
world to a gigabit society
•Online gaming quality
perception, Cloud VR,
4K are driving demand
for reliable and high-
speed services
Network Performance
•Customer care is the
key to enhance user’s
loyalty and best
experience
•Effective support can
come at a considerable
cost upgrading call
centers
•‘a fast’ response is key
to loyalty meeting
contract’s fundamentals
Customer Care

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What are the benefits to operators when offering premium service
•2018:surpassed 1 million fixed broadband customers
since 2016
•Of the total fixed broadband customers, close to 67%
correspond to fiber optic customers.
•1H18, the company delivered service revenues of
€554M (+17% year over year).
•Yoigo offers packages up to 1Gbps).
•It scores highly on customer support metrics and
consequently delivers service satisfaction.
MÁSMÓVIL Group
•Broadband subscriptions rose 9.8% y/y (outpacing
market growth of 9.1% y/y) to 141 Million fixed
broadband connections
•Penetration of triple-play packages comprising wireline
broadband, mobile and e-Surfing HD services (IPTV)
increased by 13 percentage points
•200Mbps or 500Mbps package in various cities
•Fixed broadband churn of 1.1%, 0.1 percentage points
lower than a year earlier.
•Resolve customer’s request within a day
China Telecom
Premium broadband services results in growing business revenues
P

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12Home Broadband Experience Index – The Concept
How to calculate the Index: Summing up all the subindexes via survey’s data collection

Marketing
Impact
Service
Provisioning
Service
Perception
Network
Performance
Customer
Care
Consumer
awareness
Activation cost
Content
quality
Availability
First
response
time
Platforms
Installation
ease
Add-ons Security
Service
effectiveness
Cross-selling
/ upselling
Installation
time
Advanced
applications
Speed
Frequency of
contacts
NPS rating
Missed
appointments
Basic
package
services
ReliabilityService rating
Suggested Metrics
✓What do you primarily use your home
broadband for?
✓Why did you switch to your current
service provider?
✓Are you happy with the speed of your
service?
✓How do you rate the customer service
effectiveness?
✓How did you hear about your service
provider's offer?
✓Would you pay additional fees for an
upgraded customer service?
Survey: Sample Questions
Home Broadband Experience
Index Formula

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IHS Markit will rank and group
the countries based on
experience’s index score
IHS Markit: to conduct survey in
selected countries
Each answer falls between 0 and 2 based
on its weighting with 2 to be the maximum
value assigned to an excellent service
Survey
0
0,4
0,8
1,2
1,6
2
Marketing
Impact
Service
Provisioning
Service
Perception
Network
Performance
Customer Care
Home Broadband Experience
Services
5-Star 4-Star 3-Star
5-star
•85-100%
4-star
•71-84%
3-star
•55-70%
“The Index is expected to perform differently in each country as various marketing techniques, broadband
penetration numbers and finally expectations from customer care are to be anticipated to attract and retain
new subscribers. “
Next Project’s Phase
Based on the scoring IHS Markit defines five, four and three -star fixed home broadband services in selected countries

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It is in service providers’ interest to understand and
consider the Home Broadband Experience Index and
follow a “home-centric” business model of reliable
and effective broadband services. By achieving and
offering the maximum experience across all
scrutinized categories describing the broadband
consumer’s journey, service providers can control
churn and more efficiently grow their service
revenues.
A premium servie with
the best experience as a
significant advantage to
societies
Conclusions / Key messages
Premium Broadband Experience
Focusing on the broadband
experience paves the way towards a
frictionless, highly connected Gigabit
society
Building a premium broadband
service will allow digital citizens to
enjoy a high-quality digital life
Service Providers to respond to
consumer’s individual requirements
optimizing experience
‘End-to-end service consciousness’
should be part of each lifecycle’s
stage
A network standard that
encompasses a fiber-based solution
and a premium WiFi solution to
satisfy consumer’s needs
A Home Broadband Experience
Index could help providers identify
opportunities for significant
improvements across the end-user
lifecycle’s stages

15. IHS Markit Customer Care
[email protected]
Americas:+1 800 IHS CARE ([phone])
Europe, Middle East, and Africa: [phone]
Asia and the Pacific Rim: [phone]
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Contact us
Elias Aravantinos
Senior Analyst, Operators
[email protected]