TDC Group Annual Report 2011(6,4MB) - TDC Annual Report 2011

Performance in 2011
Revenue
2011 was characterised by pressure across most product
lines, especially in the residential mobile market, where the
price war continued. Compared with 2010, revenue declined
by 1.2%.
Landline telephony
Despite the continuing migration from landline telephony to
mobile only, Consumer managed to reduce its line loss
through improved intake of, and migration to, HomeDuo
and HomeTrio. Besides churn reduction, Consumer’s multiplay
strategy opens up growth opportunities and offers
scope for a unique brand position.
The continued market size decline resulted in a revenue
decrease of 14.7% compared with 2010.
Mobility services
The mobile market is saturated and the intense price
competition continued in 2011, which drove down the total
market value within mobility services. Combined with the
impact from MTR (both SMS and voice) and roaming
regulation, this led to a 5.9% decrease in blended ARPU
including IC, and a revenue decline of 3.7% compared with
2010.
Revenue split, Consumer
Internet and
network
16.9%
Terminal
equipment,
etc.
7.0%
Other
8.4%
Mobility
services
46.4%
Landline
telephony
21.3%
TDC Group Annual Report 2011
In the no frills market, Consumer is seeking to continue
growing its market share and acquired Onfone in May 2011.
The acquisition strengthened the multi-brand strategy and
supports Consumer’s broad and diversified brand portfolio.
By September, all subscribers were migrated to the TDC
network with very limited churn, and Onfone continued to
use its strong market momentum to gain customers in H2
2011.
The Onfone acquisition and the new launches (of TDC Rate
and the new mobile portfolio) resulted in a 7.6% increase in
mobile voice RGUs, which partly compensated for the
negative effects of the price war and regulation.
Internet and network
The market for internet and network was affected by strong
competition in 2011, including increased competition from
utilities, which resulted in increased bandwidth at
unchanged or even reduced prices as well as significant
competition for broadband add-on services.
These circumstances led to decreases in both ARPU and
RGUs, which affected revenue negatively. The migration
from legacy broadband to HomeDuo or HomeTrio also had
a negative impact on the xDSL ARPU. On the positive side,
Fullrate succeeded in gaining more RGUs as a result of
increased marketing and competitive prices.
As a result, Consumer’s internet and network revenue
declined by 3.4% compared with 2010.
TV
In an effort to increase value differentiation, Consumer is
seeking to offer new services and launched upgrades for
the home entertainment universe in the form of TV apps
and the ‘100 films’ offering.
Since the launch of TDC TV in 2005, Consumer has
experienced continuous growth in the subscriber base and
in 2011 the number of RGUs increased by 25.4%.
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