Connecting O2 business customers all over the world

Anjuli Valera

Roaming is not a positive subject in customer satisfaction There are 3 key reasons why roaming is an area of dissatisfaction with our customers

Historically, mobile operators have failed to meet customer needs for those who roam from home. Operators have kept roaming revenues inflated for profit. Legislation has now changed this across the EU.

Customers fear the bill after a trip abroad. Going abroad is great. The mobile bill when they get back can be horrendous. Roaming is a devil in disguise.

Headline marketing messages hide true comparisons that can only be found by comparing offers at a feature level. Yet more confusion for customers

Greedy operators Customer bill shock Confusing propositions

Market Context

The market

Roaming in Europe

UK Calls to abroad

Standard roaming rates in Europe declining. By 2017 roam like home in Europe will be compulsory

These compulsory changes will wipe £millions from O2’s bottom line

Put customers back in control with O2 Travel

Situation Threat Opportunity

O2’s propositions put us in a good position against our competitors for RoW roaming, especially for data

Our competitors are often perceived as the customer champion on roaming

Awareness to drive opt-in to our Worldwide Data Bolt Ons (WWDBO)

O2’s international calling rates are complicated

Confused by our pricing, customers use OTT services such as Skype & Viber instead of their mobile to call abroad from the UK

Simplify our pricing structure for calling abroad.

Roaming in Rest of World

Our Propositions

Roaming options for O2 customers travelling abroad

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Standard Roaming Rates Europe and Rest of World

Europe Rest of World

Voice SMS Data

Low User Cap

High User Cap

O2 Travel

Worldwide data Bolt On (30 Day)

Worldwide 24 hr

data Bolt On

O2 business customers travelling to Europe

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Europe

O2 Travel Not compatible

with Mobex or

B4B PAYU

Text

TRAVEL

to 23336

to opt in

£1.66 for a

day’s

worth of

data

Reduced

speeds at

50MB

Text tells

them how

to buy

more data

Offers control

so av. spend is

£5.90 more

over 5 day trip

than on

standard rates

Worldwide

data Bolt

On

(30 day)

Text

BUYWORLD

to 23336

to opt in

£99 for up

to 2GB to

use over

30 days

Uncapped

but can

cap to 1

per billing

cycle

Data

usage

texts sent

(bar MBB)

Worldwide

Cost control

Flexibility

Tethering

Fairford Electronics Case Study: https://www.youtube.com/watch?v=HFfdVq-0PE8

O2: Just to let you know you’ve used 50MB from your O2 Travel daily allowance.

You can continue to use O2 Travel but may experience slower data speeds until you

get your new allowance at midnight UK time. If

you’d like to continue using data at the same speed, text MOREDATA to 23336. This

will reset your daily allowance and you’ll be charged another £1.66 ex VAT, which

will last until midnight that day (UK time).

O2 business customers travelling to Rest of World

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Rest of World

Worldwide

24 hr data

Bolt On

Text

BUYWORLD24

to 23336

to opt in

£7.50 for

up to

200MB to

use over

24 hrs

There are

3 cap

options or

uncapped

Data

usage

texts sent

Out of Europe

Cost control

Flexibility

Worldwide

data Bolt

On

(30 day)

Text

BUYWORLD

to 23336

to opt in

£99 for up

to 2GB to

use over

30 days

Uncapped

but can

cap to 1

per billing

cycle

Data

usage

texts sent

(bar MBB)

Worldwide

Cost control

Tethering

Flexibility

Worldwide data Bolt Ons Comparisons

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Worldwide 24 hour data Bolt On Worldwide data Bolt On (30 day)

Outside of Europe only Worldwide

Use data over 24 hours Use data over 30 days

Compatible with O2 Travel Not compatible with O2 Travel

Not compatible with data only tariffs Compatible with data only tariffs

No tethering Tethering available

3 capping options available and 1 uncapped option

• 4 bolt ons per billing cycle

• 1 bolt on per day

• 2 bolt ons per day

• Uncapped

1 capping option available and 1 uncapped option

• 1 bolt on per billing cycle

• Uncapped

Customer automatically put on cap of 4 bolt ons/billing cycle

(post July 2015). Has to request other options if wanted.

Customer automatically put on uncapped. Has to request

cap if wanted

Roaming Compatibility Tariffs

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Tariffs O2 Travel Worldwide 24 hour

data Bolt On

Worldwide data

Bolt On (30 day)

RRP 2012 voice tariffs onwards Compatible Compatible Compatible

RRP Mobex & B4B PAYU Not Compatible Compatible Compatible

RRP Post-2010 data only Tariffs Not compatible Not compatible Compatible

All Pre-2010 Tariff (excluding Mobex &

B4B PAYU) Not compatible Not compatible Not compatible

Blackberry Roaming Daily & Monthly Not Compatible Not Compatible Not Compatible

Please note situation for bespoke customers.

The RRP tariff compatibilities remain true if a customer is on a bespoke contract, however it depends on where a bespoke contract customer is in their lifecycle as to whether they

can have the propositions.

• If an in contract bespoke customer wants one of these roaming propositions, then it is NOT possible.

• If a new or re-signing customer opting for a bespoke contract wants these propositions, then based on the RRP tariff compatibilities, the propositions can be made compatible if

they ask at this point in time. For example, I am a new customer opting for a bespoke contract with my employees taking Mobex Tariffs. At this point in time as the deal is being

created I can have those Mobex tariffs made compatible with either of the Worldwide data Bolt ons (24 hour or 30 day). However I can’t have them made compatible with O2

Travel, as even in RRP world Mobex is not compatible with O2 travel.

O2 business customers calling from abroad from the UK

11

International

Favourites

2 options

£8.33/mth

or £16.67/

mth

Bundles of

mins to

int’l

landlines

and

mobiles

Get a call

me

number

Call BCS

to get set

up

Customers

can stay in

contact with

international

customers,

suppliers etc.

Standard

Rates

Our

standard

rates are competitive

All

customers

on

standard

rates as

default

Unlike

Voda no

monthly

fee to

unlock low

rates

Competitively

priced

standard rates

keep

customers

connected

Calling abroad from the UK

The Competition

How O2 compares to the competition

Europe Travel

World Travel

UK Calls to abroad

O2 Travel £1.66/day Reduce speeds after 50MB 4p texts. Free to receive 41p per call up to 60 mins.

EuroTraveller (RED plans) £2.50/day to use data, texts and mins from UK bundle

Euro Pass £3.33/day Unlimited mins & texts Up to 500MB data (throttled) £2.50/day just for data

O2 Vodafone EE

Worldwide Data Bolt Ons £7.50/day up to 200MB. Countries outside Europe £99/30 days for up to 2GB. Worldwide

WorldTraveller £5/day to use UK mins, texts and data DataTraveller £5/day for 25MB

Add-Ons £10/day for 100MB £40/week for 500MB

International Favourites £8.33/month for 3000 mins to landlines & 100 mins to mobiles across 3 numbers Standard Rates Prices range from Zone 1 @ 8p/min to Zone 6 @ 77p/min

Unlock cheaper rates for £4.17/month Standard Rates Europe: 83p/min RoW: £1.25/min 75 mins of IC Calls for £8.34/month

Business Extra Plans have international calling included 100 UK-to-EU mins for £8.33/30days 50 UK to RoW mins: £5/day Hero device mins on HTC1

Worldwide 24 hour data Bolt Ons vs World Traveller

Double Paying

Overage

Customer pays £7.50 for 200MB of data. This DOES NOT come out of their domestic bundle

Customer pays £5/day to use data texts and mins from home bundle, meaning they are double paying

O2 Vodafone

Customer either uncapped & can use as much data they want. Or capped at a certain spend depending on the cap opted into

If you use up your domestic data bundle then you will be charged overage, which starts at £15/GB

Time restrictions

As soon as a customer has used 50kbs on data they are given 200MB of data to use over a 24 hour period. Not just to midnight

If a customer starts using data at say 10pm, they will be charged £5 to midnight and then £5 again if they use the next day

Charge Triggers

If a customer uses 50Kbs of data then they are charged £7.50 to use 200MB over 24 hours

If a customer sends a text, makes a call, or uses 50kbs of data, then they will be charged £5

Worldwide? This Bolt On covers all countries we have a roaming agreement with outside of Europe. Offering complete flexibility

Only covers 30 countries, 17 of which are the Caribbean. Customer would have to work out what they’d pay in non World Traveller countries

Our Marketing

Making roaming hassle free for our customers And there are three pillars to this

This is about making our customers aware of our different propositions and the benefits they offer them when doing business abroad Customer action: Opt in

Once we’ve got customers opted in, it’s about changing their behaviour. We want them to use their device as they do at home when abroad Customer action: Leave roaming on for data and voice

The purpose is to get our customers excited by sharing good news that impacts them positively, for example 4G roaming Customer action: Share good news through WoM

Make customers aware Stimulate customers Excite customers

Our ask of you

What we need to focus on To claw back the roaming revenue we’ll lose through the regulation changes

Customers on O2 Travel spend more than those who aren’t

Our Worldwide data Bolt Ons offer customers flexibility and control. Customers are much better off on these propositions than standard rates

O2 Travel opt in WWDBOs opt in

Appendix

O2 Travel

o For customers travelling in Europe

o Price is £1.66 (ex VAT) for the days data is used in Europe (our standard rates are 14.5p per MB). It costs nothing to add it and customers only pay if they use it.

o There’s no upper usage limit but data speeds will be slower once 50MB of data has been used.

o Daily data charge will apply from midnight to midnight UK time.

o To make or receive calls is 41p and then its free to talk for up to 60 minutes. After 60 minutes standard UK out of bundle rates apply (30p per minute).

o Texts are 4p to send and free to receive.

o Its compatible with the Worldwide 24 hour data Bolt On

O2 Travel

o Customers can now opt in to O2 Travel text TRAVEL to 23336

o If customers don’t select O2 Travel then they’ll pay the standard roaming rates for Europe (unless they already have a Worldwide data Bolt On (30 day)).

o O2 Travel works in

o Austria; Belgium; Bulgaria; Cyprus; Czech Republic; Denmark; Estonia; Finland; France, Monaco; Germany; Gibraltar; Greece; Guernsey; Hungary; Iceland; Ireland; Isle of Man; Italy, Vatican; Jersey; Latvia; Liechtenstein; Lithuania; Luxembourg; Malta; Netherlands; Norway; Poland; Portugal; Romania; San Marino; Slovakia; Slovenia; Spain; Sweden; Switzerland.

Worldwide data Bolt On (30 day)

o For customers who travel regularly around the world including Europe.

o Customers pay £99 for up to 2GB of data to use over a 30 day period. Remember customers are only charged from when they use the data. (Customers not opting for WW data Bolt Ons will pay £6 per MB for data).

o There are different data allowances for different zones ie. Zones 1 & 2 is 2GB, Zone 3 is 1GB etc all the Zone information and which countries fall into each Zone can be found here on O2.co.uk

o Customers data travels with them between countries, prorating itself if they enter a different zone.

o Tethering to laptops or tablets is supported.

o This Bolt On includes Europe, so customers won’t need O2 Travel if their travels include the Continent. A customer has to remove O2 Travel to take the Worldwide data Bolt On (30 day)

Worldwide data Bolt On (30 day) - Capping

o 1 cap per billing cycle

o A cap that ensures that customers can only purchase one Worldwide data Bolt On (30 day) per billing cycle.

o Customers will receive alerts at 0%, 80%, 95% and 100% of the Bolt On allowance. If they continue to use data, they will be directed to a web page explaining they have used their allowance and if they want to remove the cap they should speak to their account administrator.

o If a customer does not proactively opt in to this cap, then they will be uncapped.

Worldwide 24 hour data Bolt On

o For customers travelling outside of Europe on brief trips.

o A customer is only charged when they start using data. It costs £7.50 per Bolt On and they get up to 200MB of data to use over a 24 hour period. (Customers not opting for WW data Bolt Ons will pay £6 a MB for data).

o There are different data allowances for different zones ie. Zone 2 is 200MB, Zone 3 is 100MB etc all the Zone information and which countries fall into each Zone can be found here on O2.co.uk

o Can be used anywhere where we have a network agreement outside of Europe.

o Customers data travels with them between countries, prorating itself if they enter a different zone.

o It’s compatible with O2 Travel

o Tethering to laptops or tablets is not supported.

o New and re-sign customers are opted in to this Bolt On as default unless they opt out.

Worldwide 24 hour data Bolt On - Capping

o Default Cap – 4 Bolt Ons per billing cycle

o All new customers to O2 and new customers to Worldwide 24 hour data Bolt Ons will be opted in to the Worldwide 24 hour data Bolt On with a default cap of 4 x Bolt Ons per billing cycle.

o Customers will receive text alerts at 0%, 80% and 95% of the Bolt On allowance.

o If they continue to use all the data, they will automatically role into a new Bolt On.

o Once a customer have reached their 4 cap allowance they will be sent to a landing page showing number to text back to remove the cap. They can’t use any more data until this cap has been removed.

o Only the account administrator has the ability to authorise the removal of the cap

Worldwide 24 hour data Bolt On - Capping

o 1 or 2 caps per 24 hours

o Customers can cap their Bolt On consumption at 1 or 2 Bolt Ons per 24 hour period.

o They can limit their spend to £7.50 or £15 per 24 hours.

o Customers will receive text alerts at 0%, 80%, 95% and 100% usage of the Bolt On allowance. If they continue to use data, they will be directed to a web page explaining they have used their allowance and that to remove the cap they should speak to their account administrator.

o Please note: If a customer decides not to cap the WW 24 hour data Bolt On they will receive text alerts at 80%, 95% and 100% usage of the Bolt On. If they continue to use data, they will automatically role into a new Bolt On.

Text message Number Opt in to 4 per billing cycle BUYWORLD24CAP +44 786 002 7993 Opt in to 1 bolt on per day BUYWORLD24CAP1 +44 786 002 7993 Opt in to 2 bolt ons per day BUYWORLD24CAP2 +44 786 002 7993 Opt out of data caps BUYWORLD24 +44 786 002 7993

Text message Number Opt in to 1 per billing cycle BUYWORLDCAP +44 786 002 7993 Opt out of cap BUYWORLD +44 786 002 7993

Opting in for the Worldwide data Bolt Ons

Worldwide 24 hour data Bolt On

Worldwide data Bolt On (30 day)

Proposition Compatibility

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Standard Rates for calling abroad

30

Standard Rates for going abroad

31

World Zones Calling to the UK

from included

countries (per min)

Calling within

Zone

(per min)

Calling out of

Zone

(per min)

Receiving

a call

(per min)

Sending a

text

Sending a

media

message

Zone 1 & 2 Western Europe EU &

Non EU

13.8p 13.8p 79p 3.6p 4p 21p

Zone 3 Eastern Europe 81p 81p 179p 52p 30p 21p

Zone 4 USA & Canada 90p 90p 179p 39p 25p 21p

Zone 5 Asia Pacific 60p 60p 179p 43p 30p 21p

Zone 6 Rest of the world

Including Andorra

120p 189p (120p in

country)

179p 85p 40p 21p

1. Rates are stated in pence per minute, and apply all day. Prices stated exclude VAT.

2. For calls made in Western Europe the minimum duration is 30 seconds, then charged in one second increments, rounded to the nearest penny. For calls made

elsewhere the minimum duration is one minute then charged in 15 second increments.

3. All calls received while abroad are charged in one second increments, rounded to the nearest penny.

All prices shown are per minute and exclude VAT

Standard Rates for going aboard

o If a customer decides to opt out of O2 Travel or either of the Worldwide data Bolt Ons, we’ll still automatically cap the customers costs for using data. We don’t charge the customer for data aboard until they use it.

o We’ll send usage alerts when they’re nearly their monthly usage limit. If they reach 230MB/50MB, their data service will automatically stop, so if they want to use more they’ll need to opt in to a higher spending cap ideally before they go aboard by calling their Partner contact who in turn will contact PCS.

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Region Charge limit

per month

Usage limit per

month

Europe £36 250MB

RoW £36 6MB

Region Charge limit

per month

Usage limit per

month

Europe £150 1035MB

RoW £150 25MB

Default spend cap High spend cap

International Favourites

o International Favourites – is a Bolt On that is applied to each mobile phone. A customer can call up to five business contacts in 60 countries. Also a customer gets a Call Me Number, giving their contacts in a selected country a way to ring you on your O2 mobile without paying international charges. One monthly price. No additional charges. There are two options

o £8.33 (ex VAT) a month – 3000 minutes of landline calls and 100 minutes of mobile calls to three international numbers

o £16.67 (exc VAT) a month – 3000 minutes of landline calls and 200 minutes of mobile calls to five international numbers.

o To check which countries are covered for International Favourites and Call Me Number visits O2.co.uk here

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