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1&1:Quarterly Results/2023 Q2: Difference between revisions
→Earnings Call
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Our summary of the earnings call can be found in our [https://www.mindmeister.com/app/map/2885954537?t=VIf3zrYRPl MindMap]. | Our summary of the earnings call can be found in our [https://www.mindmeister.com/app/map/2885954537?t=VIf3zrYRPl MindMap]. | ||
=== Revenue, Access Contracts === | === Revenue, Access Contracts, Market Dynamics === | ||
* Have witnessed a decrease in the number of broadband lines for a number of quarters but '''they are confident that they can stop the decrease in the fourth quarter due to the fact that their old ADSL customers, where cancellation rate is high, can be migrated to the VDSL, which they can handle very well'''(MR). | * Have witnessed a decrease in the number of broadband lines for a number of quarters but '''they are confident that they can stop the decrease in the fourth quarter due to the fact that their old ADSL customers, where cancellation rate is high, can be migrated to the VDSL, which they can handle very well'''(MR). | ||
* Forecast revenue to increase by 4% in the second half of the year, bringing service revenue growth to 2.2% in the full year(MR). | * Forecast revenue to increase by 4% in the second half of the year, bringing service revenue growth to 2.2% in the full year(MR). '''Reasons being; they had less aggressive offers in the market in the first half of the year compared to competitors, implemented price change in the first half of the year that will have an impact in the second half and they expect a larger growth of participants in the second half(they expect 300,000-320,000 contracts)'''(Q&A). | ||
* Consumers accepted the price increase and haven't seen them dispense with their products(Q&A). | |||
* Network operators have shut off against service providers as of today; hence the need to examine competition(Q&A). | |||
=== 5G Mobile Network === | === 5G Mobile Network === | ||
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* '''Will take over 300 co-location sites this quarter and will make leases for another 200'''(MR). | * '''Will take over 300 co-location sites this quarter and will make leases for another 200'''(MR). | ||
* Plan to have 1,000 sites by the end of the year(MR). | * Plan to have 1,000 sites by the end of the year(MR). | ||
* It takes a long time before fibre cable is in place until the antenna site has been placed(MR). | * It takes a long time before fibre cable is in place until the antenna site has been placed(MR). '''A lead time of 9 to 12 months'''(Q&A). | ||
* Want to achieve 3,000 sites next year(MR). | * Want to achieve 3,000 sites next year(MR). | ||
* '''Co-partner sites can lead to delays because they have a right to shift the site to another location if they determine that the old site is not geographically viable due to radiotion issues and so on'''(Q&A) | |||
* In the next weeks and months they will start the third and fourth core data centre(MR). | |||
* '''The costs in the MVNO agreement are identical with those in the national roaming with Telefonica; hence antenna sites will save national roaming and it also saves MVNO'''(Q&A). | |||
* The distance between their antennas is small; hence they only need to equip 40-50% of their antennas with low-band frequency to achieve full-coverage(Q&A). | |||
* '''Only the live antenna sites are counted when checking whether they have meet the obligations of the auction'''(Q&A). | |||
* '''There is no distinction between owned antenna sites and leased sites when checking if they have meet their obligations'''(Q&A). | |||
* Distribution between 4G and 5G customers is 50:50 (Q&A). | |||
* They will migrate 50,000 customers per day but could also be 20,000-30,000 customers per day but nobody has ever tried to transfer such number of customers(Q&A). | |||
* They will focus network sale activities in urban areas where they have a good coverage(Q&A). | |||
=== National Roaming Agreement With Vodafone === | === National Roaming Agreement With Vodafone === | ||
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* The costs that they pay Vodafone is about the same costs they pay Telefonica but it's a better contract because there are no hidden costs and limitations. The new agreement will also be devoid of arbitrations and legal costs(MR). | * The costs that they pay Vodafone is about the same costs they pay Telefonica but it's a better contract because there are no hidden costs and limitations. The new agreement will also be devoid of arbitrations and legal costs(MR). | ||
* They need federal network agency approval for the MVNO model to work during the transition period(MR). | * They need federal network agency approval for the MVNO model to work during the transition period(MR). | ||
* '''Conditions for frequency allocation provides that transition can be MVNO if they are based on different technologies'''(MR). | * '''Conditions for frequency allocation provides that transition can be MVNO if they are based on different technologies'''. But they are separating the network with its 4G and 5G network as well as Vodafone's and they are confident that they can argue their point well(MR). | ||
* '''Their negotiation objective was not to optimize pricing structure but was mostly about contractual agreements because they can handle the current pricing quite well'''(Q&A). | |||
* '''There is no obligations eg penalties owed to Telefonica for ending contract with them but they will have business with them until 2026 and even possibly beyond that'''(Q&A). | |||
* '''They will still need to acquire low-band frequency since they cost the same amount of money as indoor roaming and they need to provide their users with unique selling proposition'''(Q&A). | |||
* '''The calculation basis for the network include operation costs, new spectrum costs, energy costs, etc''' (Q&A). | |||
* Migration of customers from one network to the other will be seamless and won't involve customer participation because the customet will be proved with dual sim cards(Q&A). | |||
* 90% of customers have dual sim cards(Q&A). | |||
* Vodafone network is a bit better than Telefonica network. It has catched up in the last few years(Q&A). | |||
=== Vanatage Towers === | |||
* They will try to recover the full amount of damage cause by delays by Vantage Towers(Q&A). | |||
* They want to negotiate compensation out of court(Q&A). | |||
* They said that Vantage Towers is striving to achieve its goals. For instance, they have changed its shareholders and they want to honor that rather than destroy their relationship(Q&A). | |||
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