In Norway

1
In Norway
By Krista Witherspoon Kristian Arnesen
2
Company Profile

• Established July 1992
• Do Communications Over the Mobile Network
• 51 million cell phone subscribers in Japan
• Revenue of over 5 billion
• Osaifu-Keitai

3
Norway

• PDI 25
• IDV 62
• MAS 8
• UAI 45
• Population of 4,610,820
• GDP per capita 42,800
• Rate of 1.03 cell phones per capita (2005)

4
Environmental Challenges

• An aging Norwegian population
• 3G licensing is limited to 4 initial companies
• A 3G license will cost more than 100 million
• Current Norwegian government may be reluctant to
  let a major Japanese company enter the market

5
Entering the market

• Joint venture with the Norwegian cell phone
  service provider Telenor
  
• Telenor has over 2.6 million subscribers in
  Norway.
  
• Telenor has over 82 million subscribers
  worldwide
  
• Has the most popular pay as you go service
• Government owns 53

6
The Competition

• NetCom is the only major competitor
• Only other cellular phone company with a 3G
  license
  
• Does not offer any such service as Osaifu-Keitai
• Smaller market share than Telenor at only
  1.2million subscribers
  

7
The Norwegian cell phone market

• Norway has 1.03 cell phones per capita
• Norwegian cell phone market is larger than its
  population, at over 4.7million subscribers
  
• Will target the entire market, consumers as young
  as 8 years have cellular phones
  
• Teenagers without credit cards can use it with
  prepaid charge cards which are popular in Norway
  
• Continuously being regenerated
• Cell phone is an In item

8
Marketing Objectives

• Use Norway as a test market for Telenors entire
  subscription base
  
• Phones will be subsidized through Telenor for new
  subscriptions for market penetration
  
• Will be offered to existing Telenor subscribers
  that are looking for their one year replacement
  phone
  
• First terminals for use at Statoil gas/grocery
  stores
  

9
Osaifu-Keitai

• A mobile wallet
• Service provided by using an ICC in a cell phone
  (Integrated circuit card)
  
• Uses 3G technology
• Electronic tickets, membership card, airline
  ticket, key to your house
  
• Pin code or Biometric scan for security
• Consolidation of bills

10
Promotion

• Advertisement through television and
  publications
  
• Sponsor events that requires tickets such as the
  Quart festival
  
• Sales promotion through buying subsidized phones
• Sales promotion by offering discounts at popular
  retailers
  

11
Place Distribution

• Focus on the service. The phone acts as a
  distribution channel for ICC cards which provides
  the service
  
• The cell phone will be used

12
Pricing
13
Process

• Sign up and download profile from our web portal
• Add money through Telenors pay as you go cards
  which we are adapting
  
• Use your credit card
• Used by holding the phone over a scanner
• Adapted additional security measures

14
Timeline
15
Thank you for listening
Questions?