Page 40 - 2012 Annual Report

VIVENDI l 2012 l Annual Report 40
GROUP PROFILE – BUSINESSES – LITIGATION – RISK FACTORS 1
1
SECTION 2 - BUSINESSES
GVT
2.6.3. Market/Distribution
GVT develops bundles of diversified products into an integrated package
attracting different customer segments. GVT bundles conventional
telephony, broadband Internet, Pay-TV, value-added services, broadband
services and content, managed services, corporate data, and VoIP-based
products into packages offered to its customers, enabling it to generate
higher revenues per customer and a higher return on invested capital,
while building strong customer relationships and a high level of customer
engagement.
At the start of 2012, GVT entered into a partnership with critically
acclaimed game developer Blizzard Entertainment to provide an exclusive
offer to GVT customers. Power GVT broadband customers now have free
download access to the Brazilian-Portuguese-language version of World
of Warcraft® , the world’s most popular subscription-based massively
multiplayer online role-playing game, including the game’s first expansion,
The Burning Crusade®. The promotion also includes specially discounted
subscription plans.
At the same time, the company launched a major marketing campaign to
promote its Pay-TV service. GVT is the first Brazilian company – and one of
the pioneers worldwide – to adopt a hybrid model: its high quality satellite
(DTH) guarantees improved TV channel transmission and, at the same
time, enables interactive services, Internet integration and on-demand
content using the IP network (IPTV).
By adopting this solution, GVT TV takes full advantage of its next-
generation network. As a result of the network architecture, based on
optical fiber and advanced technologies such as VDSL (Very-high-bit-rate
Digital Subscriber Line) and FTTH (Fiber to the Home), the company offers
differentiated services with an excellent cost-benefit ratio to the customer
and unique services in Pay-TV.
In 2012, GVT launched several interactive TV apps, at no extra cost to its
Pay-TV customers, such as YouTube, Facebook, Instagram, Twitter, and
the “TV out of TV service” in which customers can watch some of their
content anytime and anywhere, through their computers or connected
devices. During the year, GVT has also incorporated more channels in its
lineup, keeping its TV packages and product portfolio as one of the most
attractive in Brazilian market.
PMC, GVT’s multiplatform digital service of music and video per streaming,
offered at no charge for all broadband customers since 2010, gained new
layout and new channels in 2012. In the first quarter, GVT launched it as
an app for GVT TV.
2.6.3.1. RETAIL AND MICRO-ENTERPRISE SEGMENT
GVT’s Retail/Micro-enterprise segment offers local and long distance
fixed-line-telephony and broadband services to high-end and high-margin
residential customers and Micro-enterprises with a significant last mile
network. GVT also offers long distance services to customers holding
lines supplied by other operators in cities in which it does not have a
local presence. In addition, GVT’s Retail/Micro-enterprise segment offers
Internet services through POP, its ISP.
GVT also offers content, e-mail and other multimedia services such as
blogs, photo blogs and hosting services to its customers, regardless of
whether these customers also purchase Internet access services from
the company. In addition, GVT offers VoIP services through VONO to
residential and Micro-enterprise customers in Brazil, as well outside of
Brazil, who have a broadband connection with any operator.
In 2012, GVT improved its Pay-TV service offering to retail customers. It
offers all subscribers a package of high definition channels and interactive
services. Since then, GVT has strengthened its innovative positioning by
enhancing its product performance and deploying new functionalities.
In August, GVT launched its new residential portfolio, combining brand
new unlimited home phone services with double and triple-play bundles.
The new portfolio strategy improved the triple-play offer, which is
available with a minimum Internet speed of 15 Mbps, providing significant
discounts to the buying customers. Furthermore, the company was able to
enhance sales performance and improve ARPU.
GVT also offers to its broadband users three additional services:
✱ “SOS Computador”: A personal help desk providing support for all
computer problems, through remote access/log-in, phone or even a
visit by technicians to customers’ homes;
✱ “PROTECT”: An Internet Security Suite powered by F-Secure ®
preventing malicious activity attacking customer’s PC, including
anti-virus, anti-spyware, Firewall and Parental Control; and
✱ “Backup Online”: With this service, GVT’s customers can store and
share files such as photos and important documents.
At year-end 2012, these additional services gathered almost 750,000
paying customers – a significant ten-fold increase compared to year-end
2011.
2.6.3.2. CORPORATE SEGMENT
GVT’s Corporate segment focuses on middle-to-large sized companies. It
provides superior and innovative products and highest quality services,
offering high-quality integrated solutions and managed services including
fixed-line telephony, unified communication systems, hosted VoIP, Internet
services, private-data networks and Data Center services.
GVT benefits from having the most advanced NGN (Next Generation
Network) architecture to provide customized solutions, based on fixed-
line telephony and IP technology. It offers unique value propositions to
customers through greater functionality and substantially lower operation
costs and capital expenditure.
In June, 2012, the “VOX NG – GVT” solution to business customers
combined fixed-line telephony with IP technology without the need for high
infrastructure investments. It was considered the best communications
solution in cloud telephony for businesses by Alcatel-Lucent.
In November 2012, GVT increased its capacity as a data center services
provider, launching a managed dedicated hosting service in its three
current data centers in Brazil, located at Rio de Janeiro, São Paulo
and Curitiba. This service provides business customers the entire IT
infrastructure (Servers, Storage, Network and Backup), delivering the
best network solution, Internet and data center, without requiring them to
invest in equipment, upgrades or maintenance.