O2 kicks off 2007 with bold new strategy

Since establishing its footprint in Southeast Asia in 2002 as a device business, O2 Asia has grown aggressively across the Asia-Pacific region over the past few years, becoming O2 Asia Pacific in 2004 and, with its successful entry into Middle East last year, O2 Asia Pacific and Middle East. To further extend their mobile momentum, O2 AP & ME has announced two new important strategies: corporate segmentation and product segmentation.

Expanded corporate structure
To appropriately support its rapidly growing business, O2 AP & ME has reworked its corporate structure that now comprises five business units according to geography:

• Asia Pacific - Southeast Asia and the Pacific Rim
• North Asia - Hong Kong, Taiwan
• India subcontinent - India, Pakistan, Nepal, Sri Lanka and Bangladesh
• Middle East - United Arab Emirates, Kingdom of Saudi Arabia, Bahrain and Kuwait
• Oceania - Australia and New Zealand

Singapore remains the regional headquarters for O2 AP & ME, and is headed by O2 AP & ME CEO, Mark Billington. Middle East, led by Aamer Khan, Country Manager for O2 in the Middle East, is one of the sub-regional hubs responsible for executing tailored initiatives - including sales, marketing and customer care strategies - that reflect the unique business conditions, cultures and consumer preferences relevant to the region, while still maintaining the overall brand experience and fresh thinking campaigns that O2 AP & ME is known for. This model allows for efficiency in operations in-country and brings the brand touchpoints even closer to customers to aptly meet their needs.

"We have experienced extraordinary growth since the company began just over four years ago and it was time to steer the company into the future," said Billington. "In fact, 2006 marked a turning point for us as we started our transformation into a company that creates truly original, innovative communication solutions for today's discerning customers, and we are seeing the first fruits of those changes."

"As we continue to expand, we decided that a new corporate structure would help accelerate O2 AP & ME's transformation into a leading player, not just in the region, but globally as well," he added.

Addressing customers' needs
In the past year, the Telefónica group, one of the largest telecommunications companies in the world and with a customer base of 126 million worldwide, of which O2 AP & ME is a part, has undertaken a detailed study of the changing needs and preferences of customers around the world. This study has yielded information which provides key insights into consumer behaviour and the impact on mobile technology adoption trends; insights which O2 AP & ME has used to create a unique product strategy that has streamlined its approach to product development, and will prove highly useful as the company prepares to more effectively target and provide for its customers' needs, reach out to new customer segments, and grow the category space for the industry.

"O2 is more than just about products; it is about your lifestyle and personality, and your experiences and connections with the world around you," said Billington. "We call this the O2 Experience, and have imprinted this onto our new product strategy to better reflect the lifestyle and needs of our customers."

The new O2 product strategy comprises five key product segments:

• Performance - Top-of-the-line devices focused on cutting edge innovation
• Lifestyle - Devices designed for the ultimate in personal mobile entertainment
• Messaging - Enhanced multi-platform messaging capabilities for effortless communication
• Hybrid - Unique approach of amalgamating PDA and mobile phone designs for ease of use, convenience and comfort
• Smartphone - The smart choice and combination of portability and business-grade applications

"This new product strategy will enhance our creativity in designing devices that are not only practical and easy to use but also ideal solutions to everyday lifestyle needs and requirements," said Billington. "Expect to see even more devices and surprises from O2 in the coming months as we ramp up, not only in terms of innovative product design, but in the way we shape technology for the use of our customers."

Nils Wallnas, O2 AP & ME's VP, Product Planning & Management, explained, "2006 saw the development of proprietary O2 applications like O2 SMS Plus and O2 MediaPlus, which are designed to enhance the way our customers experience O2 devices. We will be launching new and improved applications throughout 2007 which will change the way you use, perceive and enjoy mobile technology. In addition, we will be rolling out an exciting line-up of original accessories - including Bluetooth headsets and speakers - all bearing the O2 hallmark of style and substance."