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December 1st, 2008
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September 3rd, 2008 issue

COURTESY PHOTO
O2's Johansen says the youth segment sets future trends.
The Johansen File



Job title: Chief marketing officer, Telefónica O2 Czech Republic
Age: 32
Nationality: Swedish
Previous position: Director of marketing, products and channels, Business Division, Telefónica O2 Czech Republic
Dominated by the daunting trio of mainstream operators Vodafone, T-Mobile and Telefónica O2, the telecom sector is one of the most competitive markets in the country. Leading this cutthroat market is Telefónica O2, the owner of a vast majority of local telecom infrastructure. One week after Apple’s iPhone hit local stores, O2’s Chief Marketing Officer Matts Johansen talks to The Prague Post about new technology, government regulation, and improving customer service.
? Has the recent introduction of Apple’s iPhone shaken up the mobile phone market?
It hasn’t shaken up the market yet, but it has for sure sparked a change. Apple launched a mobile phone that was focusing on the user experience, and not technicalities. We had people camping outside our shops to be sure that they got the iPhone on the launch date — that has never happened before. Apple’s success has forced all the other mobile phone producers to think differently, and the results will be better phones for the customers.
? What do you consider to be the next big technological advance in the mobile phone market?
We see mobile Internet developing in two streams. The first stream enables users to surf the Internet on their mobile devices. This is driven by new devices such as the iPhone 3G and new flat-rate data tariffs allowing users unlimited surfing for a low fixed price, such as the Internet in Mobile tariff for 150 Kč [$9] per month. The second stream is the rollout of high-speed mobile broadband (3G) that gives users fast access to the Internet wherever they are. O2 has already covered Prague and Brno with fast mobile broadband, and we have decided to invest in covering 20 to 30 other towns in the Czech Republic by the end of 2009. Today, a 3G network can deliver speeds of up to 7 megabytes per second, but, within the next couple of years, new technology will increase this speed significantly.
? Customers here often complain about overcharging, fine print and the inaccessibility of customer service, especially in regard to telecom operators. What is O2 doing to improve the situation?
O2 has ambitions to have the best customer experience on the market. To improve [charging-related issues], O2 recently launched a new mobile voice flat-rate tariff, called O2 Neon. These tariffs provide customers unlimited calling for a fixed monthly fee, which is transparent and easy to understand for customers. Since this spring, O2 has changed all its promotions, eliminating the need for fine print. The promotional element is fully explained in the advertising with no hidden conditions, and all promotions are also available to existing customers. Customer service from O2 is available 24/7 and most calls are answered within 20 seconds. In our call center, we focus on “one call resolution,” where we solve a customer’s issues without any need for further contact. Our tracking shows that our customers are more and more satisfied with their experience, but we still have a lot more to improve.
? Some of your competitors have criticized O2’s use of multi-year customer contracts on the basis that they take away a customer’s freedom of choice. What is your reaction to such claims?
We always provide customers the choice of signing a contract or taking our product without any commitment. We often offer a benefit to the customer if he decides to declare his loyalty to us upfront through signing a contract, and most of our customers find that benefit valuable and therefore decide to make a commitment.
? Vodafone has recently introduced a new product, the LG TV phone, and a new service, Pecka, with Evropa 2. Does O2 plan on offering any competing services or products?
For several years, O2 has provided mobile TV services that can be accessed through most new phones, not only through a special device. So far, we do not see a big demand for these types of services, but we watch the trends and market development closely and will be ready to follow up as services like YouTube go mobile.
? Since last summer, the European Union has imposed caps on mobile roaming fees in its member states. How has that gone?
Our customers now pay significantly less when making and receiving calls when abroad. Many customers limited their communication when abroad in the past, but with the new fees this is no longer necessary. It impacts our revenues in the short term, but in the long run it will stimulate higher usage. The EU has signaled that it wants to regulate SMS roaming fees as well, but this is a political process, so it’s difficult to predict if and when it will happen.
? Is there a new market, such as the below-26 age group, that O2 plans on targeting?
The youth segment is a high priority for O2. We even have a separate organization that looks after the needs and ways of communicating with the rapidly changing youth environment. It is important that people start building a relationship with us and our services at an early stage. Also, we know that the youth segment sets the premises for the whole market. They set the trends, and they often advise others on what to buy and how to use services.
? How do you plan to reach this target market?
Targeting the youth segment is not easy, as habits change rapidly. For an older marketing guy, it can be difficult to speak their language. We try to focus our youth activity on the Internet. This is the channel where you meet all the youth. It is also the channel that provides the most possibilities for creativity. We focus on creating viral material, where the goal is to get the target group to spread the message for us. If you make it interesting enough, it gets distributed very fast. We have a lot of material on YouTube that doesn’t look like it is produced by us, but it delivers our message. These clips are often watched by tens of thousands.
? What is O2’s response to the government’s recently proposed bill that will require all mobile phone operators to store data on all registered calls?
O2 will follow the guidelines of the government if a bill like this is decided.
? What new services does O2 plan for the corporate segment?
We focus on three key areas: managed services, information and communications technology (ICT) and converged services. Managed services provide businesses with outsourcing opportunities for telecom and IT equipment and services. That means a more flexible cost structure, improved availability and easy scalability for the customer. Within ICT, O2 delivers IT and telecom integration projects tailor-made to each customer. These types of services can provide secure access to internal systems via both fixed and mobile access.
 
Want your manager to answer our 10 Questions? E-mail Claire Compton at ccompton@praguepost.com


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