President, Bell Residential Services, 2005 - 2010
I was recruited to “fix” Bell Canada’s consumer division, the largest an...
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President of Bell Residential Services

Published on: Mar 4, 2016

Transcripts - President of Bell Residential Services

  • 1. President, Bell Residential Services, 2005 - 2010 I was recruited to “fix” Bell Canada’s consumer division, the largest and most profitable division of the 8 th largest company in Canada. In 2005 the business was underperforming as a result of poor customer service, a lack of product innovation, sloppy branding, unfocused distribution channels, and reactionary price discounting. However, all the foundational pieces were there – at that time Bell was the only North American telco with the full four-product bundle offering. I assembled a new leadership team through internal promotions and two external recruits (marketing and customer operations). We focused on household ARPU and up-sell rather than discounting. We overhauled IT systems, field operations, and our call centers to dramatically improve both customer service metrics and customer satisfaction (as measured by net-promoter). An improving revenue trajectory and lower opex (far fewer calls and repeat truck rolls) allowed us to fund significant capital investment in product innovation – primarily focused on improving broadband speeds. In an ambitious network modernization, we “groomed” 95% of our network and deployed fiber-to-the-node. We focused on television as the competitive differentiator to “pull” through the bundle (figure 1). We were the first Canadian distributor to offer 100 HD channels and a whole-home PVR. We optimized every sales channel and installation process to grow subscribers as well as ARPU. In this role I took responsibility for Canadian and U.S. content acquisition, I purchased and deployed two satellites, and negotiated significant STB purchases. We doubled TV revenue on a 43% growth in subscribers. EBITDA went from $(70)M to $400M and we turned cash flow positive for the first time. During this time we also launched IPTV & ramped to more than 100K subscribers. Our television results, combined with solid execution across home phone and high speed internet, allowed us to outperform the rest of the telco industry (figure 2). By Q2 2010 we were #1 or #2 in North America on 10 out of 12 core operating and financial benchmarks (figure 3). These results were recognized by the investment community, by our board, and our CEO. Equally important, my teams have a track record of delivering commitments regardless of marketplace and competitive pressures (figure 4). Bell Residential Services (BRS) Performance Benchmarking BRS appearances in #1/#2 benchmark position in North America $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 $2,100 2005 2010 Bell TV Revenue ($M) 1,200,000 1,300,000 1,400,000 1,500,000 1,600,000 1,700,000 1,800,000 1,900,000 2,000,000 2,100,000 2,200,000 2005 2010 Bell TV Subscribers -$100 $0 $100 $200 $300 $400 $500 2005 2010 Bell TV EBITDA ($M) -$250 -$200 -$150 -$100 -$50 $0 $50 2005 2010 Bell TV FCF ($M) Our focus on Bell TV allowed us to beat the Cable incumbent, it also pulled through high speed internet subscriptions with the bundle, and led to our overall leadership...   

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