DIRECTV 2012 Annual Report Download - page 16

In terms of technology, 2013 will be a big year for infrastructure investment
across the region. We are building a world-class infrastructure to effectively
manage the business, ensure consistent service levels and greatly improve
our operational performance, particularly in areas such as our call centers
and IT systems.
We are opening new call centers outside of greater São Paulo with the focus
of delivering superior customer service across diverse market segments
in our subscriber base. We’re working to provide our frontline employees
more segmentation information so they can better assess each customer
for upgrade offers—just as we do in the U.S. And, we’re investing in new
satellites and related broadcast infrastructure to increase our capacity for
HD channels and strengthen our competitive edge, as well as reduce risk by
providing in-orbit backup capacity.
We are confident that these efforts will deliver future benefits, drive
efficiency, improve productivity, and preserve our cost structure across
the various countries and regions where we offer service under the
DIRECTV and SKY brands.
SELECTIVELY EXPANDING FIXED WIRELESS BROADBAND SERVICE
We are hard at work on other strategic initiatives to support our business,
such as taking advantage of the market opportunity for broadband growth
in Latin America. As part of that effort, we were opportunistic in 2012 in
acquiring low-cost spectrum.
In Brazil, we now own spectrum covering approximately 16 million
households, representing more than 30 percent of Brazil’s GDP. While
we launched 4G fixed wireless broadband service in Brasilia last year,
we consciously delayed the launch into additional markets to fully test
a software update we expect will enable us to deliver a more reliable
product consistent with our reputation for quality.
In 2013, we’re looking to expand our technologically robust fixed wireless service
to several new cities with low broadband penetration. In every case, we remain
committed to making sure the decision to deploy and build out a network has a
long-term positive cash flow contribution to the business on a stand-alone basis.
By successfully executing on these strategic priorities—even with the recent
devaluation in Venezuela—we are on track to fulfill the five-year vision we
outlined at our Latin America Investor Day: double our subscriber base from 8
to 16 million, double revenues from $5 to $10 billion, maintain strong OPBDA
margins of about 30 percent, and deliver significant cash flow in 2016.
CORPORATE SOCIAL RESPONSIBILITY: FULFILLING OUR
RESPONSIBILITY TO ALL OUR STAKEHOLDERS
Our social responsibility strategy promotes the behaviors that reflect our
commitment to our company’s values: leadership, innovation, decisiveness,
agility, teamwork and integrity. These principles enhance our premium brands
across the Americas, help us recruit by engaging top talent, follow economically
sustainable business practices, and enrich the communities where we do
business. One of the things I love best about DIRECTV is that through our value
proposition, we’re able to fulfill our responsibility to all of our stakeholders—
shareholders, customers, employees, and the communities we serve.
SUSTAINABLY MANAGING OUR BUSINESS
As a sustainability leader in our industry, we’re working hard to ensure our
planet is healthy for future generations. In 2012, we recycled hundreds of
“Content, technology and service are the pillars around which we’ve built o ur
best-in-class video service that we deliver to our customers; and incre asing the
value of DIRECTV is the commitment that we are making to our shareholders.”