web community ver3beta - · PDF fileMVNE led White Label Assisted, MVNO led End User End User End User End User Disclaimer The map includes information compiled from various reputable

2006 Market Map: European MVNO 3.0 Matthew [email protected]

Chirag [email protected]

www.firstpartner.net t. +44 (0)870 874 8700

Introduction

Western Europe: 13m subscribers in 2005, 47m by 2009UK:5.5m MVNO subscribers; 13% of UK mobile users, 9% UK mobile revenue

MVNO Subscriber Forecast

Source: Ofcom, Pyramid Research, Yankee Group, IDC

MVNO Engagement Models

MNO MNO MNO

MVNA

MVNE MVNE

MNO

MVNO MVNO MVNOMVNO

Direct or DIY

Assisted, MVNE led

WhiteLabel

Assisted, MVNO led

End User End User End UserEnd User

DisclaimerThe map includes information compiled from various reputable sources and other methods like structured interviews and surveys, conference material and information available in the public domain. As data and information sources are outside our control, FirstPartner makes no representation as to its accuracy or completeness. All responsibility for any interpretation or actions based on this map lies solely with the reader. Copyright 2007

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t. +44 (0) 870 874 8700f. +44 (0) 870 874 9888e. [email protected]

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FirstPartnerCustomerSegments

Channel Play

5 Key MVNOPropositions

MVNO Channels

Online

Own Stores

Online

3rd Party Retailers

Online

Own Stores

Other Retailers

Online

Own Sales Force

3rd Party Retailers

Online

Voice & SMS Only Voice Plus Voice & Data

BusinessConsumer

Customers

Propositions

Deeper customer relationship through convergence

Core business boost through brand stamping and cross marketing third party products and

services

Community reach and affinity to special interest groups

Competitive edge through customer reach and distribution strength

Cost and value1 2 3 4 5

Evolution of MVNO Business Models

MVNOs (Host Network & Country)

Voice Focused, Price Driven Mass Market Model Niche Focus, Voice Plus Brand Driven Model Data Focus, Service Oriented Model

1. Operational Cost 2. Customer Ownership 3. Community Reach 5. Convergence4. Content & BrandsBusiness & Consumer Focus

Tele 2InPhonySun MobileDebitelTele 2Tele 2iSpaceToucan

OneBaseBaseTDCSonofonTelfortTeliaT-Mobile

AustriaBelgiumBelgiumDenmarkDenmarkNetherlandsSwedenUK

Business Focus

Futur TelecomYes MobilePrimusTranscommTimicoYes MobileFlexphone

SFRKPNTelfortT-MobileT-MobileVodafoneVodafone

FranceNetherlandsNetherlandsUKUKUKUK

Back End

They offer back office solutions like: - Billing - Customer Service - Revenue Management - Data Management

ConvergysTelcordiamPortalSpinbox

Specialised MVNEs

They mainly have their own platforms - Special Delivery - Content

MVNGOQualutionArvato MobileInap

Aggregators

Leverage alliances to deliver a one stop shop, telco in a box solution including consulting, logistics and integration services including network components

Martin DawesTransatelMECABBLAvistream

Pure Aggregators

Mobile Virtual Network Enablers (MVNE)

Martin DawesTransatelMEC

Handsets

NokiaEricsson

Key Features:Music PlayerVideo PlayerMobile Applications

Price Range: EUR 200 - 400

Smart Phones

NokiaMotorolaSamsungEmblaze/LobsterSEMCBenQ-Siemens

Key Features:MemoryMusic PlayerVideo Player


Enhanced Phones

NokiaMotorolaSamsungLGSEMCBenQ-SiemensEmblaze/Lobster

Key Features:Java/DownloadsPolyphonicVGA


Basic Phones

NokiaQtekBenQ

Key Features:MemoryQWERTY KeyboardMobile Applications


Business DevicesHandset Enablers

Zi CorporationVistoEricoEMCC SoftwaremFormationSurfKitchen

Service Discovery EnginePush Based emailIMPS, IMS, & PoCFun ApplicationsOTA ConfigurationContent Discovery

Supportive Accommodative Conservative

O2 One Telenor Orange Vodafone Swisscom

Mobile Network Operators

To increase capacity utilisation & enable brands to appeal to target groups To garner larger share of target demographicOperatorAttitudes T-Mobile E Plus SFRTelfort/KPN TeliaSonera Base Elisa TDC Sonofon

SIM

Axalto-GemplusOberthur

G&DInCard

AlcatelEricssonDynamic Mobile

Equant

Network Integration IT Platform

ComarchVerisignAlcatelQuentas

CRMBilling Pre/Post PaidRating EngineOSS

Services

BridgewaterComarchIntec TelecomEZWIN

MediationManagementReportingCustomer Care

QualcommNokiaAlcatelEricsson

SoftswitchHLRSMS-CMMS-C

Infrastructure Elements

CapGeminibcgiNokiaComarch

HostingNetwork OperationCustomer Services

Managed Services Quality, Test & Diagnostics

QualityPartnerIntec Telecom

ComarchPatni Computers

ServistaCapGemini

AlcatelPatni Computers

BPO Services

MNOs

Mobile Virtual Network Aggregators (MVNA)

MNO Cable Operators Fixed Carriers IT Vendors

mQubeJambaMotricityIceMobileBangoQuePasa

Mobile content billing platformMobile service platformOnboarding, provisioning, distribution & managementVideo chat & 3G streamingBrowse & Buy content portal platformsPlanning, creating & delivering content

Service Delivery Platform Vendors

Sports Games Music Print & Media TV/Film Communities

Man UtdESPNSkyAdidas

EAMDisneyX GamesIn-Fusioi-PlayCodetoys

myspace.comfriendstarYahoo!

SkyMobiTVChannel 4BT Movio

WDIGSunMaximFHMDaily StarFT

UniversalSonyEMIMusiwaveIndependents

Third Party Content Providers & Developers

Service Providers

NetsizeWIN2ergo M-Blox Rok Mobile Jamster

Connectivity Providers & Enablers

Opera iTouch Monster Mob Buongiorno Verisign Stream

Aggregators

Co

nte

nt

Solu

tio

ns

MVNO Business & Technical Models

Reseller Service Provider

EnhancedServiceProvider

Quasi MVNO

Full MVNO

Base Product Base Product Base Product Base Product Base Product

Customer Contact

Customer Contact

CustomerContact

Customer Contact

Additional Services

ServicePlatform

ServicePlatform

Switching &Transport


Net ID (own IMSI &

MSISDN)Revenue Opportunity Increases

Higher MarginsHigher Investment

Greater Risk

Cost CustomerOwnership

CommunityReach

Content & Brands

Convergence

Tech

nica

lR

equi

rem

ents

Propositions

Business Models



Quasi MVNO

Full MVNO




Customer Contact

Customer Contact

CustomerContact

Customer Contact

Additional Services

ServicePlatform

ServicePlatform



Net ID (own IMSI &

MSISDN)


Customer Contact

Customer Contact

CustomerContact

Customer Contact

Additional Services

ServicePlatform

ServicePlatform



Net ID (own IMSI &

MSISDN)Revenue Opportunity Increases

Higher MarginsHigher Investment

Greater Risk

Revenue Opportunity IncreasesHigher Margins

Higher InvestmentGreater Risk


CommunityReach


CommunityReach

Welcome to FirstPartner’s Mobile Virtual Network Operator (MVNO) Market Map.

If, having reviewed the market map, you would like FirstPartner to brief you on the MVNO sector, we can tailor our insights to fit your market and area of particular interest.

MVNO Business CaseLower operating margin and capex vs. MNOsLess time to cash flow breakeven MNOs gain access to customers that are difficult to target Content / brand owners can enhance & extend the wireless market

MVNO RisksUnfavourable wholesale agreement & restrictionsHostile pricing by MNOs - unlimited call tariffs & SMS bulk bundles SIM lockingDifficulty in setting appropriate relationships with handset vendors

Traditional MVNOsRigid wholesale contractsLean staffing structureSelected channelsSimple productsVery easy to understand tariffSAC lower than MNOLower ARPU than MNO

Next Gen MVNOsFlexible wholesale contractsDedicated customer care teamAugmented distribution capacityInnovative content and service offeringsFlexible tariffSAC similar to MNOHigher ARPU than MNO

Market Trends

Num

ber o

f MV

NO

s

Cost Story2006 2010

Many

Few

Revenue Story

Fragmentation Growth &Consolidation

New Entrants• Custom content• Superior services• Control key elements

Existing MVNOs• Grow subscriber base• Data services

Num

ber o

f MV

NO

s

Cost Story2006 2010

Many

Few

Revenue Story




Num

ber o

f MV

NO

s

Cost Story2006 2010

Many

Few

Revenue Story




Cost Story2006 2010

Many

Few

Revenue Story




Sports

RCSC MobileSky

BasePlanning

BelgiumUK

Ethnic & SIG Groups

Ay YildizOrscomGaymobileLebara Mobileeuro keitai

e-plus/KPNSFRSonofonVariousSFR

Germany/NLFranceDenmarkVariousFrance

Students/Youth Groups

Happy ManyLeFrenchNRJ MobileGoMobileVox MobileHeyahDot Mobile

BaseBougyesSFRFinnetLUXGSMPTCVodafone

BelgiumDenmarkFranceFinlandLuxembourgPolandUK

Large Retailers

Specialist Retailers

Omer TelecomTalkingMobilcomTeledamaFresh (CPW)

OrangeO2T-MobileBiteT-Mobile

FranceGermanyGermanyLithuaniaUK

CarrefourAldiWalmartTchiboCo-OpTescoSainsburyAsda

Orangee-pluse-plusO2OrangeO2O2Planning

FranceGermanyGermanyGermanySwitzerlandUKUKUK

SIM only (Voice & SMS)

Handsets & Roaming

TelmoreBravocombase.deRede4Yallo

TDCElisae-plusOptimusSunrise

DenmarkEstoniaGermanyPortugalSwitzerland

Yesss!Ortel MobileUgly DuckKlarmobileAmigoScarlet TelecomM-BudgetGoMobilesimyo

OneBase/TelfortProximusT-MobileLMTOrangeSwisscomTeliaeplus

AustriaBelgium/NLBelgiumGermanyLativiaNetherlandsSwitzerlandSwedenGermany

Media & Entertainment

NRJUniversal MusicM6 MobileDjuiceTelecableHello MTVExtreme

SFROrangeOrangeTelenorPlanningTeliaVodafone

FranceFranceFranceGermanySpainSwedenUK

Established Brands

Virgin MobileNTL & CPWT-MobilePrivatbank

T-MobileOrangePlanningWellcom

UKFranceIrelandUkraine

Segment Market Share ~ 17%SAC ~ EUR 30 - 350





- Handset Subsidy (if any) - Channel Commission - Marketing Expense

Subscriber AcquisitionCosts

MVNO Value Chain

White Label:MVNA delivers wholesale agreement with MNO, provides back end and service delivery/front end

Handset

20:20 LogisticsAvenir TelecomEuropean TelecomEBSFone LogisticsData SelectUnique DistributionUnipart

Warehousing and TransportCustomer SupportReverse LogisticsHandset Customisation - Branding - Packaging - Preloading software and applications

Distributors

Accessories

PortixStrax/More...

DextraKondor

DIY:MVNO negoiates wholesale agreement with MNO and provides back end.

1.0 Assisted:MVNE delivers wholesale agreement with MNO and provides back end.

2.0 3.0

Documents

web community ver3beta - · PDF fileMVNE led White Label Assisted, MVNO led End User End User End User End User Disclaimer The map includes information compiled from various reputable