The Book of Boost 2014-2018

Published: February 2014
No. of Pages: 145
   

Boosting Business Bottom Lines via Lean Strategies, Brand Building and Breakthrough ARPUs while Optimising CAPEX/ OPEX, with Network Management Techniques of the Future...and much more

Executive Summary

E1. Introspection

The Book of Boost: At TeleResearch Labs we always take pride in differentiating ourselves from our peers. The reasons which led us to choose this particular…shall we say ‘theme’ springs from the telecoms happenings globally in the past couple of years, and we realised it’s high time the telecom industry needs a boost now. We sought to analyse the various new opportunities that all the players in the telecom market can grab to grow and become more profitable in the years to come. What are the current challenges that are holding them back to Invest, Innovate or Monetise? That’s what The Book of Boost endeavours to answer.

In particular we analysed:

  • Progression towards NGNs like LTE/ LTE Advanced, with selective case studies.
  • Effective PCRF modules based on consumers/ devices/ markets segmentation.
  • Different ways operators are managing their networks and where all they are making mistakes.
  • Newer ways to collaborate with mobile device makers, app developers, ISPs, MVNOs and OTT players.
  • How to explore pricing keeping devices/ consumer segmentation at the core.
  • SMS/ MMS business models that can help operators to fully extract revenues from these services which many consider passé.
  • The lesser known paths to optimise your CAPEX & OPEX.
  • Majority of operators’ business bottom lines are at the stage of no profit/ no loss. How can they come back in the game by ramping up revenues and reaping profits again?
  • Towards which side be investments inclined in future and what would be their probable gestation period, and ways to win investor confidence?

Such and many other matters we examined led us to come up with a unique research – A research which isn’t bent on any particular technology, country or fraternity – But rather, is specifically targeted at – Boosting up revenues for ALL connected to the Mobile Phone – be it mobile network operators at any stage of technology, device makers, app developers, ISPs, MVNOs, OTT players et al. Truly, a one for all, and all for one project – The Book of Boost!

E2. Towards Boosting Revenues & Profits!

The Book of Boost begins by fully understanding and appreciating the various challenges vis-à-vis mobile & wireless services, and also attempts how to work around those to ensure seamless operations while minimising costs for CSPs, device makers, MVNOs, NEMs and ISPs.

There has been a spurt in M&A in the past couple of years. However, operators face many risks, such as high amount of political uncertainty in the Gulf region and North Africa, severe macroeconomic issues in Southern Europe, and a questionable regulatory climate in the Indian subcontinent. Operators are clamouring to leverage the growth potential in emerging Asian economies; however, ownership issues have come up as hot topics in the region, mainly in Indonesia and Vietnam. The changing risk scenario creates rising uncertainty regarding deal valuations and draws greater management examination and investor caution.

So, in Chapter 2, we have regionally covered the 6 continents and studied each one from its unique perspective.

Following are the most prominent risks that are holding back telecom players or going to be a spoilsport in the coming years and the players in the value chain must strategise accordingly.

1. Investors’ Confidence at an all time low, Regulations adding more woes

The global telecom market has gone through a flurry of events that has largely been in the favour of consumers, telecom network & infrastructure providers, device manufacturers and the new breed of players like OTT providers and app developers. Ironically, telecom operators that once used to be the face of the telco market have now become mere spectators. This is not going to be the ideal condition for the telco industry to grow, generate wealth and add value to the end users for a longer period of time. And that’s the reason, investors that once looked at the telco market as very lucrative are now doubtful on the returns. Operators have managed their capital expenditure and balanced it well with free cash flow and dividends but strict capital expenditure control can restrict them to formulate new services at a fast pace. They must remain committed to invest in new growth avenues and at the same time monitor technology and consumer developments accurately to make sure their financial investments remain on the right track.

Moreover, regulatory uncertainties are impacting operators’ desire to invest in new markets. It is crucial for regulatory bodies to formulate pro-investment policies so that operators form workable stances on a range of issues and also to facilitate the relationship between fixed and mobile policies. All these parties must work in cohesion to achieve transparency over regulatory approaches.

2. Business Models not in line with Digital Services Opportunities

MNOs need to approach customers from a fresh perspective by letting go of their legacy strategies as values move from minutes of usage to volumes of data. Rather than battling churn, MNOs should target revenues from new services and think up a broader array of pricing models for monetising such services.

Other players like device manufacturers, network equipment vendors and independent software vendors will have equal opportunity by enabling and cooperating with each other in building platforms to offer digital services portfolio.

3. Innovation taking over Loyalty

Take a look at the few disruptive innovations that shifted the loyalty and changed the course of telco market with their fascination – LTE vs. WiMAX; Android vs. iOS, Symbian, BlackBerry & others; Internet calling & messaging vs. traditional communication services and last but not the least mobile apps vs. websites. Each of them has simply shaken the dominance of the other and in some cases even derailed the other from the track. With ever-growing innovations players in the telecom market need to spot the next big thing as early as possible and align themselves accordingly. Failing to do so, even the established players can lose their hold on the market and can even disappear to be present in the book of legends.

4. Underuse of Customer Analytics and Failure to target the RIGHT AUDIENCE

The successful MVNOs like Virgin Mobile have been able to build great brand equity in highly competitive markets just by focusing on users and their lifestyle. This calls for a big shift in the approach from operators that used to focus more on network and less on the users.

MNOs need to have detailed business intelligence about their customers so that they can identify the segments that will be more profitable for longer period of time.

These factors will help them understand customer mindset and in reusing network data in collaboration with other parties to offer services with unparalleled QoS. Improved information can also assist operators in cutting OPEX while meeting regulations from governing bodies. How this can be done has been aptly covered inside the Report.

5. Improper M&A and Partnership Strategy

The nature and associated risks of mergers and acquisitions have changed despite a surge in such activities. But mergers and acquisitions are significant in upcoming market segments. Operators need to clearly differentiate between when they should acquire and when they should collaborate.

A detailed analysis with solutions have been presented on the above issues, peculiar geographical-based problems operators face, such as bleeding ARPUs, network failures, churning subscribers, unfavourable regulatory policies, grey market products, devices’ incompatibility, failure to recover RoIs - All have been aptly analysed so that MNOs, device makers, network vendors, app developers and ISPs get a better grasp of the real hurdles out there and can devise appropriate roadmaps/ collaborations to come back on the track – from which many are slipping fast.

Over the past few years, the answer to the question “Is Lean better?” has usually been in the affirmative, as companies big and small have adopted it in a bid to taste its popularity. And yet, while Lean thinking gets popularised globally, the real question lingers: “Why do some organisations find success with Lean strategies while others fail?” Our Report analyses the concept and the different ways you can implement lean strategies for consistent growth.

Chapter 3 is about market revival with altering, differing strategies to overhaul your product portfolio.

The Chapter contains a detailed analysis of mobile apps and business models/ strategies on MNOs/ Vendors/ App stores and developers as well as related forecasts.
With the emergence and growing importance of apps, mobile network operators have also shown interest in launching their own app stores and/ or collaborating with app developers. But most of the initiatives were not so successful and eventually MNOs decided to dispose their ideas. Now, the question is at a time when apps are in great demand and few players like Apple App Store and Google Play have tasted huge success in their respective app stores then what went wrong with other initiatives? We have analysed the app store launched by Verizon to understand the app economics and take lessons to visualise the other ways in which operators can take advantage of the app–fodder.

Talking of mobile platforms, Android and iOS have performed really well for a long time now. However, both of them have certain limitations that are creating need as well as opportunity for new OS. Tizen is one of such OS to join the family of mobile platforms. We have covered and analysed the entry of this new operating system – Which might give Android/ iOS a run for their money in the long run. Besides, other new OS such as Sailfish, Firefox and Ubuntu are also mentioned.
Another case is on Apple App Store and Google Play – analysing which might beat the other, and if so, how?

Besides apps, the Chapter covers M-Commerce services in depth, inculcating the various intricacies with all parties concerned, with suggestive business models to serve as roadmaps to all players concerned. The Chapter entails a case study on the M-Payment service M-PESA by Kenya’s Safaricom – as to how the service came into existence and what factors/ marketing strategies made it such a huge success that it became the second-largest source of revenue for the telco for FY 2012. The service was the first of its kind to be launched in the African nation and is generally regarded as a successful implementation that should be used as a model for other emerging economies.

One of the other verticals analysed is M-Health, with modules to break barriers and reap profits from this service which is bound to create ripples in times ahead.

We next discuss mobile multimedia services. The growth in mobile multimedia services directly uplifts the data usage. In 2012 the data plans accounted for around 65% of the total mobile multimedia revenue. This also shows that MNOs are the prime beneficiary of mobile video services. The growth of mobile multimedia services is also attracting advertisers to leverage this medium for marketing their products and services. The impact can be seen as the advertiser’s spend almost doubled in 2012 reaching US$11.26 million from US$6.3 million in 2011. Business models and strategies for profitable launches in new markets have been presented, with a case study on SK Telecom.

Mobile contents have come up as one of the most talked-about industry segments and it’s likely to remain in prominence in future as well. But operators have not been able to leverage this segment as much as content developers and OTT players. Ironically, operators are better positioned to take advantage of this new trend owing to their existing relationship with customers and their reliance on operator billing. The case of NTT DoCoMo vis-à-vis mobile contents, which we have presented, is really encouraging for other MNOs that want to generate revenues from content offerings.

And, latest/ upcoming technologies to entice even the most stubborn prospective subscribers have been thoroughly covered – like the concept of context awareness, public security LTE, 3G/ 4G-enabled VAS and tid-bits like mobile QR codes, NFC and accessories in context of their current value in operators’ income.

There are smart devices being launched like intelligent watches, health and fitness monitors, and monitoring devices for pets. All of the mobile future forecasts have a centralised concept. The future of mobility lies in the concept of context awareness and providing intelligence based on that context.

Let’s check Layar, a company working on augmented reality. It has developed an application that maps a live camera image of the user’s surroundings with relevant information. An image of a storefront on the street could contain overlaid information about existing sales and promotions. One could point a camera at an image in a magazine and the app could suggest an online boutique to purchase the dress advertised. Another example is the world's largest taxi app “myTaxi”. It connects customers with taxi cabs in different cities on the basis of the relative location of the customer to the taxi, time, desired destination, cost and other factors. Apart from basic features like online booking and fare calculator, the app has some really interesting features like making cashless and cardless payment, option to rate/ save as favourite a driver (he will be on preference list on next request) and live tracking of your taxi's arrival with details such as the driver's picture, name, remaining distance and arrival time.

We have covered these and few other concepts of the future of mobility within the Chapter.

A section has been provided on MVNOs. Starting an MVNO is quite simpler compared to an MNO; however, tasting the success is a different ball game altogether. Even in a market that is crowded with MVNOs, there must be room for some innovative propositions. Success will be achieved by focusing on a segment and its specific need – and offering something you are really good at. The future is about connecting machines to machines and identifying niches in different verticals and leveraging the data growth. PosteMobile is a classic example that evolved its business model from traditional mobile services to a range of financial services on mobile. No doubt the operator has been adjudged as the most innovative MVNO in 2013.

After covering so much how could we overlook the rising popularity of cloud computing? The new wave of cloud systems and technologies is creating a buzz and cloud computing has the potential of ubiquitous connectivity. Mobile cloud data will make up for 80% of the total data on 4G networks by 2018. Enterprise services will hold immense value, representing a larger and more profitable revenue stream for mobile operators.

Roaming is undoubtedly going to remain a hot topic this year and beyond. Roaming on 4G/ network collaboration on profit-sharing basis/ hotspotting/ 4G in business use/ portfolio planning in local and overseas markets have been studied in this Chapter that could be lucrative for operators this year and ahead. Currently mobile roaming is a US$50 billion market and will reach around US$91 billion by 2018. The share of LTE roaming revenue will be approximately 45% in 2018 from just 6% in 2013.

Entering a new market is always accompanied by a lot of risks and requires a foolproof strategy to counter the challenges that might come in the way of reaping out the investments. Taking this into perspective we have provided a section on viral go-to-market strategies inside the Chapter, with a case study on Bharti Airtel – Which would help the operators that are looking at newer business opportunities in emerging markets such as Africa and Asia Pacific.

Chapter 4 has been devoted entirely to consumer engagement and relationships – With the focus on continually, and disruptively evolving your VAS strategies and enhance QoS to keep your subscriber base not only intact, but on an upward swing. Special focus has been put on consumer segmentation, pricing and service bundling – so that operators don’t make the mistake of ‘putting all their eggs in one basket.’ Business models on prepaid and postpaid offerings with case studies have been provided to maximise your revenue.

Chapter 5 talks about effective network management and minimising costs.

An ‘excellent’ network doesn’t necessarily imply huge investments. Based on our study of various operators’ network models across differing geographies, we have endeavoured to outline simple steps whereby an operator can draw in considerable revenue with minimum network investment. And, by the way, not every operator out there is on the verge of 4G. We haven’t left that out of realm and a section of this Chapter analyses optimum service delivery mediums/ pricing packages for such mobile operators, with appropriate business models wherever possible, with a case study on the network upgradation and modernisation strategies of Maxis Malaysia. We have included certain ‘progression’ guidelines for operators as to how they might move from 2G to 3G and beyond, while keeping CAPEX & OPEX tamed.

Network sharing is an effective way for operators to lower their financial burden. They can adopt passive sharing of sites and towers as well as active sharing of network. LTE network possesses a flat all-IP network makeup which is most suitable for active network sharing. Operators opting for this can save atleast 40% more than their counterparts operating on a passive network sharing architecture. The backhaul cost, accounting for around 50% of the CAPEX and required for deploying RAN equipment in urban and metropolitan areas can also be shared by the operators. For example, in Canada, Bell and Telus formed a network sharing agreement stating that they will overlay their EVDO network with HSPA+ to launch their LTE services - Bell did so in September 2011, while Telus launched its LTE services in February 2012. Similarly, Net4Mobility is a joint venture in Sweden between Tele2 and Telenor, whereby both developed their LTE network together. A case has been presented on Bharti Airtel to further explore the concept.

Side by side we have studied PCRF module indepth, with effective business models as well as an interesting case study on Verizon Wireless’s approach towards PCRF. Besides, there’s an exclusive case study on LTE – pitting the pioneer TeliaSonera with three big telcos – Verizon Wireless, SK Telecom and NTT DoCoMo, which could help those on the verge of planning LTE launches soon/ or those who have already deployed commercial LTE, to monetise it effectively.

The next concern almost all operators have in common is mammoth data traffic. We have done a comparative analysis of different ways to manage traffic offloading within the Report so that your networks function seamlessly.

In Chapter 6 we have come to the epitome of our research: Boosting the bottom lines/ profit margins of all concerned players.

The first section of the Chapter speaks exclusively about disruptively overhauling your business strategy vis-à-vis service offerings/ mobile devices/ operating systems/ pricing.

It has been widely observed in the telecom market, especially in the case of MNOs, that although apparently everything is fine: customer base is increasing, users are subscribing to the service, the operator portfolio is in place, but that’s not reflecting into ARPUs. The reason is your customers are idle, either partially or fully. But, the question is: Why? One of the reasons is that somehow you are ignoring their needs or competition is offering better solutions or your users are looking for better solutions. Here comes the role of disruption – no matter what you offer - devices/ services/ software, you need to revamp them time and again to make them more useful and appealing to your users. Acclimatise and transform your product and services, otherwise you will be outdated.

We also took into perspective the VoIP challenge and how operators can turn ‘threats’ into ‘opportunities’, especially in regards to the sudden upswing of OTT players. It’s becoming progressively tough to charge for communications services, so most OTT providers are forced to give their core messaging, voice and video chat features free of cost. The only way to make money is to use those networks as passages for paid content. OTT providers are contemplating many revenue streams like Ad-based or free-to-use functionality and paid premium functionality. How can MNOs adapt to these business models to offer cheaper/ free basic communication services?

With the advent of VoLTE HD Voice, and other innovative VAS (based on LTE/ LTE Advanced) what are the challenges that will put pressure on OTT players and how long they are going to enjoy high margin business? The Chapter critically analyses OTT battleground and new technologies that are going to help telcos to challenge OTT players.

Consumer segment currently accounts for the major source of revenue for operators. This segment is going to remain the focus area of operators in the foreseeable time due to its size; however, the enterprise segment holds really immense potential for MNOs.

The potential for growth in the corporate segment is higher than in consumer market in view of the rapidly rising competition for consumers’ spending. To leverage this potential business models for corporate customers must be based on new themes to provisioning alongside collaborative approaches to service development and delivery.

As the customers’ mindset accelerates operators must adapt their service offerings and customer experience to accommodate these changes so as to build upon customer engagement.

The worldwide mobile service revenue (voice, messaging, handset data plans, mobile broadband and enterprise apps, and management services revenues) from business users will reach US$360 billion by 2018. On the other hand, the enterprise cloud-based services would double by 2018 from the current size of US$18.3 billion in 2012. MNOs must strive to engage with enterprise segment and align themselves to offer innovative business solutions. The Report tells how and where the opportunity is.

Another section speaks about mobile devices and related forecasts: Smartphones, Tablets and Phablets. Technologies, not just limited to M2M but also NFC and multi-screen content, are incrementing the value of interconnectedness of devices. Whether high-end or low-end devices, there is room for all, with an interesting case study on Huawei.

And yes – We haven’t left out the exciting possibilities for fixed-line operators. They would be here to stay, albeit, how they reform their business strategies in the advent of NGN mobile and wireless arena would be the focal point on how they perform in the coming years. Can fixed-line and mobile operators team up somewhere whereby both jointly reap increasing revenues? It must be noted that fixed line will not only carry at least ten times more traffic than the mobile network during the next 5-8 years, but it will also be crucial for the widespread growth of mobile broadband. In fact, a combination of fixed and mobile network will be the business model that will work best in the coming years and will facilitate the needs of next generation connectivity and mobility. The Report includes certain roadmaps and suggestions for such fixed-line and mobile operators.

“Old tricks” will not be sufficient to win the new games. So, what should be your approach and how can you retain and prolong your success in the telecom market? The Report rounds off with thought provoking guidelines for all the players in the value chain (viz. MNOs, MVNOs, Device/ Chip OEMs and NEPs) that will help you transform and emerge as a game changer.

E3. Methodology

We took into our ambit the past few years and for this particular study we regionally explored some of the prominent mobile operators, device makers, infrastructure providers and interviewed several telecoms experts, C-level and mid-level executives.

Information Sources: Major sources include both face to face and telephonic interviews with telecom industry experts and consumers. It also includes various surveys that were conducted in different regions of the world.

Other sources comprise of organisations’ websites and financial reports, books, trade journals, magazines, white papers, industry portals and numerous government sources.

Forecasting Methodology: We used extensive database of macroeconomic and sector specific data to generate industry forecasts. We used Judgment-based methods like the Delphi method and Extrapolation; Time series methods like Exponential smoothing, Cyclical & seasonal trends and Statistical modeling, as well as the Survey method. The initial baseline projection is computed with the most recent market data. After an initial baseline forecast, all probable future macroeconomic and industry specific occurrences and assumptions are taken into consideration to generate the final forecast.

Who Needs This Report?

  • Mobile Operators – For a better understanding of the current telecom market dynamics across the globe. The study provides global opportunities and competition, Business Case Studies and guidelines to boost your current market position.
  • Mobile device ODMs – For understanding the unique marketing opportunities in unserved/ underserved regions.
  • Mobile device OEMs – For strategising their production and pricing.
  • Content Vendors – For the possible changes that content development might go through and issues of adaptability solved.
  • App Developers – To find out unexplored revenue opportunities in apps.
  • Consumer Electronics Companies – For coming up with, and integrating mobile Internet into consumer durables.
  • Processor Vendors – For streamlining their products for mass market adoption.
  • Wi-Fi, Bluetooth, GPS semiconductor vendors – To overcome security concerns, and to exploit newer opportunities/ partnerships with device makers.

Key Questions Answered

  • How MNOs can maintain market stickiness and longevity, while securing investors’ confidence?
  • How services should be offered in different phases for smooth transition to fixed-mobile convergence (FMC)
    and what are the new avenues where fixed-line operators can team up with mobile operators?
  • In an environment of rising security issues, how to explore a credible cloud computing model to improve client trust?
  • How to develop strong value proposition by addressing the digital lifestyle opportunities and maximise Customer Lifetime Value?
  • How can MNOs leverage maximum gains from low consumer spend markets?
  • Where is the real profit in tidbits such as QR codes and NFC, and how MNOs can leverage them to avoid churn?
  • What are the new verticals (m-commerce, m-health and m-entertainment etc.) MNOs can explore to generate more revenues?
  • What are the new ways SMS & MMS can further be exploited by MNOs?
  • Why conservative approach of investment (CAPEX) can be a better option in many markets?
  • What are the new ways OTT players and MNOs can have a successful collaboration over a longer period?
  • What Samsung should not overlook with Tizen?
  • Network infrastructure providers need to provide customised solutions to MNOs – The Whys & Hows.
  • How to collaborate with other players in the ecosystem for shortening your time to market?
  • How the scenario would shape up between content aggregators/ developers and MNOs in the Mobile VAS arena?
  • How uncertainties (regulatory hurdles, unstable economic climate, and political issues) can be assessed so as to turn them into strategic advantages?

Key Findings

  • Mobile device manufacturers & OTT players have hijacked almost entire attention of customers and MNOs are currently reeling under that pressure. However, they should not panic but need to safeguard their position and avoid unnecessary risks. Identifying the segments with high profit margin and holding their position in the market will offer great opportunities to monetise their investment in the long run.
  • Our survey revealed that majority of OTT players are in pressure to collaborate with MNOs/ ISPs to ensure QoS and believe that QoS can only be guaranteed by partnering with data providers.
  • Smart mobile devices are slowly entering into the workplace and the trend has started impacting the industry in two ways. On the one hand, demand for data and mobility services is growing exponentially, and on the other hand it is also driving enterprises to replace computing devices or promote BYOD.
  • The demand for smartphones is growing rapidly and it is going to make more than 50% of the total mobile phones shipped globally in 2013. The worldwide shipment for smartphones will reach 1.7 billion by 2018.
  • Strong demand for Android tablets and the introduction of new iPad mini from Apple have greatly boosted the worldwide tablet market. In fact, tablet market is going to heat up further with the introduction of more affordable devices from Chinese vendors and the introduction of Apple’s iPad mini 2 (by the end of 2013 and most probably at significantly reduced price). We predict the total worldwide shipment for tablets to cross 300 million mark in 2017 and reach close to 345 million in 2018.
  • The worldwide mobile service revenue from business users will reach US$360 billion by 2018. On the other hand, the enterprise cloud-based services would double by 2018 from the current size of US$18.3 billion in 2012.
  • Most of the activities in the telco industry are currently revolving around mobile broadband. However, it must be noted that fixed line will not only carry at least ten times more traffic than the mobile network during the next 5-8 years, but it will also be crucial for the widespread growth of mobile broadband. In fact, fixed mobile convergence (FMC) will be the business model that will work best in the coming years through optimal use of fixed and mobile technologies.

The Book of Boost 2014-2018

Table of Contents

Chapter 1. Executive Summary

Chapter 2. Regional Analyses of Core Problems
2.1 Africa
2.1.1  Operators Lagging in Network Infrastructure
2.1.2  Burden of Overheads
Figure 2-1   Global Corporate Taxation by Region, 2011
Table 2-1    Examples of Taxes and Fees Applying to Mobile Operators in SSA, 2011
2.1.3  Returns Disappointing
2.1.4  Regulatory Risks and Issues Adding to Woes
2.1.5  Operators Engaged in Price Battles
2.1.6  ARPUs nose-diving across the region
Figure 2-2   Africa Unique Subscribers by Region (In %), 2012
2.1.7  Limited Spectrum to offer MBB
Figure 2-3   Available Mobile Spectrum in Selected Countries (In MHz), 2012
2.2    Asia Pacific
2.2.1  Competition Driving Down the Prices, Profit Margins and RoIs
Figure 2-4  Operators’ RoIs in Selected Markets in Asia Pacific (In %), 2008 and 2010
2.2.2 Skyrocketing Data Traffic Affecting QoS
2.2.3 Overcrowded Device Market with Flourishing Grey Products
2.2.4 Unpredictable Regulatory Policies
2.2.5 Early Launches of NGNs: A Case of Too Much, Too Soon
2.2.6 Cultural Constraints
2.3   Latin America
2.3.1 Voice Services Reaching Saturation
2.3.2 Entry of MVNOs Intensifying Competition and Leading to Price Wars
2.3.3 Declining ARPUs, Low Consumer Spend and Limited Customer Base
2.3.4 OTT Contents Eating Out Revenue Share of MNOs
2.3.5 Wi-Fi Abundance Affecting ISPs and MNOs
2.4    North America
2.4.1  Matured Market
2.4.2  Cut-throat Competition and Lack of Cooperation
2.4.3  Burden of Device Subsidies
2.4.4  North American Customers Seek Novelty and High Quality
2.4.5  Low Density Rural Markets
2.4.6  Unstable Economy
Figure 2-5   Real GDP of US, Canada, Japan, Euro Zone, Non-Japan Asia and Latin America (Y-o-Y % Change), 2012 - 2014
2.4.7  Mobile OTT Services Affecting Operators’ Revenues
2.5    Middle East
2.5.1  Political Instability
2.5.2  Competition Resulting in Price Wars, Declining ARPUs and Voice Revenues
2.5.3  Scarcity of Local Mobile Content
2.5.4  Cultural Barriers
2.5.5  High Cost of Ownership
2.5.6  Unexpected Government Interventions
2.6    Europe
2.6.1  Economic Instability
2.6.2  MVNOs Providing Opportunities, but also Threats
2.6.3  OTT Players affecting MNOs Voice/ Messaging Revenue
2.6.4  Insufficient Data Revenue
2.6.5  Unfavourable Regulations
2.6.6  Device Subsidies
2.6.7  Competition Bringing Down RoIs

Chapter 3.    Strategies for Market Revival and Portfolio Development
3.1   Mobile Apps – What’s your app strategy (MNOs, Vendors, App Stores, Developers)?
3.1.1 Monetising Your Business Models
Figure 3-1  Average Number of Apps Installed on a Smartphone in the US, 2011 and 2012
Figure 3-2  US Web vs. Mobile App vs. TV Consumption per day (In Minutes), 2010 – 2012
3.1.2 Strategy for New App Launches
3.1.2.1  Fabrication Dilemma – Big question “What to offer?”
3.1.2.2  App Categories
Figure 3-3 Worldwide Smartphone App Consumption per day by Category (In Minutes), Q1 2011 and Q1 2012
Figure 3-4 Fastest Growing App Categories, October 2011 - March 2012
3.1.2.3 App Platforms: Where is the money – Android, iOS or Figure 3-5 Evernote’s Average Revenue per User per App by Operating System (In US$), 2012
3.1.3    Case Study: Tizen – All set to disrupt android supremacy?
3.1.4    Case Study: Apple App Store vs. Google Play vs. Blackberry World and Windows Phone Store
Figure 3-6 Mobile App Store Size (In Numbers), May 2013
Figure 3-7 Number of Applications on iTunes App Store vs. Google Play, July 2008 – July 2012
Figure 3-8 Apple App Store Paid vs. Free Applications (In %), 2012
Figure 3-9 iOS Application Downloads in Key Markets (In %), October 2012
Figure 3-10   Google Play Application Downloads in Key Markets (In %), October 2012
Figure 3-11   Apple App Store Revenue (In US$ Billion), 2011 and 2012
Figure 3-12   Average Prices of Most Popular Apps – iPad vs. iPhone vs. Android (In US$), January 2012
Figure 3-13   Average Revenue per App per Month (in US$), 2012
3.1.5    Revenue Opportunities via Apps for Small-to-Midsized Vendors
3.1.5.1 Mobile App Revenue
Figure 3-14   Worldwide Mobile App Revenue Forecast (In US$ Billion), 2011 - 2016
Figure 3-15   iOS Revenue in Key Markets (In %), October 2012
Figure 3-16   Google Play Revenue in Key Markets (In %), October 2012
Figure 3-17   Revenue Generated by Applications Available in the Local Languages & Apps Available in Local Language (In %), May 2012
3.1.6    Should every operator launch their own app store?
3.1.6.1 Case worth Analysing: Verizon Apps
3.1.7    MNOs, Vendors and App Developers’ Collaboration Opportunities
3.1.7.1 High Bandwidth Apps
3.1.7.2 High Traffic Apps
3.1.7.3 Limited User Apps
3.2  Opportunities in the M-Commerce Arena
Figure 3-18   Revenue Share of M-Commerce as a percentage of E-Commerce, 2012 & 2016
Table 3-1  Fastest Growing M-Commerce Android Apps by usage in the UK, May 2012 - October 2012
3.2.1    M-Payment Market is Heating Up
3.2.1.1 MasterPass: A New M-Payment System from MasterCard
Figure 3-19   Worldwide M-Payment Revenue (In US$ Billion), 2011 – 2016
Figure 3-20   Worldwide M-Payment Users (In Million), 2011 – 2016
3.2.2    Measuring RoI for MNOs from M-Payment Services
3.2.2.1 Case Study from Kenya: Safaricom’s Mobile Money transfer service MPESA
Figure 3-21   Safaricom’s Revenue (In Sh Billion) for the first half of FY 2012
Figure 3-22   Safaricom’s Revenue Break up (In %) for the first half of FY 2012
Figure 3-23   Financial Services Outlet in Kenya, 2009
3.2.3    Lean Principals for Consistent Growth
3.2.3.1 How to come up with minimum viable products for maximum gains?
3.2.3.1.1  How did T-Mobile drive smooth m-payment adoption?
3.2.3.2 How to attract new customers?
3.2.3.3 Ways to Drive Customer Loyalty via Early Adopters
Figure 3-24   Customer Life Cycle
3.2.3.4 Retention and Brand Building using Disruptive Tactics
3.2.4    M-Payment Types
3.2.4.1 Premium SMS-based Transactional Payments
3.2.4.2 Direct Operator Billing
3.2.4.3 Mobile Web Payments (WAP)
3.2.4.4 NFC (Near Field Communication) Based Payments
3.2.5    Let’s Analyse the NFC Mobile Payment Market
3.2.5.1 NFC Devices Ecosystem
Figure 3-25   Worldwide NFC M-Payment Forecast (In US$ Billion), 2012 – 2018
Table 3-2  List of Available NFC Devices, April 2013
3.3  M-Health: Unveiling the Hidden Potential
3.3.1    M-Health Services Categories
3.3.2    How to drive M-Health adoption?
3.3.2.1 Barriers to M-Health Technology Adoption for Healthcare Providers
3.3.2.2 Barriers to M-Health Technology Adoption for Patients/ End-Users
3.3.2.3 Ways to Overcome Challenges and Drive M-Health Adoption
3.3.3    M-Health Avenues
3.3.4    Case Study: Vodafone M-Health
Table 3-3  Vodafone M-Health Solutions
3.3.5    Current Market Landscape and Future Revenue Potential
Figure 3-26   Worldwide M-Health Revenue (In US$ Billion), 2013 – 2018
Figure 3-27   M-Health Revenue by Region (In %), 2018
Table 3-4  M-Health Revenue by Region (In US$ Billion), 2018
Figure 3-28   M-Health Revenue by Stakeholders (MNOs, Device Vendors, Healthcare Providers, Content/ Application) (In %), 2018
Table 3-5  M-Health Revenue by Stakeholders (MNOs, Device Vendors, Healthcare Providers, Content/ Application) (In US$ Billion), 2018
Figure 3-29   M-Health Revenue by Various Categories (In US$ Billion), 2018
Figure 3-30   M-Health Revenue by Various Categories (In %), 2018
3.4   Monetising the Mobile Multimedia Services
3.4.1 Key Advantages
3.4.1.1  Growth in Data Revenue
Figure 3-31    Worldwide Mobile Multimedia Revenue (In US$ Million), 2012
Figure 3-32    Worldwide Mobile Multimedia Market Y-o-Y Growth (In %), 2011 and 2012
3.4.2 Key Differentiator to Churn Control
3.4.2.1  Case Study: SK Telecom, South Korea
3.4.3 Strategies to Revive Mobile Multimedia Services
3.4.3.1  Which type of segmentation is best suited for multimedia services?
3.4.3.2  What to offer?
3.4.3.3  Business/ Revenue Model to make Mobile Multimedia Services Attractive & Profitable
3.4.4 Which are the most profitable markets for launching multimedia services?
3.4.5 Revenue Opportunities for Vendors
3.5   Contents Based Services
3.5.1 Case Study: NTT DoCoMo d-market
Figure 3-33    NTT DoCoMo Smartphone Sales FOMA vs. Xi (In Million Units), FY2010 – FY2012
Figure 3-34    NTT DoCoMo d-market Revenue (in Yen Billion), FY2012 and FY2015
Figure 3-35    NTT DoCoMo VIDEO Store Subscribers (In Million), 2012
3.6   Analysis of Latest Technologies to Woo Users
3.6.1    Encashing Mobile QR Codes
Figure 3-36   QR Code Scans per Minute, Q2 2011 and Q2 2012
Figure 3-37   QR Code Scans by Age Group, 2012
Figure 3-38   QR Code Scans by Gender, 2012
Table 3-6  Top five QR Code Campaigns by Content Type, Q2 2012
Table 3-7  Top five QR Code Campaigns by Industry, Q2 2012
3.6.2    Where lays the real profit in mobile cloud?
3.6.2.1 Recommending a Virtual Super Cloud Business Model
Figure 3-39   Worldwide Public Cloud Services Market (In US$ Billion), 2012 - 2018
Figure 3-40   Worldwide Public Cloud Services Market by type (In US$ Billion), 2012 - 2018
Figure 3-41   Virtual Super Cloud Business Model
3.6.3    3G-enabled VAS
3.6.4    4G/ LTE VAS
3.6.4.1 GenX VAS
3.6.4.2 Connected Cars
Figure 3-42   Worldwide Connected Cars Market by Shipments (In Million), 2013 – 2018
Figure 3-43   Worldwide Connected Cars Market by Revenue (In US$ Billion), 2013 – 2018
3.6.4.2.1   Example 1: Verizon's 4G Venture Forum for Connected Cars
3.6.4.2.2   Example 2: BMW’s LTE Adapter – Offers LTE Wi-Fi with NFC facility
3.6.4.3  Broadcast Gaming
3.6.4.4  Public Safety LTE
Figure 3-44   Worldwide Public Safety LTE Revenue (In US$ Billion), 2013 - 2018
3.6.4.5 4D Entertainment
3.7   Revive your Investments by Leasing Unused Spectrum to MVNOs
3.7.1    MVNO Business Model – Taming Threats to Ensure Long-Term Success
Figure 3-45   The MVNO Business Model
Figure 3-46   MVNOs’ Activities along the Value Chain
Figure 3-47   Worldwide MVNO launches, by Region, 1991-2010
3.7.2    What is driving the MVNO growth?
Figure 3-48   Worldwide MVNO Subscriptions (In Million), 2010 – 2016
3.8   High Speed Network Markets
3.8.1    Opportunities in 4G Roaming – Network Lease-out, Data Exchange Revenue
Figure 3-49   Worldwide Roaming Revenue and Share of LTE Roaming Revenue (In US$ Billion and In %), 2013 – 2018
3.9  Emerging Markets: Operators/ Vendors Need to Bet on for Future Growth
3.9.1    What should be your go-to-market strategy?
3.9.1.1 Case Study: Bharti Airtel
3.10 How lucrative are the Greenfield markets?

Chapter 4.    Let’s Catalyze Customer Development & Analyse Churn Management
4.1   Social Media: Newer Tactics to win Spendthrifts – The Youths
4.1.1 Brand Presence – How social you are?
Figure 4-1  Levels of Brand Social Engagement
4.2   Customer Segmentation, Pricing & Service Bundling: Time for Overhauling
4.3   What should be your VAS strategy in different markets?
4.3.1 VAS Business Models for Emerging Markets: What to offer & how to monetise?
4.3.2 Matured Markets: What the market demands & How to meet the customer’s expectations?
4.4   Your Darling Dollar Strategy: Prepaid vs. Postpaid
4.4.1 Comparison of Go-to-Market Strategy – Unefon Mexico vs. Virgin Mobile UK
Figure 4-2  Prepaid Mobile Users: Smartphone vs. Feature Phone in Key Markets (In %), 2012
4.5   Exploring the Opportunity in Enterprise Segment
Figure 4-3  Worldwide Revenue Share for MNOs – Consumer vs. Enterprise vs. Wholesale (In %), 2012
4.5.1 Enterprise Mobility Services
4.5.2 Unified Communications Services
4.5.3 Enterprise Social Media
4.5.4 Cloud Offerings
4.6    Churn Management - Preparing for the Worst
Figure 4-4  Churn Behavior in Key Regions, 2012
4.7    The Next Level – QoE, Success Mantra of the Future

Chapter 5. How effective are you at Network Management, Upgradation and QoS? Let’s Find Out Before it’s Too Late!
5.1    Evolved Packet Core (EPC) Model: Key to excellent traffic management and a great QoS
Figure 5-1   The Open Evolved Packet Core
5.1.1  Which is the best model? What should be your approach to EPC deployment?
5.2    Policy Management
5.2.1  How PCRF can be implemented to take maximum benefit from 3G/ LTE investments?
Figure 5-2   Policy and Charging Control Architecture
Figure 5-3   Key PCRF Interfaces
5.2.2  Selecting the right vendor
Table 5-1    Major PCRF Vendors, Solutions and their Clients
5.2.3  How MNOs can minimize their PCRF/ Policy Server deployment costs?
5.2.4  Case Study: Analysis of Verizon Wireless’ approach to PCRF
5.3    Strategic Importance of Wi-Fi Beyond Traffic Offloading
Table 5-2    Strategic Value of Wi-Fi beyond Traffic Offloading
5.4    How to tame the CAPEX and OPEX?
5.4.1  Case Study: Bharti Airtel – Pioneered the Innovative Business Model of Outsourcing and Sharing
Figure 5-4  The Rise of Bharti Airtel’s Empire
5.5    Have you reaped your 2G/ 3G investment? Think Again!
5.5.1  Decide timing of Network Upgradation
5.5.2  Worldwide Network Upgradation and Shifting Customers to More Advanced Networks
5.5.3  Case Study: LTE approach - Top Three vs. the Pioneer (Verizon Wireless, SK Telecom and NTT DoCoMo vs. TeliaSonera
Table 5-3    LTE Subscription of Top three Operators (In Million), March 2013
5.5.3.1    Verizon Wireless
Figure 5-5   Verizon's LTE Subscribers (In Million), Q1 2011, Q1 2012 and Q1 2013
Figure 5-6   Verizon's 4G LTE POP (In Million), Q1 2011 - Q1 2012 and Q2 2013
Figure 5-7   Verizon's 4G LTE Devices Sales (In Million), Q1 2012 - Q1 2013
5.5.3.2    SK Telecom
Figure 5-8   LTE Subscribers in South Korea (In Million), 2011 – 2013
Figure 5-9   SK Telecom's LTE Subscribers (In Million), 2011 – 2013
5.5.3.3    NTT DoCoMo
Figure 5-10  NTT DoCoMo's LTE Subscribers (In Million), December 2010 – August 2012
5.5.3.4    TeliaSonera
5.5.3.5    The Sluggish Sweden
5.5.4   Case Study: Analysing the Network Upgradation and Modernisation Strategy of Maxis Malaysia (2G, 3G and 4G/ LTE)
5.5.4.1    Country Profile - Malaysia
Table 5-4 Country Profile – Malaysia
5.5.4.2    What made Maxis to plan Network Upgradation and Modernisation?
Figure 5-11  Maxis Non-Voice Revenue (In RM Million), FY 2011 - FY 2012
Table 5-5 Maxis Non-Voice Revenue Break-up, Q4 2012
5.5.4.3 Evaluating Maxis’ Network Modernisation Investments and its Impact on the Maxis’ Top and Bottom Line
Figure 5-12  Maxis Network Modernisation Expenditure (In RM Million), FY 2009 - FY 2012
Table 5-6 Maxis Performance (Growth in Subscriptions, Revenue and EBITDA), 2009 - 2012
Figure 5-13  Maxis Mobile Subscriptions (In Million), 2009 - 2012
Figure 5-14  Maxis Revenue (In RM Million), 2009 - 2012
Figure 5-15  Maxis EBITDA (In RM Million), 2009 - 2012
Figure 5-16  Maxis Stock Performance (In MYR), 2011 – April 2013
5.5.4.4    Benchmarking Maxis’ EV/EBITDA with its Peers’ & Others’
Table 5-7 EV/ EBITDA of Maxis and its Peers, April 30, 2013
Table 5-8 Maxis’ Valuation based on EV/ EBITDA, April 30, 2013

Chapter 6. Get Ready for The Walkway to Profit!
6.1    How to Put Accelerator on ARPU Meter?
6.1.1  No Matter What You Offer – Devices/ Services/ Software - Today’s Telco Market Needs DISRUPTIVE INNOVATION!
6.1.2  Why winning existing customers again and again is so much important?
6.2 The OTT Challenge (Communication & Media)
6.2.1  How serious is it a threat for Telecom Operators & how secure is the future of OTT players?
6.2.2  Case Study: Astonishing growth of OTT players → → Tango: Leading OTT Mobile Video Calling Service
Figure 6-1   Tango Subscribers (In Million), October 2010, June 2011, September 2012 & November 2012
6.2.3  Case Study: KDDI Skype Partnership – if you can't beat 'em, join 'em
Figure 6-2   KDDI ARPU Growth (In JPY), Q3’ 2009 – Q2’ 2011
6.2.4  Case Study: Hike – Be brave to beat yourself!
6.2.4.1   What propelled the Indian upstart on top?
6.2.4.2   Hike’s route to revenue
Figure 6-3   Hike App Downloads (In Million), February 2013 & April 2013
6.2.5  Who wins the VoIP - VoLTE Tug of War?
6.3    Strategies to Boost up Profit Margin
6.3.1  Which will drive the maximum revenue in medium term – voice, SMS/ MMS or broadband?
Figure 6-4   Worldwide Revenue Share of Voice, SMS/ MMS & Broadband (In %), 2013, 2016 & 2018
Figure 6-5   Vodafone Group Service Revenue Breakdown, 2012
Table 6-1    MNOs’ Data vs. Voice Revenue Breakdown by Country (In US$ Billion)
6.3.2  What should be your data strategy for maximising ROI?
Figure 6-6   Types of Data Plans among Smartphone Users in key Markets (In %), 2012
6.3.3  Data Package – How to obtain a profitable mix which is appealing also?
6.3.3.1   Case Study: Verizon’s share everything plan
Figure 6-7   Verizon's Unlimited Talk & Text + Shared Data Plans, May 2013
Figure 6-8   Verizon Wireless’ EBITDA Service Margin (In %), Q3 2011, Q2 2012, Q3 2012 & Q1 2013
Figure 6-9   Verizon Wireless’ Uptake of Shared Data Plan (in %), October 2012 – April 2013
6.4    Fixed Line has its Role to play
6.4.1  Fixed Mobile Convergence (FMC)
6.4.1.1   Example 1: Verizon FMC App
6.4.1.2   Example 2: Com Hem FMC App
6.4.2  Traffic Offload from Mobile Networks to Fixed Networks
Figure 6-10 Verizon Wireless’ Uptake of Shared Data Plan (in %), October 2012 and April 2013
Figure 6-11 Worldwide Cellular Traffic vs. Mobile Devices (Offloaded) Traffic on Fixed Line (In %), 2012 - 2018
6.4.3  Enterprise Segment Still Holds Billion Dollar Potential
6.4.4  Revival Strategy for Fixed Line Operators
Figure 6-12 The BML Loop
6.5    What about devices?
6.5.1  Device Manufacturers: What should be your future roadmap?
6.5.2  Case Study: Huawei ….. How to beat market leaders?
6.5.2.1   What makes Huawei worth mentioning in the smartphone market?
6.5.2.2   The Makeover in 2012
6.5.2.3   The Whim to Win
6.5.2.4   The Challenges Ahead
6.5.2.5   The Future Strategies
6.5.3  Growth Opportunities for Smartphones, Tablets & Phablets
Table 6-2    Huawei’ Revenue by Business Segment (In CNY Million), 2012
Table 6-3    Top Five Smartphone Vendors, Shipments (In Million) & Market Share, Q1 2013
Figure 6-13 Worldwide Smartphone Shipment (In Million), 2013 & 2018
Figure 6-14 Smartphone Market Volume by Price Band (In %), Q4 2011 – Q3 2012
Figure 6-15 Major Smartphone Markets by Shipment (In Million), 2013 & 2018
Figure 6-16 Major Smartphone Markets by Shipment (In %), 2013 & 2018
Figure 6-17 Worldwide Tablet Shipment (In Million), 2013 - 2018
Figure 6-18 Worldwide Tablet Shipment by Operating Systems (In %), 2013 & 2018
Figure 6-19 Worldwide Phablet Shipment (In Million), 2012, 2013, 2016 and 2018
6.6    How established players (MNOs, MVNOs, Device/ Chip OEMs, ISVs, NEPs) can protract and future proof their dominance?
6.6.1  Don’t take away focus from your “Cash Cows”
6.6.2  Don’t push too much too soon – Restrain Please!
6.6.3  Strive for Identity
6.6.4  Keep Your Trump Card Ready
6.6.5  Unlearn Your Success Quickly

Published By: Teleresearch Labs.
Product Code: Teleresearch Labs.7


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