Competing as a Mobile-only Operator in a Converged Market
2016.08.09   |   31 pages   |   Convergence & M2M

Author:
Jon Newman


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Converged services are increasingly being offered and positioned as providing solutions to all the needs of customers, when in reality, they may be more focused on the needs of network operators with multiple networks and falling fixed-line voice utilisation.

The cost benefits of integrating service delivery, including the network, traffic management, customer service and billing, in terms of economy of scale and reduction of duplication seem compelling to service providers.  Improved utilisation and retention within the base adds further value to the converged approach.

However, economies of scale are difficult to achieve if the infrastructure and software are not able to be integrated successfully, and many converged service providers have, so far, experienced difficulties in attaining integration.  Also, as far as MNOs are concerned, convergence to date has been more about household accounts than individuals and quad-play including mobile has remained a very small proportion of the total uptake.

It may be that a more compelling and differentiated market position can be achieved by thinking of convergence from an application rather than a network point of view. By delivering converged application services over a mobile network, MNOs can address the needs of both individuals and households and better secure their margins (and pay for their network capital investments) going forward.

 

Companies: T-Mobile, Yoigo, Telefónica, Google, AT&T, Sprint, Verizon, Movistar, Vodafone, Orange, BT, Virgin Media, A1, Eir

Countries: Europe, USA, Spain

Keywords: multi-play, pay TV, wholesale, bundles, differentiation, mobile-only, Wi-Fi first, application convergence, churn, household, infrastructure, segmentation, content, multi-device, individuals, Convergence, 5G, 4G, market share,

1

Overview

1

2

Introduction

2

2.1

Background to the Report

2

2.2

Report Content

2

2.3

Currency and Conversions

2

2.4

Further Questions and Feedback

3

3

Sample Operator Approaches

4

3.1

Overview

4

3.2

T-Mobile USA

4

3.2.1

Introduction

4

3.2.2

US Market Context

5

3.2.3

T-Mobile USA Positioning

7

3.2.4

Current Offers – Binge On and Simple Choice Tariff

10

3.3

Yoigo

12

3.3.1

Market Context

12

3.3.2

Yoigo Market Positioning Over Time

13

3.3.3

Yoigo Current Propositions

15

3.4

Google/Alphabet

17

3.4.1

Market Context

17

3.4.2

Google Capabilities and Positioning

17

3.4.3

Implications of Google’s Market Entry

20

4

Analysis and Conclusions

22

4.1

Overview of Issues

22

4.2

Market Factors

24

4.2.1

Fixed and Mobile Connectivity in Europe

24

4.2.2

VoD Services – Lifestyle Bundling vs. Simple Streaming

25

4.3

Mobile-only Options

27

5

Recommendations

30

 

Appendix – Feedback Questions

32

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