Out of Bundle Opportunities
2017.11.08   |   15 pages   |   Operations and Management

Author:
Jon Newman


LinkedIn

Share:

Sign up to receive our latest insights and reports

Sign up

Until now, out-of-bundle charges have largely been treated as a cash cow by MNOs.  Rates for voice calls, SMS and data all increase substantially, while alternatives to charging for overage include throttling and capping use. 

This approach leads to customer caution, resentment (for overage charges) and a sub-optimal customer experience, none of which improves the relationship with the customer or the trust felt towards the supplier. 

To improve loyalty and grow customer lifetime value, MNOs must in future view bundle exhaustion as an opportunity to deepen the relationship, rather than extracting short term, high margin revenue.

 

A webinar will be delivered in support of this presentation on Wednesday 15th November at 10AM (GMT).  For more details contact us

 

Companies: T-Mobile, Vodafone

Countries: USA, Italy

Keywords: Customer-centric, Voice, Add-ons, overage, commoditisation, cannibalisation, SMS, retention, throttle, cap, Out-of-bundle, Incremental upgrades, Zero-rating, Data-first, Operations-centric, Customer lifetime value, Bill-shock, Customer experience, hybrid,

1

Summary of Options and Recommendations

3

1.1

Summary and Hypothesis

4

1.2

Options Available to MNOs at Bundle Expiry

5

1.3

MNOs Should Cannibalise Their Own Propositions First

6

2

Supporting Case Studies

7

2.1

T- Mobile USA - Business Success From Un-carrier Strategy

8

2.2

T-Mobile USA – Disruptive Aproach to Prepay

9

2.3

T-Mobile USA – Legacy Prepay Plan Upgrades

10

2.4

Vodafone Italy – Focusing on Transaction Ease

11

2.5

Data-first, but Cautiously

12

2.6

Strong Focus on Youth Data Usage 

13

3

Conclusions

14

3.1

MNOs Will Benefit From Updating Their OoB Approach

15

Our Clients

On the whole, MMD reports are more detailed, more extensively researched and more comprehensively written O2 UK, Strategy Team
Mobile Market Development 2015