Prepay Tariff Innovation
2011.12.23   |   28 pages   |   Maximising Prepay Cellular Profit   |   Tariffing Mobile Services for Profit

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Mobile network operators have run active campaigns to migrate prepay customers to postpay offers, but prepay remains an important revenue component for many operators worldwide. As domestic and international economic conditions drive customers to cut expenditure and seek value, operators must adapt both prepay and postpay offers.

In this report, Mobile Market Development sought examples of innovative prepay tariffing and has profiled five examples, including Tesco Mobile in Ireland, Blyk in the Netherlands and India, a prepaid roaming SIM offer called Maxroam, a VoIP communications app initiative from Telefonica O2, and a people-powered prepay operator from the UK, giffgaff.

In order to maximise potential in the market, service providers must place sufficient emphasis on prepay innovation. Do the models profiled in this report represent an adequate response to the current market environment or is more required? The report concludes with Mobile Market Development's findings and recommendations to service providers that wish to ensure that their response, at least, is adequate.

Keywords: Tesco Mobile, Maxroam, Prepay Tariff Innovation, Giffgaff, Prepay tariffs, Blyk,

Table of Contents
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 Prepay Tariff Innovations 4
3.1 Introduction 4
3.2 Blyk 4
3.3 Tesco Ireland and HulloMail 6
3.4 Maxroam 7
3.5 O2 Connect 9
3.6 giffgaff 10
4 giffgaff UK 11
4.1 Introduction 11
4.2 Proposition Overview - Engaging Customers 12
4.3 Provisioning Customer Acquisitions 13
4.3.1 SIM Card Distribution 13
4.3.2 Customers Help Customers With Special Requirements 14
4.4 Tariffing the Proposition 15
4.4.1 Goodybags, Gigabags and Hokey Cokey 15
4.5 Harnessing Customer Creativity 18
4.5.1 Product Development - Improving the User Experience 18
4.5.2 Promotional (Tangential) Creative Campaigns 18
4.6 Retention - Keeping Customers Happy 20
4.7 Balancing Radicalism With Corporate Responsibility 22
5 Findings 24
6 Recommendations 27
  Appendix - Feedback Questions 29

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