Prepay Upgrades in Europe
2006.08.11   |   29 pages   |   Churn Prevention Strategies


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In this report, Mobile Market Development examines the prepay upgrade programs currently in place across MNOs in six key European markets (France, Germany, Ireland, Italy, Spain and the UK). Many interesting initiatives and differences were observed between markets and operators and all are detailed in the current report. However, we found (and operators acknowledged) prepay upgrade policies are often the result of tactical responses to competitor actions. Few claimed that their upgrade policy was driven by significant strategic intent or clearly linked business goals. In response to this, the current paper provides a 6-stage upgrade process design model to provide MNOs with a useful strategic framework for the development of future prepay handset upgrade policy. It incorporates the following elements

  • Strategy & Objectives
  • Differentiation
  • Qualification
  • Communication
  • Delivery
  • Outcomes & Measurement

The model is supported by examples of the issues and practices operators ought to consider at each stage of the upgrade design process, drawing on a variety of upgrade policies investigated during our research. The model is supplemented by numerous insights provided by operators who have developed their strategic thinking in relation to prepay upgrade policy, to a more advanced level. Their experience is drawn on to offer detailed recommendations on how to optimise the MNO's prepay upgrade strategy.

Keywords: Upgrade, Churn, Europe, Mobile Operators,

Table of Contents
1 Overview 1
2 Introduction 2
2.1 Background 2
2.2 Report Structure 2
3 A Mobile Upgrade Model 3
3.1 Introduction 3
3.2 The Upgrade Process 3
3.2.1 Strategy 4
3.2.2 Differentiation 5
3.2.3 Qualification 5
3.2.4 Communication 6
3.2.5 Delivery 6
3.2.6 Outcomes & Measurement 7
4 Prepay Upgrade Approaches 8
4.1 Strategy 8
4.2 Differentiation 9
4.3 Qualification 9
4.4 Communication 11
4.5 Delivery 12
4.5.1 Introduction 12
4.5.2 O2 UK 12
4.5.3 Orange UK 14
4.5.4 Virgin Mobile UK 16
4.5.5 SFR France 17
4.5.6 Vodafone Italy 17
4.5.7 TME Spain 20
4.6 Outcomes & Measurement 23
5 Conclusions & Recommendations 26

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