SIM-only postpay connections today account for a small proportion of mobile operators' total postpay connections (typically ranging from 1% to 5%). This is significantly lower than prepay SIM-only connections which account for 20%-50% of all prepay connections in most European markets. The large disparity is due to the presence of heavy handset subsidies in most postpay markets which render SIM-only postpay propositions less attractive than they would otherwise be. However, MMD believes that the postpay SIM-only market segment will grow over time, driven initially by the reduction of handset subsidies and subsequently stimulated by operator initiatives to develop the market with more aggressive propositions and promotions. The current paper analyses this embryonic market segment and:

• Reveals how the postpay SIM-only segment has the potential to grow to account for more than half of all postpay connections in subsidy free markets
• Provides detailed SIM-only service proposition descriptions for 26 MNOs and MVNOs across 9 different markets (Australia, Belgium, France, Germany, Ireland, Italy, Netherlands, Switzerland and the UK)
• Details the characteristics of the postpay SIM-only segment which make it a potentially lucrative segment with a low cost of acquisition
• Describes how some service propositions have been designed in a negative manner which serves to curb demand for postpay SIM-only connections
• Highlights how progressive operators who recognise the potential of this segment are implementing measures to increase the attractiveness of their SIM-only postpay offers
• Details how improved visibility of SIM-only postpay offers is needed through on-line and retail channels in order to increase the addressable market

Keywords: SIM Only, Contract SIM Only, Postpay SIM-only, Contract SIM-only,

Table Of Contents
1	Overview	1
2	Introduction	2
3	Strategic Considerations	3
3.1	The Case for Proactive Market Development	3
3.2	Positive Positioning of Postpay SIM-only Offers	7
3.3	Why Postpay SIM-only will grow	7
3.4	Segmentation	8
3.4.1	The Low Cost Online Segment	8
3.4.2	The International SIM segment	8
3.4.3	The Family Segment	8
3.4.4	The Kids/Youth Segment	8
3.4.5	New Postpay SIM-only Segments	9
3.5	Channel Development	9
4	Australia	10
4.1	Telstra's Member Plans	10
4.1.1	Member Plan Proposition	10
4.2	Vodafone's CAP Plans	11
4.3	Virgin Mobile - Postpay	11
5	Belgium	13
6	France	15
6.1	Orange	15
6.2	Debitel "Ma Puce" Forfait Offer	16
6.3	SFR SIM-only Offers	17
6.4	Virgin Mobile	18
7	Germany	20
7.1	T-Mobile Germany	20
7.1.1	Postpay Plans Containing Inclusive Multimedia Services	21
7.2	Vodafone Germany	21
7.2.1	Enhanced Postpay Plans Bundling 3G Services	22
7.2.2	SuperFlat	23
7.3	O2 Germany	24
7.3.1	klarmobil	24
7.3.2	Tchibo	26
8	Ireland	28
8.1	Vodafone	28
8.2	O2	28
8.3	Meteor Postpay	29
9	Italy	30
10	Netherlands	31
10.1	KPN	31
10.1.1	KPN Mobiel SIM-only Tariff Plans	31
10.1.2	KPN's Hi Tariff Plans	32
10.2	Vodafone Netherlands	34
10.3	Orange Netherlands	35
11	Switzerland	37
11.1	Swisscom Mobile	37
11.2	Orange Switzerland	38
11.3	Sunrise	40
12	UK	41
12.1	Vodafone	41
12.2	O2	43
12.3	T-Mobile UK	44
12.4	Virgin Mobile	45
12.4.1	Enhancing the SIM-only Proposition With Promotional Incentives	47
12.4.2	A Free Extra SIM for a Friend or Family Member	47