Sustaining ARPU Through Bundle Innovation
2019.05.29   |   62 pages   |   Revenue Continuity

Author:
Liam Mimnagh


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Key Infographic

 

Introduction

Operators strive to meet ARPU and service revenue targets across their mobile and converged businesses through tariff innovation that stimulates data usage and monetises data demand - adding innovative services on top of connectivity such as security, cloud and OTT video, while introducing wider adjacent sector initiatives. Handset ownership schemes have proven to be effective at driving consumption alongside insurance and screen cover. Personalised offers, goodies and reward programmes have also proven effective in stimulating usage while limiting churn.

 

Three i3

 

Companies: Telefónica, O2, Movistar, Telenor, Elisa, DNA, Vodafone, Maxis, Netflix,

Countries: Germany, Spain, Norway, Finland, Malaysia,

Keywords: Blended ARPU, Rewards, Internet Passes, Value over Volume, Mobile Termination Rates, Partner Brands, Tariff Innovation, Family Tariffs, Upselling, Data Pool, Data ARPU, Mobile Data Usage, Device Ownership, SWAP, Smartphone Financing, Churn, Refurbished Phone - Good As New, Out of Bundle, Screen Replacement, Zero-rating, Early Upgrade, Unlimited Data Tariffs, Smartphone Rental, Security, Multi-Brand, Data Buckets, Convergent ARPU, Pay-TV, OTT, Speed Based Tariffs, Goodies, Content, Football Content, Service Revenue, Data Tariffs, Handset Financing, Zerolution360, Movistar+, Postpay Migration, Handset Insurance, MTR, OTT TV App, challenger, ID Theft, TV App, Fusión, Youth Tariffs, Handset Upgrade, Share Plan, Youth Orientated Tariffs, Cloud Storage, Prepay ARPU, Zerolution, Bundles, Data Boost, Handset Instalment programme, Convergent Offers, KPI, Personalised Offers, Convergence, Postpay ARPU, Handset Rental, MultiSIM, Smartphone Instalment programme,

1

Overview

1

1.1

Key Infographic

1

1.2

Introduction

1

1.3

Three i3

1

2

Background and Content

2

2.1

Background to the Report

2

2.2

Report Content

3

2.3

Currency and Conversions

4

2.4

Further Questions and Feedback

4

3

Case Examples

5

3.1

Telefónica O2 Deutschland

5

3.1.1

Focus on Postpay

5

3.1.2

Postpay Proposition Approach – O2 Free Tariffs

6

3.1.2.1

New O2 TV Service

9

3.1.2.2

O2 Cloud

10

3.1.3

Prepay Proposition Approach – Free Tariffs

11

3.2

Telefónica Movistar Spain

12

3.2.1

Convergent Offerings and Content are Key

12

3.2.2

Convergent Offers

14

3.2.3

Standalone Postpay & Prepay Offers

16

3.2.4

Extending the Converged Customer Footprint

17

3.2.5

Other Upcoming Movistar Initiatives

17

3.3

Telenor Norway

18

3.3.1

Driving Value in Postpay

18

3.3.2

Postpay Tariffs

20

3.3.3

Youth-oriented Tariffs

22

3.3.4

Further upselling Initiatives

24

3.3.5

SWAP Handset Programme

24

3.4

Elisa Finland

27

3.4.1

Unlimited Data Tariffs Tiered by Speed

27

3.4.2

Elisa’s Prepay Bundles

30

3.5

DNA Finland

31

3.5.1

Unlimited Data Tariffs but with Fixed Contracts

31

3.6

Vodafone Spain

35

3.6.1

Competitive Pressures

35

3.6.2

2019 Turnaround Efforts – Speed-based Tariffs

37

3.6.3

Prepay Tariffs

40

3.7

Maxis Malaysia

41

3.7.1

Tackling Competitive Pressures

41

3.7.2

Encouraging Migration to Postpay

43

3.7.3

Standard Postpay - Family Orientated Tariffs

45

3.7.4

Device Ownership Options

46

3.7.5

Prepay Propositions

50

3.7.6

Measures to Stabilise Prepay ARPU

53

4

Findings

56

4.1

Review of Attempts to Sustain ARPU

56

4.2

Headline Conclusions

59

5

Recommendations

61

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