The Repremiumization Myth: Content & Services - Not Connectivity - Attract Premiums
2015.08.24   |   8 pages   |   NextGen Strategy Reports

Robert Harrison



Sign up to receive our latest insights and reports

Sign up

MNOs must accept that network connectivity is a given and they will struggle to increase its perceived value so that customers will pay more for better quality. Consumers, based on experience, expect the network will provide all they need for a minimal price and if it does not work, they will complain rather than pay more for one that works better. Mobile operators have two realistic opportunities to raise margins - they can bundle their offering with high value content or services associated with high value items such as people, pets, homes and cars, or they can provide tailored services to the business market, where specified quality (through SLAs) can be a business essential of significant value.

Companies: Bain & Co, STL, TeliaSonera, EE, BT, AT&T, Cisco, Intel, CSG International, Swisscom

Countries: Europe, Belgium, Germany, France, Netherlands, Poland, Spain, UK

Keywords: Video, positioning as core of digital lifestyle, Repremiumization, m2m, IoT, differentiation, pricing by network performance,

Table of Contents
  The repremiumization myth: content & services - not connectivity - attract premiums 1
  Inferences and Implications for Mobile Operators 1
  Inference Dashboard 1
1 Supporting Research & Analysis 2
1.1 Context 2
1.2 Analysis 2
1.3 Research 5
1.3.1 The Bain View 5
1.3.2 The STL View 5
1.3.3 Pricing by a Parameter of Perceived Value 7

Related Reports

Where Next for Operators Without a Network or Digital Market Position?


Network infrastructure has long been seen as a key differentiator for MNOs, but recent developments in the market have seen a creeping loss of control and influence over their core assets. MNOs have outsourced parts of their networks, while sharing others, as cost control and efficiency have become essential to protecting margins. At the same time, OTT service providers are remodelling the service side of the equation, eating away at the customer relationships that MNOs have spent years building. Operators ...

Read more

Telco 2.0 Transition Part 4: Valuing Intangible Assets Key to Success


MNOs have invested heavily in physical assets such as spectrum licences, wireless networks and backhaul, as well as in building their brands, culture and systems. Less obviously, they have invested heavily in building their internal skills and operating culture (the way things get done), the organisation structure, processes and decision-making fora that have together enabled them to function & compete. But these tangible and intangible assets have been put in place to achieve strategic goals defined in the world of ...

Read more

Successful Telco 2.0 Transition Requires Strategic Partnerships with Digital Players


Most MNOs still appear uncertain how to navigate to the digital world of Telco 2.0. Understanding the options, and how to go about choosing and implementing a strategy, is increasingly urgent. Faced with a fundamental change in the way value is created (a strategic infliction point according to Andy Grove, Chair of Intel) most have so far tried to avoid any strategic decisions, simply extending their current business model. As ARPU has declined, competition has increased and OTT operators have ...

Read more

Our Clients

The reports are thorough and extensive. They give a complete overview on a certain topic and open the mind to new business ideas... It is the most extensive program available for our industry Proximus Belgium
Mobile Market Development 2015