Post on 18-Apr-2015
The information contained in this document belongs to Value Partners S.p.A and to the recipient of the
document. The information is strictly linked to the oral comments which were made at its presentation, and
may only be used by attendees of that presentation. Unauthorized copying, disclosure or distribution of the
material in this document is strictly forbidden and may be unlawful.
MVNOs in M2M and Enterprise space
Presentation
Kuala Lumpur, 17th October 2012
2
Contents
• About Value Partners
• MVNOs in M2M and enterprise space
• Q&A
3
Value Partners: a global management consultiancy...
• An international player
Headquartered in Milan, with offices in 7 countries,
including double-digit growth rate markets
• A strong team of professionals
25 partners, 275 professionals, 23 nationalities
• An excellent track record
Constant growth over the last 18 years
• A large and loyal customer base
Over 350 client served in the past three years, 60% of
which have been with us for over 8 years
• The first to successfully integrate business and
IT expertise
4
…with a global reach - 10 offices with engagements in over 40 countries
Value Partners’ engagements
Value Partners’ offices
São Paulo
Buenos Aires
Milan
London
Rome Istanbul
Singapore
Hong Kong
Beijing
Shanghai
5
Our TMT practice has advised the leading TMT organizations regulators and investors around the world…
Telecoms clients Media clients Investment clients in TMT
SouthernCapital
6
…with a extensive footprint in the Asia Pacific region
Hong Kong
China
Japan
Taiwan
Singapore
Vietnam
Philippines
New Zealand
Macau
India
Nepal
Indonesia
Thailand
Malaysia
Sri Lanka
Australia
ELLIOTT ADVISORS
ELLIOTT ADVISORS
Pakistan
Bangladesh
Selected Asia Pacific clients
7
A selection of our MVNO, Enterprise and M2M experience from around the world
Europe:
• SME and large enterprise MVNO strategy
for British Telco in Italian market
• Premium MVNO offering business users
and HNWI in UK
• MVNO opportunity assessment for leading
Greek bank
• Development and launch of a second
brand focused on youths
• Developed enterprise strategy for
incumbent in Turkish market Asia:
• 2G/3G MVNO strategy for Malaysian Pay TV
operator
• Regional market study to identify potential network
partners throughout Asia
• MVNE strategy for fixed Malaysian operator
• Wholesale strategy for Malaysian mobile operator
• MVNE strategy in SE Asia for leading technology
solutions provider
• Enterprise strategy for leading operator in the
Philippines
• SME strategy and implementation for leading
operator in Indonesia
• M2M and UC strategy for Malaysian operator
Middle East:
• MVNO strategy for Zajoul - Saudi retailer and
distributor of mobile products
8
Contents
• About Value Partners
• MVNOs in M2M and enterprise space
• Q&A
9
In many developed markets, enterprise and M2M MVNOs are still the minority
48
18
31
8 10 10
4 8
2 5 4
1
USA UK Netherlands
Source: MVNOdirectory.com, Value Partners analysis
Consumer segment
Enterprise segment
SME segment
M2M Breakdown of MVNO by type in selected markets
M2M
•Full service
network
operator –
4
•Connectivity
provider - 1
SME
• ICT and UC
provider –
2
•Small
business
soln
provider - 1
•Cheaper
rates and
international
calls - 1
Enterprise
•Local telco
(fixed and
mobile
services) - 6
•Cheaper
rates and
international
calls - 2
M2M
•Network
and
solutions
provider –
2
•GPS
solution
provider – 1
•Smart
metering,
energy
mgmt - 1
SME
• ICT and UC
provider –
8
Enterprise
• ICT and UC
provider –
6
•Cooperative
– 1
•Local telco
– 1
•TLC and
utilities
retailer - 2
M2M
•VAS
provider for
Smart
Homes,
Smart
Buildings
and Smart
Grids -1
SME
Cloud
Computing
Provider – 1
•FMC
products
retailer, e.g,
pico cells -
1
Enterprise
• ICT and UC
provider –
4
•Mobile
services
provider – 5
•Local telco
– 1
10
M2M connections within Asia Pacific is expected to grow nearly twice as fast as globally
Projected M2M Connections in APAC
Projected M2M Connections in selected Asian
mkts
Millions CAGR
2010 2011 2012 2013 2014 2015
Others
India
Indonesia
Malaysia
Australia
South Korea
Japan
China
117
21
29
42
61
85 +41%
Source: Frost and Sullivan, Value Partners analysis
Millions
0.5
2.3
2011 2015
0.5
2.4
2011 2015
0.5
2.7
2011 2015
+50% +40% +48%
•Driven by Telematics,
m-Payments,
Tracking and mHealth
•6 consumer MVNOs
and 1 M2M MVNO
•Driven by
Telematics, m-
Payments and
mHealth
•No MVNOs
•Driven by Telematics,
Remote Monitoring,
M-Payments, and
mHealth
•1 consumer MVNO
11
M2M players along different parts of the value chain already have MVNO activities
Network operators
Service enabler
(Platform)
System Integrator (Interface)
Resellers Module / Modem
Suppliers
Smart object
suppliers
Service Provider (Seller)
Source: Nokia Siemens Networks, Frost & Sullivan, Informa, Value Partners analysis
Vertical Industries / Customers
15 – 20%
M2M value chain
% of
value 5 – 10% 30 – 40% 15 – 20% 10 – 20%
Areas with existing MVNOs
MVNO
MVNO
MVNO MVNO
MVNO
MVNO
MVNO
MVNO
• Providing connectivity contributes ~3% of mobile operator revenues… • … while providing the platform, interface and being a seller could
generate another 10-12% in revenues
12
Optimized network service provider typically work with multiple MNOs and offers services for more robust network performance Examples of optimized M2M network operator
• Positioned as a premier data MVNO – Multiple Virtual Network Operator –
that provides optimized wireless network for enterprises
• MNOs are AT&T and Vodafone (for GSM) and Sprint (for CDMA) as well
as partnering Iridium for satellite connectivity
• Operates own NOC and offers system integration services
• North America’s largest wireless network developed specifically for M2M
communications – only network optimized for automation and
performance
• MNO is T-Mobile for both GSM and CDMA
• Offers provisioning and device management platform
• Positioned as most comprehensive M2M service provider in Europe – GSM, SMS,
GPRS and 3G
• MNOs include all mobile operators in the UK and international providers – Three,
everything everywhere, Vodafone, O2-Telefonica, JT Global and Vodafone Global
• Has own off-mast network infrastructure – higher end-to-end resilience, security
and manageability
13
The range of services in the unified communications space wide and still evolving
Virtualisation
Real-time session
management
Mobility
Wired and wireless
Video
Rich media
collaboration
Speech
Voice access to
services
Presence
Intelligence in
the network
Policy
Identity and
preference
Source: Cisco, Value Partners analysis
Range of Unified Communication services
IP networks Leased lines/
Wireless leased lines
14
Cbeyond is an example of a successful enterprise MVNO that is expanding its focus beyond providing connectivity Case study of successful enterprise MVNO - CBeyond
• World’s first 100% VoIP local phone network - provides mobile
services through MVNO partnership
• Specifically targeted at SMEs
• Offers core communications…
- Local and long distance phone services
- Mobile services
- Broadband internet access
• …and IT and UC services
- Messaging and collaboration
- Cloud services – cloud servers, cloud PBX
- Data backup and security
- Marketing services – web hosting, web design, domain services
- Installation and support services
• Offers three packages from basic services to enterprise-class and
industry solutions for Lawyers and Healthcare professionals
• Since 2011, has expanded focus from communications-centric
(Cbeyond 1.0) to tech-dependent (Cbeyond 2.0)
15
M2M and Unified Communications require different competences and commercial approach from connectivity services
SMEs
Corporates/ Large
enterprises
M2M
customers
Connectivity
Telephony and
UC solutions
(e.g., PABX, etc)
Vertical-specific
applications
/solutions
Connectivity resold
as part of M2M
propositions
Pro
du
cts
/Se
rvic
es
Customer segments
Source: Value Partners analysis
Telco approach sufficient
- Relatively simple selling
process
System integration
and/or managed services
required - Relatively
more complex selling
process
Commercial approach across products/services and customer segments
16
Therefore, the key takeaways are…
• In the M2M and enterprise space, mobile/connectivity
is either an enabler or part of a larger portfolio of
services...
1
• …and providers require specialist domain
knowledge and expertise to deliver
2
• Commercially, the market will need to be
approached differently from the traditional market
3
• Mobile operators
may not be fully
equipped to play
in this space…
• …and will need to
collaborate with
third-parties
17
Possible business models – Some ideas and examples
Sell as utility
- plain vanilla
cheap lines
1. Adopt discount strategy and compete on
rates – no specialist capabilities required
1
Sell
optimized
network
1. Construct optimized data network possibly
leveraging multiple networks and technologies
– requires specialist network capabilities
2
Sell solutions
and managed
services
1. Provide end-to-end solutions (M2M and/or
UC) where mobile connectivity is one of many
services – requires specific capabilities
3
18
Contents
• About Value Partners
• MVNOs in M2M and enterprise space
• Q&A
19
Contact Information
www.valuepartners.com
Milan
Via Vespri Siciliani, 9
20123 Milan
Italy
Tel. +39 02 4854 81
Fax +39 02 4800 9010
London
Greencoat House
Francis Street
SW1P 1DH
London
Tel. +44 (0) 20 7630 1400
fax +44 (0) 20 7630 7011
Rome
Via di Porta Pinciana 1
00187 Rome
Italy
Tel. +39 06 6976 481
Fax +39 06 6976 48 51
Buenos Aires
Alicia Moreau de Justo 550 - 4
Piso C1107AAL
Buenos Aires - Argentina
Tel. +54 11 4314 4222
Fax +54 11 4314 6111
Singapore
7 Temasek Boulevard
Suntec Tower One #26-04
038987 Singapore
Tel. +65 6820 3388
Fax +65 6820 3389
Hong Kong
Spectrum Value Partners
1402 Harcourt House
39 Gloucester Road
Wan Chai
Hong Kong
Tel. + 852 2103 1000
Fax + 852 2805 1310
Beijing
Tower A, Suite 1702
Vantone Centre
Jia 6 Chaoyangmenwai Ave.
100020 Beijing
People’s Republic of China
Tel. +86 10 5907 0616
Fax +86 10 5907 0383
Istanbul Meydan Sok.
Spring Giz Plaza
Floor 3, N. 26 Maslak
34398 Istanbul
Turkey
Tel. +90 212 276 98 86
Fax +90 212 276 98 82
Sao Paulo
Rua Padre João Manuel 755
1° e 2° andares - cj. 11,
12, 21
Cerqueria Cesar
CEP 01411 - 011
Sao Paulo - Brazil
Tel. +55 11 306 809 99
Fax +55 11 308 141 38
Dubai Business Central Towers
Office n° 1304 A
P.O. Box 503025 - DMC9
Sheikh Zayed Rd.
Dubai Media City
United Arab Emirates
Tel. +971 50 788 0187
Rio de Janeiro Rua da Candelària 60
10° andar
Centro
CEP 20091-020
Rio de Janeiro - Brazil
Tel. +55 21 2213 9191
Fax +55 21 2213 9190
cheryl.lim@valuepartners.com