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PositioningforSuccessin4G/LTE
DeclanLonerganVPResearch,YankeeGroup
August21,2012
Page2 Copyright2012
A Virtuous (or Vicious) Cycle
AVirtuousCycleIsDrivingtheMobileEconomy
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MobileBroadbandStrategies:HelpingCompaniesProfitfromData
Customers Economics
Technology
Businessmodels
Revenueflows
Pricingstrategies
Serviceinnovation
Channelevolution
Positioning&branding
Demandforecasts
Profitabilityanalysis
Brandpreferences
Segmentationmodels
Buyingbehavior
Consumptiontrends
Complementary
accesstechnologies
Telecomssoftware
3G/4Gnetwork
strategies
Enablingtechnologies
Customers
Technology
Customers
Technology
EconomicsCustomers
Technology
EconomicsCustomers
GotoMarketTechnology
Customers
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Agenda
TheContextforLTE
PositioningOptions
Takeaways
October2:YankeeGroupWebinarAroundtheWorldWithLTE
Hosts:RichKarpinski
andKenRehbehn
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4GIsBornIntoaDataCentricWorld
SMSgottheballrolling
SmartphonesandmobileWebfueleddatagrowth
TabletsandconnectedCEdeviceswilltakemobiledatatonewlevels
Operatorcompetitionanddifferentiationisnowadatagame
Source:YankeeGroupsGlobalMobileForecast,March2012
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MultipleConnectedDevicesIstheNewNorm
WhatdeviceshaveyouusedtoaccesstheInternet(orInternetcontent)inthelastmonth?
88%75%
69%73%
82%
77%55%52%56%
63%
36%31%31%29%30%
49%44%43%43%
63%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
U.K.(n=67)Spain(n=147)Italy(n=153)
Germany(n=133)France(n=70)
U.K.(n=529)Spain(n=604)Italy(n=546)
Germany(n=508)France(n=470)
U.K.(n=381)Spain(n=325)Italy(n=355)
Germany(n=288)France(n=220)
U.K.(n=431)Spain(n=540)Italy(n=613)
Germany(n=479)France(n=409)
Source:YankeeGroups2011EuropeanandU.S.ConsumerSurveysBase:AskedtothosewhoindicatetheyhaveInternetserviceathomeandowneachdevice
Feature
phone
Smartphone
Laptop
Tablet
Createsnewchallengesinpricingandcustomermanagement
U.S.45%average(across
featurephoneand
smartphoneusers)
U.S.61%
U.S.88%
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QualityofExperienceIstheBasisforDifferentiation
Source:YankeeGroups2011EuropeanConsumerSurvey
Customerexperienceismultifaceted:
CompanyandbrandProductsandservicesChannelDeliveryandoperations
MNOsmustensureconsistent,transparentcustomerinteractionsandcommunications
Sameprinciplesapplyto4Gpositioning
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EffectivePricingIsEssentialforBusinessModelSustainability
Mobilebroadbandpricing
mustbe:
Competitive:toreflecttodayseconomiccircumstances
Transparent:tofosterenduserconfidenceindata
Sustainable:toachieveviablelongtermdatabusinessmodels
SustainablePricingIsKeytoSolving
theDataProfitPuzzle
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OperatorsMustBeTruetoTheirBrands
4Gchangesalot butnoteverything
Brandvaluesmustbeclearandconsistent
MNOs shouldleverage4Gtoreinforcemarketposition,notchangeit
But4GalsogivesMNOs anopportunitytoreassessmarketstrategyandtargetcustomers
Source:YankeeGroupResearchReport,2010
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3GPositioningWasSimpleComparedto4G
Abattlebetweenincumbentsand(insomecases)onenewentrant
Newplayerhadtobedisruptive
Butmostcustomerswerenotreadyfor3Gdataservices
Newentrantsstrategieshadtoevolve
Source:YankeeGroupResearchReport,2005
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MobileOperatorsFaceCriticalLTEDecisions
BusinessCaseNewservicesandrevenues,orSolutionto3Gnetworkoverload
ProductsConvergedlandline/mobileoffers,orAggressivepushforlandlinesubstitution
TimingTechnologyandmarketleader,orPragmaticfollowerstrategy
Whataresomecrediblepositioningoptions?
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No.1forTablets?
Source:YankeeGroups2012U.S.ConsumerSurvey
Target4Gspecificallyattabletowners
Beginbyunderstandingtabletowners profile,behavior andneeds
Theyareyoungerandhavehigherincomesthannonowners
Consumerswhointendtobuytabletsarealreadyusingplentyofdata
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No.1forCordCutters?
Source:Ofcom
CommunicationsMarketreport,August2011Surveybase:Consumersaged15andolder(n=9,013)
4Gmobilebroadbandcandriveanewwaveoflandlinesubstitution
Theopportunityismostobviousamongleastaffluentsocioeconomicgroups
4Gpricingmustbeappropriatetothosecustomers needs
PercentageofHouseholdTakeUp
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No.1forFamilies?
LessonsfromtheU.S.?Shareddataplans foruserswithmultipleconnecteddevicesAppropriateforfamilies orothergroupsthatcanshareallowancesEnablesoperatorstocapturemoredevicesandincrementalusageSomesavingsforcustomers butnotdrasticRequiresalotofplanmath regularvs.sharedvs.prepaid
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No.1forPrepaid?Rememberthis?Prepaidavailabilitycreatedasurgein3Gadoption
Source:YankeeGroupResearchReport,2005
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No.1forRoaming?
Billshockrestrictsdataroaming.Syniverse Technologiesestimatesthatupto70percentofinternationalroamersdonotusemobiledata.
Operatorsareinnovatingatlast.Commonthemeisgreaterpricecertainty,e.g.,flatratedailyorweeklyroamingpasses.
Roamingcanbeadifferentiator.Requirespackagesthattargetsilentroamersandaddresstheneedsofspecificusersegments
Operatorscanadd3Gbasedroamingpackagestocoredomestic4Gservices
Datasource:EstimatebasedonYankeeGroupsGlobalMobileForecast,June2012
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SomeTakeaways
4Gisbornintoinadatacentric,multideviceworldwherecustomerexperienceisking.
4Gstrategiesmustbeconsistentwithoperatorsoverallmarketpositioningandbrandvalues.
Chooseyour4Gcustomertargetscarefully,getcreativewithservicepackagingandgoforit!
Page18 Copyright2012
DeclanLonergan
dlonergan@yankeegroup.com
Readblogsat
blogs.yankeegroup.com
Fanusatfacebook.com/yankeegroup
FollowusonTwitter@YankeeGroup
ThankYou!
Slide Number 1Slide Number 2Mobile Broadband Strategies: Helping Companies Profit from DataAgenda4G Is Born Into a Data-Centric WorldMultiple Connected Devices Is the New NormQuality of Experience Is the Basis for DifferentiationEffective Pricing Is Essential for Business Model SustainabilityOperators Must Be True to Their Brands3G Positioning Was Simple Compared to 4GMobile Operators Face Critical LTE DecisionsNo. 1 for Tablets?No. 1 for Cord-Cutters? No. 1 for Families? No. 1 for Prepaid?No. 1 for Roaming?Some TakeawaysSlide Number 18