BGAN Sales Course v1.2. PowerPoint
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Transcript of BGAN Sales Course v1.2. PowerPoint
BGAN Messaging
Version 1.2
December 2005
Broadband for a mobile Broadband for a mobile planetplanetTMTM
October 20052
BGAN: the elevator pitch1st mobile communications service to offer:
Broadband data (up to half a megabit)
… plus voice
accessible simultaneously
through a single compact device
with guaranteed data rates on-demand
that will be available globally
Smaller, Lighter, Faster, Cheaper
& Wider ReachSet up a broadband mobile office in minutes
October 20053
Key benefits of BGAN
Global coverage ● ●
Simultaneous voice & broadband data
●
Portable ● ●
Flexible ●
Reliable ●
Easy to use ●
Secure ●
Competitively priced ●
Hygienefactors
Uniquebenefits
October 20054
Global coverage
• Mobile broadband coverage wherever you go
• Initially accessible in Europe, Africa, the Middle East and Asia
• Available in North and South America by April 2006
• 85% of world’s landmass covered by the first two satellites
October 20055
Simultaneous voice & broadband data
• Accessible through one device
• Make a phone call while downloading email or sending live video
• Performance equal to terrestrial broadband
• Up to half a megabit data rates
• Guaranteed data rates on-demand
October 20056
Highly portable
• Small, lightweight terminals
• Can be carried as easily as a notebook PC
• Smallest terminal weighs less than 1 Kg
• Set up a broadband mobile office in minutes
October 20057
Flexible
• A range of terminals to suit single users or small teams
• Supports IP and circuit-switched applications
• Wired and wireless connectivity options
• Customisable user interface
October 20058
Easy to use
• Consistent user experience
• Easy to carry, quick to set up, simple to use
• Same user interface across all terminals
• No technical expertise required
• 24/7 customer support
October 20059
Reliable
• Dependable, peace-of-mind communications
• I-4 network capacity is 16 times higher than I-3
• Ability to dynamically re-direct network capacity to areas of high usage
• Robust terminals for challenging environments
• 24/7 customer support from our partners
October 200510
Secure
• Inmarsat’s vast experience in serving government customers
• Supports all major VPN products and encryption standards
October 200511
Competitively priced
• Significantly lower cost of ownership
• Competitive with other mobile satellite services
• Highly competitive compared to international roaming on cellular
• Flexible packages
• Greater control of budget
October 200512
BGAN Market Driver Facts
• Data Solutions are needed to drive a modern organisation
• Typical applications are designed to be used in a Local Area Network (LAN) environment
• Mobile use is growing faster than any other method. End users are not in an office (or don’t want to be)
• Inmarsat Data Solutions (esp,) BGAN, are Business Enablers to improve efficiency where and when such “normal office” connections are not available
• BGAN has a far wider “reach” than other third generation services and can be just as cost competitive
• BGAN is secure and totally independent of local infrastructure
October 200513
What does the customer need?
• Global or regional coverage?• Mobile, fixed or portable connectivity?• Voice or data, or both simultaneously?• Low speed data or high speed data?• Demand assigned charges or package pricing?• Post-pay or pre-pay?
BGAN WILL SERVE ALL OF THESE NEEDSThe answers to these questions will tell you how
to position BGAN against its competitors & help to build a solution to sell
BGAN
The Value Proposition program
October 200515
Agenda
The Process
Launch Propositions
Customer Feedback
Next Steps
October 200516
Value Proposition objectives
Accelerate take-up of BGAN services through:
1. Understanding end-customer experience2. Developing solutions that address end-customer needs3. Ensure solutions and services are equally applicable to
core and non-core sector organisations
How– Work with partners to interview end-users and ascertain
business needs– Developed a comprehensive beta test program to prove
solutions and services are ‘fit for purpose’
October 200517
• Conducted 50 + end-customer meetings with partners across 8 sectors
• Initial focus: Media, Military, Oil & Gas and NGO (Aid organisations)
• Essential that we get our propositions right for our core sectors
• Core sector knowledge will help inform emerging sector opportunities based on end-customer profiling
• Q3 focus shifts to non-core organisations
Distribution of interviews by Sector
End-customer meetings
Media, 17
Military, 19Energy, 5
Aid, 9
Construction, 3
Finance , 3
Civil Government, 4
Other, 2
October 200518
Understand segment
requirements & profile
Sector analysis
•Create framework•Quantitative
research•DP/ Manufacturer
feedback•Market
opportunity•Competitor
analysis
Buildfunctioningproposition
Testphysical
Proposition
Trial
•Key customers selected•Testing varied propositions•Beta testing•BGAN lab
Technical scoping
•All aspects of operational delivery – product, billing, SLAs, sales marketing collateral etc
•Alignment with DP / SP
•Assess proposition.
Phase 1 Phase 3 Phase 4
DevelopValue
Proposition
VP Road-map
•End-user analysis•Horizontal /
sector / bespoke propositions
•Assess ability to tailor each segment
•DP/SP value add•Questionnaire•Guidelines
Phase 2
Overview of process
October 200519
Beta test criteria• Geography - IOR Coverage
– Q3 2005 Beta activity under IOR footprint
• Technology Readiness– Proven IP and CS solutions where
BGAN might gain early foothold– New solutions centred on BGAN– Test across footprint
• Profile– Early adopter
– Resource and commitment – Teething pains
I4 CoverageIOR & AOR satellite footprints
228 Spot-beams / 2 x 512kbps channels per beam
October 200520
NetworkConnectivity
IP StandardIP Streaming
ISDNVoice
Interconnect
ISDN
IP MPLS
Internet
Tariff
$
BGAN Device
Applications
• All activities are based on eight key building blocks
– Customer meetings– Proposition development– Beta testing
End-to-end approach
SupportPeripheralEquipment
Services
October 200521
Agenda
The Process
Launch Propositions
Customer Feedback
Next Steps
October 200522
BGAN market position
Live Video
Internet
FTP
Telemetry
Intranet
Telephony
Major applications Satellite Communication environment
Customer feedback indicated the following uses for SatCom services
Indicates non core BGAN areas
Inmarsat proposition Competitive positionFixed location Yes Yes
Office / bureau Yes YesMachine-to-machine Partial Yes
Mobile Yes YesSingle person Yes YesProject team Yes YesVehicular Development Yes
Remote / Temporary Yes YesDisater coverage Yes YesSurge protection Yes Yes
Value proposition program – 2 streams
Analysis / qualification
End-customer meetings
Develop launch propositions
Summary document
Gap Analysis
Messaging
Core sector
Business Development
Analysis / qualification
Define target sectors
Revise propositions
Summary document
Gap Analysis
Messaging
Emergent
Business Development
Media, Military, Aid and Oil & Gas (Primary)Construction, Government & Insurance (Secondary)
Construction, Finance (Retail banking & Insurance),Power & Energy, Manufacturing and Professional Services
October 200524
Focus solutions at launch
1. Mobile Video / Audio
a) Live:IP (streaming)ISDN
b) Store and Forwardc) Voice
2. Single-user mobile office
a) Broadband datab) Voice
3. Multi-user mobile office
a) Broadband data• Multiple PDP context
b) Voice• VoIP
October 200525
Core Proposition Media Military Oil and Gas Aid
Mobile Video/audio− Live IP (streaming)− Live ISDN− Store and Forward
Live BroadcastLive BroadcastStore & Forward
Video tele-conferenceVideo tele-conference
Video-conferencingVideo-conferencing
Video-conferencingVideo-conferencing
Single-user mobile office
Print & Photo Journalism
Military CommunicationsFile transfer
Field Force Automation (upstream)
Mobile Office
Multi-user mobile office
Remote Bureau Welfare CommunicationsRapid Deployment Field LogisticsCollaborative Planning
Field Force Automation (upstream)
Rapid Deployment, Field Operations
Applying solutions to core sectors
Notes: 1. All government / military applications require secure encryption
October 200526
Core Proposition Construction Insurance Retail Finance Civil Govt
Mobile Video/audio− Live IP (streaming)− Live ISDN− Store and Forward
Site monitoring / Vconf.FTP
Disaster CoverageDisaster CoverageIncident Footage / FTP
Secure ATM / bureau
Video-conferencingVideo-conferencing
Single-user mobile office
Project Management
Claims processingField agent sales
NA NA
Multi-user mobile office
Rapid Deployment Field Operations
Disaster Recovery (onsite)
Remote Branch Office
Emergency Response
Adapting solutions to emerging sectors
Notes: 1. Device-to-device communications are a key requirement within the finance sector2. Network back-up (disaster response & bandwidth on-demand) are key emerging requirements
Not all of the above will constitute launch propositions
October 200527
Live Broadcast propositionMobile Video / Audio solution
Corp monthly bundle + top up tariff, short term leasing, service reservation
Streaming Class IP 256kbps +, multiple bonded 256kbps Streaming connections via multiple devices
Portable Mac (OS10.1) , Sony video camera, RJ11 voice handsets, night vision attachment, bureaux office servers to receive video/audio from the field
Win Media 9 or Proprietary software applications Support multiple codecs (e.g. G.722 on Mpeg2, Mpeg4), MS Office, Mac OS10,
IP MPLS links, ISDN connectivity to customer premise, network redundancy between SAS sites
Online account info, SIM and Multiple SIM credit control mechanism, TCP-PEP
24/7/365, regional centres, remote solution configuration, terminal hire, simple and easy user support features via MMI
Class 1/2, terminal bonding/channel muxing, deactivate GPS track & proof of status, SIM card details on MMI, external & vehicular antenna, remote control of device
BGAN Terminal
Tariff
NetworkConnectivity
Peripheral Equipment
Applications
Interconnect
Services
Support
October 200528
Dedicated IP Connection (256Kbps) – Live StreamingBest Effort IP Connection (492Kbps) – Store & Forward4Kbps Circuit Switched Voice
CS Call
Video S&FIM/HTTP
BGAN Device
RAN & SGSN
HUB
Content Management server
BGAN Multi-User
Video Camera
Live Video + VoIP
3
2
1
Connectivity
from DP to
customer hub
preserves end-to-end
QoS
Head Office
PSTN
Internet
Live Broadcast proposition Mobile Video / Audio solution
October 200529
Benefits:
• Portability – Class 1 device (A4 size / ~2Kg) provides functionality of 4GAN or small VSAT unit
• Performance – Guaranteed data rates for prioritised traffic, 256Kbps
• Functionality – multiple simultaneous sessions (voice call while streaming video and running applications via a standard class)
HNS 9201
Live Broadcast propositionMobile Video / Audio solution
October 200530
Corp monthly bundle + top up tariff, short term leasing, service reservation
Standard connections via multiple devices, Streaming Class IP 128kbps,
Portable Mac (OS10.1) , cameras, PDAs, RJ11 voice handsets, bureaux office servers to receive video/audio from the field, fax machines
Standard windows applications, Proprietary software applications,
IP MPLS links, ISDN connectivity to customer premise, network redundancy between SAS sites
Online account info, SIM and Multiple SIM credit control mechanism, TCP-PEP
24/7/365, regional centres, remote solution configuration, terminal hire, simple and easy user support features via MMI
Class 3, highly portable, SIM card details on MMI, Panic button, remote control of device, ability to lock-down class of service, pre-configuration, bundled hand-sets
BGAN Terminal
Tariff
NetworkConnectivity
Peripheral Equipment
Applications
Interconnect
Services
Support
Mobile office / Field agent / Claims processorSingle User Mobile Office
October 200531
Best Effort IP Connection (492Kbps) – Store & Forward4Kbps Circuit Switched Voice
CS Call
BGAN Device
RAN & SGSN
HUB
Content Management server
BGAN Multi-User
Standard class connection
2
1
Head Office
Internet
PSTN
Mobile office / Field agent / Claims processor - Single User Mobile Office
October 200532
Benefits:
• Ease of use – deployed, set-up and operational within minutes
• Portability – Class 3 device (A5 size / ~1Kg) supports both IP and circuit switched applications
• Functionality – single device used globally
Nera device
Mobile office / Field agent / Claims processorSingle User Mobile Office
October 200533
Rapid deployment, field operations proposition Multi-User Mobile Office
Corp monthly bundle + top up tariff, short term leasing, service reservation
Streaming Class IP 256kbps +, multiple bonded 256kbps Streaming connections via multiple devices
Portable Mac (OS10.1) , Sony video camera, RJ11 voice handsets, night vision attachment, bureaux office servers to receive video/audio from the field.
Proprietary software application, G.722 on Mpeg2, Mpeg4, MS Office, Mac OS10,
IP MPLS links, ISDN connectivity to customer premise, network redundancy between SAS sites
Online account info, SIM and Multiple SIM credit control mechanism, TCP-PEP
24/7/365, regional centres, remote solution configuration, terminal hire, simple and easy user support features via MMI
Class 1 /2, terminal bonding/channel muxing, deactivate GPS track & proof of status, SIM card details on MMI, external antenna, remote control of device, ruggedised device, ability to lock-down terminal, panic button functionality, long life batteries
BGAN Terminal
Tariff
NetworkConnectivity
Peripheral Equipment
Applications
Interconnect
Services
Support
October 200534
Best Effort IP Connection (492kbps) – Store & ForwardDedicated IP Connection (128Kbps)
Email, Internet, Intranet,
FTP
BGANDevice
RAN & SGSN
PSTN
HUB
Content Management server
Multi-user VoIP calls
2
1
Connectivity
from DP to
customer hub
preserves end-to-end
QoS
Head / Branch Office
VoIP GateWay
Internet
Rapid deployment, field operations proposition Multi-User Mobile Office
October 200535
Benefits:
• Multi-use – Eleven + users supported on a single device
• High speed – up to half a megabit available across a single device
• Flexibility – Enables multiple users to run streaming, standard class or VoIP sessions simultaneously
• Number of sessions only limited by 492kbps throughput of device
Thrane & Thrane Explorer 500
Rapid deployment, field operations proposition Multi-User Mobile Office solution
October 200536
BGAN Key benefits
Reliable • Dependable, peace-of-mind communications• Robust satellite terminals• 24/7 customer service
Global • Network coverage wherever you go• Use the same device worldwide
High-speed • Up to half a megabit – symmetrically if required• Plus on-demand guaranteed data rates• Replicate your broadband office environment on the move
Portable • Service accessible via small, lightweight devices
Flexible • Integrated solution for voice and broadband data• Supports IP and circuit-switched applications• Terminal options for single or multiple users
Easy to use • Easy to set up, use and support
Secure • Secure access to VPNs.• Supports all major encryption standards.
Value for money
• Competitive with other MSS operators• More cost effective than international cellular roaming
October 200537
Agenda
The Process
Launch Propositions
Customer Feedback
Next Steps
October 200538
Customer requirements
• Antennae– Tracking (Vehicular)– External
• Short term lease• Pricing tools• Streaming class reservation• Voice options
– Multiple simultaneous calls– Secure encrypted calls
• Device locking– Block certain services
• Peripheral equipment– PDA interface
• 256Kbps + streaming– Terminal bonding– Channel muxing
• MMI reporting– Clear referencing
• Remote terminal activation– Alarm monitoring– CCTV– Establishing class of service for
end user– Remote diagnosis– SCADA / ATM
October 200539
Feedback on strategic questions
• Can Inmarsat take a share of handheld MSS voice market with BGAN?– Print media – “voice will be a nice add-on, but we will not get rid of our
Thuraya handsets”– Print media – “voice on the move is a key requirement”– Print media – “voice capability of BGAN is a key benefit”
Implication: BGAN can displace elements of MSS voice
• Can Inmarsat attack low-end VSAT market with BGAN?– Media – “We currently swap to VSAT after 8 weeks”– Construction – “We will not deploy VSAT if project duration is less than six
months”– Broadcast – “bonding two BGAN terminals will enable us to replace our VSAT
trucks”
Implication: Some indication that convenience is more important than price
October 200540
Agenda
The Process
Launch Propositions
Customer Feedback
Next Steps
October 200541
Key activity timeline
Customer meetingsCustomer meetings
Technical scopingTechnical scoping
Proposition Proposition assessmentassessment
Beta testBeta test
Q1/05 Q2/05 Q3/05 Q4/05 Q1/06
Build propositionsBuild propositions
MessagingMessaging
Q2/06
1
2
3
4
5
6
ActivitiesActivities
Core sectorCore sector
Non-Core sectorNon-Core sector
PM = Proposition PM = Proposition ManagerManagerSM = Solution ManagerSM = Solution Manager
October 200542
Next steps
• Commence testing activities – September 05– Protocol test / bench– End-to-end test– Beta test – October 05
• Develop messaging – September 05– vertical sector messages – collateral for launch– Key sector end-customer testimonials – November 05
• New sector identification – September 05– Identify focus sectors– Key account targeting– VP meetings – October 05
BGAN Competition
The Competitive Environment for BGAN and Positioning for Success
October 200544
BGAN market space (1)
• Inmarsat has conducted an extensive programme of market intelligence since Q1 2004
• Total market for L-band voice services is estimated to be $500m with an installed base of around 500,000 = annual ARPU of $1k.
• Total market for next-generation L-band services is predicted to be worth $800m a year by 2010 with 50,000 installed units = annual ARPU of $16k. [Source: Northern Sky Research]
• Total VSAT market estimated as $38bn in 2002 but less than 5% related to corporate communications. IP broadband via satellite is still a nascent market. [Source: Bain]
October 200545
BGAN market space (2)
• Predicting the addressable market for BGAN is challenging– Market is still emergent– BGAN is a completely new product proposition– Slow development to date of terrestrial high-
speed mobile data market
• Inmarsat has concluded that BGAN will occupy a unique market position, with only small overlap with other technologies
October 200546
BGAN market space (3)
High
Low
Portability
Data
D
em
an
d
HighLow
BGAN
VSAT
3G
MSS
Portable HSD
October 200547
BGAN market space (4)
• Portable high speed data– Rapid deployment, highly moveable, stationary during
use – BGAN’s primary market– Very limited competition within MSS
• Semi-fixed applications– Transportable but only moved occasionally,– VSAT services offering high data speeds (up to 4 Mbps)
with bulky, expensive equipment– Possible for BGAN to compete in some circumstances
October 200548
BGAN market space (5)
• Fixed – Never moves – portability is therefore not a factor– VSAT services offering high data speeds (up to 30Mbps)
with equipment costs either the same or lower that BGAN– Possible for BGAN to compete in very limited
circumstances
• Mobile– Consumer and business voice and low speed data services– High levels of competition from cellular and MSS handheld– BGAN cannot compete directly as not truly mobile– Voice traffic will be an upside from a primarily data sale
October 200549
BGAN market space (6)
Portable Semi-fixed
Fixed
• On the move/pause
• “Nomad”
• Up to one week in the same location
• In same location for an extended period
• “Campus”
• >1 week up to several months
• Permanent installation
• Alternatives are unreliable, low bandwidth, expensive or slow to deploy
Primary focus
Opportunistic sale
October 200550
BGAN competitionA top level view
• Portable HSD and semi-fixed– MSS systems, e.g. Thuraya DSL– Transportable VSAT– Terrestrial systems, e.g. 3G and WiFi
• Mobile voice and fixed data– MSS handheld systems– GSM cellular systems– Fixed VSAT
October 200551
BGAN vs. ThurayaDSLServices BGAN ThurayaDSL
Voice & Fax Yes No
ISDN at 64 kbps Yes No
Streaming class IP data 32, 64, 128 and 256 kbps No
Packet mode data Up to 492 kbps Up to 144 kbps
Cost of user terminal $ 1,000 – $ 3,500 > $ 2,000
Other services & features
Size and weight of UT A5 – A4+, between 1 – 2.5 kg A4, 1.6 kg
3G supplementary services Yes No
Voicemail Yes No
TCP/IP accelerator Yes No
Interfaces Ethernet, USB, Bluetooth, WiFi Ethernet only
Source –Thuraya sales material 4/05
October 200552
BGAN Competitive positioning vs. MSS HSD
BGAN advantages • Seamless global coverage • Smaller terminal• Greater ease of use for data• Higher data rates• Simultaneous voice available through
same terminal• Simultaneous ISDN and IP data
BGAN is equal • R-BGAN has similar form and functionality to ThurayaDSL
October 200553
BGAN Competitive positioning vs. MSS handheld
BGAN advantages • Better coverage than regional players • Greater reliability and call quality• Greater ease of use for data• High data rates available through same
terminal• IP data with lower volume-based
transmission costs• Ability to serve multiple users• Non Contact Radiation
Handheld advantages
• Smaller terminal• Convenient for voice
October 200554
BGAN Competitive positioning vs. GSM
BGAN advantages • Seamless global coverage• More secure connection• Greater ease of use for data• High data rates through same terminal• More cost effective for international
roaming • Ability to replicate office environment in
remote locations• Ability to serve multiple users
GSM advantages • Smaller terminal• Easy to use• High level of market awareness
October 200555
BGAN vs. transportable VSAT
October 200556
BGAN vs. transportable VSATBGAN Swe-Dish
Coverage and capabilities
Coverage*
Q4 2005 – IOR (1/3 of the globe)Q1 2006 – Worldwide (85% of earth’s land mass)*2007 – Global
Regional (fragmented)
Number of satellites *3
Many regional satellites support this service. A service provider would
therefore need to liaise with a number of satellite operators should more
than a regional coverage be needed
Size and weight of UT A5 – A4+, between 1 – 2.5 kg Suitcase terminal, 39 kg
Services
Voice (kbps) 4.0 and at 64 4.8 – 16
Fax (kbps) 3.1 and at 64 9.6
* Requires the successful launch of all three I-4 satellites, F3 to be determined in due course.
October 200557
BGAN vs. transportable VSAT
BGAN Swe-Dish
Services
ISDN Yes No
Streaming Class IP Data 32, 64, 128 and 256 kbps No
Packet Mode Data Up to 492 kbpsUp to 4 Mbps downlinkUplink is however lower
Cost of user terminal $ 1,000 – $ 3,500 > $80,000
Other features
GPS Yes No
True user terminal mobility Yes No
Susceptibility to weather conditions
No Yes
October 200558
BGAN Competitive positioning vs. transportable VSAT
BGAN advantages • Seamless global coverage• Portable solution and therefore more
flexible • Instant set-up with no technical
expertise required• Cheaper hardware• Simultaneous voice/ISDN with IP data• Easier regulatory environment• Less “niche”
VSAT advantages • Higher data rates• “All you can eat” pricing
October 200559
BGAN Competitive positioning vs. 3G
BGAN advantages • Seamless global coverage via one network
• Simultaneous ISDN and IP data• Faster connection speeds• Secure connection• Single bill and usage tariff regardless of
location
3G advantages • Smaller terminal• Market awareness
Synergy as BGAN multi-user terminals will fill gaps in 3G coverage
October 200560
Competitive positioning vs. WiFi
BGAN advantages • Portable solution and therefore more flexible
• Seamless global coverage• Simultaneous voice available through
same terminal• Simultaneous ISDN and IP data• Secure connection• One bill • Does not require a fixed line
WiFi advantages • Higher data rates• Flat-rate pricing
Synergy as BGAN multi-user terminals will support WiFi
October 200561
BGAN Competitive positioning vs. fixed VSAT
BGAN advantages • Seamless global coverage• Portable solution and therefore more
flexible • Instant set-up with no installation by a
technical expert required• No end user training required• No set-up costs • Simultaneous voice or ISDN with IP data• Easier regulatory environment
VSAT advantages • Higher data rates• Hardware often included in airtime
package• “All you can eat” pricing
October 200562
BGAN - market segment
Mobile Portable Semi-Fixed Fixed
Data Only
Data/Voice
Voice Only
Mo
tiva
tio
n t
o
bu
y B
GA
NTarget Usage Segment
• Use BGAN functional advantage to gain market share with aggressive pricing options for data, to counter semi-fixed VSAT and competitive voice vs. other MSS to up-sell voice
• Maximise lease opportunities
• Attract voice only usage once terminal is purchased/deployed
New market opportunity
Can compete
Main market
October 200563
Inmarsat’s “supplier level” competitive advantages• Market leader for 25 years with established customer base
• Recognised brand amongst core segments - global coverage, service reliability, GMDSS
• Portfolio to address varying needs
• Global channel presence
• Next generation satellites – one successfully launched and second to be launched shortly; fully funded
• Clear migration path to next generation, high-value services
October 200564
Your “service level” competitive factors
• Building loyalty with your SP’s & customers through service enrichments and attractive pricing points
• Understanding of your SP/customer needs
• Knowledge of which solution best fits SP/customers’ needs
• Before and after sales services
• Value-added services
BGAN
Unleashing The Power Of The Demonstration
October 200566
BGAN selling-demonstrations
Train your salespeople to be able to develop and deliver a 20 minute customised demonstration that shows the customer:
a) Something that matches the customers own application needb) Highlights your most relevant USPsc) How the value chain can enhance their productivityd) How BGAN will reduce their costs!!e) Something that demonstrates how BGAN beats the competition
BGAN Pricing
Creating The Best Packages to Attract The Right Customers
October 200568
BGAN offers value for money not just commodity units
• The feature richness of BGAN should always be sold over and above the actual cost of a minute or megabyte
• What is the value of flexibility? Having the ability to up & move your remote office at short notice, without having to re-install connectivity at a new site with the project downtime this may cause is invaluable.
• Real time file transfers can mean real money to a company, minute 1, a file can be worth £100k, minute 3, £50k, minute 5 onwards £0
October 200569
BGAN pricing strategy - core positioning
• High-speed mobile data with voice• Unique – BGAN is a leader, not a follower• A premium service• Still largely a multi-niche play• Need to move focus away from price to overall value
BGAN is a superior integrated product offering based on reliability, performance, ubiquitous coverage, security, portability
and flexibility
October 200570
Voice service pricing
• Very competitive voice price
• Target end user price <$1 per-minute
• Good channel margins
October 200571
Voice
Product description Direct dial service, 4kbps
Product positioning Baseline product
Pricing objectives • Encourage take-up within new segments
• Increase ARPU among existing customers
• Compete more effectively against other MSS players
Pricing unit Per minute
Target end-user price
< $1 per minute
Target sectors All
October 200572
Standard IP
Product description Background class, contended serviceup to 492 kbps
Product positioning Baseline product
Pricing objectives • Encourage take-up within new market segments
• Stimulate increased penetration and usage within existing market segments
Pricing unit Per MB & end user packages
Target end-user price
To be defined
Target sectors All
October 200573
Premium IP
Product description Streaming class32, 64, 128, 256 kbps (symmetric at launch)
Product positioning Premium product
Pricing objectives Maximise value extracted for superior service level
Pricing unit Per minute
Target end-user price
To be defined
Target sectors Primarily:• Government• Broadcast Media
October 200574
ISDN
Product description One 64 kbps “Bearer” channelOnly available on one device at launch
Product positioning Legacy product, providing smooth migration path to IP
Pricing objectives Minimise revenue cannibalisation as existing GAN customers switch to BGAN
Pricing unit Per minute
Target end-user price
To be defined
Target sectors Primarily:• Government• Broadcast Media
Link
October 200575
BGAN Packages – What are they?
• Standard pricing model for Broadband data, both in fixed line and cellular industries with typically a minimum contract duration.
• Inclusive allowances of Standard IP and Voice for a fixed monthly subscription fee.
• Improved value for increased monthly subscription.
October 200576
BGAN Packages – Why have them?
• With high data speeds and increased traffic volumes, paying on a per MByte basis is not always a suitable pricing model.
• End users want fixed costs to avoid ‘bill shock’, as it becomes more difficult to predict usage volumes.
• Benefits to SPs:– Convert unpredictable usage based revenues to predictable
subscription based revenues.– Minimum contract duration ties users in, allowing
opportunity to have an on-going relationship with users.– Low data prices to change perception of Inmarsat being
expensive to broaden market reach for BGAN.– Increased margins as users usually purchase allowances that
are larger than their requirements. Any usage outside allowance will be at a rate higher than the implied rate in the allowance.
October 200577
BGAN Packages – Options for DP’s & SP’s
• Use standard Inmarsat packages as building blocks to create new retail packages. Improves differentiation and helps to target different market and customer segments.
Example:Inmarsat Standard IP allowances are 20, 100, 750 & 2,000MBs. SPs should fill in the ‘gaps’ with own packages.
• Minimum duration subscription based pricing gives the opportunity to include a subsidy for terminals.
• Ability to create bespoke allowances for individual customers
October 200578
Package Options
Reducing prices in bundles
Increasing subscription
Increased access to services
Standard IP
Allowance
VoiceAllowanc
eVoice
Standard IP
ISDNIP
Streaming
Standard Plan
Basic Postpay
Entry Plan
Mid Plan
High Plan
Super Plan
October 200579
Pricing: Things You Should Know (1)
• There is a minimum charge for circuit switched voice, data and streaming data based on a minimum duration
• There is a minimum charge for standard IP data based on data volume
• These minimum charges will apply to each CDR• If a single call or IP session straddles more than
one CDR then the minimum charges may apply more than once to that session
• This will only be significant if the call length or data amount is not as great as the minimum call length or data volume charging thresholds.
October 200580
Pricing: Things You Should Know (2)
Service Billing Unit
Minimum Charge
Billing Increments
CDR Cut
Voice Per Minute 30 seconds 15 Seconds Per Hour
Streaming IP
Per Minute 30 seconds 15 Seconds Per Hour
ISDN Per Minute 30 seconds 15 Seconds Per Hour
Standard IP Per Mega Byte
50 Kbytes 10 Kbytes Every 2 Mega Bytes or 12 hours
Text Per Text Message
N/A N/A Per unit sent
October 200581
Regulatory
Models– Status Quo : User obtains licence/visited country – Service Provider or DP : applies for licence in a country
Global circulation of terminals– Only Yemen forbid access to Inmarsat terminals– Use can be subject to conditions which vary from country
to country– Info in regulatory database– Support from Inmarsat to obtain terminal licences– Enforcement currently light