Abstract
Through six case studies, this analysis of mobile operator strategies
describes how the collision of broadband Internet services and mobility, and
the extension of basic mobile connectivity to some of the world' s
lowest-income groups are becoming paramount to strategic thinking.
Key Highlights:
- Global mobile subscription growth remains key to many mobile operator
strategies. Informa Telecoms & Media expects above-average global growth in
Africa, the Middle East and Asia Pacific until the end of our forecast period.
We expect global subscription growth of 11.7% in 2009, but in Asia Pacific,
Africa and the Middle East, we forecast growth of in excess of 15%. In
contrast, we estimate growth of just below 5% in Western Europe and 5.6% in
North America in 2009.
- Vodafone has highlighted Africa as important to its emerging markets
strategy and hopes to increase its existing 50% stake in pan-regional operator
Vodacom. Vodafone will also continue to invest in its developed markets with a
particular focus on broadband growth.
- Telenor plans to sustain its high performance non-voice revenue stream
from Europe by continuing to invest in advanced technologies, which it hopes
will deliver strong ARPU and a loyal customer base. Mobile broadband services
are at the heart of this strategy. Continued subscription growth in Asia also
remains high on the operator' s agenda.
- MTS plans to transform its domestic strategy shifting its focus away from
the quantity of subscriptions and acquiring new customers, and towards the
quality of these subscriptions and retaining existing customers. China Mobile
will also focus its energies on its domestic market and, in particular, on the
deployment of its TD-SCDMA network.
- Telefonica expects robust growth in its wireless, broadband and pay TV
businesses. The operator has pinpointed its Latin American markets as ready to
benefit from the growing number of households in the region with access to
digital TV.
- The development of 3G and 4G networks are vital to AT&T' s strategy as the
operator looks to increase the speeds of its existing 3G network, increase
data capacity and deploy LTE in 2012. With this network development allied to
a unique range of exclusive products and services, the operator believes it
can significantly reduce churn and improve data ARPU levels.
Key issues addressed:
- To what extent is the inevitable slowdown in subscription growth in
emerging markets causing some leading mobile operators to realign their
strategic thinking?
- Have the opportunities created by mobile broadband services reinvented the
business case for 3G technologies?
- How is the bundling of broadband, voice and TV services driving the
strategies of an increasing number of integrated fixed and mobile operators?
- Is it possible to manage subscription growth profitably in rural areas of
emerging markets, where investment on network expansion is driving up capex
levels, but low income rural populations are causing a decline in ARPU?
- Should a mobile operator adopt next-generation technologies in those
markets where, due to a lack of immediate consumer demand, there is little
prospect of making any return on investment? But if not, what effect will this
have on that operator' s drive to build brand equity and customer loyalty, and
consequently ARPU?
- To what extent are some of the world' s leading mobile operators looking to
focus on technology evolution and network deployment in their domestic markets
rather than geographical expansion?
Who should read this report:
- Operators
- Vendors
- Financial Institutions
- Consultancies
- Government
- Regulators
Companies Covered:
- AT&T
- China Mobile
- MTS
- Telefonica
- Telenor
- Vodafone
Table of Contents
CHAPTER 1
- INTRODUCTION
- Subscription growth and mobile broadband services drive strategic
thinking
- Figure 1.1: Global mobile subscription growth, by region, 2008-2013
- Developed markets capable of delivering growth
- Developing markets still at heart of strategy but challenges lie ahead
- Outlook: mobile operators back technology evolution
CHAPTER 2
- VODAFONE
- A transforming business strategy?
- Ongoing geographical expansion
- Figure 2.1: Vodafone Group mobile subscriptions by region, 1Q08
- Figure 2.2: India mobile market share, by subscription, 1Q08
- Figure 2.3: Vietnam mobile market share, by subscription, 1Q08
- Increasing service revenue and profit margins
- Figure 2.4: Vodafone quarterly service revenue, Europe and EMAPA, Jun-06 to Mar-08
- Figure 2.5: Vodafone quarterly service revenue, EMAPA, Jun-06 to Mar-08
- Figure 2.6: Vodafone total revenue and operating profits, 1H06/07-2H07/08
- Figure 2.7: Vodafone Italy annualized churn rates, Jun-06 to Mar-08
- Significance of application and technology innovation
CHAPTER 3
- TELENOR
- Diverse footprint: varied opportunities and challenges
- Figure 3.1: Telenor subscriptions, by region, 1Q08
- Advanced Nordic markets: maximizing usage and revenue
- Figure 3.2: Telenor operations in Nordic markets, 1Q08
- Figure 3.3: Telenor Nordic network KPIs, 1Q08
- Figure 3.4: Telenor Nordic networks data revenue performance, 1Q08
- Central and Eastern Europe: facing slowdown in growth
- Figure 3.5: Telenor CEE operations, 1Q08
- Figure 3.6: Telenor CEE network KPIs, 1Q08
- Figure 3.7: Telenor CEE networks data revenue performance, 1Q08
- Asia: rapid growth
- Figure 3.8: Telenor operations in Asia, 1Q08
- Figure 3.9: Telenor Asia operations data revenue performance, 1Q08
- Figure 3.10: Pakistan mobile KPIs, 1Q08
- Figure 3.11: Telenor Asian operation KPIs, by network, 1Q08
- Outlook: harnessing mobile broadband
CHAPTER 4
- MTS
- 3+2 = continued growth and development in Russia
- Figure 4.1: Europe largest operators, by proportionate subscriptions, 1Q08
- Figure 4.2: MTS operations in CIS, 1Q08
- Figure 4.3: MTS operations in CIS, 1Q08
- Figure 4.4: MTS ' 3+2' strategy
- Figure 4.5: MTS revenues, 1Q08
- Changing strategy at home
- Figure 4.6: MTS net additions versus ARPU, 1Q05-1Q08
- New segmentation
- Boosting VAS and mobile broadband
- Figure 4.7: MTS Russia, VAS revenues and data ARPU, 1Q06-1Q08
- Figure 4.8: Europe broadband penetration of households, 1Q08
- CIS - growth opportunity
- Figure 4.9: MTS operations in the CIS, by controlling stakes, 1Q08
- Russia' s model fits CIS
- Figure 4.10: MTS ARPU from CIS operations, 1Q06-1Q08
- Technology innovation and geographical expansion at core of MTS
strategy
CHAPTER 5
- TELEFONICA
- Wireless, broadband and TV growth at center of strategy
- Figure 5.1: Telefonica Americas mobile operations, 1Q08
- Latin America: business transformation takes advantage of growth
- Figure 5.2: Telefonica' s Americas markets, mobile penetration, 2Q08
- Sector strategies for Latin America
- Wireless markets
- Competition and pricing policies provide spur for growth
- Figure 5.3: Americas mobile subscriptions forecast, 2008-13
- Figure 5.4: Americas mobile technology forecast, 2008-13
- Broadband markets
- High-speed data creates high-speed consumer demand
- Figure 5.5: Americas broadband subscriptions forecast, 2008-13
- TV markets
- Telefonica channels investment focus on TV
- Bundling to aid fast growth
CHAPTER 6
- AT & T
- The challenge at the top
- Expanding the network
- Reducing churn
- Data application strategies
- Figure 6.1: AT&T Mobility SMS traffic, 1Q05-1Q08
- iPhone spurs data usage
- Managing falling ARPU
- Figure 6.2: US selected operators' financial and KPIs, 1Q08
- Figure 6.3: AT&T ARPU, voice and data, 1Q06-1Q08
- Figure 6.4: AT&T data revenues versus MOU, 1Q06-1Q08
- Possible overseas investments
- Figure 6.5: AT&T ownership and proportionate subscriptions, 1Q08
- Reducing churn and gaining market share in domestic market key to AT&T
CHAPTER 7
- CHINA MOBILE
- Challenges in the 3G era
- Figure 7.1: China: operator financial results, 1Q08
- Maintaining high ARPU
- Figure 7.2: China Mobile key indicators, 1Q08
- China Mobile' s advantage
- Figure 7.3: China: mobile revenue share, 2007
- Figure 7.4: China: mobile revenue share, under new structure, 2007
- Data revenue momentum
- Figure 7.5: China Mobile revenues by service market shares, 1Q08
- TD-SCDMA the major challenge
- Competitive landscape to change with 3G
CHAPTER 8
- APPENDIX
- Appendix 1: Vodafone, network ownership and proportionate subscriptions,1Q08
- Appendix 2: Vodafone, top 10 networks, by proportionate subscriptions, 1Q08
- Appendix 3: Telenor, network ownership and proportionate subscriptions,1Q08
- Appendix 4: Telenor, top 10 networks, by proportionate subscriptions, 1Q08
- Appendix 5: MTS, network ownership and proportionate subscriptions, 1Q08
- Appendix 6: MTS, top networks, by proportionate subscriptions, 1Q08
- Appendix 7: Telefonica, network ownership and proportionate subscriptions,1Q08
- Appendix 8: Telefonica, top 10 networks, by proportionate subscriptions,1Q08
- Appendix 9: AT&T, network ownership and proportionate subscriptions, 1Q08
- Appendix 10: AT&T, networks, by proportionate subscriptions, 1Q08
- Appendix 11: China Mobile, network ownership and proportionate subscriptions, 1Q08
- Appendix 12: China Mobile, networks, by proportionate subscriptions, 1Q08
- Appendix 13: Global subscriptions, by region, 2000-2013
- Appendix 14: Global net additions, by region, 2000-2013
- Appendix 15: Africa subscriptions, by technology, 2000-2013
- Appendix 16: Americas subscriptions, by technology, 2000-2013
- Appendix 17: Asia Pacific subscriptions, by technology, 2000-2013
- Appendix 18: East Europe subscriptions, by technology, 2000-2013
- Appendix 19: West Europe subscriptions, by technology, 2000-2013
- Appendix 20: Middle East subscriptions, by technology, 2000-2013
- Appendix 21: US/Canada subscriptions, by technology, 2000-2013
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