Abstract
SIM-only postpay connections today account for a small proportion of mobile
operators' total postpay connections (typically ranging from 1% to 5%). This
is significantly lower than prepay SIM-only connections which account for
20%-50% of all prepay connections in most European markets. The large
disparity is due to the presence of heavy handset subsidies in most postpay
markets which render SIM-only postpay propositions less attractive than they
would otherwise be. However, MMD believes that the postpay SIM-only market
segment will grow over time, driven initially by the reduction of handset
subsidies and subsequently stimulated by operator initiatives to develop the
market with more aggressive propositions and promotions.
The current paper analyses this embryonic market segment and:
- Reveals how the postpay SIM-only segment has the potential to grow to
account for more than half of all postpay connections in subsidy free markets
- Provides detailed SIM-only service proposition descriptions for 26 MNOs
and MVNOs across 9 different markets (Australia, Belgium, France, Germany,
Ireland, Italy, Netherlands, Switzerland and the UK)
- Details the characteristics of the postpay SIM-only segment which make it
a potentially lucrative segment with a low cost of acquisition
- Describes how some service propositions have been designed in a negative
manner which serves to curb demand for postpay SIM-only connections
- Highlights how progressive operators who recognise the potential of this
segment are implementing measures to increase the attractiveness of their
SIM-only postpay offers
- Details how improved visibility of SIM-only postpay offers is needed
through on-line and retail channels in order to increase the addressable market
Table of Contents
1. Overview
2. Introduction
3. Strategic Considerations
- 3.1. The Case for Proactive Market Development
- 3.2. Positive Positioning of Postpay SIM-only Offers
- 3.3. Why Postpay SIM-only will grow
- 3.4. Segmentation
- 3.4.1. The Low Cost Online Segment
- 3.4.2. The International SIM segment
- 3.4.3. The Family Segment
- 3.4.4. The Kids/Youth Segment
- 3.4.5. New Postpay SIM-only Segments
- 3.5. Channel Development
4. Australia
- 4.1. Telstra' s Member Plans
- 4.1.1. Member Plan Proposition
- 4.2. Vodafone' s CAP Plans
- 4.3. Virgin Mobile - Postpay
5. Belgium
6. France
- 6.1. Orange
- 6.2. Debitel "Ma Puce" Forfait Offer
- 6.3. SFR SIM-only Offers
- 6.4. Virgin Mobile
7. Germany
- 7.1. T-Mobile Germany
- 7.1.1. Postpay Plans Containing Inclusive Multimedia Services
- 7.2. Vodafone Germany
- 7.2.1. Enhanced Postpay Plans Bundling 3G Services
- 7.2.2. SuperFlat
- 7.3. O2 Germany
- 7.3.1. klarmobil
- 7.3.2. Tchibo
8. Ireland
- 8.1. Vodafone
- 8.2. O2
- 8.3. Meteor Postpay
9. Italy
10. Netherlands
- 10.1. KPN
- 10.1.1. KPN Mobiel SIM-only Tariff Plans
- 10.1.2. KPN' s Hi Tariff Plans
- 10.2. Vodafone Netherlands
- 10.3. Orange Netherlands
11. Switzerland
- 11.1. Swisscom Mobile
- 11.2. Orange Switzerland
- 11.3. Sunrise
12. UK
- 12.1. Vodafone
- 12.2. O2
- 12.3. T-Mobile UK
- 12.4. Virgin Mobile
- 12.4.1. Enhancing the SIM-only Proposition With Promotional Incentives
- 12.4.2. A Free Extra SIM for a Friend or Family Member
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