Abstract
As the market for mobile telephony has matured and become increasingly
competitive and, as MNOs' understanding of customer needs has developed, the
basis on which MNOs compete has changed. Historically, MNOs competed on a
simple ' price versus brand stature' trade-off, where incumbents with well
established brands tended to be at a price premium and new entrants competed
on better value tariffs expressed through easily-understood elements such as
large minute and text allowances. More recently, as these differentials have
been competed away by incumbent pricing aligning with new entrant pricing,
more agile MNOs have looked for new battlegrounds in the fight to acquire and
retain high-value customers.
Two such areas - examined in depth in this report - are international
tariffing (defined as placing calls to international destinations from the
customer' s country of residence, distinct from roaming) and postpay SIM-only
packages. Each of these can attract and improve retention of high value
customers: both demand careful proposition design and a relatively high level
of engagement from the customer (in terms of understanding of the benefits to
them) for the MNO to benefit.
Table of Contents
1. OVERVIEW
2. INTRODUCTION
- 2.1. Background to the Report
- 2.2. Report Content
- 2.3. Currency and Conversions
3. INTERNATIONAL CALLING IN THE UK
- 3.1. UK International Calling: Fixed and Mobile Market Background
- 3.2. International Direct Dial Calling Propositions From UK Mobile
Operators
- 3.2.1. O2 International Calling Propositions
- 3.2.2. T-Mobile International Calling Propositions
- 3.2.3. Business Risks and Benefits of International Calling Propositions
- 3.3. ' Free Skype Forever' Proposition From 3
- 3.3.1. Proposition Background And History
- 3.3.2. New ' Free Skype Forever' Proposition
- 3.3.3. 3' s Strategy
4. POSTPAY SIM-ONLY
- 4.1. Introduction
- 4.2. SIM-only
- 4.3. Irish Market Background
- 4.4. Prepay And SIM-only Postpay Packages By Operator
- 4.4.1. O2 Ireland
- 4.4.2. Vodafone Ireland
- 4.4.3. Meteor
- 4.5. 3 Ireland
- 4.6. Financial Impacts Of SIM-only and Hybrid Propositions
- 4.6.1. Monthly Gross Margin Estimates
- 4.6.2. Customer Lifetime Value Estimates
- 4.6.3. Conclusion
- 4.6.4. Footnote: Modelling Assumptions
5. INTERNATIONAL AND SIM-ONLY IN OTHER COUNTRIES
- 5.1. International Calling In Spain
- 5.1.1. Vodafone
- 5.1.2. Movistar
- 5.1.3. DialAbroad
- 5.1.4. Commentary
- 5.2. SIM-only In France
- 5.2.1. SFR
- 5.2.2. Orange France
6. RECOMMENDATIONS
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