国外运营商十大非语音Nonvoice-业务案例

TheWorld’sTopTenNon-voiceServicesforMobileOperatorsAlastairBrydonandMarkHeathwithWindsorHoldenandTonyLavenderContents[1]Documentmap–ExecutivesummaryExecutivesummaryDocumentmap–IntroductionIntroductionDocumentmap–ServiceevaluationprocessLeadingnon-voiceservicesfromaroundtheworldhavebeenevaluatedbyanexpertpanelinordertoderivethetoptenShortlistedserviceswereevaluatedonthebasisofmarketpotential,effectivenessofimplementationandsuitabilityforreproductionDocumentmap–ThetoptenservicesThetoptenlistencompassesdiversenon-voiceservicesNumber1:VodafoneCasaFASTWEB(VodafoneItaly)VodafoneCasaFASTWEBcombineshome-zonevoicetariffswithfixedbroadbandMobileoperatorscanbenefitsubstantiallyfromoffering

fixedbroadbandservicesVodafoneCasaFASTWEBiswellplacedtocaptureasignificantshareofthefixedbroadbandmarketinItalyInpartnershipwithFASTWEB,Vodafonehasquicklyandcosteffectivelydevelopedahigh-speedbroadbandserviceusingLLUBADSL2+andfibreThebundlingandpricingofVodafoneCasaFASTWEBencouragesFMSMobileoperatorsinothermarketsmayneedtoadapttheapproachadoptedbyVodafoneItalyNumber2:SMS(O2UK)O2UKoffersSMSbundlesforprepaidandcontracttariffsO2UKleadstheworldinmessagingARPUComparedtootherUKoperators,O2hasachievedasubstantialincreaseinSMSvolumeswithoutasignificantdropinpricingO2UKhasovertakenO2IrelandastheleadingSMSARPUgeneratorO2UKtargetedtheyouthsegmentearlierthanotherUKoperatorsandoffersanumberoffeaturestoencourageSMSusageO2UKshowsthatoperatorscanstilldobetterwithSMSOperatorsmusttrytodriveSMSvolumewithoutsubstantialpricecutsNumber3:MobileTVandVideoStreaming(3UK)3UKoffersawidevarietyofbroadcastTVandvideoclipsusingW-CDMAstreamingCustomerscanbuythemedbundlesofcontentcontainingTVandvideo3UKisexploitingthedemandformobileTVandvideoservicesSlideno.Slideno.TheWorld’sTopTenNon-voiceServicesforMobileOperatorsContents©AnalysysResearchLimited2007Contents[2]MobileTVandvideohavehelped3UKtoachievethehighest3GmarketshareintheUKandthehighestnon-voiceARPUintheworldBreadth,depthandbrandingofcontentarekeytothesuccessofmobileTVandvideofrom3UK3UKhasatrackrecordofofferingpopularmobileTVandvideocontentinordertoattractcustomers3UKusesW-CDMAstreamingtodeliveracombinationofbroadcastandunicastTVservicesVideoclipsconsumemuchlesscapacityandgeneratemuchhigherrevenuepermegabytethanbroadcastTVchannelsMobileTVandvideoserviceshavestrongpotentialinotherdevelopedmarketsNumber4:BlackBerryEmailandIM(T-MobileUSA)T-MobileoffersarangeofBlackBerrytariffs,includingbundleswithlargeallocationsofvoiceminutesTherearesignificantopportunitiesforemailandIMinbothenterpriseandconsumermarketsMobileemailandIMrevenueswillincreasesignificantlyT-MobileoffersBlackBerryterminalsthatarestylishandeasytouseT-MobilehasdevelopedBlackBerryservices,whichareunderpinnedbyhigh-qualityserviceandaimedatenterprisesandconsumersDevelopedcountriesofferthegreatestopportunitiesfor

mobileemailandIMservicesNumber5:MobileBroadband(SprintNextel,USA)SprintNexteloffersmobilebroadbandaccessusing

CDMA2000EV-DORevisionAMobilebroadbandhassignificantpotential

indevelopedanddevelopingmarketsSprintNextel’sfocusonachievinghighthroughputsand

wideavailabilityisunusualandcommendableSprintNextelhasaclearstrategyandeffectivemarketingtotargetenterprisecustomers,althoughitsWiMAXplanscreateuncertaintySuccesswithmobilebroadbandmayrequiresubstantialinvestmentMobileoperatorsmustconsiderthethreatofmobilebroadbandtorevenuesfromexistingvoiceandmessagingservicesNumber6:MobileTVBroadcasting(3Italy)3ItalywasthefirstoperatorinEuropetolaunchcommercialmobileTVbroadcastingSlideno.Slideno.TheWorld’sTopTenNon-voiceServicesforMobileOperatorsContents©AnalysysResearchLimited2007Contents[3]3ItalyoffersavarietyofprepaidandpostpaidmobileTVtariffs,alongwithfreehandsetpromotionsThereiscompellingevidenceofconsumerdemandfor

mobileTVbroadcasting3Italy’sDVB-HservicehasgrownsteadilyandgeneratessignificantARPU3Italyhasdevelopedanend-to-endmobileTVplatformofferinggood-qualityserviceto75%oftheItalianpopulation3ItalyoffersonlyasmallnumberofmobileTVhandsets,butwillavoidtheneedtochangetheseinthefuture3ItalycombinesmainstreamTVwithpremiumchannelsandmade-for-mobilecontent3ItalyhasalsogeneratedusefulrevenuefromadvertisingMostoperatorswillbeunabletoemulate3ItalyinacquiringacheapDVB-HlicenceandinfrastructureNumber7:EZChaku-utaFull(KDDI,Japan)EZChaku-utaFullwasthefirstfull-trackdownloadserviceinJapan,wheremobilephonesdominatethemusicdownloadmarketEZChaku-utausagehasincreasedsteadilysinceitslaunchandisausefulrevenuestreamalongsideotherservicesEZChaku-utaFullbenefitsfrom(andhashelpedtodrive)take-upofKDDI’shigh-performanceCDMA2000

EV-DOnetworkAllnewCDMA2000EV-DOhandsetssupportEZ

Chaku-utaFullandoffersophisticatedcapabilitiesEZChaku-utabenefitsfromawiderangeofcontentandavarietyofservicesthatstimulatedownloadsandencouragemobilephonesasmusicplayersFlat-ratedatatariffshaveencouragedcustomerstousetheserviceTherearegoodopportunitiestoreproducethesuccessofEZChaku-utainothermarkets,buttherewillbecompetitionNumber8:CyworldMobile(SKTelecom,SouthKorea)CyworldMobilebuildsonahighlysuccessfulfixedInternetportalCyworlddemonstratesthemassivepotentialoffixedandmobileonlinecommunityportalsCyworldisanexcellentexampleoffixed–mobileconvergenceThegrowingsuccessofMySpaceandothersocial-networkingsiteshighlightstheglobalopportunitiesSlideno.Slideno.TheWorld’sTopTenNon-voiceServicesforMobileOperatorsContents©AnalysysResearchLimited2007Contents[4]ThereareopportunitiesforjointventureswithCyworld,MySpaceandotheremergingcommunityportalsNumber9:DCMXmobilepayment(NTTDoCoMo,Japan)NTTDoCoMooffersavarietyofmobilepaymentoptionsMobilepaymentshavepotential,giventhemagnitudeofcredit-cardpurchasesandtherapidadoptionoftheDCMXserviceNTTDoCoMohasinvestedinacredit-cardcompanyandseededalargenumberofFeliCa-equippedhandsetsandpaymentterminalsintothemarketSophisticatedsecuritymeasures,suchasfingerprintauthentication,makeDCMXmoresecurethanconventionalcreditcardsDCMXcanbeusedtomakeeithersmallorlargepaymentsandoffersotherbenefitsMobilepaymentserviceswillrequiresubstantialinvestmentandarefarfrom‘quickwins’Number10:MiniCallBubbleTALK‘voiceSMS’(VodafoneEgypt)Vodafone’sMiniCallserviceallowsvoicemessagestobe

sentlikeSMSmessagesWhileitisearlydaysfor‘voiceSMS’services,theinitialsignsareencouragingMiniCalliseasytouse,affordableandcomplementaryto

othermessagingservicesTherearesignificantopportunitiesfor‘voiceSMS’services,particularlyindevelopingmarketsDocumentmap–Lessonsfromthetop-tenservicesSuccessfulservicesarecharacterisedbyhigh-quality

end-to-endimplementationSeveralservicesinthetopten,includingtheNumber1,demonstratetheimportanceofmobileoperatorslookingbeyondtheircorebusinessNear-ubiquitous3Gcoverageisanimportantenablerofrevenuegrowthfromnon-voicecellularservicesindevelopedmarketsHandsetsplayacriticalroleinthedeliveryofmobileservicesMobilemessagingcontinuestobeimportant,butoperatorsmustnotbecomedistractedbypictureandvideomessagingManyofthetoptenserviceshaverequiredsubstantialinvestmentUser-generatedcontentandconvergencebetweenfixedandmobileservicesarebecomingincreasinglyimportantSlideno.Slideno.TheWorld’sTopTenNon-voiceServicesforMobileOperatorsContents©AnalysysResearchLimited2007Contents[5]Indevelopedmarkets,significantinvestmentmayberequiredasmobileoperatorspushbeyondtheirtraditionalbusinessesIndevelopingmarkets,thereisstronggrowthpotentialinprovenservices,usingstandardmobileterminalsDocumentmap–ActionsActionsformobileoperators[1]Actionsformobileoperators[2]Documentmap–Authors,copyrightandglossaryAuthorsAuthors(continued)AcknowledgementsandcopyrightDisclaimerGlossaryofterms[1]Glossaryofterms[2]Glossaryofterms[3]112. Documentmap–ListsoffiguresandtablesListoffiguresListoftablesDocumentmap–AboutAnalysysreportsandservicesReportsfromAnalysysResearchMarketintelligenceservicesfromAnalysysResearchCustomResearchfromAnalysysResearchAnalysysConsultingSlideno.Slideno.TheWorld’sTopTenNon-voiceServicesforMobileOperatorsContents©AnalysysResearchLimited2007DocumentmapTheWorld’sTopTenNon-voiceServicesforMobileOperatorsDocumentmap:ExecutivesummaryThetoptenservicesExecutivesummaryServiceevaluationprocessAboutAnalysysreportsandservicesIntroductionActionsAuthors,copyrightandglossaryListoffiguresandtablesLessonsfromthetoptenservices©AnalysysResearchLimited2007ExecutivesummaryThetoptencomprisesservicesthatleadtheworldinmarketpotential,implementationandsuitabilityforreproduction.Theywillhaveenduringappealtocustomersandrevenuepotentialforoperators.Thetoptencontainsamixofexistingservices,suchasSMSandBlackBerryemail,andnewservices,suchasmobilepaymentandmobileTV,showingtheimportanceofexploitingexistingopportunitiesaswellasdevelopingnewrevenuestreamsforthefuture.TheNumber1serviceisdeliveredusingDSL,notcellulartechnology.Mobilemessagingiscurrentlythemajornon-voicerevenuegenerator,anditscontinuedimportanceisreflectedinthefactthatthreeofthetoptenservicesaremessaging-related.3GtechnologyisfundamentaltomobileTVstreaming,mobilebroadband,musicdownloadsandmultimediacommunities,whicharemajoropportunitiesindevelopedmarkets.TheWorld’sTopTenNon-voiceServicesforMobileOperatorsExecutivesummaryTheworld’stoptennon-voiceservices1.VodafoneCasaFASTWEB,Vodafone(Italy)2.SMS,O2(UK)6.MobileTVBroadcasting,3(Italy)3.MobileTVandVideoStreaming,3(UK)4.BlackBerryEmailandIM,T-Mobile(USA)5.MobileBroadband,SprintNextel(USA)7.EZChaku-utaFull,KDDIau(Japan)8.CyworldMobile,SKTelecom(SouthKorea)9.DCMXMobilePayment,NTTDoCoMo(Japan)10.MiniCall

‘VoiceSMS’,Vodafone(Egypt)Thetoptennon-voiceservicesprovideuniqueinsightintothegrowthopportunitiesformobileoperators©AnalysysResearchLimited2007DocumentmapTheWorld’sTopTenNon-voiceServicesforMobileOperatorsDocumentmap:IntroductionThetoptenservicesExecutivesummaryServiceevaluationprocessAboutAnalysysreportsandservicesIntroductionActionsAuthors,copyrightandglossaryListoffiguresandtablesLessonsfromthetoptenservices©AnalysysResearchLimited2007IntroductionWithdownwardpressureonvoiceARPUs,mobileoperatorsneedtofindwaysofincreasingthereturnfromnon-voiceservices.However,despiteanabundanceofnon-voiceserviceinitiativessincetheintroductionofGPRSand,morerecently3G,manyoperatorshavefailedtobringaboutasignificantincreaseinnon-voiceARPU.1Facedwithanincreasinglydiverserangeofnon-voicechoices,mobileoperatorsneedtoidentifyandimplementthoseservicesthataddthemostvaluetotheirbusinesses.Inparticular,mobileoperatorsneedtoanswerthefollowingquestions:Whichwellestablishedandnewnon-voiceservicesarelikelytohavethegreatestbenefitsfortheirbusinesses,forexampleintermsofARPU,profitability,andtheacquisitionandretentionofcustomers?Whataretheleadingexamplesofdifferenttypesofservice,suchasmobileTV,musicandbroadbandInternetaccess?Howcantheseservicesbeimplementedmosteffectively?Whatchallengesmustoperatorsovercomeiftheyaretoimplementtheseservicessuccessfully?Aretheservicessuitableforreproductionandimprovementinothermarkets?1

Forfurtherdetailsofvoiceandnon-voiceARPUtrends,seeHeath,M.andBrydon,A.withHolden,W.,MobileOperatorPerformance

Benchmarks,AnalysysResearch(Cambridge,2006).TheWorld’sTopTenNon-voiceServicesforMobileOperatorsIntroduction©AnalysysResearchLimited2007DocumentmapTheWorld’sTopTenNon-voiceServicesforMobileOperatorsDocumentmap:ServiceevaluationprocessThetoptenservicesExecutivesummaryServiceevaluationprocessAboutAnalysysreportsandservicesIntroductionActionsAuthors,copyrightandglossaryListoffiguresandtablesLessonsfromthetoptenservices©AnalysysResearchLimited2007Leadingnon-voiceservicesfromaroundtheworldhavebeenevaluatedbyanexpertpanelinordertoderivethetoptenDiverseserviceswereconsidered,forexample:Shortlistedserviceswerereviewedonthegroundsof:previousresearchglobalcontactscompanyreportsindependentreviewsconferencesquantitativeandqualitativeassessmentservicesscoredagainstthreecriteria:marketpotential,

implementationandsuitabilityforreproductionbest-in-classservicesselected(toavoidrepetitionofsimilarservicesinthetopten)Leadingserviceswereidentifiedusingvarioussources,forexample:networkoperatorservicesthird-partyserviceswellestablishedservicesnewservicesService

evaluationService

nominationGlobal

servicesShortlistToptenTheWorld’sTopTenNon-voiceServicesforMobileOperatorsServiceevaluationprocess©AnalysysResearchLimited2007Shortlistedserviceswereevaluatedonthebasisofmarketpotential,effectivenessofimplementationandsuitabilityforreproductionEnd-userdemandTake-upUsageARPURevenueRevenuepermegabyteProfitabilityforoperatorsversusaffordabilityforusersChurnreductionServiceavailability/coveragePerformance/qualityofserviceQuality/valueofcontentTerminal/handsetcharacteristics/capabilitiesPricingPromotion/brandingEaseofuseCustomerserviceDifferencesinmarketdemand,revenuepotential,etc.CompetitiveenvironmentTechnologyRegulationInvestmentrequiredSize/globalpresencerequiredPotentialfordifferentiationIntellectualpropertybarriersMarketpotentialImplementationSuitabilityforreproductionMeasurementsofthepotential(oractual)sizeoftheopportunity,suchas:Assessmentofend-to-endserviceimplementation,including:Factorsaffectingreproductionbyotheroperatorsormarkets,

forexample:TheWorld’’sTopTenNon-voiceServicesforMobileOperatorsServiceevaluationprocess©AnalysysResearchLimited2007DocumentmapTheWorld’’sTopTenNon-voiceServicesforMobileOperatorsDocumentmap:ThetoptenservicesThetoptenservicesExecutivesummaryServiceevaluationprocessAboutAnalysysreportsandservicesIntroductionActionsAuthors,copyrightandglossaryListoffiguresandtablesLessonsfromthetoptenservices©AnalysysResearchLimited2007Thetoptenlistencompassesdiversenon-voiceservicesSuitabilityforreproductionMarketpotentialImplementation1.VodafoneCasaFASTWEBVodafone(Italy)2.SMSO2(UK)7.EZChaku-utaFullKDDIau(Japan)9.DCMXMobilePaymentNTTDoCoMo(Japan)10.MiniCallBubbleTALK‘VoiceSMS’’Vodafone(Egypt)6.MobileTVBroadcasting3(Italy)3.MobileTVandVideoStreaming3(UK)8.CyworldMobileSKTelecom(SouthKorea)4.BlackBerryEmailandIMT-Mobile(USA)5.MobileBroadbandSprintNextel(USA)82%85%87%85%76%89%85%83%74%59%76%70%74%82%84%80%60%64%73%66%78%77%82%79%53%85%81%73%62%60%81%68%59%60%77%65%52%61%73%62%RatingTheWorld’’sTopTenNon-voiceServicesforMobileOperatorsThetoptenservices©AnalysysResearchLimited2007Number1:VodafoneCasaFASTWEB(VodafoneItaly)TheWorld’sTopTenNon-voiceServicesforMobileOperatorsNumber1:VodafoneCasaFASTWEB(VodafoneItaly)Fixedbroadbandservicesoffermobileoperatorsanewrevenuestream,potentialchurnreduction,protectionfromconvergedservicecompetitionandsupportforFMSstrategiesVodafone’’slargecustomerbaseandstrongbrandputitinagoodpositiontoacquirebroadbandcustomersinItalywherebroadbandpenetrationislowFASTWEBhasachievedhighlevelsofbroadbandARPUinItalyPartnershipwithFASTWEBisaquick,cost-effectiverouteintofixedbroadbandLLUBimplementationofADLS2+andfibreenablesstrongservicedifferentiationwithfastdataratesCombiningthestrongbrandsofVodafoneandFASTWEBhelpstoattractcustomersIntegrationwithVodafoneCasaFMStariffsstrengthensthemotivationforcustomerstorelinquishfixedvoiceservicesOthermobileoperatorsshouldconsiderameansofdeliveringfixedbroadbandservicesOperatorsarealreadyadoptingavarietyofsolutions,includingresaleof(andbitstreamaccessto)incumbentoperatorservices,LLUBandpartnershipOperatorsneedtochooseanappropriatebroadbandsolutionaccordingtotheirsizeandlocalmarketcharacteristics.LLUBhascostandcapabilitybenefits,buttheupfrontinvestmentmaydetersmalleroperatorsMarketpotential82%Implementation87%Suitabilityforreproduction85%Serviceevaluation85%FixedbroadbandservicesoffermajoropportunitiesformobileoperatorsTheVodafone/FASTWEBpartnershipcombinesthetechnicalbenefitsofunbundledADSL2+andfibrewithwellknownbrandsandexistingcustomerstoattractbroadbandcustomersinItaly©AnalysysResearchLimited2007VodafoneCasaFASTWEBcombineshome-zonevoicetariffswithfixedbroadbandInSeptember2006,VodafoneandFASTWEB(Italy’’slargestalternativebroadbandprovider)launchedajointventuretodeliverfixedbroadbandservicestoVodafone’scustomers.ServicesaresoldthroughVodafone’sownretailchannelswithtechnicalsupportfromFASTWEB.VodafoneCasaFASTWEBcustomerscombineoneofthevoicetariffsshowninTable1withoneofthebroadbandtariffsshowninTable2.TheWorld’sTopTenNon-voiceServicesforMobileOperatorsADSL

FlatADSLRicaricabileActivationprice(includingmodem)Standardservice(6Mbit/sdownlink)

freeADSL2+service(20Mbit/sdownlink)EUR80(USD102)Standardservice(6Mbit/sdownlink)EUR45(USD57)ADSL2+service(20Mbit/sdownlink)EUR125(USD159)UsagepriceUnlimitedEUR10(USD25.43)

permonth100hoursfreethenEUR1.50(USD1.91)perhourTable2:VodafoneCasaFASTWEBADSLtariffs,March2007[Source:AnalysysResearch,2007]Vodafone

CasaZeroVodafone

CasaPiùMonthlypriceEUR9.99

(USD12.71)EUR19.99

(USD25.43)Callsincluded1500minutesofmobilecallsfromthehometofixednumbers1500minutesofmobilecallsfromthehometofixednumbersandVodafonemobilesAdditionalconnectionchargespercallEUR0.15(USD0.19)EUR0.15(USD0.19)Table1:VodafoneCasavoicetariffs,March2007[Source:AnalysysResearch,2007]ServicedescriptionNumber1:VodafoneCasaFASTWEB(VodafoneItaly)©AnalysysResearchLimited2007MobileoperatorscanbenefitsubstantiallyfromofferingfixedbroadbandservicesTheWorld’sTopTenNon-voiceServicesforMobileOperators2Fordetailedanalysisoftheopportunitiesformobileoperatorsinfixedbroadbandservices,seeBrydon,A.andHeath,M.withWood,R.,MobileOperatorStrategiesforFixedBroadband,AnalysysResearch(Cambridge,2007).Figure1:Pro-rataannualspendonfixedbroadbandservices,perbroadbandhousehold,1Q2006[Source:AnalysysResearch,2007]Offeringfixedbroadbandserviceswillallowmobileoperators2to:increaseARPUbytakingadvantageofhouseholdspendonfixedbroadbandservices,asshowninFigure1bundlefixedbroadbandwithmobileservices,whichcanhelptoreducemobilechurncompeteagainstfixedoperatorsandotherorganisations,suchasbroadcastersandretailers,whichofferbundlesoffixedandmobileservicesestablishakeypartoftheirFMSstrategy,bybreakingtheretaillinkwithincumbentfixedoperatorsachievegreatercontrolofthecostandqualityofbroadbandconnectionstofemtocells,iftheychoosetoadoptthisarchitecture.MarketpotentialNumber1:VodafoneCasaFASTWEB(VodafoneItaly)©AnalysysResearchLimited2007VodafoneCasaFASTWEBiswellplacedtocaptureasignificantshareof

thefixedbroadbandmarketinItalyTheWorld’’sTopTenNon-voiceServicesforMobileOperatorsFigure2:Householdpenetrationoffixedbroadbandservicesinselectedcountries,September2001toSeptember2006[Source:AnalysysResearch,2007]AtthelaunchofVodafoneCasaFASTWEB,theItalianbroadbandmarketwaslaggingbehindsomeotherdevelopedmarkets,asshowninFigure2,leavinggreaterscopeforVodafonetoseizeasubstantialshareofthegrowingmarket.With26.2millionmobilecustomersinItalyattheendof2006,VodafoneiswellplacedtoattractthesecustomerstoitsDSLservice.Furthermore,FASTWEBwasalreadyItaly’sleadingindependentbroadbandsupplier,with1millioncustomersattheendof2006.TheaveragebroadbandrevenueperhouseholdinItalywasEUR17.7(USD22.5)permonthin2006,whileFASTWEBmanagedtoachieveresidentialARPUofEUR66.4(USD84)inDecember2006.In2006,VodafoneItaly’’smobilevoiceARPUwasEUR21.0(USD26.7)andUSitsmobilenon-voicewasARPUEUR4.80(USD6.1).MarketpotentialNumber1:VodafoneCasaFASTWEB(VodafoneItaly)©AnalysysResearchLimited2007FASTWEBhasabroadbandnetworkthatcoversawidearea.Itsservicesareavailableto80%oftheItalianpopulation.Wirelesstechnologies,suchasCDMA2000EV-DO,W-CDMAHSDPAandWiMAX,canprovideadequatebroadbandaccesswherethereisnofixedalternative(forexampleinruralareasordevelopingmarkets).However,thesewirelesstechnologiescannotmatchtheperformanceorcostpermegabyteofDSLforalargenumberofcustomers.Therefore,itwouldnotberealisticforamobileoperatortocompetedirectlywithfixedbroadbandservicespurelyonthebasisofthesetechnologies.FASTWEBhasimplementedanLLUBnetworkusingfibreandADSL2+,enablingittodeliverdownstreamdataratesofupto20Mbit/stocustomers.Someoperators(includingVodafoneUK)haveoptedforresaleof,orbitstreamaccessto,incumbentnetworkoperatorDSLservices,whichlimitsthescopefordifferentiation.3LLUBcanbemuchcheaperthanbitstreamaccessorresaleforthedeliveryofbroadbandservicestoalargecustomerbase.VodafoneItalycanbenefitfromLLUBwithFASTWEB,withoutmakingitsownup-frontinvestmentinLLUBequipment.InpartnershipwithFASTWEB,Vodafonehasquicklyandcosteffectivelydevelopedahigh-speedbroadbandserviceusingLLUBADSL2+andfibreTheWorld’sTopTenNon-voiceServicesforMobileOperators3Fordetailsofthecharacteristicsandcostsofdifferentimplementationoptionsforfixedbroadbandservices,seeBrydon,A.andHeath,M.withWood,R.,MobileOperatorStrategiesforFixedBroadband,AnalysysResearch(Cambridge,2007).ImplementationNumber1:VodafoneCasaFASTWEB(VodafoneItaly)©AnalysysResearchLimited2007ThebundlingandpricingofVodafoneCasaFASTWEBencouragesFMSVodafoneCasaFASTWEBbuildsontheexistingVodafoneCasaFMStariffs,whichencouragecustomerstousetheirmobilesforvoicecallsinthehomewithbundlesofcheapcalls.VodafoneoffersprepaidandpostpaidversionsofVodafoneCasaFASTWEB,recognisingthatprepaidservicesareverypopularinItaly.Vodafonehasavoidedpricecompetitionwithotherfixedbroadbandservices.Itoffersbundlesofservicesthatarepricedatanattractivelevelforconsumers.However,thebundlesarenotsocheapastocompromisetheprofitabilityofthefixedandmobileelements.Vodafoneaimstoattractcustomerswithitsuniquecombinationoffixedandmobileservicesratherthanitscheapservices.Incontrast,OrangeUKoffersfreebroadbandservicesformobilecustomerswhospendmorethanGBP30(USD38)permonth.ThesebroadbandservicesareinevitablyacosttotheOrangebusiness.Somefixedbroadbandservicesofferedbymobileoperators,suchasVodafoneAtHomeintheUK,offerfixedvoicecallsaspartofthepackage.Whilethishelpstostrengthenthemarketpropositionforthecustomer,itmayweakentheroleofmobileservices.Instead,VodafoneCasaFASTWEBreliesontheexistingVodafoneCasavoicetariffs,whichofferfixed-ratecallsfrommobilephoneswhileinthehome.TheWorld’sTopTenNon-voiceServicesforMobileOperatorsImplementationNumber1:VodafoneCasaFASTWEB(VodafoneItaly)©AnalysysResearchLimited2007MobileoperatorsinothermarketsmayneedtoadapttheapproachadoptedbyVodafoneItalyTheWorld’sTopTenNon-voiceServicesforMobileOperatorsMobileoperatorsinallmarketscanbenefitfromfixedbroadbandservices.However,differentsolutionsmaybeneededindifferentsituations.OperatorscanlearnfromVodafoneCasaFASTWEBandexamplesinothermarkets,asshowninTable3.SuitabilityforreproductionDescriptionStrengthsWeaknessesVodafoneCasaFASTWEBVodafone(Italy)PartnershipwithFASTWEBofferingdifferentiatedservicesbasedonLLUBADSL2+andfibreEUR10(USD12.72)permonthforunlimitedusageUpto20Mbit/sdownlinkdatarateCombinationofVodafoneandFASTWEBbrandsIntegrationwithVodafoneCasavoicetariffs20Mbit/soptionexpensiveforcustomersSinglebillcouldappearexpensiveOperatorsinothercountriesmaynotbeabletofindapartnerlikeFASTWEBVodafoneatHomeVodafone(UK)DSLbitstreamaccesstoBT’snetworkGBP25(USD47)permonthforunlimitedbroadbandusageandfixedvoicecallstoUKlandlinesPriceincludeslinerental,tobreakthecustomer’srelationshipwithBTSeparatebillsformobileandbroadbandtoavoidbillshockCheapfixed-networkcallscouldweakenFMSstrategyBitstreamaccesslimitsprofitabilityanddifferentiationfromBTservicesOrangeBroadband

Orange(UK)UndertakingitsownLLUBandofferingfreebroadbandaccessandvoicecallsfromthefixedlineformobilecustomerspayingGBP30(USD56)ormorepermonthLLUBenablesservicedifferentiationandlowcostiftake-upisgoodSmalloperatorsmaynotbeabletojustify(orrisk)up-frontinvestmentinLLUBFreebroadbandmaybeunnecessaryandisasignificantcostTable3:StrengthsandweaknessesofVodafoneCasaFASTWEBandfixedbroadbandservicesfromothermobileoperators[Source:AnalysysResearch,2007]Number1:VodafoneCasaFASTWEB(VodafoneItaly)©AnalysysResearchLimited2007Number2:SMS(O2UK)TheWorld’sTopTenNon-voiceServicesforMobileOperatorsNumber2:SMS(O2UK)Messagingisthelargestcontributortonon-voiceARPUinEuropeandtheUSAInWesternEurope,SMSgeneratedEUR14.4billion(USD18.3billion)inrevenuein2006O2UKleadstheworldinmessagingARPU;averageSMSARPUwasGBP6.30(USD11.82)permonthinthelastthreemonthsof2006ClearfocusonSMSmarketleadershipEarlyavailabilityofSMSbundlesforprepaidandpostpaidcustomersStrongmarketingandpromotion,particularlytargetingyoungcustomersonprepaidtariffsSignificantvolumeincreasesachievedwithoutsubstantialpricecutsEasytoreplicateinde