Home > Market Research > Handsets & Devices > Bundling Notebooks and Mobile Broadband - The Business Case for MNOs
Most postpaid subscribers in developed markets fully expect to receive a free or discounted mobile handset when they renew their contract. Now mobile operators appear to be ready to replace the phone with a notebook. The new model looks familiar: fixed-line providers have long been selling desktop PCs on installment plans to build up the addressable markets for their Internet services.
Bundles of computers with broadband subscriptions are available from many telecom heavyweights globally, including Telmex, Telefónica O2 and TeliaSonera.
Now the mobile industry is gearing up to do the same for the HSPA networks that are emerging after recent upgrades, with speeds reaching up to 14Mbps and plenty of spare capacity. The GSM Association reports that as of the beginning of February 2008, 229 operators have committed to launching HSPA networks, and 162 of them have now launched HSPA commercially in 73 markets.
Pyramid Research's new report, Bundling Notebooks and Mobile Broadband delivers:
-Analysis of the main drivers and the business case for launching the new bundle for a mobile operator with
-Emphasis on the impact of notebook-data bundling on the operators' performance.
-Data from our unique Mobile Broadband PC Survey conducted by Pyramid Research in partnership with the GSM Association and Microsoft in the summer of 2007.
-The Mobile Broadband PC Survey which involved the collaboration of mobile operators and market research agencies in 12 countries in the Asia-Pacific region, Europe, the Middle East and Africa, provided insight into consumer attitudes toward buying a notebook as well as toward mobile data services and applications.
This report addresses the following key questions:
-Why sell a bundle with a notebook if all an operator wants is to sell a mobile data subscription?
-Is a notebook subsidy a must, and what options are available to operators that have large prepaid customer bases and rely on retail distributors to sell mobile handsets?
-What are the key drivers behind bundling mobile broadband with notebooks for the mass market?
-What is the business case for mobile broadband notebook bundling?
-What is the reason for mobile broadband notebook bundles and why is it beneficial to do so?
Most postpaid subscribers in developed markets fully expect to receive a free or discounted mobile handset when they renew their contract. Now mobile operators appear to be ready to replace the phone with a notebook. The new model looks familiar: fixed-line providers have long been selling desktop PCs on installment plans to build up the addressable markets for their Internet services. Bundles of computers with broadband subscriptions are available from many telecom heavyweights globally, including Telmex, Telefónica O2 and TeliaSonera. Now the mobile industry is gearing up to do the same for the HSPA networks that are emerging after recent upgrades, with speeds reaching up to 14Mbps and plenty of spare capacity. The GSM Association reports that as of the beginning of February 2008, 229 operators have committed to launching HSPA networks, and 162 of them have now launched HSPA commercially in 73 markets.
Little analysis has been done to date on the impact of selling a subscription-based notebook–data bundle to the consumer market. This report, Bundling Notebooks and Mobile Broadband; the Business Case for MNOs, is dedicated to filling that void and providing the analysis of the main drivers and the business case for launching the new bundle for a mobile operator. The emphasis is on the impact of notebook-data bundling on the operators’ performance. The analysis leverages data from our unique Mobile Broadband PC Survey — henceforth referred to as the MBPC Survey — conducted by Pyramid Research in partnership with the GSM Association and Microsoft in the summer of 2007. The survey, which involved the collaboration of mobile operators and market research agencies in 12 countries in the Asia-Pacific region, Europe, the Middle East and Africa, provided insight into consumer attitudes toward buying a notebook as well as toward mobile data services and applications.
Mobile Operators
-Understand the main drivers behind adding a 3G-enabled notebook to the portfolio of mobile devices. Evaluate the impact of launching the mobile broadband – notebook bundle on the key performance indicators, such as churn, subscriber additions, ARPU and usage. Learn from the experience of mobile pioneers who already offer bundles of data and embedded notebooks, as well as experience of fixed communications providers who sell subscription PC services.
-Develop an effective business model of providing a subscription bundle, adjusted for local market conditions, such as high share of prepaid customers.
PC manufacturers, Chipset and Semiconductor companies
-Quantify end-user demand for the embedded notebooks in the emerging and developed market. Assess growing interest in selling mass-market notebooks among mobile operators. Understand main requirements of home notebook buyers toward the price level of notebooks, as well as software and applications usage.
Fixed Operators
-Assess new strategies of mobile competitors, who target home Internet users and focus on young professionals and SOHOs – key target groups for ADSL, cable and Ethernet networks. Benchmark the performance of subscription PC services introduced in a number of emerging and developed markets.
Equipment Vendors
-Develop an understanding of the impact the introduction of a mobile broadband – notebook bundle will have on the traffic and usage of mobile operator services.
Handset and PC Distribution Chains and Retailers
-Assess the opportunity to create a new market through the introduction of notebook – mobile broadband bundles.
-Analyze the potential for selling a growing number of notebooks, as well as the impact of a more aggressive role in selling mobile broadband services.
Banks and Financial Institutions
-Understand the main drivers behind the launches of installments-based consumer services by mobile operators. Re-assess financial institution’s role in providing consumer credit in conjunction with mobile service. Develop new partnership models with service providers.
Companies mentioned in this report:
A1
Acer
Apple
Dell
Digi
DTAC
Elitegroup Computer Systems (ECS)
Ericsson
France Telecom
Fujitsu Siemens Computers
Google
GSM Association
Hewlett-Packard
Hutchison Essar
Iliad Free
Lenovo
LG Electronics
Maxis
Microsoft
Mobiltel Bulgaria
mobilkom austria
MTN
MTS
Novatel Wireless
Option Wireless Technology
Orange
Orange Poland
Phone House, The
PLDT
Plus GSM
PTC Era
Skype
Slovak Telecom
Telecom Italia Mobile
Telefónica O2 Czech Republic
TeliaSonera
Telmex
Telstra
T-Mobile
T-Mobile Hungary
T-Mobile Austria
T-Mobile Czech Republic
Truphone
Turkcell
Twinhead International
Vodacom
Vodafone
UPC Nederland
Romtelecom
Slovak Telecom
Technomarket
Top of Page
Table of Contents
Table of contents 1
Table of exhibits .2
Acronyms and abbreviations ..3
Companies mentioned in this report .4
Executive summary .1
Introduction ..2
Section 1: Key drivers behind bundling mobile broadband with notebooks for the mass market ..4
1.1 Driver One: The tough status quo of mobile market maturity, and MNOs’ responses to external market conditions4
1.2 Driver Two: Mobile IP networks are built, but more devices to deliver content are needed..10
1.3 Driver Three: Notebooks are in high demand in developed and emerging markets alike ..12
Section 2: The what and why of mobile broadband notebook bundles .15
2.1 Defining the mobile broadband-notebook bundle 15
2.2 Mass-market mobile broadband notebook bundles: developing the value proposition ..17
2.3 Devices: Making a mobile broadband notebook affordable for a mass-market customer ..19
2.4 Selling notebooks through subscription: why a mobile operator would want to meddle with consumer credit 22
Section 3: The business case for mobile broadband notebook bundling 24
3.1 Market share gains and churn reduction ..24
3.2 Driving usage of 3G networks 25
3.3 How much does a bundled subscriber cost? ..26
3.4 New revenue opportunity: value-added services .31
3.5 Strategic considerations: the value of innovation 32
3.6 Further analysis required32
Section 4: Case studies: Mobile broadband notebook PC bundling 33
4.1 TeliaSonera: Pioneering mobile broadband notebook bundles in Nordic and Baltic markets..34
4.2 France: broadband notebook bundles for students ..39
4.3 Orange Poland: Growing mobile Internet customer base with notebook bundles ..44
Additional resources .47
Table of exhibits
Exhibit 1: Mobile subscriber and revenue growth — top 30 markets globally .5
Exhibit 2: Employment status of survey respondents without a mobile phone ..6
Exhibit 3: Employment status of survey respondents without Internet access at home .7
Exhibit 4: Mobile market shares change little, call for more differentiation .7
Exhibit 5: Mobile market voice and data ARPU .9
Exhibit 6: Broadband and mobile subscriber net additions, 2008-2012 .9
Exhibit 7: Tests in Austria show average mobile broadband speeds faster than fixed broadband 11
Exhibit 8: Mobile broadband network roadmap ..12
Exhibit 9: Notebook versus desktop PC preferences among survey respondents intending to purchase a
computer within 12 months .13
Exhibit 10: Internet usage at home among MBPC Survey respondents ..14
Exhibit 11: Bundle of mobile broadband and notebook for a home user ..15
Exhibit 12: Mass-market mobile broadband notebook: the concept ..16
Exhibit 13: Mobile broadband-embedded notebook bundle: recent operator launches 17
Exhibit 14: Regional comparison of notebook demand projections (2008) 18
Exhibit 15: Demand for embedded broadband is strong .19
Exhibit 16: Mobile broadband notebooks: commercial models ..20
Exhibit 17: Global demand for consumer desktop and notebook computers 20
Exhibit 18: Regional differences in survey participants’ preference for MBPC..21
Exhibit 19: Mobile broadband notebook competition winners 22
Exhibit 20: Financing the purchase: different models for telcos ..23
Exhibit 21: Interest in switching to an MNO that offers a bundle of mobile broadband, notebook and voice service .25
Exhibit 22: The share of 3G in total data traffic; Mobiltel Bulgaria ..26
Exhibit 23: EBITDA margin comparison of CEE markets with and without handset subsidies ..27
Exhibit 24: Prepaid and contract SAC (2007) ..27
Exhibit 25: Location preferences for notebook purchase ..30
Exhibit 26: Demand for content on computers, by region .31
Exhibit 27: TeliaSonera overview .34
Exhibit 28: TeliaSonera’s consumer mobile broadband notebook bundle prices 36
Exhibit 29: TeliaSonera partnerships 38
Exhibit 30: Overview of mobile broadband notebooks in France ..39
Exhibit 31: Neuf Easy Gate and MyEasy PC devices 41
Exhibit 32: France: Consumer broadband PC bundle prices ..42
Exhibit 33: Orange and Neuf’s broadband ARPU is increasing 43
Exhibit 34: Orange Poland overview 44
Exhibit 35: Orange Poland: mobile broadband notebook bundle prices 45
For full details, please email keithw@cmsinfo.com
Top of Page
Buy now!
Top of Page
|
