7. Survey -MVNO market share in Europe as of mid 2006 (Source: IDATE) Nordics: too deregulated Germany: lots of competition UK: open France: low penetration Italy, Spain, Portugal: to start 15% 30% 22% 15% 3% 1% 1% 0%
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10. Connecting MVNO to Mobile Operators BENEFITS FOR MOBILE OPERATORS INCREASE TRAFFIC WITH LIMITED INVESTMENT REDUCED FIX COSTS to connect new MVNOS Multi-country footprint: EXPAND MNO BUSINESS To New Countries REDUCED RISKS of dealing with non-telecom players BENEFITS FOR MVNOs SECURE SERVICE LAUNCH AND CREATE NEW REVENUE STREAMS Fast and EASY CONNECTION to MNO MULTI-COUNTRY footprint (M-Plug already connected to many operators) DIFFERENTIATED SERVICES per MVNO segment Limit upfront FINANCIAL RISKS SHORT TIME- TO- MARKET MVNO MOBILE OPERATORS MVNE (Alcatel-Lucent)
11. M-Plug Business Models: MVNx actors – Revenues & Profits Revenues Revenues & profits repartition will evolve with the MVNO’s model and market share Gross Margin MVNO GM: 25% / 30% Example: 15€ bill MVNO GM = 3.75€ Gross margin on airtime used Contribution for usage risk (ratios incoming/outgoing, on-net/off-net, peak/off-peak) Interconnect net cost Contribution to cover full network cost (invest, licence, etc.) Network variable / marginal cost Extra margin on airtime not used (call set-up, 1st minute, unused bundle) 30% 5% 20% 30% 10% 5% Reference Retail Price G.M. COSTS
14. Success factors- Techno challenge (Be simple) Operator1 Operator 2 Operator 3 MNO MVNO Standard Interconnection Personnalized Services Limited Investment Limited Investment Connect a MVNO in 2 months Connect a MNO in 2 months Telecom Expertise IT & Telecom Expertise A Turn Key Solution An IT & Telecom Platform available
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17. Success story 1-Virgin Mobile Target: Young Simple: Illimited SMS In UK: 5 M subs (MNO: 12 M subs) Brand
18. Success story 2- Kajeet Target: pre teen to early teen Simple: 5 cents per SMS 10 cents per comm 35 cents/ day for illimited access to portal No contract Phone: Fun Dedicated Community
19. Success story 3- MTV Networks Target: Teenage (10-29) Rather female Purpose: Constant screen ownership « Poptainment » In Germany: Associated with an MVNO Content
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21. Sum up- Strengths of the MVNO Content Community Customer base Brand Distribution
Editor's Notes
How Alcatel Lucent can help an MVNO to launch successfully its activity ? How trigger the “curve of success” (the so-called “S’ curve) ?