WCIS Insight: Mobile Operator Strategies

Abstract

Through six case studies, this analysis of mobile operator strategies describes how the collision of broadband Internet services and mobility, and the extension of basic mobile connectivity to some of the world' s lowest-income groups are becoming paramount to strategic thinking.

• Global mobile subscription growth remains key to many mobile operator strategies. Informa Telecoms & Media expects above-average global growth in Africa, the Middle East and Asia Pacific until the end of our forecast period. We expect global subscription growth of 11.7% in 2009, but in Asia Pacific, Africa and the Middle East, we forecast growth of in excess of 15%. In contrast, we estimate growth of just below 5% in Western Europe and 5.6% in North America in 2009.
• Vodafone has highlighted Africa as important to its emerging markets strategy and hopes to increase its existing 50% stake in pan-regional operator Vodacom. Vodafone will also continue to invest in its developed markets with a particular focus on broadband growth.
• Telenor plans to sustain its high performance non-voice revenue stream from Europe by continuing to invest in advanced technologies, which it hopes will deliver strong ARPU and a loyal customer base. Mobile broadband services are at the heart of this strategy. Continued subscription growth in Asia also remains high on the operator' s agenda.
• MTS plans to transform its domestic strategy shifting its focus away from the quantity of subscriptions and acquiring new customers, and towards the quality of these subscriptions and retaining existing customers. China Mobile will also focus its energies on its domestic market and, in particular, on the deployment of its TD-SCDMA network.
• Telefonica expects robust growth in its wireless, broadband and pay TV businesses. The operator has pinpointed its Latin American markets as ready to benefit from the growing number of households in the region with access to digital TV.
• The development of 3G and 4G networks are vital to AT&T' s strategy as the operator looks to increase the speeds of its existing 3G network, increase data capacity and deploy LTE in 2012. With this network development allied to a unique range of exclusive products and services, the operator believes it can significantly reduce churn and improve data ARPU levels.

• To what extent is the inevitable slowdown in subscription growth in emerging markets causing some leading mobile operators to realign their strategic thinking?
• Have the opportunities created by mobile broadband services reinvented the business case for 3G technologies?
• How is the bundling of broadband, voice and TV services driving the strategies of an increasing number of integrated fixed and mobile operators?
• Is it possible to manage subscription growth profitably in rural areas of emerging markets, where investment on network expansion is driving up capex levels, but low income rural populations are causing a decline in ARPU?
• Should a mobile operator adopt next-generation technologies in those markets where, due to a lack of immediate consumer demand, there is little prospect of making any return on investment? But if not, what effect will this have on that operator' s drive to build brand equity and customer loyalty, and consequently ARPU?
• To what extent are some of the world' s leading mobile operators looking to focus on technology evolution and network deployment in their domestic markets rather than geographical expansion?

• Operators
• Vendors
• Financial Institutions
• Consultancies
• Government
• Regulators

• AT&T
• China Mobile
• MTS
• Telefonica
• Telenor
• Vodafone