3G - 3.5G Economics - Early results and strategic options

1. General Context

• 1.1. Early feedback on 3G
• 1.2. Competition Expansion
• 1.3. Rate pressure
  • 1.3.1. Voice call termination
  • 1.3.2. SMS call termination
  • 1.3.3. International mobile roaming
• 1.4. Momentum in digital content distribution
• 1.5. Primary diagnostic elements

2. Optimisation Strategies

• 2.1. Organisational Strategy
  • 2.1.1. Strategic convergence activities
  • 2.1.2. Pursuing and restructuring alliances
  • 2.1.3. Geographic refocusing/selective acquisitions
• 2.2. Technology and network strategy: primary cost elements
  • 2.2.1. Technology rationalisation
  • 2.2.2. Network infrastructure rationalisation
• 2.3. Spectrum and spectrum efficiency

3. Service and content strategies

• 3.1. Internetisation, basic trend in mobile
• 3.2. New ecosystem with mobile Internetisation?
  • 3.2.1. Business models and rate models
• 3.3. Lessons and outlook
• 3.4. Service portfolio management, new emerging services
  • 3.4.1. Emerging uses and services
  • 3.4.2. Other emerging uses and services

4. Marketing strategies

• 4.1. Segmentation
• 4.2. Subscriber loyalty at the heart of the process
• 4.3. Subsidising handsets, purchase motivation

5. Conclusions from MNO strategies

6. What P&L for mobile network operators?

• 6.1. A Western European mobile network operator' s business model
• 6.2. Primary conclusions and results

7. Appendix: Update on the situation in the various countries mentioned

• 7.1. Germany
• 7.2. Metropolitan France
• 7.3. Italy
• 7.4. Spain
• 7.5. United Kingdom
• 7.6. Americas
• 7.7. Asia

Glossary

• Table 1: Western European and North American overview of mobile service usage
• Table 2: Selection of data ARPU shares in overall ARPU
• Table 3: Selection of data ARPU
• Table 4: Selection of 3G data ARPU shares in overall 3G ARPU
• Table 5: Selection of 3G data ARPU
• Table 6: Competitive intensity in Western Europe
• Table 7: Competitive Intensity in North America
• Table 8: Competitive intensity in Asia
• Table 9: Selection of HSDPA deployments worldwide
• Table 10: Comparison of performance and costs between CDMA 1X EV-DO and HSDPA according to KTF
• Table 11: Advantages and disadvantages of UMA and IMS architectures
• Table 12: Selection of convergence offers and their associated technologies
• Table 13: Details of consumer offers
• Table 14: Recent major outsourcing contracts
• Table 15: Candidate bandwidth for 4G
• Table 16: Estimated spectrum needs by 2020 for IMT-2000 and IMT-Advanced
• Table 17: Mobile TV models in Italy
• Table 18: Introduction of a secondary frequency market in Western Europe
• Table 19: Main portals for worldwide mobile operators and revenue share
• Table 20: Overview of i-Mode services around the world
• Table 21: Global agreements between MNO/Internet players
• Table 22: Proprietary solutions from a selection of worldwide mobile operators
• Table 23: Selection of search engines for mobile operators
• Table 24: Web browser loaded on a selection of handsets
• Table 25: Portal-MNO partnerships involved in blogs or social networking
• Table 26: Partnership between MNO and portals in mobile instant messaging
• Table 27: Selection of email software for mobile operators
• Table 28: Selection of partnerships between mobile operators and navigation software
• Table 29: Selection of position determination services offered by MNO
• Table 30: Types of position location services
• Table 31: Selection of homeZone services
• Table 32: Selection of "one handset" services
• Table 33: Selection of VoIP software for mobile operators
• Table 34: Overview of customer retention methods
• Table 35: Comparison of national baseline situations
• Table 36: Primary general indicators in Germany
• Table 37: Primary market indicators in Germany

• Figure 1: UMTS Share in Western Europe
• Figure 2: UMTS Share in major Western European countries
• Figure 3: Western Europe' s position in 3G
• Figure 4: Speed of 3G expansion in Europe and Japan
• Figure 5: 3G market share in late 2004 and end of 2006 in Italy, Japan, and South Korea
• Figure 6: Speed of 3G expansion: Europe, United Kingdom, Italy, Japan
• Figure 7: Attractiveness of 3G services for French mobile subscribers between 15 and 45 years old
• Figure 8: Multimedia mobile phone usage in France and the United Kingdom
• Figure 9: Primary results of the OPA study on mobile Internet use
• Figure 10: Mobile phone usage in Japan compared to the United States
• Figure 11: Outline of advanced mobile services offered by SK Telecom
• Figure 12: 3G Data ARPU
• Figure 13: "Tier 1" EBITDA Margins
• Figure 14: "Tier 2" EBITDA Margins
• Figure 15: Various levels of outsourced services
• Figure 16: Relationship between service provider and MNO: example of the contract between H3G IT/Ericsson
• Figure 17: Gradual deployment of mobile technologies according to the UMTS forum
• Figure 18: Candidate bands for IMT-Advance systems
• Figure 19: Convergent services and cross checking bands (<6 GHz)
• Figure 20: Sharing spectrum for 3.6 and 5 GHz bands
• Figure 21: Vodafone Live! handsets in the four largest Western European markets
• Figure 22: Vodafone share of turnover for mobile multimedia services excluding messaging
• Figure 23: New environment, new usages, new generation of users
• Figure 24: Acceptance of advertising on mobile phones
• Figure 25: Examples of QR codes
• Figure 26: Potential MNO strategies in a changing "Internet" environment
• Figure 27: National mobile characteristics: number of mobile subscribers and mobile penetration rate
• Figure 28: Mobile operator characteristics: number of subscribers per network
• Figure 29: Monthly 3G multimedia ARPU
• Figure 30: 3G multimedia turnover for a mobile operator net of payments to content providers
• Figure 31: Distribution of operational expenses paid by a mobile network operator
• Figure 32: Overall gross margin for 3 and 4G services for a mobile operator and monthly gross margin per subscriber
• Figure 33: Mobile network operator market share in Germany
• Figure 34: Overview of mobile usage in Germany
• Figure 35: Mobile network operator market share in Metropolitan France
• Figure 36: Overview of mobile usage in France
• Figure 37: Mobile network operator market share in Italy
• Figure 38:Overview of mobile usage in Italy
• Figure 39: Mobile network operator market share in Spain
• Figure 40: Overview of mobile usage in Spain
• Figure 41: Mobile network operator market share in the United Kingdom
• Figure 42: Overview of mobile usage in the United Kingdom
• Figure 43: Mobile network operator market share in the United States
• Figure 44: Overview of mobile usage in the United States
• Figure 45: Mobile network operator market share in Brazil
• Figure 46: Mobile network operator market share in China
• Figure 47: Mobile network operator market share in South Korea
• Figure 48: Mobile network operator market share in India
• Figure 49: Mobile network operator market share in Japan