Abstract
For many mobile operators SIM-only connections account for as much as 50% of
all connections. The number is much higher for many MVNOs. In this report we
examine SIM-only initiatives for the prepay segment from over forty operators
in ten different markets (Australia, Belgium, France, Germany, Ireland, Italy,
Netherlands, Portugal, Switzerland and UK). We analyse differences in prepay
SIM-only policies across the different operators and markets and highlight the
key trends in terms of product offers, channel availability and target
segments.
In particular we highlight:
- The market context and competition factors which contribute to the
development of a strong "SIM-only" market.
- The average cost of SIM-only connection packs and the associated airtime
credits.
- The most/least expensive SIM-only propositions.
- How SIM-only propositions vary by channel.
- The segments targeted by those offering SIM-only connections. Other
segments that remain to be targeted.
- Important contextual data including the cost of competing entry level
handset connection packs, service validity periods and other product
differentiation features within and across markets.
- Why operator strategies giving preferential treatment/benefits to handset
connections over SIM-only customers may be misguided.
- How over-aggressive promotion of SIM-only offers can deliver increased
customer churn and/or spin.
- How operators have learned to phase in the delivery of airtime credit
bonuses offered with new SIM-only connections, making them conditional upon
greater customer spend commitments, in a bid to increase activity levels and
the customer lifetime value of the SIM-only segment.
- Why number porting should be encouraged when marketing SIM-only
connections.
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