Ranking the World's Best Mobile Operators: New ways to measure and understand MNO performance, beyond revenues, subscribers and ARPU

Table of Contents

Introduction

Performance Measurement 1 - MNO ARPU PPP

• Formula and Rationale
• Rankings
• MNO Strategies
  • Nextel Brazil
  • 3 The UK
  • Rogers Canada

Performance Measurement 2 - ARPU as a Percentage of Disposable Income

• Formula and Rationale
• Rankings
• MNO Strategies
  • MTN Nigeria
  • Zain Sudan
  • Maroc Telecom Morocco
  • Safaricom Kenya

Performance Measurement 3 - Revenue Growth of the MNO

• Formula and Rationale
• Rankings
• MNO Strategies
  • life:) Ukraine
  • BITE Lithuania
  • Oi Brazil

Performance Measurement 4 - MNO Profitability

• EBITDA Margin
• MNO Strategies
  • Globe Telecom The Philippines
  • Djezzy Algeria
  • KPN The Netherlands
• Additional Reference Material
  • Average Profit Per User (APPU)
  • Formula and Rationale

Performance Measurement 5 - MNO Growth vs. Market GrowthError! Bookmark not defined

• Formula and Rationale
• Rankings
• MNO Strategies
  • Wind Italy
  • TDC Denmark
  • Vodafone Ireland

Performance Measurement 6 - Significance of the MNO

• Formula and Rationale
• Rankings
• MNO Strategies
  • du The UAE
  • Movistar Venezuela
  • Mobily Saudi Arabia

Performance Measurement 7 - Successful Growth of Revenue from Data Services

• Formula and Rationale
• Rankings
• MNO Strategies
  • Smart Communications The Philippines
  • Telkomsel Indonesia
  • NTT DOCOMO Japan

Performance Measurement 8 - Measuring Subscriber Loyalty

• Formula and Rationale
• Rankings
• MNO Strategies
  • KDDI Japan
  • SingTel Singapore
  • Chunghwa Telecom Taiwan

Performance Measurement 9 - Postpaid Penetration Measure

• Formula and Rationale
• Rankings
• MNO Strategies
  • Telefonica Moviles Peru
  • Comcel Colombia
  • Vodafone Egypt

Performance Measurement 10 - Technology Measure

• Formula and Rationale
• Rankings
• MNO Strategies
  • Vodacom DR Congo
  • MTN Sudan
  • Etisalat Misr Egypt

Other Leading MNOs Profiles

• China Mobile
• AT&T The US

Summary and Conclusions

• Traditional KPIs
• Ranking 1: Traditional Approach
• Ranking 2: Normalised Approach
• Ranking 3: Blended Approach
• Overall Ranking:

• Objective Analysis of Regional Performance in Three Core Areas of Success
  • Overall Ranking 1 - Best MNO' s by Region for Size and Growth
  • Overall Ranking 2 - Best MNO' s by Region for Extracting Revenues from Subscribers
  • Overall Ranking 3 - Best MNO' s by Region for Advancing Non-voice Mobile Services

Methodology

Appendices

• Glossary
• Portio Research Classifications
• Companies Mentioned in this Report
• About the Authors
• Also available from Portio Research Limited

List of Figures

• Figure 1: Performance Measurement Indices Used to Measure the Performance of MNOs Worldwide
• Figure 2: Monthly ARPU vs. Monthly ARPU PPP - Worldwide Markets (In USD, 2008)
• Figure 3: Top 20 MNOs Worldwide - MNO Monthly ARPU PPP (2008)
• Figure 4: Top 3 MNOs Worldwide - MNO Monthly ARPU PPP (2008)
• Figure 5: MNOs' Monthly ARPU and Monthly ARPU PPP - Brazil (In USD, 2008)
• Figure 6: MNOs' Postpaid Subscribers as a Percentage of Total Subscriber Base - Brazil (In Percent, End-2008)
• Figure 7: MNOs' Blended Monthly Churn - Brazil (In Percent, 2008)
• Figure 8: MNOs' Monthly ARPU and Monthly ARPU PPP - The UK (In USD, 2008)
• Figure 9: MNOs' 3G Subscriber Base - The UK (In Million, End-2008)
• Figure 10: MNOs' Postpaid Subscribers as a Percentage of Total Subscriber Base - The UK (In Percent, End-2008)
• Figure 11: MNOs' Monthly Data ARPU - The UK (In USD, 2008)
• Figure 12: MNOs' Monthly ARPU and Monthly ARPU PPP - Canada (In USD, 2008)
• Figure 13: MNOs' Postpaid Subscribers as a Percentage of Total Subscriber Base - Canada (In Percent, End-2008)
• Figure 14: MNOs' Gross Postpaid Subscriber Additions - Canada (In Million, 2008)
• Figure 15: Data Revenue as a Percentage of ARPU - Rogers Canada (In Percent, 2008)
• Figure 16: Scatter Plot of Monthly ARPU vs. Monthly Disposable Income - Worldwide Markets (2008)
• Figure 17: Top 20 MNOs Worldwide - ARPU as a Percentage of Disposable Income (2008)
• Figure 18: Top 3 MNOs Worldwide - ARPU as a Percentage of Disposable Income (2008)
• Figure 19: Subscriber Base and Penetration - Nigeria (2006-2008)
• Figure 20: Factors Hampering Quality of Service in Nigeria
• Figure 21: Demographic Break-out - Sudan (End-2008)
• Figure 22: Subscriber Base and Monthly ARPU - Morocco (2006-2008)
• Figure 23: Utilisation of 3.5G Networks by Maroc Telecom (June 2007- February 2008)
• Figure 24: MNOs' Subscriber Base - Kenya (In Million, End-2008)
• Figure 25: Safaricom' s Strategies
• Figure 26: Safaricom' s Targeted Marketing Strategy
• Figure 27: Top 10 MNOs Worldwide - Total Revenue & Revenue Growth (2008)
• Figure 28: Top 20 MNOs Worldwide - Revenue Growth of the MNO (2008)
• Figure 29: Top 3 MNOs Worldwide - Revenue Growth of the MNO (2008)
• Figure 30: MNOs' Market Share - Ukraine (In Percent, 2006-2008)
• Figure 31: MNOs' Total Revenue - Ukraine (In USD Billion, 2006-2008)
• Figure 32: life:)' s Success Strategies
• Figure 33: life:)' s Innovative Products
• Figure 34: life:)' s Range of Services
• Figure 35: MNOs' Total Revenues - Lithuania (In USD Billion, 2007-2008)
• Figure 36: BITE' s Success Strategies
• Figure 37: BITE' s Key Milestones (2003-2008)
• Figure 38: MNOs' Subscriber Base - Brazil (In Million, End-2008)
• Figure 39: Key MNOs' s Total Revenues - Brazil (In USD Billion, 2006-2008)
• Figure 40: MNOs' Revenue Growth - Brazil (In Percent, 2007-2008)
• Figure 41: Oi' s Revenue Growth Strategies
• Figure 42: Oi' s Subscriber Acquisition Strategies
• Figure 43: Oi' s Services
• Figure 44: Factors Affecting EBITDA Margin
• Figure 45: MNOs' EBITDA Margin and Market Share (In Percent, 2008)
• Figure 46: EBITDA Margin (2008) and Years of 2G (and above) Network Operation
• Figure 47: Top 10 MNOs - Monthly APPU and Monthly ARPU (In USD, 2008)
• Figure 48: Top 20 MNOs Worldwide - MNO Profitability (2008)
• Figure 49: Top 3 MNOs Worldwide - MNO Profitability (2008)
• Figure 50: EBITDA Margin and Total Revenue - Globe Telecom (2006-2008)
• Figure 51: Globe Telecom' s Success Strategies
• Figure 52: Globe Telecom' s Service Innovations
• Figure 53: MNOs' Subscriber Base - Algeria (In Million, End-2008)
• Figure 54: EBITDA Margin and Total Revenue - Djezzy Algeria (2006-2008)
• Figure 55: MNOs' Monthly ARPU - Algeria (In USD, 2008)
• Figure 56: MNOs' Postpaid Subscribers as a Percentage of Total Subscriber Base of the MNO - Algeria (In Percent, 2007 & 2008)
• Figure 57: EBITDA Margin and Total Revenue - KPN The Netherlands (2006-2008)
• Figure 58: KPN' s Success Strategies
• Figure 59: Market Share of MNOs - The Netherlands (2008)
• Figure 60: KPN' s Segment Strategies
• Figure 61: Top 10 Countries Worldwide - Y-o-Y Subscriber Growth (2007 to 2008) and Penetration (2008)
• Figure 62: Top 20 MNOs Worldwide - MNO Growth vs. Market Growth (2008)
• Figure 63: Top 3 MNOs Worldwide - MNO Growth vs. Market Growth (2008)
• Figure 64: MNOs' Market Share - Italy (In Percent, December 2006-December 2008)
• Figure 65: Wind' s Strategies
• Figure 66: TDC' s Success Strategies
• Figure 67: Revenue by Business Segmen - TDC (In Percent, 2008)
• Figure 68: Vodafone Ireland' s Success Strategies
• Figure 69: MNOs' Market Share - Ireland (2007 & 2008)
• Figure 70: Top 10 MNOs Worldwide- Market Share (In Percent, December 2008)
• Figure 71: Top 20 MNOs Worldwide - Significance of the MNO (2008)
• Figure 72: Top 3 MNOs Worldwide - Significance of the MNO (2008)
• Figure 73: Demographic Break-out - The UAE (April 2009) Worldwide
• Figure 74: du' s Key Success Factors Summarized Worldwide
• Figure 75: du' s First-time Products in The UAE Market
• Figure 76: du' s Strategic Marketing Initiatives
• Figure 77: MNOs' Subscriber Base - Venezuela (In Million, End-2008)
• Figure 78: Movistar' s Success Strategies
• Figure 79: MNOs' Market Share - Venezuela (2007 & 2008)
• Figure 80: MNOs' Market Share - Saudi Arabia (2007 & 2008)
• Figure 81: Mobily' s Success Factors
• Figure 82: Mobily' s First Time Services
• Figure 83: Subscriber Base - Mobily (In Million, 2006-2008)
• Figure 84: Voice Revenue as a Percentage of Service Revenue - Worldwide (In Percent, 2004-2013F)
• Figure 85: Top 20 MNOs Worldwide - Data Revenue Measure (2008)
• Figure 86: Top 3 MNOs Worldwide - Data Revenue Measure (2008)
• Figure 87: MNOs' Subscriber Base - The Philippines (In Million, End-2008)
• Figure 88: Data Revenue Measure - Smart Communications (2006-2008)
• Figure 89: SMS Volume - Smart Communications (In Billion, 2006-2008)
• Figure 90: SMS Revenue - Smart Communications (In USD Billion, 2006-2008)
• Figure 91: SMS Revenue as a Percentage of Data Revenue - Smart Communications (In Percent, 2006-2008)
• Figure 92: Voice Tariff-per-Minute to per-message SMS Cost Ratio of Asian MNOs (April 2009)
• Figure 93: MNOs' Subscriber Base - Indonesia (In Million, End-2008)
• Figure 94: Data Revenue Measure - Telkomsel Indonesia (2006-2008)
• Figure 95: SMS Revenue - Telkomsel (In USD Billion, 2007 & 2008)
• Figure 96: SMS Revenue as a Percentage of Data Revenue - Telkomsel (In Percent, 2007 & 2008)
• Figure 97: Telkomsel' s Initiatives in Mobile Content Market
• Figure 98: MNOs' Subscriber Base - Japan (In Million, End-2008)
• Figure 99: Data Revenue Measure - NTT DOCOMO Japan (2006-2008)
• Figure 100: FOMA and i-mode Subscribers - NTT DOCOMO (In Million, End-2008)
• Figure 101: NTT DOCOMO' s Strategies
• Figure 102: NTT DOCOMO' s Handset Series Launched in 2008
• Figure 103: Top 10 MNOs Worldwide - Monthly Churn Rate and EBITDA Margin (In Percent, 2008)
• Figure 104: Top 20 MNOs Worldwide - Measuring Subscriber Loyalty (2008)
• Figure 105: Top 3 MNOs Worldwide - Measuring Subscriber Loyalty (2008)
• Figure 106: MNOs' Subscriber Base - Japan (In Million, End-2008)
• Figure 107: Monthly Churn and Postpaid Subscribers as a Percentage of Total Subscriber Base - Japan (In Percent, 2008)
• Figure 108: Monthly Churn and Postpaid Subscribers as a Percentage of Total Subscriber Base - KDDI (In Percent, Q1 2008 - Q4 2008)
• Figure 109: KDDI' s Total Customer Satisfaction Policy
• Figure 110: KDDI' s Retention Measures
• Figure 111: MNOs' Subscriber Base - Singapore (In Million, End-2008)
• Figure 112: Monthly Churn and Postpaid Subscribers as a Percentage of Total Subscriber Base - Singapore (In Percent, 2008)
• Figure 113: SingTel' s Subscriber Satisfaction and Retention Strategies
• Figure 114: SingTel' s Postpaid Plans
• Figure 115: SingTel' s Customised Services
• Figure 116: MNOs' Subscriber Base - Taiwan (In Million, End-2008)
• Figure 117: Chunghwa Telecom' s Subscriber Satisfaction Strategies
• Figure 118: Monthly Churn and Postpaid Subscribers as a Percentage of Total Subscriber Base - Taiwan (In Percent, 2008)
• Figure 119: Chunghwa Telecom' s Initiatives
• Figure 120: Benefits of Postpaid Subscriptions for MNOs
• Figure 121: Top 10 Mobile Markets Worldwide - Postpaid Subscribers and Mobile Penetration (In Percent, 2008)
• Figure 122: Top 20 MNOs Worldwide - Postpaid Penetration Measure (2008)
• Figure 123: Top 3 MNOs Worldwide - Postpaid Penetration Measure (2008)
• Figure 124: MNOs' Subscriber Base - Peru (In Million, End-2008)
• Figure 125: Telefonica' s Strategies
• Figure 126: Postpaid Subscriber Base - Peru (In Million, End-2008)
• Figure 127: MNOs' Subscriber Base - Colombia (In Million, End-2008)
• Figure 128: Comcel' s Strategies
• Figure 129: Postpaid Subscriber Base - Colombia (In Million, 2006-2008)
• Figure 130: Vodafone Egypt' s Success Strategies
• Figure 131: Postpaid Subscriber Base - Egypt (In Million, End-2008)
• Figure 132: Vodafone Egypt' s Product Portfolio
• Figure 133: Advantages of Technology Evolution
• Figure 134: Evaluation of an MNO based on Network Technology and Mobile Penetration
• Figure 135: Top 20 MNOs Worldwide - Technology Measure (2008)
• Figure 136: Top 3 MNOs Worldwide - Technology Measure (2008)
• Figure 137: Vodacom' s Success
• Figure 138: MNOs' Market Share - DR Congo (End-2008)
• Figure 139: Capital Expenditure - Vodacom (In USD Million, 2003-2008)
• Figure 140: Vodacom' s Network Expansion in DR Congo
• Figure 141: MTN Sudan' s Success Strategies
• Figure 142: Subscriber Base - MTN Sudan (In Million, 2006-2008)
• Figure 143: Capital Expenditure - MTN Sudan (In USD Million, 2006-2008)
• Figure 144: MTN Sudan Pay as You Talk - Option Plans
• Figure 145: MNOs' Subscriber Base - Egypt (In Million, End-2008)
• Figure 146: Network Deployment - Egypt
• Figure 147: Market Share - Egypt (In Percent, December 2006 - December 2008)
• Figure 148: Etisalat' s Strategies
• Figure 149: MNO Choice - Egypt (In percent, December 2007)*
• Figure 150: Monthly Churn - MobiNil (In Percent, Q1 2007 - Q3 2008)
• Figure 151: Top 5 MNOs Worldwide - Subscriber Base (In Million, End-2008)
• Figure 152: China Mobile' s Success Strategies
• Figure 153: China Mobile' s Industry-specific Applications
• Figure 154: Capital Expenditure - China Mobile (In USD Billion, 2008-2011F)
• Figure 155: Top 10 MNOs Worldwide - Monthly APPU (In USD, 2008)
• Figure 156: AT&T' s Success Strategies
• Figure 157: Top 20 MNOs Worldwide - Overall Ranking Using Traditional Approach (2008)
• Figure 158: Top 20 MNOs Worldwide - Overall Ranking Using Normalised Approach (2008)
• Figure 159: Top 20 MNOs Worldwide - Overall Ranking Using Blended Approach (2008)
• Figure 160: Regional Count of Top 10 Operators for Different Approaches
• Figure 161: Focus Areas of the Three Overall Rankings
• Figure 162: Methodology for Calculating MNO Score for a Performance Measurement Index
• Figure 163: Methodology for Calculating Normalised Overall MNO Score
• Figure 164: Assignment of weights to different Performance Measurement Indices
• Figure 165: Methodology for Calculating Traditional Overall MNO Score
• Figure 166: Methodology for Calculating Blended Overall MNO Score
• Figure 167: Focus Areas of Overall Rankings and Constituting Performance Measurement Indices
• Figure 168: Methodology for Calculating Overall MNO Rankings - 1, 2 & 3

List of Tables

• Table 1: Top 50 MNOs Worldwide - Subscriber Base (In Million, End-2008)
• Table 2: Top 50 MNOs Worldwide - Monthly ARPU (In USD, 2008)
• Table 3: Top 50 MNOs Worldwide - Total Revenue (In USD, 2008)
• Table 4: MNOs Worldwide Ranked 1 to 20 - MNO Monthly ARPU PPP (2008)
• Table 5: MNOs Worldwide Ranked 21 to 50 - MNO Monthly ARPU PPP (2008)
• Table 6: MNOs Worldwide Ranked 51 to 170 - MNO Monthly ARPU PPP (2008)
• Table 7: MNOs Worldwide Ranked 171 to 204 - MNO Monthly ARPU PPP (2008)
• Table 8: MNOs Worldwide Ranked 1 to 20 - ARPU as a Percentage of Disposable Income (2008)
• Table 9: MNOs Worldwide Ranked 21 to 50 - ARPU as a Percentage of Disposable Income (2008)
• Table 10: MNOs Worldwide Ranked 51 to 170 - ARPU as a Percentage of Disposable Income (2008)
• Table 11: MNOs Worldwide Ranked 171 to 204 - ARPU as a Percentage of Disposable Income (2008)
• Table 12: MNOs Worldwide Ranked 1 to 20 - Revenue Growth of the MNO (2008)
• Table 13: MNOs Worldwide Ranked 21 to 50 - Revenue Growth of the MNO (2008)
• Table 14: MNOs Worldwide Ranked 51 to 170 - Revenue Growth of the MNO (2008)
• Table 15: MNOs Worldwide Ranked 171 to 204 - Revenue Growth of the MNO (2008)
• Table 16: MNOs Worldwide Ranked 1 to 20 - MNO Profitability (2008)
• Table 17: MNOs Worldwide Ranked 21 to 50 - MNO Profitability (2008)
• Table 18: MNOs Worldwide Ranked 51 to 170 - MNO Profitability (2008)
• Table 19: MNOs Worldwide Ranked 171 to 204 - MNO Profitability (2008)
• Table 20: MNOs Worldwide Ranked 1 to 20 - MNO Growth vs. Market Growth (2008)
• Table 21: MNOs Worldwide Ranked 21 to 50 - MNO Growth vs. Market Growth (2008)
• Table 22: MNOs Worldwide Ranked 51 to 170 - MNO Growth vs. Market Growth (2008)
• Table 23: MNOs Worldwide Ranked 171 to 204 - MNO Growth vs. Market Growth (2008)
• Table 24: MNOs Worldwide Ranked 1 to 20 - Significance of the MNO (2008)
• Table 25: MNOs Worldwide Ranked 21 to 50 - Significance of the MNO (2008)
• Table 26: MNOs Worldwide Ranked 51 to 170 - Significance of the MNO (2008)
• Table 27: MNOs Worldwide Ranked 171 to 204 - Significance of the MNO (2008)
• Table 28: MNOs Worldwide Ranked 1 to 20 - Data Revenue Measure (2008)
• Table 29: MNOs Worldwide Ranked 21 to 50 - Data Revenue Measure (2008)
• Table 30: MNOs Worldwide Ranked 51 to 170 - Data Revenue Measure (2008)
• Table 31: MNOs Worldwide Ranked 171 to 204 - Data Revenue Measure (2008)
• Table 32: MNOs Worldwide Ranked 1 to 20 - Measuring Subscriber Loyalty (2008)
• Table 33: MNOs Worldwide Ranked 21 to 50 - Measuring Subscriber Loyalty (2008)
• Table 34: MNOs Worldwide Ranked 51 to 170 - Measuring Subscriber Loyalty (2008)
• Table 35: MNOs Worldwide Ranked 171 to 204 - Measuring Subscriber Loyalty (2008)
• Table 36: MNOs Worldwide Ranked 1 to 20 - Postpaid Penetration Measure (2008)
• Table 37: MNOs Worldwide Ranked 21 to 50 - Postpaid Penetration Measure (2008)
• Table 38: MNOs Worldwide Ranked 51 to 170 - Postpaid Penetration Measure (2008)
• Table 39: MNOs Worldwide Ranked 171 to 204 - Postpaid Penetration Measure (2008)
• Table 40: MNOs Worldwide Ranked 1 to 20 - Technology Measure (2008)
• Table 41: MNOs Worldwide Ranked 21 to 50 - Technology Measure (2008)
• Table 42: MNOs Worldwide Ranked 51 to 170 - Technology Measure (2008)
• Table 43: MNOs Worldwide Ranked 171 to 204 - Technology Measure (2008)
• Table 44: Top 10 Operators by Subscribers - Regional (End-2008)
• Table 45: Top 10 Operators by Total Revenues - Regional (2008)
• Table 46: Top 10 Operators by Monthly ARPU - Regional (2008)
• Table 47: Top 20 Operators by different KPIs - Worldwide (2008)
• Table 48: MNOs Worldwide Ranked 1 to 20 - Overall Ranking Using Traditional Approach (2008)
• Table 49: MNOs Worldwide Ranked 21 to 50 - Overall Ranking Using Traditional Approach (2008)
• Table 50: MNOs Worldwide Ranked 51 to 170 - Overall Ranking Using Traditional Approach (2008)
• Table 51: MNOs Worldwide Ranked 171 to 204 - Overall Ranking Using Traditional Approach (2008)
• Table 52: MNOs Worldwide Ranked 1 to 20 - Overall Ranking Using Normalised Approach (2008)
• Table 53: MNOs Worldwide Ranked 21 to 50 - Overall Ranking Using Normalised Approach (2008)
• Table 54: MNOs Worldwide Ranked 51 to 170 - Overall Ranking Using Normalised Approach (2008)
• Table 55: MNOs Worldwide Ranked 171 to 204 - Overall Ranking Using Normalised Approach (2008)
• Table 56: Top 3 Operators Worldwide for Performance Measurements - Normalised Approach (2008)
• Table 57: Key Strategies Identified for Performance Measurements - Normalised Approach
• Table 58: Regional Mix of MNOs in Top 20 List for Each Performance Measurement - Normalised Approach (2008)
• Table 59: MNOs Worldwide Ranked 1 to 20 - Overall Ranking Using Blended Approach (2008)
• Table 60: MNOs Worldwide Ranked 21 to 50 - Overall Ranking Using Blended Approach (2008)
• Table 61: MNOs Worldwide Ranked 51 to 170 - Overall Ranking Using Blended Approach (2008)
• Table 62: MNOs Worldwide Ranked 171 to 204 - Overall Ranking Using Blended Approach (2008)
• Table 63: Top 10 Regional Operators by Overall Ranking 1 (OR1)
• Table 64: Top 10 Regional Operators by Overall Ranking 2 (OR2)
• Table 65: Top 10 Regional Operators by Overall Ranking 3 (OR3)
• Table 66: Top 20 Worldwide Operators by Different Overall Rankings