Abstract
Description
Most postpaid subscribers in developed markets fully expect to receive a free
or discounted mobile handset when they renew their contract. Now mobile
operators appear to be ready to replace the phone with a notebook. The new
model looks familiar: fixed-line providers have long been selling desktop PCs
on installment plans to build up the addressable markets for their Internet
services. Bundles of computers with broadband subscriptions are available from
many telecom heavyweights globally, including Telmex, Telefonica O2 and
TeliaSonera. Now the mobile industry is gearing up to do the same for the HSPA
networks that are emerging after recent upgrades, with speeds reaching up to
14Mbps and plenty of spare capacity. The GSM Association reports that as of
the beginning of February 2008, 229 operators have committed to launching HSPA
networks, and 162 of them have now launched HSPA commercially in 73 markets.
Little analysis has been done to date on the impact of selling a
subscription-based notebook- data bundle to the consumer market. This report,
Bundling Notebooks and Mobile Broadband; the Business Case for MNOs, is
dedicated to filling that void and providing the analysis of the main drivers
and the business case for launching the new bundle for a mobile operator. With
an emphasis is on the impact of notebook-data bundling on the operators'
performance, the analysis leverages data from our unique Mobile Broadband PC
Survey - henceforth referred to as the MBPC Survey - conducted by Pyramid
Research in partnership with the GSM Association and Microsoft in the summer
of 2007. The survey, which involved the collaboration of mobile operators and
market research agencies in 12 countries in the Asia-Pacific region, Europe,
the Middle East and Africa, provided insight into consumer attitudes toward
buying a notebook as well as toward mobile data services and applications.
Key questions answered
- Why sell a bundle with a notebook if all an operator wants is to sell a
mobile data subscription?
- Is a notebook subsidy a must, and what options are available to operators
that have large prepaid customer bases and rely on retail distributors to sell
mobile handsets?
- What are the key drivers behind bundling mobile broadband with notebooks
for the mass market?
- What is the business case for mobile broadband notebook bundling?
- What is the reason for mobile broadband notebook bundles and why is it
beneficial to do so?
Target audience
Mobile Operators
Understand the main drivers behind adding a 3G-enabled notebook to the
portfolio of mobile devices. Evaluate the impact of launching the mobile
broadband - notebook bundle on the key performance indicators, such as churn,
subscriber additions, ARPU and usage. Learn from the experience of mobile
pioneers who already offer bundles of data and embedded notebooks, as well as
experience of fixed communications providers who sell subscription PC
services. Develop an effective business model of providing a subscription
bundle, adjusted for local market conditions, such as high share of prepaid
customers.
PC manufacturers, Chipset and Semiconductor companies
Quantify end-user demand for the embedded notebooks in the emerging and
developed market. Assess growing interest in selling mass-market notebooks
among mobile operators. Understand main requirements of home notebook buyers
toward the price level of notebooks, as well as software and applications
usage.
Fixed Operators
Assess new strategies of mobile competitors, who target home Internet users
and focus on young professionals and SOHOs - key target groups for ADSL,
cable and Ethernet networks. Benchmark the performance of subscription PC
services introduced in a number of emerging and developed markets.
Equipment Vendors
Develop an understanding of the impact the introduction of a mobile broadband
- notebook bundle will have on the traffic and usage of mobile operator
services.
Handset and PC Distribution Chains and Retailers
Assess the opportunity to create a new market
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