Abstract
In this report, Mobile Market Development examines the prepay upgrade programs
currently in place across MNOs in six key European markets (France, Germany,
Ireland, Italy, Spain and the UK). Many interesting initiatives and
differences were observed between markets and operators and all are detailed
in the current report. However, we found (and operators acknowledged) prepay
upgrade policies are often the result of tactical responses to competitor
actions. Few claimed that their upgrade policy was driven by significant
strategic intent or clearly linked business goals. In response to this, the
current paper provides a 6-stage upgrade process design model to provide MNOs
with a useful strategic framework for the development of future prepay handset
upgrade policy.
It incorporates the following elements
- Strategy & Objectives
- Differentiation
- Qualification
- Communication
- Delivery
- Outcomes & Measurement
The model is supported by examples of the issues and practices operators ought
to consider at each stage of the upgrade design process, drawing on a variety
of upgrade policies investigated during our research. The model is
supplemented by numerous insights provided by operators who have developed
their strategic thinking in relation to prepay upgrade policy, to a more
advanced level. Their experience is drawn on to offer detailed recommendations
on how to optimise the MNO's prepay upgrade strategy.