Cable & Telecom Operators & MVNOs
Analysis Document
This document has been created for the exclusive use of our clients. It is not complete unless supported by the underlying detailed analyses and oral presentation. It must not be passed on to third parties except with the explicit prior consent of NEREO BUSINESS CONSULTANTS.
Sao Paulo, November , 2010
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INTRODUCTION
This document highlights the underlying advantages of cable operators using
mobile services to complement their existing offers…
• NEREO has extensive experience in assisting clients realize their MVNO objectives. Based on this experience, we have studied the manner in which cable operators can differentiate
themselves through MVNOs
• Brazil, being a rapidly maturing telecom market, presents an exciting opportunity for setting up MVNOs
• Cable operators can create substantial value by exploiting synergies between their existing products and mobile services
• By launching a MVNO, a cable operator can provide an interesting mix of services and push its share of the customer wallet
• Finally, this document is intended to provide a high-level understanding and demonstrate the attractiveness of the MVNO proposition
Implementing Fixed-Mobile Convergence and increasing customer loyalty are the main
reasons for Fixed and Cable Operators to enter in the MVNO arena
MVNOs
Fixed Mobile Convergence
Increasing customer wallet share
1 2 Quad Play / Retention
3
ENTRY STRATEGY
ENTRY STRATEGY
Fixed and Cable Operators and MVNOs (II)
Fixed-line and cable operators have been the first players off the block to launch MVNOs in Latin America….
DESCRIPTION OBSERVATIONS
These operators launch MVNO to primarily enhance monetization of existing clients
MVNO MODEL HOST
• Leading Mexican Cable Operator
• Postpaid-only MVNO launched in 2007
• Sold bundled as quadruple-play to existing customers
Branded Reseller
• Only postpaid agreement
• Limited flexibility in configuring product offerings; prices & services • Billing services offered by
Movistar with Maxcom branding • >50,000 MVNO customers
• Leading Colombian Regional Fixed Operator
• Both prepaid and postpaid MVNO
• Strategy to enhance fixed telephony offers
Service Provider
• Negotiations in progress • Flexibility in configuring product offerings; prices & services
• To be sold bundled as triple-play & stand-alone also
• Chilean fixed operator with cable & internet offers
• Agreement concluded to launch a MVNO
• Existing triple-play of Digital TV, Broadband and Fixed phone
Branded Reseller
• Agreement signed in 2008 & renegotiated in 2010
• Limited flexibility in configuring product offerings; prices & services • Movistar to provide MVNE services; Rating, Billing etc.
FASTWEB is the principle alternative operator with its own fiber optic network in Italy. It
has been able to successfully offer mobile services by forming an agreement with H3G
ADSL & CABLE OFFERS
CABLE & TELECOM COMPANIES WITH MVNOs
Fastweb
FASTWEB has launched the MVNO service to extend its product offers outside the home and offer voice and high-speed data services with mobility
MOBILE & MOBILE INTERNET OFFERS
ADSL + Fixed Line ADSL + Fixed line + TV Mobile Services Internet Mobile Service
EUSKALTEL is the leading regional cable operator in the Basque region of Spain. The
MVNO service is positioned as a complementary extension to its cable & internet products
ADSL & CABLE OFFERS
CABLE & TELECOM COMPANIES WITH MVNOs
Euskaltel
It has leveraged its regional identity to create a community effect and has successfully extended it to its MVNO service
MOBILE & MOBILE INTERNET OFFERS
Cable ADSL + Fixed line + TV Mobile Services Internet Mobile Service
TELENET is the largest provider of broadband cable services in Belgium. Customers
receive discounts based on the services in their package
ADSL & CABLE OFFERS
CABLE COMPANIES WITH MVNOs
Telenet
TELENET offers a very unique proposition; offering its existing HOTSPOTS free to its internet mobile customers thereby achieving convergence
MOBILE & MOBILE INTERNET OFFERS
ADSL + Fixed Line ADSL + Fixed line + TV Mobile Services Internet Mobile Service
JAZZTEL is a leading competitor for the incumbent, TELEFONICA, in the Spanish ADSL
market. It has recently complemented its ADSL product with IPTV & mobile data services
ADSL & CABLE OFFERS
CABLE & TELECOM COMPANIES WITH MVNOs
Jazztel
JAZZTEL has launched its own MVNO to complete its triple and quadruple play offerings with a single bill
MOBILE & MOBILE INTERNET OFFERS
ADSL + Fixed line ADSL + Fixed line + TV Others 38.1% 7.4% 54.5%
ADSL Market Share – Jun 2010
Mobile Services
Internet Mobile Service
ONO is the leading cable operator in Spain. ONO has positioned its MVNO offering to be
complementary to its principal offering through low On-net rates
ADSL & CABLE OFFERS
CABLE & TELECOM COMPANIES WITH MVNOs
Ono
ONO offers high speed broadband with mobility through its Internet Mobile service in addition to its fixed internet offer
MOBILE & MOBILE INTERNET OFFERS ADSL + Fixed line ADSL + Fixed line + Cable Mobile Services Internet Mobile Service
RCABLE is the leading regional cable operator in the Spanish region of Galicia. It launched
its MVNO service to complete its triple play & quadruple play strategy
ADSL & CABLE OFFERS
CABLE & TELECOM COMPANIES WITH MVNOs
R Cable
RCABLE’S internet mobile offering is intended strictly to be an extension of its ADSL offer with a relatively low volume of data offered
MOBILE & MOBILE INTERNET OFFERS
ADSL + Fixed line ADSL + Fixed line + TV Mobile Services Internet Mobile Service
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