Service Innovation. Simplified. Dipper: How an entrant MVNO took the Business Market by Storm. A Gintel Case Study

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1 Service Innovation. Simplified. Dipper: How an entrant MVNO took the Business Market by Storm A Gintel Case Study

2 1 How can an MVNO break into a market that s already crowded and stand any chance of success? 2 What motivating factors can convince investors that the company can compete against established players and win market share and attract new customers? 3 How can a business offer something genuinely different, innovative and attractive to potential customers? The Challenge Dipper...launched a compelling service offer into the market. One year on, the company has gone from strength to strength... It s a familiar story. At first sight, the situation in Norway seemed unpromising for a new entrant to establish a business in the telecommunications market. With a number of established players offering services to both consumer and business subscribers, there appeared to be little room for another. In particular, the consumer market is faced with pressures that are similar to those in other European countries declining revenue and decreasing margins apparently limiting the potential to build a profitable business. That s the challenge that confronted the team behind Dipper, a new MVNO that entered the Norwegian market in The Dipper team successfully solved these issues and launched a compelling service offer into the market. One year on, the company has gone from strength to strength and is rapidly building market share in an extremely competitive market. How did Dipper achieve this?

3 The Solution other players were failing to address the needs of small businesses...a significant part of the economy was unable to obtain advanced services at an affordable price and with the flexibility they need.. Competition and saturation in consumer markets has diminished the opportunity for new entrants to capture market share and build sustainable, profitable businesses. And yet the principals of Dipper believed there was a source of potential customers whose needs were not being met by existing players. Sensing an opportunity, the team conducted a rigorous review of the market. By examining the needs of potential customers, it was possible to identify a gap in the market. The team recognised that the other players were failing to address the needs of small businesses. In particular, it was clear that a significant part of the economy businesses with 10 or fewer employees was unable to obtain advanced services at an affordable price and with the flexibility they need. Larger companies have a broad range of alternatives. Some opt for traditional, on-premises solutions but while mobile office services were well established, these were typically targeted towards companies with more than 20 employees. With this data to hand, the Dipper team had the beginnings of a business plan. But identifying an opportunity, while necessary, is not sufficient. The team recognised that it was equally important to identify how to meet these un-met needs and not simply to focus on a specific group of customers. To understand this, the Dipper team investigated the needs of small businesses in detail.

4 small businesses...want to get more from their mobile services. They need features that suit new ways of working and promote the agility that is necessary to build success. Small businesses often use mobile as the primary means of communicating, both between colleagues and with existing and potential customers. They may have office space, but may also spread resources between different locations. They need to be agile and to ensure that they are able to deal efficiently with every enquiry they receive whether that s a telephone call or contacting someone that makes a web or enquiry. Despite advances in technology, voice calls remain hugely important and employees in a small business need to be able to share the burden of interacting with customers. Few small businesses have the desire to invest in complex, officebased systems for managing calls. Instead, they want to get more from their mobile services. They need features that suit new ways of working and promote the agility that is necessary to build success. What s more, they don t want to be committed to lengthy contracts or large cash flows, preferring simple billing arrangements. The Dipper team was able to identify a number of requirements. By delivering these, Dipper could provide a compelling proposition that would allow it to succeed in the highly competitive market. Defining a successful MVNO offer for small businesses Simple call management & routing Predictable monthly billing Generous & upgradeable airtime offers Online Self Help Easy configuration and purchasing Rapid and simple service activation

5 Dipper was launched as an MVNO targeted at the needs of small businesses, typically with 10 or fewer employees. Based on this extensive research and market evaluation, the team was given the go ahead to define and launch a service. In April 2013, Dipper was launched as an MVNO targeted at the needs of small businesses, typically with 10 or fewer employees. Dipper worked with Gintel, a leading provider of enterprise communications services to define a package that would deliver outstanding functionality and enable it to offer simple yet effective services, quickly, costeffectively and easily. Gintel was able to deliver a customised version of its Enterprise Call Manager solution that provided the required functionality. This included: Enterprise Call Manager Multiple main or department numbers Auto-attendant / IVR Advanced call routing and hunting options Time of day and date routing Follow me feature and automated call forwarding Select presentation number Company switchboard Self-care interface Speed dialling Handset independence use existing devices Integration with all mobile handsets Fixed terminals / IP phones The solution enabled Dipper to offer a complete call management package to its target range of customers as a simple, easily affordable package. Marketed as the switchboard, the service was made available for a fixed monthly subscription fee. Dipper chose to offer only three airtime / data bundles to its customers, distinguishing the offer on the basis of simplicity. Whereas other providers often had a complex array of bundles and packages, Dipper wanted to make purchasing decisions easy. Customers could choose from the range of packages available and then select to add the switchboard service. Crucially, the Dipper team identified two additional factors

6 that would make a significant contribution to its success as an MVNO. No contract tie-in The ability for non-subscribers to use the service By eliminating the obligation to sign lengthy contracts, Dipper made subscriber recruitment easier, creating a no-risk offer that avoided penalties. But the real killer feature was the ability for subscribers to other networks to use the service. The team had found that small businesses might include employees or consultants that have a different mobile provider. By leveraging Gintel s technical expertise, Dipper made it possible for all workers to be included in the switchboard package with the result that the service instantly became even more attractive. Results Gintel has helped a newcomer break into a market that, to many, appeared saturated. t s a model that can be replicated. The simplicity of the offer has proven to be compelling. From a standing start, the service has attracted customers with most choosing to add the switchboard to their package. In this way, Dipper has been able to not only sell traditional airtime packages but also to add the switchboard service, building a profitable and predictable revenue stream. As a new entrant, Dipper had to create, identity and develop a close relationship with its customers. By working with them, Dipper has established a clear personality and created an attractive, exciting presence. It tries to speak to and engage with customers, highlighting their successes and creating a recognisable community of users. The combination of smart analysis, smart marketing and excellent communications solutions from Gintel has helped a newcomer break into a market that, to many, appeared saturated. t s a model that can be replicated. While other MVNO projects may fail due to limited or diminishing returns from consumer offers, companies like Dipper can succeed based on a deep understanding of the market structure, identification of where opportunities can be found, and the ability to deliver a solution that meets the needs of prospective customers.

7 gintel.com Service Innovation. Simplified. phone: Otto Nielsens vei 12, N-7004 Trondheim, Norway

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