Source: J son & Partners Consulting
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1 Decrease in operators revenues is happening due to the increasing competition on the telecom market: tariffs are decreasing; clients loyalty is not that strong to the particular cellular operator. Same problems exist in a corporate segment (revenues per subscriber is higher in comparison with private sector, but the attraction of subscribers is much more expensive) to slow down the subscribers churn and increase the revenues per 1 subscriber. Bundling is one way to keep the clients and to stimulate the consumption (packages consist of several goods and services). J son & Partners Consulting presents results of the research: «Bundling of corporate equipment by foreign mobile operators in the SME/SOHO segments. Overview of global experience». Bundling of equipment in a corporate segment is a way to provide a complex solution for operators and clients. Bundles are mostly a tariff plans together with a subsidized subscribers equipment, software and additional services. As a rule, bundles include mobile communication, telephony for office, broadband access to the Internet and other additional services and software products (for example: Microsoft Office 365. User can choose only needed services, although in this case the offer shouldn t be very appealing. Operator Table: Services (part of foreign operators bundles) Mobile connection Broadband access Fixed telephone lines Microsoft Office 365 AT&T (USA) BT (England) Verizon (USA) EE (England) Telenor (Serbia) Vodafone (Ireland) O2 (England) Tele2 (Austria) Bouygues Telecom (France) Sprint (USA) TeliaSonera (Sweden) Source: J son & Partners Consulting J son & Partners [registered trade mark]. 1
2 Bundling of corporate equipment is highly penetrated among the universal operators (with wireless and wired broadband access, including mostly WiFi). The main business-model for such companies include: bundling of fixed broadband offers with mobile phones, WiFi use in order to unload the cellular networks, cut the costs and slow down the subscribers churn. Bundling of corporate equipment is becoming extremely popular in the SME and SOHO segments for the following reasons: To purchase a bundle for business is more profitable for companies than to buy equipment and tariffs separately. Some attractive for SME and SOHO segments tariff plans are provided only in bundles. Business-class smartphones are still very pricey and subsidizing is stimulating the demand on them. Help to cut the production costs, increase the competitiveness and efficiency of the company. Examples of largest universal operators which are actively promoting the bundling services. American AT&T operator offers bundles for corporate segment. Bundles include tariff plans for mobile phones, free Wi-Fi modem and regular telephone lines. AT&T offers one of the five bundles: All for Less Basic, All for Less Standard - IT Support, All for Less Business Starter, All for Less Online Sales Package and All for Less on the Go. The price varies from 80$ to 114,99$ per month. British operator BT (telephony, Internet access and other additional services, such as voice mail, tele and web conferences) offers to the corporate clients services of bundling of corporate equipment: mobile phone + package offer: Platinum, Premium and Budget. At the same time a client can construct new bundle consisting of the services that he needs in case the provided offers is not appropriate for the companies needs. American operator of fixed connection Verizon offers its clients business solution Verizon Business. This package includes: free router, 2 fixed telephone lines (range of functions and unlimited calls, accepting fax and transactions via credit cards), high-speed internet with a range of speed: 5, 15 and 30 Mbit/s businessapps. British operator Orange together with T-Mobile provides bundles for small business called EE. This EE bundle provide one of 11 telephones for free and 10 for additional price (up to 23$) and the client can choose the most appropriate tariff plan. Subscriber can connect additional services for additional price (such as city number, international phone etc). Serbian cellular operator Telenor is providing bundles for business: mobile phone and tariff plan. Phones price is only 10 cents and tariff plan is being chosen depending on the clients preferences. 46 phone models are available under this offer. The second offer of equipment bundling is to purchase one of 5 modems for 10 cents. Telenor and Orange companies offer the most beneficial bundles. (incl.the purchase of the mobile phone). Irish operator of cellular and fixed connection Vodafone offers bundles for business for around $117. This bundle includes fixed broadband internet access, cellular J son & Partners [registered trade mark]. 2
3 connection and Microsoft Office 365. In this case one of 3 smartphones is being provided for free: Samsung Galaxy S3, Nokia Lumia, BlackBerry Clients can also purchase iphone 4S (+ $67,5) or Samsung Galaxy Note 2 (+ $69) for additional price. English operator O2 offers business-bundles that include the purchase of mobile phone and appealing tariff plan. Bundle is provided for the following phone models: Apple iphone 5s 16GB Space Grey, Apple iphone 5c 16GB Blue, Sony Xperia Z1, Nokia Lumia Tele2, Bouygues Telecom, Sprint and TeliaSonera also provide bundling services. Only Vodafone and TeliaSonera among the mentioned above operators include Microsoft Office 365 software in their bundles. Mostly the contract for bundle must be concluded for 2 years, some operators, such as BT, Telenor or Vodafone provide contracts for a shorter period. According to J son & Partners Consulting several actions will help to increase the attractiveness of bundles for companies: including new technological equipment in a bundle, increasing quality and embedding additional services to the tariff plans (VoIP for double-side communication in a company, SIP for audio and video conferences, LTE 4G, MMS etc.) Bundling is part of services in small, medium and home office business segments. Bundling facilitates long term consumption of operators services and slow down the subscribers churn. Due to the increasing penetration rate of smartphones in the corporate segment, operators are bundling data packages and voice services together with different models of smartphones. J son & Partners [registered trade mark]. 3
4 Detailed results of the report are presented in the full version of the Report: «Bundling of corporate equipment by foreign mobile operators in the SME/ SOHO segments. Overview of global experience», 62 p. 1. Resume 2. Introduction 3. Description of corporate equipment bundled services 4. Bundling of corporate equipment. Foreign experience 4.1. AT&T Types and characteristics of offered bundles Terms & conditions 4.2. BT Types and characteristics of offered bundles Terms & conditions 4.3. Verizon Types and characteristics of offered bundles Terms & conditions 4.4. Orange Types and characteristics of offered bundles Terms & conditions 4.5. Telenor Types and characteristics of offered bundles Terms & conditions 4.6. Vodafone Types and characteristics of offered bundles Terms & conditions 4.7. O Types and characteristics of offered bundles Terms & conditions 4.8. Others Tele Bouygues Telecom Sprint TeliaSonera 5. Key market players profiles (on the bundling of corporate equipment market) 5.1. Cellular network operators AT&T Vodafone Orange Verizon Telenor BT O Tele Bouygues Telecom Sprint TeliaSonera 5.2. Equipment manufacturers Sumsung Sony HTC Huawei ZTE Nokia J son & Partners [registered trade mark]. 4
5 LG Apple Alcatel BlackBerry Snom Netgear 6. Conclusion 7. List of companies List of Tables Table 1. BT bundles for business Table 2. Mobile phones that are part of Orange bundles Table 3. Bundle from Orange company on the example of Samsung Galaxy S4 Table 4. Models of phones that are part of Telenor bundles for business Table 5. Tariff plans for phones that are part of Telenor bundles for business Table 6. Modems and tariff plans that are part of Telenor bundles for business Table 7. Models of phones that O2 operator offers (that is part of bundle) Table 8. Tariff plans for Apple iphone 5s 16GB Space Grey for 4G Table 9. Tariff plans for Apple iphone 5s 16GB Space Grey for 3G Table 10. Payment ways for Apple iphone 5s 16GB Space Grey for 4G and 3G Table 11. Characteristics of devices for corporate clients that connect bundle from Tele 2 company Table 12. Tariff plans for business bundle Table 13. Tariff offers (buying a smartphone from Bouygues Telecom operator) in a corporate segment Table 14. Tariff offers (buying equipment from Bouygues Telecom operator) in a corporate segment Table 15. Tariff offers (buying equipment from Telia operator) in a corporate segment Table 16. Example of smartphone bundling by Sonera operator in a corporate segment List of companies mentioned in the Report Alcatel Apple AT&T BlackBerry Bouygues Telecom BT HTC Huawei LG Netgear Nokia O2 Orange Samsung Snom Technology AG Sony Sprint Tele2 Telenor TeliaSonera Verizon Vodafone ZTE The newsletter was prepared by the J'son & Partners Consulting Company. We exert every effort to provide actual and forecasting data representing the situation in full and available at the time of the publication of the material. J'son & Partners Consulting reserves the right of revising the data after publication of some new official information by individual players. CONTACT FOR MORE INFORMATION: Pavel Ermolich Commercial Director Pavel@json.ru J son & Partners [registered trade mark]. 5
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