Global Mobile Broadband: Key Trends
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1 Global Mobile Broadband: Key Trends Presented by: Emma Mohr-McClune, Deepa Karthikeyan, Natasha Rybak Date: December 2010 Washington DC / Paris
2 Agenda Six Key Mobile Broadband Trends Evolution of no contract plans New device formats, netbooks, tablets etc. Marketing data usage, trends Rise of prepaid and regional players in US Bundle trends with mobile broadband in Europe 4G/ LTE 2 2
3 Trend 1 Evolution of No Contract 3 3
4 US Contract Free Plans were made popular in the US by AT&T s ipad offerings Offered by most service providers today for tablet and specific hotspot devices such as the ZTE Peel and Clear s ispot Ideal for ancillary devices Include postpaid like perks such as unlimited Wi-Fi access 4 4
5 EUROPE Fastest growing proposition in Consumer mobile broadband today Total number of 30-day products doubles each quarter in 2010 Q Q markets 5 markets 5 products 18 products 30-day now represents 10% of all mobile broadband services (prepaid = 20%) Q Q markets 14 markets 44 products 92 products Q3 - Only half are ipad or tablet plans 5 5
6 Trend 2 New Device Formats: Netbooks,Tablets etc. 6 6
7 US The Tablet Fever Led to new plan categories Responsible for popularizing contract free options Mobile Hotspot Devices ZTE Peel Clear s ispot Netbooks Chrome OS netbook 7 7
8 EUROPE Lost marketing emphasis in SP channel in Q3 25% fewer netbook bundles in Q3 Reduced number of netbook options within portfolios (1-2) Unbundling of hardware and access Early 2010 marketing emphasis on coloured and designer netbooks discontinued ipad to enter service provider retail channel for first time in Dec Head to head with Galaxy Samsung Tab, at similar price point Wide variety of service models, from contract/ subsidies to 30-day 8 8
9 Trend 3 Marketing Trends: Data Usage 9 9
10 US Most tier one service providers charge overages on their mobile broadband plans Service Provider AT&T Sprint T-Mobile Verizon Wireless Mobile Broadband Overage Charges* $50-$100 per GB $50 per GB $100 per GB $10 per GB * Overage charges were converted to GB from MB for uniform comparison Bandwidth Reduction was made popular by Leap Wireless T-Mobile followed suit soon after Who is next? 10 10
11 EUROPE Volume-based models dominate postpaid Time-based emerging in no contract market Unlimited strong as ever Half service providers market at least one unlimited service (with FUP) Truly unlimited rare Viral return: witness Sweden Off-peak bonuses Still rare, but growing trend Great variety in model; inclusive, happy hour, bolt-on Potential for competitive response; witness Poland 11 11
12 Trend 4 US: Rise of Prepaid, Regional Players 12 12
13 US Postpaid Service Providers Go the Prepaid route Prepaid and Regional Providers beef up their plans New devices are no longer taboo Tablet and Hotspot devices offered Prepaid users now have access to high end broadband plans 13 13
14 Trend 5 Europe: Bundling Trends 14 14
15 EUROPE Hot Trend Hot Spots 1 in 5 consumer offers, majority postpaid Unlimited use of national networks But Free Inclusive Bundled Services Are Sparse Inclusive SMS, mobile voice calling Mobile TV, Software, Online storage 15 15
16 Emphasis on Incentives Discounting & Freebies 7% of offers include discounting for existing customers 17% promise limited time free and/or discounted security software Fixed Broadband Crossover Few providers offer bundled mobile + fixed broadband packages Mobile broadband positioned as complementary access method 16 16
17 Trend 6 4G Today 17 17
18 US Positioning varies by service provider Attractive plan prices Plans priced between $50-$60 Sprint and Clearwire offer unlimited 4G access Familiar plan structure helping consumers better understand and relate to plans When are the new plan models coming? 18 18
19 EUROPE: The Marketing Case for LTE Telia Sweden Total 4G (80 Mbps): for those who only settle for the best in the world Netcom (Norway) 4G (100 Mbps): HD TV quality without a single notch or delay Tele 2 Sweden 4G Long download waits and choppy movies are a thing of the past now you can play online games and have video conferences with great image quality Telenor Sweden 4G Streaming, Visual networking, P2P, online gaming 19 19
20 Germany Special case 800 MHz spectrum license conditions oblige service providers to roll out to rural areas with no fixed BB first T-Mobile: Positions LTE as an extension of its DSL portfolio Call & Surf Comfort Via Radio Vodafone LTE At Home, three flavours, tiered pricing, speeds and max down speeds 20 20
21 Final Thoughts New devices will continue to create new plan categories Service providers will soon offer plans that can be used across two or more device types Prepaid and contract free offerings will continue to gain steam, pose retention worry Mobile broadband bundling remains an immature and untapped opportunity in Europe 21 21
22 Thank You For more information, please contact Emma Mohr-McClune Deepa Karthikeyan Natasha Rybak Washington, D.C Signal Hill Plaza, Suite 200 Sterling, VA 20164, United States Phone Toll free Fax Paris, France Bureaux de Sèvres - 2, rue Troyon Sevres Cedex, France Phone +33 (0)
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