Cable & Telecom Operators & MVNOs. Analysis Document

Transcription

1 Cable & Telecom Operators & MVNOs Analysis Document May you require further info, please contact: Pedro Sao Paulo, November, 2010 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. CAB

2 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 CAB

3 ENTRY STRATEGY Fixed and Cable Operators and MVNOs (I) Implementing Fixed- Convergence and increasing customer loyalty are the main reasons for Fixed and Cable Operators to enter in the MVNO arena 1 Fixed 2 Quad Play / Retention Convergence MVNOs 3 Increasing customer wallet share CAB

4 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 MVNO MODEL HOST OBSERVATIONS 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 Provider Negotiations in progress Flexibility in configuring product offerings; prices & services To be sold bundled as tripleplay & 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. These operators launch MVNO to primarily enhance monetization of existing clients CAB

5 CABLE & TELECOM COMPANIES WITH MVNOs Fastweb 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 Fixed Line s Fixed line + TV FASTWEB has launched the MVNO service to extend its product offers outside the home and offer voice and high-speed data services with mobility CAB

6 CABLE & TELECOM COMPANIES WITH MVNOs Euskaltel 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 Cable s Fixed line + TV It has leveraged its regional identity to create a community effect and has successfully extended it to its MVNO service CAB

7 CABLE COMPANIES WITH MVNOs Telenet TELENET is the largest provider of broadband cable services in Belgium. Customers receive discounts based on the services in their package Fixed Line s Fixed line + TV TELENET offers a very unique proposition; offering its existing HOTSPOTS free to its internet mobile customers thereby achieving convergence CAB

8 CABLE & TELECOM COMPANIES WITH MVNOs Jazztel 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 + Fixed line Fixed line + TV s ADSL Market Share Jun 2010 Others 38.1% 7.4% 54.5% JAZZTEL has launched its own MVNO to complete its triple and quadruple play offerings with a single bill CAB

9 CABLE & TELECOM COMPANIES WITH MVNOs Ono 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 Fixed line s Fixed line + Cable ONO offers high speed broadband with mobility through its service in addition to its fixed internet offer CAB

10 CABLE & TELECOM COMPANIES WITH MVNOs R Cable 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 Fixed line s Fixed line + TV RCABLE S internet mobile offering is intended strictly to be an extension of its ADSL offer with a relatively low volume of data offered CAB

11 NEREO BUSINESS CONSULTANTS C/ Jorge Juan, Madrid CAB