Piran Partners Andrew White Ethnic MVNOs FINAL
Content
Our mission: To provide clear, practical and straightforward commercial advice
to our clients in the Telecommunications, Media and Technology sectors
Ethnic MVNOs
Andrew White Founding Partner Partner,,
Piran Partner Partners s
+44 7703 496 494 www.piranpartners.com 10 Fitzroy Square, London, W1T 5HP
Agenda
•
ou
ran ar ners
• Ethnic MVNOs – What is an Ethnic MVNO – Economics – Benefits to an MNO of hosting an Ethnic MVNO – Accessing Ethnic consumers – Where an Ethnic MVNO fits in an MNO’s ortfolio of MVNOs
• Re Rea al lif life e cas case e stu stud dy –
a n ng
• Conclusion
agreemen s qu c y n mu p e coun r es
About Piran Partners
MOBILE OPERATORS
Commercially Focused
Experienced
Independent
THIRD PARTIES Our mission: To provide clear, practical and str ightforward commercial commercial advice advice to our clients clients in the
Telecommunications, Telecommunicatio ns, Me ia and Technolo
sectors
Piran Partners Engagement footprint
Who are Ethnic subscribers?
•
ew m m g r an s o a c o u n r y
•
,
,
• Typi ypically cally,, 10% of the t he popula popul ati tion on of o f a progre progressive ssive country falls falls into i nto this thi s group source ce of ne n ew consum co nsume ers t • Plentiful sour
a coun country try
Calling Internationally
Representative retail price per international minute ,
All UK mobile oper operato ato s and all fixed operators
Source: Ofcom, Oct 2006.
‘Price elasticity’ curve
Representative retail price per international minute ,
All UK mobile oper operato ato s and all fixed operators
Source: Ofcom, Oct 2006.
The Ethnic MVNO
Representative retail price per international minute
Ethic Ethi c MV MVNO NO Price remium
, Large opport uni t y
All UK mobile operato operato s and all fixed operators
Source: Ofcom, Oct 2006.
Benefits of hosting an Ethnic MVNO
fro m the landli • Subst ubsta anti ntia al migration mig ration of traffic t raffic away from landline ne ne netwo tworks rks
,
• A Ac c c es ess s t o n ew i m m i g r an antt s – a su s u b tantial growth grow th area
• How does a Mobile Mobil e Ne Netw twork ork Opera or address the t he market?
, . .
’
-
• Thir Third d party p arty MV MVNO NO,, e.g. e.g. Mob Mobil ile e orld, Lyca LycaM Mobile or Lebara Lebara Mobile Mobile
Accessing the consumers
•
r ce a one s mp y oesn wor , distribution is key
• New New imm immig igra ran nts ar are e war wary y – ne need ed to prove the offer is genuine • Ne Need ed to to sell sell the the offe offerr from from with within in e commun y
• Witho Without ut harming harming the the mobile mobile operator operator’s ’s own brand brand’s ’s internati international onal price price point point
Maximis imising ing the prof profits its from Max
• A nati nation onal al mar marke kett can can supp suppor ortt bet bet een 3 to 4 different Ethnic MVNOs • Pas Pass s resp respons onsib ibili ility ty for for custo custome merr c re to the Ethnic MVNO • Ensure that national ricin is co
etit et itiv ive e but but no nott too too co com m et etit itiv ive e
• All Allow ow the the Eth Ethni nic c MVNO MVNO to rou route te t e international traffic
How does an Ethnic MVNO
comprise large: –
e a ers
– Brands
How does an Ethnic MVNO
comprise large: –
e a ers
– Brands
We di a r e e .
How does an Ethnic MVNO
large: – Retailers – Brands
• We di disagree.
• Op Optim timum um MV MVNO NO por portf tfoli olio o sh sh uld comprise: –MVNOs – MVNOs with distribution – e. . r tailers – MVNOs with a very differentiate prop –MVNOs proposi ositio tion n – e.g e.g.. Ethnic Ethnic MVN MVNOs Os –
Implementing an Ethnic MVNO
• Allow Allow the the Eth Ethnic nic MVN MVNO O to car carry ry the Int rnational Traffic. – The need to as it is an im ortant diff rentiator • Chec Check k the the Ethn Ethnic ic MVNO MVNOs s prop propos ositi ition on – Where is the the proposition proposition positioned positioned in relation to the market? • Che Check ck the Eth Ethnic nic MVN MVNOs Os dis distrib tributi ution on
– Is it multi-Ethnic?
Is it effective? And will it reach the target consumers?
• Chec Check k the the Ethn Ethnic ic MVN MVNOs Os pro probi bity ty – e ca ng car mar e as s or ca y een assoc a e w
u ous prac ces
Real Life Example Piran
artner’s
Client
• Europe’s #1 Ethnic MVNO • • Launching mo more iin n2 20 007 • Over 500,000 users • • UK’s 4th fastest growing pr va e y e
company
Piran Partners Methodology ™
•
– Engagement process used to secure wholesale agreements with mobile operators .
Piran Partners Methodology ™
•
– Engagement process used to secure wholesale agreements with mobile operators .
•
– Process enables operator operator to to define or improve their wholesale strategy, identify which partners to target and which products and services to offer, while understanding the operational impact on the business.
Proposition Development
Proposition Development
• The Science and the A Arr t of pricing • Use the Price Sensitivit Meter and Focus Group
Financial wholesale modeling
Five Tips a n nTop g agreemen
s
• – Don’t approach MNOs until the story and and strategy stands up from all angles
•
e rea s c – Both with revenue revenue projections and timeline exp exp ctations
• Bei Being ng con consci sciou ous s of of the the MNO’ MNO’s s hidd hidden en urdles – Hidden icebergs icebergs waiting to hole hole your pitch
• Ens Ensure ure tha thatt ever everyth ything ing is con consis sisten tentt – Often two levels of detail in advance advance
• It tak takes es lo long nger er th than an ex expe pect cted ed –
Conclusions
•
nc
s r ep r es en a s u s an a o p p o r u n y
subsi sub sidi dia ari rie es of MNOs
• Don’ on’tt put pu t the th e MNO’s brand b rand at at risk ri sk b launching a branded branded tarif tarifff plan p lan MVNO O market is cu curr rrentl ently y very eceptiv ceptive e to well prese p resented nted • The MVN proposit prop ositions ions wit with h experience experienced d man man gement teams teams
Contact Piran Partners
An A n d r ew Wh Whii t,e +44 7703 496 494 . . 10 Fitzroy Square, London, W1T 5HP
Contact Piran Partners
An A n d r ew Wh Whii t,e +44 7703 496 494 . . 10 Fitzroy Square, London, W1T 5HP
