MVNO: Fun or Boring? Retail MVNO business model.
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MVNO: Fun or Boring? Retail MVNO business model.

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Effortel's conference presentation- "MVNO- Fun or Boring" is a humorous story of a marketing executive who does not want to deal with telecom operations and technology, wishing to keep doing "fun" ...

Effortel's conference presentation- "MVNO- Fun or Boring" is a humorous story of a marketing executive who does not want to deal with telecom operations and technology, wishing to keep doing "fun" things instead.

The presentation highlights the operational and technical complexities and the importance of them right to successfully run a global MVNO. It takes more than marketing fun to succeed.

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MVNO: Fun or Boring? Retail MVNO business model. MVNO: Fun or Boring? Retail MVNO business model. Presentation Transcript

  • MVNO Fun or Boring? Liudvikas Andriulis © 2009
  • Free minutes Given to customers for their shopping
  • Effortel is both MVNO and MVNE Own MVNOs 1 platform in Brussels 5 countries 6 MNO integrations Italy Taiwan Belgium Poland 7 MVNO’s MVNE customers 60 people 1 million+ activations Italy Poland Oman Mobile Network Integrations Belgium Italy France Poland Taiwan Oman
  • Fun ˈfәn- noun. A source of enjoyment, or pleasure. Boring ˈbȯr-iŋ -adjective. Not interesting, tedious.
  • In the beginning it’s fun * Ambition to build a global MVNO * MVNO-then-MVNE strategy Blue-chip partners * * Team of crazy telecom veterans
  • * Do an RFP for an MVNE solution * Integrate it with 5 network operators Launch 5 MVNO’s in 4 countries * * reach 500 000 subscribers and... boring starts creeping in
  • Ordering leased lines; E1 delivery & implementation; Out-negotiating MNO’s; Testing links & connectivity; MNO internal E1 configuration; Hiring best people; Writing integration documentation; Detailing LAB Architecture specifications; Launching new countries; Detailing PROD Architecture Specifications; Delivering the test SIM data file; Configuring test plan; brainstorming killer products; Recording voice messages; Routing rules configuration; Fine-tuning distribution; Defining judicial requests process; Billing & payments specification delivery; Building the brand; Link alignment; Defining destinations & scenarios; Writing SMS B2B gateway specification; Benchmarking competition; Reviewing reporting specification; E2E prepaid testing; Outsmarting big telecoms; Preparing training material; Change MSISDN Unitary Testing; Analyzing customer data; Defining billing cycles and principles; Bad-debt management; Operating customer ID process; Acquiring new sales channels; Setting up Budget Control; Generating invoice files; Talking to the customers; Setting up provisioning; Developing activation workflows; Disputing MNO’s invoices; Writing IVR definitions; Managing pin and puk codes; Delivering specific logic diagrams; investigation Designing the communication; Specifying SIM technical profile;Executing tests & resolving problems; writing 500 page RFP’s; Materializing the services; Routing Rules Configuration
  • Ordering leased lines; E1 delivery & implementation; Out-negotiating MNO’s; Testing links & connectivity; MNO internal E1 configuration; Hiring best people; Writing integration documentation; Detailing LAB Architecture specifications; Launching new countries; Detailing PROD Architecture Specifications; Delivering the test SIM data file; Configuring test plan; brainstorming killer products; Recording voice messages; Routing rules configuration; Fine-tuning distribution; Defining judicial requests process; Billing & payments specification delivery; Building the brand; Link alignment; Defining destinations & scenarios; Writing SMS B2B gateway specification; Benchmarking competition; Reviewing reporting specification; E2E prepaid testing; Outsmarting big telecoms; Preparing training material; Change MSISDN Unitary Testing; Analyzing customer data; Defining billing cycles and principles; Bad-debt management; Operating customer ID process; Acquiring new sales channels; Setting up Budget Control; Generating invoice files; Talking to the customers; Setting up provisioning; Developing activation workflows; Disputing MNO’s invoices; Writing IVR definitions; Managing pin and puk codes; Delivering specific logic diagrams; swamped Designing the communication; Specifying SIM technical profile;Executing tests & resolving problems; writing 500 page RFP’s; Materializing the services; Routing Rules Configuration by boring
  • boring brainstorming killer products Hiring *Effortel MVNE Ordering leased lines; best people Launching new E1 delivery & implementation; countries Out-negotiating MNO’s Testing links & connectivity; MNO internal Building the brand Outsmarting big E1 configuration; Writing integration documentation; Detailing LAB Architecture specifications; Detailing telecoms Disputing MNO’s invoices PROD Architecture Specifications; Delivering the test SIM Designing the communication; data file; Configuring test plan; Recording voice messages; Materializing the services; Talking to Routing rules configuration; Defining judicial requests the customers Benchmarking process; Billing & payments specification delivery; Link alignment; Defining destinations & scenarios; Writing competition Fine-tuning distribution SMS B2B gateway specification; Reviewing reporting Analyzing customer data specification; E2E prepaid testing; Preparing training Acquiring new sales material; Change MSISDN; Unitary Testing; Defining billing channels cycles and principles; Bad-debt management; Operating customer ID process; Setting up Budget Control; fun Generating invoice files; Setting up provisioning; Developing activation workflows; Writing IVR definitions; Managing pin and puk codes; Delivering specific logic diagrams; Specifying SIM technical profile; Executing tests & * resolving problems; writing 500 page Effortel MVNO RFP’s; Routing rules Configuration
  • So while we keep having fun... Effortel MVNE is doing the boring stuff for us
  • Running 5 MVNO’s from 1 place 1 Amdocs platfom * * 0 km to Brussels * 1 city of Brussels * 9603 km to Taipei * 3 continents * 9593 km to Sao Paulo * 265 km to Paris 5 MVNO’s * * 1159 km to Warsaw * 10 people running it * 686 km to Milan
  • Generating 150 million reload codes every month * Distributed as free minutes for shopping Through 7000 cash registers in Italy * 5000 cash registers in Poland * 6000 cash registers in Belgium *
  • Enabling Daily Telecom in 2 months * Chinese MVNO in Italy * 50 000 customers in 3 months * Contract took 6 months * Setup took 2 months IVR in Chinese Notifications in Chinese Selfcare in Chinese Everything in Chinese
  • Migrating to Amdocs in 3 months * Belgium was started on external MVNE * Their platform could do nothing * It was not fun at all * It took a year to get MNO approval to use our platfom * And only 3 months to migrate
  • Configuring a promotion in 4 days “All top-ups -25% this weekend” * Retailers taught us to be fast * They don't work with 18 month action plans * They do what’s needed this week * Idea on Monday, promotion by Friday * It works, retailers are right.
  • Managing MVNOs for big operators * Effortel provides managed services to MNO’s * Backoffice, customer care and tech support * Small MVNO’s get better service * MNO’s avoid the hassle
  • Helping young MVNO’s start fast * They underestimate the investment needed * They know nothing about telecom * They want to launch an MVNO * We help them.
  • Retail MVNO go-to-market strategy No-frills mobile prepaid differentiated with retail-specific features and Core product No-frills mobile prepaid Honest, clear price promise No confusing price plans No conditions Differentiation Result Mobile prepaid integrated with retail Attractive and simple mass-market proposition experience Interesting, appealing and unique promotions (e.g. free minutes Part of the loyalty program for shopping) Seamless integration with check-out systems Instantly marketed to tens of millions of daily shoppers Integration with shopper behavior analysis systems Recurring contact with subscriber as he/she returns to the store regularly Much lower SAC compared to industry- “store is the TV” Communication Much lower churn compared to industry if integrated with loyalty program Utilization of unique retail POS marketing opportunities Visible starterkit placement Services materialization: minute bundles on the shelf as barcodes Presence in catalogues, posters, product and brand promotions
  • Prerequisites of successful retail MVNO marketing time-to-market and flexibility is key Speed Micromarketing Retail environment dictates fast pace Hundreds of segments require hundreds of offers Weekly, not quarterly activity planning Retailers identify hundreds of shopper segments and work with Idea on Monday, promotion by Friday them Daily price corrections Tens of small promotions are executed every day in every store Daily offers and promotions Ability to cater to micro segments is of ultimate importance Time to market- max 1 week Constant micromarketing is key to retail MVNO success Flexibility Integration Retail environment is always changing Retail technologies are key to differentiation Constantly changing mix of communication channels Unique services and promotions come from retail environment Constantly changing segment tactics Cashier systems enable basket-related promotions Constantly changing physical environment CRM integration enables unique retention programs Constantly changing competitive landscape Integration is the only way to ensure core business benefits from MVNO too Agility, speed and uniqueness are vital for success of a retailer MVNO
  • Benefits of using a specialized MVNO platform the only way to ensure compliance with retail environment requirements Openness Complexity Hundreds of promotions, hundreds of products Able to integrate to anything Cross marketing with products, brands and categories result in complex schemes A lot of retail systems were never meant to be integrated Data from different sources has to be merged (Nielsen, loyalty, CRM, suppliers) with telecom Retail systems trigger telecom systems (e.g. activation by barcode) Integration with CRM is essential Telecom systems feed data to retail systems (e.g. mobile couponing) Integration with cashier systems is essential Different subscriber subsegments require tailored retention programs and lifetime Integration with other 3rd party (e.g. P&G) systems will be management needed too Know-how Rapid deployment Retail know-how is essential Planning horizons of weeks, not quarters Product category-related promotions Product and service development has to extremely rapid AC Nielsen data based promotions Service testing involves not only telecom, but also retail systems Shopper behavior based promotions Promotion and pricing changes have to be delivered in days Location and geomarketing based promotions Different segments, categories and products have to have their promos maintained daily 10 free minutes for buying this product Carrefour Telecom, Taiwan. Product catalogue with free
  • Technical solution Scalable, redundant, compliant and flexible delivers 5NINES availability specifications carrier grade hardware corresponds to all ETSI and NES standards technology agnostic GSM, CDMA, WiMax 2 segment architecture, no single point of failure advantages scalable to 10 million subscribers full internet support full support of all voice and data services
  • Integration is key Retail and telecom technologies are merged to create a differentiated telecom domain retail domain Network technologies Retail technologies •Check-out systems •Radio network •Loyalty program •Switching •Behavior analysis •HLR •Stock management Effortel MVNO Services and billing technolgies solution Third party systems •Billing/OSS •IN Effortel MVNO solution integrates • Payment card systems •CRM • Clearing centers telecom and retail technologies to • Suppliers (e.g P&G) create a differentiated, competitive mobile prepaid offer
  • MNO platform vs retail MVNO platform main differences MNO platform Retail MVNO Fast service development (weeks) Slow service development (months) Made to be integrated with third party Hard to integrate with 3rd party Retail-related functionality exists Hardly supports retail-related functionality Supports hundreds of segments Supports ten segments Supports hundreds of products Supports ten products Has hundreds of pre-developed Does not have pre-developed services services Supports 2 wallet per subscriber Supports 10 wallets per subscriber Supports 2 counters Supports tens of counters per Managed by non-dedicated engineers subscriber Managed by MVNO dedicated engineers
  • boring brainstorming * Effortel MVNE Ordering leased lines; E1 delivery & implementation; killer products Hiring Testing links & connectivity; MNO internal best people Launching new E1 configuration; Writing integration documentation; Detailing LAB Architecture specifications; Detailing countries Out-negotiating MNO’s PROD Architecture Specifications; Delivering the test SIM Building the brand Outsmarting big data file; Configuring test plan; Recording voice messages; telecoms Disputing MNO’s invoices Routing rules configuration; Defining judicial requests Designing the communication; process; Billing & payments specification delivery; Link alignment; Defining destinations & scenarios; Writing Materializing the services; Talking to SMS B2B gateway specification; Reviewing reporting the customers Benchmarking specification; E2E prepaid testing; Preparing training competition Fine-tuning distribution material; Change MSISDN; Unitary Testing; Defining billing Analyzing customer data cycles and principles; Bad-debt management; Operating Acquiring new sales customer ID process; Setting up Budget Control; Generating invoice files; Setting up provisioning; Developing channels activation workflows; Writing IVR definitions; Managing pin fun and puk codes; Delivering specific logic diagrams; Specifying SIM technical profile; Executing tests & resolving problems; writing 500 page *you RFP’s; Routing rules Configuration
  • We do boring stuff well Because we do it for ourselves We can do the boring stuff for you too If you want
  • Liudvikas Andriulis liudvikas.andriulis@effortel.com Effortel address   Ch. de La Hulpe 187, 1170, Brussels, Belgium tel            +32 (0) 2 761 95 90 e-mail     sales@effortel.com      web         www.effortel.com