How to: Retail Marketing by Global MVNO

Effortel Retail MVNO services Liudvikas Andriulis Brussels, January 2010

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

Effortel’s technology

Effortel MVNE environment cost efficiency built to support a global MVNO scalability with 4 objectives in mind centralization pragmatism

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

Tools Web customer Service Report Tariff Engine Service Studio care manager generator Allows creating and Allows to provide Controls the Generates Allows users with the maintaining the all necessary powerful and standard and correct permissions to required scenarios customer care versatile MVNO defined create, update, depending on the services easily and Tariff Engine reports control and delete specific MVNO efficiently price plans needs in specific cases. Platform tools can be accessed with the existing web tool or can be accessed with a scheme op API’s (SOAP/XML) and are under fully control of the Effortel Technology team

MVNO In a Box: all systems on one platform MVNO systems Cashier Systems Web Site Loyalty program ERP Systems Stock management Realtime integration Realtime integration Effortel MVNE systems Business support system Operational support system Report generator Point of sales Customer care Self care Voucher Inventory Dealer management management management Invoice printing Work ﬂow engine Subscriber database Postpaid billing Invoice generation Account receivables System MNP Credit check Dunning monitoring Intelligent Network Platform Systems installed locally Wholesale reconciliation and revenue assurance Balance management Data chargin RADIUS VAS SMSC MMSC VMS IVR USSD g Credit control Provisioning Real time uniﬁed rater Bonus Wallets gateway Service Logic Execution environment Service provisioning CDR Mediation Service Signaling layer B2B integration/ Bulk Exchange Provisioning commands Event records Signaling Voice B2B integration/ Bulk Exchange MNO systems Provisioning device Mediation device Top-up and collection system MSC/STP GGSN/SGSN SMSC Reporting and DWH HLR BSC/Mobile network

Effortel's technology at work Retail MVNO marketing

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 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 a free

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

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 Retailer 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

Thank you! Liudvikas Andriulis Chief Marketing Officer www.effortel.com liudvikas.andriulis@effortel.com +32 487 769 207

How to: Retail Marketing by Global MVNO

by Effortel on Jan 19, 2010

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