Ninja Mvno

703 views

Published on

Effortel\'s conference presentation

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
703
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
24
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Hi. My name is Liudvikas Andriulis, I run marketing in Effortel. Effortel is an MVNO and MVNE. We own and run 3 MVNOs, and we enable 6 others. We operate in Belgium, Poland, Italy, Taiwan and Oman. We run our MVNOs in joint venture with Carrefour, world’s second largest retailer. \n\nI hope most of you know Teenage Mutant Ninja Turtles, the legendary animated heroes from New York sewers trained by a rat sensei. They come out at night to fight evil villains. \n\n\n\n
  • The resemblance to MVNOs is striking. As companies we are teenage, most still startups, few older than 5 years. \n\nA lot of MVNOs are mutants, most have at least some non-telecom genes. Take Virgin Mobile or Carrefour Mobile or Tesco Mobile - all of them grew from non-telecom roots.\n\nLast but not least, successful MVNOs are ninja. They are smaller, faster, smarter and better than old large operators. Thats how ninjas survive.\n\nWe live in the sewers, we fight evil villains, and some of us are very good at this. Just like ninjas. \n\n
  • Being teenage means being cost efficient. Most of MVNOs don’t have the cash that competition does, and has to make do with the resources at hand. No HR manager, no secretary, no middle management. Only the essential gets done, only the essential gets bought. CEOs write their own press releases, Gmail does the email and marketing is creative.\n\nResult? Our subscriber acquisition cost is at least 4 times lower than market average. This is how we make money.\n
  • MVNOs are mutant, they have alien, non-telecom genes. Non-telecom genes is where the differentiation comes from. Retail companies, MLM and Groupon-type companies lend their distribution power-genes. Airlines, Social Networks and banks give access to large captive customer bases. Music televisions, energy drinks bring brand addicts. Ethnical communities, churches in Brazil have access to customers than no one else does. \nSuccessful MVNO is usually a cross between telecom and non-telecom, otherwise it becomes just a copy of a normal mobile operator - a much weaker copy. \n
  • But most of all, sucsessful MVNOs are ninja.\n\nThey use modern technology and are able to do things operators with legacy infrastructure simply cannot. \n\nNinjas create innovative, disruptive products, with features coming from mutant non-telecom genes. \n\nThey are fast - products are rolled out in days and weeks, not months and quarters. They know how to squeeze maximum mileage from every dollar, they don’t need big budgets to perform. \n\n\n
  • Carrefour is world’s second largest retailer, right after Walmart, and worlds largest international retailer with operations in more that 20 countries.\nBack in 2006 we launched the first MVNO together with them - Carrefour Mobile in Belgium. Then we went on to launch MVNOs in Italy, Poland and Taiwan. \n\nThe basis of Carrefour proposition is very simple - you bread and butter no-frills prepaid or postpaid. But it was clear early enough that differentiation is key, and product differentiation has to come from the retail world. Distribution power is not enough - we had to leverage captive shoppers and their loyalty to Carrefour.\n\nCarrefour was also interested in leveraging mobile to improve its core business. Therefore we positioned Carrefour Mobile as a part of Carrefour’s loyalty program, with an aim to increase retail core business KPIs like basket size, basket composition, frequency of visits, and so on.\n\nTo achieve this, we had to integrate our telecom technology with Carrefour’s retail infrastructure, mainly check out systems and loyalty programs. \n\nOnce we managed to do that, many interesting things became available. Once of the most successful ones was minutes for shopping - the more you shop, the more free minutes you get. There are millions and millions of check outs every day, and we reached every shopper - that was low cost communication. On the other hand, we saw an increase of backet size of customers who are both loyalty card and mobile users.\n\nWe do a lot of things like that - we allow subscribers use their loyalty points as call credit, we push certain products by giving more free minutes if they are in the basket.\n\nCarrefour Mobile is a true ninja is this sense - it is very difficult to copy those features, and it also brings a lot of value to the MNOs that host us - they gain access to Carrefour’s own captive customer base, which would be impossible otherwise.\n
  • Another interesting idea was launched by our customer in Poland. Free-M is an MVNO which targets Facebook generation. This is a very peculiar segment - their data needs by far exceed their voice and SMS needs, but data is too expensive for them. They use expensive smartphones with prepaid cards, and they don’t watch much TV.\n\nFree-M gave them a simple proposition - watch an ad on your mobile, get 1 megabyte of data to surf social networking sites. Behind the scenes is a nifty data charging solution. The product is distributed and promoted solely on Facebook, and thats also where the MVNOs website is.\n\nIt is too early to tell if social networks are a trend or a fad. It is also too early to tell if Freem-M will succeed. However though, it is a great example of innovative thinking MVNOs bring to mobile telecom industry.\n
  • Many MVNOs agree that distribution is the most difficult part of doing this business, and it is also the area where most MVNOs fail. \nThere are also companies which do nothing but distribution. FM Group is a very large multi-level marketing cosmetics company, running a business similar to Avon or Amway. They have more that 200 000 distributors, mostly women, who visit each other and sell perfume, lipstic and stuff to each other.\n\nAlthough FM Group had nothing to do with telecom, they figured that their distribution power could be very useful in telecom. And thus they launched FM Group Mobile, a postpaid proposition to their customers.\n\nIt was a very challenging project for us because we had to enable postpaid sales in living room environment through a smart phone app. Even more complex was their revenue share or commissioning model that had to be implmented - they distributed postpaid through their MLM pyramid, using the same underlying multi level marketing principle. Of course, they were successful - just having their agents switch to FM Group mobile they reached a substantial subscriber base. More importantly, they leveraged trust between the agents and their customers. \n\nThis is another example of MVNO innovation - I haven’t seen an MNO being able to deploy a member-get-member program on such a massive scale.\n\n\n
  • MVNOs are penny pinchers, and they want to spend every last dollar on marketing and distribution, not technology and operations. As an MVNO, we understood very early that efficient technology is very important to profitability. By efficient we meant centralized first of all. We run 9 MVNOs from one platform in Brussels, with one team of engineers. When a subscriber in Taiwan is making a call, it is our platform in brussels which does call control and rates and charges the call in real time. We even generate postpaid invoices for Taiwan in Belgium. Such centralized approach allowed us to share opex and capex between all MVNOs, and achieve an extremely low cost of enablement per subscriber.\n\nMoreover, it was important to ensure the platform does what we need it to do - fast time to market, unlimited billing and rating options, and ability to integrate with various 3rd party telecom and non-telecom systems. Thats why we chose a carrier grade IN platform from Amdocs which enabled us to do all this.\n\n \n
  • \n
  • \n
  • \n
  • \n
  • Ninja Mvno

    1. 1. TEENAGE MUTANT NINJA TELECOMSTEENAGE MUTANT NINJA TELECOMS
    2. 2. MVNOs MOBILE VIRTUAL NETWORK OPERATORS MOST ARE YOUNGERTEENAGE THAN 5 YEARS MOST HAVE SOMEMUTANT NON-TELECOM GENES MOVE FASTER AND SMARTER NINJA THAN LARGE OPERATORS TEENAGE MUTANT NINJA TELECOMS
    3. 3. TEENAGEMOST MVNOs ARE MOST LACK CASH STARTUPS AND RESOURCES WE FIGHT DIRTY AND WE CUT CORNERS OUR SAC* IS 4 TIMES LOWER THAN THE MARKET AVERAGE TEENAGE MUTANT NINJA *SUBSCRIBER ACQUISITION COST TELECOMS
    4. 4. MLM MUSIC PYRAMIDSALIEN TELEVISIONS GROUPONS RETAILERSGENES SOCIAL NETWORKS MUTANTENERGY BANKS AUTOMOTIVEDRINKS AIRLINES ETHNICAL INSURANCE ISPs COMMUNITIES TEENAGE MUTANT NINJA CHURCHES TELECOMS
    5. 5. YEARS OF TRAINING SIMPLE BUT SHARP AT BEST MOBILE OPERATORS PRODUCTS AND MARKETING PERFECT VISION INNOVATION CHAMPIONS HIGH TECH TYPICAL JA LOW COST N MVNO ITRAINED SPRINTER N TIME TO MARKET OF WEEKS ON A RAINY DAY SHOESTRING BUDGET UNIQUE TRAITS EXCEL NOT POWERPOINT MASTER OF DIFFERENTIATION TEENAGE MUTANT NINJA TELECOMS
    6. 6. S O M RO N T P SPEND €50 IN CARREFOUR TA UM GET 5 FREE MINUTES 1 FREE MINUTE FOR EVERY €10 SPENT COUNTRY: BELGIUM, ITALY, POLAND, TAIWAN DISTRIBUTION: NETWORK: KPN, VODAFONE, PLUS, CHUNGHWA EMPLOYEES: 40 (IN TOTAL, ALL COUNTRIES) SUBS: 1 MILLION + ARPU: €15 CO-OWNER AND ENABLER: EFFORTEL TEENAGE MUTANT NINJA TELECOMS
    7. 7. CTS U D P RO JAN IN WATCH 1 AD ON YOUR PHONE GET 1 MB TO SURF FACEBOOK* COUNTRY: POLAND DISTRIBUTION: NETWORK: POLKOMTEL EMPLOYEES: 4 SUBS: 50K + ENABLER: EFFORTEL TEENAGE MUTANT NINJA *ALSO TWITTER, FOURSQUARE, OTHERS TELECOMS
    8. 8. N ANNA T IO U ANNA CONNECTS 3 FRIENDS R IB I ST 3 FRIENDS CONNECT 6 D SIX CONNECT 10 JA FRIEND FRIEND FRIEND IN ANNA GETS REVENUE SHARE FROMN 29 SUBSCRIBERS FRIEND FRIEND FRIEND FRIEND FRIEND FRIEND FRIEND FRIEND FRIEND FRIEND FRIEND FRIEND FRIEND FRIEND FRIEND FRIEND REVENUE SHARE COUNTRY: POLAND DISTRIBUTION: MULTI LEVEL MARKETING NETWORK: PLUS EMPLOYEES: 5 TEENAGE MUTANT NINJA ENABLER: EFFORTEL TELECOMS
    9. 9. 10 VIRTUAL OPERATORS EFFORTEL TECHNOLOGY5 COUNTRIES26 ENGINEERS POLAND 3 MVNOS1 PLATFORM K AL LIN PTIC1 MILLION SUBS O 15 00 K M INK TAIWAN E OPTICAL L EXPENSIV 1 MVNO 9800 KM NINJA BELGIUMIN PLATFORM 1 MVNO 80 OP 0K VERY TIC E AL M X P EN SIVE O LIN PTICA K L LIN 5500 K ITALY KM OMAN 4 MVNOS 1 MVNO TEENAGE MUTANT NINJA TELECOMS
    10. 10. MANY NINJAS DIE :( TEENAGE MUTANT NINJA TELECOMS
    11. 11. TO SURVIVE NINJA NEEDSMINIMUM $4 ARPUMINIMUM 500 K SUBSCRIBERSMINIMUM 45% AIRTIME MARGINMAXIMUM $8 SACMAXIMUM 15 EMPLOYEESMAYBE 15% EBITDA MARGIN TEENAGE MUTANT NINJA TELECOMS
    12. 12. EFFORTEL CAN RUN YOUR NINJA NO CAPEX SETUP AND OPERATIONSSUPERFAST TIME TO MARKET LOWEST POSSIBLE COST PER SUBMASSIVE PRACTICAL EXPERIENCE TEENAGE MUTANT NINJA TELECOMS
    13. 13. THANK YOULIUDVIKAS ANDRIULIS, CMO, EFFORTEL TEENAGE MUTANT NINJA LAN@EFFORTEL.COM TELECOMS

    Γ—