Shared Data:
More Devices, More
Data, More Revenue
20142013
More Devices, More Data, More Revenue
Page 2
Delivering a Win for Customers and Operators
Shared data is a succes...
Tablets Driving Data Additions
Page 3
Using Shared Data Plans to Drive Cellular Tablet Sales
In 2013 there were 195.4 mill...
AT&T
AT&T’s plans cover up to 10 devices per Mobile Share Plan and range
from 300MB to 50GB of data to share. Plans includ...
Page 5
Sprint
Sprint’s Framily (friends and family) group share scheme uses a social
approach to creating a group to join ...
Page 6
AT&T Q1 2014
AT&T has seen the number of customers on its Mobile Share plans
almost triple in the past year to 11.3...
Traditional Data Shared Data
Driving Increased Usage and Data Spend
Global marketing services firm, J.D. Power and Associa...
Page 8
While operator results to date have showed that shared data can
increase revenues and customer satisfaction, in ord...
On Device Plan Management: Customers should be able to manage
their own share plans direct from the device. This starts wi...
Openet and Shared Data
The video below shows a customer using advanced data share options.
These include a customer managi...
Page 11
Since the introduction of mobile data services in 1998, Openet has
helped service providers capitalize on opportun...
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Openet guide shared_data_2014_may27

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Openet guide shared_data_2014_may27

  1. 1. Shared Data: More Devices, More Data, More Revenue
  2. 2. 20142013 More Devices, More Data, More Revenue Page 2 Delivering a Win for Customers and Operators Shared data is a success story for mobile operators. In today’s multi- device ownership market having a pool of data that different customers, with many mobile devices, can share is proving a win-win for operators and customers. Operators are seeing more devices using more data on their networks, and delivering increased value for customers. Multi-device shared data plans are responsible for increasing revenue and usage, and operators are rolling out new plans on a regular basis that help customers realize the economic and social benefits of sharing data. A look at the Q1 2014 results of some of the main innovators of shared data underlines the benefits that operators are realizing. AT&T has seen the number of customers on its Mobile Share plans almost triple in the past year and Verizon has increased revenue per account by 6.26%. There is a wide range of applications of shared data. These include multi device plans, family plans, group plans and business plans. Increasingly we’re seeing two basic building blocks of success for shared plans. First is giving the customer control in setting the plan and second is real-time balance management. With many different users and devices using the same data pool, it’s vital that balances are managed in real-time, and that customers are fully in control of their usage and have real-time visibility of their charges. SHARED DATA PERFORMANCE AT THE BIGGEST TWO OPERATORS IN USA ARPA Growth* Mobile Share Account Growth Data Plan Growth Source: AT&T Q1 2014 & Q1 2013 Financial Results - Verizon Q1 2014 Results $159.67$150.27 50% 30 Million Share Accounts 10 Million Share Accounts Q1Q1 25% 46%on 10GB+ Plans on 10GB+ Plans 2014Q12013Q1 30% % of Retail Post Paid Accounts on More Everything Plans Figure 1: AT&T and Verizon Shared Data Plan Performance Mobile Share Account Growth * Retail Post Paid ARPA
  3. 3. Tablets Driving Data Additions Page 3 Using Shared Data Plans to Drive Cellular Tablet Sales In 2013 there were 195.4 million tablets sold worldwide, representing a 68% increase on 2012. Gartner* attributes this trend to a boom in first time buyers tempted into the space by low cost Android tablets. For 91% of the business market the iPad is the tablet of choice. Both consumer and business tablet sales represent an opportunity for mobile operators. In the US there were about 60 million tablets sold in 2013. The good news for mobile operators is that around 10.4 million of these tablets are using an embedded cellular connection. This represents a 46% increase from 7.1 million in 2012. When it comes to cellular data used by tablets, the average is around 1 GB per month, which is about half of the average monthly smartphone data use of around 2GB per month **. This highlights a couple of points. Firstly, existing cellular tablet users are using tablets as a secondary mobile device and as such customer usage behaviour may differ from smartphone usage. There is an opportunity to analyze tablet usage and develop offers to drive up tablet data usage. Secondly, the vast majority of tablet users are using wi-fi only tablets, and it’s a fair assumption to make that many of these users have smartphones and existing mobile contracts. This represents a significant opportunity for mobile operators to help customers to upgrade to tablets with cellular connectivity and get customers using them as part of a shared data plan. In April 2014, T-Mobile in the US announced a drive to sell more cellular tablets. Operation Tablet Freedom offers tablets with LTE cellular connectivity at the same prices as Wi-Fi only tablets, trade-ins on Wi-Fi tablets and free LTE data. *Gartner report “Market Share: Ultramobiles by Region, OS and Form Factor, 4Q13 and 2013.” ** NPD’s Connected Intelligence Mobile Connectivity Report, Feb 2014 Add a tablet to your voice plan and get FREE data through the end of the year That’s right, get up to 1GB + 200MB 4G LTE data per month-FREE AVAILABLE NOW Figure 2: T-Mobile US Tablet Promotion
  4. 4. AT&T AT&T’s plans cover up to 10 devices per Mobile Share Plan and range from 300MB to 50GB of data to share. Plans included unlimited voice and SMS, and AT&T also offers 50GB of free cloud storage with AT&T Locker™, which is marketed as a secure and safe place for customers to store their photos. When it comes to devices to add as well as smartphones, gaming devices, tablets and so on, it’s been reported in the telecoms press* that in the summer AT&T will enable customers to add their cars as a device in a share plan. This is part of the AT&T’s connected car program with Audi. *Fierce Wireless March 11 2014 Verizon Starting at 250MB for $20 Verizon recently re-named their plans from Share Everything to More Everything, which suggests that they want to offer more to share rather than a bucket of data. As part of this Verizon is providing their Family Base service, which is free for the first three months. This is parental control software that allows parents to set time and usage restrictions, as well as view their kids’ contact lists and remotely lock down their kids’ devices. EE UK operator EE promotes flexibility in their 4GEE share plans, by enabling customers to add people to their plans at any time they want. The message is that if a friend (potential share plan member) is in the middle of a contract (presumably with a competitor) then the customer can add them when that contract finishes. This is a good example of using share plans to attract new customers. Page 4 Operator Examples of Shared Data Plans Figure 4: Verizon More Everything Advertising Figure 3: AT&T Mobile Share Advertising Figure 5: EE Share Plan Advertising
  5. 5. Page 5 Sprint Sprint’s Framily (friends and family) group share scheme uses a social approach to creating a group to join a data share scheme. The marketing of Framily encourages existing customers to add more members (up to 10 phone numbers per group) by promoting cost reductions—for each new Sprint customer joining a Framily group, the cost per person will drop $5 a month. Sprint see Framily as an “innovation platform”. By marketing other services to Framily members there is the opportunity to make the plans very sticky, as more services being used by more Framily members delivers increased benefits for the group. Orange Slovakia Offering multi-SIM data share bundles gives Orange Slovakia an extra marketing edge. They offer multi device plans, small business share plans and group / family share plans. The marketing of these plans highlights providing value and flexibility. Telstra In Australia, Telstra’s Mobile Accelerate Data Share Plans are marketed “to help you get more from your data allowance”. Telstra promote single billing for all data devices and real-time usage tracking and management and alters to ensure customers keep control of data usage across all devices. Bell Canada One of the pioneers of shared data plans, Bell offers ‘Family Shareable’ and ‘Personal Shareable’ options. Customers can connect up to 10 devices or family members to the share plan, and also offer Mobile TV as a plan add on. Operator Examples of Shared Data Plans Figure 6: Sprint Framily Advertising Figure 7: Orange Slovakia Share Plan Figure 8: Bell Canada Plans Include Mobile TV
  6. 6. Page 6 AT&T Q1 2014 AT&T has seen the number of customers on its Mobile Share plans almost triple in the past year to 11.3 million accounts with nearly 33 million connections (about 45 percent of postpaid subscribers) with an average of about three devices per account. This is up from 21 million connections (about 29% of AT&T’s postpaid base) at the end of Q4 2013. In addition the take up rates of its 10GB+ plans grew from 27% of its Mobile Share base at the end of the Q4 2013 to 46% in Q1 2014. Verizon Q1 2014 Shared data plans continue to perform well for Verizon. By changing their main reporting metric from ARPU (average revenue per user) to ARPA (average revenue per account) Verizon put shared data plans center stage. In the past year (to Q1 2014) Verizon have seen total retail connections jump by 4.45%, ARPA increase by 6.26%, and the average number of devices per account increase by 3.75%. Verizon now has half of its postpaid accounts on More Everything plans. Shared Data Driving Operators Financial Results Figure 9: Headlines from Forbes Figure 10: Headline from PCC Mobile Broadband
  7. 7. Traditional Data Shared Data Driving Increased Usage and Data Spend Global marketing services firm, J.D. Power and Associates’ half yearly report on customer services in the US operator market has found that customers on mobile share plans have higher customer satisfaction scores than those on traditional plans. Results from their 2013 U.S. Wireless Customer Care Full-Service Performance Study* J.D. Power found that the satisfaction score for share data plan customers is 778 out of 1,000, compared with a score of 750 for customers who subscribe to traditional data plans. According to senior director of wireless services at J.D. Power, “The higher levels of satisfaction with shared data plans are partially due to the profile of its customers, particularly the early adopters who changed service offerings once the mobile data share plans were offered……….For example, not only are customers with shared data plans more loyal than those without a shared data plan, but they also have a more positive perception of their carrier, in addition to spending approximately $30 more per household overall”. As more C level mobile executives are seeing NPS (net promoter score) and customer satisfaction index scores become part of their regular KPIs the ability of shared data plans to influence customer satisfaction and NPS is worth consideration. *Source: J.D. Power and Associates 2013 U.S. Wireless Customer Care Full-Service Performance Study™ Improved Customer Satisfaction Page 7 CUSTOMER SATISFACTION Source: J.D. Power & Associates 2013 U.S. Wireless Customer Care Full-Service Performance Study 1000 point satisfaction scale Figure 11: Data Plan Customer Satisfaction Scores Scores are higher for customers on shared data plans than those on traditional data plans
  8. 8. Page 8 While operator results to date have showed that shared data can increase revenues and customer satisfaction, in order to work correctly and deliver the desired results there are some basic building blocks that shared data plans need to incorporate. These include: Real-Time Usage Tracking and Balance Management: Being able to manage a data share pool and implement value adds such as parental controls needs real-time usage data. The trend towards offering lower entry data allowances (e.g. 250MB) and upselling additional data ‘blocks’ needs to be managed in real-time. Likewise, it isn’t effective to apply a spend limit on a kid’s mobile if the data is being processed by a batch billing system. Shared data quotas and balances need to be managed in real-time. Operators also need to be able to enable quotas to be provisioned and expire on any date / time in the future. This allows total flexibility regarding the duration of the allowance that can be offered by the operator. As can be seen in Figure 12, which shows a customer purchasing a data share offer, real-time data is needed to ensure that the balance is up to date when a customer is sharing or gifting data. Shared Allowance Profile Management: As there is a single allowance which can be shared between several users, operators will need to ensure that their subscriber profiles reflect this, and shared data groups and any member hierarchies are represented. The key thing to note is that there should not need to be any pre-existing relationships in the system between these subscribers so the operator enables completely ad-hoc sharing and gifting. This can have significant impact in increasing stickiness of prepaid subscribers. Key Building Blocks of Shared Data Plans Smartphone app to make sharing very easy, just click the share button! Phonebook integration to easily share data with all contacts on your network. Figure 12: Sharing Data App Figure 13: Phonebook Integration
  9. 9. On Device Plan Management: Customers should be able to manage their own share plans direct from the device. This starts with spend/usage notification to avoid bill shock, and then extends to managing the balance across all devices and group members. As customers become more familiar with data share schemes they should be able to add new members when they want, change allowances between devices and group members, gift data allowances as well as having group heads (e.g. mum in a family group) monitor, manage and control individual usage of group members. A new advance in sharing data is the ability to ‘gift’ data to friends. As can be seen in Figure 15, a customer has made a gift of 100MB of data, and this is reflected on their balance. Adding Controls: As many shared data offers will be sold as part of family or corporate plans the ability to add specific controls is required. For example, a family plan may have 6 devices (three smartphones, a PC and two tablets) belonging to different members of the family. The head of the family can impose parental controls (url controls for inappropriate content, usage and spend controls to ensure no one uses up all the monthly allowance by spending too much time watching videos). Likewise for corporate customers, the ability to enforce which content can be used in work hours, and data usage, for different users is important. Offer Management: The rules that set the controls and costs around sharing are centrally managed by an offer catalog. For example, a customer can share 1GB with a friend, it can only be used in a domestic environment and it will recur every month for 3 months. Notifications will be triggered at 80% utilization and offer catalog will also define the packages that should be presented to the subscriber should they consume all of their shared allowance before the next billing cycle. Note that this is a futher benefit of shared data in that it will increase overall data usage and by proxy, increase the number of upsell opportunities. Page 9 Key Building Blocks of Shared Data Plans Full visibility on sharing and controls to easily set limits or cancel sharing. Users can also give a ‘gift’of data Figure 14: Sharing Controls Figure 15: Gifting Data
  10. 10. Openet and Shared Data The video below shows a customer using advanced data share options. These include a customer managing data share controls direct on their device. The example shown shows a customer selecting subscribers and devices to share their data allowance with, as well as gifting a block of data to another customer and adding controls. Openet’s Shared Data offer is a use case of policy and charging control (PCC) that can be deployed in either policy or charging environments. The Openet offer consists of four components, Interaction Gateway, Offer Catalog, Balance Manager and Profile Manager. The sharing tariffs (including eligibility, sharing rules and the priority for balance consumption) are configured in the Offer Catalog, and Balance Manager maintains all the balances in real-time. In order to enable direct customer control, the Interaction Gateway provides a secure gateway for user controls via a smartphone self-care app where subscribers can control sharing, view balances and alter allowances between devices/subscribers. Shared Data – Giving the Customer Control Page 10 Figure 17: Openet’s Shared Data Offer Figure 16: Video of Advanced Shared Data Shared Data DemoShared Data DemoShared Data Demo To learn more visit: www.openet.com/shared-data
  11. 11. Page 11 Since the introduction of mobile data services in 1998, Openet has helped service providers capitalize on opportunities and overcome challenges. With competitive pressure accelerating, today’s service providers rely on Openet software to evolve business models around networking smartphones, M2M devices, and third party services. Openet’s portfolio combines policy and charging control with device and third party interaction to enable innovative charging models, to control operating cost, and to personalize services. More than 80 of the world’s largest service providers in 30 countries use Openet’s high performance software. For more information, please visit www.openet.com About Openet Figure 18: Openet Fusionworks: A Flexible Platform for Business Agility

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