1. The Business Model
The first core strategic decision is selecting the appropriate business model:
1) the pure reseller model
2) the pure MVNO model
3) hybrid models
The business model selection process is guided by four criteria: offer differentiation and control, scale, funding, and capabilities.
2. The Entry Strategy
An appealing value proposition to a unique target segment of customers is the centerpiece of an MVNO’s strategy.
The MVNOs that excel find a specific niche segment that is either underpenetrated or underserved.
When considering the value proposition of a wireless offer, an MVNO should perceive the offer’s financial, functional, and emotional appeal from the customer’s point of view.
The customer-facing elements that together make up a wireless offer and customer experience should each serve to differentiate the MVNO from market incumbents. They also must be coherent with each other, be coherent with their segment’s needs and spending disposition, and combine to produce the desired value proposition.
3. The Business Plan
The initial detailed business plan emerges once the offer strategy has been defined. The business plan is finally refined with detailing of the operating model.
A Strategic and Structured Approach to Launching an MVNO (1/4)
Based on my experience in launching Jazztel mobile operations (launch, enablement partner and network host), I suggest that MVNOs should follow a structured approach that can minimize the risks of a wireless launch.
The Mobile Virtual Network Operator (MVNO) model enables non-wireless companies to enter the wireless business with a differentiated and targeted offer.
Non-wireless companies can reap the attractive of both strategic and financial benefits of a mobile business from wireless.
The Mobile Virtual Network Operator (MVNO) model enables non-wireless companies to enter the wireless business with a differentiated and targeted offer.
Non-wireless companies can reap the attractive of both strategic and financial benefits of a mobile business from wireless.
Mobile Payments Market Opportunities and Business Models
I have managed some m-payments initiatives (i.e. Vodafone in 2003 and 2004).
Mobile payments (m-payments) are defined as any payment transactions, whether in-store or remote, executed on mobile devices.
1. Potential Drivers for Market Adoption of Mobile Payments
Mobile operators are under pressure to continue looking for new revenue sources to counteract voice pricing decline and subscriber growth saturation. The m-payment market also presents them with an opportunity to further expand non-voice revenues.
Furthermore, financial institutions, facing declining revenue growth from traditional credit cards, are also looking at cashdominated micro-payments (i.e. transactions less than €5 - €10) to generate new revenue streams.
On the demand side, the growing ubiquity of mobile phones and their increasing multifunctionality make mobile phones a compelling candidate for replacing a physical wallet.
In addition, consumers are increasingly comfortable in using their mobile phones for applications other than voice.
2. Segmentation of the Mobile Payment Market
The market can be segmented into 4 quadrants: in-store vs. remote and micro vs. macro transactions, where a micro transaction is defined as less than €5 - €10.
Mobile phones possess key value propositions that make m-payments ideal for these segments. For in-store segments, the value proposition is the convenience and speed of contactless payments. For remote segments, the value proposition is the inherent connectivity, ubiquity, and near real-time verification capability of mobile devices (via SMS, WAP, or IVR).
3. M-Payment value chain
Traditional payments typically involve a merchant, acquirer, issuer, and a consumer. The roles of merchants and consumers are obvious. Acquirers are responsible for acquiring merchants and enabling merchants to process payments. Issuers are responsible for issuing payment devices to consumers and processing the transfer of funds from consumer accounts to merchants. In the case of credit and debit cards and other electronic forms of payment, a payment network provider, such as Visa or MasterCard, resides between acquirers and issuers to facilitate the transfer of information and funds. Payment network providers are also responsible for expanding their merchant networks and user membership to ensure wide acceptance and drive revenue growth.
Mobile payments (m-payments) are defined as any payment transactions, whether in-store or remote, executed on mobile devices.
1. Potential Drivers for Market Adoption of Mobile Payments
Mobile operators are under pressure to continue looking for new revenue sources to counteract voice pricing decline and subscriber growth saturation. The m-payment market also presents them with an opportunity to further expand non-voice revenues.
Furthermore, financial institutions, facing declining revenue growth from traditional credit cards, are also looking at cashdominated micro-payments (i.e. transactions less than €5 - €10) to generate new revenue streams.
On the demand side, the growing ubiquity of mobile phones and their increasing multifunctionality make mobile phones a compelling candidate for replacing a physical wallet.
In addition, consumers are increasingly comfortable in using their mobile phones for applications other than voice.
2. Segmentation of the Mobile Payment Market
The market can be segmented into 4 quadrants: in-store vs. remote and micro vs. macro transactions, where a micro transaction is defined as less than €5 - €10.
Mobile phones possess key value propositions that make m-payments ideal for these segments. For in-store segments, the value proposition is the convenience and speed of contactless payments. For remote segments, the value proposition is the inherent connectivity, ubiquity, and near real-time verification capability of mobile devices (via SMS, WAP, or IVR).
3. M-Payment value chain
Traditional payments typically involve a merchant, acquirer, issuer, and a consumer. The roles of merchants and consumers are obvious. Acquirers are responsible for acquiring merchants and enabling merchants to process payments. Issuers are responsible for issuing payment devices to consumers and processing the transfer of funds from consumer accounts to merchants. In the case of credit and debit cards and other electronic forms of payment, a payment network provider, such as Visa or MasterCard, resides between acquirers and issuers to facilitate the transfer of information and funds. Payment network providers are also responsible for expanding their merchant networks and user membership to ensure wide acceptance and drive revenue growth.
Spanish mobile handsets market in Summer 2008
23 MM handsets were sold in Spain in 2007 compared with 21 MM in 2006 and 20,7 MM in 2005. This represents an increase of 9,5% and 1,2%.
However, handsets sold in Spain from January to June 2008 have decreased 10% (around 1 MM handsets less than the same period in 2007). Crisis is also affecting the handsets market. It´s said that during the first 6 months of the year, it is sold around 45% of the total sold handsets in the year.
41% of the 23 MM handsets sold in 2007 were 3G (9,7 MM) compared with 18,5% in 2006 (4 MM). This represents an increase of 140%.
With this figures, 50% of mobile customers renewed the handset in 2007 and around 100% between 2006 and 2007.
These points mean that although there is almost a 106% penetration on mobile lines in Spain, handsets increased their sales in 2007 due mainly to the handsets upgrade and renovation to 3G handsets.
88% of the 23 MM handsets were subsided and sold through the main mobile operators and 12% were sold through independent channels (mainly specialist shops and big stores). However, the free market decreased the number of handsets sold mainly due to the crisis whereas the subsidied market increased the number of handsets sold due to the marketing campaigns and subsidies from the mobile operators. This is also a reason for the 9,5% increase in 2007 (incumbents need to compete with new entrants).
Market share in units Nokia, keeps leading the market in Spain, followed by Samsung, which has taken a quantum leap. The third one is Sony-Ericsson and the fourth is LG, which has significantly improved its position. Finally, Motorola continues noting that the crisis has led him to lose second place in Spain and the world (Motorola held more than 20% of Spanish mobile market in 2006).
Market share in € Regarding the revenues, Nokia sells phones with higher average value
However, handsets sold in Spain from January to June 2008 have decreased 10% (around 1 MM handsets less than the same period in 2007). Crisis is also affecting the handsets market. It´s said that during the first 6 months of the year, it is sold around 45% of the total sold handsets in the year.
41% of the 23 MM handsets sold in 2007 were 3G (9,7 MM) compared with 18,5% in 2006 (4 MM). This represents an increase of 140%.
With this figures, 50% of mobile customers renewed the handset in 2007 and around 100% between 2006 and 2007.
These points mean that although there is almost a 106% penetration on mobile lines in Spain, handsets increased their sales in 2007 due mainly to the handsets upgrade and renovation to 3G handsets.
88% of the 23 MM handsets were subsided and sold through the main mobile operators and 12% were sold through independent channels (mainly specialist shops and big stores). However, the free market decreased the number of handsets sold mainly due to the crisis whereas the subsidied market increased the number of handsets sold due to the marketing campaigns and subsidies from the mobile operators. This is also a reason for the 9,5% increase in 2007 (incumbents need to compete with new entrants).
Market share in units Nokia, keeps leading the market in Spain, followed by Samsung, which has taken a quantum leap. The third one is Sony-Ericsson and the fourth is LG, which has significantly improved its position. Finally, Motorola continues noting that the crisis has led him to lose second place in Spain and the world (Motorola held more than 20% of Spanish mobile market in 2006).
Market share in € Regarding the revenues, Nokia sells phones with higher average value
Jazztel lanza la primera fase beta del servicio Internet móvil, disponible para sus clientes de ADSL 20 Mb Y JAZZTELIA TV
 El pasado 06/05/2008 hicimos público a través de nota de prensa que se trata de un servicio gratuito, en fase beta, y se ofrece en exclusiva a sus clientes de ADSL hasta 20 Megas más llamadas con Línea JAZZTEL o Clientes de ADSL Jazztelia TV más llamadas con Línea JAZZTEL | ||
Jazztel lanza sus primeros servicios en movilidad, Jazztel Internet Móvil, una nueva solución que permite disfrutar en el ordenador de conexión a Internet de alta velocidad en cualquier momento, desde cualquier lugar y con total comodidad gracias al módem USB autoinstalable con velocidad de descarga de hasta 3,6 Mbps. 
Para acceder a Internet con el servicio Jazztel Internet Móvil se deberá insertar el módem USB con la tarjeta SIM de Jazztel y el software se instalará automáticamente. El software permitirá al usuario acceder a Internet de forma rápida y muy sencilla desde su ordenador con sólo pulsar un botón. La navegación será de hasta 1 GB de descarga mensual. Superado el GB, se limitará la velocidad a 128 Kbps y se permitirá la navegación. La SIM recibida no permitirá el envío de SMS ni las llamadas de voz. Jazztel quiere hacer su fase beta de Jazztel Internet Móvil con sus clientes de acceso a Internet más expertos (ADSL 20 Mb y Jazztelia TV) y que además participan en los foros de los portales más reputados del sector, como son www.bandaancha.st, www.adslzone.net y www.adslnet.es, donde debe conseguir su código de invitado. Jazztel confía en que las sugerencias de los expertos participantes en esta primera fase, previa al lanzamiento comercial, aportarán el máximo nivel de calidad al servicio, condición indispensable para la comercialización de cualquier lanzamiento de la compañía de forma masiva. El cliente podrá disfrutar del servicio Jazztel Internet Móvil en fase de prueba hasta el 30 de septiembre de este año. Una vez finalizado este periodo, podrá migrar a los productos del catálogo de Jazztel Internet Móvil. Asimismo, el cliente podrá darse de baja de este piloto de pruebas cuando lo desee sin penalización de ningún tipo. Durante el periodo de prueba de Jazztel Internet Móvil el servicio será totalmente gratuito y el módem, en caso de que el cliente lo solicite, estará en modo de cesión de uso a un precio de 9,95 euros al mes, no cobrándose gastos de envío. El módem USB es un nuevo dispositivo de conexión a Internet que es compatibles con todos los ordenadores personales, tanto fijos como portátiles facilita un acceso en banda ancha móvil, al utilizar tecnología 3,5 G Plus (HSPA), que permite llegar a un máximo de 7,2 Mbps y hasta un máximo de 2 Mbps de subida, y es autoinstalable. En caso de que el usuario nos disponga de cobertura de alta velocidad, el dispositivo permitirá, de forma automática, la navegación aprovechando otras tecnologías, como son 3 G (UMTS), GPRS o GSM. | ||
Jazztel tendrá un modelo de negocio de OMV Completo y firma con KPN la externalización de las plataformas con las que ofrecerá sus servicios móviles
| El 3 de marzo de 2008 hicimos público a través de nota de prensa que Jazztel utilizará las plataformas de KPN para ofrecer sus servicios de voz, de sms, de mensajería multimedia, datos y navegación por Internet. | ||
Jazztel y KPN España han firmado un contrato por el que la primera utilizará las plataformas de la compañía holandesa para dar servicios de telefonía móvil virtual. En virtud de este contrato, KPN prestará a Jazztel, a través de la infraestructura de sus plataformas operativas, servicios de voz, de sms, de mensajería multimedia, de roaming, de datos y de navegación por Internet, así como servicios de soporte, como son el servicio de facturación en tiempo real y la gestión sobre la portabilidad. Operador móvil virtual completo
permite a Jazztel maximizar el aprovechamiento tanto de su infraestructura de red como de sus procesos operativos y de negocio. Jazztel se ha unido a los principales players en entornos de movilidad como son KPN y Orange, para ofrecer a sus clientes una oferta se servicios completa. La capacidad de Jazztel de lanzar sus servicios sobre infraestructura propia, permiten a la compañía tener una mayor independencia y la posibilidad de diferenciación de sus productos, definiendo su propio catálogo de servicios móviles. La compañía se convierte por tanto, en operador global de telecomunicaciones, con una oferta integral que incluirá servicios fijos y móviles de voz, Internet y televisión, lo que se denomina cuádruple play. Como ya comunicó en su día, Jazztel dispondrá de sus propios rangos de numeración, que comienzan por 6400 y 6401. Jazztel apuesta así por estrategias de ofertas combinadas de servicios fijos y móviles de voz, televisión y datos con un solo contrato, una sola factura y un punto común de servicio y gestión al cliente.
“Jazztel es nuestro primer cliente full OMV en España al que le vamos a ceder nuestra plataforma. Contamos con la experiencia de externalización en otros países y confiamos en que será un proyecto de éxito”, dijo Jochen Doppelhammer, CEO de KPN España. | ||
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