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Smartphone Strategies: How Devices Can Revitalize the Role of Operators in the Mobile Ecosystem

Published By :

Pyramid Research

Published Date : Oct 2013

Category :

Telecommunications

No. of Pages : 119 Pages

Product Synopsis
Revolution has been sweeping the mobile telecom world for years by the rise of a new ruler - the smartphone. In this report, Pyramid Research presents strategies for mobile operators to use in response to the challenges brought by the new situation. It examines strategies such as device portfolios, smartphone distribution, subsidies, buy-backs, trade-ins, reverse subsidies, own-branded devices, handset financing, data-sharing, tablets, OTT services. This report examines the device strategies of five mobile operators in depth: ATandT, MTS, Telefnica, China Unicom and Orange.

Introduction and Landscape
Revolution has been sweeping the mobile telecom world for the past few years. Despite being characterized by fast-paced change from its infancy, the industry has been shaken to its foundations by the rise of a new ruler: the smartphone. Under its reign, traffic has moved from voice to data, and power has shifted from the mobile operators to application developers, OTT service providers and most of all the leading OS providers. In the report Smartphone Strategies: How Devices Can Revitalize the Role of Operators in the Mobile Ecosystem, Pyramid Research presents strategies for mobile operators to use in response to the challenges brought by the new situation. The report shows how a mobile operator can use its device strategy to reposition its business in order to both defend itself against damage from the smartphone revolution and to make the most of the many opportunities the revolution has ushered in. It examines strategies such as device portfolios, smartphone distribution, subsidies, buy-backs, trade-ins, reverse subsidies, own-branded devices, handset financing, data-sharing, tablets, OTT services. This report examines the device strategies of five mobile operators in depth. In terms of their business environment and device strategy, each of the five has specific experience that we believe provides valuable insights from which providers from around the globe can learn when drawing up their own strategies: ATandT, MTS, Telefnica, China Unicom and Orange.
Table of contents 3
Table of exhibits 5
Executive summary 7
Section 1: Introduction 10
1.1 Business context: In the land of the smartphone revolution 10
Smartphones are rapidly turning the mobile industry software-centric, with the rise of app stores having adverse effects on mobile operators' business 12
Power and revenue shifts prompt mobile operators to take action 14
1.2 Report objective, structure and definitions 16
Definitions 16
Section 2: Device strategies - key to reinventing mobile operators in an industry transfigured by smartphones 18
2.1 How the rise of OS ecosystems changed mobile operators' position in the industry and what they can rely on to fight back 18
Despite the changes, mobile operators still have strengths they can draw on to reinvent their device strategies and regain lost market relevance 23
2.2 Device strategies: realigning mobile operators' business and redefining their role in the disrupted mobile industry 28
Distribution strategy: mobile operators' role in device retail 28
An experiential sales approach is vital to deepening operators' involvement in device retail and contributes to smartphone penetration growth 31
Smartphones are leading many emerging-market operators to increase their involvement in handset distribution and expand their retail chains 32
Using device partnerships can help mobile operators influence the existing OS ecosystem duopoly that comfortably rules the industry. 33
Profit pressures stemming from smartphone subsidies suggest that mobile operators should consider alternative business models 34
Telef

List of Table

Table of exhibits
Exhibit 1: Smartphone share of total handset sales - global and by region 11
Exhibit 2: Data as a share of total mobile ARPS, globally and by region 12
Exhibit 3: Comparison of EBITDA evolution among selected global mobile operators and Apple 15
Exhibit 4: Central role of mobile operators in pre-iPhone mobile services value chain 19
Exhibit 5: Partial marginalization of mobile operators in today's post-iPhone mobile services value chain 20
Exhibit 6: iOS and Android devices and app stores 21
Exhibit 7: SWOT analysis of mobile operator device strategies in developed markets 24
Exhibit 8: SWOT analysis of mobile operator device strategies in emerging markets 25
Exhibit 9: High-involvement and low-involvement distribution strategies and their pros and cons 30
Exhibit 10: Mobile churn levels in developed and emerging markets, 2012 31
Exhibit 11: Vodafone India store revamped under 'Retail of Tomorrow' initiative 32
Exhibit 12: Windows Demo Zones in MTS retail shops, promoting experimentation with devices 33
Exhibit 13: Evolution of average handset and smartphone prices globally, 2008-2012 35
Exhibit 14: Vodafone Red offerings allowing greater customization - UK 37
Exhibit 15: Aircel iPhone 4 reverse subsidies offered in May 2011 40
Exhibit 16: Vodafone UK handset lease 'Red Hot' offering - August 2013 42
Exhibit 17: Samsung Galaxy S4 trade-in discounts and financing in India 43
Exhibit 18: Example of ODMs working with mobile operators 44
Exhibit 19: Comparison of Vodafone own-brand smartphones with similar branded devices in the UK 45
Exhibit 20: T-Mobile Germany mobile video service, including access to football TV channels and exclusive content 47
Exhibit 21: Amazon Kindle Fire HD and promotional price comparison 48
Exhibit 22: Verizon Wireless Share Everything data sharing plans, offering a common data allowance and unlimited voice and texting across devices 50
Exhibit 23: Firefox OS, Mozilla's new mobile OS 51
Exhibit 24: Telef

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