Mobile Broadband Services Today, And

Tomorrow

Presented by: Emma Mohr-McClune

Date: September, 2010

Washington DC / Paris
Current Analysis – Who We Are

At the event today

Established since 1997
We work with over 200 Operators and
Equipment Vendors globally

Current Compete: With this service we help
companies differentiate and win against
competition with continuous, in-depth, real-
time, tactical competitive intelligence, analysis Emma Mohr-McClune
Research Director, Consumer Services
and advice. Europe

A world-wide team of expert analysts

New services include;

Global Network Tracker

Telecom Equipment Buyer
– Designed for CTO and Procurement Teams
– Side-By-Side vendor and solution Ted Howard-Jones
Business Development Manager
comparisons

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How are MBB services shaping up?

17 European markets

60 network operators

570 consumer services

480 small business services

24,000 metrics

Updated quarterly

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Let’s dispel some myths/

Unlimited data provision is on the way out

Far from dead, ‘unlimited services’ are on the increase

Most prevalent in Europe’s most mature, progressive MBB markets,
including early LTE markets

MBB land-grab over: Pricing stabilizing

Short-term promotion pressure continues

Tablet plans exacerbate1-month rolling contract trend

We’re ready for QoS

MBB marketing has barely evolved over last 9 months

Still access-driven

Operators failing to segment portfolios, small businesses woefully
under-provisioned
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MBB Unlimited Services, On The Rise

Highest penetration of Unlimited services in Europe’s most mature

MBB markets:
• Portugal, Austria, France, Switzerland, Sweden, Germany

140
62%
NONE
120

100

80

60
Number of MBB
40 30% Services
20
Number of operators
0 marketing 'unlimited'
Q3 2009 Q4 2009 Q1 2010 Q2 2010 propositions
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Has the industry misunderstood the desire for ‘unlimited’ plans?

Never Pay More

Spend Cap Guarantee
Protection Against Bill Shock

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Postpaid pricing benchmarks fall in Q2

Price Trends on GB-specific postpaid Plans, Q4 2009 – Q2 2010

45
40
35
30
25
20
15 Q4 2009
10
5 Q1 2010
0 Q2 2010

• Most radical price dip in entry-level market over Q2 2010 period

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Biggest Trend in MBB: A New, ‘Non-Contract’ Proposition

1-month rolling contracts (other names out there)

Pre-date the iPad, but exacerbated in Q2

Q4 2 5
2009 markets products

Q1 5 18
2010 markets products

Q2 8 44
2010 markets products
50% iPad or
tablet plans

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Ready for QoS?

MBB Q2 2010 – Monitored over 1,000 services

Consumer

Small Business

No prioritisation on
any level
Off-peak discount

Faster downlink
premium service

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Treatment of applications

Blanket ban on ‘undesirable’ applications

Written into Ts and Cs of all plans, regardless of plan size
Largely toothless, theoretical threat

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Services for small businesses?

European operators failing to provide small

businesses with a differentiated proposition

Over 90% SB portfolios are consumer portfolio duplicates

Identical (consumer-centric) positioning/ marketing messages

>10% offer group tariffs or ‘bucket plans’

Precious little value-add or bundled differentiation in this market

Best practice markets? None

Best practice providers? 3Austria, Orange Poland, O2 Germany

= A chronically under-provisioned market

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What’s got to happen?

/ from NETWORK-centric to CUSTOMER-centric

marketing approach

Single speed Differentiated

shout speeds

Hard ceilings,
‘unlimited’ Differentiated
Priority, Time of
usage and Day
FUPs

Network as a Differentiated
app usage
key profiles, real-
differentiator time notification

© Current Analysis Inc. All rights reserved.

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Recommendations

Restrict no-contract propositions to entry level

Use ‘unlimited’ marketing tag judiciously

Seek leadership in the small business market

Move away from network-centric marketing

© Current Analysis Inc. All rights reserved.

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Thank You

For more information, please contactF

Emma Mohr-McClune
Insert emohrmcclune@currentanalysis.com
Photo www.currentanalysis.com

Washington, D.C. Paris, France

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Sterling, VA 20164, United States
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