Operator strategies for mobile broadband in emerging markets

Executive summary

In a nutshell

Ovum view

Pragmatic approach to mobile broadband in emerging markets

Customer segmentation is crucial

The role of government is key

Key messages

Mobile broadband in emerging markets: a definition

Market analysis

Market drivers

Latent Internet demand

Limited fixed network

Bridging the digital divide

Market barriers

Spectrum

Governments’ role

International connectivity

Low ARPU

Coverage

Devices

Low literacy rate

Operator strategies

Go-to-market strategy

The 3G data bonus

Measured deployment

Land grab

Fixed substitution

Integration

Customer segmentation

The ‘pyramid’ underpins segmentation

Introducing an emerging market mobile broadband customer segmentation model

Apex

Public sector

Enterprise

Resellers

Mass urban market

The bottom of the pyramid: lower urban and rural

Business models

Prepaid must dominate

Potential for emerging market operators to become SMART

Pricing strategy

Keep it simple

Fixed substitution requires fixed benchmarks

Operational issues

Cost-effective deployment and management

Traffic control

Fair usage policies remain the simplest to implement

Network optimisation tools coming to the fore

Dynamic pricing has potential

Customer support

Measuring the impact

Measures? What measures?

The mobile broadband profitability dashboard

Appendix 1: definition of mobile broadband in emerging markets

By service

By access technology

Vendors focus on HSPA, but vested interests shine through

Operators take a more pragmatic approach, but HSPA still dominant

By access device

A model defining mobile broadband in emerging markets

Emerging markets

List of Tables

Table 1: Grameenphone Community Information Centre business model

Table 2: Vodacom mobile broadband pricing in South Africa

Table 3: Vodacom mobile broadband excess usage charges in South Africa

Table 4: Ovum forecast markets defined as ‘emerging’

List of Figures

Figure 1: Optimum mobile broadband pricing

Figure 2: Strategic options for mobile broadband in emerging markets

Figure 3: Sample mobile broadband advertising from Mobilink

Figure 4: Sample demographic profiling correlated to PC ownership and fixed broadband access in Argentina

Figure 5: Emerging market mobile broadband customer segmentation model

Figure 6: Techniques to reduce the total cost of ownership of mobile broadband customers

Figure 7: Mobile broadband performance dashboard

Figure 8: WCDMA, TD-SCDMA, HSPA, LTE, CDMA EV-DO and mobile WiMAX connections in emerging markets: 2008-14

Figure 9: Mobile broadband users in emerging markets by access device: 2008-14

Figure 10: Defining mobile broadband in emerging markets by access technology and device