Product Type: Market Research Report
Published by: Pyramid Research
Published: March 2008
Product Code: R8-573Description Most postpaid subscribers in developed markets fully expect to receive a free or discounted mobile handset when they
renew their contract. Now mobile operators appear to be ready to replace the phone with a notebook. The new model
looks familiar: fixed-line providers have long been selling desktop PCs on installment plans to build up the addressable
markets for their Internet services. Bundles of computers with broadband subscriptions are available from many telecom
heavyweights globally, including Telmex, Telefónica O2 and TeliaSonera. Now the mobile industry is gearing up to
do the same for the HSPA networks that are emerging after recent upgrades, with speeds reaching up to 14Mbps and
plenty of spare capacity. The GSM Association reports that as of the beginning of February 2008, 229 operators have committed
to launching HSPA networks, and 162 of them have now launched HSPA commercially in 73 markets.
Little analysis has been done to date on the impact of selling a subscription-based notebook-data bundle to the consumer
market. This report, Bundling Notebooks and Mobile Broadband; the Business Case for MNOs, is dedicated to
filling that void and providing the analysis of the main drivers and the business case for launching the new bundle for a
mobile operator. The emphasis is on the impact of notebook-data bundling on the operators’ performance. The analysis
leverages data from our unique Mobile Broadband PC Survey — henceforth referred to as the MBPC Survey — conducted
by Pyramid Research in partnership with the GSM Association and Microsoft in the summer of 2007. The survey, which
involved the collaboration of mobile operators and market research agencies in 12 countries in the Asia-Pacific region,
Europe, the Middle East and Africa, provided insight into consumer attitudes toward buying a notebook as well as toward
mobile data services and applications.Table of Contents - Acronyms and abbreviations
- Companies mentioned in this report
- Executive summary
- Introduction
- Section 1: Key drivers behind bundling mobile broadband with notebooks for the mass market
- 1.1 Driver One: The tough status quo of mobile market maturity, and MNOs’ responses to external market conditions
- 1.2 Driver Two: Mobile IP networks are built, but more devices to deliver content are needed
- 1.3 Driver Three: Notebooks are in high demand in developed and emerging markets alike
- Section 2: The what and why of mobile broadband notebook bundles
- 2.1 Defining the mobile broadband-notebook bundle
- 2.2 Mass-market mobile broadband notebook bundles: developing the value proposition
- 2.3 Devices: Making a mobile broadband notebook affordable for a mass-market customer
- 2.4 Selling notebooks through subscription: why a mobile operator would want to meddle with consumer credit
- Section 3: The business case for mobile broadband notebook bundling
- 3.1 Market share gains and churn reduction
- 3.2 Driving usage of 3G networks
- 3.3 How much does a bundled subscriber cost?
- 3.4 New revenue opportunity: value-added services
- 3.5 Strategic considerations: the value of innovation
- 3.6 Further analysis required
- Section 4: Case studies: Mobile broadband notebook PC bundling
- 4.1 TeliaSonera: Pioneering mobile broadband notebook bundles in Nordic and Baltic markets
- 4.2 France: broadband notebook bundles for students
- 4.3 Orange Poland: Growing mobile Internet customer base with notebook bundles
- Additional resources
- Table of exhibits
- Exhibit 1: Mobile subscriber and revenue growth — top 30 markets globally
- Exhibit 2: Employment status of survey respondents without a mobile phone
- Exhibit 3: Employment status of survey respondents without Internet access at home
- Exhibit 4: Mobile market shares change little, call for more differentiation
- Exhibit 5: Mobile market voice and data ARPU
- Exhibit 6: Broadband and mobile subscriber net additions, 2008-2012
- Exhibit 7: Tests in Austria show average mobile broadband speeds faster than fixed broadband
- Exhibit 8: Mobile broadband network roadmap
- Exhibit 9: Notebook versus desktop PC preferences among survey respondents intending to purchase a computer within 12 months
- Exhibit 10: Internet usage at home among MBPC Survey respondents
- Exhibit 11: Bundle of mobile broadband and notebook for a home user
- Exhibit 12: Mass-market mobile broadband notebook: the concept
- Exhibit 13: Mobile broadband-embedded notebook bundle: recent operator launches
- Exhibit 14: Regional comparison of notebook demand projections (2008)
- Exhibit 15: Demand for embedded broadband is strong
- Exhibit 16: Mobile broadband notebooks: commercial models
- Exhibit 17: Global demand for consumer desktop and notebook computers
- Exhibit 18: Regional differences in survey participants’ preference for MBPC
- Exhibit 19: Mobile broadband notebook competition winners
- Exhibit 20: Financing the purchase: different models for telcos
- Exhibit 21: Interest in switching to an MNO that offers a bundle of mobile broadband, notebook and voice service
- Exhibit 22: The share of 3G in total data traffic; Mobiltel Bulgaria
- Exhibit 23: EBITDA margin comparison of CEE markets with and without handset subsidies
- Exhibit 24: Prepaid and contract SAC (2007)
- Exhibit 25: Location preferences for notebook purchase
- Exhibit 26: Demand for content on computers, by region
- Exhibit 27: TeliaSonera overview
- Exhibit 28: TeliaSonera’s consumer mobile broadband notebook bundle prices
- Exhibit 29: TeliaSonera partnerships
- Exhibit 30: Overview of mobile broadband notebooks in France
- Exhibit 31: Neuf Easy Gate and MyEasy PC devices
- Exhibit 32: France: Consumer broadband PC bundle prices
- Exhibit 33: Orange and Neuf’s broadband ARPU is increasing
- Exhibit 34: Orange Poland overview
- Exhibit 35: Orange Poland: mobile broadband notebook bundle prices
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