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Low-cost Mobile Business Models
- Strategies for Profits at the Bottom of the Pyramid

Publication Date: October 2006
Page Count: 39
Exhibits: 20
Author: Guy Zibi
Price: £1265 / $2490 / €1879

Background

Over the next 5 years, 85% of new mobile subscriptions will come from developing nations.

The global subscriber base will pass the 3bn subscriber mark over the next five years. How do carriers reach the next billionth customer without sacrificing profits?

Report Details

This report examines the methods already in use by innovators in the marketplace, and analyzes the long-term implications of each model for operators. Given the anticipation of ARPUs below $2-$3 a month, reaching the next billionth customer will require a tremendous mix of technology and business model innovation. Pyramid's researchers examine:

  • Will low-denomination vouchers lead to market instability?
  • Will the positive impact of lifetime subscriptions offset declining ARPU?
  • Is outsourcing an adequate strategy for reducing opex and capex?
  • How can success be measured, with the declining relevance of ARPU and SAC?

Current penetration levels are well below potential. Profits are possible at the bottom of the pyramid - but business models will not only have to be different; they will have to be transformational.

Table Of Contents

Section 1: Where Will the Growth Come From?

Section 2: Driving Revenue
2.1 Segmentation: Have to Segment, precisely because they have low-cost…
2.2 Low Denomination Vouchers
2.3 Lifetime Subscriptions
2.4 Lower Airtime Prices
2.5 Limited Mobility Plans: Yet to Catch Up
2.6 Community Subscriptions: A Good Idea if Well Managed
2.6 Do Low-cost models Need Mobile Data?

Section 3: Transformational Cost Models: Rethinking OPEX and CAPEX
3.1 The OPEX Challenge: Keep It Down
3.2 Non-network Operating Expenses
3.4 Network Operating Expenses

Section 4: Challenging Mobile Fundamentals
4.1 Want to Reach the Next Billion? Time for a Change of Mindset
4.2 Is ARPU Overrated? Increasingly, Yes.
4.3 SACs: Yet Another Overrated Indicator
4.4 The Bottom Line: Primarily a Scale and Volume Game
4.5 A New Set of Indicators to Assess Operational Performance
4.6 Government Role: Telecoms Reaganomics Needed
4.7 More Out-of-the-Box Ideas: From Discriminatory QoS to No Customer Care

Purchasing Information

'Low-cost Mobile Business Models' is available to purchase online and can be delivered in hardcopy format or electronically as an Adobe pdf file.
To order this report please click on the link above or feel free to contact us for more details.