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Analysis of Fixed Line Substitution Tariffs in the Danish Market

Many mobile operators see FLS as a key ARPU stimulant, particularly since data revenues have been slow to take off. Generally, there are two key aims with FLS strategies:

• The primary aim is to increase mobile minutes of usage as subscribers increasingly use their mobile handsets whilst at home or work.
• A secondary objective is to drive customer acquisition where users completely replace their fixed line service with an operator's FLS proposition.

The key questions we raise in this case study of the Danish market are:

• What are the key types of FLS propositions in the Danish market?
• What are the key drivers and evidence of FLS success to date in the Danish market?
• What are the key benefits of launching substitution initiatives?
• What can we learn from the Danish experience? (E.g. key issues, problems, profitability issues, what could be bettered, etc.)
• How has the fixed line incumbent, TDC, reacted?

By interviewing key FLS strategists and decision makers across the Danish mobile operators and MVNOs such as Sonofon, Orange and Telmore, we gain insight into their respective experiences and the rationale behind each player's strategy. In this case study of FLS in the Danish market, we analyse the approach taken by each player before answering the questions raised above. In the process, we develop a number of market development principles that can help other operators when implementing their own FLS strategies. Much can be learned from both the successes and failures experienced by operators in the Danish market.

Price: EUR 2,500.00 / GBP 2,000.00

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1	Overview	1
1.1	Context and Objectives	1
1.2	Approach	1
1.3	Why Denmark?	2
2	Danish Landscape	2
2.1	Danish Market Overview	2
2.2	Key Indicators of Fixed Line Substitution in Denmark	3
2.2.1	Mobile vs. Fixed Minutes	3
2.2.2	Number of Access Lines	4
2.2.3	Single Phone Households	4
2.2.4	Key Drivers of Fixed Line Substitution	5
2.2.5	Mobile Price Reduction in Denmark	5
2.2.6	Fixed Line Incumbent Pricing	5
2.2.7	Increased Workforce Mobility	6
2.2.8	Convenience of Mobile	6
2.2.9	FLS Tariff Propositions	6
3	Fixed Line Substitution Tariffs and Propositions	6
3.1	Overview	6
3.2	Sonofon Zone (Consumer Proposition)	7
3.2.1	Overview of Consumer Proposition	7
3.2.2	Overview of Business Proposition	7
3.2.3	Activation and Architecture	7
3.2.4	Adoption	8
3.3	Orange Mono	8
3.3.1	Overview	8
3.3.2	Adoption and Recent Developments	8
3.3.3	Migration From Mono	9
3.4	Telia Unlimited	9
3.5	Discount Operators - Telmore and CBB	9
3.5.1	Overview	9
3.5.2	Adoption	10
4	FLS Tariff Analysis	10
4.1	Price Per Minute Comparison	10
4.2	Total Monthly Service Cost Comparison	11
5	Impact of FMC Opportunities	13
5.1	Sonofon	13
5.2	Orange Mono	13
5.3	Telia	14
5.4	Discount Operators	14
 6	Key Learnings from FLS Deployments	14
6.1	Critical Success Factors From Deployments In Denmark	14
6.2	Issues and Considerations	14
6.2.1	Barriers to Take-Up	16
6.2.2	Encouraging On-Going Usage	17
7	FMC Development Opportunities	18
7.1	Proposition Development	18
7.1.1	Expanding the Target Market	18
7.1.2	Enhancing Existing FLS Propositions	18
7.2	Developing FLS Specific Marketing Activities	18
7.3	Fixed Wireless Broadband Services	19
7.4	Fixed Mobile Number Portability	19
8	Conclusions	20