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Advances in Mobile Distribution

To maximise presence in increasingly mature markets and retain a pivotal position in the mobile (and converged services) value chain, MNOs need to examine their total distribution strategy and ensure they have a consistent and sustainable portfolio that is viable from a cost and return point of view.

This report looks at several distribution challenges facing MNOs in maturing markets and provides examples of strategies being developed by operators to deal with these challenges. In particular it highlights operator efforts to develop:

• New Relationships with Independent Channels - operator attempts to shift the balance of power away from independent distributors by repositioning and renegotiating relationships with independent channels.
• Strategic partnerships - bringing credibility in areas where MNOs lack experience or the established relationships needed to address specific segments. Such partnerships have been particularly valuable in high technology areas or for specialist requirements such as the enterprise market.
• Wholesale network sales - offer additional revenue opportunities. MVNO agreements allow operators to target customer segments they cannot easily (or affordably) reach, often using a different business model with lower operational costs. While MVNOs tend to deliver relatively low value customers, the volumes are often sufficient to off-set the reduction in premium. MVNOs can also utilise redundant extra capacity and provide incremental income at marginal additional cost.
• Direct branded distribution has been a feature of the mobile landscape for some time but is now of increased strategic importance. A strong portfolio of owned and branded distribution outlets provides increased control over revenue opportunities and reduced cost of sale while improving competitive position, customer lock-in and enhancing brand exposure.

Price: EUR 2,500.00 / GBP 2,000.00

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Table of Contents


1
Overview
1
2
Introduction
2
2.1
Purpose of Report
2
2.2
Report Content
2
3
MNO Distribution Challenges
3
3.1
Overview
3
3.2
The Current Distribution Landscape
3
3.2.1
Independent Retailers
3
3.2.2
Device Vendors
4
3.2.3
New Mobile Entrants
5
3.2.4
Consumer Behaviour, Expectations and Usage
6
4
Delivering Distribution Results
8
4.1
Distribution Options
8
4.2
Repositioning With the Independent Channel
9
4.2.1
MNOs Assert Their Position With Independents
9
4.2.2
Redefining Commercial Practices
10
4.2.3
Establishing Closer Co-operation
12
4.3
Strategic Partnerships
13
4.4
Wholesale Network Sales
15
4.4.1
Retail Partners for the Discount Market - O2 Group
16
4.4.2
Data Traffic and New Business Models - Orange Group
16
4.4.3
Targeting Hard to Reach Segments - Vodafone Group
17
4.4.4
MVNOs - No Guarantee - Disney
17
4.5
Direct Branded Distribution
17
4.5.1
KPN's Direct Multi-Brand Strategy
20
4.5.2
Leveraging Retail for Growth - O2 UK
22
4.5.3
Enhancing the Customer Retail Experience - Vodafone
23
4.5.4
The Online Component in the Branded Portfolio
26
4.5.5
Call Centres
28
4.5.6
Direct Marketing
29
4.5.7
Cross Channel Consistency
29
4.5.8
Trained Staff for Benefit Demonstration
30
4.6
Making Distribution a Pillar of Your Corporate Strategy - Orange Group
30
4.7
Emerging Channels
32
4.7.1
User Generated
32
4.7.2
Network Marketing
32
4.7.3
On-line Viral Marketing
32
5
Recommendations
34