This publication has been discontinued on July 19, 2011.
Mobile operators have been looking for the killer mobile content to get subscribers generating higher data revenues for some time now. Most have had to spend a lot of time, energy and resources trying to get their content strategies and content-supplier deals right, but what will happen when the content companies realise that they can become involved in the mobile world by starting their own MVNO services? How will this affect the current mobile market? What potential threats and opportunities will this pose to the traditional mobile operators?
Content companies are finally starting to realise the benefits of becoming an MVNO to target their existing customer base. One of the most interesting examples is the action-sports brand, Extreme, famous for its death-defying TV shows targeted at the high-spending, young male adult market.
In the latest visiongain report, Extreme Mobile: Launching a content-driven MVNO brand, you will discover why Extreme has a unique product offering, and the implications that its brand strength will have on targeting a niche market.
In early 2005 Extreme Mobile announced plans to finalise a wholesale agreement for at least four years with a UK network operator. This report will answer the following questions, and much more.
Find out:
- What Extreme hopes to achieve from entering the UK mobile market?
- Which factors will influence Extremes likelihood to succeed in this market?
- What is Extremes handset strategy?
- How will Extreme go about marketing its mobile service?
- With a strong existing content base, what will be Extremes content strategy?
- What ARPU levels will Extreme Mobile command? And what percentage will come from data?
- How many subscribers is Extreme Mobile expected to have by 2010?
This announcement has major implications for the mobile telecoms market because Extreme Mobiles approach will be based on unique and differentiated services based around content, handsets and the lifestyle that surrounds its core demographic.
- What lessons can potential and existing MVNOs learn from Extremes approach to its MVNO service?
- What exactly does this deal mean for UK operators?
- Which other mobile telecoms markets is Extreme likely to enter?
- What does this deal mean for operators in these other markets?
- Can a successful niche content company generate revenues by entering the telecoms market?
This 60+ page report critically evaluates Extreme Mobiles strategy and by reading it you will learn how other content companies and strong demographically-targeted brands are set to follow the business model set by Extreme. What impact will this have on your market? Should operators encourage MVNO activity and accept the hosting fees or be concerned about these companies cannibalising their customer base?
Discover:
- How the rise of strong brands entering the telecoms market through MVNO models will impact the market through to 2010.
- How other MVNOs have been successful at leveraging their brand strategy in the mobile market.
- What effect 3G and regulator intervention will have on the introduction of MVNOs.
Table of Contents
Chapter 1 Introduction
- 1.1 Executive Summary
- Chart 1: Global MVNO subscribers (millions) and as % of total mobile subscribers, 2004-2010
- 1.2 Defining MVNOs
- Figure 1: Niche MVNO positioning in the MVNO business model
- 1.2.1 Resellers
- 1.2.2 Pure/full MVNOs
- 1.2.3 Niche MVNOs
- 1.3 Focus of this report
Chapter 2 The MVNO landscape
- 2.1 MVNO market drivers
- 2.1.1 The benefits of MVNOs
- 2.1.2 Network operator objectives with MVNOs
- 2.1.3 Why non-telecoms companies look to become MVNOs
- 2.1.4 Impact of 3G on MVNO activity
- 2.1.5 Regulatory drivers
- 2.2 How do MVNOs operate?
- Table 1: Virgin Mobile vs T-Mobile pricing comparison in the UK
- 2.3 Set-up costs for MVNOs
- 2.4 Co-branded MVNO packages
- 2.5 Factors affecting the success of MVNOs
- 2.5.1 The importance of MVNO branding
- 2.5.2 MVNO pricing in Finland
- Chart 2: Finnish MNO and MVNO voice tariffs
- Table 2: MVNO vs MNO SMS pricing in Finland
- 2.5.3 Debitel France
- Chart 3: Debitel SMS prices compared to French network operators
- 2.6 Lessons from Virgin Mobile UK
- Chart 4: Virgins ARPU and churn, Q4 2003-Q4 2004
- 2.6.1 Why Virgin failed in Singapore
- 2.7 Is the UK a good country to start an MVNO?
- Table 3: MVNOs in the UK
- Table 4: Most attractive markets for MVNOs
- 2.7.1 Tesco
- Table 5: Tesco Mobile service pricing
- 2.7.2 easyMobile
- 2.7.3 Reasons behind Value Telecoms failure
- 2.8 Ireland sees influx of MVNOs on the horizon
- 2.9 Impact of MVNOs on pricing
- 2.9.1 Telmore
- Chart 5: Telmores financial performance, 2001-2003
- Table 6: Positioning of Telmore concept in the market vs traditional mobile operator model
- 2.9.2 Lessons from Denmark
- Chart 6: Subscribers by Danish operator, H2 2000-H1 2004
- Table 7: SMS and voice tariffs in Denmark
- 2.9.3 Will the Danish experience be replicated elsewhere?
- Table 8: Strategies of selected European MVNOs
Chapter 3 Extreme Group overview
- 3.1 Extreme Group
- 3.2 Brief history of Extreme
- 3.3 Strategy and vision
- 3.4 Profile of Extremes businesses
- Figure 2: Extreme Group structure and businesses
- 3.4.1 Extreme Sports Channel
- Table 9: Availability of Extreme Sports Channel in Europe
- Table 10: Availability of Extreme Sports Channel in the Middle East
- 3.4.1.1 Extreme Channel portal
- 3.4.2 Extreme Entertainment
- 3.4.3 Extreme Retail
- 3.4.3.1 Extreme stores
- 3.4.4 Ex Gear
- 3.4.5 Extreme Drinks
- 3.4.6 Extreme Parks
- 3.4.7 Extreme Publishing
- 3.4.8 EX Events
- 3.4.9 Extreme Mobile
- 3.4.9.1 An experienced management team
Chapter 4 Analysis and forecasts
- 4.1 Extreme Mobiles strategy
- Table 11: Diversity of extreme sports
- 4.2 Defining extreme sports
- Table 12: Global active extreme sports participants by category
- 4.3 Analysing the extreme sport demographic
- Chart 7: Extreme target demographic by age
- Chart 8: Demographic by gender
- Chart 9: Percentage of Extremes demographic in education
- Table 13: Popular clothing/fashion labels among extreme sports enthusiasts
- 4.4 Extreme Mobiles target segment
- Table 14: Extremes target UK demographic
- Chart 10: Extreme Mobile subscribers, 2007 & 2010
- 4.5 MVNO approach is a useful extension of Extremes existing mobile presence
- 4.6 Extreme Mobile offers extensive opportunities for tying with Extremes other businesses
- 4.7 Distribution - Extreme Mobiles strengths
- 4.8 Content and services
- 4.8.1 Video and value-added services
- Figure 3: Extreme sports are underserved
- 4.8.2 Push-to-Talk
- 4.8.3 Location-based services
- 4.8.4 Mobile music
- 4.9 Handsets: the pros and cons of the own-brand, customised approach
- 4.9.1 Subsidies
- Table 15: Extreme Mobiles handset pricing
- 4.10 Tariffs
- 4.11 ARPU
- Chart 11:ARPU of UK operators, Q4 2004
- 4.12 Packaging and consumer trust
- 4.13 Marketing
- 4.13.1 Brand strength
- 4.13.2 Choosing a "cult hero"
- 4.14 What are the key challenges for Extreme Mobile?
- 4.14.1 Costs
- 4.14.1.1 Low operational costs are critical for MVNO success
- 4.14.1.2 Wholesale agreements
- 4.14.1.3 Extreme Mobile will experience higher costs
- 4.14.2 Creating the right content for the mobile environment
- Figure 4: Creating successful mobile content and services
- 4.14.3. Customer support
- 4.14.4 Distribution - Extreme Mobiles weaknesses
- 4.14.5 Penetrating the UK market
- Table 16: Subscribers by UK network operator (m), Q4 2004
- 4.15 Extreme Mobiles international aspirations
- 4.15.1 Where will Extreme Mobile launch after the UK?
- 4.15.1.2 Europe
- 4.15.1.2.1 Western Europe
- Chart 12: Prepaid vs postpaid subscribers in selected European markets
- 4.15.1.2.2 Eastern Europe
- 4.15.1.3 The US market
- Chart 13: Number of MVNOs hosted by major US network operators (as % of total US MVNOs)
- 4.15.1.3.1 Large opportunity for MVNOs
- Table 17: MVNOs in the US
- 4.15.1.3.2 Virgin Mobile USA
- 4.15.1.3.3 TracFone Wireless
- Table 18:TracFones service pricing
- 4.15.1.3.4Boost Mobile USA
- 4.15.1.3.5 ESPN Mobile
- 4.15.1.3.6 SK-EarthLink
- 4.15.1.4 Extreme Mobiles potential in the US
- 4.15.1.5 Extreme Mobile should not over-reach
- Table 19:Most suitable countries for Extreme Mobile
- 4.16 Will Extreme Mobile succeed?
- Table 20:Key opportunities with mobile sports
Chapter 5 Conclusions and recommendations
- 5.1 Mobile network operator recommendations
- 5.2 MVNO recommendations
- 5.3 Vendor recommendations
Appendix A About visiongain
Appendix B Report evaluation form
Companies and organisations mentioned in this report
- 3 UK
- 7-eleven
- Addict
- Airvoice Wireless
- Alphanumeric
- Amazon
- America Movil
- Amnesty International
- AT&T Wireless
- Boost Mobile USA
- British Gas Communications
- BT
- BT Mobile
- Buongiorno UK
- Call4Care
- CBB Mobil
- Cingular Wireless
- Comp USA
- ComReg
- CSG Systems
- Cubio
- Dauphin Telecom
- DC
- debitel France
- debitel Germany
- EarthLink
- easyGroup
- easyMobile
- Eircom
- Energis
- ESPN
- ESPN Mobile
- Extreme Group
- Extreme Mobile
- Farmers Telephone Cooperative
- Financial Times
- Fly53R135
- Food4Less
- Fresh
- FT Mobile
- Global Talk PCS
- Globetel
- Hello MTV
- Kingston Communications
- Kmart
- Leclerc
- Legends Surf Shops
- Liberty Wireless
- LightSurf Technologies
- Manchester United
- Meteor
- MinuteBuyer
- Motorola
- Movida
- MTV
- New York Yankees
- Nextel
- Nokia
- NTL
- O2
- One.tel
- Orange
- Outremer Telecom
- Phonehouse
- Radiolinja
- RadioShack
- Sainsburys
- Sainsburys Mobile
- SFR
- SFX Sports Group
- Siemens
- SingTel
- SK Telecom
- SK-EarthLink
- Sonera Mobile
- Sonofon
- Sony Ericsson
- Speak Out
- Sprint PCS
- Supremebeing
- TDC
- TDC Mobile
- Tele2
- Telfort
- Telia
- Telmore
- Tesco
- Tesco Mobile
- The Carphone Warehouse (Fresh)
- T-Mobile
- T-Mobile USA
- TracFone
- TWI (IMG Group)
- UniqueAir
- Universal Mobile
- US Census Bureau
- Value Telecom
- Verizon Wireless
- Videlec
- Virgin Group
- Virgin Mobile Australia
- Virgin Mobile Canada
- Virgin Mobile Singapore
- Virgin Mobile UK
- Virgin Mobile USA
- Visage Mobile
- Vodafone
- Wal-Mart
- Walt Disney Co
- Ztar.
