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MVNO Plan

MVNO Plan. Business Overview. Who Should Be an MVNO?. Mass Media (Best) Media that covers national, International, sports, entertainment and business news. Ready made advertising channel Ready made content unique to its subscribers Ready made users/subscribers Retailers (average)

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MVNO Plan

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  1. MVNO Plan

  2. Business Overview

  3. Who Should Be an MVNO? • Mass Media (Best) • Media that covers national, International, sports, entertainment and business news. • Ready made advertising channel • Ready made content unique to its subscribers • Ready made users/subscribers • Retailers (average) • Outlets as distribution and dealer channel • Ready made sales structure • Loyal customers • Global Brand (investment intensive) • Ready made users/followers

  4. Why Now? • In early 2004, Europe and developed market started MVNO structure. • There is no proper business model for MVNO to excel. • MNO is competing with MVNO due to market is not saturated yet (Subscribers > Population) • Technology companies concentrate on selling their network appliances, rather than providing services. • Capital intensive for MVNO and gross margin too low to justify investment of over € 10-20mil to capture 100,000 subscribers. • Time to market may take years to build and develop full network coverage. • In 2010, emergence of Mobile Virtual Network Enabler (MVNE) • Cut costs of investing technology CAPEX. • Cut monthly overheads of over staffing on technical employees. • Matured market is looking for more than just phone calls, SMS and 3G access. • Quick time to market.

  5. What is MVNE? • A Ready Platform to serve MVNO Requirements • It is proven Tier 1 platform, extensive features to cater the different needs of MVNOs • A Faster time to market. Less risk. Simplified go-to-market approach. • An attractive Commercial Model based risk and rewards. • Based on ASP model. No CAPEX investment. • Pay only for the services / platform features required

  6. What Do MVNE Offer? – The Menu • Business Support Solutions: • Dealer Management System • Dealer Point of Sale • Dealer Commissioning • Customer Relationship Management • Customer Care GUI • Customer Registration Information • Distribution • Inventory Management • SIM Card Production • SIM Pack Printing • Voucher Production Management • Trouble Ticketing • MNP Interface and workflow • Financial Reports • Postpaid Billing • Dealer eTopup via SMS • Core Telecom Services • Voice MO and MT Real Time control • SMS • Data (GPRS, EDGE, 3G, HSPA) • MMS • Real Time Converged Prepaid\Postpaid Rating • Call Forwarding • Call Waiting • Call Hold • Call Conferencing • Call Barring • Caller Line Identity Presentation • USSD Services • VXML IVR

  7. What Do MVNE Offer? – The Menu (cont’d) • Value Added Services • Full Service Delivery Platform for SMS, USSD, Web, WAP and Voice Applications • M2M applications • Enhanced Call Routing • Voicemail • Personal Ring Back Tone • 3rd Party Content Management • Hosted Content • Hosted WAP portal • USSD Menu Browser • Peer to Peer Balance Transfer • Missed Call Alert Notification • Web Based Self Care • OTA announcements • Bank Payment Gateway • Voice SMS • Collect Call • Credit Transfer • SMS2Email • Email2SMS • Advertising services • Charging & Billing Solution: • Support for Fixed, Mobile and Wimax\Wifi services • Real Time Rating and Services • Flexible Rating Engine • Flexible Reload\TopUp Engine • Service Bundling • 255 Dedicated Accounts • 255 Usage Accumulators • Unlimited Friends and Family accounts • Community Charging • Bonus on Incoming Calls • Full Subscriber Lifecycle Management and Notifications • USSD Topup • USSD Balance Check • USSD Call Back for Roaming • Camel Roaming • Reload Voucher Solution

  8. In The Nutshell • MVNO • Branding • Marketing • Product Development • Sales • Customer Management • Business Know-how N S T B H H M Sub Brands VAP – Value Added Provider NE – Network Enabler MVNE NO – Network Operator MNO Subscribers

  9. Revenue Driver and The Market

  10. Potential Revenue vs Services Offered • There are 16,000 newly registered users in the market in Malaysia every month. • Penetration rate is now 110% • People are more accustomed to carry 2 mobile phones or more • MNP is well received by end user • More mature market developed but lack of vertical market offering in Mobile Services

  11. Revenue Streams • Core Revenue Streams • Voice calls and SMS • Mobile Data and Broadband Packages • Value Added Revenue Streams • Advertising • WAP, SMS, USSD, Voice Mail, Phone Tone and Caller Ring Back • Ring Back Tone Services • Bundled Content Services • Unique Packages for Berita Harian, Harian Metro and NSTP • Sports, Current Affairs, Entertainment and Lifestyle • ARPU (Average Revenue Per User) – RM 60 • Core Revenue – RM 40 per month • VARS • Subscribers – RM 5 per month • Advertisers – RM 15 per month

  12. MVNO Keyword – BUNDLING • Challenges • Acquisition of subscribers. All the MVNO above do not have steady stream of followers. All transactional based clientele.

  13. Unique To NSTP - Acquisition

  14. Bundle Again for Retention • NSTP • Content Services • Cheaper News Alert Service (RM 1 per week) • Exclusive Downloadable News Alert Application (push email strategy) • Exclusive Content Services for Youth & Interactive Services • Caller Ring Back • Paid Content • Exclusive to NSTP or affiliated companies • Unique Label and Artists Caller Ring Back (more for Harian Metro) • Free Content • Radio-based Caller Ring Back • News-based Caller Ring Back • Advertisement-based Caller Ring Back

  15. Key Driver To Success • Brand • NSTP holds known brand • Multi-brand for different market segment (NST, BH and HM) • Affiliation to a larger media group • Marketing • NSTP has more than 5million readers • NSTP holds 3 major publications in the media market with steady readership • Staff Programmes (Family and Friends) • Large group • Ready made subscribers • Distribution Network • News-Stands as distribution/dealer channel

  16. Business Model

  17. Cost Structure & Business Model • Network Elements • Provided by MVNE with a setup fee as low as RM500K one time cost • Pay as you go model in subsequent month • Marketing Elements • Leveraging on in house advertisement properties • Operation • Over heads (from CEO to receptionist) can be as low as RM1.8mil per annum • Only needed dealer and distributor managers and sales & marketing team

  18. The MVNO Structure

  19. Contribution • NSTP • Advertising real-estate expenses (print advert) • The big 3 Brands • Mocome • Business Knowledge • Operational and Technical Knowledge • Value Added System Provider • Retailers • Must be large group with more than 100 outlets in the country • Taking lesser top-up fees (minimize cost of sale) • Funder • The financier of the business

  20. Roadmap • Regional expansion • With MVNE, lower setup cost made regional expansion more reasonable • Tie up with other giant publishers in neighbouring countries • Break-even point • With 5mil readers to target, targeting 2 % for the first 18months • ARPU of RM30 per month • Revenue hits RM36mil averaging 7% net profit (with Retailers in the group) • Long term stragety • To target at least 15% of the readership • Ability to offer more value added and low-cost termination/call rates

  21. Projections • Assumptions • Based on ARPU of RM 30 per month • Plateau in 19 months with 490K subscriber • Cost Structure • Dealer and MVNE costs are in Direct Cost of sales, Marketing costs will be in Operating Exp • Strategy – Aggressive in Year 2

  22. Thank You

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