Mobile Data and WiFi Monetization: Convergent and user-centric offers take center stage

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The insatiable demand for continuous broadband connectivity has turned mobile data into a revenue growth engine for mobile network operators (MNO). Operators are exploring diverse approaches to attract users and grow mobile data revenue, including network-centric, user-centric and WiFi-centric strategies. Some leading operators are building scale and revenue share through technological and performance leadership. Other operators are leveraging their powerful user analytics capabilities to design differentiated packaging and compelling offers to drive mobile data uptake and usage. In addition, MNOs are increasingly exploiting synergies stemming from WiFi connectivity, making WiFi a key element of the mobile broadband service proposition.

Scope

Mobile broadband has become a primary revenue growth engine for MNOs around the world. Operators are responding to the mobile data opportunity with converged services portfolios and multi-play offers. Big data analytics are increasingly being leveraged to come up with accurate data pricing, bundling and marketing strategies for mobile data.

Mobile operators take multiple approaches to mobile data monetization. Some strategies emphasize network performance, some focus on user drivers, and some position WiFi as a core service. Network-centric monetization strategies leverage technological leadership while user-centric models focus on the needs and preferences of customers. WiFi-centric models position WiFi as a key element of the overall broadband value proposition.

WiFi is gaining importance among operators both as a tool to provide seamless broadband connectivity and as a services platform. Mobile network operators are leveraging WiFi to retain customers, increase their spend share and reduce network costs. While MNOs and WiFi infrastructure providers expand their WiFi hotspot footprint, emerging models such as WiFi First are changing the rules of the game.

Reasons to Buy

‘Mobile Data and WiFi Monetization: Convergent and user-centric offers take center stage’ provides a comprehensive analysis of key monetization models and market strategies for mobile data that are being employed across the world, helping executives at MNOs, fixed telcos and pay-TV providers make informed strategic decisions. By understanding the approaches and successful strategies of leading market players, telecom executives can formulate strategies to retain customers, generate revenue growth and navigate safely in the face of disruptive competition.

The report’s forward-looking analysis of key business drivers and monetization models for mobile data helps providers assess the potential impact of mobile data on their business and identify related opportunities. The case studies focus on how mobile operators and WiFi providers in 5 developed and emerging markets are tapping the mobile broadband opportunity, allowing executives to refine their strategies.

The report’s recommendations are based on real strategies employed by network operators to position themselves to take advantage of the mobile data revenue opportunity and increase their participation in the mobile broadband services space. Network operators can benefit from strategies such as leveraging big data to design user-centric offers and positioning WiFi as a key tool for sustainable customer satisfaction and revenue growth.

Table of Contents

Table of contents

Executive summary

Introduction: Mobile data opportunity and challenges

Section 1: Mobile broadband as a catalyst of growth

Overview of business drivers for mobile broadband

Mobile data as a driver of revenue growth

Service convergence strategies

Evolution of WiFi positioning in the mobile market

Emergence of big data-driven monetization strategies

Section 2: Key models for mobile data monetization

Network-centric models

User-centric models

WiFi-centric models

Section 3: Mobile data monetization approaches and selected strategies of leading mobile operators

Case study: China Telecom

Case study: Telefónica

Case study: AT&T

Case study: British Telecom

Case study: América Móvil

Section 4: WiFi monetization approaches

Current and emerging WiFi monetization models

Case study: Google

Case study: Boingo

Section 5: Key findings and recommendations

Key findings

Recommendations

Appendices

Companies mentioned

About Pyramid Research

Contact information

Table

Exhibit 1: Mobile data revenue – global (2016-2020)

Exhibit 2: Challenges to data monetization

Exhibit 3: Business drivers for mobile broadband

Exhibit 4: Video as a percent of mobile data traffic

Exhibit 5: Mobile data revenue uplift- select operators

Exhibit 6: Multi-play focus – selected operators

Exhibit 7: WiFi services’ monetization avenues

Exhibit 8: Carrier-grade vs. Best effort hotspots

Exhibit 9: Leveraging big data in mobile broadband

Exhibit 10: Network-centric monetization models – mobile broadband

Exhibit 11: Elements of user-centric monetization – mobile broadband

Exhibit 12: Trends in mobile data sales strategies

Exhibit 13: Selected WiFi-focused players by model

Exhibit 14: China Telecom mobile broadband strategies by business driver

Exhibit 15: China Telecom monetization strategies – mobile broadband

Exhibit 16: China Telecom mobile data performance – selected KPIs

Exhibit 17: Telefónica mobile data revenue growth

Exhibit 18: Telefónica strategies by business driver

Exhibit 19: Prepaid data monetization ‘roadmap‘ example

Exhibit 20: TEF data as % of mobile services, FY2015

Exhibit 21: Sample TEF data upsell programs

Exhibit 22: AT&T mobile broadband strategies by business driver

Exhibit 23: AT&T mobile share value plan elements

Exhibit 24: AT&T 2015 performance – selected KPIs

Exhibit 25: Mobile revenue share – UK, YE 2015

Exhibit 26: BT-EE strategies by business driver

Exhibit 27: Sample mobile data offers – EE

Exhibit 28: EE’s mobile data pricing structure

Exhibit 29 Cross-selling market potential – BT consumer services

Exhibit 30: AMX capex investments – 2011 to 2015

Exhibit 31: AMX mobile broadband strategies by business driver

Exhibit 32: Claro data monetization offers – LATAM

Exhibit 33: América Móvil revenue by business – 2015

Exhibit 34: Multi-play services growth – 2015-2020

Exhibit 35: Monetization opportunities by WiFi service model

Exhibit 36: Project Fi vs. Standard mobile services

Exhibit 37: Boingo’s hotspot footprint – YE 2015

Exhibit 38: Boingo’s revenue streams– YE 2015

Figures

Exhibit 1: Mobile data revenue – global (2016-2020)

Exhibit 2: Challenges to data monetization

Exhibit 3: Business drivers for mobile broadband

Exhibit 4: Video as a percent of mobile data traffic

Exhibit 5: Mobile data revenue uplift- select operators

Exhibit 6: Multi-play focus – selected operators

Exhibit 7: WiFi services’ monetization avenues

Exhibit 8: Carrier-grade vs. Best effort hotspots

Exhibit 9: Leveraging big data in mobile broadband

Exhibit 10: Network-centric monetization models – mobile broadband

Exhibit 11: Elements of user-centric monetization – mobile broadband

Exhibit 12: Trends in mobile data sales strategies

Exhibit 13: Selected WiFi-focused players by model

Exhibit 14: China Telecom mobile broadband strategies by business driver

Exhibit 15: China Telecom monetization strategies – mobile broadband

Exhibit 16: China Telecom mobile data performance – selected KPIs

Exhibit 17: Telefónica mobile data revenue growth

Exhibit 18: Telefónica strategies by business driver

Exhibit 19: Prepaid data monetization ‘roadmap‘ example

Exhibit 20: TEF data as % of mobile services, FY2015

Exhibit 21: Sample TEF data upsell programs

Exhibit 22: AT&T mobile broadband strategies by business driver

Exhibit 23: AT&T mobile share value plan elements

Exhibit 24: AT&T 2015 performance – selected KPIs

Exhibit 25: Mobile revenue share – UK, YE 2015

Exhibit 26: BT-EE strategies by business driver

Exhibit 27: Sample mobile data offers – EE

Exhibit 28: EE’s mobile data pricing structure

Exhibit 29 Cross-selling market potential – BT consumer services

Exhibit 30: AMX capex investments – 2011 to 2015

Exhibit 31: AMX mobile broadband strategies by business driver

Exhibit 32: Claro data monetization offers – LATAM

Exhibit 33: América Móvil revenue by business – 2015

Exhibit 34: Multi-play services growth – 2015-2020

Exhibit 35: Monetization opportunities by WiFi service model

Exhibit 36: Project Fi vs. Standard mobile services

Exhibit 37: Boingo’s hotspot footprint – YE 2015

Exhibit 38: Boingo’s revenue streams– YE 2015

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