lte world summit 2012 declan lonergan yankee-group-masterclass-2_thurs
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LTE World Summit Barcelona May 2012MASTERCLASSTRANSCRIPT
Page 1 © Copyright 2012
Positioning for Success in 4G/LTE
Declan Lonergan
VP Research, Yankee Group
May 24th 2012
Page 2 © Copyright 2012
Yankee Group is the preeminent research and advisory firm equipping companies to profit in a mobile world.
We have deep understanding of the attitudes, behaviors and usage patterns of mobile users and continuously explore enabling technologies and emerging business
models across the mobile ecosystem.
Based on these capabilities, our analysts provide a range of actionable data, insights and advice to marketing, strategy, product and technology executives driving the
mobility revolution in leading companies worldwide.
Our Mission: We Help Our Clients Make Money, Save Money and Mitigate Risk
Page 3 © Copyright 2012
4G Is Born into a Data-Centric World
SMS got the ball rolling
Smartphones & mobile Web fuelled data growth
Tablets and connected CE devices will take mobile data to new levels
Operator competition & differentiation is now a data game
Source: Yankee Group’s Global Mobile Forecast, March 2012
Page 4 © Copyright 2012
Multiple Connected Devices Is the New Norm
What devices have you used to access the Internet (or Internet content) in the last month?
88%75%
69%73%
82%
77%55%
52%56%
63%
36%31%31%
29%30%
49%44%43%43%
63%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
U.K. (n=67)Spain (n=147)Italy (n=153)
Germany (n=133)France (n=70)
U.K. (n=529)Spain (n=604)Italy (n=546)
Germany (n=508)France (n=470)
U.K. (n=381)Spain (n=325)Italy (n=355)
Germany (n=288)France (n=220)
U.K. (n=431)Spain (n=540)Italy (n=613)
Germany (n=479)France (n=409)
Source: Yankee Group’s 2011 European and U.S. Consumer Surveys Base: Asked to those who indicate they have Internet service at home and own each device
Feature phone
Smartphone
Laptop
Tablet
Creates new challenges in pricing and customer management
U.S. 45% average (across feature phone and smartphone users)
U.S. 61%
U.S. 88%
Page 5 © Copyright 2012
Quality of Experience Is the Basis for Differentiation
Source: Yankee Group’s 2011 European Consumer Survey
Customer experience is multi-faceted: Company & brand
Products & services
Channel
Delivery & operations
MNOs must ensure consistent, transparent customer interactions and communications
Same principles apply to 4G positioning
Page 6 © Copyright 2012
Operators - Be True to Your Brand
4G changes a lot - but not everything
Brand values must be clear and consistent
Leverage 4G to reinforce your market position, not change it
But do use 4G launch as opportunity to re-assess your market strategy and target customers
Source: Yankee Group Research Report, 2010
Page 7 © Copyright 2012
3G Positioning Was Simple Compared to 4G
A battle between incumbents and one new entrant
New player had to be disruptive
But most customers not ready for 3G data services
New entrants’ strategies had to evolve
So what are some options for positioning 4G services?
Source: Yankee Group Research Report, 2005
Page 8 © Copyright 2012
No. 1 for Tablet Connectivity?
Source: Yankee Group’s 2012 U.S. Consumer Survey
Target 4G specifically at tablet owners
Begin by understanding tablet owners’ profile, behaviour and needs
They are younger and have higher incomes than non-owners
Consumers who intend to buy tablets are already using plenty of data
Page 9 © Copyright 2012
No. 1 for Cord-Cutters?
Source: Ofcom Communications Market report, August 2011 Survey base: Consumers aged 15 and older (n = 9,013)
4G mobile broadband can drive a new wave of landline substitution
The opportunity is most obvious among least affluent socio-economic groups
4G pricing must be appropriate to the needs of those customers
Percentage of Household Take-Up
Page 10 © Copyright 2012
No. 1 for Families?
Example of Multi-Device Mobile Broadband Pricing Options
Shared data price plans for users with multiple connected devices
Also appropriate to families or other user groups that can share allowances
Source: Yankee Group Research Report, 2012
Page 11 © Copyright 2012
No. 1 for Prepaid Customers?
Remember this?
Prepaid availability created a surge in 3G adoption
Source: Yankee Group Research Report, 2005
Page 12 © Copyright 2012
Some Takeaways
4G is born into in a data-centric, multi-device world where customer experience is king
4G strategies must be consistent with operators’ overall market positioning and brand values
Choose your 4G customer targets carefully, get creative with service packaging and go for it!
Page 13 © Copyright 2012
Declan Lonergan [email protected]
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Thank You!