The four largest wireless carriers in the US – Verizon, AT&T, T-Mobile and Sprint – all claim that they have (essentially) abandoned the two-year-binding-contract-with-subsidized-phone model.
At least in the consumer market; the model is still around in the business market.
But have they? Continue reading We’re not subsidizing. We’re just selling phones for less than what we bought them for.
When Canning Fok, the co-managing director of CK Hutchison (the group that owns ‘3‘), in the earnings webcast yesterday attributed the revenue headwinds of the group to oil, foreign currency and the iPhone, two things became clear: Continue reading Without an attractive iPhone, operators’ EBITDA margin surges
Not counting social media activity – LinkedIn and Twitter – tefficient had 40 000 unique visitors at tefficient.com and nonstopretention.com in the last twelve months.
Here’s what you read the most (click to enlarge): Continue reading 40k unique visitors last twelve months – here’s what’s popular
4G is rapidly becoming a mature market normality.
Our top list to the right shows the reporting operators of the world with more than 40% 4G adoption in their retail bases as of September 2015.
The three Korean operators LG Uplus, KT and SK Telecom lead. No news; this has been the case since the first days of 4G. Continue reading 4G penetration: Global top list
We all know that a significant share of mobile operator revenue is equipment, not service, related. Even though equipment subsidisation and lock-in contracts rapidly become less popular, the reality is that if it wasn’t for subsidisation, reported equipment revenues would be even higher.
Our comparison of 80 reporting operators globally – all in mature markets – shows that the equipment revenue to total mobile revenue ratio can be as low as 5% and as high as 77% (click graph to enlarge): Continue reading Too much equipment and too little service revenue? Or vice versa? Check here.
For operators, the biggest piece of news in Apple’s event yesterday isn’t the iPhone 6S or the iPad Pro. Instead it’s Apple’s introduction of its own iPhone Upgrade Program. Continue reading With the iPhone Upgrade Program Apple makes operators replaceable
Decoupled, non-binding, unsubsidised: A game changer?
Our analysis shows that mature market mobile operators on average use 15-20% of service revenue on subscriber acquisition and subscriber retention cost (SAC/SRC). In most cases without growing.
Consequently, we examine the success of the operators who – in order to reduce SAC/SRC and improve margin – are challenging the mature market norm with binding contracts with coupled, subsidised, equipment. Continue reading Increase loyalty. Increase revenue. Reduce SAC/SRC. Is the combo possible?
Not many operators in Europe report the number of 4G subscribers, but in this graph we have collected those who have. We recalculated end of March 2015 figures into penetration figures of the total SIM base. Continue reading 4G penetration top 21 of Europe
Late November last year, Tele2 launched a major transformation campaign in Sweden under the Tele2.0 banner.
The message? Tele2 had questioned all industry practices and concluded that many of them were outright stupid. And consequently stopped or changed them. Continue reading Tele2: From industry’s black sheep to customer’s best friend?
The subsidy model – which dominated operators’ handset and equipment sales in mature markets for decades – is rightfully retiring. It wasn’t a brilliant idea to discount goods not produced inhouse (taking cost pressure away from equipment manufacturers like Apple) and, to compensate, overcharge for the services actually produced (making over-the-top services and Wi-Fi more attractive). Continue reading Churn: Still a concern