Chapter 1 Executive Summary
1.1 Evolution of the mobile industry requires a new approach to segmentation
1.2 New segmentation opportunities
1.3 Technologies associated with market segmentation
1.4 MVNOs vs sub-brands
1.5 Vendors and the impact of third-party brands
1.6 Handset and service customisation
1.7 Creating mobile communities
1.8 Portal strategies aimed at specific segments
1.9 Major market trends
1.9.1 Changing face of Segmentation
1.9.2 Outlook for service providers
1.9.3 Significant growth in mobile subscribers
1.9.4 Declining terminal costs
1.97.5 Increased functionality of devices
1.9.6 Outlook for handset manufacturers
1.9.7 Strategic and tactical alliances
1.10 Conclusions
Chapter 2 Introduction
2.1 Customer acquisition and retention is becoming increasingly difficult
2.2 Consolidation ahead
2.3 The role of MVNOs
2.4 Defining segmentation
2.5 Report methodology
2.5.1 Organisation of this report
2.5.2 Aims and focus of the report
Chapter 3 Strategic overview
3.1 Market evolution
Table 3.1: Countries with 100%+ mobile penetration, Q4 2005
3.2 Market direction
3.3 Market segmentation
3.3.1 Non-saturated markets
3.3.2 Concentrated segmentation
Figure 3.1: Single marketing mix solution
3.3.2.1 Merits of this approach
3.3.2.2 Difficulties of this approach
3.3.3 Assorted segmentation
Figure 3.1: Layered marketing mix solution
3.3.3.1 Merits of this approach
3.3.3.2 Difficulties of this approach
3.4 Segmentation opportunities and issues to consider
3.4.1 The need for flexible sub-segments
3.5 Advantages of segmentation
3.6 Mobile Virtual Network Operators (MVNOs)
3.7 Market Drivers
3.7 1 Benefits of market segmentation
3.7.1.1 Better product positioning
3.7.1.2 Churn reduction
3.7.1.2.1 Nokia findings on churn
3.7.1.2.1.1 Factors influencing churn
3.7.1.3 Customer acquisition
3.7.1.4 Customer loyalty
3.7.1.5 Fixed-mobile substitution
3.7.1.6 Increasing (data) ARPU
3.7.1.7 Targeting high value customers
Chapter 4 Terminal and market landscape
4.1 Terminals and end-user evolution
4.1.1 Mobile phone end-users
Table 4.1: Mobile subscribers, 2004-2010
4.2 Smarthphones forecast
4.2.1 End-users forecast
Table 4.2: Smartphone Base end-users, 2004-2010
4.2.2 Shipments forecast
Table 4.3: Smartphone shipments, 2004-2010
4.3 Technological evolution
4.3.1 Geographical changes
4.3.1.1 Europe
Table 4.4: Handsets sales in Europe by technology type (units, millions), 2004-2010
4.3.1.2 North America
Table 4.5: Handsets sales in North America by type (millions of units), 2004-2010
4.4 Technology shift
4.4.1 EDGE worldwide positioning
Table 4.6: World EDGE handset sales, 2004-2010
4.4.2 W-CDMA worldwide positioning
Table 4.7: Global W-CDMA handset sales, 2004-2010
4.4.3 W-CDMA world end-users base
Table 4.8: W-CDMA global end-users (m), 2004-2010
4.5 PDA end-users base
Table 4.9: PDA end-users, 2004-2010
4.5.1 PDAs forecast
Table 4.10: PDA shipments, 2004-2010
4.6 Telecoms environment
4.6.1 Mobile phone penetration
Table 4.11: Mobile penetration by region
Table 4.12: Top 10 economies ranked by mobile penetration
4.7 Competitive market
4.7.1 Cellular telephony
Table 4.13: Cellular mobile services competition (%), 2004
Table 4.14: Top 10 mobile operators by proportionate subscribers, 2004
Chapter 5 Operator and vendor market segmentations
5.1 Device and service customisation overview
5.1.1 Lesson from Dell
5.2 Producing fully customised mobile products
5.3 Portals strategy
5.4 Operator challenges
5.5 Operator segmentation
5.5.1 Operators will drastically reduce the number of terminals they offer
Table 5.1: Vodafone UK handset selection (Q1 2006)
5.5.1.1 Case study - Telia-Sonera’s device deployment strategy
5.5.1.2 Advantages of signature handsets
5.5.1.2.1 Hurdles for smaller operators
5.5.1.3 Device presentation
5.5.1.4 Future segmentation opportunities
5.5.1.5 Implementing new-services market segmentation
5.5.2 Cingular
5.5.2.1 Reaching the youth through new segmentation services
Table 5.2: Cingular Sounds pricing
5.5.3 O2
5.5.3.1 Fixed-line conversion market
Table 5.3: O2 Genion tariffs
5.5.4 Telefónica Móviles
Table 5.4: Telefonica’s customer segments and strategy
5.5.5 T-Mobile
5.5.5.1 Group segmentation
5.5.5.2 Problems associated with complex price structures
Table 5.5: T-Mobile UK tariffs
5.5.5.3 T-Mobile’s Flext will appeal to broad customer segments
5.5.6 Vodafone
5.5.6.1 Focusing on customers
5.5.6.2 Adopting a more flexible approach to segmentation
Chart 5.1: Vodafone Germany’s ARPU by customer segment (Q1 2005)
5.5.6.2.1 Vodafone’s strategies differ by region
5.5.6.2.2 Business service
5.5.6.3.3 Vodafone’s future global approach
5.6 Segmentation and ARPU
Table 5.6: US operator subscriber and ARPU data, 2005
5.7 Community segmentation
5.7.1 Defining mobile communities
5.7.2 Operator objectives with user communities
5.7.3 Mobile vs online communities
5.7.4 Gaming
5.7.4.1 Motricity
5.7.5 Blogging
5.7.5.1 FoneBlo
5.7.6 Dating
5.7.6.1 Mobestar's mDate
5.7.6.2 Mobilook
5.7.7 Advertising
5.7.8 LBS-based content
5.7.9 Other user generated content
5.7.9.1 Upoc
5.7.9.2 ShoZu
5.7.10 Community segmentation case studies
5.7.10.1 Sprint’s community services
5.7.10.2 Orange Lounge
5.8 Other segmentation choices for operators
5.8.1 Segmenting by technology
5.8.2 Segmenting by cost/price point
5.8.3 Lifestyle market segments
5.8.4 Case study: Technology segmentation in France
5.9 Terminal vendors
5.9.1 Nokia
5.9.1.1 Needs-based segmentation
Table 5.7: Nokia handsets aimed at specific segments
5.10 Vendor segmentation
5.10 .1 Indian case study
Table 5.8: Vendors’ segmentation of end-users in India and typical handset models
5.11 Terminal distribution
5.11.1 Motorola V3
5.11.1.1 Effect of colour changes on V3’s sales
5.11.2 Motorola i835
5.11.3 NEC
Table 5.9: NEC 232 features
5.12 Multi-function vs specialised handsets
5.12.1 Sony Ericsson: Superior approach to handset segmentation
5.12.2 Challenges with creating a form-factor that accommodates diverse requirements
5.13 Handset customisation and commoditisation
5.13.1 Impact of commoditisation on the mobile industry
5.13.1.1 Commoditisation and falling ASPs
Table 5.10: ASPs and margins by vendor
5.14 Targeted segmentation
5.15 What do users look for in a handset?
5.15.1 Consumer preferences
Table 5.11: Survey - What was the primary driver that led to your phone?
5.15.2 Enterprise sector
5.16 Operator brands and signature devices
5.16.1 Strengthening customer loyalty through customisation
5.16.2 Stimulating data usage through brand and device personalisation
5.17 Examples of group segmentations
5.17.1 Pre-teen segment
5.19.1.1 Teenagers
5.19.1.2 Advantages of targeting pre-teens
Chart 5.2: Spending power of pre-teens, by region
Chart 5.3: Services used by pre-teens access (%)
5.19.1.3 Pre-teens in the US market
5.19.1.4 Pre-teens in Europe
5.19.1.5 Pre-teens in Asia
5.20 Operator segmentation in India
5.20.1 Airtel: Reaching out to multiple segments through specialised products and services
5.20.1.1 Ladies Special Plan
5.20.1.2 Seniors plan
5.20.1.3 New customer additions by segment
5.20.1.4 Future segmentation strategy
5.20.1 Idea Cellular
5.20.1.1 Youth market focus and strategies
5.20.1.2 BPL Cellular
5.20.1.2.1 Targeting BPOs
5.20.1.2.2 BPL and women
5.20.1.3 Bharat Sanchar Nigam (BSNL)
5.21 SMART
Table 5.12: SMART’s sub-brands
Chart 5.4: SMART’s ARPU by segment
5.22 African Market
5.21.1 MTN in Africa
Table 5.13: MTN subscriber growth by market
Table 5.14: MTN's ARPU
5.22 3G service for pre-teens
5.22.1 Successfully targeting pre-teens with content and features
5.22.2 Pre-teens regulatory implications
5.22.2.1 Europe
5.22.2.2 Asia-Pacific
5.22.2.3 US
5.22.3 Social issues
5.22.3.1 Bullying
5.22.3.2 Thieving
5.22.3.3 Health consideration
5.22.4 Children’s terminals
5.22.4.1 European market
5.22.4.1 Teddyfone
Image 5.1: Teddyfone
5.22.4.1 iKids
5.22.4.2 Scarlet
5.22.4.2 US market for kid under 12
5.22.4.2 Verizon’s kid-orientated services
5.24.2.2 Cingular Wireless
Image 5.2: Firefly
Table 5.14: Firefly features
5.22.5 Preteens and teens demographic
Table 5.15: World population aged 5-14, 2005-2015
Table 5.16: World population aged 5-17, 2005-2015
Table 5.17: Africa population aged 5-14, 2005-2015
Table 5.18: Africa population aged 5-17, 2005-2015
Table 5.19: Asia population aged 5-14, 2005-2015
Table 5.20: Asia population aged 5-17, 2005-2015
Table 5.21: Europe population aged 5-14, 2005-2015
Table 5.22: Europe population aged 5-17, 2005-2015
Table 5.23: Latin America and Caribbean population aged 5-14, 2005-2015
Table 5.24: Latin America and Caribbean population aged 5-17, 2005-2015
Table 5.25: North America population aged 5-14, 2005-2015
Table 5.26: North America population aged 5-17, 2005-2015
Table 5.27: Oceania population aged 5-14, 2005-2015
Table 5.28: Oceania population aged 5-17, 2005-2015
5.22.6 Pre-teens revenue potential
Table 5.29: Average Annual ARPU in Europe from mobile users aged 5-11, 2004-2010
Table 5.30: Global mobile gamers and preteen mobile gamers (million), 2004-2010
5.23 The seniors market
5.23.1 Viability of the seniors segment
5.23.1.1 An untapped, but viable segment
Table 5.31: Disposable income of seniors by country and region 2004-2010 ($)
Table 5.32: Regional and world population by age segment, 2005-2015
5.23.2 Seniors revenue forecasts
5.23.2.1 Scenario 1: Without dedicated effort
Chart 5.5: Seniors’ market mobile revenues, 2005-2010
5.23.2.2 Scenario 2: With targeted measures
Chart 5.6: Mobile revenues from seniors market under Target Market scenario, 2005-2010
5.23.3 Phones ownership among older consumers
5.23.4 Route to success in selling to the senior segment
5.23.4.1 Informing the elderly
5.23.4.2 Training of sales staff
5.23.5 Handsets for seniors
Table 5.33: Senior-specific handsets
5.23.1 Design considerations
5.23.2 Operability
5.23.3 Functionality
5.23.4 Ancillaries
5.23.6 Services for seniors
5.23.6.1 DoCoMo’s Seniors market strategy
5.23.7 MVNOs and seniors
5.24 Ethnic markets
5.24.1 Ethnic market usage patterns
5.24.2 US Hispanic market
5.24.2.1 Market overview
5.24.2.2 Distribution of the Hispanic population
Table 5.34: Hispanic mobile penetration by US city
5.24.2.3 Hispanic market: Socio & Economics make-up
5.24.2.4 Hispanics and mobility
5.25 Female market
5.25.1 Women are an untapped segment
5.12.2 Reaching the female market
5.25.2.1 Operator attempts
5.25.2.2 Vendor strategies
Table 5.35: Handsets aimed at female segment
5.25.2.3 Options open to vendors
5.25.2.4 Enter the third-party brand
5.25.2.4.1 Design and VAS considerations for female market
5.25.2.5 Device customisation solutions
5.26 Recipe for success
Table 5.36: Star Trek Communicator Phone features and VAS
5.27 Failed attempts at segmentation
Chapter 6 MVNOs
6.1 Overview
Table 6.1: Global MVNO deployments by country
Chart 6.1: Number of MVNOs by region
Chart 6.2: Global MVNO subscribers and as % of total mobile subscribers, 2004-2010
6.2 MVNO with a different approach
6.2.1 Targeting business users: BeyondMobile
6.3 Benefits associated with MVNOs
6.4 MVNO trends
6.4.1 MVNOs to segment on content
6.4.1.1 Total Call Mobile
6.4.1.2 MVNOs to drive 3G
6.4.1.3 MNOs are acquiring MVNOs
6.4.1.4 MNOs are more willing to accommodate MVNOs
6.4.1.5 Fixed line operators taking the MVNO approach
6.4.1.6 MVNOs expanding their offering
6.5 MVNOs payment methods
6.6 Regulation
6.7 Examples of MVNOs
Table 6.2: Examples of MVNOs by value group, 2005
6.7.1 Tesco Mobile
Table 6.3: Tesco Mobile service pricing
6.7.2 Wal-Mart to become German MVNO
6.7.3 Aldi Talk
6.7.4 Religion goes mobile
6.7.5 Lifestyle-focused MVNO
Table 6.4: ESPN Mobile’s target audience
6.8 New MVNO to target tween market
6.9 Operator responses to MVNOs treats and strategic options
Table 6.5: Companies by sector that could benefits from entering the MVNOs market
6.10 Branding
Table 6.6: The world's top brands and their business case for entering the mobile market
Chapter 7 Case Studies
7.1 KPN
7.1.1 Segmentation approach
Table 7.1: KPN's European position
7.1.2 Brand strategy
Table 7.2: KPN’s multi-brand approach
7.1.3 Segments within segments
7.1.4 Achieving customer loyalty
Figure 7.1: Customer intimacy strategy
7.2 SK Telecom
7.2.1 Age and lifestyle-based segmentation
7.2.2 Complex segmentation model
Figure 7.2: SK Telecom's segmentation matrix
7.2.3 Impact of segmentation on SK’s ARPU
7.3 LogicaCMG
7.3.1 Overview
7.3.2 Segmentation solutions
7.3.2.1 SMART Marketing
7.3.2.1.1 Service performance
7.3.2.1.2 Segment monitoring
7.3.2.1.3 Portal loyalty
7.3.2.1.4 Churn patterns
7.3.2.2 Smart Customer Care
7.3.2.2.1 Customer loyalty and churn
7.3.2.2.2 Benefits of retaining customers
7.3.2.2.3 Inhibit data service uptake
7.3.2.2.4 Added costs with low FCR
7.3.2.2.5 The solution
7.3.2.2.6 Benefits on KPIs
7.3.3 LogicaCMG's customers
Table 7.3: Smart Customer Care and SMART Marketing deployments
7.3.4 LogicaCMG on the mobile industry
7.3.4.1 Segmentation
7.3.4.1.1 Implications of this strategy
7.3.4.1.2 Device detection and management
7.3.4.1.3 Intra-departmental co-operation
7.4 Redknee
7.4.1 Overview
7.4.2 Redknee's capabilities
7.4.3 Redknee's solutions
7.4.4 Redknee's product portfolio
Table 7.4: Redknee's product portfolio
7.4.4.1 Converged Rating & Charging
7.4.4.1.1 E-Care
7.4.4.1.2 IP Charging Gateway
7.4.4.1.3 Loyalty
7.4.4.1.4 Loyalty Services
7.4.4.1.5 DataMart
7.4.4.1.6 mCommerce
7.4.4.1.7 Policy Decision Rules Server (PDRS)
7.4.4.1.8 Subscriber Self-Care
7.4.4.2 Network applications
7.4.4.2.1 EasyRoams
7.4.4.2.2 Enhanced Messaging Gateway
7.4.4.2.3 Flexible rating and charging
7.4.4.2.4 Routing facilities
7.4.4.2.5 SMS and MMS messages
7.4.4.2.6 Mobile Group Enabler
7.4.4.2.7 Mobile Office Manager
7.4.4.2.8 Multi-SIM
7.4.4.3 Enablers
7.4.4.3.1 Enhanced Location Services (ELS)
7.4.4.3.2 Enhanced Presence Server (EPS)
7.4.4.3.3 OSA/Parlay Gateway
7.4.5 Redknee's partners
Table 7.5: Redknee’s partnerships
7.4.6 Redknee's customers
7.4.7 Redknee on segmentation
7.4.7.1 Emerging segments
7.4.7.2 Kids phones
7.4.7.3 Evolution towards features-lead services
7.4.7.3.1 Group calling
7.4.7.3.2 Message broadcasting
7.4.7.3.4 Event service
7.4.7.3.5 Affinity service
7.4.7.3.6 Loyalty segment
7.4.7.3.7 Business subscribers
7.4.7.3.8 Group call management
7.4.7.3.9 Mobile PBXs
7.4.7.3.10 Location service
7.4.7.3.11 Sophisticated payment systems
7.5 Sonopia
7.5.1 Sonopia’s approach to segmentation
Chapter 8 Strategies for success
8.1 Overview
8.2 Strategies based on pricing
8.2.1 Voice and data service providers
8.2.1.1 Vodafone Sweden pricing strategy
8.2.1.2 Vodafone browsing strategy
8.3 Strategy based on service levels
8.3.1 Mobile operators
8.3.1.1 T-Mobile
8.4 Strategies based on strategic alliances
8.4.1 Solutions for operators and vendors
8.5 Strategies based on selected targeting of market segments
8.5.1 Niche markets
8.5.2 Adding value to customers’ requirements
Chapter 9 Conclusions and recommendations
9.1 Marketing department
9.1.1 Vendor recommendations
9.1.1.1 Visibility of handsets in the market place
9.1.1.1.1 LG Electronics' approach
9.1.2 Operator recommendations
9.2 Sales department
9.2.1 Operator recommendations
9.3 Product development department
9.3.1 Vendor recommendations
9.4 Market specific recommendations
9.4.1 Recommendations for the preteens market
9.4.1.1 Operators: Addressable challenge
9.4.1.2 Service branding in the preteen mobile market
9.4.1.3 Recommendations for operators
9.4.1.4 Handset Vendors: Issues to consider
9.4.1.5 Terminals branding in the preteen mobile market
9.4.1.6 Recommendations for terminal vendors
9.4.1.7 Recommendation for participants in the value chain of the preteen market
9.4.1.8 Recommendations for children's brand owners
9.4.1.9 Preteen mobile market: Recommendations for content providers
9.4.1.10 Competitive issues in the preteen mobile market
9.4.2 Recommendation for the ethnic market
9.4.2.1 Ethnic group as general consumers
9.4.2.2 General recommendations
9.4.3 Recommendations for the seniors market segment
9.4.3.1 The case for seniors market segmentation
9.4.3.2 Targeting senior consumers
9.4.3.3 Seniors market: Technology issues
9.4.3.4 Seniors-relevant services
9.4.3.5 MVNOs as a means of targeting senior consumers
9.4.3.6 Handset portfolio
9.5 Recommendations for handset vendors
9.6 Time-to-market
9.7 Strengthened product portfolio
9.8 Attention to design
Appendix A Lead author’s profile
Appendix B About visiongain
Appendix C Report evaluation form