How Shared Data is Driving up Usage and Revenues

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© Copyright 2014 Openet – Company Confidential
For Use Under Non-Disclosure Only
Webinar: Shared Data : Plans,
Performance and Innovation
23rd July 2014
Martin Morgan, Marketing Director, Openet
Alex Leslie, Billing Views

• The real beginning of innovation from operators
• Spring board for a whole lot more
• Self service – customer in control
• Sponsored data
• Collaboration with OTT players
Shared Data

• TM Forum report into Real time charging
• In two years’ time
• OTT Collaboration – 68 percent
• Free/cheap apps – 45 percent
• Sponsored data – 56 percent
• The beginning is shared data
Shared data

Market Opportunities
Proven ARPU
Driver
First to market
opportunity
Multi Device
customers are
stickier
Increasing
devices per
customer
account
AT&T & Verizon have
40%+ Shared Data
penetration on post-
pay which has driven
up ARPU by 5-10%
per account since its
launch in Q2 2012
Operators in
EMEA/APAC have a
unique window of
opportunity to gain a
first to market
advantage by
launching Shared
Data plans before
commoditization
Customers who have
committed more
devices per account to
an operator are less
likely to churn.
AT&T/Verizon post-
pay churn is circa
1.2% per month
Verizon has
changed their
ARPU reporting to
Average revenue
per account (ARPA)
as each post-pay
customer averages
2.8 devices

There 2 main concepts that support Shared Bundles:
• Gifting allows a subscriber to transfer a portion of their
allowance to another subscriber
• Data Share
• Where 2 or more subscribers combine their allowance
• Where 1 subscriber controls the allowance for a number
of consumers combined
• Where 1 single B2B allowance is shared among multiple
employees
Shared Bundle Concepts

• Data Share
• Where 2 or more subscribers combine their allowance
• Where 1 subscriber controls the allowance for a number of consumers combined
• Where 1 single B2B allowance is shared among multiple employees
• Where 1 allowance is shared between multiple devices
• Individual user consumption can be on a first come first served basis or
individual restrictions and bundle consumptions priorities may also apply – e.g.
limit kids’ usage on family data bundles
• Typical data share offer process for customers:
1 – Select how much data you want to share (e.g. 10 GB, etc)
2 – add smartphones to your plan
3 - add more devices to your plan (tablets, gaming devices, etc)
4 - get value adds – e.g. cloud storage
Data Share Concepts

Shared data was pioneered in the mainstream in North America. Multi-device
ownership, increasing usage and adoption of cellular data are all drivers.
Americas: AT&T (USA), Verizon Wireless (USA), T-Mobile (USA), Sprint
(USA), Digicel (Bermuda), Rogers (Canada), Telus (Canada),Bell
(Canada), bmobile (Trinidad & Tobago),
Asia: Telstra (Australia), Bharti Airtel (India)
Europe: Sonera (Finland), Cosmote (Greece), O2 (Ireland), Telia
(Sweden), EE (UK), Tesco (UK), Vodafone (UK), Orange
(Slovakia)
M. East: Batelco (Bahrain), Zain (Bahrain), Ooreedoo (Kuwait)
Shared Service Launches

First introduced its Mobile Share Value plans in July 2012. Data can be shared across up to 10
devices, with the option of having no annual contract term. Unlimited talk and texts are included in
the plans. There are two tariffs – for the mobile data allowance & for the number of Smartphone
lines.
The AT&T mobile data allowance ranges
from USD $20 per month for 300 MB up to
USD $375 per month for 50 GB as follows:
• $20 USD – 300 MB data allowance
• $45 USD – 1 GB data allowance
Examples of Shared Plans – AT&T

Introduced its Share Everything plans in June 2012. Provides unlimited talk and SMS with a monthly
charge per line & a variable charge per month depending on the data allowance cost. In 2014 Verizon
renamed plan as “More Everything” which includes unlimited calls & SMS and shared data as standard.
Plans for families and individuals. Data allowances range from 250 MB up to 50 MB and are shown in the
table below.
Verizon More Everything $ per month
250 MB 15
500 MB 30
1 GB 40
2 GB 50
3 GB 60
4 GB 70
6 GB 80
8 GB 90
10 GB 100
12 GB 110
14 GB 120
16 GB 130
18 GB 140
20 GB 150
30 GB 225
40 GB 300
50 GB 375
Examples of Shared Plans - Verizon

Performance of Data Share Plans

Multi- Device, Family, Small Business Shared Data
Plans
Family Plan
€3 per extra sim (Max 3)
Multi-Device (tablet)
€2 per extra sim +500mb
Small Business
€70 (Max 6)
•Using offer catalog to define offers:
• All data bundles are defined through a
single GUI for quickly defining data offers,
associated balances, notifications & policy
rules (block, throttle etc.)

• Bell Canada offering option of mobile TV as an paid for option / free add-on (6
months) at high end plan.
Adding Other Services to Share Plans

SONERA FINLAND
Has launched Sonera Together, which allows 10 people to connect a Smartphone or other device to one
account. Plans offered include:
• 24.90 Euro per month – Unlimited minutes & SMS
• Plus Euro 9.90 per month per Smartphone
• Plus Euro 1.90 per month per laptop or Tablet PC
Extra data allowance can be added, with 500 MB costing Euro 9.90 per month up to
20 GB costing Euro 29.90 per month.
And Another Example………

• UK operator EE promotes flexibility in
their 4GEE share plans, by enabling
customers to add people to their
plans at any time they want.
• The message is that if a friend
(potential share plan member) is in
the middle of a contract (presumably
with a competitor) then the customer
can add them when that contract
finishes.
• Good example of using share plans to
attract new customers.
Using Share Plans to Attract Subscribers

• Sprint’s Framily (friends and family)
offers lower monthly cost per group
member as number of members
increase
• Good example of encouraging
customers to join a group
• Sprint see this as ‘innovation and
marketing’ platform
• Move into sharing data bucket
between group members?
Group Plans – Sprint Framily

• Multi-device share plans – e.g. tablets, smartphone driving tablet data usage
• Operators looking to sell more cellular enabled tablets
• T-Mobile have a multi-prong strategy for multi-device adoption
• On proposition side: Flexible multi device and family plans
• Device side: Offering 4G enabled tablets for the same price as Wi-Fi model
• Offering 200Mb of free data per month with each 4G enabled tablet
• Trade in Wi-Fi only tablet to offset cost of 4G enabled tablet
Encouraging Multi-Device Adoption and
Growth

• Verizon have increased their device per account ratio from 2.4 to 2.8 since launching
Shared Data plans in July 2012
• Verizon Q2 results:
• Verizon's Q2 subscriber growth driven largely by 1.15M postpaid tablet additions
• New additions – 304K phone net additions, 1.15M postpaid tablet subscribers
• Verizon – offering extra 1GB data to customer who active tablets on More
Everything plans.
• Currently have 5.4M tablets on its postpaid base – plenty of growth
opportunities
• Verizon Communications CFO said that tablets provide "a very good incremental
value" through increased data consumption and lower churn, noting that LTE
tablets drive more data usage than 3G CDMA smartphones. "We see tablets as a
highly profitable growth opportunity,"
Tablets Driving Growth

• All AT&T & Verizon sign-ups regardless of whether they add additional family
or devices are opted into share plans.
• Voice & SMS are unlimited with the cost per month depending on the amount
of data purchased.
• Each additional device/person added to the pool of data costs a set amount
per month. E.g. Additional Smartphone = $25, additional tablet = $10
• Devices not just limited to smartphone & tablets
• Gaming devices
• Mobile internet enabled camera’s
• Mobile internet enabled laptops
• USB modems
• Connected Car
• Home Sensor equipment
Operators Making Share Plans Default for Post Paid
Additions

• Subscriber can transfer a portion of their
allowance to another subscriber
• Charging Model
• Donor pays per each recipient and based on
the amount of data transferred
• Operator may decide to not charge the
donor or recipient for an initial period to
drive up data adoption %
• A gift can be a once off or can be recurring
• Eligibility Rules
• Bundles may be “Non Sharable”
• Maximum number of beneficiaries per
bundle may be applied
• Sample deployments: Ooredoo Kuwait, Airtel
Ghana, MTN Nigeria and Vodacom SA
Gifting

• Gifting functionality is being used in Africa to drive up data adoption among
feature phone subscribers
• Data adoption in some markets ranges from 20-40% - get more people using
and familiar with data – at no cost to them
• Markets with 80-90% data penetration
• The remaining 10-20% of the base need to be brought into the mobile data
sphere and many of these users will not have a data plan particularly those in
the older demographic.
• This group of subscribers would be receptive to a gift of data from a friend or family
member which will encourage them to sign up to a fixed data plan of their own with
a smartphone where necessary
• Option to share data for a specific purpose – e.g. view photos, videos. Many people
don’t know what data is, but they know what photos or videos of their
grandchildren / friends / family are. Don’t confuse data on it’s own as a product.
• Charging the donor for gifting the data will drive additional revenue for the operator
How Gifting Drives up Data Adoption

• From introduction of shared data plans
just two years ago:
• Shared data plans are now mainstream
• Adding more devices, more services with
more people
• We’re now looking at connecting cars to
plans.
• Data share plans are a success:
• Multi-device ownership - fair option for
customers
• Q1 / Q2 financial results show:
• Increased usage
• Increased share accounts
• Increased revenues
• Increase in number of devices sharing data
• Share plans – can be used to attract new
customers – e.g. group schemes
• Data gifting – enables customers to ‘gift’
data to one another – can encourage
data adoption
• Moves into content sharing – TV, Music
• More complex account structures,
increasing speed of rolling out new
shared services (e.g. want to add 3rd
party music to share?)
• Traditional BSS may struggle…………..
Summing Up

Questions
Send to info@openet.com

How Shared Data is Driving up Usage and Revenues

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How Shared Data is Driving up Usage and Revenues