CTIA 2006, "Virtual Lessons\'s Learned - MVNO\'s in Canada", Jean Barrette, Speaker

1. Virtual Lessons Learned
MVNO Business and
Partnering Strategies
Jean Barrette
General Manager, Products
Bell Mobility
MVNO Outlook
Emerging Ops Track

2. About Bell Mobility
 A division of Bell Canada – Bell Canada of Parent
BCE– largest corporation
in Canada
 More than 5 million subscribers (33% market share)
 National CDMA network
 Over $3 billion in annual revenue
 Leader in innovative wireless offerings for
consumer, business and wholesale customers
MVNO Outlook
Emerging Ops Track

3. 2003, The Hard Realities
Highly competitive Canadian market
Bell Mobility market share challenged
Industry consolidation bumped Bell Mobility from
#1 subscriber position
Conservative brand – limited appeal in some high
growth segments
Needed to revitalize, recreate and evolve
MVNO Outlook
Emerging Ops Track

4. Analysis
Review of key internal Concluded that:
indicators …
– Bell Mobility needs to
– Marketing strategy
aggressively pursue
– Market share youth market
– Advertising reach
– Need to stimulate
mindset change,
– Brand SWOT
marketing strategies
– Distribution SWOT and approach
– PrePaid/PostPaid mix
– Partnership
opportunities
MVNO Outlook
Emerging Ops Track

5. Changing Traditional Mindset
MVNO – a positive competitive opportunity
– Leverage a recognized brand with complementary
attributes
– Network becomes the product (MVNO)
Virgin Mobile
Canada (MVNO)
+
Bell Mobility
(MNO)
MVNO Outlook
Emerging Ops Track

6. Virgin Mobile – The Inspiration
 Leverage established brand to target youth market
– Building teams with young and innovative resources
– Bold, bright colors, creative packaging
Virgin Menu
– „Themed‟ YOUTHENIZED advertising
– Simplified language and product offering
– Introduced new, fun handsets
– New Products
• Free Text
• Push to Talk
• MSN messaging
• Ring back tunes
• Games
• Video
MVNO Outlook
Emerging Ops Track

7. Some Result
Success in reaching youth market through both Virgin
and Bell brands
Stimulated new thinking, drives new mindset
Reviewed existing partnerships, create new ones
Energized teams
Heightened level of energy and creativity from internal
resources
Increased aggressiveness and innovation in product
offerings and value added services
MVNO Outlook
Emerging Ops Track

8. Operator Lessons Learned
 Deal Structure
– Pick your partners carefully
– Use win-win structure to focus the partnership: complement and differentiate
– Executive support and operational rules of engagement
– Plan to change the game
– Plan the next steps
– Plan an exit
 Pre-launch
– It is never as simple as you think. Are you MVNO ready?
• Service Layer, CRM, Enterprise Application Integrations for example
– Clear view of what the end state is will drive how to get there
– Choose your vendors wisely
 Post launch
– Change Request and clear “Rules of Engagement” to avoid conflicting priorities
• For example human and financial resource allocation
– Attitude change and increased focus
– Plan for growth, it does not stop after launch
– Cost effective differentiation
MVNO Outlook
Emerging Ops Track

9. US MVNO Landscape
MVNO Examples MVNO Examples
Mobile PCS Amp'd Mobile
U Mobile EarthLink
Disney Mobile Helio / SK Earthlink
9278 Mobile IDT
GSR Mobile Page Plus
Illustrative US Market Share
STI Mobile RockitTalk
Virgin Mobile USA
ZUMA Prepaid
Wireless
Sprint-Nextel
Liberty Wireless
Sprint-Nextel
Movida
Communications
Others
ESPN
Kajeet …
Verizon
MVNE Examples (ZTAR)
7-Eleven Speak Out
Bratz Mobile
Circle-K quot;Talk-and-Go Mobile
…
MVNO Examples
Cool.Prepaid
Firefly Mobile
Verizon
NET10
TuYo Mobile
Cingular
Cingular
MVNO Outlook
Emerging Ops Track

10. Generic MNO/MVNO/MVNE Outcomes
•MNO’s, MVNO,s, MVNE’s Grow MNO MNO
•MVNO’s grow more than MNO’s
MNO MNO
•MNO’s grow, MVNO’s and MNO
MNO
MVNE’s grow but consolidate
MVNO Outlook
Emerging Ops Track