Across the world, MNOs find themselves grappling with two easily recognisable types of competitors.
- The first type is traditional competitors - existing and new entrant MNOs and MVNOs playing in the same market space, all competing for market resources, customers and profits.
- The second type comes in the form of OTT frenemy communications apps such as WhatsApp, Facebook, Skype, Facetime. OTT communication apps make the package of mobile device and mobile service more valuable to end customers paying the MNOs' monthly bill (friend), but also gain a free ride on the MNO's network, consuming spectrum and diverting voice and messaging revenue away from the MNO (enemy).
To this competitive set, a third form of competitor is emerging in the form of an asymmetric competitor. On the surface, this competitor looks like a standard MVNO - a traditional competitor. However, the asymmetric competitor has a very different approach to entering and establishing itself in a market.
The threat to established MNOs from this type of competitor is real and needs to be addressed by those MNOs not wishing to lose a significant portion of their base over time (as airlines have, to no-frills operators, for example). This report describes the nature of the threat and what MNOs need to do to minimise the risks to their own future revenues.
Companies: FreedomPop, VimpelCom, British Airways, Ryanair, Uber, Spotify, Netflix, Harvard Business School, Tesla, Apple, Honda, Aldi, Axiata, Skype, Clearwire, Atomico, Lightsquared, Sprint, Intel, WhatsApp, Dish, LetterOne, Three UK, MasMovil, Reliance Jio.
Countries: UK, USA, Spain, India, Europe, South East Asia.
Table of Contents
- 2.1. Background to the Report
- 2.2. Report Content
- 2.3. Currency and Conversions
- 2.4. Further Questions and Feedback
3. Understanding Disruptive Innovation
- 3.1. Defining Disruption
- 3.2. The Disruptive Innovation Process
- 3.3. Ryanair - Disruption Theory in Practice
4. Exploring FreedomPop
5. Why MNOs Invest in FreedomPop
- 5.1. Pressure on the Classical MNO Business Model
- 5.2. LetterOne's Rationale
- 5.3. Axiata's Rationale
- 5.4. FreedomPop's Current MNO Overlap (by Investment)
6. How FreedomPop Makes Money
- 6.1. Three Price Levers
- 6.2. Upselling Customers
- 6.3. ARPU Estimate for FreedomPop
- 6.4. Disruption Achieving Low-end Market Dominance
7. Competing With Freemium Challengers
- 7.1. Innovative Non-diluting Offers
- 7.2. Re-engineering Sales
8. Conclusions and Recommendations
- 8.1. Conclusions
- 8.2. Recommendations
- 8.2.1. Prepare for Low-end Competitors
- 8.2.2. Erect Barriers to Low-End Disruptors
Appendix - Feedback Questions