39839567 Business Plan MVNO Project Final Presentation

8/9/2019 39839567 Business Plan MVNO Project Final Presentation

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MVNO BusinessBusiness Plan


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Agenda MVNO fundamentals

About MVNO Wireless service delivery chain MVNO Business models Why MVNO

Indian maret analysis P!"#

Porter $ve forces Analy%ing MVNO o&&ortunity in India

Our MVNO business model Our business strategy MVNO o&&ortunity frame'or MVNO mareting strategy targeting( &ositioning

MVNO strategy im&lementation &rice( &roduct( &laceand &romotion

)inancial analysis MVNO business riss


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About MVNO

A MVNO is a ty&e of mobile o&erator 'hich o-ersvoice and data services 'ithout o'ning any &artof the net'or infrastructure.

MVNO ty&ically /rent/ both the access net'or

and the trans&ort net'or 0 the mobile s&ectrum(from traditional mobile net'or o&erators and&rovide services under their o'n brand name.


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Wireless service deliverychain

user


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MVNO Business models

MNO MVNO

MVNO

MVNO

MVNE

MNO

MNO

MNO BRANDS

MVNE


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Why MVNO


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Why MVNO


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IN+IAN MA12!#ANA,3"I"


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P!"#


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Porter4s 5 forces

Threat from New Entrants:HighGrowing subscribers basePresence of infrastructureNumerous foreign players areinterested to enter. Increase inFDI will allow foreign players

Buyer Power: HighBuyers demanding greatervariety at lower prices.

Threat of substitution: owNo strong demand for fixed lineittle awareness about !"IPapplications

Su!!"ier Power: Mo#erate#andset suppliers $ave strongbrands e.g. No%ia& 'amsung&Garge (!N" are able to pus$c$eaper brands

$om!etiti%e Ri%a"ry: High(argins are small around )*#ig$ competition is drivingdown voice +,P-.


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ANA,36IN7 MVNO

OPPO1#*NI#3 ININ+IA


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Our MVNO business model

MNOMVNO

MVNO

MVNO

MVNE

MNO

MNO

MNO BRANDS

MVNE


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MVNO Business "trategy

,o' 8AP!9 and OP!9 for $rst fe' years.

,o' $:ed e:&ense and high variable e:&enses.

Align 'ith MVN! for infrastructure needs.

Buy chea& handsets from su&&lier such as Olive.

"ell handset at slightly higher &rice to coverac;uisition cost.

Prevent cannibali%ation of MNO customers.


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MVNO o&&ortunityframe'or


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MVNO Mareting "trategy0targeting

TARGET

SEGMENT

MVNO OFFER

1etailer MVNO ,o' income and credit "im&le &re&aid)ocus on voice and "M"

8able MVNO Mass maret uadru&le &lay bundle

)ocus on convergent o-er

?7 centric MVNO @eavy users of mobiledata

Voice and data bundles)ocus on &remium content


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MVNO Mareting "trategy

TARGET CUSTOMER

*rban youth +istinct mobile needs

More and longer out0bound voice calls

Big calling circles for both maing and receiving calls

,arge users of "M"

Both the earliest ado&ters and highest users ofvalue0added services

@igher usage for both voice and "M" at 'eeends

@igh demand for u&grades

Price sensitive


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MVNO Mareting "trategy 0&ositioning

PR&$E

O' H&(H

!+-+DDI/I"N'N" F,I'


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POSITIONING

VA,*! A++I#ION"

)ree in0net'or calling W!1#3 handset at lo' &rices .

NO )1I,,"

,o' &rices C basic services

"im&le rate &lans.

!asy to understand


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MVNO "trategyIm&lementation FLAT PRICING - 8.9$ (per !n"#

Prep%i

&V!i'e

)irst ?DD mins in

net'or outgoing

free.

)ree incoming

After ?DD minscall charges D.DE5

FGmin.

Out of net'or

call charge D.DHF

One month

validity

Prep%i

&%"%

)ree data &lan

u& to DD MB

After DDMb

D.DJFGMb

P!s"p%i& V!i'e

)irst ?DD mins in

net'or outgoing

free.

)ree incoming

After ?DD minscall charges

D.DK FGmin.

Out of net'or

call charge

D.DHF

P!s"p%i

& %"%

)ree data &lan

u& to DD MB

After DDMb

D.D5FGMb


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PROUCT

Vo#afone $am!us Pa)* Ta"* an# SMS + ,-,,./

Buy t$e !odafone 0ampus Pac% wort$ 12.2 wit$ 2 years validity

0alls to 3 local !odafone numbers 4 5.5521 6 min

ocal '(' 4 5.5521

0alls to local !odafone mobile p$ones 4 5.571 6 min

0alls to ot$er local mobile p$ones 4 5.521 6 min

'/D calls 4 5.581 6 min

xisting 0ampus Pac% subscribers can also opt for t$e new

tariff by doing a rec$arge of 17


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PROUCT

Data !"an in)"u#es

Internet for emails& surfing

0$atting applications wit$in networ% 90-G:.

'('

0ampus applications ; 0alendar application for class and

event sc$edules& announcements


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MVNO "trategyIm&lementation

PLACE

Initially the service is rolled out in t'o Indianmetros

+elhi Mobile customer base E millions

Mumbai Mobile customer base ? millions

#he channels 'e are going to use for distribution'ill be

1etail stores


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MVNO )inancial analysis

ARPU %n%)*sis

Postpaid Voice

Average call rateGmin


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ARPU %n%)*sis

Postpaid Data

Average rateGMb


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ARPU %n%)*sis

Prepaid Voice

Average call rateGmin


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ARPU %n%)*sis

Prepaid Data

Average rateGMb


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ARPU %n%)*sis (per !n"#

Assuming Q5 &ost&aid customers and E5 &re&aidcustomers

A1P* L D.Q5


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Other analysis


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Li+e"ie ,%)ue

0 A8 Ac;uisition cost .DF

0 r Average retention rate ?

0 i Interest rate K

0 M Margin customer generates in year EJ.QF

0 ,#V L JQF

1

MLTV AC

r i=

+


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MVNO Business 1iss

OPERATIONAL RISS

Wholesale ca&acity &ricing &olicy

8oncern about subscriber data

REGULATOR RISS

)oreign direct investment in MVNO

,imits on MNO investing in MVNO

#a: structure on &ro$ts


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MVNO Business 1iss

OT/ER BUSINESS RISS

Mobile number &ortability

@igher churn rate 0R @igher customer ac;uisitioncosts.

Negotiation 'ith education institutions to o-erVA".


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MVNO BusinessO&&ortunitiesFu"ure 0usiness !pp!r"uni"ies

)ully functional MVNO in 50D years.

Provide di-erentiated mobile value added services


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#@AN2 3O*>*!"#ION"S

39839567 Business Plan MVNO Project Final Presentation

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