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UMA ToDAY
SPRING 2008
MARKET TRENDS
an HZ2.0 offer may focus on lower-cost mobile services as
an inducement for consumers to sign up or switch to the
operator's broadband service.
If the service objective is to acquire new mobile subscrib-
ers, or to increase usage/ARPU with existing subscribers,
or the mobile operator does not have a fixed broadband
network, then the service must reach the widest possible
market. In this case, an HZ2.0 offer that runs over any
broadband access network lets subscribers with other
broadband providers move to the operator's mobile plan.
keY oFFer DiMenSionS
By understanding an operator's market position and
service objectives, it is possible to begin evaluating
different dimensions of an HZ2.0 service. The different
facets of an offer can be modified or adjusted to meet
specific goals.
Basic Offer Structure: New Plan or Add-on Plan
There
are two basic approaches for structuring a HZ2.0 service
offer: (i) create a new set of mobile service plans that
includes HZ2.0 capability or (ii) make HZ2.0 an `add-on'
feature to existing mobile service plans.
The latter simplifies the customers' decision process.
Rather than evaluating an entirely new mobile service
plan, the subscriber can simply decide to add the HZ2.0
feature to their existing plan at a nominal monthly fee.
This is the approach HZ2.0 leaders, such as Orange,
T-Mobile and Sprint, have taken with their service
launches.
easy to
address
difficult to
address
broadband
mobile
My Mobile
Other Mobile
No Mobile
No BB
Other BB
My BB
Market Position
Figure 1: A model to evaluate an operator's relative broadband (BB) and mobile market positions