UMA Today Magazine: Home Zone Issue (Spring 2008) Page 30

For subscribers using third-party broadband, there is

value for the operator to develop a branded Wi-Fi router
to be used in conjunction with the subscriber's existing
in-home network. T-Mobile's branded Wi-Fi access points
serve as a strong model. Placing a branded access point
in the home offers an additional element of `sticky-ness,'
as well as providing an element of operator control for the
HZ2.0 offer.

Service reSTricTionS

A goal of the HZ2.0 service deployment is to maximize

subscriber uptake. Introducing as few service restrictions
as possible enables the widest possible target market. How-
ever, other service objectives, as well as the market position
of the operator, may dictate unique service restrictions.

Broadband Connection

A common service restriction

for a HZ2.0 service pertains to the broadband access line
used to deliver the service.

An operator should make the service available for use on

any broadband access connection, regardless of provider, to
reach the widest number of potential subscribers.

However, some operators have launched HZ2.0 services

targeted only at existing broadband and mobile subscrib-
ers. While sufficient for initial launch, this tends to unduly
restrict the total number of potential subscribers.

To provide service to an entire market, operators must

consider the consumers' different broadband situations.
For the purpose of this discussion, we will segment potential
HZ2.0 subscribers into three categories (from Figure 1):

Those with the operator's own broadband service

Those with broadband service from another provider

Those with no broadband service

It is possible to craft a service offer to appeal to all three

subscriber types (Figure 2).

First, determine a service rate for example $20/month.

This becomes the service price for subscribers using a com-
petitive broadband service. These subscribers are taking a
single service (mobile) from the operator and therefore de-
serve no added incentive for the HZ2.0 service.

Then, adjust the offer as an incentive for the operator's

own broadband users. There should be a benefit in taking
two services from the operator (mobile and broadband). In
this example, the subscriber gets a discount on the HZ2.0
offer, paying just $10/month.

Finally, for subscribers with no broadband or who are

willing to switch broadband providers, there should be an
additional incentive to take the operator's own broadband
service. In this example, the offer may include three or six
months free broadband with sign up. In addition, the $10/
month bundled HZ2.0 service rate also applies.

It is possible to meet the needs of all three broadband sub-

scriber types while making the service available to the wid-
est range of mobile subscribers. It's a win-win situation.

Usage Locations

The ideal HZ2.0 service offer extends

beyond the home. The competition from VoIP providers is
any location with broadband and Wi-Fi.

HZ2.0 offers based on Wi-Fi technology have many

service location considerations. Should the HZ2.0 plan
be available to subscribers in the home? Only on specific
Wi-Fi access points? In the office? At 3rd party hotspots?
From Wi-Fi locations outside the home country?

An operator can grow this as much as is prudent. T-Mo-

bile US decided to be aggressive, enabling HotSpot @Home
subscribers to receive service from any Wi-Fi access point,
anywhere in the world.

Service ADDiTionS

The focus of most HZ2.0 service plans has been on dis-

counted calling from within the zone. For consumers, the
position of a mobile phone that "works better, costs less" is
an easy concept to grasp.

However, there are opportunities for operators to add

features and benefits to the basic Home Zone plan to make
the offers more attractive.

Data plans

HZ2.0 is not only for voice. Subscribers typi-

cally have a per-byte data service fee associated with their
mobile plan. The operator can offer unlimited flat-rate
data access within the zone as well. Telia has pioneered
this with its HomeFree service offer, which offers unlim-
ited packet data service access when subscribers are con-
nected over Wi-Fi.

International calling

Some operators, such as Orange,

offer an additional incentive to HZ2.0 subscribers by add-
ing unlimited calls to fixed lines in several other countries
(typically Western Europe and the US). The service goal is
to increase mobile usage, and this is an example of adding
incentives to make the mobile phone the only phone.

UMA ToDAY

SPRING 2008

MARKET TRENDS