Mobile Operator Performance Benchmarks

Table of Contents for Mobile Operator Performance Benchmarks

Summary
1 Understanding key benchmarks can help mobile operators to increase revenue and profits
1.1 Global market trends are stifling growth in revenue and profitability
1.2 Operators must focus on the measures that make the biggest difference
2 Few mobile operators are successfully increasing ARPU
2.1 Many mobile operators are finding it difficult to increase ARPU from non-voice services
2.2 Operators must strive to maintain or increase voice ARPU, but most are losing the battle
3 Mobile operators must reduce churn substantially
3.1 Churn is a critical benchmark and controlling churn has never been more important
3.2 Churn varies substantially by country, operator and type of tariff
3.3 Successful operators demonstrate various approaches that can help to reduce churn
4 Mobile operators must look beyond mobile services and home markets
4.1 Mobile operators should consider offering fixed broadband services
4.2 Mobile operators must be selective in the development of their international portfolios
4.3 As the mobile industry evolves, additional benchmarks will become important

Actions

Companies cited in the report include: 3 Italia, Bharti Airtel, BSkyB, China Unicom, Cingular Wireless, Hutchison 3G UK, KDDI au, MTS, NTT DoCoMo, O2 Germany, O2 UK, Orange France, Orange Spain, Orange UK, Sprint Nextel, Telefónica Móviles, TeliaSonera, TIM, T-Mobile, Turkcell, Vodafone Germany, Vodafone Italy, Vodafone Spain, Vodafone UK.

List of Figures and Tables
Table 0.1: Assessment of the international operations of selected mobile operators
Table 1.1: Key performance benchmarks
Figure 2.1: Examples of non-voice ARPU for mobile operators worldwide, quarters ending June 2005 and June 2006
Figure 2.2: Non-voice ARPU for selected mobile operators in developed markets, June 2004–June 2006
Figure 2.3: O2 UK’s non-voice ARPU from SMS and non-SMS services, June 2004–June 2006
Figure 2.4: Average SMS usage per customer and average revenue per SMS for O2 UK, June 2004–June 2006
Table 2.1: SMS bolt-ons offered to postpaid customers by O2 UK, October 2006
Figure 2.5: Relationship between the proportion of 3G subscribers and overall non-voice ARPU for selected mobile operators, June 2006
Figure 2.6: Voice ARPU earned by selected mobile operators, quarters ending June 2005 and June 2006
Figure 2.7: Examples of voice ARPU for mobile operators in developed markets, June 2004–June 2006
Figure 2.8: Examples of total ARPU trends for mobile operators in developed markets, June 2004–June 2006
Figure 2.9: Examples of voice usage trends for mobile operators in developed markets, June 2004–June 2006
Figure 3.1: Examples of churn levels for mobile operators worldwide, quarters ending June 2005 and June 2006
Figure 3.2: Churn levels of prepaid and postpaid customers of selected mobile operators in developed markets, quarter ending June 2006
Figure 3.3: Pro rata annual churn levels in Japan, quarters ending June 2004 to June 2006
Figure 3.4: Vodafone UK ’s pro rata annual churn for postpaid customers, quarters ending March 2005 to June 2006
Table 3.1: Examples of incentives offered with longer-term contracts for Vodafone UK’s postpaid tariffs, October 2006
Figure 3.5: Proportion of prepaid customers for Telefónica Móviles and Vodafone in Spain, June 2002–June 2006
Table 4.1: Examples of mobile operators leading the way with fixed broadband services, October 2006
Table 4.2: Assessment of the international operations of selected mobile operators
Table 4.3: Telefónica Móviles’ European mobile operators, in order of OIBDA margin, June 2006
Table 4.4: T-Mobile’s international mobile operators, in order of EBITDA margin, June 2006

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