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Wednesday, January 25, 2006

Innovation in mobile business model - early days

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With news yesterday of Vodafone's ARPU levels under pressure in its major markets from stiff competition and regulatory drives to cut prices, and a recent report showing mobile operator staff muddled by their own tariffs (http://www.theregister.co.uk/2006/01/06/unhappy_cellcos/) it's interesting to see (below) some examples of service innovation - old-style and new.

The first is a good old-fashioned innovation in marketing promotion, the second is a first tiny step towards opening up the value chain (in this case to advertisers) and innovating with the fundamental business model.

NB: Subscribers to our monthly IMS Insider report (www.ims-insider.com) will have seen how the latter concept can be dramatically expanded, using IMS and IMS-type systems, to create multi-faceted high revenue-generating propositions (see our flagship movie rental proposition scenario).

1.) 3 Customers to get Paid for Calls
Source: BWCS Staff, www.bwcs.com

"3 UK, the Hutchison-Whampoa-backed Greenfield 3G operator, is to launch a new service which will pay customers for receiving voice calls and text messages.

The new service, christened “WePay”, will reward customers with a £0.05 per minute credit for calls received and £0.02 for each text received, customers will then be able to spend the credit on their 3 service at any time in the 30 days after the call or text has been received.

The company plans to introduce the service to its 3.2 million UK users next month. In a statement it said that it will use “WePay” to reward loyal customers by giving them free airtime to spend on texts, calls, music or mobile TV services.

According to 3, by receiving a five minute call, customers will rack up enough credit to watch a highlight from their favourite TV show (if it is available via mobile) or to send two text messages."

2. ) Mobile ads to pay for free texting
By Tim Richardson, The Register. Original URL: http://www.theregister.co.uk/2006/01/23/mobile_ads/

Mobile phone users are being offered the chance to send text messages for free in return for viewing ads on their phones. The service is due to be unveiled later this month with the firm behind it busy recruiting punters to take part in beta testing. Exactly how many free texts peoplewill receive depends entirely on how many advertisers are prepared to give away.

I-movo - a mobile marketing company whose clients include Nectar and All Bar One - has hooked up with mobile technology provider i-text to launch the service.

"In an industry where results are typically difficult to quantify, this system is set to provide some real benefits," said i-movo md David Tymm. "It goes way beyond the traditional 'pay per click' models established by search engines to provide much greater measurability of all advertising success."

Elsewhere, research from Strategy Analytics found that one in five mobile users in Europe would consider ditching their landline altogether and stick instead with their cellphone.

One in five homes in Europe is already "mobile only", says the report, and cellcos should be encouraged that such a large numbers of punters would consider pulling the plug on their fixed line phone.

But the research found that those most likely to cut their ties with a fixed line operator were younger people - especially if the cost of calls fell to landline rates. Older peeps and those with families were more likely to plump for triple pay services.

"We found massive interest in the ability to call from home on your cellphone at landline rates, something both cellular operators and fixed-mobile operators can offer," said David Kerr, a VP at Strategy Analytics." (Original URL: http://www.theregister.co.uk/2006/01/23/mobile_ads/)


The Editor, IMS Insider
editor@ims-insider.com
www.ims-insider.com


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