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How is MVNO:s changing MNO:s acquisition & retention and more…From a personal perspective

Freddy Lundmark, MVNO Products & Service Delivery ManagerMay 14, 2009 at the MVNO Industry Summit 2009

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The Next 25 minutes...

• Change of MNO Acquisition & Retention Strategies?

• Can both go after the same customers? Who will win out and why?

• Richer Service Environment vs. Low-Cost-No Frills?

• Why does MNO:s negotiate at all?

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Freddy LundmarkMVNO Products & Service Delivery Manager

• Europolitan

• Europolitan Vodafone

• Vodafone

• Telenor Sweden

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Understanding today's situationby understanding the past...

• Original Wholesale Strategy

• Regulator

• Over-capacity - What a word!

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"If you can't beat them - join them and make some money on it! Turn it into an profitable affair!"

Europolitan's orginal Wholesale "Strategy" in 2001

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Terms...so that you know what I mean when saying...

• Mobile Virtual Operator (MVNO)

• Service Provider (SP)

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What's the difference..?

• Freedom vs. Simplicity

• Investments vs. Pay-as-you-grow

• Term used will be MVNO for both

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Where does this leave us now?How is an MNO influenced by an MVNO?

• First reaction...

• Second reaction…

• Now – here we are. What do we do now?

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Service Environment vs No-frillsHow to do as MNO?

• Brand Power!

• What can I do that my virtual competitor can't?

• Brand preference?

• Is this our customers?

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"It's in the long term a Dead-End trying to emulate the No-Frills, Low-Cost business model for an MNO"

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What about the MVNO then?What shall they do?

• Yes! It is important!

• Emotional Driven Business Decisions

• Help the Wholesale Department to Convince

• Confidence and trust is very important

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Can Both Go After The Same Customers?Who will win out & why?

• Yes & No

• Yes - It's possible

• No - It's not good business

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"Hey There - Come to us! We are on xxx: network - the same network as you have today! You will have the same network feeling and coverage as today but you will pay less!"

Real World argument heard from on an MVNO

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“We don’t believe in our Brand Strength and Core Proposition ourselves either so let’s do a copy-paste on our host and use their Brand Strength"

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"You want some more functionality. OK! - Tricky, lot to do internally - Can't promise anything…

By the way - your Wholesale prices must be increased due to market fact A, B and C. Don't call us - We'll call you!"

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“The MNO will probably always win this kind of battle - they control

THE MOBILE NETWORK!”

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It takes two to Tango!MVNO Part

• Who's your customer

• Get to know them inside - out!

• Team up with small MNO

• Money & Time

• Long-Lasting partnership

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It takes two to Tango!MNO Part

• Trust your Brand Strength

• Myth of Cannibalization

• Is my Brand the right Brand?

• Is someone else doing this better than me?

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MVNO:s as a Pressure GroupWhy does MNO:S negotiate?

• Early Stage - Window of Opportunity

• Grow Base in mature market = Buy Customers from Competitor

• Money Talks

• Bottom Line

• Business on the Margin

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"What choice do I have?”

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"To have the competition AND the revenues or only the competion - that's what I have to choose from!"

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Welcome to Telenor…if your are planning to expand your Business to Sweden