New ways of doing business in the telecommunications sector
The French oper
29.90 euros, it offered Internet access up to 20 Mbps, fix
ator SFR launched its own quadruple play in April, 2007: for
package of 36 TV channels and outgoing wireless calling, albeit with nume
ed-voice calling, a
rous restrictions (limited geographical range, etc.)
312
.
-
I
virtual wireless v
n February, Jazztel
313
signed a contract with Orange
314
to offer complete
ces in a single bill.
oice services in Spain by consolidating quadruple-play servi-
The reason for the modest supply of these packages lies in the concern on be
half of operators and service providers about their profitability. First, insofar as
-
they entail discounts for customers, the profits are lower
(from 50 to 419 euros). A
peting offers, being a defensiv
t the same time, they can lead to “w
, with a high sales cost
ar” between com-
profitabilit
e weapon in the short term but with questionable
operators
y in the medium term. Therefore, it seems to make more sense for the
expanding their r
, taking advantage of the opening up of the mobile mark
lue and that gener
ange of offers with inno
ate higher profits.
vative services that offer customers v
et, to focus on
a-
8.1.5. Advertising in business models
T
their networks (for example, selling minutes and data access to their cus
raditionally, operators’ business has been mainly based on managing traffic on
tomers). Howev
-
business models are being threatened b
er, with companies like Google entering the market, the old
work access.
y ad-based models that include free net-
312
Triple play and service bundling:
John Delaney and Marta Munoz
strategies in the European market.
Mendez-Villamil. Ovum. June 2007.
not new
The idea of offering telephone services for free in ex
315
change for accepting ads is
fering users free national fix
. In 1997, the compan
ed-line service in ex
y Gratistelefon tried its luck in this area, of-
313
http://www
Jazztel:
.jazztel.com/.
ond ad at the start of each call (one minute later another ad came on, then an
change for listening to a 10-sec-
other after two minutes). The Norwegian operator
-
314
Orange: http://www.orange.es/.
315
and
service, but neither of the two had much success. Currently
Telenor
,
316
Orange France
offered a similar
317
Mobile Services. Why Ad-Sponsored
The Prospects For Ad-Funded
Mobile Voice And SMS Won’t
which customers receiv
Vodafone UK are trying out similar models for wireless v
e games and other free downloads sponsored b
oice services in
y ads.
Michelle de Lussanet and Lauriane
Disrupt the Market. Niek van Veen,
Camus. Forrester. November 2007.
for its Sugar Mama plan, which features free, ad-sponsored calls.
Meanwhile, Virgin Mobile has managed to get 330,000 customers to sign up
316
http://www
Telenor:
.telenor.com/.
Despite all the buzz about this kind of business model, it
current data and forecasts on profits in order to get an idea of the viabilit
’s enough to examine the
317
http://www
Orange Fr
.or
ance:
ange.fr/.
models funded entirely b
nications companies will get less than 2.5% of their rev
y advertisements. The forecasts show that telecommu
y of
enue from advertising.
-
© 2008 Fundación de la Innovación Bankinter. All rights reserved.
153
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