avantmobile_momomoscow

8/6/2019 AvantMobile_MoMoMoscow

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Content, Networks and Next GenServices: Competing in the era of Convergence

Kirill Polyakov

Member of Board, Avant Mobile JSC



2

Pace of change in mobile is accelerating

Customers

Regulation

Competitors

Technology

VoIP

WiFi/WiMax

DSL

Integrated

fixed/mobile

Internetplayers

Termination rates

Licensing rules

Mobile payments

Growing choice of services

Value and simplicity

Converged mobileinternet broadband

offerings

Mobile

Industry



3

It’s Real!!!

Source: Verisign



4

Would Avant Mobile retain its leading

positions in the future?

Customer gets far more choices and sets rules of the game

The ecosystem is changing fast

–Content

–Access

–User experience

–Monetization

Customer needs

–Changing communication needs

–Simplicity

–Value for money



5

Market Market

Offer Offer

VoiceVoice

DominatedDominatedMultipleMultiple

ServicesServices

Market Market

StructureStructure

Few players/Few players/

RegulatedRegulated

Fragmented/Fragmented/

Deregulated/Deregulated/

Highly CompetitiveHighly Competitive

AA

BB

CC

DD

voice-relatedvoice-related

voice-relatedvoice-related

person-relatedperson-related

person-relatedperson-related

lifestyle-relatedlifestyle-related

lifestyle-relatedlifestyle-related

The opportunities for changing the customer value

proposition will depend on the market conditions



6

How new Internet “goods” would affect rules of the

game?

Internet model Mobile model

Users

2 bn

1 bn

Free content fundedby advertising

Google rules

Mobile operatorsand content

providers loosepower

Subscription basedpaid access to

contentMobile operators

and contentproviders rule

Mobile

Internet



Voice was the fuel of mobile world. Lessons

from fuel retail industry

Market Market

Offer Offer

FuelFuel

DominatedDominated

MultipleMultiple

ServicesServices

Market Market

StructureStructure

Few players/Few players/

RegulatedRegulated

Fragmented/Fragmented/Deregulated/Deregulated/

ighly Competitiveighly Competitive

AA

BB

CC

DD

• Establishing NetworkEstablishing Network• ““OilCo Push”OilCo Push”

• Establishing NetworkEstablishing Network• ““OilCo Push”OilCo Push”

• Fuel differentiationFuel differentiation• ““Consumer Pull”Consumer Pull”

• Fuel differentiationFuel differentiation• ““Consumer Pull”Consumer Pull”

• Efficient channels of tradeEfficient channels of trade• Distribution effectivenessDistribution effectiveness• Price CompetitivenessPrice Competitiveness

• Efficient channels of tradeEfficient channels of trade• Distribution effectivenessDistribution effectiveness• Price CompetitivenessPrice Competitiveness

VolumeVolumeVolumeVolume

MarginMarginMarginMargin

ProfitabilityProfitabilityProfitabilityProfitability

StrategicStrategicFocusFocus



Adding “dry goods” to a standard fuel (voice!!!)

offering is an excellent example to learn from

PumpPump

outsideoutside

a storea storeAttendantAttendant

ServiceService

Un-mannedUn-mannedKioskKiosk

ShopShop

timetime

R e t ai l s o ph i s t i c a t i on

R e t ai l s o ph i s t i c a t i on

DestinationDestination

One Stop ShopOne Stop ShopWe are here!!!



Strategic Aspiration: Customer Needs

Cheap “est”

Hot “est”Easy “est”

Big “est”

(lowest prices)

(service)

(selection)

(fashion)

Black Hole



The importance of convenience

Cheap “est”

Hot “est”

Easy “est”

Big “est”

(lowest prices)

(service)

(selection)

(fashion)

Black Hole

Quick “est”



“EST” Retailing

• EasyEST retailers:

– create ideas

– provide assurance (having what the customers want, in-stock, and

providing guarantees)

– offer an enriching experience

– provide information to help customers understand their options andmake decisions easily

– focus on efficiency for the customer through:

- the clarity of offer

- appropriately edited assortments

- well merchandised and accessorised presentations

- a transparent shopping experience.

They are organised for people who know what they want



Strategic Aspiration: Delivery

• Focus on 5 critical factors essential to deliver this aspiration.

• Retailers call them the 5 C’s of consumer efficiency:

- Checkout: this is the last moment of truth with the customer. Nothing wastes customers

perceived (or Real) time more than inefficient handling at check out

- Clarity: in terms of what you offer and stand for

- Choice: edited to be just right

- Control: allow the customer to be in control and have the options to be in control

- Communications: making sure the right message gets to the customer at the right time

• Currently the key Checkout process in our industry is cumbersome (premium

SMS). Hopefully situation will change to better with wider adoption of more

convenient subscription payments



Summary

• Avant Mobile can retain it leading positions only in cooperation

with operators, Internet companies and other content providers

• “Mobile” business model with subscription based payments will

prevail when Internet and Mobile converge

• Customer is a king. We should learn from retail industry to serve

customer needs. British Petroleum is a good teacher

avantmobile_momomoscow

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