Emerging Ops Track MVNO Outlook

Jean BarretteGeneral Manager, Products

Bell Mobility

Virtual Lessons Learned

MVNO Business and Partnering Strategies

Emerging Ops Track MVNO Outlook

About Bell Mobility

A division of Bell Canada – Bell Canada of Parent

BCE– largest corporation

in Canada

More than 5 million subscribers (33% market share)

National CDMA network

Over $3 billion in annual revenue

Leader in innovative wireless offerings for

consumer, business and wholesale customers

Emerging Ops Track MVNO Outlook

2003, The Hard Realities

Highly competitive Canadian market

Bell Mobility market share challenged

Industry consolidation bumped Bell Mobility from

#1 subscriber position

Conservative brand – limited appeal in some high

growth segments

Needed to revitalize, recreate and evolve

Emerging Ops Track MVNO Outlook

Analysis

– Marketing strategy

– Market share

– Advertising reach

– Brand SWOT

– Distribution SWOT

– PrePaid/PostPaid mix

– Partnership opportunities

– Bell Mobility needs to

aggressively pursue

youth market

– Need to stimulate

mindset change,

marketing strategies

and approach

Review of key internal indicators …

Concluded that:

Emerging Ops Track MVNO Outlook

Changing Traditional Mindset

MVNO – a positive competitive opportunity

– Leverage a recognized brand with complementary

attributes

– Network becomes the product (MVNO)

Virgin Mobile

Canada (MVNO)

+

Bell Mobility

(MNO)

Emerging Ops Track MVNO Outlook

Virg

in M

en

u

Leverage established brand to target youth market– Building teams with young and innovative resources

– Bold, bright colors, creative packaging

– „Themed‟ YOUTHENIZED advertising

– Simplified language and product offering

– Introduced new, fun handsets

– New Products

• Free Text

• Push to Talk

• MSN messaging

• Ring back tunes

• Games

• Video

Virgin Mobile – The Inspiration

Emerging Ops Track MVNO Outlook

Success in reaching youth market through both Virgin and Bell brands

Stimulated new thinking, drives new mindset

Reviewed existing partnerships, create new ones

Energized teams

Heightened level of energy and creativity from internal resources

Increased aggressiveness and innovation in product offerings and value added services

Some Result

Emerging Ops Track MVNO Outlook

Operator Lessons Learned

Deal Structure

– Pick your partners carefully

– Use win-win structure to focus the partnership: complement and differentiate

– Executive support and operational rules of engagement

– Plan to change the game

– Plan the next steps

– Plan an exit

Pre-launch

– It is never as simple as you think. Are you MVNO ready?

• Service Layer, CRM, Enterprise Application Integrations for example

– Clear view of what the end state is will drive how to get there

– Choose your vendors wisely

Post launch

– Change Request and clear “Rules of Engagement” to avoid conflicting priorities

• For example human and financial resource allocation

– Attitude change and increased focus

– Plan for growth, it does not stop after launch

– Cost effective differentiation

Emerging Ops Track MVNO Outlook

Sprint-Nextel

US MVNO Landscape

Verizon

Cingular

OthersSprint-Nextel

MVNO Examples

Mobile PCS

U Mobile

Disney Mobile

9278 Mobile

GSR Mobile

STI Mobile

Virgin Mobile USA

ZUMA Prepaid

Wireless

Liberty Wireless

Movida

Communications

ESPN

Kajeet …

MVNE Examples (ZTAR)

7-Eleven Speak Out

Bratz Mobile

Circle-K "Talk-and-Go Mobile

MVNO Examples

Cool.Prepaid

Firefly Mobile

NET10

TuYo Mobile

Cingular

Verizon

MVNO Examples

Amp'd Mobile

EarthLink

Helio / SK Earthlink

IDT

Page Plus

RockitTalk

…

Illustrative US Market Share

Emerging Ops Track MVNO Outlook

Generic MNO/MVNO/MVNE Outcomes

MNO MNO

MNO MNO

MNO MNO

•MNO’s, MVNO,s, MVNE’s Grow

•MVNO’s grow more than MNO’s

•MNO’s grow, MVNO’s and

MVNE’s grow but consolidate