The SIM as a channel to Value Added. Services in the CDMA World. Natalia Fakhri Director Sales & Marketing Latin America South
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1 The SIM as a channel to Value Added Services in the CDMA World Natalia Fakhri Director Sales & Marketing Latin America South
2 Agenda The Latin American mobile market challenges How can the SIM help Replicating the SIM VAS success in the CDMA world Current Status
3 The Latin American Mobile Market Challenge 1) 80% Prepaid Subscribers 2) High end customers already served- protect against churn 3) Opportunity to grow Market Share in the low end market
4 The SIM is a powerful tool to improve CDMA operators value proposition
5 How can the SIM help?
6 SIM VAS strategy: Opex reduction SIM Care Service Booster Auto device configuration Opex reduced by replacing expensive network or handset upgrades with SIMple applications Non revenue generating traffic Customer Care, Device Configuration, Notifications / Info Prepaid Top Up operations Scratch cards costs Distribution / logistics and losses Retailer commissions Promotion / advertising Use of diverse media for promoting services / offers Effectiveness Activation process / logistics Managing inventory / distribution costs Roaming procedures Preferential roaming, Roaming agreements, Notifications Customer care Cost of customer care OSS costs M Top Up Peer2peer top up Service Booster Self Service Provisioning Service provisioning Assisted roaming SIM Roamer Roaming handler Service Booster QoS Manager SIM care
7 SIM VAS strategy: ARPU Enhancement ARPU is maximized by effectively SIMplifying services SIMGO IOD Super / Group SMS SIMapse (Instant Messaging) A complementary offer to Enhance SMS revenue Enhance Voice revenue Jumbo Phone Book Missed Calls Tracking Multiple subscription LDAP
8 SIM VAS strategy: Churn Reduction Churn is reduced by offering services that are addictive to the user Offer services from 3 rd parties that the user is already loyal to A tailored offer Safeguard loyalty of high ARPU corporate users M-Banking Co-branded services SIMapse (Instant Messaging) Jumbo Phone Book SIMSave CCAD LDAP SIMClick Improve your quality of service for roamers Preferred roaming Assisted roaming SIM roamer / Easy Roam Missed Calls Tracker Service / Info Booster
9 SIM VAS Strategy Looking further The SIM as a complement of the Open OS devices Device Personalization, triggered from and eventually stored into the SIM, enables to deploy automatically the appropriate setup onto the handset. WAP settings, settings CSD, EVDO settings MMS settings Device Branding from the SIM could enable to deploy automatically the appropriate MNO s universe of services. Popping up at power-up Presentation of MNO s services at Home Page As stored in the SIM, automatically pushed to a new device the subscriber may use Remember and control subscriber s personal data and selection of services Tracking the usage of services and storing it into the SIM Single phone book, always synchronized In order to stimulate service usage ( MyPreferredServices)
10 Replicate SIM VAS success in the CDMA World
11 SIM toolkit proven results.at TIM Peru Source: TIM Peru s presentation at Caricam Puerto Rico Nov 2003
12 ARPU Enhancement Case study Italy
13 ARPU Enhancement Case study Italy Missed Call Tracker (Te ligou)
14 ARPU Enhancement Case study T-Mobile - UK IOD Services Launched Football News & Scores service with T- Mobile UK Blue is 4040 usage, Green is STK usage Blue spikes are result of text stimulations Growth and volume being driven by STK menu 95% of overall volume is derived from STK menu
15 Churn Reduction Case study Prague Customers with at least 2 SIM VAS have 25% higher retention rate The SIM is a very strong retention tool subscribers perceive SIM VAS as very complicated to deactivate and transfer to other operator SIM VAS with high retention rate: Corporate SIM applications Mobile Banking Dual subscription SIM 130,000 Mobile Banking subscribers have never churned away ever since they activated the service
16 Current Status
17 Status of the R-UIM today 15 Operators WW started R-UIM or considering future roll-out Large Portfolio of Handsets available in the market 22 R-UIM CDMA handsets vendors including Motorola, Samsung, LG, Nokia, Kyocera, ZTE, Sanyo, Toshiba, TCL, Large portfolio of R-UIM cards available 32k, 64K, 128K, UTK/CCAT, OTASP/OTAPA, Large PRL file, HRPD EV-DO Dual Mode Cards for Inter Standard Roaming 3GPP2 Enriched and numerous contributions Samsung SCH-X339 LG Kyocera CU6260 KZ-850 Sanyo SCP-580 ZTE MC310 HRPD, 3G Phonebook Interoperability tests performed with Chipset Vendor (Qualcomm)
18 What s next for R-UIM? Multiple Applications R-UIM Cards Global Platform enabled RUIM smart Card Main Drivers: M-Commerce, PKI and WIM Security, Inter-standard Roaming, DRM Multiple Security Domains Third Parties (Banks, Credit Card companies) can manage credit applications on the card Each partner entity is allocated its own security domain Requires Payment infrastructure Possible M-commerce take-off and Revenue sharing Subscriber loyalty programs Takes experiences from Payment Schemes smart Card roll-out and Certification programs
19 Questions? Thank you!
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