# | Video | Duration |
---|---|---|
1 | Invoicing of ICT sector | 02:59 |
2 | The big numbers of ICT sector | 05:51 |
3 | Service mobile definition | 02:57 |
4 | Mobile service market | 04:28 |
Part IV: Mobile service market
What is the value chain? If we analize a little the diagram above, what we first found is that there is a whole market which is called terminal equipment.
Second point: commercialization of service. The shop where you go to buy the terminal or, even, the Internet. Simyo, for example, is one of the virtual operators, we will see them later, that has decided not to invest a single euro for having a distribution network that it is not the Internet one. Then, we have the home network, the transit network, the destination network and the terminal equipment, again.
It is a representation of what we could call the value chain. We can see that it is dominate by a few logos that appear in all parts of this chain.
What could we say then about this subsector? It is the biggest one in income by far, as we have said before, at the beginning of the presentation. It decreases by 4% every year. But it has a thing inside which is called mobile Internet and it is growing in a drastic way. The number of mobile lines is still growing, as I have said before. The exclusive lines of dates, the ones of the vending machines for example, are still growing significantly and the figure of a virtual mobile operator, as the ones we have said before: Pepefone, Simyo… have started to have a significant weight in the market.
Penetration of mobile services in the population, in 2011, ended up with almost 127 lines by 100 inhabitants. It is a measure that includes minors, people below 13 years and people over 65 years. It is actually all the population.
Competition, what competition do we have in the market? In the market, there are the large operators, operators that have more lines, more traffic or more income. We have represented them here. Movistar is an absolute leader in the market with lines, incomes and traffic; Vodafone and Orange continue in second and third position, approaching to the first one, we will see it now; and Yoigo and all the others have a weight which is growing too. Here, we have a first concept; I asked you in a poll: how much do you spend monthly on mobile phone? Here you have an interesting concept which is the ARPU. This is a concept that I want you to remember, Average Revenue Per User, which means the "average revenue per user" and it is always accounted annually. . The thing is: how much your customers spend at the end of the year? How much do you have to bill your customers at the end of the year? Another concept I think that is important to remember is this one: the Churn. Churn is a concept that measures the client loyalty with an operator. It measures it quantitatively, what it does is to look how many lines had to low an operator and divides it by the average of lines that has this operator for two years. And we can get a percentage.
Nowadays, we are in a Churn of almost 34%, therefore it is not a high Churn. If you look at some years ago, it was about 22-25-28-30-33%, and it is increasing. Each time, as it is a dynamic market, users are more unfaithful to the operators. Why? Because we receive offers we are more interested in, for price, for terminal, for mobile internet, etc. Therefore, it is a phenomenon that causes concern to the operators and it conditions its whole commercial offer. Their entire commercial offer is addressed fundamentally to customer loyalty.
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