are apple and google about to become mvnos?
TRANSCRIPT
Are Apple and Google About to Become MVNOs?
Whitey Bluestein Bluestein & Associates LLC 25 April 2012
Assume Nothing
2
The bigger and more innovative a company, the more rumors and speculation
Apple rumors are a cottage industry
What Fueled Apple MVNO Rumors?
3
! A patent application renewed ! Nano-SIM battle with Nokia
4
MVNO Server
125
Interface 130
Interface 130
Interface 130
PSTN 135
Network Operator
120(3)
Network Operator
120(2)
Network Operator
120(1)
Base Station
115
Mobile Device
105
Base Station
115
Base Station
115
Just Another Patent Filing?
5
Dynamic Carrier Selection
Patent Application !led October 10, 2006 Patent extended Fall 2011
Interface 130
Interface 130
Interface 130
PSTN 135
Network Operator
120(3)
Network Operator
120(2)
Network Operator
120(1)
Base Station
115
Base Station
115
Base Station
115
MVNO Server
125
Apple’s Nano SIM Battle
! Sidestep carriers with embedded SIMs ! Provision via iTunes ! Sell voice, data, roaming in iTunes
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Apple Strengths for MVNO Initiative
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World’s Most Valuable Brand World’s Second Most Valuable Brand
# Brand Brand Value 2011 ($M)
% Brand Value Change 2011
vs. 2010
1 153,285 84%
World’s Most Valuable Brand
Apple Strengths for MVNO Initiative
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Strong Retail Presence
17X
Apple Strengths for MVNO Initiative
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High Customer Satisfaction Source: J.D. Power, Sept. 2011
Apple Strengths for MVNO Initiative
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Commands A Premium Price
Apple Strengths for MVNO Initiative
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iTunes Ecosystem
iTunes App Availability Source: asymco, Dec 2011
Apple Strengths for MVNO Initiative
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Strong Developer Community
Apple Strengths for MVNO Initiative
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Strong Financial Position
iPhone Economics
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$196 $381 $368
Apple captures 80% of global handset pro!ts
Now Let’s Look at
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Google Strengths for MVNO Initiative
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World’s Second Most Valuable Brand
# Brand Brand Value 2011 ($M)
% Brand Value Change 2011
vs. 2010
2 119,498 -2%
World’s Second Most Valuable Brand
Google Strengths for MVNO Initiative
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Android Platform Dominance
Google Issues for MVNO Initiative
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Retail Presence
Search Store
Google Issues for MVNO Initiative
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No experience with subscriber services
Google Issues for MVNO Initiative
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Customer care
Google Issues for MVNO Initiative
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And then there’s the Nexus One
Google Economics
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$4.5B $6.50 $1.9B
850,000 Android Activations each day
Both are Winning
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• Apple makes its pro!ts selling iOS devices, and is winning in handset pro!ts • Google makes its pro!ts from advertising, and is
winning through proliferation
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Tablets are perfect vehicle for Apple without subsidy hit • Apple, then Google, will bundle data with their tablets • Customers will buy data plan, and roaming, in iTunes Store • Google will acquire back-office provider for its Motorola tablets • Apple will offer voice and data roaming plans in iTunes Store for
iPhones • Apple will become full MVNO, with nanoSIM in all devices,
provisioned and subscribed through iTunes • Google will follow • Then the patent litigation will continue
Are Google and Apple About to Become MVNOs?
Survey Says
0
1
2
3
4
5
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No, continue to rely on
MNOs Yes, iPad but not iPhone Yes, iPad and
iPhone Who cares?
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Whitey Bluestein Strategic Advisory Services Bluestein & Associates LLC
San Francisco, California 94901 USA [email protected]
@wbluestein +1 415 847 2583
+44 77 4444 2583
Design Assistance from Digital Dazzle 26
© Whitey Bluestein