telecom_channel brand perception

© 2010 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.www.sutherlandglobal.com

April 23, 2023 1111

Channel Brand Perception

Channel Brand Perception


5 November 2010 22

Project Background – Smartphones Market

• Our client, the telecommunications research desk of a leading Canada-based sell side brokerage, sought to introduce differentiation in its annual research of the mobile-handset coverage universe

Client

• The client wanted to supplement its traditional “management-forecast” based research, with live, on-the-ground intelligence and hence sought to commission a global Smartphone channel-check survey

• The client was looking for a partner who understood the sector well and could transcend the barriers of language and time, to reach out to carriers across the globe, and generate the intelligence in short-turnaround time

• The survey entailed identifying and connecting with key Smartphone stakeholders, within carriers, across the globe and administering a semi-structured questionnaire and analysing results

• The client mandated SGS to survey the leading mobile telecom operators across the globe in order to assess the smartphone market on the following issues:• Current and likely future trends in the smartphone market• Key drivers & inhibitors for adopting particular smartphone• Share of Smartphone brands, brands seeing high uptake vs. brands witnessing declining sales• Operators related initiatives to increase smartphone sales, data usage, etc.

Client Ask

• 50 telephonic surveys were conducted with top level marketing/ sales executives in order to assess the smartphone market. After every interview, the survey data was collated and compiled to facilitate data analysis. The data was analyzed using plain cross tabulations to derive graphs/statistical analysis.

• The data was analyzed using plain cross tabulations to derive graphs/statistical analysis. Importantly, the survey unearthed, heaps of qualitative insights, which served as crucial pointers in assessing Smartphone outlook and forecasting market-share by region

• The depth of B-2-B survey findings has wooed the client’s investor community as this gives the investor community access to on-the-ground intelligence and hence, serves as a pre-cursor to potential stock upsides or downsides

Sutherland’s Solution

• The complete smartphone dynamics both current and past was available to the client. It helped the client form an opinion on the leading smartphone brands, how is each of them perceived across different regions & countries, the brands that have increased/ decreased along with reasons, etc.

• Further, the client could forecast smartphone trends across regions based on the supply and demand dynamics inferred from the leading operators. Finally, the analysis was useful to the client to come up with an extensive report with coverage on leading smartphone brands for each major country

Benefits to the Client


5 November 2010 33

Blackberry, followed by Symbian, emerged as the most popular smartphone brands in most of the countries surveyed

Blackberry leads with over 30% share in Asia Pac, Africa and Middle East markets with its nearest competitor Symbian lagging by almost 7% to 8%Symbian leads in European and Latin America garnering approximately 30% market share and ahead of Blackberry by approximately 1% and 5%, respectivelyOverall, Blackberry is distinctly popular for its enterprise offerings while Symbian and Apple lead in residential segment due to their aesthetic appeal and media/entertainment based applications

In terms of Q-o-Q growth, Blackberry is witnessing maximum growth in Asia, Africa and a few Middle East countries while it is facing stiff competition in Europe

Blackberry doing exceptionally well in most of the developing countries in Asia; Push Email, Blackberry Messenger features most preferred among the Enterprise usersHowever, as per the European operators, Blackberry customers could easily shift to an I-phone due to its attractive design, touch screen and user-friendly social networking applications

Despite growing at a slow rate, Symbian maintains its global market share due to its huge installed base & high brand awareness; it holds the maximum share in the European smartphone market

Few positives for Symbian enabled Nokia phones are its ability to retain one model for a very long time (thereby ensuring good availability of spare parts and after-sales service), variety of models, recent improvement on their operating systems and variety of media, music & gaming applications at OVI store

Given its current medium-to-low base in most markets, I-phone is experiencing high growth rate across two major regions: Asia Pac and Europe

Growing significantly in most of the developed countries in Asia Pac but behind Blackberry in terms of market share; the high price of I-Phone is not finding favor in few price sensitive markets from Asia and Latin AmericaPreferred by most of the European countries, I phone is gaining significant QoQ market share in this region

Motorola emerged as the slowest performer; Samsung phones are also not doing well, except their android offeringsMotorola and Samsung phones (non Android) have seen a decline in every continent except Europe Other phones facing a decline in sales are LG (Europe) and Sony Ericson (Middle East, Europe)

Executive Summary

Smartphone brands: popularity and growth across geographies


5 November 2010 44

Blackberry leads across Asia Pac, Africa and ME while Symbian has maximum share in Europe and Latin America

31%26%

16%

10% 9% 8%

Windows7% Blackberry

34%

Symbian 27%

Apple14%

Android9%

Others9%

31%

24%20%

10% 8% 7%

36%

27%

16%

7% 7% 7%

Asia PacificLatin America

32%

24%21%

11%6% 6%

30% 29%

16%

9% 8% 8%

Europe

World

N=6

N=18

N=17

N=3

(N=3) AfricaMiddle East

N=3

N=47

Figures are specific to the Telecom Service Providers from the sample and it may not necessarily apply to the overall global share


5 November 2010 55

Countries like Hong-Kong and Japan utilizing their 3G network to the fullest

I ndosat

Globe Ppns

China TelecomMovistar Blg

Beeline Russia

Vodafone Egypt

Vodafone France

Turkcell

Celcom Mal

Mobitel Cmb

Orange I srael

BT UK

DiGi Mal

OI Brazil

Airtel I ndia

Vodafone Spain

Euskaltel Spain

Etisalat UAEMaxis Mal

Meditel Morocco

Vodafone PortugalVodacom SA

Lusacell Mex Softbank J pn Docomo CSL Hong Kong

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80%

`

3G N

etw

ork

as %

of o

vera

ll ne

twor

k

Data Subscriber base as % of overall subscriber base

EFFICIENT NETWORK

UTILIZATION

1

2

4

3

No 3G Network

Asia PacEuropeMiddle EastAfricaLatin America

Circled area represents operators that have the potential to increase the network utilization (move towards Quadrant 1) to increase the data subscriber base and eventually increase Data ARPU

Similarly, operators in quadrant 2 who already have a significant % of data subscribers would need to upgrade their 3G network to enhance their revenue potential

Operators in Quadrant 3 (primarily Asia Pac and some European operators) have typically low data usage and would need to see an increased uptake of data subscribers to encourage further investments in their 3G networks

Red dotted cluster represents the countries yet to implement 3G network in their respective countries


5 November 2010 66

Blackberry, followed by Symbian, emerged as the most popular smartphones in maximum countries surveyed

Smart Phones# Respondents indicating preference

(from 1 to 5) Countries indicating rank 1

1 2 3

1 indicates the most preferred smart phone and so on..

Market Share

4 5 > 5

Algeria, Australia, Belgium, Cambodia, Egypt, France, Malaysia, Mexico, Netherlands, Portugal, Russia, S. Africa, Sweden, Turkey & Ukraine

Blackberry 19 11 8 5 1 6

Apple 8 9 7 4 3 19

Symbian 19 8 1 3 1 18

Android 2 9 6 5 2 26

Windows 3 4 7 5 5 26

34%

27%

14%

9%

7%

Argentina, Bangladesh, Belgium, Brazil, India, Indonesia, Israel, Netherlands, Nigeria, Pakistan, Portugal, Spain, Sri Lanka & UAE

Primarily Asia-Pac operators have indicated Blackberry as their preferred choice of smart phonesSymbian has been rated as the preferred smart phone brand by many European operators

Belgium, Hong Kong, Italy, Japan, Malaysia, Philippines & UK

Germany & Netherlands

Pakistan, Portugal & Ukraine

N=50


5 November 2010 77

Blackberry more popular for its enterprise offerings while Apple leads in residential segment due to its aesthetic appeal

PlatformRegions and

countries where doing well

What makes these platforms popular? Popular brands

Likely future scenario

Blackberry

Asia Pac (India, Pak, Indonesia, Bangladesh, SL)

Africa (Nigeria) Europe (Spain,

Portugal, Belgium, Netherlands)

Latin America (Brazil, Argentina)

Middle East (Israel, UAE)

Asia Pac market for Blackberry is dominated by enterprise customers and hence, Push e-mail and office applications are more popular

In Europe and Africa apart from e-mail and business communications (BES/ BIS), Blackberry is widely used for social networking and browser based applications

Driven by enterprise customers, Blackberry is popular in Latin America because of its fixed price plans with unlimited data usage

Middle East Corporate segment prefers Blackberry due to its Push Email and business travel application features

Launch of a comprehensive smartphone model, Gemini 8520 at a comparatively low price point has made Blackberry more affordable and hence, resulted in increased smartphone uptake in most of the countries mentioned alongside

Bold 9700 Gemini

8520 Bold 9000 Javelin

8900 Storm

9520

Blackberry will continue to do well in the business segment and enterprise customer segment primarily because of its unique mailing features

Apple

Asia Pac (Japan, Malaysia, Hong Kong, Philippines)

Africa (S. Africa) Europe (Italy, UK,

Turkey) Latin America

(Brazil) Middle East (Israel,

UAE)

Driven by brand name, excellent user interface and strong application (particularly multimedia from an entertainment perspective) Apple has been popular across many countries in Asia Pac and Europe

Early launch of advanced features, touch screen, ITunes and safari mail makes i-Phone the most preferred Smartphone in Japan

Attractive graphics and easy to handle OS makes Apple the preferred smart phone after Symbian’s Nokia phone in S. Africa

User friendly browsing as well as preference as fancy product/ status symbol makes it the second most preferred choice in Middle East (first being Blackberry)

i-Phone

A perceived status symbol and strong applications coupled with excellent user interface shall ensure Apple’s continued growth within the “high end” consumer segment


5 November 2010 88

Operators are willing to promote unlimited data plans followed by value added services

6 14

2

2

1

7

3

1

1

1

2

1

3

4

Unlimited Data plans

Social Netowrking

Mailing Plans

Other Value addedservices

Operators believe the preferred usage of the internet over phone is the mainstay of the smartphone market; they give priority to flexible data services than any other application specific plans

65% of the total global responses have indicated their willingness to promote unlimited data plans Most of the operators have different and exclusive data plans for residential and enterprise customers Consumers are downloading more applications, media and games; unlimited downloading preferred across regions Major chunk of the operators are offering “Bundling Packages” (Handsets at reduced rates but for a minimum contract duration & monthly

rental) Unlimited mailing plans are offered more by operators having large enterprise subscriber base ratio

Few plans include- Unlimited e-mail and instant messaging features Other value added services include Internet TV, navigation plans, discounted application download Social networking plans are getting common across geographies and being promoted by operators in these regions

Few operators are providing exclusive plans such as “pay per site” (unlimited access to a particular social networking website)

#

#

#

Denotes number of respondents from Asia Pac Region indicating relevant preference

Nomenclature:

#

#

Denotes number of respondents from Europe Region indicating relevant preferenceDenotes number of respondents from Africa Region indicating relevant preference

Denotes number of respondents from Middle East Region indicating relevant preferenceDenotes number of respondents from Latin America Region indicating relevant preferenceDenotes total respondents (out of 50) indicating particular preference

#

Type of plans operators are looking to promote?


5 November 2010 99

Country Snapshot- Smartphones

CountryCompani

es covered

Subscribers mn (Data

Subscribers)

Fast moving Smartphones (Descending Order)

Country specific observations Popular OS

Fastest growing OS

(%age)

Fast moving Brands/mod

els

Philippines

Globe Telecom

25 (1) Apple Blackberr

y Android

Blackberry (200%)

Apple (30%)

i-Phone Curve 8520,

Bold 9700 Samsung

Driven by popular multimedia applications, Apple is the most preferred smart phone; Blackberry is rapidly gaining market share and operators are keen to offer Blackberry as pre paid product

Blackberry could appeal to business consumers by adding more dashboard solutions such as content delivery solution and data back up solution

Sri Lanka Dialog Telecom

7 (0.08) Blackberry

Apple

Blackberry Windows

Gemini 8520, Bold 9000

i-Phone

Blackberry remains the dominant player with approx. 98% of Smartphone market share

The market is dominated (90%) by corporate segment who prefer Blackberry as it gives them flexibility to work from home or the field

i-Phone has niche market (high-end), typically for people who travel abroad a lot (using i-Phone as a status symbol)

Egypt Vodafone Egypt

26 (4.5) Symbian Blackberr

y

Blackberry (20%)

Nokia E Series

Bold 9700, Bold 9000

Blackberry has been gaining market share (unlike Nokia which penetrated the market before 11 years) primarily due to increasing demand particularly from MNC and entrepreneurs

Apart from PUSH Email and Blackberry messenger, travel applications such as Flight time indicators and fare list are also attracting the corporate segment in Egypt

South Africa

Cell C MTN Vodaco

m

6.9 (0.2) 17.5 26.5

(6.7)

Symbian Blackberr

y Apple

Blackberry (60%)

Apple (16%) Android

(10%)

Nokia Bold 9700,

8520 i-Phone

Nokia Smartphones are the most popular and perceived as “tried and tested” phone in SA

However, Blackberry has been gaining acceptance very quickly within the corporate segment who use it for Email and internet

Operators across the country are looking to promote Blackberry phones bundled with unlimited data plans

Algeria Djezzy 15 (0.10) Symbian Windows

Symbian Windows

Nokia Samsung

Nokia is very strong in Algeria and has the maximum share in both the installed base as well as new sales

Blackberry is very segmented, only business customers use it; Sales of i-Phone is low in the country with no official launch of i-Phone in the country

Carriers feel that there is a need to launch some industry specific exclusive applications

Figures and Details are specific to the Telecom Service Providers from the sample and it may not necessarily apply to the overall picture of the country


5 November 2010 1010

Country wise popularity of the platforms

Region Country Company Apple Blackberry Android Symbian Windows Others

Africa

Algeria Orascom telecom (Djezzy)

Egypt Vodafone EgyptNigeria Globacom

South Africa

Cell CMTNVodacom

Asia Pac

Australia Optus Bangladesh Grameenphone

Cambodia MobitelChina China TelecomHong Kong CSL Hong Kong

IndiaAircel IndiaIdea CellularTata Teleservices

Indonesia Indosat

Japan NTT DoCoMoSoftbank Mobile

MalaysiaCelcomDiGiMaxis

PakistanTelenor PakistanUfoneWarid Telecom

Philippines Globe Telecom

SriLanka Dialog Telekom

Middle East

Israel Orange - Partner Morocco MeditelUAE Etisalat

Blackberry and Symbian emerged as the leading smartphone platforms across Asia, Africa and Middle East primarily due to wider variety of handsets, easy availability in the open market and the lower starting price range of handsetsAndroid is still maintaining its market in these regions and its being given priority in a couple of developed markets like Japan and Hong Kong

Popularity Rank 1Popularity Rank 2Popularity Rank 3

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