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Business Overview
Retailers (average)
Outlets as distribution and dealer channel Ready made sales structure Loyal customers
Why Now?
In early 2004, Europe and developed market started MVNO structure.
There is no proper business model for MVNO to excel. MNO is competing with MVNO due to market is not saturated yet (Subscribers > Population) Technology companies concentrate on selling their network appliances, rather than providing services. Capital intensive for MVNO and gross margin too low to justify investment of over 10-20mil to capture 100,000 subscribers. Time to market may take years to build and develop full network coverage.
What is MVNE?
A Ready Platform to serve MVNO Requirements
It is proven Tier 1 platform, extensive features to cater the different needs of MVNOs A Faster time to market. Less risk. Simplified go-to-market approach.
In The Nutshell
MVNO
- Branding - Marketing - Product Development - Sales - Customer Management - Business Know-how
N S T
B H
H M
Sub Brands
Revenue Streams
Core Revenue Streams
Voice calls and SMS Mobile Data and Broadband Packages
Ring Back Tone Services Bundled Content Services Unique Packages for Berita Harian, Harian Metro and NSTP
Sports, Current Affairs, Entertainment and Lifestyle
Marketing Concept
Basic Mobile Prepaid Services Loyalty programmes No frills services Subsidised Call Rates Flat RM 0.16 Goal Driver for Air Asia services
Marketing Concept
Basic Mobile Prepaid Services South Asia Low Call Charges Local Call rates from RM0.15 0.33 (peak/off peak) The only Celcom MVNO with Caller RBT Goal Drive Remittance & Money Changing Services
Marketing Concept
Specific Target Market South Asia Low Call Rates Basic Mobile Prepaid Services Low International VoIP Call Rates Goal Sell more VoIP Product & Services
Challenges
Acquisition of subscribers. All the MVNO above do not have steady stream of followers. All transactional based clientele.
strictly confidential copyright mobile communications media 2010
New Subscribers
Bundle newspaper to SIM Offer different bundling prices for example
RM 20 get one week worth of newspaper (one publication) RM 30 get one week worth of newspaper (two publications) RM 50 get one week worth of newspaper (three publications)
Free Content
Radio-based Caller Ring Back News-based Caller Ring Back Advertisement-based Caller Ring Back
Marketing
NSTP has more than 5million readers NSTP holds 3 major publications in the media market with steady readership
Distribution Network
News-Stands as distribution/dealer channel
Business Model
Marketing Elements
Leveraging on in house advertisement properties
Operation
Over heads (from CEO to receptionist) can be as low as RM1.8mil per annum Only needed dealer and distributor managers and sales & marketing team
Full Outsource Commercial Contracts Technical Involvement Manageable cost structure Able to own technology Time to market 6months or less Covered by MVNE Covered by MVNE NO rate may change as it goes NO YES Technology Outsource MVNO sign directly with MNO Covered by MVNE YES knowing fixed wholesale rate YES NO depends on rates negotiation
Retailer 10%
Mocome 20%
Contribution
NSTP
Advertising real-estate expenses (print advert) The big 3 Brands
Mocome
Business Knowledge Operational and Technical Knowledge Value Added System Provider
Retailers
Must be large group with more than 100 outlets in the country Taking lesser top-up fees (minimize cost of sale)
Funder
The financier of the business
Roadmap
Regional expansion
With MVNE, lower setup cost made regional expansion more reasonable Tie up with other giant publishers in neighbouring countries
Break-even point
With 5mil readers to target, targeting 2 % for the first 18months ARPU of RM30 per month Revenue hits RM36mil averaging 7% net profit (with Retailers in the group)
Projections
1st Half (MYR) Direct Revenue Direct Cost Indirect Revenue Agency Comms Mobile Svc Mobile Svc Mobile AD Mobile AD 0.00 500,000 0.00 0.00 2nd Half (MYR) 1,560,000 1,380,000 200,000 60,000 18 Mths (MYR) 17,753,000 15,712,000 6,413,000 1,924,000 24 Mths (MYR) 82,713,290 73,201,000 28,950,000 8,700,000 Total (MYR) 102,000,000 90,642,000 35,362,000 10,608,000
Gross Profit
(500,000)
205,000
6,596,000
29,776,000
36,136,000
Operating Exp
1,610,000
3,690,000
6,578,000
5,944,000
16,650,000
Profit
(2,110,000)
(3,485,000)
18,000
23,832,000
19,836,000
Assumptions
Based on ARPU of RM 30 per month Plateau in 19 months with 490K subscriber
Cost Structure
Dealer and MVNE costs are in Direct Cost of sales, Marketing costs will be in Operating Exp
Thank You