Mexican MVNO Miio Launches with Free Monthly Plan

A new MVNO called Miio has been launched in Mexico with a free basic service along the lines of that previously offered by FreedomPop, according to a report. The service, called, Saldo Free, comes with 50 MB of data, 100 minutes of calls to Mexican fixed line numbers and 10 SMS a month. Users need only acquire a SIM card for MXN 30.00 (US $1.61) and download the operator’s app (available in versions for iOS or Android) to access the bundle. Miio’s out-of-bundle rates are MXN 0.85 (US $0.05) per minute, per MB of data and per SMS. Credit will only be used after the free bundle has been consumed and can be topped up via the corresponding Miio debit card at any Oxxo store in Mexico.
 
U.S.-based FreedomPop, founded in 2011, has had success with its MVNO model, based on an introductory level of service offered without charge and higher levels that are paid for and drive revenue to the operator. FreedomPop has expanded within the U.S. and in 2016 entered the Spanish market and the U.K.
 
In Mexico, the “free” service idea is attractive for a number of reasons, including the fact that it is a relatively budget-minded market with a large number of users who still have a lot of room for growth in terms of data utilization. As of the end of 2017, the country had a total of 14 MVNOs at the end of 2017, accounting for 1.48 million active SIMs, for 1.3 percent of the market. That was up 68.7 percent compared to the end of 2016. The Mexican market, therefore, is far from saturated when it comes to MVNO penetration.
 
With Miio, the main issue is, will enough users not only sign up but use more than the allowances and continue with the service? It seems to us that the allowances are relatively small, perhaps too small, to give users a real sense that they have indeed gotten a “free” service at all. The fact that the only included voice calls are to Mexican landlines could be a deal-breaker, and while SMS are never expensive, an allowance of only 10 per month is so small as to approach meaninglessness. And in an era of streaming content and other data-intensive functionalities, 50 MB per month is also very low indeed. It is possible that very small allowances might be satisfactory to introductory-level users who are newcomers to any data use, but if there are not enough of these users, Miio may face consumer rejection unless it ups its numbers.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance.  

To learn more about Tarifica, please visit www.tarifica.com 

3 UK Launches Wi-Fi Calling for Android and iOS

Mobile operator 3 UK announced that embedded Wi-Fi is now available on its network for both Android and iOS users. With it, customers can make voice calls and send texts over a Wi-Fi network when in the U.K. Users of Apple’s iOS phones need to have the latest software version, iOS 10.2, and then activate Wi-Fi calling in their settings. For Android users who have a compatible device and the necessary software, the Wi-Fi calling settings install automatically. Compatible devices currently are the LG G5, Samsung Galaxy S6, Galaxy S6 edge, iPhone 5c, iPhone 5s, iPhone 6, iPhone 6 Plus, iPhone 6s, iPhone 6s Plus, iPhone SE, iPhone 7 and iPhone 7 Plus. The Samsung Galaxy S7 and Galaxy S7 edge will be compatible beginning in mid-February. The new service removes the need for the operator’s former Wi-Fi calling solution, Three InTouch app. InTouch users will receive a pop-up message informing them that they can delete the app.

The rise of non-cellular voice calling technology was originally a threat to mobile operators’ revenue streams because it allowed users to bypass calling plans and get access to unlimited messaging and voice calls, both domestically and internationally. Operators responded in various ways, including tolerating, co-opting or co-branding various VoIP services. Another non-cellular voice calling system, Wi-Fi calling, now becoming prevalent, is another technology that lies outside the traditional cellular calling networks. Rather than constituting an end-run around the operator, Wi-Fi calling is a billable service that keeps the user within the operator’s ecosystem. Its primary utility is when the cellular signal is too weak or unavailable, so with Wi-Fi calling that is billed within an existing calling plan, the operator can keep its subscribers using voice and text services even when they are in so-called “not-spots”—which are, according to reports, still quite prevalent in the U.K. By making access to Wi-Fi calling seamless instead of through an app, the operator ensures that more subscribers will adopt it, and that those who used it before will now use it more often. Therefore, 3 UK’s decision to make Wi-Fi calling “native” to a wide variety of smartphones in both major operating systems is an excellent one. Easily, intuitively accessible Wi-Fi calling will aid customer retention because rather than becoming frustrated with the operator’s service when the cellular network is unavailable, users will be able to connect by Wi-Fi (given that Wi-Fi networks are sufficiently prevalent) and stay satisfied.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance.

To learn more about Tarifica, please visit www.tarifica.com 

WhatsApp to Roll out Video Calling

WhatsApp said it will be introducing a new video calling service to its over 1 billion users worldwide on iOS, Android and Windows Phone. The OTT provider stated that the service is meant for every type of phone, from the most expensive to the least expensive. The service will be rolled out to all users over the next few days. According to reports, during a video call, users will be able to switch between the forward-facing and rear-facing cameras, mute the call or press the red button to hang up. WhatsApp, which currently offers messaging and voice calling, says that video calling has been one of the most-requested features from users.   As we have noted frequently in these pages, free or nearly-free OTT services that compete with the offerings of MNOs have been proliferating over the past several years, posing a challenge to the mobile operators. Along with Skype, Facebook-owned WhatsApp has been one of the most vigorous challengers, fueled by its huge worldwide base of subscribers. First with text messaging, then with voice calling, it offered services that closely paralleled or duplicated those of mobile operators. The expansion of high-speed LTE networks (built with the investment of the MNOs) and the increasing availability of budget smartphones have made video calling a possibility for a vast number of users worldwide, so the time is right for WhatsApp to offer it. In this case, however, we do not see it being as significant a competitor to MNOs as with its earlier offerings. While some mobile operators have created native video calling services, for the most part consumers rely on third-party apps for video calling. Probably the company that will be most threatened by WhatsApp’s new offering is Apple, whose FaceTime feature enjoys great popularity. WhatsApp video calling is platform-agnostic, and therefore users no longer have to buy an iPhone to make video calls. The question will be how high the quality of the calls will be, and that will have a great effect on the uptake rate for WhatsApp’s video calling service.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. To learn more about Tarifica, please visit www.tarifica.com

A1 Launches Mobile TV Service Throughout Austria

Austrian operator A1 has announced the commercial launch of its new A1 NOW mobile TV service. This gives customers access to 41 TV channels, including nine in HD. The nationwide launch follows a beta trial in late 2015 with over 1,000 participants. The service will be offered free of charge until the end of 2016 for A1 smartphone tariff and fixed-line internet customers who signed their contracts between 18 November 2013 and 26 February 2016, as well as all new and existing A1 Go! Premium customers. A personal online video recorder allows users to access all available TV channels for up to seven days after broadcast, as well as to store up to 10 hours TV content for up to three months. The A1 NOW Library gives users free on-demand access to Austrian TV series. Data used with this streaming service is not included; A1 recommends that customers have a tariff with at least 2 GB data. Once the promotional offer ends, the service will cost €7.90 (US $8.68) a month. The A1 NOW app is available for Android and iOS, and the service can also be accessed through a web browser. In their ongoing search for greater relevance and distinction as traditional mobile services become commoditized, operators all over the world have been partnering with providers of entertainment content such as TV or streaming music. Since access to such content has branding power and can help with retention, there is an incentive to offer it free of charge and even to zero-rate the data involved in delivering it. A1, however, is making it clear that the data users will spend on watching its 41 national TV channels will not be zero-rated; in fact, it is going so far as to explicitly urge its customers to buy enough data to support generous use of the streaming service. And while there will be no subscription charge during the promotional period, A1 will be charging a monthly fee thereafter. We think the operator is smart to aggressively pursue these two ways to derive revenue from A1 Go! It is well aware that its content is desirable and competitive, and that in a sophisticated market, customers are ready and willing to pay for it and no longer need to be incentivized.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile, fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance.

To learn more about Tarifica, please visit www.tarifica.com 

Anatel App Allows Sharing of Mobile Experiences

Brazilian regulator Anatel has announced that the new version of its Anatel Mobile Service app allows users to share their experiences using mobile services. The app is available for Android and iOS devices and will soon launch on Windows. The accounts of the experiences shared by users—such as loss of signal, slow or unstable connection, dropping of a connection, bad connection or lack of signal—are available in a geo-referenced map covering the past 30 days. Accountability on the part of mobile operators is a major issue in consumer relations, and Anatel has taken a strong position. By making it easier for Brazilian mobile users to keeps each other informed about quality of service and to compare and contrast it across operators, it will likely encourage churn and put pressure on operators to improve their networks in order to remain competitive. While the app has no regulatory “teeth,” we believe that it represents a challenge to operators.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. To learn more about Tarifica, please visit www.tarifica.com

Microsoft to Launch Microsoft WiFi

U.S.-based software and technology giant Microsoft has announced that it is working on a new Wi-Fi service, called Microsoft WiFi, to replace Skype Wi-Fi. Microsoft said the service will provide access to 10 million hotspots worldwide. Currently Skype Wi-Fi has 2 million hotspots. Microsoft made the announcement via microsoftwifi.com, which stated that the new service will be available for users of Skype Wi-Fi, users of Microsoft Office 365 for Enterprise, and people who have received a special Wi-Fi offering from Microsoft. No financial details of the planned service—which will be available via Windows Phone, Mac, Android and iOS—were disclosed. While it is not yet clear when Microsoft WiFi will launch, it seems that when it does, a large step will have been taken in the direction of making public Wi-Fi connections universally accessible. Ten million hotspots in some 130 countries is no doubt an impressive number, and it marks a quintupling of the number now available to Skype subscribers (Microsoft owns Skype, which it acquired in 2011). We have written recently about the proliferation of services that rely partially or wholly on Wi-Fi hotspots—usually free ones—as an auxiliary or even a replacement for traditional cellular data (and, by extension, voice and text messaging if over-IP solutions are used). The success of such challenges to the mobile operators’ connectivity depends, of course, on the number and density of Wi-Fi hotspots available in public places both indoors and outdoors. Until now, Wi-Fi hotspots have not been ubiquitous enough to make these services game changers. However, if a giant entity like Microsoft can really spread hotspots across the globe densely enough, a web of connectivity operating outside the MNOs’ networks can come into existence. Of course, while this will be public Wi-Fi, it will not be free public Wi-Fi; Microsoft will be charging for the access, so in order for it to position itself as a significant competitor to cellular service, it will have to be priced appropriately.

Tarifica has been the leading provider of telecom pricing information for close to four decades. It maintains the most robust, in-depth and up-to-date pricing database in the industry, which includes mobile and fixed line rates from over 400 operators in 85 countries, as well as historical data going back to 1997. Tarifica also produces reports, surveys, publications and custom analyses. Its clients include operators, regulators, enterprises and consultants in every region of the globe. 

Ooredoo Launches Cash-Back Promotion for Money Transfers to Philippines

Qatari operator Ooredoo has announced that its mobile money service will give QAR 100.00 (US $24.25) cash back on international transfers to the Philippines for three consecutive months. The offer will run from 5 February to 5 July, and customers must start sending transactions by 5 May to be eligible, with the minimum per-transaction amount set at QAR 100.00 for the promotion. Once registered, customers can take advantage of the free QAR 100.00 cash back by sending money to the Philippines for collection at any local MoneyGram agents or by making a direct bank account transfer to any one of over 20 participating banks. When the three monthly international transfers have been completed, the QAR 100.00 will be instantly credited to the customer’s mobile wallet. Mobile Money is available for use on any mobile phone model and can be used to top-up Hala accounts with a 10 percent extra recharge, pay Ooredoo bills, send money locally to another mobile or Qatar National Bank (QNB) account, or transfer money overseas. Users can deposit money into their mobile wallet using any of over 200 Ooredoo Self-Service Machines available throughout Qatar. Deposits can also be made through Ooredoo Shops or direct transfer from any QNB Bank account through QNB Mobile Payment service. The Ooredoo Money app is also available now for Android and iOS.

Remittance is one of the most prevalent uses of mobile money, because many users work abroad and need to send money to family members in their home countries. Given the fact that many Filipinos work in Qatar, it makes sense for Ooredoo to target this demographic with a promotion aimed at adding Filipino subscribers to their services. The amount of money involved in the cash-back offer is substantial enough to be meaningful to the Filipino expatriates, and once in the account it will be used in transactions that take place via the mobile money service, so the promotion will stimulate Ooredoo’s mobile money business in two ways. We feel this is a win-win offer. 

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues or to speak with the research team: http://www.tarifica.com/contactus.aspx

Global Smartphone Growth to Slow as Prices to Drop

Worldwide smartphone shipments will reach a total of nearly 1.3 billion units in 2014, an increase of 26.3 percent over 2013, according to a new forecast from International Data Corp. (IDC). However, the global market intelligence firm expects that in 2015, 1.4 billion smartphones will be shipped, representing a 12.2 percent year-over-year growth rate. Shipments will approach 1.9 billion in 2018, indicating a compound annual growth rate (CAGR) of 9.8 percent for the 2014–18 forecast period.  Smartphone revenues are expected to show a 4.2 percent CAGR over the same period. Smartphones are expected to have an average selling price of US $297.00 worldwide in 2014, dropping to US $241.00 by 2018. Emerging markets such as India will see much lower prices, from US $135.00 in 2014 down to US $102.00 by 2018. Android devices will continue to drive shipment volumes, while iOS devices will drive revenues, according to IDC. By 2018, Android will control 80 percent of global smartphones shipped and 61 percent of revenue, while iOS will control 13 percent of volume and 34 percent of revenue. While worldwide smartphone shipments will not be declining over the next four years, the rate of growth in shipments will decline, according to IDC’s projections, and that reflects several trends that we have observing, as well. Higher rates of penetration account for growth rates that are much lower than obtained during the period of rapid device adoption. In the developed markets this trend is particularly marked, but it is true to a lesser extent in other regions. In an increasingly saturated global smartphone market, it is simply not possible for growth to continue at the same pace as it has been. Also, though it is much less significant as a factor, it should be noted that cellular-enabled tablets with voice capability are squeezing smartphones in emerging markets, where users may choose to have only one device. As inexpensive smartphones come with more features and more power, inevitably there will be downward pressure on global pricing. This phenomenon is especially marked in emerging economies like India, though it is by no means limited to them. It appears likely that mid-range smartphones will have the hardest time competing with low-priced but relatively full-featured devices, whereas the highest-end smartphones, particularly Apple’s iPhone, will show the strongest growth in revenue.  The above item appeared in a recent issue of Tarifica's "The Story of The Week", a weekly report that analyzes noteworthy developments in the telecoms industry from around the world. For past issues or to learn more about The Story of The Week or to contact the Tarifica Research department:  http://www.tarifica.com/contactus.aspx

Twitter Offers Audio Streaming to Tweeters

Social media giant Twitter’s newly available service, Audio Card, will enable users to listen to audio directly on their timelines on both iOS and Android devices. Twitter will be partnering with several third parties, the first of which are Berlin-based digital music provider SoundCloud and iTunes, to bring music to tweeters. Users can enable the feature with a single tap while on Twitter, and they can dock the Audio Card, which will allow them to continue listening to audio as they are browsing within the Twitter app. In addition to musical artists such as Coldplay and Foo Fighters, who have shared music through the Twitter Audio Card, there have already been non-musical audio tweets from NASA, the Washington Post, the White House and the BBC World Service. Users of On SoundCloud, SoundCloud’s partner program that has been developed for artists and creators of all levels, will eventually be able to use Twitter Audio Card for their posts, as well.

This is not the first time that Twitter has tried to include music with its features and to become a multimedia network, perhaps to compete more directly with Facebook. In 2013, it launched the #Music app, which used Twitter activity and tweets to determine popular tracks and emerging artists. Users could then follow a link to listen to these songs from these tracks and artists. Most users did not find this convenient, nor did they necessarily want to listen to the same material as that of their followers. Twitter’s new partnership with SoundCloud—a company Twitter was once interested in buying—should be a more successful attempt because it will make streaming music much more convenient for Twitter users and because users will be able to listen to audio from personal friends, not just known artists or media.

Bringing this new media into Twitter’s text-heavy platform will not only be a good move for the social networking service, but it could also result in greater revenues for mobile operators as users spend longer amounts of time on Twitter because of the new content that it will be able to provide.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:  http://www.tarifica.com/TarificaAlert.aspx

Notable Developments in Telecommunication Worldwide

Asia/Pacific

Japanese messaging app LINE is partnering with BBC News, the U.K.-based international media service, to deliver short video clips of breaking news to LINE users in 11 countries. In order to receive the service, subscribers of the app in Australia, France, Germany, Hong Kong, India, Italy, Malaysia, the Philippines, Singapore, Spain and the U.S. must list the BBC’s official account as a friend on their app.

Europe

T-Mobile Austria, the country’s second-largest operator, has announced a new tariff structure that will keep the cost of mobile devices separate from the cost of mobile plans. Subscribers can use an existing device or purchase a new one by paying in full or with a deposit and a payment installment plan. Once the device is paid in full, customers’ monthly bills will only be for the plan. Existing customers can choose this option once their current contracts have expired.

Latin America

Telefónica’s Brazilian mobile operator, Vivo, has launched a new service called Vivo Chamada Patrocinada, a sponsored call service for customers in Northeast Brazil. The service, which was already available to subscribers in Rio de Janeiro and São Paulo, will now enable Vivo customers in Alagoas, Ceará, Paraíba, Pernambuco, Piauí and Rio Grande do Norte to make free local calls of up to a minute to fixed line phones and to on-net mobile phones in exchange for listening to a 15-second-long advertisement. Twenty advertisers are providing messages on the service.

Middle East/Africa

Orange Money, the mobile wallet service that France-based Orange offers in 14 countries in Africa and the Middle East, has partnered with the Bank of Africa (BOA) to enable the MNO’s customers to transfer money back and forth between their Orange Money account and their BOA account via their mobile phone. The service will enable Orange subscribers to manage their money and perform banking operations, transfer money, pay for goods and services and purchase airtime credit.

North America

U.S. operator AT&T is partnering with Shell, the global group of energy and petrochemical companies, to enable Shell’s 150,000 employees and independent contractors in over 50 countries to be able to connect to one another using PCs, tablets and smartphones. Via a single interface, this unified communications platform will enable employees to interact through instant messaging, voice, web and video conferencing as well as to share applications and data files. The solution is usable with all major operating platforms including, Windows, Windows Phone, iOS and Android in a managed environment. AT&T says it will create an efficient working environment, in which, for example, calls can be made to entire teams of employees in different geographic locations.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:  http://www.tarifica.com/TarificaAlert.aspx