BGAN Sales Course v1.2. PowerPoint

BGAN Messaging

Version 1.2

December 2005

Broadband for a mobile Broadband for a mobile planetplanetTMTM

October 20052

BGAN: the elevator pitch1st mobile communications service to offer:

Broadband data (up to half a megabit)

… plus voice

accessible simultaneously

through a single compact device

with guaranteed data rates on-demand

that will be available globally

Smaller, Lighter, Faster, Cheaper

& Wider ReachSet up a broadband mobile office in minutes

October 20053

Key benefits of BGAN

Global coverage ● ●

Simultaneous voice & broadband data

●

Portable ● ●

Flexible ●

Reliable ●

Easy to use ●

Secure ●

Competitively priced ●

Hygienefactors

Uniquebenefits

October 20054

Global coverage

• Mobile broadband coverage wherever you go

• Initially accessible in Europe, Africa, the Middle East and Asia

• Available in North and South America by April 2006

• 85% of world’s landmass covered by the first two satellites

October 20055

Simultaneous voice & broadband data

• Accessible through one device

• Make a phone call while downloading email or sending live video

• Performance equal to terrestrial broadband

• Up to half a megabit data rates

• Guaranteed data rates on-demand

October 20056

Highly portable

• Small, lightweight terminals

• Can be carried as easily as a notebook PC

• Smallest terminal weighs less than 1 Kg

• Set up a broadband mobile office in minutes

October 20057

Flexible

• A range of terminals to suit single users or small teams

• Supports IP and circuit-switched applications

• Wired and wireless connectivity options

• Customisable user interface

October 20058

Easy to use

• Consistent user experience

• Easy to carry, quick to set up, simple to use

• Same user interface across all terminals

• No technical expertise required

• 24/7 customer support

October 20059

Reliable

• Dependable, peace-of-mind communications

• I-4 network capacity is 16 times higher than I-3

• Ability to dynamically re-direct network capacity to areas of high usage

• Robust terminals for challenging environments

• 24/7 customer support from our partners

October 200510

Secure

• Inmarsat’s vast experience in serving government customers

• Supports all major VPN products and encryption standards

October 200511

Competitively priced

• Significantly lower cost of ownership

• Competitive with other mobile satellite services

• Highly competitive compared to international roaming on cellular

• Flexible packages

• Greater control of budget

October 200512

BGAN Market Driver Facts

• Data Solutions are needed to drive a modern organisation

• Typical applications are designed to be used in a Local Area Network (LAN) environment

• Mobile use is growing faster than any other method. End users are not in an office (or don’t want to be)

• Inmarsat Data Solutions (esp,) BGAN, are Business Enablers to improve efficiency where and when such “normal office” connections are not available

• BGAN has a far wider “reach” than other third generation services and can be just as cost competitive

• BGAN is secure and totally independent of local infrastructure

October 200513

What does the customer need?

• Global or regional coverage?• Mobile, fixed or portable connectivity?• Voice or data, or both simultaneously?• Low speed data or high speed data?• Demand assigned charges or package pricing?• Post-pay or pre-pay?

BGAN WILL SERVE ALL OF THESE NEEDSThe answers to these questions will tell you how

to position BGAN against its competitors & help to build a solution to sell

BGAN

The Value Proposition program

October 200515

Agenda

The Process

Launch Propositions

Customer Feedback

Next Steps

October 200516

Value Proposition objectives

Accelerate take-up of BGAN services through:

1. Understanding end-customer experience2. Developing solutions that address end-customer needs3. Ensure solutions and services are equally applicable to

core and non-core sector organisations

How– Work with partners to interview end-users and ascertain

business needs– Developed a comprehensive beta test program to prove

solutions and services are ‘fit for purpose’

October 200517

• Conducted 50 + end-customer meetings with partners across 8 sectors

• Initial focus: Media, Military, Oil & Gas and NGO (Aid organisations)

• Essential that we get our propositions right for our core sectors

• Core sector knowledge will help inform emerging sector opportunities based on end-customer profiling

• Q3 focus shifts to non-core organisations

Distribution of interviews by Sector

End-customer meetings

Media, 17

Military, 19Energy, 5

Aid, 9

Construction, 3

Finance , 3

Civil Government, 4

Other, 2

October 200518

Understand segment

requirements & profile

Sector analysis

•Create framework•Quantitative

research•DP/ Manufacturer

feedback•Market

opportunity•Competitor

analysis

Buildfunctioningproposition

Testphysical

Proposition

Trial

•Key customers selected•Testing varied propositions•Beta testing•BGAN lab

Technical scoping

•All aspects of operational delivery – product, billing, SLAs, sales marketing collateral etc

•Alignment with DP / SP

•Assess proposition.

Phase 1 Phase 3 Phase 4

DevelopValue

Proposition

VP Road-map

•End-user analysis•Horizontal /

sector / bespoke propositions

•Assess ability to tailor each segment

•DP/SP value add•Questionnaire•Guidelines

Phase 2

Overview of process

October 200519

Beta test criteria• Geography - IOR Coverage

– Q3 2005 Beta activity under IOR footprint

• Technology Readiness– Proven IP and CS solutions where

BGAN might gain early foothold– New solutions centred on BGAN– Test across footprint

• Profile– Early adopter

– Resource and commitment – Teething pains

I4 CoverageIOR & AOR satellite footprints

228 Spot-beams / 2 x 512kbps channels per beam

October 200520

NetworkConnectivity

IP StandardIP Streaming

ISDNVoice

Interconnect

ISDN

IP MPLS

Internet

Tariff

$

BGAN Device

Applications

• All activities are based on eight key building blocks

– Customer meetings– Proposition development– Beta testing

End-to-end approach

SupportPeripheralEquipment

Services

October 200521

Agenda

The Process

Launch Propositions

Customer Feedback

Next Steps

October 200522

BGAN market position

Live Video

Internet

FTP

Telemetry

Intranet

E-mail

Telephony

Major applications Satellite Communication environment

Customer feedback indicated the following uses for SatCom services

Indicates non core BGAN areas

Inmarsat proposition Competitive positionFixed location Yes Yes

Office / bureau Yes YesMachine-to-machine Partial Yes

Mobile Yes YesSingle person Yes YesProject team Yes YesVehicular Development Yes

Remote / Temporary Yes YesDisater coverage Yes YesSurge protection Yes Yes

Value proposition program – 2 streams

Analysis / qualification

End-customer meetings

Develop launch propositions

Summary document

Gap Analysis

Messaging

Core sector

Business Development

Analysis / qualification

Define target sectors

Revise propositions

Summary document

Gap Analysis

Messaging

Emergent

Business Development

Media, Military, Aid and Oil & Gas (Primary)Construction, Government & Insurance (Secondary)

Construction, Finance (Retail banking & Insurance),Power & Energy, Manufacturing and Professional Services

October 200524

Focus solutions at launch

1. Mobile Video / Audio

a) Live:IP (streaming)ISDN

b) Store and Forwardc) Voice

2. Single-user mobile office

a) Broadband datab) Voice

3. Multi-user mobile office

a) Broadband data• Multiple PDP context

b) Voice• VoIP

October 200525

Core Proposition Media Military Oil and Gas Aid

Mobile Video/audio− Live IP (streaming)− Live ISDN− Store and Forward

Live BroadcastLive BroadcastStore & Forward

Video tele-conferenceVideo tele-conference

Video-conferencingVideo-conferencing


Single-user mobile office

Print & Photo Journalism

Military CommunicationsFile transfer

Field Force Automation (upstream)

Mobile Office

Multi-user mobile office

Remote Bureau Welfare CommunicationsRapid Deployment Field LogisticsCollaborative Planning

Field Force Automation (upstream)

Rapid Deployment, Field Operations

Applying solutions to core sectors

Notes: 1. All government / military applications require secure encryption

October 200526

Core Proposition Construction Insurance Retail Finance Civil Govt

Mobile Video/audio− Live IP (streaming)− Live ISDN− Store and Forward

Site monitoring / Vconf.FTP

Disaster CoverageDisaster CoverageIncident Footage / FTP

Secure ATM / bureau


Single-user mobile office

Project Management

Claims processingField agent sales

NA NA

Multi-user mobile office

Rapid Deployment Field Operations

Disaster Recovery (onsite)

Remote Branch Office

Emergency Response

Adapting solutions to emerging sectors

Notes: 1. Device-to-device communications are a key requirement within the finance sector2. Network back-up (disaster response & bandwidth on-demand) are key emerging requirements

Not all of the above will constitute launch propositions

October 200527

Live Broadcast propositionMobile Video / Audio solution

Corp monthly bundle + top up tariff, short term leasing, service reservation

Streaming Class IP 256kbps +, multiple bonded 256kbps Streaming connections via multiple devices

Portable Mac (OS10.1) , Sony video camera, RJ11 voice handsets, night vision attachment, bureaux office servers to receive video/audio from the field

Win Media 9 or Proprietary software applications Support multiple codecs (e.g. G.722 on Mpeg2, Mpeg4), MS Office, Mac OS10,

IP MPLS links, ISDN connectivity to customer premise, network redundancy between SAS sites

Online account info, SIM and Multiple SIM credit control mechanism, TCP-PEP

24/7/365, regional centres, remote solution configuration, terminal hire, simple and easy user support features via MMI

Class 1/2, terminal bonding/channel muxing, deactivate GPS track & proof of status, SIM card details on MMI, external & vehicular antenna, remote control of device

BGAN Terminal

Tariff

NetworkConnectivity

Peripheral Equipment

Applications

Interconnect

Services

Support

October 200528

Dedicated IP Connection (256Kbps) – Live StreamingBest Effort IP Connection (492Kbps) – Store & Forward4Kbps Circuit Switched Voice

CS Call

Video S&FIM/HTTP

BGAN Device

RAN & SGSN

HUB

Content Management server

BGAN Multi-User

Video Camera

Live Video + VoIP

3

2

1

Connectivity

from DP to

customer hub

preserves end-to-end

QoS

Head Office

PSTN

Internet

Live Broadcast proposition Mobile Video / Audio solution

October 200529

Benefits:

• Portability – Class 1 device (A4 size / ~2Kg) provides functionality of 4GAN or small VSAT unit

• Performance – Guaranteed data rates for prioritised traffic, 256Kbps

• Functionality – multiple simultaneous sessions (voice call while streaming video and running applications via a standard class)

HNS 9201

Live Broadcast propositionMobile Video / Audio solution

October 200530


Standard connections via multiple devices, Streaming Class IP 128kbps,

Portable Mac (OS10.1) , cameras, PDAs, RJ11 voice handsets, bureaux office servers to receive video/audio from the field, fax machines

Standard windows applications, Proprietary software applications,




Class 3, highly portable, SIM card details on MMI, Panic button, remote control of device, ability to lock-down class of service, pre-configuration, bundled hand-sets

BGAN Terminal

Tariff

NetworkConnectivity


Applications

Interconnect

Services

Support

Mobile office / Field agent / Claims processorSingle User Mobile Office

October 200531

Best Effort IP Connection (492Kbps) – Store & Forward4Kbps Circuit Switched Voice

CS Call

BGAN Device

RAN & SGSN

HUB


BGAN Multi-User

Standard class connection

2

1

Head Office

Internet

PSTN

Mobile office / Field agent / Claims processor - Single User Mobile Office

October 200532

Benefits:

• Ease of use – deployed, set-up and operational within minutes

• Portability – Class 3 device (A5 size / ~1Kg) supports both IP and circuit switched applications

• Functionality – single device used globally

Nera device

Mobile office / Field agent / Claims processorSingle User Mobile Office

October 200533

Rapid deployment, field operations proposition Multi-User Mobile Office


Streaming Class IP 256kbps +, multiple bonded 256kbps Streaming connections via multiple devices

Portable Mac (OS10.1) , Sony video camera, RJ11 voice handsets, night vision attachment, bureaux office servers to receive video/audio from the field.

Proprietary software application, G.722 on Mpeg2, Mpeg4, MS Office, Mac OS10,




Class 1 /2, terminal bonding/channel muxing, deactivate GPS track & proof of status, SIM card details on MMI, external antenna, remote control of device, ruggedised device, ability to lock-down terminal, panic button functionality, long life batteries

BGAN Terminal

Tariff

NetworkConnectivity


Applications

Interconnect

Services

Support

October 200534

Best Effort IP Connection (492kbps) – Store & ForwardDedicated IP Connection (128Kbps)

Email, Internet, Intranet,

FTP

BGANDevice

RAN & SGSN

PSTN

HUB


Multi-user VoIP calls

2

1

Connectivity

from DP to

customer hub

preserves end-to-end

QoS

Head / Branch Office

VoIP GateWay

Internet

Rapid deployment, field operations proposition Multi-User Mobile Office

October 200535

Benefits:

• Multi-use – Eleven + users supported on a single device

• High speed – up to half a megabit available across a single device

• Flexibility – Enables multiple users to run streaming, standard class or VoIP sessions simultaneously

• Number of sessions only limited by 492kbps throughput of device

Thrane & Thrane Explorer 500

Rapid deployment, field operations proposition Multi-User Mobile Office solution

October 200536

BGAN Key benefits

Reliable • Dependable, peace-of-mind communications• Robust satellite terminals• 24/7 customer service

Global • Network coverage wherever you go• Use the same device worldwide

High-speed • Up to half a megabit – symmetrically if required• Plus on-demand guaranteed data rates• Replicate your broadband office environment on the move

Portable • Service accessible via small, lightweight devices

Flexible • Integrated solution for voice and broadband data• Supports IP and circuit-switched applications• Terminal options for single or multiple users

Easy to use • Easy to set up, use and support

Secure • Secure access to VPNs.• Supports all major encryption standards.

Value for money

• Competitive with other MSS operators• More cost effective than international cellular roaming

October 200537

Agenda

The Process

Launch Propositions

Customer Feedback

Next Steps

October 200538

Customer requirements

• Antennae– Tracking (Vehicular)– External

• Short term lease• Pricing tools• Streaming class reservation• Voice options

– Multiple simultaneous calls– Secure encrypted calls

• Device locking– Block certain services

• Peripheral equipment– PDA interface

• 256Kbps + streaming– Terminal bonding– Channel muxing

• MMI reporting– Clear referencing

• Remote terminal activation– Alarm monitoring– CCTV– Establishing class of service for

end user– Remote diagnosis– SCADA / ATM

October 200539

Feedback on strategic questions

• Can Inmarsat take a share of handheld MSS voice market with BGAN?– Print media – “voice will be a nice add-on, but we will not get rid of our

Thuraya handsets”– Print media – “voice on the move is a key requirement”– Print media – “voice capability of BGAN is a key benefit”

Implication: BGAN can displace elements of MSS voice

• Can Inmarsat attack low-end VSAT market with BGAN?– Media – “We currently swap to VSAT after 8 weeks”– Construction – “We will not deploy VSAT if project duration is less than six

months”– Broadcast – “bonding two BGAN terminals will enable us to replace our VSAT

trucks”

Implication: Some indication that convenience is more important than price

October 200540

Agenda

The Process

Launch Propositions

Customer Feedback

Next Steps

October 200541

Key activity timeline

Customer meetingsCustomer meetings

Technical scopingTechnical scoping

Proposition Proposition assessmentassessment

Beta testBeta test

Q1/05 Q2/05 Q3/05 Q4/05 Q1/06

Build propositionsBuild propositions

MessagingMessaging

Q2/06

1

2

3

4

5

6

ActivitiesActivities

Core sectorCore sector

Non-Core sectorNon-Core sector

PM = Proposition PM = Proposition ManagerManagerSM = Solution ManagerSM = Solution Manager

October 200542

Next steps

• Commence testing activities – September 05– Protocol test / bench– End-to-end test– Beta test – October 05

• Develop messaging – September 05– vertical sector messages – collateral for launch– Key sector end-customer testimonials – November 05

• New sector identification – September 05– Identify focus sectors– Key account targeting– VP meetings – October 05

BGAN Competition

The Competitive Environment for BGAN and Positioning for Success

October 200544

BGAN market space (1)

• Inmarsat has conducted an extensive programme of market intelligence since Q1 2004

• Total market for L-band voice services is estimated to be $500m with an installed base of around 500,000 = annual ARPU of $1k.

• Total market for next-generation L-band services is predicted to be worth $800m a year by 2010 with 50,000 installed units = annual ARPU of $16k. [Source: Northern Sky Research]

• Total VSAT market estimated as $38bn in 2002 but less than 5% related to corporate communications. IP broadband via satellite is still a nascent market. [Source: Bain]

October 200545


• Predicting the addressable market for BGAN is challenging– Market is still emergent– BGAN is a completely new product proposition– Slow development to date of terrestrial high-

speed mobile data market

• Inmarsat has concluded that BGAN will occupy a unique market position, with only small overlap with other technologies

October 200546


High

Low

Portability

Data

D

em

an

d

HighLow

BGAN

VSAT

3G

MSS

Portable HSD

October 200547


• Portable high speed data– Rapid deployment, highly moveable, stationary during

use – BGAN’s primary market– Very limited competition within MSS

• Semi-fixed applications– Transportable but only moved occasionally,– VSAT services offering high data speeds (up to 4 Mbps)

with bulky, expensive equipment– Possible for BGAN to compete in some circumstances

October 200548


• Fixed – Never moves – portability is therefore not a factor– VSAT services offering high data speeds (up to 30Mbps)

with equipment costs either the same or lower that BGAN– Possible for BGAN to compete in very limited

circumstances

• Mobile– Consumer and business voice and low speed data services– High levels of competition from cellular and MSS handheld– BGAN cannot compete directly as not truly mobile– Voice traffic will be an upside from a primarily data sale

October 200549


Portable Semi-fixed

Fixed

• On the move/pause

• “Nomad”

• Up to one week in the same location

• In same location for an extended period

• “Campus”

• >1 week up to several months

• Permanent installation

• Alternatives are unreliable, low bandwidth, expensive or slow to deploy

Primary focus

Opportunistic sale

October 200550

BGAN competitionA top level view

• Portable HSD and semi-fixed– MSS systems, e.g. Thuraya DSL– Transportable VSAT– Terrestrial systems, e.g. 3G and WiFi

• Mobile voice and fixed data– MSS handheld systems– GSM cellular systems– Fixed VSAT

October 200551

BGAN vs. ThurayaDSLServices BGAN ThurayaDSL

Voice & Fax Yes No

ISDN at 64 kbps Yes No

Streaming class IP data 32, 64, 128 and 256 kbps No

Packet mode data Up to 492 kbps Up to 144 kbps

Cost of user terminal $ 1,000 – $ 3,500 > $ 2,000

Other services & features

Size and weight of UT A5 – A4+, between 1 – 2.5 kg A4, 1.6 kg

3G supplementary services Yes No

Voicemail Yes No

TCP/IP accelerator Yes No

Interfaces Ethernet, USB, Bluetooth, WiFi Ethernet only

Source –Thuraya sales material 4/05

October 200552

BGAN Competitive positioning vs. MSS HSD

BGAN advantages • Seamless global coverage • Smaller terminal• Greater ease of use for data• Higher data rates• Simultaneous voice available through

same terminal• Simultaneous ISDN and IP data

BGAN is equal • R-BGAN has similar form and functionality to ThurayaDSL

October 200553

BGAN Competitive positioning vs. MSS handheld

BGAN advantages • Better coverage than regional players • Greater reliability and call quality• Greater ease of use for data• High data rates available through same

terminal• IP data with lower volume-based

transmission costs• Ability to serve multiple users• Non Contact Radiation

Handheld advantages

• Smaller terminal• Convenient for voice

October 200554

BGAN Competitive positioning vs. GSM

BGAN advantages • Seamless global coverage• More secure connection• Greater ease of use for data• High data rates through same terminal• More cost effective for international

roaming • Ability to replicate office environment in

remote locations• Ability to serve multiple users

GSM advantages • Smaller terminal• Easy to use• High level of market awareness

October 200555

BGAN vs. transportable VSAT

October 200556

BGAN vs. transportable VSATBGAN Swe-Dish

Coverage and capabilities

Coverage*

Q4 2005 – IOR (1/3 of the globe)Q1 2006 – Worldwide (85% of earth’s land mass)*2007 – Global

Regional (fragmented)

Number of satellites *3

Many regional satellites support this service. A service provider would

therefore need to liaise with a number of satellite operators should more

than a regional coverage be needed

Size and weight of UT A5 – A4+, between 1 – 2.5 kg Suitcase terminal, 39 kg

Services

Voice (kbps) 4.0 and at 64 4.8 – 16

Fax (kbps) 3.1 and at 64 9.6

* Requires the successful launch of all three I-4 satellites, F3 to be determined in due course.

October 200557

BGAN vs. transportable VSAT

BGAN Swe-Dish

Services

ISDN Yes No

Streaming Class IP Data 32, 64, 128 and 256 kbps No

Packet Mode Data Up to 492 kbpsUp to 4 Mbps downlinkUplink is however lower

Cost of user terminal $ 1,000 – $ 3,500 > $80,000

Other features

GPS Yes No

True user terminal mobility Yes No

Susceptibility to weather conditions

No Yes

October 200558

BGAN Competitive positioning vs. transportable VSAT

BGAN advantages • Seamless global coverage• Portable solution and therefore more

flexible • Instant set-up with no technical

expertise required• Cheaper hardware• Simultaneous voice/ISDN with IP data• Easier regulatory environment• Less “niche”

VSAT advantages • Higher data rates• “All you can eat” pricing

October 200559

BGAN Competitive positioning vs. 3G

BGAN advantages • Seamless global coverage via one network

• Simultaneous ISDN and IP data• Faster connection speeds• Secure connection• Single bill and usage tariff regardless of

location

3G advantages • Smaller terminal• Market awareness

Synergy as BGAN multi-user terminals will fill gaps in 3G coverage

October 200560

Competitive positioning vs. WiFi

BGAN advantages • Portable solution and therefore more flexible

• Seamless global coverage• Simultaneous voice available through

same terminal• Simultaneous ISDN and IP data• Secure connection• One bill • Does not require a fixed line

WiFi advantages • Higher data rates• Flat-rate pricing

Synergy as BGAN multi-user terminals will support WiFi

October 200561

BGAN Competitive positioning vs. fixed VSAT

BGAN advantages • Seamless global coverage• Portable solution and therefore more

flexible • Instant set-up with no installation by a

technical expert required• No end user training required• No set-up costs • Simultaneous voice or ISDN with IP data• Easier regulatory environment

VSAT advantages • Higher data rates• Hardware often included in airtime

package• “All you can eat” pricing

October 200562

BGAN - market segment

Mobile Portable Semi-Fixed Fixed

Data Only

Data/Voice

Voice Only

Mo

tiva

tio

n t

o

bu

y B

GA

NTarget Usage Segment

• Use BGAN functional advantage to gain market share with aggressive pricing options for data, to counter semi-fixed VSAT and competitive voice vs. other MSS to up-sell voice

• Maximise lease opportunities

• Attract voice only usage once terminal is purchased/deployed

New market opportunity

Can compete

Main market

October 200563

Inmarsat’s “supplier level” competitive advantages• Market leader for 25 years with established customer base

• Recognised brand amongst core segments - global coverage, service reliability, GMDSS

• Portfolio to address varying needs

• Global channel presence

• Next generation satellites – one successfully launched and second to be launched shortly; fully funded

• Clear migration path to next generation, high-value services

October 200564

Your “service level” competitive factors

• Building loyalty with your SP’s & customers through service enrichments and attractive pricing points

• Understanding of your SP/customer needs

• Knowledge of which solution best fits SP/customers’ needs

• Before and after sales services

• Value-added services

BGAN

Unleashing The Power Of The Demonstration

October 200566

BGAN selling-demonstrations

Train your salespeople to be able to develop and deliver a 20 minute customised demonstration that shows the customer:

a) Something that matches the customers own application needb) Highlights your most relevant USPsc) How the value chain can enhance their productivityd) How BGAN will reduce their costs!!e) Something that demonstrates how BGAN beats the competition

BGAN Pricing

Creating The Best Packages to Attract The Right Customers

October 200568

BGAN offers value for money not just commodity units

• The feature richness of BGAN should always be sold over and above the actual cost of a minute or megabyte

• What is the value of flexibility? Having the ability to up & move your remote office at short notice, without having to re-install connectivity at a new site with the project downtime this may cause is invaluable.

• Real time file transfers can mean real money to a company, minute 1, a file can be worth £100k, minute 3, £50k, minute 5 onwards £0

October 200569

BGAN pricing strategy - core positioning

• High-speed mobile data with voice• Unique – BGAN is a leader, not a follower• A premium service• Still largely a multi-niche play• Need to move focus away from price to overall value

BGAN is a superior integrated product offering based on reliability, performance, ubiquitous coverage, security, portability

and flexibility

October 200570

Voice service pricing

• Very competitive voice price

• Target end user price <$1 per-minute

• Good channel margins

October 200571

Voice

Product description Direct dial service, 4kbps

Product positioning Baseline product

Pricing objectives • Encourage take-up within new segments

• Increase ARPU among existing customers

• Compete more effectively against other MSS players

Pricing unit Per minute

Target end-user price

< $1 per minute

Target sectors All

October 200572

Standard IP

Product description Background class, contended serviceup to 492 kbps

Product positioning Baseline product

Pricing objectives • Encourage take-up within new market segments

• Stimulate increased penetration and usage within existing market segments

Pricing unit Per MB & end user packages


To be defined

Target sectors All

October 200573

Premium IP

Product description Streaming class32, 64, 128, 256 kbps (symmetric at launch)

Product positioning Premium product

Pricing objectives Maximise value extracted for superior service level



To be defined

Target sectors Primarily:• Government• Broadcast Media

October 200574

ISDN

Product description One 64 kbps “Bearer” channelOnly available on one device at launch

Product positioning Legacy product, providing smooth migration path to IP

Pricing objectives Minimise revenue cannibalisation as existing GAN customers switch to BGAN



To be defined

Target sectors Primarily:• Government• Broadcast Media

Link

October 200575

BGAN Packages – What are they?

• Standard pricing model for Broadband data, both in fixed line and cellular industries with typically a minimum contract duration.

• Inclusive allowances of Standard IP and Voice for a fixed monthly subscription fee.

• Improved value for increased monthly subscription.

October 200576

BGAN Packages – Why have them?

• With high data speeds and increased traffic volumes, paying on a per MByte basis is not always a suitable pricing model.

• End users want fixed costs to avoid ‘bill shock’, as it becomes more difficult to predict usage volumes.

• Benefits to SPs:– Convert unpredictable usage based revenues to predictable

subscription based revenues.– Minimum contract duration ties users in, allowing

opportunity to have an on-going relationship with users.– Low data prices to change perception of Inmarsat being

expensive to broaden market reach for BGAN.– Increased margins as users usually purchase allowances that

are larger than their requirements. Any usage outside allowance will be at a rate higher than the implied rate in the allowance.

October 200577

BGAN Packages – Options for DP’s & SP’s

• Use standard Inmarsat packages as building blocks to create new retail packages. Improves differentiation and helps to target different market and customer segments.

Example:Inmarsat Standard IP allowances are 20, 100, 750 & 2,000MBs. SPs should fill in the ‘gaps’ with own packages.

• Minimum duration subscription based pricing gives the opportunity to include a subsidy for terminals.

• Ability to create bespoke allowances for individual customers

October 200578

Package Options

Reducing prices in bundles

Increasing subscription

Increased access to services

Standard IP

Allowance

VoiceAllowanc

eVoice

Standard IP

ISDNIP

Streaming

Standard Plan

Basic Postpay

Entry Plan

Mid Plan

High Plan

Super Plan

October 200579

Pricing: Things You Should Know (1)

• There is a minimum charge for circuit switched voice, data and streaming data based on a minimum duration

• There is a minimum charge for standard IP data based on data volume

• These minimum charges will apply to each CDR• If a single call or IP session straddles more than

one CDR then the minimum charges may apply more than once to that session

• This will only be significant if the call length or data amount is not as great as the minimum call length or data volume charging thresholds.

October 200580

Pricing: Things You Should Know (2)

Service Billing Unit

Minimum Charge

Billing Increments

CDR Cut

Voice Per Minute 30 seconds 15 Seconds Per Hour

Streaming IP

Per Minute 30 seconds 15 Seconds Per Hour

ISDN Per Minute 30 seconds 15 Seconds Per Hour

Standard IP Per Mega Byte

50 Kbytes 10 Kbytes Every 2 Mega Bytes or 12 hours

Text Per Text Message

N/A N/A Per unit sent

October 200581

Regulatory

Models– Status Quo : User obtains licence/visited country – Service Provider or DP : applies for licence in a country

Global circulation of terminals– Only Yemen forbid access to Inmarsat terminals– Use can be subject to conditions which vary from country

to country– Info in regulatory database– Support from Inmarsat to obtain terminal licences– Enforcement currently light

BGAN Sales Course v1.2. PowerPoint

Business

Transcript of BGAN Sales Course v1.2. PowerPoint