Sms Telecom Day Sms Ej

SMS Strategy Development and Execution PlanTelecom Day

April 12th, 2002

SMS-Strategy_Development_Execution_Plan-041202-EJ

Agenda

SMS Opportunity

Strategy and Execution

Competitor Analysis


Western Europe

41%

Japan34%

Asia (ex. Japan)

12%

South America

3%

Eastern Europe

8%North America

2%

SMS OpportunitySMS is a global phenomenon

SMS is a global phenomenon and contributes a significant portion of wireless network operator revenues in several countries.

Global SMS Messages Total Messages by Region

Source: GSM World, EMC, Merrill Lynch, DCI.

Billions per Month

Source: Merrill Lynch.

SMS Usage and Revenue Contribution

24

10

29

20

Apr-99 Dec-99 Jun-00 Dec-00 Jun-01

CAGR:243%

22%

10%7%

4%<0.5%

10%8%

437

340

762153

177

Phillipines Japan Germany UK Singapore Australia US

% of Total Revenue

Messages per Mob Sub per Month

% of Total Revenue

Messages per Mobile Sub per Month


SMS OpportunityInteroperability is Critical

Overseas experience indicates interoperability and bill per message are key milestones to ignite SMS growth.

0

500

1000

1500

2000

2500

3000

Apr-99

Oct-99

Dec-99

May-00

Aug-00

Dec-00

Mar-01

Jun-01

UKGermanyPortugal

Selected SMS Market Ramp-up

Source: EMC, Merrill Lynch.

Million Messages per Month

InteroperabilityPrepaid SMS

Portugal

UK

Germany

1. Interoperability agreements implemented across all of Europe enabling SMS messaging across all GSM networks in Europe

2. Pricing schemes to reduce barriers to entry

- Pay per message sent (i.e. CPP)

- Pre-paid SMS offers

3. 100% of handset base is 2-way SMS enabled

4. Benefits of SMS proactively communicated

5. SMS focused promotions

Key Success Factors


SMS OpportunityUS lags in adoption and usage

Until now, US operators have not been able to enjoy the same amount of success .

Europe vs. US Benchmarks (2001)

Europe US

# u

se

rs

160M

6.5M

#

mes

sa

ge/

Mo

nth

12B

<1B

Yo

uth

Mo

bile

Pe

ne

trat

ion

70%

37%

SM

S E

na

ble

d H

and

set

s

100%

<50%

Source: Merrill Lynch, GSM Association, CDG, DiamondCluster analysis.

1. Carrier interoperability for message exchange not consistently implemented; mobile coverage less consistent

2. Calling-party-pays regulation and limited availability of pre-paid offers limits penetration of low income and youth segments first adopters of SMS

3. Mobile penetration at 39% still low compared to >60% in Europe and 2-way SMS enabled handsets are at <50% of US base vs ~100% in Europe.

4. Carriers have only begun to actively promote SMS

5. High penetration of computers and low cost for landline internet access in US favors use of Instant Messaging

Why the US Lags?

Europe US

Europe US UK US


SMS OpportunityWhere is the Money?!

Source: GSM World, EMC, Merrill Lynch, DCI.

Peer to peer messaging is expected to have the highest business impact in the short run, but content should play an important role in generating awareness and driving adoption.

SMS Revenue Breakdown

Europe - 2001

Source: JP Morgan/Arthur Andersen—Wireless Data, Feb 2001, DCI research.

0%

25%

50%

75%

100%

2000 2001E 2002E 2003E 2004E 2005E

Messaging Other

SMS Revenue Breakdown Forecast

Europe - Revenue Forecasts

Other Services

10%

Text Messaging

90%

SMS revenue in Europe is driven by simple person to person text messaging

US mobile services adoption lags Europe by 2 years


Agenda

SMS Opportunity


Competitor Analysis


Strategy and ExecutionStrategic Guidelines

Leverage Points Action Steps

Customer Segments

Interoperability

Content & Applications

Pricing

Promotions & Communications

• Target high potential SMS users within USC’s customer base

• Focus on text messaging as the primary revenue generator• Develop selective content offering through partnerships

• Simplify pricing plans

• Develop Mass education and awareness program• Develop Targeted Promotions

• Implement inter-carrier interoperability at national level


DiamondCluster has been primarily involved in the development of the business case, design and implementation of marketing initiatives and in the co-ordination of SMS dependent activities across all areas of the organization.

Program Management

Cares Integration

SMSC Technical

Implementation

Sales and Customer

CareTraining

Handset Strategy

Construct and Monitor Business Case

Marketing Initiatives

Strategy and Execution Work Tracks

Inter-Operability


Strategy and Execution Project Team

Project Lead

MarketingInitiatives

SMSC RollOut

DCI

• David Benson

Steering Committee

Subject Matter Experts

As Needed

USC

DCI USC

USC

Billing SystemRoll-Out

USC

Interoperability

USC

HandsetStrategy

USC

Sales and C.Care Training

USC

BusinessCase

DCI

John RonnEduardo Job

•Ryan Lanier

• Carolina Aguilar

• Sarah Cannizzo

• John Ronn• Janet Vink• Peter Cremer

• Parks Hisey

• John Ronn • John Ronn • Kara Joiner•Sander Den

Hartog

PMO

DCI

• John Coyle

Project Areas

• Alan Ferber

DiamondCluster team was deployed in the marketing initiatives, business case development and program management execution work tracks.


• All BAN’s/CTN’s identified with family members between 11-17 (from MARS)

• Subsegment: the intersection of all BAN’s in a non-business shared plan with family members between 11-17

• Users with higher than average “on-net” mobile to mobile calls

• All BANS/CTN’s identified between 18-25 (from MARS)

• (above merged with) lowest 25% of ‘minutes included’ pricing plans for the individual (<=200 minute plans)


Teens StudentsYoung

Professionals Business UsersFamilies

• All BANS/CTN’s identified between 26-34, and all ‘self motivated professionals (from MARS)

• (above merged with) highest 25% of ‘minutes included’ pricing plans for the individual (>=1000 minute plans)


• More than (2) 12am-3am calls during the preceding month.

• All BANS/CTN’s identified between 35-59, and all ‘Power callers’ and ‘talking tradesmen’ (from MARS)

• (above merged with) all business plan customers


Five potential early adopter segments were identified.

Strategy and ExecutionEarly Adopters Target Segments

STEP 1

• All BAN’s/CTN’s identified with family members between 11-17 (from MARS)


STEP 2

STEP 3


Strategy and Execution Offer Design Methodology

Long list

Short list

Final Offer

• Benchmark: List with all the

different SMS services that are being offered by European and US players

• Business impact: Prioritize

offers with fastest take up rates and highest potential for revenue generation

• Technical feasibility:- Billing- Platforms- Customer

Service

• Includes services that have passed the first filter

• Potential promotions

• Potential pricing structures

• Final definition of the service offering

• Communication strategy

• Focus groups: Test the

services, promotions and pricing structures• Brainstorming

- Generate ideas of new innovative SMS services

Filter

Filter

A short list of SMS services was tested with focus groups to define the final offer.


Strategy and Execution Services Priority List

Results from focus groups indicate text messaging, push/pull information alerts and ringtones should be prioritized.

Positive

Negative

Text Messaging

Closed-User Group

Content (2)

Co

mm

un

ica

tio

n

(1) Other applications are Palm-to-SMS, Operator-to-SMS.(2) Only available for Nokia handsets.(2) Includes the description of the recommended offer for launch.

Description

• Send and receive SMS messages to/from handset, e-mail, IM, Web, pager, etc...(1)

• Group service that allows a mobile subscriber to send and receive SMSs to/from a predefined user groups

• Downloads: allows user to download ringtones, logos and games into his handset

• SMS Push/Pull basic well formatted information (news, sports, stocks, ...)

PriorityRevenue Impact

ImplementationComplexity

Focus Group Interest


The promotion campaign for launch has three distinct phases to generate awareness, stimulate adoption and usage.

Strategy and Execution High Level Promotion Phases

Phase 1(Mass)

Phase 2(Targeted at segments)

Phase 3 (Targeted at users)

Objective Dependencies RationalePromotion Description

• Raise awareness

• Convert users

• Stimulate Usage

• Turn on users• Capture text

message responses

• New SMSC• Interoperability• Downloads etc.

• Bill per message,

• Sweepstakes to all segments asking customers to send a text message to win a prize (can respond via web or mail too)

• Targeted promotions to selected segments: free for one month, free gift etc.

• Heavy users: free games, other usage promotions

• Non/low-users – free anytime voice minute for each text message sent

• Encourages trial• Takes advantage of

competitor category build

• Communicate new features

• Promotes adoption

• Generates more revenue from heavy users

• Generates revenue from non- users


Strategy and Execution High Level Promotion Schedule

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February March April May June July August

Purchase Installed Bill per message

Enable all users to send SMS

Communicate interop and

New Pricing Plans

Legacy pricing plans

Per message pricing

Task

Phase One - Mass(Sweepstakes)

Phase Two - Targeted(Gift/free SMS)

SMSC rollout & dependencies

Prep Extend if SuccessfulLaunch

Launch

Billing for non-plan usage

Free month/TBD

LaunchPrepPhase Three – Targeted (Usage Stimulation)

TBD

Prep


Strategy and Execution “Mobile Messaging Moola”

The Mobile Messaging Sweepstakes will use a Mobile Messaging outbound campaign reinforced by bill inserts and Web site content to raise awareness and educate the customer base about the service.

Objectives

• Raise awareness • Remove barriers for adoption and stimulate

image• Gather customer data

Expectedresponse

• Response Rate: 4%• Total responses: 93,627• Take up rate: 1%• New Mobile Messaging Subscribers: 23,407

Media Mix• Mobile Messaging outbound campaign• Bill inserts• Web content and entry form

Targetsegments

• Mass Market Promotion:- Except subscribers younger than 18, due to

legal restrictions• Number of potential customers: 2,3M

Timeline • Weekly sweepstakes from May, 1st to June, 24th

Marketing ObjectivesCompany Confidential


Strategy and Execution Revenue model: Goal Scenario

Key Revenue Drivers Revenue Forecast

Source: Gartner Group, Cahners In-Stat, US Cellular, DCI analysis.

180 K 255 K 332 K

23 45 60

$0.18 $0.12 $0.09

Users(*)

Msg/User(**)

Revenue/Message(*)

We conservatively estimate SMS revenues will grow from $4.9M in 2002 to $18.1M in 2004 driven by expected increases in penetration from 1.5% of the base today to 7.4% by the end of 2004.

• Messaging user base grows from current 1.5% of network subscribers in January 2002 to 7.4% in December 2004

• Downloader user base grows from 1% to 5% of network subscribers in 2004

Users

SMSUsage

Pricing

• Messaging usage climbs from 15 messages per SMS user per month in January 2002 to 60 in December 2004

• Downloads grow from 1 to 2 per downloader per month in 2002 to 2 in 2004

Service Offering

(*) EOP. (**) Per month.

• Assumption:- 1) Advanced Mobile Messaging: $4.95/mth- 2) Mobile Messaging: $2.95 /mth- 3) Pay Per Message: $0.10/msg

• Download price is set at $1 and 50% revenue share is assumed

• Interoperability introduced in June 2002 with InphoMatch and migration over time to direct connections with other operators

• Per message billing product introduced in August 2002

• Downloads are introduced in August 2002 for both CDMA and TDMA markets

1,236

2,552

9,9204,835

15,55465

4.8% 6.2% 7.4%0

4,000

8,000

12,000

16,000

20,000

2002 2003 2004

0%

10%

20%

30%

40%

50%

Cahners In-Stat USpenetration forecast.

4,900

11,156

18,106

Revenues Penet.

Downloads revs (000s)Messaging revs (000s)Messaging penetration (% of base)


We expect penetration and revenue growth to accelerate in 2002 driven by interoperability, bill per message and improved functionality of new SMSC.

154182

210239

268

447491 512

543573 588

629

1.7%1.9%

3.1%3.4% 3.7% 3.9% 4.2%

4.5%4.8%

1.5%1.3%1.1%

0

100

200

300

400

500

600

700

J F M A M J J A S O N D

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%Revenues ($000s)

SMS penetration (% of Base)

Strategy and Execution Revenue model: Goal Scenario (cont.)

Revenue and Penetration Forecast- (2002)

Note: usage is presumed to stay constant at current level for 2002, increasing by 50% once interconnection is realized.

# Messages per user per month 15 15 15 15 15 23 23 23 23 23 23 23


Strategy and Execution Success Fees

Time-frame

Milestone Incremental

Annualized Revenues*

Success FeeMaximum Fees to DCI

Q3 2002

SMS revenue 100% above current USC forecast

July US $2,474,000 US $96,666 US $540,000August US $2,569,000 US $96,667

September US $2,662,000 US $96,667

Total Success Fee US $290,000


July US $3,712,000 US $136,667 US $660,000August US $3,854,000 US $136,667

September US $3,994,000 US $136,667



July US $4,949,000

US $176,666

US $780,000

August US $5,139,000 US $176,667

September US $5,325,000 US $176,667



July US $7,423,000

US $256,667

US $1,020,000

August US $7,708,000 US $256,667

September US $7,987,000 US $256,667

Total Success Fee

US $770,000

Skin in the game was a key selling point for this project and we remain on target for the 100% milestone in either August or September (or both).


0

20

40

60

80

Apr 00 May 00 Jun 00

Strategy and Execution Interoperability Usage Impact

(*) AT&T experience CHECK (SMS Forum)

Opportunity Cost of Delaying Interconnection

0

40

80

120

160

Jan99

Feb99

Mar99

Apr99

May99

Jun99

Jul99

Aug99

Sep-99

Oct-99

Nov-99

Million Messages per Month

Million Messages per Month Interoperability

200%

150%

Sources: EMC, Merrill Lynch, MobileSpring, DiamondCluster analysis. Sources: DiamondCluster analysis.

June2002

December2002

?

Illustrative$M

Revenue Shortfall Due to Delay

In Interoperability

Inter-operability Impacton Usage/Revenues

Australia

UK

Interoperability is critical to drive SMS adoption with immediate impact on revenue/usage of up to 200%.


Strategy and Execution Third Party Deals Interoperability Update

Six of top 10 carriers representing 70% of US subscriber base have already signed up with InphoMatch and or MobileSpring.

AT&T Wireless Nov 01 17.1M InphoMatch

Century Tel Mar 02 0.8M InphoMatch

Cincinnati Bell Nov 01 0.5M InphoMatch

Cingular Apr 02 21.3M MobileSpring

PrimeCo NA NA InphoMatch

Sprint Apr 02(?) 12.4M MobileSpring

Verizon Wireless Apr 02 28.7M InphoMatch

VoiceStream July 01 6.3M InphoMatch

Date # of Subs* IC Provider

Total US 123.0M 69.85%

*3Q01


Technical timelines provide the greatest risk to the success of the SMS promotions.

Strategy and Execution Critical Dependencies and Recommended Actions

Risk MitigationRecommended

Action

SMSC implementation

Interoperability

Bill per message

• SMSC implementation is delayed

• Interoperability is delayed

• Bill per message is delayed

• Complete integration and test by end of April

• Complete agreement, connectivity, and test in parallel with new SMSC: complete by end of April

• Accelerate Bill per message capabilities in CARES

• Facilitate PR and PO• Consider hiring full

time SMS network engineer

• Begin negotiations and connectivity as soon as PO for SMSC complete

• Consider raising the priority of BPM over other CARES issues


Agenda

SMS Opportunity


Competitor Analysis


SMS Offer

Pricing

Promotion

Communi-cation

Target Segments

Product Name

The basic SMS offerings are very similar between operators but they all have different ways for marketing and pricing the service.

• 25¢ a day regardless of usage or volume

• Free to receive

• Text Messaging

• Prepaid SMS• Information alerts• Ringtones• Interoperability

• Started by targeting teens but now also targets college students

• Text messaging includes voicemail

• SMS communication incorporated into overall branding

• Pay-per-use or monthly fee

• Free to receive

• 2-way Text Messaging

• Information alerts

• Ringtones and graphics

• AOL IM over SMS

• Interoperability

• Business and consumer users

• Not available

• Incorporates SMS in mLife campaign

• Text messaging brochure included with bill


• Pay to receive

• Interactive Messaging


• Ringtones and games


• Consumers• No teen/college

distinction

• Free NCAA basketball alerts

• Reinforces self-expression brand attribute

• Markets SMS as part of wireless data offering


• Pay to receive

• Mobile Messenger/ Spk ‘n Txt

• Prepaid and Postpaid SMS



• Consumers• Teen/College

separately

• Online SMS typing game

• SMS considered a “Calling Feature”

• Different communication for teens/college

• Bundled inbound• Monthly fee• Pay to receive

• Ping Pong


• Ringtones and graphics

• AOL IM over SMS


• Business and consumer users without deep segmentation

• Free LOTR rings and graphics

• Marketing SMS as a wireless e-mail solution

• Not hyping Interoperability

• Two pricing plans with unlimited messages

• Mobile Messaging

• Information alerts (for 1-way subscribers only)

• Business and consumer users

• Not available

• Clear, direct language• No SMS sales pitch

on Web site

Competitor Analysis Summary


Competitor Analysis I-Wireless (Cincinnati Bell)

Prepaid Offer and Pricing:“Text Messaging”

• Although prepaid SMS is treated as a standard feature of the prepaid product, subscribers must proactively sign up for SMS because of its fee

• Only one available handset (Nokia 5165) and it is two-way SMS-enabled- Ensures SMS compatibility and facilitates instructing users about SMS

• Two-way interoperability with Cincinnati Bell Wireless and AT&T- Uses InphoMatch as a third party provider for all other operators

• Free local high school basketball scores alerts- Partnering with local news channel and Web site to provide alerts

• Information alerts• Ringtones

- Supplied by Sonera Zed• Pricing:

- Two-way SMS: 25¢/ day, regardless of use or volume - Receive only: free- Ringtones: $1.00 deducted from prepaid balance for each download

Text messaging is incorporated into the overall I-wireless product and marketing instead of promoted as an add-on feature.

Sources: Company Web site and promotional literature.

I-Wireless Communication and SMS Promotions

I-WIRELESS COMMUNICATION• SMS is incorporated into overall I-wireless branding and communication

strategy- Does not promote a particular benefit or reason for using SMS

• Focuses SMS educational text on teaching users how to send/receive messages- The text messaging “Tips” page instructs users about shortcut keys and

handset functionality instead of icons and SMS vernacular• Language directed at youth market

- “Show me the goods”- “It’s way easy”

• Communicates ideas that appeal to teens- Immediate gratification: “I-wireless is freedom. Now.”- No Hassles: ”I have no monthly bills”- Egocentric: Uses “I” in all product names (e.g. “I get free text messages)

and in section headings of the online guide (e.g. “I need talk time”) - Control: “I live by my terms”

• Originally targeted teens, now expanding to include college students- Newer advertising campaigns include drink coasters with pick-up lines and

commercials set in bars• Gee, Jeffery & Partners is the Advertising firm and Canadian firm Medium

One designed web-site and CD-ROM interactive demo for launch

SMS PROMOTIONS• For a limited time text messaging price includes voicemail


Competitor Analysis I-Wireless Marketing Case Study

I-wireless has successfully positioned itself on the fine line between trendy non-conformity and socially unacceptable deviance to attract its target segments.

Sample Print AdsI-Wireless Marketing

• All communication materials include an “I” statement which reflects back to the brand name and maintains brand consistency- I like to score- I hate greek week- I deserve I-wireless- I am not to be underestimated

• The product is presented as one that upholds key ideals of the target segments (teen/college students):- Independence- Non-conformity- Social success/acceptance

• Marketing materials reinforce brand attributes- “I live by my terms” is repeated in most

communications- Commercials depict characters who are both

unique and socially accepted individuals• Communication materials are distributed to

hotspots of the target segments- Drink coasters function as print ads in bars


I-wireless started as a teen brand but has started to expand its base by targeting college students as well.

Teens Teens Teens

TEXT MESSAGE #1: Party 10:00. Matt

TEXT MESSAGE #2: Meet at 6:30 our spot. Jen

GIRL: Hey. How was your day? [also said in sign language]

GUY signs a response.

END TEXT: Send and receive text messages with your phone. Two way Text Messaging now available.

Competitor Analysis I-Wireless Marketing Case Study: Teen Commercials

TEEN: Hey wait man. You can’t forget this. I like your shoes. Those are shiny shoes. Later, man. May I help you cross the street?

ELDERLY LADY: Let go of me. Let me go!

TEEN: People say I’m a good person and you know what, I believe them. Have a nice day. Elderly lady: Wha- Chippy, where are you dear?

TEEN: I’ve been good. I deserve I-wireless.

TEEN: Oh I’m popular now. It all changed pretty quickly. People just need to get to know the real me…. So, Saturday night then. You just gotta know how to present yourself.

Script/Text

“SMS” “I’ve been good” “Popular”

Ad

Target


College College/Teens College/Teens

BOY: Hey guys, guess who’s finally going out with me? Gretchen!

[Tarzan-esque Cheers]

FRIEND CALLING: Hey big stud. Did you get lucky yet?

GRETCHEN:That depends on how fast you can get here…. I am not to be underestimated.

Competitor Analysis I-Wireless Marketing Case Study: College/Teen Commercials

TEXT:

I have free caller I.D. Your ex-boyfriend will hate this.

I have digital prepaid. His complaints will come in clear.

I have free text messaging. He’ll even put it in writing.

I have 10¢ minutes evenings and weekends. In case it takes awhile…to get him to stop…crying.

I live by my terms.

GIRL: I live by my terms. IVR: Welcome to the I-wireless

telemessaging service. To identify yourself as a subscriber, please press #. Please enter your password. Dana Raven, you have new messages. First new message

GUY: Hey it’s Chad. Call me. Message deleted. Hey Dana, it’s Chad, the captain of the football team?! Last night was fantastic. Why don’t you give me a— Message deleted. Hey Dana, me again. Uh, maybe, uh, you lost my number or something. It’s 555-653— Message deleted. Hey— Message deleted. Look if you’re not— Message deleted.

NARRATOR: I-wireless comes with free voicemail and caller I.D. for those calls you’d rather not pick-up.

GUY: I thought you said I was special. Message deleted.

NARRATOR I-wireless affordable prepaid digital service.

Ad

Script/Text

Target

“The Date” “Ex-boyfriend” “Quarterback”

Radio Ad


Competitor Analysis I-Wireless Marketing Case Study: Coasters

Target College Students in their “natural habitat” by incorporating pick-up lines into the “I” campaign

Drink Coasters


Competitor Analysis AT&T

Offer and Pricing: “2-way Text Messaging”

• Interoperability with almost all US carriers - First to offer SMS interoperability in the US (as of November 2001)- Uses InphoMatch as a third party provider

• Information alerts• AOL Instant Messaging over SMS• Online Message center for sending messages• Ringtones and graphics

- Supplied by Sonera Zed• Pricing:

- No monthly charge: receive unlimited messages; 10¢ for every messages/IM sent; 10¢ for every IM command (e.g. Sign On or Sign Off)

- $4.99/month: receive unlimited messages; send up to 100 messages/month (additional messages: 10¢ each); 10¢ for every IM command (e.g. Sign On or Sign Off)

- Ringtones and graphics: $0.99 (standard) or $1.99 (premium)

AT&T is not targeting one group in particular but marketing text messaging to all segments as an alternative way to communicate.


SMS Communication and Promotions

COMMUNICATION• Incorporated into mLife campaign on Website and in a TV

commercial- One mLife commercial (friendly speed skating rivalry) features text

messaging as an alternative way to communicate- SMS section of Web site has mLife logo

• Treats SMS as an add-on feature• “Express yourself without saying a word”• Detailed instructions on Web site for sending and receiving

messages- Language emphasizes ease of use

• Text Messaging brochures included in some bills- Cover has a young woman wearing a suit but the short glossary is

not business-related (includes Hugs and Kisses, How cool is that, football and beer)

- Includes functional instructions as well as “Handy Abbreviations”- Selling SMS as an alternative way to reach people and stay

connected- Attacking the perception that text messaging is difficult by using the

tag line “It’s Fun. It’s Easy” on the cover.• Targeting Business and Consumer users

SMS PROMOTIONS• Not available


AT&T is not only selling wireless services, but it also markets lifestyle that is made possible by the communication options it provides.

Competitor Analysis AT&T Marketing Case Study: Lifestyle Branding

Sample SMS AdsAT&T Marketing• Markets its services as enabling customizable connections for

every situation or need- “Your world. Close at hand.”

• Targets the broad wireless market, including business users, but it differentiates itself from the other mass market operators by positioning itself as a premium provider relative to the other operators

• As AT&T is not targeting as specific segments as I-wireless, its key brand attributes must be concepts that appeal to a wider range of people:- Personalization- Adaptability/Flexibility- Trustworthy

• The new mLife campaign reflects the same brand attributes of previous campaigns but with a new emphasis on the way these services can be integrated into existing lifestyles- “We are meant to live a wireless life.”

• Wireless services, including SMS, are linked to popular media events such as the Olympics and the daily MTV show Total Request Live (TRL)- These associations reinforce the connection the AT&T brand

establishes between its wireless services and the lifestyles of potential and existing customer base

• 2-way text messaging is treated as one more way to communicate– another medium in the range of options provided by AT&T- “Talk or Text. It’s your request.”- “Sometimes text says more than talk.”

mLife Campaign

Pre mLife

Beat this:1:47:10

Beat this:1:47:10


Competitor Analysis AT&T Marketing Case Study: Lifestyle Branding

AT&T Wireless Services AT&T Wireless Services 2-way Text Messaging

NARRATOR: We are meant to lead a wireless life.

Now we truly can.

Welcome to mLife from AT&T Wireless.

NARRATOR: Why do we leave? Why do we keep coming back? Why do we seek adventure, yet long to return? Why do we look forward to reunions when we couldn’t wait to get out of school? Why do we want to be alone sometimes but never lonely? Why do we say there’s no place like home and why can’t we always stay there? Why do we travel to distant places and look for familiar faces? Why can’t we stay connected, yet be free? Can’t we have both? Now we can with mLife, where we will be connected in new and better ways to the people and things we care about. Welcome to mLife from AT&T Wireless.

TEXT MESSAGE #1: Beat this: 1:47:10

NARRATOR: Sometimes text says more than talk.

Welcome to mLife from AT&T Wireless.

TEXT MESSAGE #2: No- beat this! 1:47:05

Script/Text

“Why?” “Friendly Rivalry”

Ad

Product

“Belly Button”


Competitor Analysis Cingular

Offer and Pricing: “Interactive Messaging”• “Info Alerts”• Interoperability using InphoMatch• On-Demand Ringtones and On-Demand Games (also available in

Wireless Internet form) - For SMS versions must subscribe to Interactive Messaging and

DirectBill- Ringtones provided by PWS- Games platform provided by Mforma

• Pricing:- Pay-as-you-use: sent and received messages: 10¢- $2.99/month: 100 messages; additional sent/received: 10¢- $5.99/month: 250 messages; additional sent/received: 10¢- $9.99/month: 500 messages; additional sent/received: 10¢- Ringtones and On-Demand Games: $0.99 each

Cingular’s SMS communication materials reinforce the self-expression component of its quirky, casual brand.


SMS Communication and Promotions COMMUNICATION• Cingular’s overall branding is focused around expression: both

self-expression and communicating with others- Tag line: “What do you have to say?”- SMS communication is consistent with overall expression branding- Ringtones enable self-expression and text messaging is another

way for customers to “yackety-yak”• Treats SMS as a Wireless Data service, part of My Wireless

Window Product- 2G Wireless Internet monthly rate ($4.00/mon.) requires the

purchase of Interactive Messaging 100 plan or higher- All Wireless Internet GPRS plans include Interactive Messaging

bundles• Promotes individualization

- “They’re playing my song”- “Why have an identity crises every time a wireless phone rings?”- “Choose a ringtone that tells the world what you like, what mood

you’re in or what season it is”• Casual language

- “Info Alerts” instead of “Information Alerts”• Detailed instructions for sending/receiving messages by handset

model number but no SMS vernacular glossary• Targets all consumer segments (not teen/youth specific)

- Cingular Interactive is the Business provider

SMS PROMOTIONS• Free NCAA basketball alerts


Competitor Analysis Verizon

Offer and Pricing:“Mobile Messenger/Spk’nTxt”

• Information alerts• Interoperability using InphoMatch• Online Messaging management (www.vtext.com and

www.msg.myvzw.com)- Manage addresses, send individual or group messages, receive

messages and delivery confirmation, assign nicknames, set-up personal/calendar alerts, request information alerts

• Pricing:- $0/month: 2¢ received, 10¢ sent- $2.99/month: 100 messages; additional: 2¢ received, 10¢ sent- $7.99/month: 600 messages; additional: 2¢ received, 10¢ sent- Prepaid: 5¢ sent or received

Verizon is marketing SMS differently to appeal to distinct youth and business/adult segment characteristics and values.



COMMUNICATION• Two different names:

- Called “Mobile Messenger” in regular VZW communications- Called “Mobile Messenger-Spk ’nText” on youth (teen/college) Web

site www.free2tlk.com and in communication for prepaid product (called FREE^UP)

• Highlighted benefits on regular site: fast, fun, discreet, and inexpensive

• Treated as a “Calling feature” not as a Wireless Data feature (unlike Cingular)

• Very little instructional information on regular site- Hype the Web management of SMS (send, create group SMS,

receive, build address book, assign nicknames, calendar alerts, information alerts) with an online demo (the only VZW SMS demo)

• Prepaid brochures contain instructions and explanations of SMS capabilities as well as SMS glossary

• Regular Web site has not updated its 2-way coverage information- It says 2-way SMS is only available in parts of Washington state and

Oregon• More emphasis on SMS on Free2Tlk.com youth site

- Targets teens and college students by positioning SMS as trendy - SMS is marketed as giving its users freedom- SMS vernacular used extensively throughout site (e.g. most section

headings on home page are written in SMS vernacular)SMS PROMOTIONS• “Play Mouth Off”

- Free online game to test users’ speed in typing text messages


Competitor Analysis Voicestream

Offer and Pricing: “Ping Pong”• Interoperability with almost all US carriers

- Uses InphoMatch as a third party provider (as of January 2002)• Information Alerts• Power Messaging through online Message zone

- Group SMS, customize filters, create e-mail alias, assign nicknames• AOL IM over SMS

- One handset has AOL IM embedded (Nokia 3390 Gold)• Ringtones

- Ringtones (provided by PWS) on MyVoicestream.com are for Nokia handsets only

- Motorola handset users must go to Motorola’s Web site• Pricing:

- National and regional plans include 50 incoming messages; 5¢ each add’l incoming message and 5¢ for each outbound message

- Talk and Text plans includes 500 in/outbound messages or 1Mb of data (GPRS); additional in/outbound messages: 5¢

- PingPong add-on plan: $2.99.mon. for 500 in/outbound messages; additional in/outbound messages: 5¢

- AOL IM on Nokia 3390 Gold: $2.99/month- Signing into or off of AOL IM (unlike AT&T) does not reduce message

bank or cost overage charges- Ringtones from MyVoicestream.com: $1.00 each

Voicstream is pushing its AOL Instant Messaging capabilities as well as the e-mail functionalities of SMS.


SMS Communication and Promotions COMMUNICATION• Markets SMS as an e-mail service for handsets

- “Speak your mind, anytime, anywhere, with anyone who has an e-mail address”

- Call SMS “short e-mails” - Emphasis that every subscriber has an e-mail address based on her

10-digit phone number • Not hyping interoperability because it is not an obstacle for e-mail• Highlights SMS capabilities such as group SMS, forwarding,

nicknames• Emphasis on ease of use in online Ping Pong demo• Web site does not clearly explain that messages bundled in voice

plans (except with the Talk and Text plan) are incoming only; brochure make that distinction more clearly

• Markets ringtones as” cool” and a way to personalize wireless handset and service

• Vague send/receive functional instructions- Tips for AOL IM are more detailed than Ping Pong instructions

• Web site includes a separate SMS/IM glossary• Targets: Business and Consumer users without a deeper

segmentation

SMS PROMOTIONS• Free Lord of the Rings ringtones, graphics, and screensavers (deal

between AOL, Voicestream, and PWS)


Competitor Analysis ALLTEL

Offer and Pricing: “Text Messaging”

• Information alerts• All digital phones are two-way SMS enabled• Also sell “2-way Messaging” for non-phone devices

(Motorola)• Pricing:

- $5.00/month- Unlimited two-way messaging

Although ALLTEL has clearly segmented its market, it is not proactively selling SMS.

Sources: Company Web site, Customer Care.


COMMUNICATION• ALLTEL is not pushing SMS services

- No description of the service is included on the Web site- No pricing information available online- Handset descriptions do not mention SMS capabilities

• Web site has “Shop by Lifestyle” feature but SMS is not highlighted in any group description or in any of the segments’ plan and handset combinations - Segments:

• Today’s Communicator• Business Traveler• Hometown/Around town• Family Ties• Young Adult• Safety and Security

SMS PROMOTIONS• Not available


Competitor Analysis Ringtone Providers

• Download with Mobile Browser• Only available for 1xRTT-enabled handsets

Ringtone Providers Comments

• Download with Mobile Browser • Deals with Sony/ATV Music and EMI • Uses Openwave’s Download Fun platform

– Openwave does not provide the content

• AT&T also has a direct relationship with Sony Music

• Cingular also has a direct relationship with Sony Music

• Cincinnati Bell uses Zed

• AOL, PWS, and Voicestream had exclusive “Lord of the Rings” deal including ringtones

Note: PWS is owned by Vivendi.Sources: Company Web sites, news releases.

Sms Telecom Day Sms Ej

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