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Smartphone Industry Strategies: How Devices Can Revitalize the Role of Operators in the Mobile Ecosystem

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Revolution has been sweeping the mobile telecom world for years by the rise of a new ruler - the smartphone. In this report, Pyramid Research presents strategies for mobile operators to use in response to the challenges brought by the new situation. It examines strategies such as device portfolios, smartphone distribution, subsidies, buy-backs, trade-ins, reverse subsidies, own-branded devices, handset financing, data-sharing, tablets, OTT services. This report examines the device strategies of five mobile operators in depth: ATandT, MTS, Telefónica, China Unicom and Orange.

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Introduction and Landscape

Revolution has been sweeping the mobile telecom world for the past few years. Despite being characterized by fast-paced change from its infancy, the industry has been shaken to its foundations by the rise of a new ruler: the smartphone. Under its reign, traffic has moved from voice to data, and power has shifted from the mobile operators to application developers, OTT service providers and most of all the leading OS providers. In the report Smartphone Strategies: How Devices Can Revitalize the Role of Operators in the Mobile Ecosystem, Pyramid Research presents strategies for mobile operators to use in response to the challenges brought by the new situation.

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The report shows how a mobile operator can use its device strategy to reposition its business in order to both defend itself against damage from the smartphone revolution and to make the most of the many opportunities the revolution has ushered in. It examines strategies such as device portfolios, smartphone distribution, subsidies, buy-backs, trade-ins, reverse subsidies, own-branded devices, handset financing, data-sharing, tablets, OTT services. This report examines the device strategies of five mobile operators in depth. In terms of their business environment and device strategy, each of the five has specific experience that we believe provides valuable insights from which providers from around the globe can learn when drawing up their own strategies: ATandT, MTS, Telefónica, China Unicom and Orange.

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