The blog Boy Genius Report, a frequent leaker of internal RIM documents which prove accurate, has released an operator pitch RIM is using to propose a prepaid service which targets LATAM, APAC, and key WE countries.
As the recent Nielsen data suggest that the iPhone's fastest growing consumer segment is users with income below $50,000 this market segment has demonstrated willingness to pay for wireless data services. Launching a prepay service will significantly expand RIM's addressable market and uptake rate. As RIM points out, the majority of mobile customers are prepay.
What RIM is proposing: The end customer purchases a device and one year of BIS service through retail. The second prepay model is a standard prepay or top-up account with the device purchased through retail (no subsidy) and purchases services incrementally through SMS, ATMs, scratch cards, etc.
Positioned as cost and security control targeting students and SOHO needing flexibility, not targeting lower incomes.
RIM positions operator benefits as:
Shifting inventory finance risks to retailers
Reducing churn / increasing engagement of prepay customers
Increasing EBITDA through ARPU lift on prepay customers
The deck suggests RIM is targeting Mexico, Brazil, Chile, UK, France, Italy, Germany, Spain, Australia, and India.
RIM offers the following GTM learnings for Ovi service lines:
Use people/people images in all promotional material to clearly illustrate service concept and educate on benefits
Retail experience critical, emphasize placement near front door
Needs to be bundled with unlimited data plan
Requires specifically trained sales people
"Better to sell in few locations that have much traffic and have stock than in many that run out of stock"
Incentivize indirect channels beyond activations i.e. margin on devices
