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Introduction

ABS-CBN has decided entered the mobile arena as an MVNO, signing up more than a million users within 10 months of launch. But the company is struggling to boost its ARPU and has yet to break even, leaving management to ponder how to grow revenues or risk going out of business.

Highlights

  • Its MVNO agreement with Globe Telecom enabled ABS-CBNmobile to launch a full-scale operation from day one, with ready access to Globe’s nationwide network.
  • The bundling of exclusive TV content for mobile users has proved to be a good strategy to target TV enthusiasts and the youth segment. Although its start has been impressive, Ovum expects greater challenges if the MVNO continues to focus on a niche segment of low-value customers.
  • For business continuity, it will be critical for ABS-CBNmobile to target high-value prepaid users and shift away from its current volume-based subscriber model.

Features and Benefits

  • Evaluates the competitive strategy of ABS-CBNmobile.
  • Evaluates ABS-CBNmobile's pricing strategy.

Key questions answered

  • Will ABS-CBNmobile's business model sustain growth?
  • Is ABS-CBNmobile's focus on exclusive content good for long-term success?

Table of contents

Summary

  • In brief
  • Ovum view
  • Recommendations

Overview

  • Media conglomerate ABS-CBN enters mobile business
  • Video component – the iWant TV app

Strategic goals

  • Using ABS-CBN branding to cross-sell mobile offerings
  • Targeting youth segment with apps and chatting packs

Business model

  • Sharing revenues with Globe Telecom
  • Service pricing
  • Reaching breakeven

Marketing strategy

  • SIM distribution
  • Partnering with handset makers
  • Advertising

Appendix

  • Methodology
  • Further reading
  • Author

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