Page 12 - Mobile World Daily - Day 4
P. 12

NEWS

iPhone 6 sales                                                                      like they were in freefall,” she said.   Telco and tech M&A
drive up iOS                                                                           In Europe, Android’s share            to continue apace,
share in China                                                                                                               despite challenges
                                                                                    declined by 2.2 percentage points
By Anne Morris                           urban China with iOS’ share of the         year-on-year to 67.2 per cent while      By Joanne Taaffe
                                         smartphone market reaching 25.4            iOS rose by 3.2 points. After losing
Apple’s iOS operating system             per cent – a 4.5 percentage point          its top spot to iOS in the holiday       The financial industry expects            “Authorities are
         reached its highest ever        increase over the same period in           quarter of 2014, Android bounced                 no immediate let-up on last       starting to
         share in urban China with an    2014," said Carolina Milanesi, chief       back in the US with a share of 51.9              year’s fast pace of mergers       understand that the
iPhone accounting for one in every       of research for the company.               per cent, the research company said.     and acquisitions in the telecom and       industry is setting
four smartphones sold, according to                                                                                          technology sector. Instead, today’s       itself up for a data
data from Kantar Worldpanel                “Across key global markets                  “As vendors flocked to Mobile         heated M&A environment may                only world”
ComTech for the three months to          Apple’s momentum generally                 World Congress this week to              unleash big surprises.
end-January.                             continued from last month, although        showcase their latest products it is                                              it comes to acquiring small start-ups
                                         Android was able to slow down the          noticeable how many have decided           “Cash-rich [Internet] companies        with different cultures, “it’s important
  “Leading into Chinese New Year,        decrease in share in some countries        to focus on the mid-tier as success      may start sniffing around telcos,”       not to kill what you bough,” she said.
Apple iPhone 6 and 6 Plus drove          such as Germany, Spain and France          at the high-end appears more and         suggested Tony Poulos, market
sales to an unprecedented high in        where its sales had started to look        more unattainable,” Milanesi             strategist at WeDo Technologies,           For European telcos, in-country
                                                                                    commented. “However, while mid-          speaking on the Tuesday panel            M&A continues to makes the most
Smart mobile apps                                                                   tier consumers might be more             Enabling M&A for Industry Growth.        sense, according to speakers.
key to capturing                                                                    accessible than high-end ones,
consumer attention                                                                  manufacturers will have to work            The value of mergers and                 Operators “should start with in-
                                                                                    harder than ever to stand out in an      acquisition in the technology and        market consolidation, then fixed-
By Paul Rasmussen                        customers. In terms of the here and        increasingly crowded marketplace.”       operator sector grew 34.9 per cent       mobile convergence … then
                                         now, if a customer wants to make a                                                  in 2014 from the previous year,          international – the latter is very
Digital marketers typically              purchase using their mobile device            “Many businesses are looking at       according to B. Holt Thrasher, MD        complicated,” said Mats Granryd,
          overlook how to keep           and they can’t, they’ll turn to a          ways to engage customers                 for Mooreland Partners. “The last        CEO of Tele2.
          customers engaged by failing   competitor. This is then likely to         throughout their physical to digital     time it was that high was in 2000,”
to monitor the user’s experience         shape their buying decisions in the        experience, such as knowing when         said Thrasher. And last year                But international consolidation is
within a mobile app. Did the app         future; why turn back to a company         potential customers are near a shop      telecom M&As represented three of        much less likely to raise the ire of
perform and, if not, where was the       that failed, when a competitor has         and then serving a tailored ad to their  the ten biggest deals.                   the European Commission.
experience failing customers?            proven it can deliver. The third area,     mobile device that offers discounts
                                         a company’s reputation, is the one         to encourage them to enter.”               But although telecom operators            “The commission generally
   These issues, according to Jennifer   area that is often overlooked.”                                                     and equipment manufacturers              welcomes cross-border M&A – it
Tejada, CEO of Keynote, a cloud                                                       Keynote believes that the use of       speaking on the panel still see          reproaches too many in-country
testing, monitoring and analytics          Customers are much more likely to        big data can help to determine what      opportunities to use mergers and         deals”, said Thomas Wessely,
firm, can be significantly reduced by    complain about a bad service than          makes for a successful customer          acquisitions to grow or transform        partner at Freshfields.
accepting that preparation is key to     praise good, and are willing to add their  experience and can inform the            their companies, they rang a note
understan ding a consumer’s              impression to the app ratings, said        business on where to make                of caution.                                 As a result, gaining approval for
behaviour when using a mobile app.       Tejada. “If businesses can’t support       improvements that maximise their                                                  in-country deals is slow, complex
                                         customers on mobile devices, many          digital investments.                       Ericsson, for example, views           and uncertain. But there may be a
   “If you know that your mobile site    others will also turn to competitors.”                                              M&A as a potential means to              shift in mindset at the commission.
can deal with spotty coverage, has                                                                                           transform its business as the
minimal third party apps slowing           The Keynote CEO maintains that                                                    industry moves towards software-            “Authorities are starting to
down the site beyond your control,       personalising a mobile app is                                                       based service delivery.                  understand that the industry is
and you can be sure it loads as quickly  mostly about understanding the                                                                                               setting itself up for a data only
as possible and has a low tolerance to   context of the customer.                                                              “Our previous approach was             world,” he said.
downtime, you have created the best                                                                                          more focused on filling gaps. We
environment to grab consumer               “In terms of the                                                                  are now looking at a complete view          “The Commission is a bit of a Dr
attention and take them through to         here and now, if a                                                                of which new business we need to         Jekyll and Mr Hyde. When you
the check out,” she said.                  customer wants to                                                                 be in,” said Rima Qureshi, SVP, CSO      discuss the merits … [of a deal]
                                           make a purchase                                                                   & head of M&A, Ericsson.                 they are extremely conservative…
   A company stands to lose out in         using their mobile                                                                                                         .When you come with
three key areas from having a              device and they                                                                     Qureshi, however, questioned           convergence and OTT as an
poorly designed mobile web site,           can’t, they’ll turn to                                                            today’s high valuations of software      argument they are not very
according to the Keynote CEO.              a competitor.”                                                                    companies.                               receptive. The commission views
“Revenue from the customer now,                                                                                                                                       [market consolidation] as [a
revenue from the customer in the                                                                                               “There is an interesting way of        question of] fixed cost
future, and revenue from other                                                                                               increasing value by throwing in buzz     efficiencies,” said Wessely.
                                                                                                                             words. Traditional valuations need       However, the commission still
                                                                                                                             to be reassessed when looking at         gave the green light to in-country
                                                                                                                             software companies,” said Qureshi.       telco consolidation in Germany,
                                                                                                                                                                      Ireland and Austria, despite
                                                                                                                                The executive also stressed that      national opposition, he noted.
                                                                                                                             “the performance on acquisition is
                                                                                                                             not necessarily stellar. It’s an
                                                                                                                             important caveat. An acquisition ... is
                                                                                                                             not a panacea, it’s not going to solve
                                                                                                                             the problem.” And particularly when

Context data boosts                                                                 development: “Data analysis allows       management attention.                    what its customers want. In this case
operators’ reactions                                                                operators to provide a better              “A number of T-Mobile US               the issue was escalated within the
                                                                                    service with higher quality and                                                   company and a resolution achieved.”
By Paul Rasmussen                        starting to take place in real-time,       improved efficiency. Twitter can         customers were requesting the
                                         says Bret Herd, head of telco              now offer another data filter they       ability to roll-over their unused           Herd maintains that context data
Work underway within                     strategy and development at                didn’t have six to nine months ago.”     monthly data to the next month,          is become a meaningful differentiator
             Twitter’s telco group is    Twitter, as context data associated                                                 something operators do not offer.”       for operators. “It’s an X-factor, and
             helping mobile operators    with a user is better understood.            Speaking at Tuesday’s Context is       The operator reacted promptly to         we’ve seen it worth fighting for to
react better to customer service                                                    King session, Herd provided an           these tweets by launching a new          boost real-time customer service.”
requests and reduce churn. This is         Herd claims that mobile context          example where Twitter had acted as       service to overcome this
                                         data is driving product and service        the channel for mobile subscribers       dissatisfaction.                           Twitter is planning to unveil a
                                                                                    to request action from their service                                              data context dashboard too in the
                                                                                    provider – and received immediate          “A senior exec within T-Mobile US      near future to make analysis easier
                                                                                                                             monitors Twitter each day to see         and quicker.

PAGE 12 Thursday 5th March                                                          MOBILE WORLD CONGRESS DAILY 2015 | www.mobileworldcongress.com
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