Smart Netphone Case Study

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Case study: Smart’s Netphone

© VisionMobile 2011

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Case study: Smart’s Netphone About VisionMobile VisionMobile is an industry analysis and strategy firm. We offer research reports, executive workshops and strategy at the crossroads of telecoms innovation and software economics. VisionMobile Ltd. 90 Long Acre, Covent Garden, London WC2E 9RZ +44 845 003 8742 www.visionmobile.com/blog Follow us: @visionmobile About the sponsor This case study is sponsored by Red Bend Software, a key partner behind the launch of the Smart Netphone. VisionMobile has retained full editorial control of this study. License Copyright © VisionMobile 2011. All rights reserved. Feedback? For comments, feedback and more information: hello@visionmobile.com Disclaimer VisionMobile believes the statements contained in this publication to be based upon information that we consider reliable, but we do not represent that it is accurate or complete and it should not be relied upon as such. Opinions expressed are current opinions as of the date appearing on this publication only and the information, including the opinions contained herein, are subject to change without notice. Use of this publication by any third party for whatever purpose should not and does not absolve such third party from using due diligence in verifying the publication’s contents. VisionMobile disclaims all implied warranties, including, without limitation, warranties of merchantability or fitness for a particular purpose. VisionMobile, its affiliates and representatives shall have no liability for any direct, incidental, special, or consequential damages or lost profits, if any, suffered by any third party as a result of decisions made, or not made, or actions taken, or not taken, based on this publication. Also by VisionMobile Mobile Industry Atlas | 4th Edition The complete map of the mobile industry landscape, mapping 1,350+ companies across 85+ market sectors. Available in wallchart and PDF format. www.visionmobile.com/maps Contents Key takeaways The Smart Netphone Behind the scenes: the making of Netphone Building on WAC technology Short tail strategy The agile telco: What other operators can learn from Smart 3 4 5 7 8 8

© VisionMobile 2011

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Case study: Smart’s Netphone

Key takeaways
- Smart Communications operates in a 99% pre-paid market with average revenues per user (ARPU) of only $4. Yet, it offers one of the most sophisticated service portfolios across most global operators. Offered services include mobile payments, streaming TV and a maps service. - The Netphone is a bold attempt by Smart to bring smart devices and services to the mass market. The initial Netphone device is a rebranded, revamped ZTE Blade projected to launch in July, 2011, priced at an expected 120-$140. From 2012, the Netphone will expand to feature phones at lower price points. - The Netphone features a range of operator-developed apps, including prepaid balance check, unified chat, sender-pays email, connected address book, global directory, social radio, and Smart Money. The phone also comes bundled with applications from local service brands with whom Smart has established revenue share agreements for Netphone-initiated transactions. - The Netphone represents a major effort for the operator, involving an internal team of 300 staff, plus tens of business partners across six countries. It aims to increase service usage in the mass market, and generate additional revenues by enabling partner transactions, such as shopping and food ordering. - The Netphone uses a software update technology that can update the platform and applications continually over the air. Such updates allow the operator and its business partners to extend service reach and reduce development costs. The differential update technology reduces network bandwidth usage during updates. - When it ships in July, the Netphone is expected to be the first phone that builds on the WAC (Wholesale Applications Community)...
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