Best Practice From Abroad: What Hotspot @Home Can Teach Us Europeans
By Emma Mohr-McClune Principal Analyst, Wireless Services Europe
T-Mobile USA’ interpretation of Unlicensed Mobile Access (UMA) service modeling is distinctly different from anything we’ve seen so far in Europe. With no broadband network of its own, T-Mobile USA has deployed its T-Mobile@home service over ‘any’ broadband connection, including legacy home WiFi routers in the field and hotspots abroad.
Ultra-simple option-based pricing, a clear Family Tariff alignment and a markedly aggressive competitive agenda combine for one of the strongest UMA service propositions to date, anywhere. Until now, UMA has been a strictly European affair, but BT, Orange, TeliaSonera Denmark and Telecom Italia now need look to the US market for UMA service best practice.
Current Analysis Perspective
T-Mobile USA’ Hotspot @Home creates a new benchmark for UMA service innovation, and European operators need to take note of several aspects of this service for insights into how to refine and improve their own UMA-enabled service propositions.
In a nutshell, Hotspot @Home is a UMA-based dual-mode phone service which allows end-users unlimited calling from the home hotspot or any other T-Mobile or public WiFi point to US fixed and mobile numbers for a fixed monthly charge, modeled as an ‘option’ on top of an existing T-Mobile package. The promotional launch offer is US$10 monthly for individuals and US$20 for families (up to five lines), with a choice of two routers (D-Link and Linksys) for $49.99 (free after rebate).
The service offers a choice of two dual-mode handsets, the Nokia 6086 and Samsung t409 at US$49.99 a piece, together with a two-year contract. For us Europeans, however, the really interesting elements of Hotspot @Home lie in its entirely new interpretation of the existing UMA business model.
UMA: FMS, As Opposed to FMC
A key lesson we Europeans can draw from Hotspot @Home is the way in which UMA technology can be deployed by a mobile-only operator as part of an FMS (fixed-mobile substitution) strategy. In Europe, the first adopters of UMA service technology have been broadband or integrated fixed-and-mobile players with a vast broadband customer base to protect.
Perhaps this is why that the European interpretation of UMA service technology has been as an FMC-centric (Fixed-Mobile Convergence), broadband defensive initiative. European service providers have leveraged their respective UMA-enabled services to ‘put hooks’ into their existing DSL customer bases, and offset broadband churn. This broadband focus has led European service providers to emphasize the ‘FMC’ nature of the product, to underline the message that service ownership requires both a wireless and wireline element.
In their effort to ‘launch FMC,’ European service providers have tended to treat UMA services as exceptional cases, special service entities within their own rights, largely forgetting the wider market in which they play, and the standard GSM services with which they undoubtedly compete. Hotspot @Home teaches us how a different strategic agenda for the same wireless technology can help a service provider re-focus on competitive service modeling. It teaches us that UMA may also hold relevance for a mobile-only operator, and it shows us how. For, T-Mobile’s Hotspot @Home is designed to run over ‘any’ broadband connection: it uses second-party broadband as the transport mechanism.
UMA Over Second-Party Broadband
Ultra-Simple Pricing
Hotspot Access Abroad: UMA, The Roaming Killer
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