4.4 GPRS Business Model
4.4.2 Organisational Arrangements
For the MTNdataLIVE package there were no significant changes to the organisation. The current MTN Call Centre handles all queries and complaints related to GPRS. The normal sales channels were utilised to sell the product. There were no major marketing and promotional campaigns to promote the service. The only big campaign was when MTN allowed free use of the GPRS service for the first six months following the launch of the
service. All the contents for the WAP portal (MTNICE) are being developed and maintained by third parties. MTN only provides connection to the Internet for its mass market GPRS subscribers.
There were various organisational changes that were implemented for the MTN CorporateMobility package. MTN chose to outsource most of the functions relating to corporate mobility. Essentially MTN has adopted a "connectivity model" where it is basically only the data transport provider. The provisioning of connectivity and enabling of services are delivered by third parties. The sales, connectivity and first line support are all handled by outsourced entities. MTN has no direct contact with the corporate customer. This allows MTN to focus on its core capabilities, i.e. maintaining the GPRS network and providing the required quality of service. It also allows MTN to avoid investments in service platforms and to minimise marketing and distribution spends for the new service by encouraging third parties to create and serve the market. MTN's main rival, Vodacom, also adopted a similar strategy for its GPRS service. In line with the current trend in the industry, Vodacom also does not provide any value added services but relies on partnerships with other companies to provide the services and applications.
Firstly, MTN introduced a new retail entity called the Wireless Data provider (WDP) specifically to offer mobile end-to-end solutions based on the package. The WDP has the pre- sales and post sales capacity as well as the end-to-end delivery capability to provide mobile data solutions including any relevant applications. They will also be exclusively involved in the reverse billing of data to the corporate customers. The WDP will be the interface to the customer and this includes first line commercial and technical support. No voice traffic will be handled by the WDP.
Any party, such as a solution or telemetry provider can apply to become a WDP, if they meet certain qualifying criteria. The National Key Account Manager (NKAM) in MTN Sales manages the WDP applications and supplies all the necessary information to the potential WDP. The basic criteria for a WDP are:
> General Criteria
• Financial viability
• Basic technical and organisational capacity (sound management)
• Black economic empowerment component
> WDP Tailored Criteria
• Strategic level commitment to growing the market in the longer term
• Pre-Sales infrastructure
• Project management capability and capacity
• Post sales support and service - 24 X 7 call centre ability to resolve technical queries routinely
> Sales Targets
• Certain minimum number of VPDNs will need to be established
• Each VPDN will have to achieve a minimum monthly throughput
• Total megabytes of traffic
• Number of mobile numbers associated with or using the VPDNs
WDPs enter a synergistic relationship with MTN in which their existing business model is enhanced through a partnership with a GSM operator known to lead in the mobile data market. Reverse billing affords the WDP rapid access to customers regardless of legacy relationships with cellular service providers. The billing relationship also provides flexibility in the provision of core mobile bearers and associated services.
Another new entity created is the Network Service Provider (NSP) that provides bulk connectivity to corporate clients. MTN will sign up the NSPs. The national key account manager will also mange the NSP applications and supply all necessary information. The basic criteria to qualify for a NSP are:
> Be an existing first tier Internet Service Provider (ISP) or a major network infrastructure provider
> Have in-house skills in secure (VPN, Internet protocol security) services that have CISCO or equivalent certification
> Offer RADIUS (Remote Authentication Dial-In User Service), hosting and firewall services
> Have direct peering with other NSPs
> Have points of presence in Johannesburg, Durban and Cape Town
> Maintain a call centre 24 hours, seven days a week (24 X 7) The NSP is responsible for:
> Connecting to the MTN Mobile Services Gateway Point (MSGP)
> Assisting customers and WDPs in configuring VPDNs
> Providing ancillary services to basic connectivity
> Providing first line support for connectivity 24 X 7
NSPs can add value to existing services through mobilisation. They can offer new services to enhance MTN CorporateAccess, such as managed connectivity, firewalls and security and hosting. NSPs are well positioned to become WDPs or to form strong alliances with WDPs.
Through these changes MTN hopes to provide their customers with a better experience, mobilise the industry to co-sell MTN products and nurture the development of new applications. The operator also hopes to attract existing players and to leverage their market position, customer base and marketing energies, as well as the existing infrastructure of these players to afford the customer a better pre-sales, implementation and post-sales experience.
MTN will now manage fewer, higher-volume links and provide quality, focused technical and support services. MTN can also leverage the connectivity and commercial relationships that NSPs have with their existing customers. The MTN CorporateMobility platform is fundamental to the deployment of many other services such as bulk messaging. The reverse billing allows MTN to differentiate itself and to compete through the provision of bulk tariffs.