The war at home (pg 12) See who is winning the battle to own your connected home
Cloud 9 or stuck in fog? (pg 22) See which of these 10 sales tips for cloud storage you are missing
Awards shortlists (pg 25) iSellMobile Awards recognises industry’s best retail staff & releases
Sharp insight. Inspiring analysis www.mobiletoday.co.uk October 2016 ÂŁ2.70
Mast Scandal Have operators misled us about the cost of the network? (pg 9)
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Comment Noble House Media 1-10 Praed Mews Paddington London W2 1QY @mobile_mag /mobiletoday.mag EDITORIAL 07896 727464
Sharp insight, Inspiring analysis A new look provides you with more: insights, investigations, analysis, data and sales tips
EDITOR
Zak Garner-Purkis +44 (0) 7896727464 zak.garner-purkis@nhmedia.co.uk NEWS REPORTER
Kezia Joseph +44 (0) 7896727865 kezia.joseph@nhmedia.co.uk CONTENT AND COMMUNITY EDITOR
Jack Courtez +44 (0)7896727136 jack.courtez@nhmedia.co.uk PRODUCTION ASSISTANT/ LAYOUT SUB-EDITOR
Naomi MacKay mobile@nhmedia.co.uk
With spontaneous mobile combustion, spectrum legal battles and the arrival of tech monoliths from both east and west, it’s fair to say the industry has kept us busy this month. Now it’s our turn to repay the favour. We’ve used your feedback and survey answers to create a new and improved Mobile. From board rooms to research labs to shop floors across the UK, the new Mobile aims to deliver a depth and breadth that mirrors the entire mobile community. To achieve this, we’re dependent on your insight, your views and your feedback. I hope you’ll get stuck in and get in touch.
ADVERTISING 07896 727762 HEAD OF PORTFOLIO SALES
Mark Fermor +44 (0) 7896727762 mark.fermor@nhmedia.co.uk
GENERAL ENQUIRIES 07896 727725 PUBLISHER/MANAGING DIRECTOR Debra Doran
SUBS/CIRCULATION 07896 727725 Standard subs price: £70.20 Printed by Buxton Press Ltd ISellMobile Digital Product of the Year Commercial Initiative of the Year www.isellmobile.co.uk
ISSN 1472-0833 All material in this publication is covered by copyright. No part of this publication may be reproduced or transmitted in any form – electronic, mechanical, photocopying or otherwise – in whole or in part without written permission of the publisher. © 2016 Noble House Media Ltd. While considerable care has been taken in the production of this issue, no responsibility can be accepted for any errors or omissions. No responsibility can be accepted for unsolicited manuscripts, photographs, artwork or equipment. All correspondence is assumed to be intended for publication unless clearly stated otherwise.
Zak Garner-Purkis Editor Zak.Garner-Purkis@futurenet.co.uk
Contents
04 09
Mobile Download Fast facts, stats and news
Mobile Investigates Mast site cost: An investigation into the true cost of UK mast sites
October 2016
18
Interview Ronan Dunne: O2’s ex-CEO tells all about his time in the Slough hotseat
20
Tech Guide Headphones: The opportunities within the headphone market explored
12
22
15
24
Mobile Explores The connected home: A look at who will own the smart home market Analysis Phones 4u: Examining the biggest mobile retail collapse two years on
16
Power 50 Matt Hancock: The challenges facing the government’s mobile minister
10 ways to sell… Cloud sales tips: on how to sell one of the hottest new technologies
iSellMobile Store iSellMobile Awards shortlists revealed, visually impaired customer care guide & prize opportunities.
www.mobiletoday.co.uk October 2016
3
DOWNLOAD Fast facts, stats, news and debate
The debate: Is Samsung and Apple’s dominance good for mobile? YES
Zak Garner-Purkis SAMSUNG and APPLE create demand – it’s as simple as that. Even with mobile phones at 81% market penetration in the UK, these two manufacturers still have the power to drive people into retail stores and capture the public’s imagination. Operators, retailers, distributors and even other manufacturers benefit from the heightened consumer interest that these brands generate. Every pound spent by these two giants – and there are many millions of them – is one more that supports the mobile industry. It should also be noted that many all-conquering brands have come and gone from the mobile market. The rise and fall of brands such as Nokia and BlackBerry are
testament to the fact that a place at the top of the mobile market is only ever temporary. The demand these brands consistently deliver to the market presents an opportunity rather than an obstacle to its rivals and partners. If you can present a genuinely different, innovative product that stands out, the interest in mobile is guaranteed to you by the huge marketing budgets of Samsung and Apple. In fact, it encourages innovation because if gaining market share is simply a case of going blow for blow in spending terms, there is little motivation to create a product and for companies there isn’t the same benefit to being an originator.
‘Every pound spent by these two giants – and there are many millions of them – is one more that supports the mobile industry.’
PHONES
NO
Jack Courtez DESPITE a launch-day recall of Samsung’s second biggest device, not a single Android manufacturer has been able to capitalise on it. In the saturated UK market, trying to win users means taking on the financial and logistical muscle of Samsung. For many, the high spend required coupled with the low return makes the UK market unappealing compared with growing markets such as Brazil and India. For those that have tried, the results aren’t encouraging. Huawei’s door-busting entrance to the UK equalled 3.1% of sales in August. Samsung and Apple aren’t the first superpowers – Motorola and Nokia have both filled that
role, and both dramatically fell from it when a new player with deep pockets came along. However, that was when a growing high margin market met the risks with high rewards, not today’s saturated one. And it’s not just bad news for manufacturers, as evidence shows this muscle is being leveraged in the wider industry. In the past year we’ve seen Samsung threaten distributors over box breaking, and penalise retailers for not hitting sales targets, in the same way that Apple is renowned for. Economists from Keynes to Hayek all agree that a duopoly is bad for business and bad for consumers, Samsung and Apple’s is no exception.
‘Economists from Keynes to Hayek all agree that a duopoly is bad for business and bad for consumers, Samsung and Apple’s is no exception.’
Big releases Our round-up of the key releases this month APPLE iPHONE 7 The big question is how Apple’s iPhone gamble will play out long term.
4
October 2016
SONY XPERIA XZ The first non Z series flagship confused reviewers with an overall lower spec.
GOOGLE PIXEL The internet giant is hoping to attract customers with a long battery life and extra Android services.
ONEPLUS 3 A higher price due to Brexit, and in UK retail stores for the first time, it’s make or break for OnePlus.
www.mobiletoday.co.uk
Download
Stats STAFF TRAINING
The month in numbers
Shop staff saw trainer
220
Jobs at risk as Microsoft shuts London office
-27% Three’s handset revenue H1 2016
£20.5m Samsung Mobile’s UK marketing spend up to July 2016
3x faster
Data: iSellMobile member survey May 2016
WEARABLES
EE’s network may become due to spectrum imbalance
Accessory ownership
GOOD MONTH THREE Operator attracts plenty of press coverage in its attempts to get a cap on the spectrum auction.
VIRTUAL REALITY New technology continues to dominate following a strong showing at IFA.
WIRELESS HEADPHONES Apple’s lack of a headphone jack sees a jump in sales of wireless headphones.
Ups & downs CARPHONE WAREHOUSE Accidentally leaks pictures and specifications of new Google Pixel device.
BLACKBERRY Iconic brand stops making its own devices.
SMALLER PHONE MAKERS Set to be hit by component price rises.
BAD MONTH
Data: 2016 Ofcom mobile report
PEOPLE
Movers
A look at who has changed role recently MARK EVANS
JON MILLER
EVA WIMMERS
NICK JEFFERY
WAS:
WAS:
WAS:
WAS:
O2 CFO
BRIGHTSTAR, UK SALES DIRECTOR
SENIOR VP GROUP PROCUREMENT, DEUTSCHE TELECOM
ENTERPRISE DIRECTOR, VODAFONE GROUP
NOW:
CEO, VODAFONE UK The former head of Cable & Wireless will now run things in the UK.
NOW:
O2 CEO The big question is whether Mark Evans is ready to fill Ronan Dunne’s shoes.
NOW:
REDEEM, UK MD After nine years at Brightstar, Miller makes the move to its rival.
PRESIDENT EUROPE, HONOR Wimmers took over from Nicola Philbin.
NOW:
www.mobiletoday.co.uk October 2016
5
Component price rise predicted
Three prepared for legal battle over spectrum THREE has prepared for a legal battle after the upcoming spectrum auction, Stephen Lerner, the operator’s general counsel and director of regulatory affairs told Mobile. Lerner said the network was convinced EE’s owners BT and Vodafone would take
legal action should the regulator decide to rule in favour of Three. ‘We’re in a more difficult position because we need the spectrum,’ he said. ‘If you’re BT or Vodafone you don’t need the spectrum. So they could litigate this and keep the award
Ofcom kicks off crowdsourced project OFCOM has launched a crowdsourced research project to improve UK network coverage. Initially starting with Android users, volunteers can download the Ofcom Mobile Research app, which automatically measures the performance of mobile and Wi-Fi networks. This information will be supplemented by the user’s ratings. Explaining the thinking behind the project, the UK regulator said: ‘Ofcom’s research aims to
6
October 2016
build an independent benchmark for both consumers and industry. It will help mobile customers make purchasing and
from happening for the next two to three years. They could throw endless cash at it and potentially stop the award of the auction. Who does that benefit? It doesn’t benefit a player like Three that needs the spectrum. It benefits them. ‘If Ofcom makes the right decision to do something to ensure there’s a more balanced and level playing field. We’ll support Ofcom and take our chances in court.’
switching decisions, and will be used to enhance Ofcom’s mobile coverage maps and consumer research. ‘This will then feed into various Ofcom research projects, including a new study comparing telecoms operators’ quality of service in spring 2017.’
ANALYSTS CCS Insight have predicted there will be component price hikes in the second half of 2016, ‘stemming from shortages of screens, camera modules and memory’. The firm explained that these issues were a result ‘of a combination of the biggest names snapping up all available output, and recent earthquakes in Taiwan that have disrupted production.’
Odd call: iPhone dog WHILE many Apple fans were scrabbling about trying to get a hold of a new iPhone7, one lucky creature didn’t have to worry about it at all: Coco the Alaskan malamute. Luckily for the dog, its owner Wang Sicong treated it to eight phones. Sicong is the son of Chinese billionaire Wang Jianlin, who is worth an estimated worth $30 billion. It’s not the first time Coco has attracted controversy. The dog caused a storm in 2015, when photos of the canine wearing two Apple Watches with luxury bands worth upwards of $37,000 were posted online.
www.mobiletoday.co.uk
U
THIS HAMLION MAKES NO SENSE.
Sectionhead
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www.mobiletoday.co.uk 22 September 2016
Untitled-3 1
7
17/10/2016 09:51
Deloitte survey finds mobile ‘peak’
Senior figures react to MCCA2016 award wins A NUMBER of senior figures from within the mobile market have expressed their delight at wins at the Mobile Choice Consumer Awards 2016. Samsung mobile boss Conor Pierce was one of those in attendance who described the satisfaction of winning the Best Manufacturer and Phone of the Year awards: ‘Manufacturer of the year is the most prestigious prize to win,’
said Pierce. ‘The competition is intense, and the market is very competitive. It’s really good to see that people have voted for Samsung, seeing them as the most innovative and the manufacturer that has the biggest and best range. It means a lot.’ In the Best Network category it was EE that was triumphant. Its director of RAN, Mansoor Hanif, explained that he
BlackBerry stops making its own phones
8
October 2016
believed the success was testament to the fact that the operator had not become complacent despite it being the fourth year in a row the brand had claimed the award: ‘I was saying to my colleagues that several years ago we always aimed to win awards. To stay at the top is very difficult, so I’m really pleased that our teams have not become arrogant or complacent. Every time that we keep winning, I’m very proud of that. The day that we become arrogant or complacent is the day we stop winning.
BLACKBERRY has announced that it will stop manufacturing its own phones. The brand revealed the change of direction at its second quarter results. BlackBerry reported an 89% year-on-year growth in its software and services revenue for the quarter. Executive chairman and CEO John Chen explained that it was the development of its software and services business that had led to it to decide to end hardware manufacturing: ‘We are reaching an inflection point with our strategy. Our financial foundation is strong, and our pivot to software is taking hold.’
BRITAIN has entered the ‘peak smartphone’ era according to consultancy firm Deloitte. The annual survey by Deloitte found that 81% of the UK population (37 million people) own or have access to a smartphone. The figure jumps to 90% for 18-24 year olds. For the first time smartphone ownership outstrips laptop penetration, while fitness bands and smart watches are still way behind at 9% and 4% respectively.
O2 to exclusively stock OnePlus3 O2 will exclusively stock the OnePlus3 device, the operator has revealed. The network became the first UK retailer to stock the device, which was previously available on an exclusive basis. Customers needed an invite in order to buy the device. Previous iterations were highly rated by reviewers, which combined with the limited availability gave the product a degree of notoriety. However, the manufacturer announced a change of tact with its newest product, the OnePlus3, which will be available without an invite. www.mobiletoday.co.uk
INVESTIGATES
52,000 Number of masts in the UK
£8,657 Our calculated average rent per site
184 Number of councils who responded to our information requests
106 Number of councils with masts
£4,946 Our calculated average rural rent per site
£7,500 Industry’s average rural rent per site
-34% Our research shows rural masts cost over a third less than operators say
£11,346 Our calculated average urban rent per site
£9,200 Industry’s average urban rent per site
+18% Our research shows urban masts cost 18% more than operators say
www.mobiletoday.co.uk
The fight for the UK’s mast sites • Leaked: Cornerstone mast site negotiation documents • Revealed: Cost of mast sites from council freedom of information requests • Uncovered: Operators open up about their infrastructure battles Zak Garner-Purkis and Jack Courtez
M
obile operators have long complained of the cost of mast rents and access fees paid to private landowners, now they are relying on Parliament to change the law in their favour. If written into law, a new Electronic Communications Code (ECC) would grant operators the power to acquire mast sites, cap rents and secure access, with or without a landlord’s support. With such a significant change poised to occur, Mobile decided to investigate the validity of the operators’ argument, and whether the cost of building and maintaining the network is as difficult and expensive as the networks suggested.
‘Ransom rents’ Keen to improve rural coverage, but not necessarily to pay for it, the government has been convinced by networks of the need for new legislative powers. Explaining poor rural coverage, operators told the government they were being hindered by
obstructive landowners, who blocked the development of mast sites and asked for exorbitant fees for access. The operators said they frequently submitted to these demands because they had no choice other than to secure the site. At the Digital Economy Bill’s first reading, Conservative MP Andrew Percy explained very clearly the argument: ‘Before this debate, the operators told me that they can build a new site and put in new kit in about three months, but, because of the complexities of the [ECC] code, it takes a year to 18 months to complete that work. ‘With landowners in rural areas, it can be more complicated and difficult to get access. The average punter expects an outage in the network to be fixed within four hours. At the moment, it takes about 48 hours – and sometimes a lot longer – for the companies to negotiate access. ‘We need to end the practice of landowners being able to demand ransom rents because the lack of alternative sites locally means a lack of competition. That is a particular problem for rural rollout.’ October 2016
9
INVESTIGATES
and is working in partnership with many in the landlord community to ensure that the new Code will deliver practical benefits to all.’
Mast costs revealed
Aggressive negotiations ‘Ransom rents’ is a phrase that has dominated the debate from the start. All of the consultation documents use the phrase, which was also namechecked by MP Percy in his Commons address. The suggestion being that landowners lever the importance of their site to extract extortionate amounts of cash from the networks. However, ‘Negotiation Strategy’ documents from Cornerstone (CTIL) the Vodafone and O2 infrastructure business, which Mobile has acquired, show that in 2012, far from being held to ‘ransom’, the operators were aggressively challenging the rents they were paying and trying to mislead landowners into believing that the shared masts sites were ‘NOT shared’. The document calls for the re-negotiation of all sites on terms that were more favourable to the networks, with the aim of achieving ‘a minimum rent cost reduction of 30%’. The strategy shows that the negotiators offered ‘no guarantees’ to any landlord and planned to have ‘ALL agreements “Rent Challenged” regardless of any previous rent challenge activity (even where all other terms are “perfect”)’ as an ‘absolute instruction from both CTOs’. The ‘Negotiation Strategy’ reveals 10
October 2016
Far from being held to ‘ransom’ the operators were aggressively challenging the rents they were paying that in2012, Vodafone and O2 sought to persuade landowners that Cornerstone’s sharing agreement does not represent mast sharing. Despite the fact that, by the document’s own admission, one piece of radio equipment would be installed on site and both operators would pass their radio signal through it, it would not be described as sharing. ‘This is NOT considered to be sharing,’ the document says, ‘all agents negotiating revised terms need to ensure this is agreed and understood by site providers.’ The Cornerstone project has consistently referred to ‘network infrastructure sharing’ and ‘shared sites’ itself when describing its own progress. Publicly on its website, Cornerstone says that it is ‘committed to ensuring [that it] create[s] strong commercial partnerships that provide mutual benefit’ between itself and landowners. The statement strikes a distinctly different tone from the ‘Negotiation Strategy’, which asserts the desire to ‘create an
estate that the operators can use without Landlord hindrance’ because it was ‘the final chance to get the network “right” and we all need to deliver.’ In response to the document, a statement from Cornerstone told Mobile that networks needed flexibility to be effective to keep pace with market changes: ‘Operators have to be able to evolve in our rapidly changing mobile environment. In order to achieve this we have to ensure we can access Vodafone and O2’s mobile phone masts to develop, improve and maintain the services available to their customers and, where necessary, have the flexibility to move to another site that provides better and more reliable coverage, lower operational costs or where access is guaranteed. ‘CTIL relies on its contractual and statutory rights to operate the network and will seek to improve upon and enforce those rights where appropriate. However, CTIL also recognises the importance of building positive relationships
Mobile wanted to test the two key pillars of the network operator’s arguments in connection with the cost of mast sites and restrictions to access. There are few publicly available statistics on the cost of the network to the operators – the most regularly quoted and referred to is a Deloitte report commissioned by the Mobile Operators Association from 2015, the major conclusion of which was that £270m could be unlocked for investment in improving networks if the ECC was changed. Splitting the sites by urban and rural locations, the report found that on average, operators paid £7,500 a year in rent for sites in rural areas and £9,200 a year for urban areas. In terms of access agreements, there is little in the public domain other than quotes from senior network figures. With little else to guide us to the validity of these figures, Mobile undertook the task of gathering our own set of data with regard to mast costs. Using Freedom of Information Requests we were able to acquire information from more than 100 UK councils. The first significant evidence these requests revealed was that site access was always written into the agreement. We could not find one case where complete access to the site for maintenance and upgrades of equipment came with stipulated additional costs. The data compiled by Mobile relating to the sites showed that estimates on the average cost were 34% less for rural sites and 18% more for urban sites, compared to the Deloitte information. The data clearly suggests that any reduction in rents is likely to come from urban sites rather than rural locations. For Michael Watson, partner and head of property litigation at Shulmans this represents a real problem. He believes that the www.mobiletoday.co.uk
Mast rental
cutting of city centre rents will not result in better rural coverage: ‘Ed Vaizey and the chaps at the DCMS were hoodwinked, if he thinks that reducing London city centre rents from £30,000 to £200 will see that money go shooting into the rural areas, he’s wrong. ‘It’s extremely naïve to think that they’ll then pump this money into rural sites – why would they? They’ll put a mast somewhere where it makes a profit. I think that goes without saying. If they can make a profit from it, they’ll find land – someone will give them some land. ‘The thing that we never get to see is the site traffic data and the income figures for each site, because some of these things are gold mines. Actually, if you found out that the site was earning £1m a month in revenue, to say paying £30,000 a year in revenue is an exorbitant rent doesn’t stack up does it?’ Responding to both Mobile’s data and the assertion from Watson that the money saved from changes would not necessarily be invested in rural mast building, a Department for Culture, Media and Sport (DCMS) spokesperson said they were working alongside Ofcom on a ‘Code of Practice’ for the implementation of the code: ‘Reforming the Electronic Communications Code will help boost mobile coverage in the UK, in part by reducing the rollout costs of new infrastructure such as masts. Government and Ofcom are working with industry and landowners to make sure there is a strong Code of Practice in place that supports the deployment and maintenance of a modern digital communications network.’
Minority cause law change? Undoubtedly, there are cases where network development is held up by legal disagreements.The circumstances of each dispute vary and are always open to interpretation.The question is what is the scale and impact of such cases. A report carried out by Analysys
It’s extremely naïve to then think that they’ll pump this money into rural sites, why would they? They’ll put a mast somewhere where it makes a profit Mason on behalf of DCMS on the proposed changes to the code found that landlord termination of leases occurred on around 3% of the portfolio a year. The network operators estimated that approximately 20% of these were designed to force a change in the contract, with the cost of relocating to a new site typically between £80 000 to £100,000. Cornerstone told Mobile that this minority was significant enough to impact service: ‘Whilst the vast majority of our Landlords and their advisors work with us constructively there is a significant minority who hinder or obstruct access as a bargaining tool to drive up payments. This has a direct impact on the user experience Vodafone and O2 can provide to their customers and if not addressed, significantly increases the cost of running the network estate.’ Responding to Mobile’s investigation, a spokesperson for Three said that alterations to the ECC were needed to tackle this issue: ‘It is vital that operators are able to roll out new sites economically, as well as accessing sites in a timely matter to fix faults quickly. The new code will ensure that rents are based on a fair economic assessment of the land that they are located on and provide improved access for operators to fix faults when they arise. The new framework has been drawn up following consultation with landowners, government and the telecoms industry, and will result in a better experience for customers at the same time as respecting the
rights of landowners.’ An EE spokesperson added that there were third parties who were also acting on behalf of this minority, exploiting the value of the sites for financial reward: ‘The expansion of mobile networks in the UK is being hampered by some parties who gain financially by slowing down or not allowing important upgrade and maintenance work, effectively holding consumers and operators to ransom over vital access to mobile coverage.’
The utility argument The argument about whether mobile connectivity should be considered a utility is one that impacts the status of mobile operators in many ways. EE argues that, considering the role it plays in developing national infrastructure, it should be afforded the same rights as other utility companies, as a spokesperson for the operator explained: ‘All operators have extensive coverage obligations agreed with the government and Ofcom. However, mobile operators still pay up to 30 times more than water and electric companies for site rental and access. This makes it more difficult for operators to deploy and maintain coverage in ever more rural areas. ‘The costs of running any one of these sites varies enormously, and we are deploying new sites – a large proportion of which are in remote and rural areas – regardless of whether or not they are profitable on an individual basis.’
Network perspective: Cornerstone’s example Responding to Mobile’s request for an example case where progress had been delayed due to a troublesome landlord, Cornerstone provided the following example: ‘The owner of a large tower that had equipment in place, providing coverage and transmission links to other sites, demanded rent of circa 300% of the commercial market rental value for other local sites, together with significant access fees for maintenance and fault resolution. ‘During the course of negotiations the owner refused access to the tower, and at times to the cabin; as a result we were unable to maintain equipment or remedy faults. The impact of this denial of access was erratic and at times complete loss of coverage in the immediate area and other linked cells. ‘Negotiations continued over three years, however, we were unable to reach commercially acceptable terms. After further reduction in the service available for the local community, a temporary site was deployed to ensure our customers could use their phones and devices while a replacement is progressed.’
www.mobiletoday.co.uk October 2016
11
Explores
A vision of what the connected kitchen might look like
The battle to own the connected home A range of businesses from different sectors are fighting it out to be king of the connected home Jack Courtez and Zak Garner-Purkis
T
he rewards of being the major connectivity provider to the internet-enabled home environment are undoubtedly substantial. It is a space that a number of different industries are seeking to control, with retailers, manufacturers, network operators and utility providers targeting the space most keenly. 2016 has seen a number of launches from brands attempting to capture the market. In April, John Lewis revealed a smart home
12
October 2016
showroom and launched an installation service. September saw the launch of the O2 Home proposition. These new services will challenge the British Gas established Hive products and Samsung’s Smart Things range. That said, this category is still at a formative stage; much of the discussion at this year’s SmartSummit conference – an event attended by those with a vested interest in the market – concerned the best ways to bring the concept
to the mainstream. ‘There are two different customers segments,’ says Katrina Mills, Audio and Connected Home buyer at John Lewis. ‘There’s one section that consider themselves experts and then there is this whole mass of everybody else. This group perhaps care about technology, might like the idea of the smart home, but they don’t really understand it.’ Who takes this technology to the mass market and how they do it remain the two fundamental questions within the smart home debate.
Friends or foes – utilities and operators The two most likely candidates to become the smart home provider have long been utilities providers and the mobile networks. British Gas has made the biggest strides in this space; the first Hive Active heating thermostat shipped 200,000 units – far more than any other connected home product. ‘We look at mobile phone companies for inspiration as
they’ve been so successful at selling devices and subscriptions,’ says Roberto Hortal – Head of Connected Home at EDF Energy. ‘It seems at the moment that the connected home and consumer IoT markets may be going that way, especially with O2’s new proposition. ‘I think where utilities found an opportunity is that your utilities bill is typically the second highest payment a person pays other than a mortgage or rent, so we can give the connected home value to the customer through continuous bill reduction. ‘This allows a very easy conversation to be had around something customers care very much about – their money. Once the devices are in their home we can then begin to have conversations about comfort, about luxury and all the other parts of the connected home eco-system.’
The role of the retailer Retailers are another group vying for control of the connected home. It is also viewed as the www.mobiletoday.co.uk
Connected home
crucial environment for explaining the connected home concept. The way in which they interact with manufacturers and service providers will be key in defining how the concept is presented to the consumer. For Allen Alexander, director of strategy and business development at Maplin, operators and utilities providers could provide a business model that could see them take control of the market at the expense of the retailer: ‘I think the telcos, much like utility companies and cable companies, have got an interesting potential play here. What we see, and what the research shows, is that collectively customers don’t buy because they don’t see the need, or they think it’s expensive or they don’t get the security or it’s too complicated. ‘But with a subscription model – and I know O2 has already stepped in with this – you effectively overcome at least one of those barriers because this isn’t “come in and spend £600 at Maplins or John Lewis” it’s “add £20 to your bill, and you’ll get all this stuff, and we’ll come and put it in”. ‘In terms of how the market’s going to evolve, that could be one way in which it goes – it’s not particularly beneficial to us, but it is beneficial to those that already have a relationship with the customer in their home. We watch O2 with interest and others that might step in with that play. ‘So in some respects they have the same hurdles to get over that retailers do in terms of the security of devices and so on. But in others, if you package that up with subscription model and finance – if you include installation – it puts you in an advantageous position.’ For John Lewis, the service aspect of the connected home poses a slight conundrum, it changes the role of the business, says Katrina Mills: ‘From a retailer’s perspective, service is a very challenging element of the smart home proposition,
People might like the idea of the smart home, but they don’t really understand it because let’s be frank: most retailers do not offer service. That’s not in our remit, that’s not what we do – we see it in manufacturers and with providers. ‘At John Lewis we pride ourselves on selling the best of the best, so if we were to say to consumers you can buy this service, we need to be absolutely confident that the service is beyond amazing. Should the retailer start entering this arena and actually provide that service as their own proposition? I think that’s something a lot of retailers will be thinking about.’
Real-life scenarios It’s widely agreed that the concept of the connected home still needs to be communicated in a more understandable way. Like many new technologies, it’s real-life examples that can make the difference in a sale. Gary Lewis, director and owner of smart home installation supplier Cornflake, believes this comes down to how staff are trained: ‘Although the staff on the floor need to have very good technical training and know the ins and outs of a product, when the customers actually come to buy smart home technology or think that they might want it, quite a lot of them don’t care whether it’s a four mega-pixel and or an eight, or what it connects with. What they actually care about are situations and
how it can help them. ‘A lot of the technical guys and girls in stores don’t have families and children. The people that come in to store might want to know when their daughter comes home from school and turns the alarm off by getting a notification on their phone. It’s a lot more to do with putting together real-life situations and showing how we can make their lives better from that, not the technical knowhow on the products.’ This sentiment is echoed by Katrina Mills of John Lewis: ‘We spend a lot of time with our suppliers and make sure that all our suppliers come and conduct some training in store. We are very clear; we say to them: “we don’t want you to come and tell us all about the technical spec. Please come to us and give our selling partners the tools so they can talk to their customers about how they can bring these products to life. Tell them how they can explain to a mother coming home at five in the evening how the light will come on so they don’t walk into a dark house. Those are the kind of things a consumer will relate to and those are the kind of things that gives a product real weight. It’s the kind of thing that we work on with all of our staff in retail but also in our call centres.’ Jutta Peinze, the marketing director at smart home specialist manufacturer Sengled, believes
Operators and utilities providers provide a business model that could see them take control of the market
The ‘smart home’ brand is hard to sell ‘I’ve been selling smart home technology for nearly 20 years. The biggest problem and hurdle we had as a company was selling the ‘smart home’ brand, the name.’ says Gary Lewis, director and owner of smart home installation firm Cornflake. Lewis hits upon a critical aspect of the category; how consumers understand it. He explains that in his experience the problem with the smart home branding was that it sounded unnecessary: ‘Other than the early adopters, and there are plenty of those, they’ll look it up online and buy it. The mass market don’t actually want smart home technology. As soon as you say ‘smart home’ they think it’s an unnecessary gadget or gizmo; they think it’s something that will break down and they’re quite happy with the things that they have in their home. ‘It’s all about education. A lot of the customers I deal with have large homes, but they don’t necessarily want smart home technology. They understand that they need to turn off all their lights from one central point or turn off the music, and actually when you show them how these systems work together, they see that it’s not a “smart home“ it’s an “integrated home”: a home that works for you.’
www.mobiletoday.co.uk Octo ber 2016
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Connected home
John Lewis’ connected home display in Oxford Street
that because smart home products have smaller margins, training needs to be carried out collaboratively: ‘I really believe that this training area needs a really strong co-operation from the retailer. If manufacturers pressure down on the price we will not have enough money to buy proper training. We don’t have a big margin, and if you look at consumer electronics it’s only moving further in that direction. It’s not a product with margins of 100% or 200%. ‘At this phase of the smart home category you need to be co-operating here. It’s about saying “maybe the money is not as high, but then on top I calculate you are training people”.’
Bricks-and-mortar benefits Discussions about customer journey and an omni-channel approach are constant within the retail community. However, when it comes to explaining the connected home concept, the consensus is that retail has a very important role to play, as Alexander Allen of Maplin explained: ‘It should all be an omni-channel seamless experience; the customer journey should work across web, phone, IM and instore. ‘The instore piece is where 14
October 2016
It’s a lot more to do with putting together real-life situations and showing how we can make their lives better retailers have an advantage over online if we get the customer service process right. Customers still need to overcome that barrier of “what’s this device and how does it work”. Actually, if you go online there’s just so much out there. ‘If you meet a store colleague
Is connectivity a utility? As connectivity becomes totally ubiquitous, the question as to whether or not it can be classed in the same category as water, gas and electricity has become more pressing. So far, the most successful connected home products have merged connectivity with a utility requirement such as electricity. But what is the impact of this integration between utilities and internet service providers. Mobile asked Roberto Hortal,
who knows what they’re talking about and talks about the problems they can solve for you and can engage with you, that is quite powerful. That’s something we’ve really invested in with the smart home and with smart devices – working with
Head of Connected Home at EDF Energy, whether he considered connectivity a utility: ‘I think it’s interesting, they may say they are a tech company rather than a utility because of the high street presence but when you walk past the shopfronts all you learn is that you can get this phone at this price, so I would challenge whether they are actually seen as tech companies by customers, particularly the operators. ‘I think the connected home will help a lot of industries, mobile included, to have a more frequent
manufacturers to ensure they have that product knowledge. It’s a very particular type of product knowledge and it’s a bit less talking about components in detailed spec, it’s more about why they’re purchasing the product.’ John Lewis has certainly invested in the instore experience. It’s dedicating 1,000 sq ft of its flagship Oxford Street store to the technology. But as Mills explains, this is only one part of the retailer’s strategy: ‘We are very much an omni-channel retailer, we’re doing a lot of work across the different platforms and the customer journey. The omni-channel experience is important because it needs to be a seamless interaction whether you are online or in a bricks-andmortar establishment.’ What Mills and John Lewis are striving to achieve is the one thing that will eventually see this category hit the mainstream. A moment when consumers suddenly realise its benefits: ‘When I presented the smart home strategy, I had to come up with something that would summarise what we were trying to achieve, and what we came up with was: To create an environment where customers would have an epiphany moment, seeing how they could use smart home products in their life. This is what has informed all of our strategy.’
relationship with their customers. But with energy or telcos, just because we supply the juice to power their sockets or to power their internet, I don’t think it puts us in a front position to claim that constant relationship with a customer, it won’t be limited to a couple of industries. ‘The connected home gives us an opportunity but we need to be able to turn it into a relevant proposition for the customer, and as the space becomes more crowded it’s going to get harder and harder.’
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Phones 4u update
Where are they now... David Kassler Former CEO CEO at the time of the retailer’s collapse, David Kassler had joined the business from the music industry where he was chief executive of the Parlophone Label. Since Phones 4u’s demise he has been CEO of Deluxe Entertainment Services Group and is currently an investor and director at an app business called DeviceMesh.
Analysis: Phones 4u collapse… What’s happened since? Two years on since one of the biggest collapses in the industry,
Mobile looks at what the impact has been Zak Garner-Purkis
Legal threat looms During the administration process carried out by PricewaterhouseCoopers (PwC), the possibility of taking legal action against the networks was raised on a number of occasions by several Phones 4u creditors. That threat is still a possibility, as PwC revealed in August that it had written to all potential defendants in a legal action regarding Phones 4u’s demise; although the administrator added rather cryptically that ‘due to the potentially commercially sensitive nature of these investigations we do not think it would be appropriate to disclose any further information’.
Questions go unanswered In the wake of Phones 4u’s implosion there was some frantic finger pointing from all sides of the industry. Former CEO John Caudwell took to the media to blame the mobile networks, who were equally resolute in their denial of any wrongdoing. Meanwhile, others questioned the www.mobiletoday.co.uk
actions of private equity owner BC Partners. which had been in charge as the retailer collapsed. The problem is, very few answers have been provided about what actually happened. In such circumstances, rumour and hearsay dominate, carrying more weight than might otherwise be the case.
Staff challenge wilts There was rather a delay in the staff response to the collapse of Phones 4u. Initially they rallied around their employers, hopeful that a buyer could be found for the business that was still in profit. However, as hope ebbed away, anger began to develop among the retailer’s former employees. A number of them formed a group on Facebook and sought to mount a legal challenge relating to unpaid bonuses and the way in which the news was broken. Unfortunately for those involved, the legal challenge has not achieved what it set out to do.
Carphone stronger than ever How different could things have been? At one stage it was Carphone Warehouse that looked
Matt Child Former director of trading Landing the most high-profile industry role of any of the former Phones 4u executives, Matt Child has been the MD at distributor Tech Data Mobile for over a year now. In between times he also held a senior role at his beloved Leeds United Football Club. John Whittle Former CCO Another Phones 4u bigwig who has re-entered the industry, John Whittle has been looking to lock horns with old rival Carphone Warehouse once again, heading up new online retailer Unshackled.com.
vulnerable. But its merger with Dixons strengthened the partnerships that the brand had with other mobile operators. Since the merger, the commercial performance has continued on an upward trajectory, improving both year-on-year and quarter by quarter. The retailer has not only acquired the market share vacated by its rival, it has increased it.
Distributors bounce back It’s been a tough couple of years for distributors since Phones 4u collapsed, with one less customer on the market to do business with. Since then, all the major players have managed to keep their heads above water, looking more and more towards services rather than product offerings. Tech Data Mobile is one business that has managed to recover, after being left with the majority of the retailer’s stock back in 2014. This year it celebrated a double win at the Mobile Industry Awards for Best Retail Distributor and Best B2B Distributor. October 2016
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Power 50 presents
Power 50 presents
Matt Hancock Digital Economy Minister
“This government role requires more innovation than any other in the industry” Leadership
Breakthrough
His predecessor Ed Vaizey was heavily criticised for being too close to the mobile networks and giving BT far too much leeway. Over his time as an MP, Hancock has been passionate about the rights of small businesses. Whether he brings this approach to dealing with the telecoms giants will be central to his impact on the mobile market. He should perhaps take heed of the actions of Ofcom’s Sharon White, who has quickly established a strong reputation with a number of outspoken comments on mobile networks.
The next year will be an absolutely critical period for Britain’s infrastructure. Ofcom is set to make significant decisions about the structure of BT and sale of mobile spectrum. The DCMS has taken a more withdrawn role in previous years when substantial change has occured. Ed Vaizey was also noticeably limp in deferring to Ofcom in relation to the Three/O2 and EE/BT deals. More courage is needed from a government to bolster Ofcom decisions, particularly when the threat of legal challenges from the big companies threatens their validity.
Innovation
Headline maker
It’s arguable that this government role requires more innovation than any other in the industry. The minister in this position needs to manage Britain’s infrastructure needs against the influence of the networks and the demands of the general public. Finding a path in which all are appeased if not completely satisfied requires an incredible amount of ingenuity. That is not a quality typically associated with British politicians, and only time will tell whether Hancock breaks the mould.
Unfortunately, Hancock’s predecessor Ed Vaizey was often in the headlines for the wrong reasons. He was either an anonymous figure or making news by upsetting someone in the mobile industry. Hancock’s task will be to attract media attention for the right reasons. Sharon White at Ofcom once again provides a good example. She has repeatedly made clear statements to the market that have gained media interest and got her point across with clarity.
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Financial Muscle The financial impetus from a governmental perspective is ensuring that as much value is extracted from the spectrum auction as possible, while also ensuring that the networks make good on their commitment to build out UK infrastructure. When it comes to finances and the government, it’s more about demonstrating efficiency and value than splashing the cash.
Ones to watch Ben Dowd Sales director, O2 The long-serving business director became sales director as Mark Evans stepped up to become O2 CEO. Margrethe Vestager, Commissioner for competition, EU Vestager launched a stinging attack on Apple in the summer over the business’ tax practices in Ireland.
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Sectionhead
www.mobiletoday.co.uk October 2016
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Interview
We did the iPhone deal in 9 days! Ronan Dunne’s reflections Long-serving O2 CEO Ronan Dunne lifts the lid on his time at the top of the mobile market Zak Garner-Purkis
R
onan Dunne’s time at O2 has taken him from the launch of the first iPhone to the 19-hour network outage. As he exits the UK market for a top job at US network operator Verizon, he gives some insight into his time leading one of the market’s most iconic brands. …My first day at O2 ended in hospital ‘My first day was back in 2001 and we were doing the same sort of stuff that we have been in my past week – preparing for an IPO. I have been in the organisation for exactly 15 years, so in some respects it’s déjà vu. The first day
in the office was actually in a hotel in Canary Wharf where we were doing an analysts presentation. ‘Halfway through the presentation I noticed my arm was getting really sore and I was getting really hot. I’d got an infection right in the fluid of the joint of my elbow. After going to an NHS drop-in centre, I ended up in hospital for five days with an intravenous drip. So I actually ended my first day at O2 in the NHS in Chertsey.’ …We did the iPhone deal in nine days ‘I’d love to say that because it was Apple everyone knew they’d sell a billion iPhones. The truth is we didn’t, we all thought it would be iconic. ‘Apple was negotiating for a long,
‘I don’t think I’m being unfair on EE if I say the iconic mobile brands in the UK have been O2 and Orange’ O2’s sponsorship of the Millenium Dome was an iconic symbol during Dunne’s tenure
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long time with another operator, that may be red and may be based in Newbury. But they weren’t making the progress they wanted. We got a call over the weekend and Steve Jobs office reached out to [Telefonica chairman] Cesar Alierta, saying: “do your UK guys want to come and see me to talk about the iPhone?” ‘Matthew Key [O2’s UK CEO at the time] raced out to Cupertino. When he saw the phone he was absolutely convinced it would be a success. It was a step change from everything we’d seen from anyone else. ‘Apple sent a few people over to Slough a day or two later. We worked for seven days – basically day and night – and famously shook hands over sandwiches we’d run out to get in the Slough M&S. It took us around nine days to do the deal, when they’d been talking to the other people for nine months.’ …On iPhone launch day I bought coffees for customers in the queue ‘The thing that appealed to Apple was not the financial package, because as anyone who deals with Apple knows, you do things on Apple’s terms. The thing that made the difference was that we brought them to the O2, which wasn’t open, and showed them what we could do. We also mocked up instore what the retail experience would look like for us selling the iPhone. They realised that we thought about this in the same way that Apple did. ‘Steve Jobs came to London for the launch. He and Matthew [Key]
sat on stools, a bit like Val Doonican or Westlife, and did a set in the Oxford Street store. It was definitely rock star stuff. I just put on a t-shirt and bought coffees for people who were standing outside the store in Wimbledon.’ …Since EE formed O2 has got stronger ‘The merger of T-Mobile and Orange to form EE was a big factor in the market at the time. But interestingly, history records that that was completed on 1 December 2010, and in the period from then to now, EE has actually lost five million customers and we’ve gained three million. So although it was a big event in the market, we weren’t affected because we had strong differentiation in the brand. ‘In some respects it diluted the Orange brand, which had been very strong in the market before that. And I don’t think I’m being unfair on EE if I say the iconic mobile brands in the UK have been O2 and Orange.’ …Despite the looming merger, 2015 was one of my proudest years ‘From the time that I started my strategic review in the summer of 2014 all the way through to now, although everyone in the business didn’t know from the start, there was a long period of potential disruption from our core purpose of getting out there and serving customers. ‘2015 was one of my most satisfying years in the business because we performed so well. We won brand of the year, most respected telco, we increased
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Ronan Dunne employee satisfaction, customer market share and profitability. Although it was a hugely challenging period, the relentless focus we had on customers and brand was actually the right thing both for employees and for the customers. ‘Our colleagues had three questions they wanted the answer to: “Will I have a job?” “Who will I be working for?” and “What will be the name above the door?” We weren’t able to answer any of the questions while the process was going through, because other than me no one knew definitively who would be part of the combined business if the transaction was approved. ‘What we did was say if we make O2 impossible to ignore you’ll have a chance to shine. So if you have an interview with the CK Hutchison folk or you have an interview with a headhunter, the best context for the interview was to say “Yeah, I’m from that winning O2 team”. It ended up being the best campaign we’ve ever run.’ …My darkest day was the network outage ‘I don’t regret anything, but my worst day, our darkest day, was when the network was down for 7.9 million customers for 19 hours. It proved that everything that we’d invested in customers paid off, because actually our customers came to the rescue on that day. They championed the fact that people on O2 didn’t have that experience and that’s why they were loyal to us. ‘On that very darkest day, when every 15 minutes I was being phoned by the press asking “has he resigned yet?” – that was a seminal moment because our customers said when you’re a fan you’re willing to forget. That was really, really important because we had a thing at the time about fan love, and making one million more fans was one of the parts of our programme. ‘It was undoubtedly the most difficult day I’ve ever had in my life. When we look back on it, it was evidence that the strategy of putting our customers first was working.’ …doing right and doing good, two sides of the same coin ‘Five years ago I committed to
Dunne and his successor, Mark Evans at the former’s Slough HQ leaving party honestly hand on heart that about who they work for. I think we’ve created a genuinely differentiated company, not just in telco, but I think this is one of the finest companies in the UK.’
Matthew Key and Steve Jobs at the UK iPhone launch
‘Steve Jobs came to London for the launch. He and Matthew [Key] did a set in the Oxford Street store. It was definitely rock star stuff. I just put on a t-shirt and bought coffees for people who were stood outside the store in Wimbledon’ deliver 20% of my time to youth employment and youth engagement. It proves to me the thing that I’ve always believed in, that doing well and doing good are two sides of the same coin. If you set up a business with the right values and the right purpose
then you can be financially successful and be proud to be part of the organisation. ‘When our people are at a dinner party or at the bar in a pub and are asked who they work for, they are proud to say they work for O2. It’s not every person that can say
…Why natural coach Mark Evans will succeed ‘We’ve created a strong team with real values and purpose. Taking on my role, Mark [Evans] will be great at leading with the O2 culture we’ve created and the O2 team that’s so valuable, because he’s a real natural coach. He steps out of his door everyday aiming to be a winner, but he’s also someone who is forensic about what he does. He tries to put in place the conditions to be successful, and I’m absolutely sure he will be.’ … Invisible infrastructure needs recognition ‘The biggest value-add product that’s being shipped around the UK everyday is data. It’s the invisible infrastructure as well as the visible infrastructure that need to be brought together in a far more holistic way. That means things such as investment in the future for mobility because any digital strategy needs to be mobile led. ‘It’s not that you shouldn’t be putting fibre in the ground. But fibre is only one part of the equation. Interestingly, fibre gets a government and taxpayers subsidy and wireless doesn’t. It’s an interesting conundrum, reflective of the fact that’s kind of old legacy telecoms rather than current relevant telecoms policy.’
www.mobiletoday.co.uk October 2016
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Tech Guide
Headphones: Headphones have become an industry focus once again following Apple’s decision to remove the universal jack from its latest flagship. But has the market been failing to recognise the potential that these products hold?
48.28%
72.41%
15%
5.56%
Of consumers own headphones
Of the UK’s total headphones sold through Dixons airport Travel outlets (26 stores)
Own earphones
Bought headphones as part of their phone purchase
10.57% Are looking to buy headphones in the next 12 months
Source: Mobile Choice survey 2016
Benefits of selling headphones
Hottest wireless headphones Sennheiser PXC 550 Wireless headphones Price: £329.99 Lightweight and comfortable, Sennheiser’s PXC 550 headphones offer phenomenal and well-balanced clarity and range of sound, supported by excellent noise cancellation. The CapTune companion app offers a great way for users to customise sounds and a range of other settings, apart from bringing an in-built music player. However, the pricing could be a concern given that Sennheiser offers many other good headphones at a lower price.
Essential item
Every mobile phone needs a set of headphones – you don’t need to convince a customer why they should buy them, the benefits are obvious. High-end demand
You only have to look at the appetite there is from consumers for high-end headphones such as Beats to see that people are willing to part with significant cash when it comes to these products.
AKG Y50BT wireless headphones Price: £125 For their price, AKG Y50BT headphones offer unbeatable sound quality along with decent looks. While playing music genres such as hip hop, rock and metal, the headphones show off their trueform. Being lightweight, the headphones are ideal for on-the-go users but, because of the blue paint, which wears off, and the cheap audio cable, they may not be as durable as users would like them to be. Source:
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Bundle it in
Headphones have been successfully bundled by the likes of Sony in the past. It’s an easy way to add another high-value item to a transaction. Practical benefits
Whether you’re taking a business call on the train or want to block out your noisy flatmates’ music, the benefits of buying good-quality headphones are clear and easy to explain.
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MIA 2015 FP
Untitled
Sectionhead
Join one of the fastest growing technology communites and gain free access to premium content
Connecting Influencers with Decision makers Decision makers increasingly need to communicate rapidly and reliably, wherever they are, with immediate access to whatever back up information they need. That places wireless communications at the heart of business and public service delivery. Wireless addresses the emerging need for end users to stay up to date with the latest developments.
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WIRELESS-MAG.COM
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Sales tips
remotely. Because it’s stored on the internet, access whenever and wherever is one of the main benefits of the technology.
8.
10 ways to sell with cloud
9.
Tips for dealers and retail staff on how to explain an essential service
1.
2.
Clear savings
Stop hacks Buying additional security software for your business or personal device can be a complicated and expensive process. With so many options on the market it’s difficult to know which is the best way to protect your sensitive information. Cloud services put that information in the hands of technology businesses working with only that goal in mind.
Waterproof,
3. smashproof ‘The safety of having a remote backup for all their photos, coupled with insurance, means that no matter what a customer does to their phone, whether they, lose, splash or smash it, they can get a replacement handset and still keep all the important memories they’ve collected.’ Parham Rad, Fonehouse store manager, Woking
4. Multi-platform ‘The ease of use given to customers 22
through the ability to share files between their devices remotely is something both business and personal users will appreciate, whether it’s using your phone and TV to display your holiday snaps or sharing business documents from a laptop to tablet.’ Alex Clarke, Apple reseller store, Woking
‘ By reducing the amount of internal storage a customer needs in this way, we can look at cheaper variations of handsets, which allows us to give the customer the phone they want with a great tariff, all within their budget.’ Carl Murray, Three store manager, Woking
21 October 2016
5.
6.
7.
10.
Faster devices ‘Many issues customers may come across in handsets with low internal storage, such as running out of memory or the phone becoming sluggish or unresponsive, can be resolved.’ Carl Murray, Three store manager, Woking
Remote control The Cloud offers the ability to check what stage a project is at if you are a business, or whether your child is accessing suitable content if you are a parent. By keeping your family’s valued memories in one place or business, you maintain greater control over them.
Compete with kings As an amateur filmmaker or musician, the Cloud gives the opportunity to keep a huge archive of material previously only available to those at the top of the industry. For a business it offers the ability to compete with businesses with far bigger IT teams and server stacks.
Share with others Sharing content with friends or colleagues is an aspect of modern life that most people take for granted. When you need to share information a little more securely, cloud services provide the perfect platform to continue sharing content at the same rate but with a bit more security. The internet connection means that this occurs in real time.
Futureproof How many pictures videos and messages are left on old devices and lie forgotten on devices that have since been replaced? How much information has been lost by businesses when it has updated its fleet of phones? Using the Cloud effectively ensures content isn’t lost when new devices are bought..
Access anywhere One of the clearest and most obvious benefits to cloud computing is the ability to access whatever you need
Jargon buster ‘Digital Native’ A digital native is a person born or brought up during the age of digital technology and who is familiar with technology from an early age. A term often used by Huawei, particularly around its campaign with Brooklyn Beckham, its chosen figurehead for its Digital Native generation. ‘Mobile edge computing’ A way of getting the mobile networks to perform better by performing tasks closer to the customer. Rather than having big network centres working away to connect calls and enable users to watch videos, small units out in the field share some of the burden. ‘Small cell’ Mini mast units that can be installed in buildings or coverage black spots, these devices take signal from bigger mast towers and distribute it to other locations. As the name suggests, it’s a mini cell tower.
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Mobile Global
October around the world Africa Nigeria – ZTE highlights Nigeria’s key role in mobile Chinese technology powerhouse ZTE has described Nigeria as a key global market for the brand. While visiting the country to announce an expanded range of devices available in the market, ZTE vice president Shen Hui stated: ‘Nigeria has always been the leading information window for West Africa. Therefore, we believe Nigeria is a great choice for ZTE’s brand exposure.’ Egypt – 4G rollout Egypt is a step nearer reaching 4G as all three networks – Orange, Vodafone Egypt and Etisalat Misr – signed licence agreements in October for the spectrum and government approval required to launch the networks. All three mobile networks in the country had initially refused the offer of 4G licences due to the amount of spectrum offered being too small to support a national 4G rollout. State-owned fixed line entity Telecom Egypt agreed to the initial offer as a method of entering the operator space.
Asia Pakistan – OTT threatens operators Tests in Pakistan carried out by fraud specialists Revactor reveal that up to 45% of calls in the country classify as being OTT bypass – where a regular number is dialled but the call is received by an OTT app. This leaves operators paying the termination charge and taxes while receiving none of the associated revenues.
Hong Kong – Qualcomm announces new chipsets Qualcomm used its 4G/5G summit in Hong Kong to announce three Snapdragon processors – Snapdragon 653, Snapdragon 626 and Snapdragon 427. Designed for ‘high performance and high volume’ devices, charging time reduction remains a key focus with all three featuring their Quick Charge 3.0 technology.
Oceana Australia – Lycamobile rolls out 4G UK-based global MVNO Lycamobile announced the launch of its 4G data services across Australia, using Australian operator Telstra’s network. Lycamobile has a long history with the network, having initially launched in Australia using its 2G network. The 4G rollout gives Lycamobile 95% population coverage across Australia. Australia & New Zealand broadband A BT-commissioned Analysys Mason report comparing the UK’s broadband services with Australia & New Zealand’s has been released. The paper finds that despite the Oceanic nations spending more per capita, the UK is still outperforming them in the broadband space. However, low overall population densities in New Zealand and Australia may help to explain the disparity.
Europe Russia – Yandex launches space saver UI Russian internet service and tech specialist
Yandex is looking to expand into more markets through its Yandex Launcher, a space-saving white-labelled UI that replaces pay-for-space apps with app suggestions that generate revenue for the manufacturer. Manufacturers signed up to use the software include Wiley Fox, ZTE and Posh Mobile. Belgium – Transatel chosen as JIM Mobile enabler Belgian media group MEDIALAAN has hired Transatel to enable JIM Mobile and Mobile Viking to reach full MVNO status. When Liberty Global acquired Base – Belgium’s third largest network – the European Commission allowed the acquisition as long as MEDIALAAN was able to compete independently as a full MVNO.
North America USA – VR Survey reveals low awareness Manufacturers such as HTC, Samsung and Playstation see the US as a key market for VR, but 58% of Americans who have heard of VR are unable to explain what it is according to a survey by reportlinker. The data also supported Occulus founder, Palmer Lucky’s suggestion that the price of headsets would need to drop drastically to achieve mass adoption.
South America Mexico – Bienvenido Freedom Pop US-based international MVNO Freedom Pop is to launch in Mexico following the announcement of a joint venture with Dish Mexico – a satellite pay TV company. Freedom Pop specialises in giving free minutes, data and texts and then upselling beyond the initial free allowance. The provider told El Economista it aims to reach one million customers in Mexico as part of its ‘early years’ plan. The MVNO launched in the UK in September last year.
www.mobiletoday.co.uk October 2016
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David poses with the store’s growing trophy collection
Diane Cartwright protested about signal issues by chaining herself to the shop
Shop staff get mixed signals
David Rafferty does the treble! CARPHONE WAREHOUSE Glasgow Fort store manager and iSellMobile member David Rafferty has picked up his third award in 12 months, having been awarded Store Manager of the Year at the Retail Week Rising Stars awards. This complements the other titles in the store’s cabinet – iSellMobile’s Team of the Year Award (2015) and the
Dixons Carphone Chairman’s Shield (2015). Commenting on his newest win, David said: ‘Last night was one of the proudest moments in my career. Thank you everyone who believed in me!’ Carphone Warehouse’s head of retail performance, Kevin Snowball, explained to David why he just keeps winning: ‘Your tenacity to
create an environment where every customer wants to buy, and to lead your team on a journey is what separates you from the rest of the retail managers across every sector within the UK.’ With David’s team also nominated in this year’s iSellMobile Awards, they might need a larger trophy cabinet!
RETAIL STAFF are divided on the impacts of poor coverage. Nearly 30% of iSellMobile members surveyed said it had no effect, while another 30% said it would have a severe impact. Some thought WiFi calling negated poor coverage. However, Daniel Johnson from Tesco Mobile Peterborough argued: ‘If the customer has not got WiFi, they may rely on a good data connection (3G/4G) to be contactable at home.’
WIN your team a coffee break! Mastermind prizes
iSELLMOBILE knows that some days you just need a boost of caffeine to stay on your toes! We’ve got five £10 Starbucks vouchers to give away so you can keep yourself and a few colleagues in the game on those days when you really need it. TO ENTER: pick out a member of your team and drop us a message telling us why your colleague deserves a coffee break! email editorial@isellmobile.co.uk with the subject “coffee break” to enter.
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CONGRATULATIONS to Craig Nisbet and Damian Mcgreevy who will each receive two iSellMobile Awards tickets, a £30 Amazon voucher, a £10 Starbucks voucher and £20 worth of tech, culture and gaming magazines! Although the entry stage is over, the weekly prizes continue at www.isellmobile.co.uk/mastermind
WIN! www.mobiletoday.co.uk
After hundreds of entries and thousands of votes, we can now announce the shortlist for the iSellMobile Awards 2016!
What are the iSellMobile Awards? The only mobile industry awards for retail staff, decided by retail staff, the iSellMobile Awards celebrates the very best that stores and contact centres have to offer! This year’s awards take place on 17 November at the world-famous Ministry of Sound club in London, where all the winners will be revealed.
iSellmobile Awards Shortlists announced People categories New: Bright Idea Award For individual innovation in the workplace that benefits themselves, their team and their customers. Shortlist Chantelle Mcsharry, Carphone Warehouse Glasgow Braehead Grant Hutchby, Three Swansea Lauren Slaven, O2 Birkenhead Rahul Patel, Vodafone Wellingborough Stuart Bonner, Carphone Warehouse Glasgow Braehead Area Manager of the Year Shortlist Gail Newton, Vodafone Galashiels Gary Linton-Walls, Carphone Warehouse Milton Keynes Keith Meredith, Tesco Mobile York Paul Burns, Vodafone Hartlepool Seth Jackson, Three Cambridge Big Boss Award Shortlist Bridget Lea, O2 Emma long, Carphone Warehouse Jon Shaw, Vodafone Michael Carslake, Carphone Warehouse Paula Cave, Three Sian Doyle, EE Steve Mcgeough, Tesco Mobile
Store Manager of the Year Shortlist Bianca Davies, Vodafone Swansea Chris Brown, EE Basingstoke David Rafferty, Carphone Warehouse Glasgow Ed Salvador, Three London Neil James, Vodafone Manchester Sam Marbrow, Tesco Mobile Romford Sandeep Rattan, O2 Reading Wesley Fletcher, Carphone Warehouse Rochester Trainer of the Year Shortlist Charlotte Maxwell, Sony Chris Michael, Samsung Dom O’brien, Sony Ranjit Birk, Samsung Victor Dhuphar, Samsung Team of the Year Shortlist Carphone Warehouse, Maidstone 1695 EE, Basingstoke Three, London Oxford Street East Tesco Mobile, York Extra 3480 Vodafone, SOS – Store Operations Support Newbury
Product Categories Manufacturer of the Year Shortlist Alcatel Apple HTC Huawei LG Samsung Sony Best Flagship Launch in Retail Shortlist Apple iPhone 7 HTC 10 Huawei P9 LG G5 Samsung Galaxy S7 edge Sony Xperia XZ Best Manufacturer Training Portal Shortlist Huawei – Huawei n:gaged LG – LG Lounge Samsung – Samsung Backstage Sony – Xperia Zone Best Network Exclusive Shortlist EE, EE Harrier Mini O2, BQ Aquaris X5
Find out more about every category and contestant at www.isellmobile.co.uk/awards
Tesco Mobile, Alcatel Pixi 4.6” Three, Honor 8 Virgin, IMO S Vodafone, Vodafone Smart Platinum 7 Budget Phone of the Year Shortlist Alcatel Pop4, Honor 5X HTC Desire 530, LG K8 Lumia 550, Moto G4 Samsung Galaxy J3 Sony Xperia XA Vodafone Smart Ultra 7 New: Best retailer to work for Shortlist Carphone Warehouse, EE Fonehouse, John Lewis, O2 Tesco, Three, Vodafone Phone of the Year Shortlist HTC 10, Huawei P9 apple iPhone SE, LG G5 Microsoft 950 Samsung Galaxy S7 edge Sony Xperia X
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Advising visually impaired customers Mark Skelton feared he would lose his job with O2 franchise Talk Direct when he began to lose his eyesight. Instead, they launched Project iCare to advise O2 staff, customers and charities in mobile phone use for those with a visual impairment. See below for Mark’s advice Best phones & apps
Mark Skelton (right) receiving a demo from an O2 Guru
I’d suggest Android or iOS operating systems as both feature voice over functions and a large variety of vision-impaired aiding apps. TapTapSee (iOS & Android) – users can take photos of items, the app processes the image and tells the user what they have taken a photo of. Colour ID (iOS & Android) – focus the phone camera on an object and the app will tell you the colours present.
Understanding visual impairment There are two million visually impaired people in the UK and unlike those you see in a lot of TV shows and films, many of us will have some degree of vision and it’s unlikely that any will have the same level of sight loss. I’ve always said that for these two million, a mobile isn’t going to change their life – it’s not a magic button – but what you should be able to do for any visually impaired customer is ensure that they leave your shop being able to do far more than when they entered.
Assessing the customer’s needs As the customers and their visual impairments are all different, there’s no one-size-fits-all solution for mobiles. 26
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To find out the right solution, it’s imperative to ask the right questions. A few important ones are given below: What handset are you currently using? If a customer is already using an operating system and brand, it may be an unnecessary complication to change this, as it requires re-learning. What level of sight loss do you have? With types of sight loss ranging from colour blindness to contracted fields of vision, establishing this will inform what uses, models and apps are best suited. What do you currently use your phone for and what would you like to use your phone for? Understanding their familiarity with mobiles will ensure you start at a suitable level of advice.
Big Launcher (Android) – creates a big panelled home screen and menu system for Android handsets, working with the in-built voice over function.
If you have any questions or need more information, get in touch with me on twitter – @marklskelton or visit Project iCare at www.talk-direct.com/project-icare.html www.mobiletoday.co.uk
Teams announced from each retailer have been chosen to form the official teams. The six retailer teams will now battle it out to reach the live final at the iSellMobile Awards.
Each week the lowest scoring team will be knocked out until only three remain. Staff can support their teams by playing the game themselves to boost the team score.
CARPHONE WAREHOUSE GLYN FURLONG, Leicester CHANTELLE MCSHARRY, Glasgow Braehead DAVID WATFORD, Manchester STUART BONNER, Glasgow
O2 GARETH CUMMINGS, Newtownabbey DEBBIE BRANNIGAN, Belfast Castlecourt JONATHAN TAYLOR, Bishop Auckland NICHOLAS JANE, Newcastle Upon Tyne
THREE RETAIL CRAIG NISBET, Glasgow Forge GEMMA MACBETH, Parkhead PAUL MILLER, Grimsby CHRIS WOOD, Grimsby
EE ROSS WILLIAMSON, Glasgow STUART DEATON, Harrogate DAMIAN MCGREEVY, R8 Birmingham DANIEL DEVINE, Edinburgh
TESCO PHONE SHOP LIAM MCKENZIE, Galashiels TOM JOHNSON, York ADAM WHEATER, Hereford JACK CURRY, South Queensferry
VODAFONE LIAM GOODMAN, Middlesbrough DAN ALLAN, Newcastle Northumberland St ISTVAN KISS, London ANTOINE MCCALLA, Birmingham High Street
The annual ultimate product knowledge challenge is well under way for 2016, with each retailer’s team now announced. After hundreds of entrants completed more than 100,000 cards, the four highest scorers
Meet the teams:
Think you could be a Product Mastermind? Try your luck with the questions below, then have a go at the real deal at www.isellmobile.co.uk/mastermind
Answers: 1. Moto G4 Plus (3,000 vs 2,750) 2. G Flex 2 (401 vs 403)
www.mobiletoday.co.uk October 2016
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