Mobile November 2016 by Future PLC

Split personality? page 12 How to fix the online in-store divide with an Omnichannel approach

Roaming Brexit page 18 ‘There is a real risk for people that roaming rates will increase’ – Transatel CEO

Product Mastermind page 27 Vodafone staff win shock victory over EE & Three

Sharp insight. Inspiring analysis www.mobiletoday.co.uk November 2016 £2.70

Get ready to switch Proposed switching changes to disrupt operator churn and retailer strategies

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Month of the regulator Ofcom dominates the headlines this month on multiple fronts As retail approaches the month of madness, Ofcom is gallantly doing its best to keep the news desk busy right through to the new year and beyond. We’ve seen Ofcom’s upcoming 4G and 5G spectrum auction rules announced, taking the middle ground on restricting bidding to push competition, and as a result attracting the ire of both sides. The regulator also opened customer complaint investigations on True Telecom and concluded those against Vodafone. Meanwhile Ofcom’s consultation on mobile switching changes rumbles on in the background, threatening to completely disrupt operator churn rates and retailer strategy, as we’ve delved into in this month’s investigation (pages 9-11). Elsewhere in this edition, we’ve got all the information on this year’s iSellMobile Awards, which took place at the Ministry of Sound in November. With a massive and unexpected victory for Vodafone, the return of Store Manager of the Year and EE winning Best Retailer to Work For, it was a night to remember for the evening’s winners. Having attended most of the industry’s awards ceremonies, the iSellMobile Awards always make one thing abundantly clear – when it comes to celebrating, retail staff put the rest of the industry to shame!

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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.

Contents

04 09

Mobile Download Fast stats, facts and news

Mobile Investigates Mobile switching: how Ofcom’s proposed changes will increase churn and disrupt the industry

November 2016

Interview Jacques Bonifay: Transatel’s CEO compares the UK MVNO space with other markets

Tech Guide Tablets: Stagnant market or ripe B2B opportunity?

Mobile Explores Omnichannel: Analysing the omnichannel strategies connecting online and in-store Analysis Product recall: examining the wider impact of product recalls across retail, distribution, dealers and associated products

10 ways to sell… B2B VR: the industries already implementing VR technology in the workplace iSellMobile Store Awards: See the winners of this year’s iSellMobile Awards and Product Mastermind

Power 50 Gordon Luo: The strategies and leadership style behind Huawei’s UK leader

www.mobiletoday.co.uk November 2016

DOWNLOAD Fast facts, stats, news and debate

The debate: Is the high street still the best route to market for manufacturers? YES

Sunetra Chakravarti, editor, Mobile Choice IMAGINE a world without the high street, just row upon row of vending machines. Depressing, right? The customer thinks so too. That’s why, even though 71% of consumer journeys start online, only 42% end up buying that way. And while 18% of would-be buyers look in a high-street shop first, 31% buy from a bricks-andmortar establishment. This nugget of information by GI-Insight tells us two things: first, you cannot discount the high street or its importance to the customer and second, an omni-channel approach is the one to think about for the long term. Selling is an art. Yes, the lure of an incredible discount may prove tempting on Black Friday, but queues still snake across the street at 4am outside Next

PHONES

on Boxing Day. Tech, like cars, high-end jewellery and a hot lunch, is still bought in-store. It may be something to do with getting more questions answered, or perhaps the ease of having a new device set-up. After all, manufacturers would not be pouring money into high street retail had it been a failing proposition! And while, occasionally, we will see the likes of OnePlus breaking through the perception barrier, the world wide web is strewn with the remains of those that didn’t make it. I have repeatedly asked manufacturers: why online? And repeatedly I’ve been given similar answers... Online is a toe-dipping exercise; akin to a soft launch. Once name and fame are theirs, their range of devices will be available at a store near us.

Jack Courtez, news editor, Mobile FEWER than 20 manufacturers are stocked in the big five stores, compared with thousands on Amazon alone. This shows that for most, online offers a far cheaper and more accessible route to market, allows manufacturers greater ownership of the customer relationship, and also gives greater brand control over marketing strategy. On top of this, the traditional reasons for buying shelf space are decreasing as the high street no longer offers the largest audience and consumers are becoming less reliant on store advice (81% already own a smartphone, 81% research online).

Even the big manufacturers are looking to take back control through upgrade programmes (Apple) and promotions through their own online retail propositions (Samsung, Huawei). And, it’s only going to get worse. If challenger brands are successful in increasing the market’s price elasticity, and switching proposals by Ofcom and the buy outright trend undermine subsidised purchase models, the massive overheads of real-world retail will lead to a shortfall, which will bite manufacturers, consumers or both.

‘The traditional reasons for buying shelf space are decreasing as the high street no longer offers the largest audience.’

Big releases Our round-up of the key releases this month HUAWEI MATE 9 The first Phablet since the Note7, can Huawei make the most of it?

November 2016

KODAK EKTRA Built by Bullit group, this is the first top-spec camera phone since 2014’s Samsung K Zoom.

WILEYFOX SWIFT 2 The UK brand continues its online strategy through its exclusive Exertis distribution deal.

BLACKBERRY DTEK60 Were rumours of its demise moderately exaggerated? Blackberry’s DTEK60 is a white labelled device made by TCL, owners of Alcatel.

www.mobiletoday.co.uk

Download

Stats RETAIL

Customer vs staff perception of advice quality

The month in numbers

10% of homes to have VR by Christmas

20% of business users regularly run out of mobile data

10 million units shipped by Huawei in EMEA in Q3

Data: iSellMobile member survey December 2015, Mobile Choice member survey December 2015

COVERAGE

P3 test network scores

of users said they’d change suppliers if their account was hacked

£4.625 m

Data: P3 connect Mobile Benchmark Nov 2016

PEOPLE

fine handed to Vodafone by Ofcom for billing and complaints handling failures

GOOD MONTH VODAFONE Operator avoids spectrum auction sanctions and makes progress with customer service issues.

PLUSNET Gets a jump start in its mobile services launch by acquiring Life Mobile’s customers.

NOKIA The brand outlines its strategy for returning to the smartphone market in 2017.

Ups & downs APPLE Handset shortages affect sales, while a battery fault leads to a global replacement announcement.

THREE UK Joins the list of hacked mobile operators, compromising customer upgrade and personal details.

AGE UK Charity criticised by SuperShoppers documentary over alleged over-pricing of Doro handsets.

BAD MONTH

Movers

A look at who has changed role recently RONAN HARRIS

STEVE COX

SIMON PAYNE

MANSOOR HANIF

WAS:

GOOGLE EMEA SALES LEAD

TSG COO

CAPITA IT ENTERPRISE SERVICES MD

EE director of RAN & programmes

NOW:

CHESS COO Will oversee consolidation of its four recent IT service company acquisitions.

NOW:

TIMICO CCO Previous experience in outsourced IT services to be put to good use in growing this side of Timico.

BT dIrector of converged networks and innovation A crucial role in developing and combining BT and EE fixed and mobile propositions.

GOOGLE UK & IRELAND MD Arrives with cash to play with as Google CEO announces £1 billion UK investment plan.

NOW:

www.mobiletoday.co.uk November 2016

Ofcom blocks EE from 4G auction OFCOM has announced the rules of its upcoming 4G and 5G spectrum auction, including a 255MHz cap on ‘immediately usable’ spectrum that any one network can purchase. With BT/ EE already possessing 291.15MHz (45%), this means it is barred from making any additional 4G purchases. In response to the bidding block, EE CEO Mark Allera outlined the network’s stance: ‘While we don’t agree that competition measures should be introduced for this auction, we will now examine

Ofcom’s detailed proposal carefully and respond to the consultation.’The decision by Ofcom is a move away from the open auction the regulator initially favoured, however it stops far short of Three’s request for the cap to be set at 30% – thereby forcing EE and BT to sell spectrum and severely limiting Vodafone’s ability to purchase more. In a statement, Three voiced its disapproval over the new spectrum auction rules: ‘The mobile industry is failing

customers and Ofcom has showed it has no interest in addressing that. A 30% cap on total spectrum ownership and a spectrum reservation for smaller operators are the only measures that will preserve competition for the benefit of UK mobile consumers.’ O2 also criticised the auction rules: ‘We welcome Ofcom’s consultation on the upcoming spectrum auction. It is a step in the right direction but it doesn’t go far enough to satisfy Ofcom’s stated aim of sustaining four companies that compete

effectively and independently on coverage and quality. The auction presents an opportunity to rebalance spectrum and level the playing field across the mobile sector. We will engage with Ofcom during the consultation process to ensure that customers get the best outcome, ensuring a competitive four-player market for mobile services.’ Philip Marnick, Ofcom’s spectrum group director, said: ‘The UK has long benefited from strong mobile competition. We are designing the auction to ensure everyone benefits from a market that continues to innovate and serve them well.’

EE boosts TV offering EE has announced that it is extending its TV offering by expanding its channel recording capabilities, integrating Twitter activity

and giving access to reality TV app, hayu. The partnership with Twitter is the first of its kind in the UK, using real-time information

from the social network to inform TV users of trending shows and to provide relevant hashtags to the show being watched.

Odd call: iPhone 7 name change A MAN in Ukraine formerly known as Olexander Turin has legally changed his name to iPhone 7 to win – you guessed it – an iPhone 7. While the 20-year-old student told reporters that he plans to keep the name for now, he said he will change it back when he has children.

November 2016

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www.mobiletoday.co.uk 22 September 2016

Phablet season

Daisy chain of acquisition continues with £165m bid DISTRIBUTOR, dealer, and telecoms and computing service provider Daisy Group is to purchase its rival, Alternative Networks, in a £165m deal. The purchase, which will strengthen the Lancasterbased company’s managed IT services division, is its 50th acquisition. It follows

Alternative Network’s struggling performance over the past year, posting three profit warnings within the period. The two companies had previously both benefited from an acquisition strategy of purchasing smaller rivals, in some instances both bidding on the same takeover opportunity.

Aurora shows Affinity for VSP billing AURORA has announced a new addition to its Affinity billing system – Virtual Service 8

November 2016

Provider (VSP). The new system gives customers ‘direct access’ to Vodafone and O2’s

Neil Muller, CEO of Daisy, said: ‘This announcement builds upon Daisy’s successful acquisition strategy, to enable our customers to take advantage of digital technology in a converging world of business communications and IT. ‘Alternative Networks is one of the largest independent providers of IT managed services and business-tobusiness communications in the UK, and represents a strong and complementary strategic fit with the Daisy Group’s existing business and operations.’

networks through Affinity. This will allow dealers using VSP to proactively manage their customer’s billing – automatically recommending tariffs, highlighting usage issues and providing flexible contract agreements. Describing how the new service will help its customers, Aurora’s managing director Derek Watson said: ‘The advantage of VSP is that you don’t need to be a mobile billing expert to provide your customers with a first-class mobile service, as Affinity does all the work for you.

OCTOBER and November saw the UK launch of three high-profile, large-screen Phablet devices – the Google Pixel XL, the Huawei Mate 9 and the HTC 10 evo (AKA HTC Bolt in the US). Google focused on its voice assistant, and Huawei on its limited-edition Porsche design variant, while HTC made its USB Type C enabled headphones one of the key points. Prior to the Note 7 recall, Samsung’s UK director of B2B, Phil Lander, described large-screen devices as ‘the fastest-growing area of the smartphone market’.

Decision Tech buys Sellmymobile.com Decision Tech bought Sellmymobile. com in November in order to take advantage of cross sales opportunities and a growing UK mobile recycling market. The purchaser already runs comparison sites such as broadbandchoices.co.uk and provides whitelabelled comparison tools for Confused.com and GoCompare.com. Decision Tech’s CEO Michael Philips said: ‘Our acquisition strategy is focused on identifying businesses that generate customer data, provide cross sales opportunities or enhance existing marketing and commercial competencies.’ www.mobiletoday.co.uk

INVESTIGATES

Trading places: The impact of Ofcom’s switching changes The move to make switching easier for consumers could shake up the mobile industry Kate O’Flaherty

fcom’s mobile switching proposals have the potential to shake up the mobile industry. With churn rates at an all-time low, heavyweight providers are concerned about losing customers as it becomes easier to move to another network. At the same time, smaller operators such as Three, and MVNOs, are backing the proposals as they look to capitalise on the potential resulting churn from larger rivals. As part of its mobile switching reforms, Ofcom has suggested two alternatives: One is for PAC codes to be automated and sent to a customer by text; the other for gaining provider-led switching, where the entire process is managed by the new network. Favoured by Ofcom and already a success in the utility, banking and broadband markets, provider-led switching is said to benefit consumers. But it could result in a logistical nightmare for operators as they are forced to change the way they retain customers. In addition, increasing competition could encourage the mobile networks to reduce prices – another cost that would have to be absorbed. The regulator has extended the deadline for its decision on the reforms until the end of this year, after introducing a new consultation on switching notice periods. The second consultation was added after Ofcom became concerned about the time period www.mobiletoday.co.uk

Ernest Doku, technology and mobiles expert at uSwitch

covering the current switching process. As part of this, the regulator wants to bring an end to double charging – where during switching, the customer can be paying two mobile operators as one contract ends and another starts.

Switching problems Currently, PAC codes must be delivered to a mobile customer within 24 hours. However, consumers have to call the losing mobile operator to obtain the code; a process that many find difficult. In addition, it often sees customers being offered an ‘under the counter’ deal, which undercuts the offers available online and in stores. According to uSwitch research from earlier this year, 24% of customers successfully switched provider in 2015, but only 23% described the process of leaving their network as ‘easy’. Meanwhile, 22% felt pressured into staying, while 21% were bombarded with questions. Another 16% said the conversation was ‘awkward’.

Ernest Doku, technology and mobiles expert at uSwitch, says: ‘It can currently take 25 minutes of phone conversation to switch and you have to speak to your network twice – sometimes even four times. As a comparison site, consumers come to us and ask, how do I do it; will I keep my number? People are very afraid of losing their number, and also of double paying while they migrate.’ According to John Whittle, CEO at Unshackled, the current process of leaving is difficult, and there is a lack of information around choosing the right solution. He explains: ‘Tariffs are complicated

‘People are very afraid of losing their number, and also of double paying while they migrate’ Ernest Doku technology and mobiles expert, uSwitch

and customers are unclear on how much data they use – so they are unsure of the best alternative when switching.’ The operator market is divided by the proposals, which the larger companies say will be a challenge to implement in practice. For example, while Three has openly backed the proposals, its larger rivals O2, EE, and Vodafone have expressed concerns. An O2 spokeswoman says: ‘Overall, the current switching process appears to work well for the vast majority of customers, but we welcome dialogue with Ofcom on where improvements can be made. For there to be a big move to change processes and systems to ‘recipient led’, there needs to be confidence that the benefits outweigh the costs – and deliver a better experience for customers.’ As well as concerns over the cost of implementing the proposals, operators say there could be security issues such as identity fraud as the result of provider-led switching. Some operators also point out November 2016

INVESTIGATES

John Whittle, CEO at Unshackled

the importance of taking converged, quad play offerings into account when the proposals come into force. Ofcom is looking at switching triple play offerings of landline, broadband, and pay TV – whether individually or in a bundle – through a third consultation, but the mobile proposals are currently being examined separately. According to BT and EE, who sent a joint statement to Mobile: ‘We welcome Ofcom’s consultation into mobile switching. However, given the market changes afoot, we urge Ofcom to take a holistic approach so as to develop processes which work in a converged world, and make switching bundles quick and easy for consumers, rather than focusing on mobile and triple play switching in isolation.’ 10

November 2016

Customer service Experts say it is true that Ofcom’s proposals will lead to increased pressure on mobile operators, creating a need for ever-greater levels of customer service. Whittle says: ‘Customers who have suffered from poor experience and network problems will be able to move more easily, so the market will

become more competitive – and customer service will have to improve.’ For bigger operators, easier switching should therefore act as a motivator for improving customer service, says Kester Mann, analyst at CCS Insight. He cites the example of Vodafone’s billing system problems in June this year as something which could be damaging to a network when switching is made easier. ‘There is a need for customer service, and operators are looking at how to invest in that. EE has talked about investment; O2 has so far been a shining example of customer service.’ With this in mind, it is clear that loyalty and retention is a big focus for mobile operators. It has so far resulted in record low levels of churn; something that could change when Ofcom makes it less arduous for consumers to switch networks. Ben Rubin, development director at EY-Seren, is one expert who thinks the proposals will increase churn. ‘Mobile is an industry where the propensity to switch is already there; there’s already a natural cycle; by removing some of the barriers it will be easier and if someone is offering a better product and customer experience, we will see movement.’ Sales techniques and marketing strategies could also be affected by Ofcom’s proposals. In the short term, it is likely that operators will increase proactive contact with customers to ‘make sure they are retained’, says Whittle. Some say it could also result in more aggressive salespeople in

‘We urge Ofcom to take a holistic approach so as to develop processes which work in a converged world’ Statement from BT and EE

stores and call centres as competition ramps up in the industry – especially from those who want to acquire rather than just retain customers. However, other industry commentators say the change will be more subtle. Danny Dixon, Three’s director of customer strategy, says the network would push its messaging around competitive pricing and data ‘even harder’. In addition, he says: ‘We would talk about how the barriers to switching have been removed. When customers contact us we would outline this.’ As a result, Dixon says, ease of switching networks would form part of the sales journey training ‘but it would be below the line’ rather than forming a large marketing or advertising campaign. Dixon adds: ‘When there are low barriers, it means operators need to up their game in terms of price, proposition and customer experience.’

Price differences In fact, many experts believe price will become a differentiator as switching is made easier for consumers. Dixon says there would be more ‘transparency’ around pricing, although he stops short of predicting a price war: ‘At the moment, at the larger operators, there is a published price and one customers can pay under the counter. So there would be greater transparency and that would be better for customers.’ Whittle agrees that mobile offerings could become more price-led. However, he adds that operators would need to look for other ways to make money or become more efficient. It will create a need for mobile networks to examine new sources of revenue, Mann agrees, saying: ‘We have seen O2’s connected home effort to try to drive new revenue so maybe we will see more of this in the market.’ An industry source agrees, adding: ‘I see more www.mobiletoday.co.uk

Switching changes

operators might see a similar impact. This will lead to greater competition and the potential for better offers in the market.’ If past experience is anything to go by, Ofcom’s proposals will come into force – eventually. Because the regulator has already expressed a preference, provider-led switching is likely to be the method it chooses. At the same time, it is clear there

Danny Dixon, Three’s director of customer strategy

‘We want a fair process. When a customer wants to leave, my view is it should be as simple and painless as possible’ James Phipps, Excalibur CEO commoditisation, so mobile operators become, in effect, utility companies. They will need to become more efficient, so I see their distribution strategy changing – and the number of stores on the high street reducing as things move into a digital world where it would be easier to switch.’ In addition, the source says, the need to cut costs could even see a reduction in brand investment from operators as they look to become more efficient. However, Mann argues, brand ‘is still really important’. He explains: ‘Talk to O2 and this is an important part of their strategy. Customers can develop a real affinity with their brand.’

MVNO opportunity There is no doubt that easier switching will provide opportunities for the MVNO market, including emerging www.mobiletoday.co.uk

mobile providers such as Sky. It will also be interesting to see what happens with smaller MVNOs such as Plusnet – which is targeting mobile, says Rubin. ‘These customer-focused businesses could start to benefit enormously and larger providers are going to have to up their game.’ The MVNO market is potentially a great opportunity, agrees Doku. He adds: ‘There are providers who are very prominent when it comes to deals and benefits and they will have a far more level playing field to take share away from the incumbents.’ Subaskaran Allirajah, chairman and founder of MVNO Lycamobile, says Ofcom’s proposals will allow MVNOs to compete on many more levels’. Allirajah adds: ‘While MVNO churn rates are already high – our customers are able to leave and re-join as often as they like – as a result of the changes, mobile

Ofcom’s proposals could disrupt the subsidy model Ofcom’s switching proposals could potentially disrupt subsidies and result in a leasing model for customers, according to Fonehouse chairman Clive Bayley. ‘I think it will upset the subsidy and reward model for selling phones by transforming how people sell handsets and airtime.’ He explains: ‘I like change; change is good, but we get most of our money from subsidies. Instead of getting subsidy from networks, we would have to get it from leasing. We are selling a lot of Sim-only and if a customer is allowed to change the network at a month’s notice, you would have to lock them in somehow. It’s an unnecessary complication.” Ultimately, the result could be a shake up of retail, says Bayley: “There are other things you can sell such as accessories and internet of things (IoT) related products. Things will have to change but the industry will come up with new ways to deal with the problem. It won’t be terminal; but it will shake up the industry.’

are challenges ahead for mobile operators large and small. The incumbents will be forced to change decades-long processes to potentially lose more customers. At the same time, the smaller providers will need to up their game – and match this with sterling customer service – if they are to grow their own bases substantially.

If longer-term contracts are not available in the dealer market, it will be difficult for many to fund up front hardware costs, according to Derek Watson, MD at Aurora. Therefore, he says: ‘The monthly rental prices for hardware might increase as dealers look for other sources for up front funding.’ The proposals could make things more complicated for customers and put pressure on the dealer, says James Phipps, CEO of Excalibur Group. According to Phipps: ‘We want a fair process. When a customer wants to leave, my view is it should be as simple and painless as possible.’ However, he says: ‘We don’t control a PAC code, but we are on the hook in delivering it at a time requested by Ofcom. So you can get a customer complaining about this and we wouldn’t be in control of the process; we sometimes wait two hours for a PAC code. Often, regulators don’t approach things with this in mind – that’s a challenge we can experience.’ In addition, Phipps warns, easier switching could lead to more aggressive sales techniques from the acquiring provider. ‘There are tactics in some call centres that are highly questionable. If customers can move quickly, you could be potentially fuelling that more.’

November 2016

Explores

Robin Phillips, director of Omnichannel and Development at Boots UK uses the company’s innovative connected sale technology

Which route suits?

Omnichannel has been a buzzword in mobile retail for a while now, but what does the phrase actually mean? And who is leading the way when it comes to providing a service across many platforms? Zak Garner-Purkis

he launch of the iPhone always provides a helpful barometer by which to judge changes in the industry. From the adoption of 3G through to the second-hand market, it’s a good way to test whether a trend has hit the mainstream. So this year, when there was a total lack of queue outside the Apple store – not for lack of interest, but because people had already pre-ordered online – it was a clear indication that the way in which people buy phones has fundamentally changed. The combination of

November 2016

in-store collections, online deliveries and over-the-phone sales revealed a market of multiple routes to purchase. Speak to any leading figure in retail today and it won’t be long before the phrases omnichannel or multi-channel come up. Regardless of the sector or the type of retailer, the many different ways customers expect to be able to browse or buy products has become a critical part of the way strategy is shaped. Often, a multi-channel approach is characterised as being the way in which a

traditional bricks-and-mortar retailer seeks to find new ways to interact with the customers digitally. But this emphasis on providing multiple points of interaction is equally true of online brands, many of whom are looking to establish a high street presence – whether that’s Google with its Carphone Warehouse store-instores or Amazon with its click-and-collect points. The mobile sector has always had multiple points of interaction with customers. Telephone contact centres, websites and apps have supplemented the in-store experience for retailers, operators and manufacturers alike. Originally, this was on a service basis, but increasingly now it is where purchases take place. The retail store remains a critical part of the customer’s journey to buying a new handset, but critically now, with an omnichannel approach, it may not be where the transaction is completed.

Being fit to compete Carphone Warehouse as a brand has perhaps the clearest view of how this omnichannel experience functions. The independent retailer is by its very nature the point at which many different mobile services and products converge. Its

customers all arrive with different manufacturer and operator preferences, which could all change at any point. Increasingly, however, the retailer is also finding that it’s not just what the customer is purchasing that varies, it’s how they want to complete that purchase as well. ‘Customers that come to us are comparing, and they are also comparing the ways to buy,’ says Victoria Self, online director at Carphone Warehouse. ‘We know the customer in the mobile industry is on a research journey. This is because it is the most important purchase they make every two to three years. As one of the most important decisions they make, they don’t take it lightly. This leads to an intense period of reflection where they are considering – “OK I’m ready for an upgrade, what am I going to do?”’ The retailer recently underwent a major redevelopment of its website to ensure that it could cater for customers who wanted options when it came to the way in which they bought their phone. This was based on some in-depth customer research about the process they went through to buy a new handset, as Self explains: ‘We embarked on this journey about three years ago, when we were really www.mobiletoday.co.uk

Omnichannel

recognising the multi-channel customer journey. ‘Our research showed 90% of people are starting their journey online, over an intensive research period. Customers are generally spending around 90 days researching the handset and tariffs. That really drove our thinking on what we would be focusing on. ‘Of course it was really important to make sure that the checkout worked brilliantly, along with all the ecommerce basics. But we also invested a lot of time in understanding how our customers shop in that 90-day period. They want to research handsets, compare tariffs, compare networks, talk to their friends, read the reviews – all the things that you would normally expect of a mobile journey. ‘People want to go across all of our channels. If anybody wants to convert online we make that as easy as possible, but actually most people don’t want to convert online, they go into our stores, they give us a ring and have much more of that assisted sale. Obviously we have Pinpoint in store, but assisted sales online and giving the customer multiple options towards an assisted sale is a really important part of that journey too. We had to make it really obvious to our customers which channel they wanted to go through.

‘People want to go across all of our channels’ ‘We’re not pushing them to convert online, we are saying “OK, you’ve done this bit of research now what channel do you want to go to, do you want to go to store to continue? Or do you want some advice? Give us a ring.”’

The personal approach An omnichannel approach only offers an advantage to a retailer if it is bringing them closer to the customer they are trying to serve. Multiple points of access that collect disparate pieces of data are utterly useless. In fact it’s actually counterproductive if the customer interacts with a retailer through different channels and different results are produced from each stage. Connecting together, in store,

online and telephone data is critical to this; it makes the interaction smooth and gives staff the opportunity to add extras for the consumer. For Robin Phillips, director of Omnichannel and Development at Boots UK, this experience actually goes back to a traditional form of localised retail, when staff knew customers personally and could tailor their service perfectly because of that knowledge. ‘The perfect omni-channel experience is probably what Jesse Boots’ [Boots founder] had with his first store. He knew his customers by name, he remembered them, what they’d done, what they’d had wrong with them, and could then recommend exactly what was right for them. Essentially, we’re trying to replicate that Jesse Boots

‘We’ve increased the amount of resources needed to support our clients and that’s resulted in more sales’

experience whenever you touch our brand – whether that’s in one of our stores, on our app or on our website. ‘It’s about that end-to-end seamless experience. Of course we look at how we can trip out our stores and how we can provide them with kit, that means when a customer comes in to collect an order or purchase a product they’ve seen on social, it’s easy. But as well as building those tools, we know that without the right data they’re absolute useless. So the other thing we work on is the right level of personalisation. ‘We think about how we can put together rewards in an increasingly compelling way, which reflects the customer as an individual. I like to think of it as “has Boots got a memory of you as a customer?” – that we know what you want to do whether you’re on your phone or on your tablet and therefore we give you the next best action, the next best experience. We’re investing in our data and analytics platforms to help us to do that better. ‘In an omni-channel world if you promise your customer something, you’d better do it. Because they’ll remember the one-in-100 times that you didn’t deliver on your promise. So you need to go into this thinking about what your brand means to the customer? What are the promises that I’m going to make? How do I make sure that I never break them? And if I do break them how do I make sure I recover them really well?’ Phillips firmly believes that an effective multi-channel approach only works if a brand can recognise what its strengths are and use that as the basis to do even more: ‘Omni-channel is about recognising what you’ve already got. So omni-channel for Boots isn’t all about digital, it’s very much about our stores and about our colleagues. We’ve got thousands of trained pharmacists; we’ve got 2,500 points of presence; we’re on every high street; incredibly convenient; we’re very close to our customer, and that’s reflected in our

www.mobiletoday.co.uk November 2016

Omnichannel

In partnership with Carphone Warehouse, Google made the jump from online to in store to sell their Pixel handsets

omni-channel offer. ‘Over 75% of our online orders are actually collected in a store – that’s great but it can cause a problem at a peak. So in smaller stores you can have an influx of parcels and for our colleagues there’s the issue of “where do I put all this stuff?” So having an omnichannel approach is thinking about how we help with that.’

Omni in B2B In many respects, the B2B side of the market has been operating an omnichannel approach for a while now. Dealers in particular try to stand out from direct operator relationships by providing as many access points as possible for the customer. It could be argued that the effective use of customer data and multiple routes to the customer provided by the reseller is even more critical in B2B. This is because it not only provides mobile dealers with greater insight into their customers’ needs, it adds to the number of services they sell to them. This is particularly important in a market where growth often comes from selling more products to your existing base rather than acquiring additional accounts. However, it does also mean that you need to be consistently 14

November 2016

increasing the technical knowledge of the staff and the range of services for sale. It’s no good offering the customer the chance to have remote access to their phones system by hosting the service in the Cloud, if you don’t have the staff qualified to provide the assistance over the phone should it go wrong. This nearly always requires investment, which can be tricky for mobile dealers; not everyone has the financial leverage of a Carphone Warehouse or a Boots to pivot towards what they believe are the next key customer requirements. However, James Wright, MD of Vodafone dealer Vivio, believes that it’s still worth the risk: ‘We’ve increased the amount of resources needed to support our clients and that’s resulted in more sales. The industry is moving from a service delivery model where you get everything included in one price to a chargeable service model. So we moved into a broader range of services, which helps lessen the pressure on margins – and we have to be putting more business through it. It’s market driven – everyone is trying to integrate everything with everything. ‘For our partners, the biggest challenge is the amount of resource it takes to move into new

technology and services. That’s been a real driver for us in terms of the investment we make in support services – and we’ve had to change the type of support we’re offering to become more technical. We’ve invested in different types of people and more systems, and have gone through the process of looking outside mobile – and it’s enabling us to win contracts we wouldn’t have been able to win before.

O2’s multi-channel ambitions Everyone in the mobile market will be well aware of the swing that is occurring from contract-based customer relationships to SIM-free arrangements. The impact of this change in behaviour increases the importance of having a smooth omnichannel business to interact with. The customer is not tied by a contract in the same way, making each interaction across different platforms all the more important. It’s something that O2 is looking to harness both in terms of its consumer-facing business and in the B2B arena, as sales director Ben Dowd explains to Mobile: ‘A high level of SIM-only business does create some challenges because it brings it closer to the commodity end. If

you’re offering a wrap of services that includes hardware, digital, IT services and fixed services, then you’ve got a fairly powerful bundle of capabilities that is sustainable. One thing I’m very much in favour of is that many of our partners have got their own products and services. Clearly they’ve got our products and services that they sell, but it’s the wrap of both services that they offer to their customers that makes it a winning formula. If SIM-only is the only gig in town then you’re really going to struggle to drive value.’ Dowd’s role at the network has changed in recent months, giving him responsibility for sales in both the consumer and business segments of the business. This move has prompted him to propose an even more radical consumer/business crosschannel approach at the operator. This move, if executed correctly, would give O2 a unique route to interact and sell to customers. But Dowd believes firmly that the operator is capable of doing it: ‘When you look at the size and scale of our direct consumer business – and you look at the size and scale of our B2B business both direct and indirect – I think there’s huge potential to leverage business more into consumer and consumer more into business. ‘The reality is that all business people in the day are consumers in the evening. I believe that O2 is one of the organisations that can bridge the gap between the consumer and the business. The structure that we’ve got enables us to do that more easily than we ever have done before. I’m not saying it’s going to be easy, but the fact that all of the distribution for business and consumer now sits in one area makes that easier to achieve than ever before. ‘Customer insight is critical to our success, and in particular our alignment with marketing in terms of the proposition and the “my O2 story”. It’s particularly important that we execute that correctly and put the strategy into the relevant channels.’ www.mobiletoday.co.uk

Analysis

needed. The European Commission also requires both the manufacturer and the distributors involved in a recall to submit detailed risk assessments, and they can be criminally prosecuted under health and safety law for breaches. However, Shiers also explains that the traceability due to the mobile industry’s more detailed customer history can speed up the process ‘Product recalls in the mobile phone sector benefit from increased levels of traceability. Often, the retailer and service provider are able to identify the contact details of a significant proportion of end customers; at least for handsets, but often also for accessories sold with handsets.’

Accessories manufacturers

Analysis:

Product recalls… What is the industry impact? Following one of the largest recalls in the industry’s history, Mobile looks at how different areas of the industry have responded

Jack Courtez

Retailers When asked about the effects of product recalls, retail staff surveyed by Mobile had mixed views, with one EE staff member stating: ‘It doesn’t have to be negative, it’s based on the rapport you have with the customer, but It does affect the brand – we’re responsible in the eyes of the consumer for ensuring the quality of what we sell.’ Conversely, another from Carphone Warehouse told us: ‘I think consumers know to attribute fault with whoever makes the product, not at the point of sale. When a customer comes in because of a product recall it’s an opportunity to build trust by fixing a problem for them.’

Manufacturers This is the group that bears the brunt of the cost and reputational damage – Samsung’s Note7 recall reduced the company’s mobile profits, dropping 96% in Q3 2016 compared with the same period last year. However, www.mobiletoday.co.uk

mobile industry product recall expert and MD of RQA group Vince Shiers explained to Mobile that if a manufacturer is quick to act on sound market intelligence and product safety, the fallout should be limited to the short term, ‘Following recall action, a manufacturer that has acted responsibly is likely to have mitigated the negative impact on its reputation and should recover strongly; although this may take time. Reputational recovery may be accelerated by offering promotions and sales offers to retailers and other partners.’

Distributors Logistically, a recall in the mobile industry has several unique challenges and advantages compared with other industries. With many of the recalls being related to battery safety issues, device recalls can become expensive and time intensive, from sending out kits to allow untrained staff to store and package potentially hazardous materials, to negotiating with transport providers for the licences and access

Whether directly or indirectly related to their products, recalls nearly always negatively affect an accessory manufacturer’s finances, but reputational damage is a lot more complicated. RQA’s MD says: ‘Manufacturers of faulty accessories are rarely known to the end customer and instead faults with accessories are linked to the phone brand in the mind of the general public. However, the accessory manufacturer’s reputation within the mobile phone industry may need rebuilding. Of course, sales in accessories that are directly linked to a recalled phone will be impacted by a drop in sales of that phone, even though the accessory itself is unaffected.’

Dealers With heightened in-built security applications and business-friendly features such as the S-pen, many dealers expected the Samsung Note7 to be a key product. Prior to release, A1 Comms’ MD Steve Fraser told Mobile: ‘We expect it to be one of our top sellers for the rest of 2016 and beyond.’ This was echoed by Samsung’s director of B2B Phil Lander, who told Mobile: ‘Our channel partners are very, very keen for us to launch this product.’ With the Note5 absent in the UK, for many B2B dealers the Note7 was an opportunity to align the launch with the end of the Note5’s lifecycle, incentivising businesses with a reason to upgrade. With the demise of Microsoft and Blackberry’s devices, a shortage of business-focused devices could see companies happy to extend the lifecycle of their existing handsets. Not only does this reduce income from handsets sold, it also deprives dealers of the client conversations that are key in upselling additional services. November 2016

Power 50 presents

Gordon Luo Huawei UK CEO

Following the shock resignation of Mark Mitchinson from the role of Huawei UK senior vice president in September 2014, and the resignation of the UK and Ireland CEO Victor Zhang, Gordon Luo was appointed as Huawei UK and Ireland CEO in the same year. Achieving several high-profile business feats, such as sitting on the Mayor of London’s Smart London Board, being a speaker at the CBI’s annual Chinese New Year dinner and overseeing Huawei’s win at the British Business Awards, Gordon Luo has increased industry and government engagement with the Huawei executive team.

Innovation Gordon Luo’s strategy of heavy research and development investment has seen a number of the UK’s leading research institutions partner with the brand, such as the Imperial College-Huawei Data Science Innovation Lab, the University of Surrey’s 5G Innovation Centre, and Huawei Innovation Research Program funding to the University of Cambridge and University of Southampton. In his previous role as Huawei Nordics CEO, Luo undertook a similar strategy of increasing local partners and working with universities, 16

November 2016

41st Headline maker

Examining the UK’s most influential industry figures Leadership

2015 Power 50 rank:

telling Scandasia in 2011: ‘Going forward, we will strengthen our ties to businesses and consumers to become a leading provider of IT as well as telecom, and establish ourselves as one of the three major brands of smartphones.’ And it paid off – Huawei Nordics achieved 57% sales growth in the same year.

A quick Google search reveals scant information from the UK and Ireland Huawei CEO outside of quotes disseminated through press releases. No speeches, no interviews, no biography. This low press profile combined with frequent corporate and government event attendance suggests an ‘iceberg’ approach, which extends to the high-profile board members, (Sir Andrew Cahn, Lord Browne, Dame Helen Alexander) who were all appointed early during his leadership.

Financial Muscle After Brexit, Gordon Luo made the bold move of reaffirming his predecessor’s 2012 pledge to spend £1.3 billion by the end of 2017. Coupled with Huawei Electronic’s £48.2 billion of global annual revenue and £48.2 billion of global annual 5G investment by 2018, the Chinese company is one of the few tech businesses in the world with the financial muscle to challenge the UK’s stiff, brandsensitive device market.

Breakthrough After taking up the reigns, Luo also took on the challenge of establishing the brand beyond engineers, operators and technicians and into the realms of consumer consciousness. With a narrow route to market in the UK, a government investigation under way over security concerns, and Samsung growing market share rapidly, Luo worked quickly to overcome these challenges, leveraging its reputation as a key UK infrastructure stakeholder to build network and retail partnerships. By the launch of the Huawei P9 flagship in June, the company had a firm foothold in every UK mobile retailer and a new field marketing team, with many staff poached from its rivals, Samsung. However, with market share still struggling to make gains, perhaps the consumer breakthrough is yet to come.

See also Howard Watson CEO, BT Technology, Service & Operations The former BT CIO will oversee its 5G-research collaboration with Nokia, which was announced in August. Grant Shapps MP, British Infrastructure Group leader The ex-Conservative Party Chairman is pushing for the Digital Economy Bill to be completed before the government-operator agreed 2017 infrastructure investment deadline.

www.mobiletoday.co.uk

SAVE THE DATE Sectionhead

1ST JUNE 2017

For information on how to enter or to Book your table please contact : Mark.fermor@futurenet.com

To view winners & photos from 2016â&#x20AC;&#x2122;s awards www.mobiletoday.co.uk November 2016 www.mobiletoday.co.uk/awards

Interview

Jacques Bonifay

compares markets The CEO and co-founder of Europe’s largest Mobile Virtual Network Enabler (MVNE) discusses roaming, the UK MVNO space and embedded connectivity

Jack Courtez & Zak Garner-Purkis

The UK MVNO Market As both an EE airtime reseller and a technical subcontractor of EE, Transatel is responsible for arranging and maintaining MVNO access to the operator’s network. Despite describing the world of MVNOs as having a ‘pretty high’ mortality, the Transatel CEO is confident about its role in the UK MVNO market, telling Mobile: ‘We are pretty big in the UK because we manage more than half a million subscribers.’ He also suggested that the loss of certain individual MVNOs would not affect the wider eco-system, stating: ‘The UK market is continuing to grow... While some players such as the Post Office leave, others such as Sky arrive, so I think there is a good dynamic.’

B2B MVNO opportunity In other European markets, several unified communications providers have made the leap over 18

November 2016

to becoming an MVNO. Bonifay explained the logic through giving the business case: ‘There’s a future in providing value-added services and fixed-mobile convergence. As an enterprise yes, you buy your services from the same place and at the same time, but you can also have the same voicemail for fixed lines and mobile devices, you can answer calls on your fixed line from your mobile or you can call from your mobile but display the landline number. This is what we call fixed-mobile convergence services, and it makes sense in terms of productivity, value

and service for business customers. It’s under-exploited in the UK so I see the market going in this direction.’

Roaming & Brexit ‘MVNOs vary from country to country, although one of the key aspects across them all at the moment is roaming regulation.’ The Transatel boss described the potential danger: ‘We know that roaming is supposed to be abolished from a consumer standpoint, but it’s not abolished from a wholesale standpoint, so we need to be sure that the regulations on wholesale are done

‘If the UK goes out [of the EU] you will lose EU regulations on roaming... There is a real risk for people that roaming rates will increase’

in the proper way.’ Moving on to the impact of Brexit on roaming, Bonifay speculated: ‘Logically, if the UK goes out Brits will lose the EU regulations on roaming. If I were a statesman from one of the south European countries I would argue that since UK had chosen Brexit they should be excluded from the regulations. The reason is that there are more Brits going in to the southern countries than people from those countries going in to the UK for business or for holidays - I’d say “well if Brexit is Brexit, okay then, exit!” The rates will not be regulated any more and it will be £1 per MB or £1.20 a minute again. Logically, I think the UK will fight to avoid this because it is not in the interest of the country and a lot of the people will react negatively. Because of Brexit there is a real risk for people that roaming rates will increase.’

Embedded connectivity In describing Transatel’s operations, Jacques Bonifay explained that Transatel has two www.mobiletoday.co.uk

Jacques Bonifay

EE MVNOs such as The Phone Co-op rely on Transatel’s services

major activities. The first one is related to the MVNO business mainly as a MVNE and an MVNA but also as a MVNO. The second newer business is dedicated to the Internet of things with the deployment of SIM901 – a worldwide cellular data MVNO dedicated to embedded connectivity. The first target of Transatel is the tablet and laptop market. The idea is to have Transatel SIMs inserted into the devices at the point of manufacture to be ready to be used by end users. Describing the growth in this arm of Transatel, the CEO told Mobile: ‘Four years ago we launched SIM 901... Today we’ve got partnerships with Microsoft, we’ve launched with Dell and Microsoft in the US and we’ll be launching within a couple of months in the UK, Ireland and France. We’re already launched with Toshiba in France and we’re going to extend this in the coming months as well. We’re talking to almost every laptop and tablet manufacturer in the world.’

‘I think it’s a good thing that O2 and Three didn’t merge, because in countries such as Germany where there have been mergers it is a very bad country for MVNOs.’

Failed mergers

Life as an MVNE ‘We operate on a fairly large scale in France and the UK, and on a smaller scale in Belgium and Switzerland, making us globally

profitable with a long-term sustainability that gives us an advantage over our competitors. There’s no other player that is in two big markets; if you see some of our competition in the Netherlands, because it’s a tough, small market, it’s hard to be sustainable. In the UK our competition disappeared because they were only in the UK. In the MVNE industry you need some critical mass, the mortality of MVNOs is pretty high. If a customer disappears you need the scale to be able to win in one place and lose in another.’

A Toshiba 2-in-1 laptop utilising Transatel’s SIM 901 for embedded connectivity

Using the German operator space as a comparison, Jacques Bonifay explained his view on the UK’s failed operator merger, ‘I think it’s a good thing that O2 and Three didn’t merge, because in countries such as Germany where there have been mergers, it is a very bad country for MVNOs. Surprisingly, it’s the biggest European market and the one which is the least competitive – pricing is higher than in France and the UK, and if you want to launch a German MVNO it’s just impossible. It’s very bad for innovation and competition in the country.’

www.mobiletoday.co.uk November 2016

Tech Guide

Tablets: Once an invigorative product for B2B and consumer mobile, market saturation and competition from hybrid laptops has seen shelf space and dealer focus on the large-screen mobile devices drop, but is this a missed opportunity?

-14.7% Reduction in global shipments

38%

Year-on-year increase in Microsoft Surface Pro sales

6 years Replacement cycle of a tablet

68%

Of UK IT decision makers say tablets are part of employee device offerings

31.9%

Hottest tablets Microsoft Surface Pro 4 12.3” Price: £749 ‘Microsoft has made $4.3 billion in revenue from Surface products since their launch, and 97% of current users would recommend them. ‘The fourth iteration of Microsoft’s fantastic tablet range doesn’t disappoint. The superb display, the comfort of the kickstand, great processor and premium build quality scream understated elegance, and the bundled Pen is a great bonus.’ Apple iPad Pro 9.7 Price: £549 ‘This is an incredible product. Looks, power, battery and camera all play along nicely to make this the best tablet I have seen so far this year. ‘Although not a work laptop replacement, this has the grunt power, the display and the battery life to make sure that you don’t have to ever take your clunky work-issue laptop out of your bag, except at work.’ Source:

November 2016

Value led

‘Business users can be value led and therefore recognise value-led products, meaning an iPad Pro isn’t the first choice for many business customers despite it having the most business applications by default.’ Stuart Bonner, Carphone Warehouse, Glasgow Braehead Endless possibilities

Increase in Amazon’s tablet sales

On business tablets

‘Operating almost as a device that sits somewhere between mobile phone and computer, business tablets have the best of both worlds built into them as standard. The convenience, functionality and portability of a mobile phone meets the reliability, power and increased memory of a PC when it comes to tablets, with possibilities becoming almost endless.’ A1 Comms Lifestyle

‘It’s all about the lifestyle questions, even for business users. The key questions for tablets are always what tasks do you need it for and where do you use it? From this you should be able to determine the product with the most suitable USPs and specifications.’ Chris Brown, EE, Basingstoke The reasons

‘There are many reasons why a tablet can benefit your business – improving customer perception, improving productivity of employees, reducing IT costs – the list is endless. However, the challenge is how do you invest in this technology and ensure that ROI is met and that senior management see the value in tabletisation?’ One Point Solutions

www.mobiletoday.co.uk

MYTH 4:

Sectionhead

GADGETS ARE COVERED UNDER BUSINESS OR HOME ” INSURANCE. CE.

“

FACT:

These policies don’t always cover items taken outside of the business or home, and rarely provide extended warranty. 2 Also, the average excess for a home policy is £318¹ versus £50 with Supercover, and a claim with us will not result in a loss of any no-claims bonus.

¹Average home policy excess taken from 42 insurance providers on ComparetheMarket.com. Policy quote carried out on 23 June 2016 is based on £50,000 contents cover and includes a £250 voluntary excess. 2 Supercover’s excess is £25 for a gadget up to the value of £250 (when new), £50 for a gadget between the values of £251 - £500 (when new), and £75 for a gadget over the value of £501 (when new).

Just a few of the Supercover benefits that make us the gadget and tech insurer of choice:

• MINIMUM COMMISSION OF 30% FOR THE FIRST 6 MONTHS • UNLIMITED CLAIMS • ALL CLAIMS MANAGED IN-HOUSE IN THE UK • OVER 20 YEARS MOBILE PHONE INSURANCE EXPERTISE INCLUDED IN EVERY POLICY Theft/Accidental Loss*/Accidental Damage/Extended Warranty Liquid Damage/90 Days Overseas/Unlimited Claims/48 Hour Replacement *Mobile Phones Only

FOR FURTHER ENQUIRIES CONTACT US ON: 020 8960 4191

email: john.fannon@supercoverinsurance.com

www.supercoverinsurance.com

07956 113600 - John Fannon, Director of Sales Supercover Insurance Ltd are authorised and regulated by The FinancialNovember Conduct Authority2016 313806 www.fca.org.uk21 www.mobiletoday.co.uk

Sales tips

10 growth industries for B2B VR sales

Tips for dealers on identifying growth areas for B2B VR 10. 1.

Healthcare With potential cost-savings and significant improvements to quality of life, healthcare is expected to be a high-growth market for virtual reality (VR). Projects such as jDome BikeAround – a memory tool for Alzheimer’s patients – is already deployed in 50 care homes in its native Swedish market.

Staff Training Clear ROI potential gives VR staff training platforms such as Attensi a clear strategy. Spar Norway CEO Ole Christian Fjeldheim states: ‘Stores that use the simulations increase their like-for-like sales growth and customer satisfaction scores.’

Foxtons and RightMove are already trialling remote viewing of properties as a means of driving sales and providing an extra customer service USP. On a commercial level, it allows overseas investors the opportunity to view properties in detail before making a decision.

From primary schools to universities, VR offers engaging new tools for education both remotely and in the classroom. Dr Matthew Nicholls, associate professor in classics at the University of Reading, uses November 2016

Automotive industry Renault used VR to provide rally driving experiences in 2015, with the campaign’s creator, Manning Gottlieb, telling Marketing Week: ‘Within two to three years this tech will be used to drive day-to-day sales volumes’ – meaning a potential market of 4,900 car dealer franchises in the UK.

Pop-up and

6. experiential marketing From Airbus and Siemens at trade conferences to Jaguar and Quatar Airlines at Waterloo station, VR is an increasingly common attraction point for stands, with more than 20 agencies specialising in just this. As out-of-the-box solutions and low-cost 360-degree filming become common, VR is quickly becoming a viable tool for SMBs.

Property

4. Education

VR and detailed 3D modelling as a teaching aid.

Travel Thomas Cook used Samsung’s Gear VR headsets to give customers at their Bluewater outlet a 360-degree tour. Describing the partnership, Samsung’s director of operator sales and B2B, Phil Lander, said: ‘You can actually get a great experience using VR content, so I think that’s an area that will continue to grow.’

Entertainment The first VR IMAX is to open in LA in collaboration with Starbreeze and Acer. Acer CEO Jason Chen said of the potential market: ‘Premium VR experience… isn’t just our dream, but one of an entire ecosystem that encompasses hardware makers, videogame developers, theatre companies, filmmakers and many others.’

Engineering Lockheed Martin utilises VR as a design tool that saves time and cost, explaining its use of a custom VR system ‘to validate, test and understand products and processes early in program development, when the cost, risk and time associated with making modifications are low.’

Research VR can create a completely controlled environment where factors can be analysed in isolation. This is why the University of Reading’s Neurology Department has been using VR for more than 10 years, and Kantar has its own ‘fast, efficient and cost-effective solution’ for consumer research utilising VR.

Jargon Buster ‘Network roaming’ A term dragged into the spotlight in November by MPs from the British Infrastructure Group demanding network switching to overcome not-spots. Network roaming, unlike national roaming, is a user’s ability to move from one network to another on a local level as well. BYOD The significantly less fun cousin of BYOB, BYOD stands for ‘bring your own device’, and it creates headaches for B2B dealers and tech buyers alike as uniform software, hardware and VoIP solutions become harder to manage. iOT Botnet A botnet refers to a network of devices infected with malware, commonly used to simultaneously send millions requests to the same site until it breaks (AKA a DDoS attack). Tighter security had managed to reduce the impact of these attacks, but poor security on connected home devices connected over Wi-Fi has helped to build new and larger botnets.

www.mobiletoday.co.uk

Mobile Global

November around the world Africa

Oceana

One billion subscribers Africa is expected to exceed one billion mobile subscriptions in the fourth quarter of 2016, according to market research firm Ovum. The company also predicts there will be one billion mobile broadband connections on the continent within five years, compared with 333 million at the moment.

New Zealand – Country says no to mobileonly banking Over two-thirds of New Zealanders said they’d be unwilling to use a banking system serviced entirely by smartphone apps, putting it in the top four least-supportive countries. The survey by Nielson reveals that India is the most willing to go mobile only, with 46% saying they are ‘highly likely’ to use the service. Only four countries – France, Belgium, Hungary and New Zealand – are less likely than Britons to use these types of banks, according to a global study of 63 countries by Nielsen.

Kenya – BICS extends Africa reach Global voice data and capacity services wholesaler BICS has opened a new point-ofpresence in Nairobi, Kenya. This joins the company’s existing PoPs in Johannesburg, Djibouti and Mauritius. The company claims the move recognised the increasing demand for connectivity on the continent.

Asia Thailand – National first for dtac Thai operator dtac is to use Nokia’s IP/Optical portfolio to improve its infrastructure, becoming the first network in the country to use a software defined network-ready IP/Optical network, allowing it to deliver mobile broadband to more than 40% of the population. Saudi Arabia – Motorola to build TETRA critical comms network Bravo, the critical communications arm of Saudi Telecom Company, has selected Motorola Solutions as one of its partners to build a nationwide public safety network based on TETRA. The UK currently uses the same system but is slowly transitioning onto EE’s 4G commercial network.

Europe Ireland – Carphone Warehouse criticised for ‘pro-choice’ campaign Both sides on the abortion debate in Ireland criticised Carphone Warehouse for an advert, which used the common pro-abortion rights slogan ‘we’re pro-choice’ to promote its services. While stating that the campaign was ‘deliberately striking’, the company denied that it was taking a political stance. Italy – JV creates country’s largest operator CK Hutchison and VimpelCom have finalised their deal to merge local units in Italy, more than a year after the joint venture was announced in August 2015. The collaboration between Hutchison’s 3 Italia and VimpelCom’s Wind will create the country’s largest operator. In gaining approval, the two companies were obliged by regulators to sell assets to newcomers Illiad in order to ensure the presence of four robust networks.

Sweden – Lycamobile Launches 4G Lycamobile has launched 4G data for its customers through its partnership with Telenor Sweden, giving the MVNO a coverage footprint of 99.5% of the population. Lyca Group chairman Subaskaran Allirajah said: ‘Our extended agreement with Telenor for our service in Sweden to include 4G data services demonstrates our commitment to making it easier for our customers to connect with their communities and loved ones across Sweden and the rest of the world.’

North America US – ZTE escapes export ban for now ZTE has won another three-month extension allowing it to continue trading with its US-based suppliers until February 2017, despite US export restriction being formally announced earlier this year over trading with Iran. Commenting on the news, ZTE released a statement that said: ‘We are working towards resolving the investigation, which includes both removal from the Entity List as well as conclusion of the investigation.’

South America Chile, Brazil, Mexico – Telefonica and Huawei launch cloud services Telefonica Business Solutions and partner Huawei have worked together to launch their Open Cloud and Cloud Server services in Chile, Brazil and Mexico. The B2B services enabled by the launch are based on local data centres in each of the countries.

www.mobiletoday.co.uk November 2016

After three months’ worth of nominations, votes, supporter comments, interviews and live challenges, the winners of this year’s iSellMobile Awards were revealed at a lively ceremony and after-party at the Ministry of Sound in London. See below for a full rundown of this year’s winners.

iSellMOBILE Awards PEOPLE CATEGORIES

New: Bright Idea Award Stuart Bonner Carphone Warehouse Glasgow Braehead The Shop Idol 2016 runner-up impressed judges with his ‘litmus test’ system of trialling different product knowledge approaches with customers, evaluating their responses and then sharing the best practice that stems from this with his colleagues. While this feedback system may happen in an informal manner elsewhere, nowhere else in retail is such a methodical system enacted, and nowhere else does it yield such results – increasing targeted handset sales by 108%. 24

November 2016

Big Boss Award

Area Manager of the Year Seth Jackson Three East London/Essex Described by one supporter as a ‘simply awesome inspirational leader’, Seth has built the respect and trust of staff through his ethos of honesty, constant support and staff empowerment. By investing much of his time in developing staff through recognition, appraisal and promotion, Seth’s team acts with an informed confidence, which leads to staggering service and sales results.

Jon Shaw Vodafone The reigning champion defends his title for 2016 with 175 supporting statements from staff who’ve taken the time to leave glowing recommendations including: ‘Jon is a great leader who has really transformed Vodafone as a place to work and as a retailer,’ and ‘Fantastic leader, open, honest, listens to the people around him, always thinks about how to improve and make life better for everyone at Vodafone.’

left speechless not just by Wesley’s astronomical results, but how he consistently achieves this month after month, year after year. These results stem from an unshakeable commitment to his colleagues that always brings the very best out of those around him.

Trainer of the Year Dom O’Brien Sony Mobile Dom is probably the only trainer in the UK to train 500 people every day of the month, with his video

Store Manager of the Year Wesley Fletcher Carphone Warehouse Maidstone The judges in this category were www.mobiletoday.co.uk

and social media output supplementing in-store training to provide staff with constant support. His detailed knowledge of not just what Sony is doing, but how it relates individually to every retailer and every store’s focus sets Dom apart in making him ‘the 12th man’ on every store’s team.

Team of the Year

Maidstone 1695 Carphone Warehouse With friendships going back to childhood, team holidays and of course, phenomenal success, this is a store team like no other. The team has implemented a ‘learn by watching’ skill-swap approach along with innovative internal competition systems, ensuring consistent standout performance in all metrics.

New: Contact Centre Champion

Daniel Hulse Tesco Mobile Runcorn With a departmental record for social media praise from customers and a strong history in going the extra mile for customers, Daniel is an exemplary customer service agent. Using the goal of being transformational rather than transactional, he www.mobiletoday.co.uk

constantly challenges himself to go further in championing both the customer and Tesco Mobile.

PRODUCT CATEGORIES Best Flagship Launch in Retail Best Network Exclusive

Samsung Galaxy S7 edge From announcement to launch, Samsung achieved blanket coverage so relentless that nearly every other manufacturer took cover. Using clear, relatable USPs, a vast network of training staff, and powerful retail promotions, the S7 edge quickly dominated the shelf space and won the manufacturer advocates in-store and beyond.

Budget Phone of the Year

Alcatel Pop 4 A win that mirrors the company’s growing market share in the UK. Offering 4G, a surprisingly good camera and sleek design at an astonishingly low monthly price, retail staff love the Alcatel Pop 4 because for many customers it ticks all the boxes and leaves money in their pockets – leading to mega bundles and targetbusting store performance.

Three Honor 8 A great network exclusive identifies a consumer demand and then fills it. This is exactly what Three achieved with the Honor 8. Identifying that some younger customers expect flagship features but without the price tag, the Honor 8 brings top mobile photography and display technology to an audience that would have otherwise missed out.

Best Manufacturer Training Portal

Huawei Huawei n:gaged In less than a year, Huawei has built an industry-leading training portal from scratch, delivering staff clear, quick and attractive opportunities to win prizes in exchange for their time. Through sheer determination and spending power, Huawei n:gaged made incredible progress in 2016.

Find out more about every category and contestant at www.isellmobile.co.uk/awards

New: Best Retailer to Work For

EE Bolstered by high-profile wins on both the network and the retail side, EE overcame the uncertainty of the BT merger to win the praise of its staff for both its business culture and rewards. Multiple staff commented that they are ‘really proud of working for EE’, while others praised the opportunities for development and high rates of commission.

Phone of the Year

Samsung Galaxy S7 edge Featuring sleek curved-edge screen design with the functionality the Galaxy range is famous for, the S7 edge reintroduced fan favourite aspects such as removable memory, waterproofing and a powerful battery. Innovative tools for business users, for gamers, for mobile photographers and for standard users made the S7 edge not just the Samsung flagship, but the Android flagship as well. November 2016

An unusually hairy customer

Coffee break voucher winners! CONGRATULATIONS to this month’s coffee voucher winners, Julia Coulter from O2 Birkenhead, Annabelle from EE Croydon Northend and Carol Mcnally from the Three store in Grimsby! Each was nominated by a colleague for their hard work and for the support they provide to their colleagues. Lauren Slaven nominated Julia Coulter stating: ‘She

deserves one more than most of us, she has a “keeps a calm” mentality all the time, never failing to never let a customer down. Such a joy to work with and be around.’ Chris Wood nominated Carol McNally: ‘Carol has been working in our store for more than 20 years. She is always the first to cover shifts and help out; in Grimsby we always say: “you can always

count on nana Carol”.’ George Bacon nominated Annabelle and said: ‘She has achieved massive sales results by even coming in on her days off to help cover staff shortages and sicknesses. She has helped herself and the store to overperform while maintaining 100% customer satisfaction in her NPS scores. She is a true credit and inspiration to her team.’

WIN your team a coffee break!

Flank you very much O2

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.

November 2016

STAFF AT the Digital Phone Company in Norwich were surprised by a particularly small and hairy customer on 10 November. The ferret entered the Plumstead Road store before being apprehended by the store’s fast-acting staff. iSellMobile approached Digital Phone Company to enquire as to whether the animal was attracted by the company’s excellent range of tariffs, handsets and services. The retailer responded that they thought it possible, but also added: ‘No sale was made so we are reviewing our skill sets.’ Tough luck guys. The ferret was microchipped so was later reunited with its owner.

WIN!

FORMER ENGLAND Rugby coach and flanker Stuart Lancaster was obviously appreciative of both O2’s decision to renew its team sponsorship and its brilliant customer service after popping into the retailer’s Talk Direct franchise Headingly, West Yorkshire, store. Now coach of Leinster Rugby in Dublin, Stuart popped back to Headingly (he used to be a PE teacher near there), and took some quick snaps with the staff, and hopefully gave some scrum tips for Black Friday. www.mobiletoday.co.uk

Vodafone wins Product Mastermind 2016! For the first year in the competition’s history, Vodafone stormed its way to success in this year’s Product Mastermind – here’s how the team did it. Round 1 – Higher or lower? Following last year’s third-place finish, Vodafone started this year’s competition as the underdog, but it didn’t last long. The round saw each team work together to determine which of the pairs of cards shown had the higher spec. EE went first, and landed the top-level score you’d expect from the two-time champions, Three followed, faltering on a couple of questions, and finally team Vodafone, who delivered a real upset by tying for first place with EE.

Round 2 – Beat the experts In this round, each member of the team had to take on a panel of four industry experts; Nirave Godhia from Android Authority, Gareth Beavis and John McCann from TechRadar, and Sunetra Chakravarti from Mobile Choice. With points awarded for correct answers and taken away for wrong answers, it was all about accuracy. Vodafone went first and delivered a formidable performance, answering every question correctly, Three followed, having successes against the judges negated by a couple of wrong answers, and EE suffered much the same fate. By the end of round two it was Vodafone far in the lead, EE in second and Three going home in third place.

Round 3 – Head to head With just EE and Vodafone left, team members went head to head against a rival to answer one question each, with the opportunity to ‘steal’ if the opponent got their question wrong. EE managed to close the gap on

Vodafone, but was unable to capitalise and successfully steal points on some of the questions where Vodafone faltered. After all eight questions, the room went silent, with all audience eyes on the screen awaiting the winner announcement. Vodafone appeared and its supporters reacted with a room-filling yell of celebration that could only come from a victory made sweeter by a long struggle.

Meet the winners WING NG – London LIAM GOODMAN – Middlesbrough THOMAS BOWLING – Newbury HQ ISTVAN KISS – London

How did it feel to finally win Product Mastermind for Vodafone? Wing Ng: ‘It feels great, I’m very proud to represent the Vodafone brand. To win after EE’s back-to-back wins was incredible. My team was really proud, there was a lot of hand shaking! And it wasn’t just congratulations from Vodafone staff, but from manufacturers and other retailers as well. A great night. Liam Goodman: ‘It feels fantastic, Vodafone went in as the underdogs, we knew we went out last year against Three and EE, so we were buzzing even to get to the final two, so to win is a real achievement.’ Thomas Bowling: ‘It feels good, I’ve been on the team a few times and it’s fantastic to get the award we’ve chased every year. We’ve tried so many times and got so close, so to finally get there was fantastic.’

Was it a challenge? Liam Goodman: ‘It was a really good challenge, a lot tougher than I thought it was going to be, it really tests your product knowledge. The toughest round was taking on the panel of experts, because it’s testing your skills against those with the best device knowledge.’ Thomas Bowling: ‘I definitely found it to be a challenge, harder than I was anticipating. It’s completely different being up on stage to doing the earlier team stages online. The hardest was that final head to head, because you’re really on the spot and it’s all about what you know.’ Wing Ng: ‘It was a little bit nerve wracking, but once we got started the crowd was really into it, which made sure it was really enjoyable. Just like us, product knowledge is the experts’ day job, so to be put to the test in this way and to be able to match them was a proud moment for us.’

Any fighting talk for your competitors next year? Thomas Bowling: ‘Now we’re there, we’re not going to give the crown away easily, so you better fight hard if you want to take it from Vodafone in 2017.’ Wing Ng: ‘We’ve won it this year and we’re going to win it every year from now on.’ Liam Goodman: ‘EE should make the most of having won it two years in a row previously, because they’re not going to see it again for a very long time.’

www.mobiletoday.co.uk November 2016

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