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A Request for Proposal for Mobile Services & Applications Consumer India, Indonesia, and Thailand

Table of Contents
Proposed Tendering Schedule.........................................................................................................3 1.1 Background ..........................................................................................................................4 1.2 Objectives ............................................................................................................................6 1.3 Research methodology & sample design requirements.........................................................9 1.3.1 Non-urban......................................................................................................................9 1.3.2 Urban...........................................................................................................................11 1.4 Planned Analysis.................................................................................................................13 1.5 Logistics..............................................................................................................................15 1.6 Deliverables .......................................................................................................................15 1.7 Agreement Terms and Conditions.......................................................................................16 1.8 Critical Success Factors......................................................................................................16 1.9 Proposal Requirements .......................................................................................................17 1.9.1 Cost Estimate ..............................................................................................................17 1.9.2 Project team.................................................................................................................18 1.9.3 Project time frame estimate..........................................................................................19 1.9.4 Methodology................................................................................................................19 1.9.5 Deliverables.................................................................................................................20 1.9.6 Agreement....................................................................................................................20

Proposed Tendering Schedule

ACTIVITY Release of Request for Proposal Requests for Additional Information Due Proposal Due Interview short listed vendors Supplier Selection Effective Date / Kick-off

DATE

1.1 Background
Access to mobile services and applications can improve economics and standards of living in developing countries. Countries such as India, Indonesia, and Thailand represent a variety of scenarios that can provide insight into different opportunities in the Asia-Pacific region. All three countries tend to have low GDP per capita, however, their mobile penetration stage is varied. Thailand reflects a moderately high mobile penetration rate of 70% with mobile revenue CAGR of 7% for the period 2010-2015. India and Indonesia have lower penetration rates (less than half of the population) with mobile revenue CAGR of 11-12% for the period 2010-2015. Analysis of India offers insights into one of the largest markets in the region both in population numbers and absolute revenues. Service providers can pursue growth opportunities for new mobile users in the lower income strata and/or less urbanized geographies for each of these markets.
Mobile Penetration of Population 2010 (Estimate) 2015 (Estimate ) 69% 70% Total Mobile Revenues ($US M) 2010 2015 (Estimate (Estimate ) ) $29,094 $51,713 $9,021 $15,154 $5,493 $7,554
Revenue CAGR (2010-2015)

India 49% Indonesi 47% a Thailand 70% 77% Source: Pyramid, December 2010

12% 11% 7%

Mobility penetration tends to be highest in urban areas, as these areas are typically first addressed by service providers. Urban end-users have had a longer opportunity to integrate mobile phone usage into their daily lives. For such users, mobile is multi-purpose gadget - a communication device, entertainment tool, utility provider. For the non-urban user, mobile access and services can provide a window to the world where they can access content and services from the convenience of a mobile device, e.g., information on weather, purchase and trade crops, receive healthcare advice, interact with government offices, and access financial services (IMRB, 2010).
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The objective of the research is to understand the usage and behaviors of current and emerging users of mobile services and applications in India, Indonesia, and Thailand. The proposed approach is an ethnographic research study that will allow observations to be translated into key insights, customized to each local market. The goal is to profile current users, and for current users and future users to determine drivers and barriers to uptake of mobile-enabled-services, and to identify key segments and associated value propositions for each of these segments. Output from this study should support development of service providers go-to-market strategies to grow their customer base and profitably increase usage of mobile services. The approach will be to study urban and non-urban communities separately and then to integrate the findings from the research to assess how mobile access and usage improves daily life of rural dwellers and can drive closure of the digital gap between end-users living in rural communities and those living in urbanized areas.

1.2 Objectives
The purpose of this research project is to profile existing usage and behaviours of mobile services in India, Indonesia, and Thailand, and to assess and quantify future demand by existing and emerging endusers. Key objectives - non-urban areas:

Profile any current communications/entertainment services used: service provider name and technology access for landline, mobile, Internet access technology, and TV service. Create detailed profiling on any mobile usage: applications used, patterns of usage, spend, payment method, service provider, access technology, device(s) including multi-SIM behaviours and SIM card sharing behaviours. Determine demand for key mobile services and applications designed for the rural community (e.g., mAgriculture, mWomen, mHealth, mFinance and mEducation). Profile potential demand patterns for services and applications who would use, how, where, frequency of use. Who derives the benefit of using these applications (cascading of information or benefit to family, community, etc.) What is the actual utility value of these applications e.g., improves productivity, provides banking capabilities, replaces cash, provides healthcare monitoring and counseling, provide access to trading counterparts. Determine pricing thresholds for service affordability including acquisition of device. Create relative scale of other household purchases to understand where mobile services must be priced in order for head of households to consider mobile service acquisition a feasible purchase decision. Assess payment preferences and receptivity to different pricing options, including dynamic pricing. Investigate drivers and barriers to service adoption. Determine options for overcoming barriers. Determine high-level end-user segmentation scheme for mobile services and applications. Craft segment--specific offers and preferred payment method for these target segments.
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Key objectives - urban areas:

Profile current communications/entertainment services used: service

provider name and technology access for landline, mobile, Internet access technology, and TV service. Create detailed profiling on mobile usage: applications used, patterns of usage, spend, payment method, service provider, access technology, device(s) including multi-SIM behaviours and SIM card sharing behaviours.
Identify which services and specific applications are they using,

AND how consumers are using their mobile services to communicate, to conduct business, to gain information, to pay for services, to make decisions, to stay in touch, etc. How has mobile services changed the way these activities are performed? What is the actual utility value of a mobile application to an end-user? For example, can mobile money transfer serve as a substitute banking service to consumers who do not have a banking account? What are end-users able to do more with mobile Internet access?
Investigate drivers and barriers to service adoption. Determine

options for overcoming barriers. Assess payment preferences and receptivity to different pricing options, including dynamic pricing.
Apply a cluster analysis approach to an end-user segmentation

scheme for mobile services and applications.

Execute an adaptive choice based conjoint analysis design or other

suitable quantitative methodology to determine segment--specific offers and preferred payment method for these target segments (analyze by current users versus intended users).

1.3 Research methodology & sample design requirements

We would like to receive feedback on the ethnographic capabilities of the research supplier, particularly how observations are captured and analyzed. 1.3.1 Non-urban Sample non-urban: The sample should be drawn from areas with lower density population areas. (Locations will be determined in collaboration with supplier.)

50% of the sample would be current mobile phone users who are responsible for, or share influence in, the acquisition of mobile service. 50% of the sample (non mobile phone households) who are responsible for or share influence in decision making for household purchases.

SEC codes to be determined in collaboration with supplier.

Methodology non-urban: Based upon the countries identified, the research supplier should provide their recommendation on a methodology (or methodologies) in detail. The expertise and experience in ethnography-based research will be a key factor in the vendor selection process for this study. We expect the vendor to recommend the research methodology(ies) to address this market. We expect the vendor to take an active consulting role in helping us come up with the descriptions of any concepts tested and the method of presenting them to the respondents in a compelling and clear fashion. We also request the supplier provide their recommendations on the locations for the non-urban research. Please include details on
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geographic locations and capabilities/features available at each location, including real-time translation support, etc.

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1.3.2 Urban Sample urban: The sample should be nationally representative.

75% of the sample would be current mobile phone users who are responsible for, or share influence in, the acquisition of mobile service. 25% of the sample would be non mobile-users who are responsible for, or share influence in decision making for household purchases.

SEC codes to be determined in collaboration with supplier. Methodology urban: In the urban area it is anticipated that it will be feasible to execute a more detailed research approach. We propose a two-phased research approach with a qualitative phase followed by a quantitative phase executed online, by CAPI (Computer Assisted Personal Interviewing), or pen and paper. The research supplier should provide their recommendation on a methodology (or methodologies) in detail. The expertise and experience in ethnography-based research will be a key factor in the vendor selection process for this study. We expect the vendor to take an active consulting role in helping us come up with the descriptions of any concepts tested and the method of presenting them to the respondents in a compelling and clear fashion. We also request the supplier provide their recommendations on the locations for the urban research. Please include details on geographic locations and capabilities/features available at each location, including real-time translation support, etc. Respondents should not be aware that Alcatel-Lucent is the sponsor of the study. The sample should be nationally representative.
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Note: we expect age and gender questions to be included as part of the screener. We will also expect the supplier to be able to provide estimates on the proportion of consumers in each country represented via the total sample screener. The sample should have sufficient representation in the following segment to make valid statistical inferences: Age (15-22, 23-40, 41-55, 56+); Household Income (ranging from low to high-income based upon norms for each country); Urban/suburban/rural.

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1.4 Planned Analysis

The analysis should answer the following questions:

Awareness of and current use of existing communications services and devices. Determine drivers and barriers to uptake and use of mobile services and applications adoption. The ethnographic research insights will be key to exploring behaviours and needs of consumers that could be addressed by mobile services. We need to understand the motivations and decision-making process employed by end-users and emerging end-users. Identify preferences regarding service providers and factors that influence service provider loyalty. Determine consumer segmentation scheme for mobile services and applications. Determine customized offers and preferred payment method for these target segments. Determine the relative appeal of each feature in an offer and be able to construct the offer packages with the greatest preference. Determine the demand/price relationship for the most preferred offer packages against potential packages in the competitive marketplace. Determine the optimal number of features to be included in a preferred package. Develop segmentation scheme with homogeneous preferences for segment-specific offers. Quantification and projection of the results of the study to each countrys population.

The list of questions to be answered by the study is likely to evolve in the process of the study to fulfill the objectives stated in the previous section. Note: The data from this study will be applied by Alcatel-Lucents business modeling team to complete subscriber and revenue forecasting. The supplier should specify in the methodology section how they plan to ensure that the results are applicable to the target population. Analysis and Reports:

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A detailed report of the results will be required for each country and then an additional report will be required for the three countries combined.

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1.5 Logistics
We expect at least twice weekly interactions with the supplier team throughout the course of this project (more frequently when needed). We expect that the work on the deliverables (specifically, documenting the methodology and assumptions, structuring the presentation) will start as soon as the survey has been designed (while the survey is being fielded) The supplier team must work in close collaboration with the AlcatelLucent team on all aspects of the study, including study design, structuring the analysis and the deliverables and reviewing the drafts of the deliverables. Specifically, the survey must be approved by Alcatel-Lucent prior to going into the field and questions that are not approved may not be inserted into the survey Weighting methodologies and forecasting methodologies and all their assumptions need to be documented and presented to Alcatel-Lucent for discussion and approval prior to being applied

1.6 Deliverables
The following deliverables are required as part of this project:

PowerPoint presentation of quantitative results, including findings and recommendations on areas for ALU to focus our marketing efforts as it relates to the proposed concepts being tested. o Note: Alcatel-Lucent will supply the template to be used to format the presentation. The supplier should plan on providing English and in-country translation of all focus group materials, recordings, and respondent feedback received. A final report in Microsoft Word format that describes the findings/recommendations of the quantitative research. This report should provide insight into the market for these services. A vendor presentation of the final results via conference call and if needed a vendor presentation at the location of AlcatelLucents choosing. Study data
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o Final versions of the surveys used in the study o Raw survey response data in the form of an .mdd and SPSS file o All the tables and charts that end up being included in the final presentation should be supplied in the form of Excel tables and Excel charts with clear labeling o Data cuts (cross-tabulations) requested by Alcatel-Lucent in Excel format. o Conjoint simulator and associated utilities files. See attached for data file structure.

1.7 Agreement Terms and Conditions

Alcatel-Lucent shall assume that the enclosed terms and conditions (embedded document) are acceptable to you unless you indicate otherwise in your proposal. If there are no exceptions indicated in your response, there will be no negotiation should you be awarded an Agreement. Alcatel-Lucent reserved the right to modify the Agreements and both parties shall have the right to approve such further changes.

1.8 Critical Success Factors

Critical success factors in this project are as follows:

Experienced supplier team who are experts in the subject matter. Dedicated point of contact consistently devoting time and attention to the project and communicating milestones back to the ALU team. Supplier staff has to have strong skills in synthesizing material into presentation format. Supplier must be good at setting realistic timelines for projects and then meeting them

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Strong consumer and enterprise panels that will allow meeting the sample size and structure requirements

1.9 Proposal Requirements

1.9.1 Cost Estimate

Pricing detail should If supplier plans to use sub-contractors, the cost of this should be included in the cost estimate and should be billed by the supplier to Alcatel-Lucent (as opposed to having the sub-contractors bill Alcatel-Lucent) Some cost components may be variable costs. For all such costs the response should include an estimate of the each cost component under a reasonable set of assumptions and specification of the assumptions made (e.g., for travel cost assumption of the number and duration of trips)

Detailed pricing should be provided. Please segment the costs within each country by research phase. o Pricing should be provided on an individual and combined country basis. Within each country, pricing should be provided on a phased approach basis, i.e., separating the cost for qualitative from quantitative.
If the primary research supplier considers the size and composition of the respondents outlined in the sample design requirements to be sub-optimal for the objectives of the study, we would welcome an alternative proposal. However, in such a case the response to this RFP should include two cost estimates: one covering the sample design population outlined in this document (so that we can make apples to apples comparison of the proposals we receive from different suppliers) and another based on the alternative proposed by the vendor. Please include pricing for any required translation.

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1.9.2 Project team Because of the need to complete the project in a timely fashion, the team assigned should be highly experience with primary research in the context of telecommunications services Please list the proposed team members and include the following information about each member: Name, title Role in the project o Including explicitly specifying whether this person will be a core member working on the project continuously, or be only available for occasional consultations or for a specific step of the work Experience with telecommunications services market o Enterprise market o Consumer market o Home entertainment specifically Relevant primary market research experience Also, for the project team, please specify: Do any members have recent (last 24 months) experience with conducting projects for Alcatel-Lucent? Please provide dates of the projects, whether they were for Alcatel-Lucent, types of projects and contact information within Alcatel-Lucent for people who can serve as references Please specify who will be the key contact staff responsible for the success of the entire project and how much will they be involved in the day-to-day work

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1.9.3 Project time frame estimate Note: the study needs to be conducted in a very timely manner. Please advise on date you will be able to provide topline results, and date for final presentation results for Phase 1. Proposals will be judged on the time frame, as well as on the price and quality. Project time frame estimate with completion dates for all the major milestones, including: Initial drafts of the survey (make sure to provide a few days for intensive interaction with Alcatel-Lucent team to finalize the surveys) Surveys go into the field Methodology of the study (including assumptions and methodology for market sizing) documented Field data ready for analysis Initial analysis completed, first presentation of results o Make sure to provide a few days for intensive interaction with Alcatel-Lucent team to prepare the presentation of the results Final presentation of results All the deliverables completed and delivered to ALU (including all data files) Data files should be available preferably in .mdd format. Otherwise, SPSS data files in .sav format. 1.9.4 Methodology Methodology section should specifically acknowledge the size and composition of the sample and how the supplier plans to meet these requirements. Methodology section should include the following

Specify sources from which the survey respondents will be drawn. Please provide descriptions for consumer market. If you plan to rely on external panel vendors, please specify who they are and how much recent (last 24 months) experience your company has with these panel vendors. If the primary research supplier considers the proposed methodology to be sub-optimal for the objectives of the study, we would welcome an alternative proposal. However, in such a case the response to this RFP should include two cost estimates:
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one covering the methodology outlined in this document (so that we can make apples to apples comparison of the proposals we receive from different suppliers) and another based on the alternative proposed by the vendor.

1.9.5 Deliverables This section should include the complete list of the deliverables copied from the RFP and should specify whether or not the supplier expects to be able to meet each of these deliverables. 1.9.6 Agreement Please refer to the Agreement provided (embedded above in section 1.7) and address concerns/questions/changes.

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