EXECUTIVE SUMMARY · • Enhanced brand perception • Positive impact on digital inclusion EXECUTIVE SUMMARY Toll-free telephone calls are a well-known concept: customers can contact

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contents

Executive Summary ..................................................................................................................... 3

Introduction ................................................................................................................................... 4

Mobile Data: The Affordability Challenge ................................................................................. 5

How Can Sponsored Data Benefit Your Business? .................................................................... 7

Acesso Grátis Bradesco Celular: A Case Study ......................................................................... 14

The Challenge.............................................................................................................................. 15

Why Sponsored Data? ................................................................................................................. 16

The Solution ................................................................................................................................ 18

Business Results ........................................................................................................................... 18

Brazil: The Road Ahead ................................................................................................................. 20

Conclusion ..................................................................................................................................... 21

3All rights reserved © 2015 Frost & Sullivan

Sponsored Data: Connecting the Unconnected

SPONSORED DATA AND ITS IMPACT

Sponsored Data, also known as “1-800 Data,” enables mobile device users—even those on prepaid phones with no credit or those who cannot afford a mobile data plan—to use mobile services provided by businesses and governments free of charge. It is the mobile data equivalent of the toll-free telephone service, where a third party pays the mobile operator for the customer’s access to its mobile services.

Beyond end users, it provides tremendous benefits for enterprises and governments:

• Cost savings (e.g., creating incentives so customers access the best cost/benefit channels, cost-effective mobile marketing)

• Incremental revenue (e.g., from engaging new customer sets by providing free access to m-commerce sites, free service trials, and highly targeted m-advertising)

• Increased customer/citizen engagement (e.g., from broader constituencies and lower cost to serve)

• Enhanced brand perception

• Positive impact on digital inclusion

EXECUTIVE SUMMARY

Toll-free telephone calls are a well-known concept: customers can contact businesses free of charge, while the company receiving the call covers the communication costs. In today’s highly mobile, data-driven world, consumers everywhere place a high value1 on the time-saving and money-saving facilities mobile data technologies allow. This is especially true in emerging markets, where a mobile phone is often the only “connected” device they own.

Withthesevaluablebenefitsinmind,Bradesco,oneofBrazil’stopretailbanks,launched“Acesso Grátis Bradesco Celular” in March 2014, enabling clients to access their bank accounts from their smartphones without using uptheirmobiledatacaps.Bysponsoringclients’mobile-bankingdatause,Bradescowasabletoshiftmoreofits client’s interactions to Internet-based self-service and dramatically reduce cost per transaction, since mobile banking is significantly less costly than any other banking channel.At the same time, it increased customerengagement, as clients now execute many more transactions through mobile banking than any other channel.

Indeed, one year after launching its Sponsored Data offer, Bradesco mobile banking users have more than doubled, and transactions over the mobile channel have quadrupled. From practically non-existent in 2010, mobilehasbecomeBradesco’ssecond-mostusedaccesschannelandislikelytobecometheforemostoneasmobile service usage grows.

TheresultsofBradesco’scasearealsoparticularlyimpressivesince75%ofmobileusersinBrazilareonprepaidplans and consume very little, if any, mobile data on a regular basis. Consequently, their broad adoption of this service is remarkable, and the impact that “1-800 Data” can have on other consumer and citizen-facing services promises to be disruptive.

4 All rights reserved © 2015 Frost & Sullivan

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Moreover,thecustomersupportcostsavingsandgoodwillachievedbyBradescoarecompletelytransferrableacross industries, making its experience an iconic success strategy for others to follow. For businesses and governments in general, the benefits offered by mobile technology are clear. By allowing their customers,employees, partners and citizens to gain anytime/anywhere access to compelling mobile services, Sponsored Data helpsthesefirmsimproveproductivity,loweroperationalcosts,createnewrevenueopportunities,andincreasecustomersatisfactionandengagement.Asaresult,thesefirmsshouldexpeditiouslycontactwirelessoperatorsfor help deploying relevant Sponsored Data services and seizing these gains.

INTRODUCTION

No matter what industry you’re in, in today’s market it is imperative to go mobile. With global mobile subscribers growing at an annual compound rate of 12.4%2 and expected to reach 9 billion by 20203, more and more businesses are evolving to mobile-enabled business models, from taxi cabs to delivery services, distance learning to eGovernment, remote health monitoring to online purchases, and many others

Figure 1: Global Mobile Subscriber Growth in Developed and Developing Countries, 2005-2015.

1.0 B

1.2 B

2.2 B

5.3 B

7.1 B

3.9 B

5.6 B

1.4 B 1.5 B

12.4%

16.5%

4.3%

2005 2010 2015*

Developing

Developed

CAGR 2005–2015

Source: ITU World Telecommunication/ICT Indicators database

Since2005,themobilecarrierassociationGSMAhastrackedthegrowthofmobile-enabledservicesglobally.4 Fromamere100narrowlyfocusedservicesbasedonvoiceandSMSavailablein2005,by2013,theygrewtoover 1,200 diverse services, which leverage smartphone processing power and the mobile Internet. Health, education, emerging employment, and small business applications have seen particularly strong growth over the past three years, given the need from these segments to reach a wide audience. After all, in a world where



morethanhalfthepopulationstilldoesn’thaveaccesstoanInternetconnection,butover85%oftheworld’spopulation lives in range of a data cellular network,5and63%willhaveaccessto4GLTEmobilebroadbandservices by 2020,6 mobile presents itself as the best way to reach this audience.

Mobile Data: The Affordability Challenge

However, even with devices becoming more affordable, the cost of mobile data today is still a challenge for manypeople.While theUNBroadbandCommissionhas set a target forentry-level Internet accesspricedat less than5%ofGNI(GrossNational Income)percapita, this israrely thecase in low-incomecountries.Whereasindevelopedmarkets,mobilebroadbandpenetrationstoodat82%in2014,indevelopingnationsthisindexdropsto28%.7

Figure 2: Prepaid Handset-based (500MB) Mobile Broadband Prices as Percentage of GNI, 2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

Mob

ile B

road

band

Pen

etra

tion

DevelopingMarkets

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%

DevelopedMarkets

Mobile Broadband Price (% GNI per capita)

Source: ITU Measuring the Information Society Report 2014; ITU World Telecommunication/ICT Indicators database

For mobile subscribers in the developing world, where the vast majority are on low-cost, prepaid plans,8 devices come unsubsidized and every call minute and megabyte used is carefully tracked, as prices are higher and data capsarelowerthanforcontractplans.InMexico,forinstance,only5%ofprepaiduserssubscribetomobiledataservices,whereasamongpostpaidusers,mobilebroadbandpenetrationreaches70%.9AccordingtotheLatinAmericanDevelopmentBank,only20%ofLatinAmericanshaveaccesstomobilebroadbandconnections,andhalf still do not have any access to the network.

WhileuptakeformobilebroadbandserviceshasgrownrapidlyinLatinAmerica,penetrationisstilllowforaregionwheretherearemorecellphonesthanpeople.OnlyBrazil,Uruguay,ChileandCostaRicaregistermobilebroadbandpenetrationsabove30%,10as77%ofwirelessusersinLatinAmericaareprepaidsubscribers11.This is likelytoremainhighthrough2020,ataround75%ofthetotal.12


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• App developer: For appdevelopers, sponsoring thedata todownload anduse the app for thefirstfew times can stimulate adoption of a new product. Moreover, since developers are getting paid for the content, it may be viable and prudent for them to pay for content download on an ongoing basis. A Sponsored Data offer can also be an excellent marketing strategy, aiding discovery through positive word of mouth.

• In-company use: Companies with many remote workers can reduce the cost of supplying employees withamobileserviceandboostfieldforceproductivitybysponsoringaccesstotoolssuchasproductivityapps and the company website and Intranet.

Inalltheseapplications,businessesarelookingtoincreasetheefficiencyoftheiroperationsbyofferingmobileservices. Sponsored Data provides these businesses with a tool for driving the adoption of their mobile services, whichsignificantlyimprovescustomersatisfactionwithoutdemandingalargeinvestmentofmoney,timeoreffort.

Cost Savings

SponsoredData

Indian insurance company ICICI Prudential experienced difficulty increasing the adoption of its onlineapplicationsafterenablingitsfieldforcewithtablets,sinceworkershadinhibitionsduetothehighcostofdata.Ratherthanabsorbthefullcostofemployees’dataplans,ICICIPrudentialturnedtocarrierAirteltoprovideaSponsoredDatasolution.Bysponsoringemployees’work-relateddatause,thecompanymanagedtoboost access to its portal, with field force workers consuming over 15 GB-20 GB on their tablets, allowing them to access applications in real time and enhance their productivity. Given the success of the solution, ICICI Prudential has since started sponsoring mobile data access to its customer service apps as well.

InApril 2015,Airtel also expanded itsToll-FreeMobile Data offer to includeAirtel Zero, an easy-to-use platform aimed at mobile app developers looking to reduce marketing costs by as much as two-thirds, according to the carrier. Airtel informs its subscribers of the toll-free apps registered for Airtel Zero, which can be downloaded and accessed by users free of charge even at zero mobile balance.

Brazil’sBradesco bank also turned to Sponsored Data as a means to encourage clients to use its mobile banking services, for which the cost per transaction is a mere 5% that of in-person channels. A detailed account of this compelling Sponsored Data use case, the first to bring together four different carriers, ispresented in the next chapter.

Incremental revenue from engaging new customer sets

Developing a mobile service and sponsoring consumer access to it can vastly increase a company’s reach.

SponsoredInternet

Berniaga,Indonesia’sleadingonlineclassifiedsportal,partneredwithTelkomselinJune2014toofferthecarrier’scustomersthree-hour“freeInternet”passes.Thispromotedthewebsite,drovetraffictoit,andhelpedcreateapositiveassociationwiththebrand.Duringthecampaignperiod,88%oftheuserswhovisitedBerniaga’swebsite


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SponsoredInternet

Similarly, Chinese online retailer AlibabaannouncedinApril2015itwillbesellinglow-endsmartphoneswithits Taobao app pre-installed and four months of free data service (in association with long-time partner China Telecom), looking to boost its mobile commerce operations in smaller cities and rural areas.

While Amazon and Alibaba’s strategy was to drive their core businesses of digital content and physical product sales, Sponsored Data can also help enterprises expand beyond their core business. For hardware manufacturers, for instance, bundling free mobile data with their device can guarantee customer engagement beyond the initial purchase. Through Sponsored Data, these companies can add services or content to their producttocreateaturnkeyofferingandthenpotentiallybenefitfromarecurringrevenuestream.

For example, Hewlett-Packard began selling its own tablets with two years of free mobile data. The “Comes With Data” program was launched in Sweden, UK and Denmark in November 2013, aiming to encourage mobile data use on tablets and generate incremental revenue for itself. Usersgetupto250MBoffree,unrestricted 3G/4G data per month for two years (including international roaming in some cases). Users can also purchase extra data easily from the HP DataPass website or Windows/Android app on a pay-as-you-go basis, generating a new revenue stream for HP,18whileusersbenefit fromratesthatareoftencheaperthanregular prepaid data plans.

The success of this program led HP to expand the service to laptops and many other countries, such as Ireland, Austria, Italy, France, Germany, Spain, Switzerland, Netherlands, the US, Hong Kong and Singapore. The company has announced plans for the service in otherAsia Pacific countries, includingAustralia and India. Notably, the program has already attracted many previous Wi-Fi-only tablet users due to the tablets’ competitive prices (HP charges no premium for the wireless connectivity option) and their ease of use, since there is no need to sign up for a carrier plan. HP expects to see even greater adoption in coming years with the growthofLTE.

Enhanced Brand Perception

China Telecom is one of the most advanced carriers when it comes to Sponsored Data, offering third parties a platform (developed by AsiaInfo) for easily deploying Sponsored Data campaigns. The VerisO²P platform gives partners access to China Telecom’s APIs so they can integrate their offers to the carrier’s services, and has been especially popular with online retailers, who can reward customers for making a purchase or clicking on an ad withfreedata.Partnerscanchosewhethertosponsoraccesstoaspecificwebsiteorapp,oroffercustomersa free Web pass, which can also be used as currency to be redeemed for other awards or exchanged among mobile users. Since launching the platform in 2013, the Chinese carrier has deployed more than 200 offers forover50partnersincampaigns,suchasdownloadingapps,doingquizzes,andwatchingadsthroughChinaTelecom’s“gamified”app.

The carrier also zero-rates the downloading and use of Alibaba apps. The e-commerce giant has partnered with ChinaMobileandChinaUnicominthepast,offeringcustomersfreedatarewardsofupto2GBpermonth.


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InLatinAmerica,theinitiativehasalsobenefittedfromgovernmentbacking.Forexample,inColombia,theappincludes government services such as Instituto Colombiano para la Evaluación de la Educación, an education assessment service, and Agronet, a service that provides information on agriculture and rural development.

Despite its success, the project’s impact is limited as few carriers so far have been open to zero-rating Internet.org services. If governments wish to improve the reach of public services, Sponsored Data partnerships are key to engage wider carrier support.

eGov: HOW SPONSORED DATA HELPS PUBLIC SERVICES REACH EVERYONE

WithgovernmentsacrossLatinAmericaimplementingNationalBroadbandPlansanddeclaringuniversalbroadband access a key goal to drive the development of the region, it is a wonder that so few have advanced in the offering of eGovernment services. The existence of relevant and localized content and services has been shown to act as a key incentive for mobile broadband adoption. As public services compel people to adopt mobile broadband, the private sector will likely develop and offer services to meet the needs of new users, including poorer communities.

Sponsored Data can serve as an important tool for governments to serve these communities in an efficientandtimelymanner,wheretheywouldotherwisehavelimitedaccesstopublicservices.

eGov in Brazil

Despite99%ofthepopulationhavingmobilecoverage,in2013,only32%offederalandstategovernmentagenciesofferedmobileservicestocitizens.However,46%plannedtoincludemobileservicesin2014.The rapid growth in smartphone sales in the country over the past two years has also generated a boom in the development of innovative public service apps:

• SINESP Cidadão: mobile app with information on missing persons, wanted criminals and stolen vehicles.Launchedin2014,theapphasover4.6milliondownloadsonsmartphonesandtablets.

• Escola com Celular Program: development of school curriculum content for use on smartphones and tablets and aiming to spark debate between students, teachers, and the community on environment and sustainability.

• Alô Cidadão: communication tool of the town government of Chuí. Through the app, citizens can report emergencies and complaints using their ID, which are immediately sent to the relevant department.

The federal government is also studying the development of a mobile payment service to streamline the paymentofmonthlyBolsaFamíliainstallments,aprocessoftenmarredbylongqueuesinbanks.Oneofthelargestincometransferprogramsintheworld,BolsaFamíliabenefitsover70millionfamilieslivingbelowthepovertylineinBrazil.SponsoredDatacanincreaseefficiencyindeliveringpublicservicestocitizenswhowouldotherwisebeunabletoaffordamobilebroadbandconnection.Itmayalsoactasasignificantmarketing tool for mobile government services.



MorethanjustInternetaccess,thebenefitsofdigitalinclusionarisefromhowtheInternetisused.AccordingtotheWorldEconomicForum,anincreaseof10%inacountry’sdigitizationscore(whichmeasuresthemass

adoptionofconnecteddigitalservicesbyconsumers,enterprises,andgovernments)cangenerate0.75%growthinitsGDPpercapita.InLatinAmerica,mobilecontributiontoGDPisexpectedtoreach4.5%by2020.¹ºInthepastfiveyearsdigitalizationhasalreadycontributed4.3%totheregionalgrossdomesticproductandhasgeneratedover900,000jobs.DevelopmentBankofLatinAmerica,²º

Other similar initiatives looking to democratize access to information through free mobile data include Wikipedia Zero,whichzero-ratesaccesstoWikipediain59countrieswith67operators,providingfreemobileaccesstoinformation to about 400 million people around the world. Another example is that of Airtel Nigeria (also a Wikipedia Zero partner), which began offering zero-rated access to an Ebola information hotsite, ebolafacts.com, during the Ebola crisis in West Africa.com, during the Ebola crisis in West Africa.Other similar initiatives looking to democratize access to information through free mobile data include Wikipedia Zero, which zero-ratesaccesstoWikipediain59countrieswith67operators,providingfreemobileaccesstoinformationtoabout 400 million people around the world. Another example is that of Airtel Nigeria (also a Wikipedia Zero partner), which began offering zero-rated access to an Ebola information hotsite, ebolafacts.com, during the Ebola crisis in West Africa


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ACESSO GRÁTIS BRADESCO CELULAR: A CASE STUDY

InMarch2014,BradescoBanklaunchedBrazil’sfirstSponsoredDataoffer,“Acesso Grátis Bradesco Celular,” allowing its clients to access the bank’s mobile banking services free of charge over mobile broadband, in an agreement with the country’s top four wireless carriers.

Bradesco’sSponsoredDataprojectisattheforefrontoftheevolutionofbankingandfinancialservicesinthemobileageandfollowsalongtraditionofbankinginnovation.BradescowasthefirstLatinAmericancompanytoacquireacomputerandthefirsttolaunchcreditcardsinBrazilbackinthe1960s.ThebankwasalsothefirsttolaunchInternetbankingservicesinLatinAmericain1996,launchedasponsoredInternetbankingofferin1999,andispoisedtobecomethefirstinLatinAmericawithanappfortheApplewatch.

BRADESCO: COMPANY PROFILE

Foundedin1943,thecompanyhasbecomeoneofBrazil’slargestbanksintotalassets,andistheonlyprivate sector institution to reach every single town in the country. Bradesco believes in being close to the customer, giving the bank a key advantage in its understanding of the country’s economically active regions, to better assess and limit loan risks, and to better serve the needs of its customers.

Through anextensivebranch and servicenetworkofover75,000 customer servicepoints,BradescooffersawidearrayofbankingandfinancialproductsandservicesinBrazilandabroadtoindividualsandcompanies of all sizes. Such products include loans, advances, deposit-taking, credit card issuance, purchasing consortiums, insurance, leasing, payment collection and processing, pension plans, asset management and brokerage services.

Bradesco in numbers

• 26.5 million current accounts

• 59.1 million savings accounts

• 46.9 million insurance clients

• R$ 15.3 (US$5.09)21billioninnetprofits

• R$ 1.032 (US$ 0.34) trillion in total assets

• R$ 81.5 (US$27.13)billioninnetassets

• R$ 4.9 (US$1.63) billion invested in infrastructure, IT and telecommunications

• 75,176 customer service points, including:

– 4,659 branches

– 3,486 service branches

– 50,006 “Bradesco Expresso” bankingcorrespondent units

– 31.089BradescoDia&NoiteATMs

– 17.593Banco24HorasATMs

– 13Branchesandsubsidiariesabroad

*Data as of 2014



The Challenge

Inaworldwhereover2.5billionpeoplehavenoaccesstoatraditionalbank,but40%ofthemhaveaccessto a mobile phone,22offering mobile banking services is key to driving financial inclusion of this large unbanked population.

InBrazil,therehasbeensignificantgrowthinfinancialinclusion;accordingtotheWorldBank’sGlobalFindex2014report,accountownershipinBrazilhasincreasedfrom56%in2011to68%in2014.23 This is largely due toBrazil’sinnovativesolutionof“bankingcorrespondents,”aprogramapprovedbytheCentralBankin1999toallowtheuseof lotteryoutlets,postofficesandsmallretailers todistributefinancialproducts inplacestoosmallforbankbranches,eliminatingseveralentrybarriersforfinancialservicesinremotelocations.Thesebankingcorrespondentsrepresentnearlytwo-thirdsofBradesco’scustomerservicenetwork.

With1.4mobilelinesperpersoninBraziland92.4%ofthepopulationcoveredbya3Gmobilebroadbandnetwork,24 mobile banking services have emerged as a way to bridge the remaining gap between customers and banks. They help eliminate the burden of walking several miles into town for simple transactions such as reviewing bank statements, paying bills, and even receiving money.

Thiseaseof accessmayalsohelpbring in the remaining32%ofBraziliansover15yearsoldwhoare stillunbanked, many of whom are informal workers who rely on cash payments. In many developing markets around theworldwithlowfinancialinclusionrates,mobilemoneyservicesareemergingasanalternativetocashforthose who don’t have access to bank accounts and debit cards.

Asthegraphbelowshows,themajorityoftransactionsoperatedbyBrazilianbanksarenon-financial,suchaschecking bank statements. Financial transactions, however, are still done mainly at physical channels such as branches and ATMs, despite the growth of alternative payment options to cash, such as credit and debit cards, direct billing, money transfers and e-wallet services.

Figure 4: Average Monthly Transactions per Current Account, Brazil, 2009 and 2013

2.94.2

0.90.1

1.00.1 3.0

0.8

2.3

0.83.6

3.7

3.8

3.8

<0.1 <0.1

1.8 <0.1<0.1 <0.1

1.21.8

5.6

2.5

10.5

2009 2013

Point-of-Sale

2009 2013

BankingCorrespondent

2009 2013

Branch

2009 2013

ATM

2009 2013

InternetBanking

2009 2013

MobileBanking

2009 2013

ContactCenter

45%

10%

-18%

4%

81%Non-financial Transaction

Financial Transaction

Source: Pesquisa Febraban de Tecnologia Bancária - 2013


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Theeaseof accessof remotechannels tobanking informationhas led to a significant increase in the totalnumberoftransactions.Forbanks,thishasasignificantimpact,asitincreasestheengagementofcustomersandreducesthetimecustomersspendinqueues.Italsosignificantlylowersthecostpertransactionasnotedbelowfor Internet banking and even more so for mobile banking.

Figure 5: Cost per Transaction per Channel

Branch CallCenter

ATMDeposit

ATMWithdrawl

InteractiveVoice Response

InternetBanking

MobileBanking

$2.50

$1.75

$0.25 $0.25 $0.20 $0.08

$4.25

Source: Diebold and Bain, 2010, “Customer loyalty in retail banking”

Therefore,acceleratingthemigrationofmorecomplexfinancialservicessuchastransfers,paymentsandcreditdealstomobilebankingcannotonly increaseengagementanduseofbankingservices,butalsosignificantlyreduce the cost ofmany day-to-day operations. Between 2008 and 2012, Brazilian banks reduced cost pertransactionby17%,mainlyduetotheriseinInternetbankinguseduringtheperiod.25

The use of digital banking channels such as Internet banking and mobile banking also increased the “virtualization” offinancialtransactionsamongusersoncetheybecomeaccustomedtomakingnon-financialtransactionsonline.Whereasin2009thenumberofphysicalwithdrawalsregisteredbyBrazilianbankswasthesameasthenumberof point-of-sale card payments, by 2013 PoS payments became more common than withdrawals.26

However,despitesmartphonesalesboominginBrazil,and41%ofmobileusersonmobilebroadband,only7%of mobile subscribers use mobile banking services.27 Although this is partly due to many mobile users being unbanked,bankshavealsoencounteredacertainresistance fromusers,as75%ofmobile lines inBrazilareprepaid,28 and these cost-conscious users prefer to keep their limited mobile broadband plans for Internet access,emailandsocialnetworks,usedby41%ofmobilesubscribers.

Why Sponsored Data?

Bradesco chose to sponsor clients’ data use in order to accelerate the adoption ofmobile banking by itscustomers.Before theSponsoredData servicewas launched,only10%ofBradescoclientsused itsmobilebanking services.29


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For clients, not only is mobile banking more convenient, but often a more secure alternative to ATMs, as smartphones need a greater number of passwords, are less likely to be meddled with, and don’t involve cash transactions.

The free service also helps reduce the need for mobile access to its toll-free contact center by giving mobile users another toll-free option.

The Solution

BradescobeganofferingaccesstomobilebankingservicesfreeofchargeinMarch2014,inapartnershipwithBrazil’sfour-largestmobilecarriers:Vivo,Claro,TIM,andOi,whichrepresent98%ofmobilesubscribersinBrazil.

With “Acesso Grátis Bradesco Celular,”Bradescoclientscanaccessover180bankingserviceswithoutusingup their personal mobile data caps. Users can view their account balance, check bank statements, transfer funds, pay bills, deposit cheques, view security tokens, top up their prepaid mobile credits, check stocks and other investments, and even apply for a bank loan, among other services. All this is available through several different customized apps—from basic current account holders to investors and businesses—as well as the bank’s online banking website, adapted for mobile.

Virtual versus Physical Services

These apps include several virtual options for physical financial transactions, which offer clients greaterconvenience.For instance, tomakeadepositvia smartphone,aBradescoclientmaycapture thechequebycameraphoneviatheBradescoapplication.Thecompensationperiodisthesameasthephysicaldeposit,andthe deposit can be tracked immediately in the client’s account statement. Other services that would generally involve direct contact with bank managers, such as applying for insurance or a bank loan, can also be done through the m-banking service.

Building Awareness

Awareness for the toll-free offer was created in part by over 3,000 “Mobile Ambassadors” who were equipped withiPadstointeractwithcustomersatbankbranches,teachingclientshowtouseBradesco’sdigitalchannels.The bank also invested in marketing on social media, making a strong impact on digital users most aware of the benefitsoftheservice,aswellasdistributingnotesinbrancheswithinformationontheSponsoredDataoffer.

Inordertofurtherdrivetheadoptionofitsbankingapps,BradescoisopeningWi-Fitoclientsinbranchessothey can download the application while waiting in line.

Flexible, Economical Billing for Sponsored Data

Leveragingthecarriers’flexiblebillingcapabilities,Bradescopaysafixedmonthlypriceforsponsoringallusers’data,irrespectiveoffluctuationsindatatraffictoBradescoserviceseachmonth.Thisallowsthebanktobettercontrol costs.

Business Results

In the month following the launch of “Acesso Grátis Bradesco Celular,”newusersofBradesco’smobilebanking services doubled to 400,000 from the 200,000 new users registered in March 2014. Since then, the monthlyaveragefornewusershasremainedhigh,at350,000,asthefreeaccessmarketinghelpedbringmoreandmoreBradescoclientstomobilebanking.



InthewakeofBradesco’ssuccesswiththemodel,directsalescosmeticsmanufacturerNaturaisalsostudyingthe use of Sponsored Data to provide online catalogs and access to its m-commerce portal to over 1.6 million consultants,reducingcostsandmakingcommunicationandsalesmoreefficientthroughmobile-enabledservices.

CONCLUSION

Forbusinessesandgovernmentsoverall,thebenefitsofSponsoredDataareclear.Byallowingtheircustomers,employees, partners and citizens to gain anytime/anywhere access to compelling mobile services, it helps these firmsimproveproductivity,loweroperationalcosts,createnewrevenueopportunities,andincreasecustomersatisfactionandengagement.Asaresult,thesefirmsshouldexpeditiouslycontactwirelessoperatorsandmulti-carrier brokers for help in deploying relevant Sponsored Data services and seizing these gains, as well as companies like Qualcomm, which help bring ecosystem partners together to realize these gains.

This paper was developed by Frost & Sullivan with Qualcomm assistance and funding. This report may utilize information, including publicly available data, provided by various companies and sources, including Qualcomm.

ENDNOTES

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1. InBrazil,usersvaluethebenefitsofmobiletechnologies(3Gonly)at20%ofaverageincome,accordingtoareportbytheBoston Consulting Group.

2. ITU World Telecommunication/ICT Indicators database

3. GSMAGlobalMobileEconomyReport2015

4. GSMA,“FinancingInnovation,”July2014.Thefulllistofservicesmaybefoundathttp://www.m4dimpact.com/data/products-services

5. GSMADigitalInclusionReport2014

6. GSMAGlobalMobileEconomyReport2015

7. ITU World Telecommunication/ICT Indicators database

8. “OfallcountriesincludedintheIDI,some57percenthavemorethan80percentprepaidsubscriptions,”ITUMeasuringthe InformationSocietyReport2014.

9. Camargo,Radamés.“EvolucióndelaBandaAnchaMóvilenMéxico.”

10. ITU World Telecommunication/ICT Indicators database, 2014 estimate.

11. Frost&Sullivan,LatinAmericaMobileServicesMarketsOutlook,2014

12. GSMATheMobileEconomy2014LatinAmerica

13. SandvineGLOBALINTERNETPHENOMENAREPORT2H2014


15. GSMADigitalInclusionReport2014

16. Fabernovel, 2013

17. Goodreader.com,MorganStanleyResearch

18. Revenuesfromextradataissharedwithpartners,suchasSwedishborderlessmobileconnectivitycarrierFoggMobile, which provides the universal SIM cards and the app that enables users to monitor data usage, upgrade their data plan and view account history.


20. DevelopmentBankofLatinAmerica,DigitalInclusion:Thekeytoprogress

21. R$1=US$0.33290BRL/USDforthe24-hourperiodendingMonday,May11,2015,22:00UTC@+/-0%

22. GSMA State of the Industry 2014: Mobile Financial Services for the Unbanked

23. WorldBank’sGlobalFindex2014

24. Anatel,March2015

25. PesquisaFebrabandeTecnologiaBancária-2012



28. Anatel,June2015

29. BradescoPRvideo:CelularrevolucionarelacionamentodoclientecomoBradesco

30. May2014:presentationatTelaVivaMóvel;May2015:presentationatCIAB

31. AccountaccessapplicationsdevelopedforiOS(iPhoneandiPad),Android,BlackBerry,WindowsPhoneandJava

32. GSMA The Mobile

Documents

EXECUTIVE SUMMARY · • Enhanced brand perception • Positive impact on digital inclusion EXECUTIVE SUMMARY Toll-free telephone calls are a well-known concept: customers can contact