TME Pricing Strategies for Mobile Broadband ServicesCapgemini
Innovative mobile broadband services pricing strategies for telcos
As portable devices and social networking services become more widespread, telcos have the opportunity to improve their customer engagement by developing end-to-end digital sales and service strategies. But that requires a full transformation of systems and business operations. Robust analysis tools will play a key role, with growing volumes of valuable data on the behavioral and demographic patterns of customers.
A successful digital transformation, including network-facing operations, will lead to better customer relationships, new revenue streams, and more streamlined processes. This whitepaper examines how operators can fully exploit digital channels and business analytics tools, outlining the benefits as well as the key challenges they face.
TME Pricing Strategies for Mobile Broadband ServicesCapgemini
Innovative mobile broadband services pricing strategies for telcos
As portable devices and social networking services become more widespread, telcos have the opportunity to improve their customer engagement by developing end-to-end digital sales and service strategies. But that requires a full transformation of systems and business operations. Robust analysis tools will play a key role, with growing volumes of valuable data on the behavioral and demographic patterns of customers.
A successful digital transformation, including network-facing operations, will lead to better customer relationships, new revenue streams, and more streamlined processes. This whitepaper examines how operators can fully exploit digital channels and business analytics tools, outlining the benefits as well as the key challenges they face.
An overview on Grameenphone, the largest mobile phone operator in Bangladesh. Grameenphone or GP is also the first GSM Technology introducer in Bangladesh.
I am not putting any restrictions on this PPT. But, it will be very great, if you acknowledge my work. It will cost nothing. And, of course you can appreciate my work :) .Surprisingly, it also costs NOTHING. Happy to help you :)
I tried to acknowledge everything ,(not usually cut,copy and paste and then forgetting..) that helped me to make this ppt. May be why I ended up with a job in a research co. because of this.
An overview on Grameenphone, the largest mobile phone operator in Bangladesh. Grameenphone or GP is also the first GSM Technology introducer in Bangladesh.
I am not putting any restrictions on this PPT. But, it will be very great, if you acknowledge my work. It will cost nothing. And, of course you can appreciate my work :) .Surprisingly, it also costs NOTHING. Happy to help you :)
I tried to acknowledge everything ,(not usually cut,copy and paste and then forgetting..) that helped me to make this ppt. May be why I ended up with a job in a research co. because of this.
January 2015 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
About Us
Our Team
INDUSTRY ANALYSIS : Telecom Industry
COMPANY ANALYSIS : Idea Cellular
BRAND ANALYSIS : Nike
Event Report
Concept of the month
Its the explanation about the joint venture of NTT Docomo and Tata teleservice ltd and their achievements and future strategy to be implemented for its growth in highly technological driven market of Telecom industry. and regarding the Mergers and Acquisition in telecom industry.
2. Presented to: Mohammad Aktaruzzaman Khan
Associate Professor
DBA,IIUC
Presented By: Md. Sadi Hassan (B-111120)
Mohammed Ali Azam (B-111015)
K. M. Nabil Masrur (B-113001)
Kawser Ahmed (B-111082)
3. Bangladesh is a country which is densely populated
and also is a flat and easily extendable coverage. The
infrastructure and Tele-density is low which on the
other hand has made the market a perfect place for
telecom business. The demand is very high and the
consumer base is very large but the investment is
low because of the topographic lay-out. With
significant reductions in tariff levels, Bangladesh is
now one of the world’s fastest growing
telecommunications markets with a tele-density of
approximately 30 percent.
4. Porter’s competitive force
• A Competitive advantage is a company’s
ability to perform in one or more ways that
competitors cannot or will not match.
Michael Porter urged companies to build a
sustainable competitive advantage (Porter,
1980).A company that hopes to endure must
be in the business of continuously inventing
new advantages by strategy innovation.
Strategy innovation is shifting a corporation’s
business strategy in order to create new
value for both the customer and the
corporation . As no strategy lasts forever so
company must keep going on initiating
strategy innovation and thus gain a
competitive advantage.
5. The liberalization of Bangladesh’s telecommunications sector
began with small steps in 1989 with the issuance of a license to a
private operator for the provision of inter alia cellular mobile services
to compete with the previous monopoly provider of
telecommunications services the Bangladesh Telegraph and
Telephone Board (BTTB). Significant changes in the number of fixed
and mobile services deployed in Bangladesh occurred in the late
1990s and the number of services in operation have subsequently
grown exponentially in the past years. The incentives both from
government and public sectors have helped to grow this sector . It is
now one of the biggest sector of Bangladesh. As a populous country,
it's huge market has attracted many foreign investors to invest in this
sector .
First mobile operator got license in 1989 named Sheba Telecom
to operate telephone exchange in 199 upazillas (sub-district). After
that there were five more operators got license over the period
between 1989 and 2007 to do mobile business in Bangladesh named
Pacific Bangladesh Telephone Limited/citycell (1989), GrameenPhone
and Telecom Malaysia International Bangladesh (1996), Government
owned cellular mobile (2004) and Warid Telecom International LLC
(2007)
6. Competitive forces
Traditional competitors:
Always nipping at heals with new products & services trying to still the
customer
Example:
The following figure illustrates the competition of the operators with
their traditional competitors
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
BL CC GP ROBI TT AT
Market Growth Rate
YR-08 YR-09 YR-10 YR-11 YR-12
7. Competitive forces
New market entrants:
Not constrained by traditional ways of producing
goods and services; they can easily jump into
market and lure customers away with cheaper or
better products and services.
Example:
On 12 January 2010 When Bharti-Airtel announced
that it had agreed to buy a 70 percent stake of Warid
Telecom in a deal that could total $1 billion then on 09
February , Grameenphone , before the hype of Airtel's
entry, came up with the newest thing in the industry—
infrastructure sharing. It announced separate deals on
infrastructure sharing with Banglalink
Substitute products and services:
Customers may be willing to try substitute products
and services if they decide price is too high or the quality
of the product & service is too low .
Example :
Rankstel initiated their services on 14th April 2005
which comes as a substitute of mobile operators
8. Competitive forces
Customers:
Customers are now armed with new information resources
that makes it easier to jump to
competitors, new market entrants or substitute products
Example:
Previously market call rate was 7.00 tk. But when
banglalink offered 3.00tk ,the operator
created a mass attraction. As a result many users switched
to Banglalink.
Suppliers:
Number of suppliers used may determine how easy or
difficult business will have in controlling
supply chain . Too few suppliers and lose a lot.
Example :
During June 2005 A chaotic situation persisted in the city's
mobile phone markets as vendors were charging at their
wills per SIM from the customers although the operators re-
fixed the new charge adding Tk-1200 as duty
9. Strategies to deal with the force
• Low cost leadership
By using information system to lower operational costs
one can lower prices. That will make it difficult for
traditional competitors & new market entrants to match
the prices
Example:
On 16th June 2009 Warid launched its new pre-paid
package which includes three options -‘My Favourites',
‘day talker‘ & 'super saver'along with a basic product. The
new package provides minimum call rate at Tk 0.29 per
minute which was lowest at that time
• Product Differentiaation
A very effective use of strategic information systems is to
create products or services that are so different that they
create barriers for the competition.People like to feel that
they are unique individuals with their own needs and
desires. One of the best strategies for dealing with
competitors is to offer customers exactly what they want,
when they want it, and how they want it. The internet
provides a new outlet for mass customization by allowing
customers to order one-of-a-kind products.
Example:
On 16 June 2005 AKTEL, country's second largest mobile
operator, launched 'Club Magnate' service to reward and
pamper its individual post-paid customers through its
silver, gold and platinum memberships.
10. Strategies to deal with the force
• Focus on market niche:
Focusing on a very narrow segment of the market
instead of a broad general audience
Example:
Grameen phone initiated village phone focusing on
poor women & borrower numbers of gameen bank
living in the village
• Strengthen customer & supplier intimacy:
Supply chain management systems increase supplier
intimacy while customer relationship management
system increase customer intimacy .
Example:
1) At first citycell SIM was inside their set because
they wanted to build a tight linkage with their
customers so that they can’t switch over to other
operators.
2) Robi initiated customer care centre to increase the
intimacy with customer.
11. • The development of a competitive
mobile phone market is expected to
prompt an easing in for others.
• Cell phone tariffs going forward,
after years of escalation in what
was a captive market.
• Consumers will also benefit from
cheaper connection and call rates.
12. Disadvantages
Since the market players designed their strategy with traditional armors.
Therefore, the culture and practice of innovation was not appropriately
nurtured in this industry. Sometimes the competition was responded in a
very negative way (e.g. network jamming, price cut and so on). which was
to some extent unethical, too.
Example :
When Aktel planned to provide augmented
service to customers, GP created an unannounced
barrier in case of calling and messaging from Aktel
to GP subscribers to create an impression that
Aktel’s network is not as efficient as GP.
Ultimately, the innovative efforts of Aktel were
not fully successful. The company (GP) used to
enjoy almost a monopoly until and unless the
threat was created by other competitors.
13. Recommendations
• Faster development of telecommunications network coupled with improved quality of
service in line with the national development is a must for the fulfillment of the vision and
aspiration of digital Bangladesh.
• Ensuring fair competition among mobile operators and thereby to safeguard public
interest.
• Innovating and constantly finding new ways to enhance the services to its customer’s
current needs and desires for the future.
• Foster the promotional activities e.g. gifting SIM with handset to Media personalities and
freedom fighters
• The regulator, BTRC, must enforce a level playing field for the sake of fair competition and
existence in the long run. It is because sometimes big operators in the market enjoy
advantages for their size and potential anti-competitive nature.
• To enhance the bonding between the users and the company, the messages about
interruption of service should be given early enough. If it fails to do so, the company
should at least send messages apologizing for the interruption.
If the aforementioned recommendations can be implemented as early as possible, the
corporate image will be enhanced, customers will be satisfied, their confidence will be
reinstate and ultimately there will be a healthy competition among the mobile phone
operators in Bangladesh.
14. Conclusion
• The illustrations of this study makes us familiar with the
telecommunication service industry of Bangladesh and the
picture how it became highly competitive industry from a
less competitive sector. With the growing competition, the
overall customer satisfaction level is also increasing. From
the above discussion we can comment that the mobile
telecommunication of Bangladesh is very competitive & the
rivals are facing huge competition in the market. Therefore
we observe that the mobile companies are changing their
strategies day to day to survive in the market. So it will be
difficult for any new company to enter in this market. But we
can simply say that the mobile telecom market of
Bangladesh is a well balanced & fully competitive.