Preview

Telecom Strategies

Satisfactory Essays
Open Document
Open Document
8937 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Telecom Strategies
Innovation Report Innovation

Strategies of Telecom Operators
How to retain margins
Ref: M12312 – June 2012

Market maturity, increased and multi-faceted competition, a difficult macroeconomic context and sustained regulatory pressure have an impact on the margins of most operators in advanced economies. This study analyses the initiatives being taken by telecom operators to contain their margins, such as: keeping costs under control, choosing investments, winning over new customers, valuation of assets, etc.

• Which avenues for reducing expenditure are worth exploring? • Are customer management and segmenting offers key measures? • Is increasing customer numbers a real source of margin? • Does increasing revenue per user also have a positive impact on margins? • Questions which are still open: subsidizing handsets, monetizing usage, the place of content, …?

www.idate.org

Contents (PDF report)
1. Executive Summary 2. Methodology 3. Operators under increasing pressure
3.1. A generally deteriorating politico-economic context 3.2. Mature mobile markets 3.3. Exploding usage 3.4. Regulatory pressures still strong 3.5. Increasing competition 4.3.4. Increasing mobile data tariffs 4.3.5. Supplying and distributing differentiating content 4.3.6. Related activities

Deliverables:
• Report (PDF) • Slideshow (PDF)

June 2012

EUR 3 500
(1-5 user licence)

5. Measures which are effective to varying degrees
5.1. Tightening expenditure 5.2. Increasing the customer base 5.3. Increasing revenue

Sales contact: Isabel Jimenez
i.jimenez@idate.org Tel.: +33 (0)467 144 404

4. A large range of actions for retaining margins
4.1. Tightening expenditure 4.1.1. Organizational and financial measures 4.1.2. Operational and functional measures 4.1.3. General strategy measures 4.1.4. Technical and technological measures

6. Challenges and open questions
6.1. Confirming the benefits of segmentation and family offers 6.2. Clarifying strategies concerning

You May Also Find These Documents Helpful

  • Good Essays

    Cogeco Porters 5 forces

    • 4324 Words
    • 17 Pages

    There is a fierce price and performance competition in the telecommunication industry. All the big players aim to provide services at cheaper costs and make high performance promises in order to develop an integrative relationship with the customer.…

    • 4324 Words
    • 17 Pages
    Good Essays
  • Good Essays

    Technological: In the past three decades, a major shift in technology has prevailed in the mobile handset industry. Through innovation and technological advances, the market shifted from analog transmissions (1G), to digital mobile communications in 1992 (also known as 2G), and ultimately to the Wideband Data Communications network (3G). With rapid changes in this dynamic marketplace only the most well-funded and well-managed companies have managed to emerge from generation to generation, whilst others have been unsuccessful.…

    • 1566 Words
    • 6 Pages
    Good Essays
  • Better Essays

    In today’s society the cell phone market is a huge competitive industry for cell phone companies. There have been studies that show that half the world has cell phone accounts. One attribute that defines the cell phone market is the idea of consumers is giving up their land line phones. This has caused a large influx of customers into the market for cell phones. As technology continues to advance, a variety of cell phones are developed and marketed to different areas across the nation. Cell phones are available for business and social purposes such as social networking, text messaging, retrieving e-mails and for playing games.…

    • 1576 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Mci Communocations

    • 1590 Words
    • 7 Pages

    Please see Exhibit 1 and Exhibit 2 MCI’s external needs will keep increasing over the next few years as the operating margins would shrink because of higher competition & higher access charges. In order to increase its market share, MCI would need to continue investing huge capitals in its network. As per exhibit 9 of the case, it is anticipated that MCI will increase its market share to 20 % in the next 6 years. The telecom industry is very capital intensive and in 1983 required $1.15 worth of investment in fixed plant & equipment for each extra $1 of revenue; that is first you have to build the network before you can sign up customers. The operating margin is expected to stabilize at 15% by 1990. But they are expected to vary substantially based on competition. It can go up to 22% or go down to 8%.…

    • 1590 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    Mci Case

    • 981 Words
    • 4 Pages

    6. volatility in operating margins due to dual pressure of higher access charges and increased competition from a newly revamped AT&T…

    • 981 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    As the public’s dependence on cell phones continues to grow, the cost of the phones may be decreasing, but the stronghold that telecommunication companies have on the public in regards to contracts and climbing fees is alarming.…

    • 382 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The telecommunication industry that AT&T essentially created has undergone radical advancements, particularly within the last decade. According to the IBM Institute for Business Value, approximately 15% of the world’s population had access to a telephone in 1999 but by 2009, 70% of the world’s population had mobile phone subscriptions (Nelson & van den Dam, 2010). Given the extraordinary explosion of mobile computing and wireless communications, continued advancements within the global telecommunication industry are certain. A number of trends drive this evolution including the advancement of devices and network access technology, changes to users’ consumption patterns and services compositions, a shifting industry structure, and finally the future of regulation in the telecom industry. In order to maintain its position in the ferociously competitive telecom field, AT&T needs to consider these trends and other forces of change to gauge its potential within the market.…

    • 1760 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Telecom Convergence Analysis

    • 4107 Words
    • 17 Pages

    On the one hand, customer demand for convergent services and content provide new revenue opportunities. At the same time, intensifying competition from existing industry players and new market entrants, including cable, ISPs, content providers and consumer brands, bring renewed demands for innovation and differentiation. Increasingly discerning customers expect a value added services experience, irrespective of technology. At a time of rapid technology change, these factors add to existing pressures on telecom infrastructures and market expectations for growth.…

    • 4107 Words
    • 17 Pages
    Powerful Essays
  • Powerful Essays

    Wireless Industry Swot

    • 1704 Words
    • 7 Pages

    Bibliography: Anwar, S. T. (2003). Vodafone and the wireless industry: A case in market expansion and global…

    • 1704 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Verizon Strategic Analysis

    • 2921 Words
    • 15 Pages

    An examination of potential sources of growth and risk within the highly competitive telecommunications market in regards to Verizon Communications. We at Verizon are embarking on an aggressive plan to extend fiber-optic lines to homes and businesses to compete with cable companies. Growth in our industry will come from traditional voice service and text messaging, mobile picture services, broadband Internet services and Internet-ready appliances. With the use of pro-forma balance and income statements, detailed ratio analysis and industry trend tracking we hope to increase share holder wealth while expanding our market share and bringing innovative new products to the consumer.…

    • 2921 Words
    • 15 Pages
    Powerful Essays
  • Better Essays

    Syphone Clv Analysis

    • 1716 Words
    • 7 Pages

    SyPhone 1 is a cell phone company that sells cell phone contracts to small to medium-sized companies, usually to equip their sales representatives and managers with cell capabilities. A typical contract covers 5 to 500 cell phones and includes phone equipment, support, service, maintenance, and unlimited phone calls for $80 to $100 per month per user. SyPhone finds itself in a highly competitive B2B market, one in which major service providers compete alongside several large resellers. The customer base is very sensitive to price, but only if service quality is high. Typically, a substantial barrier stands against customers switching to competitors, because such a switch would involve changing equipment and retraining users. However, customer switching is a possibility when contracts are about to expire. SyPhone needs to understand the profitability of its customers before generating a renewal bid for them. For new customers, SyPhone also needs to understand their potential profitability before offering them a contract. Historically, SyPhone has offered various discount rates to prospective customers. According to the company database, it appears that those customers who obtained the largest discounts are the least profitable in the…

    • 1716 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Price Wars

    • 683 Words
    • 3 Pages

    The key players in the wireless industry are Verizon Wireless, AT&T, Sprint, and T-Mobile. With these four companies controlling 90% of the market, there are no other ‘key players’ in the industry. U.S. Cellular is not quite a ‘key player’, however they do hold approximately 2.4% of the customer nationwide and must be in the overall picture. In addition, the data suggests that the pool of potential people that would get a cell phone is almost entirely saturated so it does not look as if there is any room for additional competition.…

    • 683 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Ntt Docomo

    • 5084 Words
    • 21 Pages

    Furthermore, the dynamic technologies platform in Japan is eroding the profit margin for the telecommunication companies as more investments is needed to be set aside for R&D while maintaining the price plans for customers. In addition, the presence of substitutes makes price-sensitive customers in a stronger bargaining position to demand for more new services due to the low switching cost involved.…

    • 5084 Words
    • 21 Pages
    Powerful Essays
  • Satisfactory Essays

    The South African mobile market structure can be classified as an oligopoly, or even a duopoly, with two firms, Vodacom and MTN of more or less the same size dominating the market. Both Vodacom and MTN have market shares of at least 35%. This implies that both firms can be classified as ‘dominant’ i.t.o. the Competition Act. It is also important to note that the combined market share of the two large players is approximately 80-90% which should be an indication of their collective market power. Where two large companies control a market (duopoly) and they have similar cost and pricing strategies, competition levels may not be optimal.…

    • 1099 Words
    • 6 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Promotion in Telecomms

    • 5270 Words
    • 22 Pages

    Entrepreneurial Marketing Guest Lecture Kosice 2011 Prof. Dr. Christine Volkmann Dipl.-Oec. Holger Berg Bergische Universität Wuppertal Fachbereich B - Schumpeter School of Business and Economics Bergische Universität Wuppertal Gaußstraße 20 42119 Wuppertal Overview • The Meaning of Entrepreneurial Marketing for StartUps • Concepts of Entrepreneurial Marketing Strategies • Case Studie: Nantucket Nectars Entrepreneurial Marketing : THE MEANING OF ENTREPRENEURIAL MARKETING FOR START-UPS Page 3 • Marketing is of crucial importance for the success or failure of an enterprise, as its success is ultimately decided in the market, competing for the target customers. • The degree of market orientation of an enterprise may well impact its overall business performance, both in the context of young and small enterprises and in the process of launching new products. • Venture capitalists will look at: – How the enterprise plans to enter the market – Which target groups will be adressed – How the firm„s product or service offers will be communicated and distributed to potential customers.…

    • 5270 Words
    • 22 Pages
    Satisfactory Essays