Addressing Marginal Customers in Mature Mobile Markets

Addressing Marginal Customers in Mature Mobile Markets published by Mobile Market Development Ltd in April, 2008. This report consists of 27 PAGES and the price starts from US $ 3500.

Introduction

Mobile Network Operators in maturing markets must increasingly address issues of the profitability of the customers they serve. During the growth phase of affluent markets, the primary focus is rightly on acquiring as many customers as possible. When the growth slows, those with the largest numbers have the best chance of winning the subsequent battle for long-term market domination. In Europe today, with penetrations at well over 100%, the next phase of market development is already happening. The winners will be those that have the highest levels of profitability per customer.

• How are MNOs reacting to the new imperatives of the mature, affluent market?
• Has the history of acquisition at almost any price left a legacy of unprofitable customers that cannot be separated out and addressed by the current market leaders?
• What needs to change in the way services are promoted, delivered and priced?

This report examines the current state of play and draws conclusions about how MNOs need to adjust their thinking and actions in the new environment. The report concludes with recommendations for MNOs facing up to the challenge of the marginal customers in their own customer base.

1. OVERVIEW

2. INTRODUCTION

• 2.1. Background to the Report
• 2.2. Report Content
  • 2.2.1. Currency Conversions as at 8 February 2008

3. MARGINAL CUSTOMER CHARACTERISTICS

• 3.1. Quantifying the Effect of Marginal Customers
• 3.2. Marginal Customer Scenarios

4. IMPACTS OF MEETING MARGINAL DEMAND

• 4.1. Infrastructure Efficiency
  • 4.1.1. Network Efficiency
  • 4.1.2. Customer Management
• 4.2. Call Termination Revenue
• 4.3. Indirect Value
  • 4.3.1. Social Network Benefit
  • 4.3.2. Future Value
• 4.4. Regulatory Compliance
  • 4.4.1. UK and BT Universal Service Obligation
  • 4.4.2. Mobile Social Tariffs in Belgium

5. STRATEGIES TO INCREASE PROFITABILITY

• 5.1. Improving Margins
  • 5.1.1. Reducing the Cost of Servicing
  • 5.1.2. Reducing the Cost of Acquisition
• 5.2. Transforming Services
  • 5.2.1. Mobile Banking
  • 5.2.2. Sub-branding Strategies
• 5.3. Divest Customers
  • 5.3.1. Sprint Account Terminations

6. KEY FINDINGS

7. RECOMMENDATIONS

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