Abstract
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.
|