Strategies of Cellular Companies

abhishreshthaa

Abhijeet S
The Game plan Of Cellular Operators


• The current buzzword is Integration. Merger and acquisition strategies are used to gain higher market share and economies of scale


• Cellular tariffs and activation fees are reduced due to competition from incumbent fixed line operators to stimulate subscriptions


• Operators are offering value added services and upgrading to next generation cellular systems since voice revenues are decreasing


The Industry has to respond positively for the immense threat posed by the emergence of WLL. The likely strategies that may be adopted by the players may be –


• Divide cities into different zones and offer different rates within the zones.


• "Home zone tariffing" where mobile phone users pay only local charges for calls within a state.


• Leverage the value added services, which the limited mobility operators cannot provide (eg SMS).


• Offer two differentiated tariffs - one with SMS and another without SMS having different rates.


• Leverage the value added services, which the limited mobility operators cannot provide (eg SMS).


• Offer two differentiated tariffs - one with SMS and another without SMS having different rates.
 
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