How to Avoid the “Spiral of Death”
According to research group Strand Consult, MNOs active in prepaid markets are heading for a “spiral of death” as they focus on short-term solutions to business challenges and enter into extreme price competition. There can only be one result from this: reduced revenue and margins and increased business vulnerability.
Instead of focusing only on price, MNOs need to seek greater differentiation in prepaid markets. While it’s true that most prepaid customers deliver lower ARPU, there is an untapped market that should be addressed as a strategic priority.
Many small businesses want to control costs. At the same time, they want to take advantage of cloud-based solutions that deliver business benefits that have previously been available to larger companies. To take one example, Mobile PBX delivers a range of features and benefits that were only previously accessible to companies deploying premises-based PBX solutions. These are out of reach of smaller companies but cloud-based call management solutions can help them position themselves more effectively, deliver rich features and productivity benefits.
There’s no reason why such capabilities cannot be offered to prepaid subscribers. By delivering these services from the cloud, MNOs can start to offer more value and differentiation to prepaid customers, increasing ARPU and margin through richer, more attractive services. With Gintel, it’s simple to:
- Integrate Mobile PBX offers into prepaid charging systems
- Offer advanced business services to small and micro enterprises
- Deliver call handling and main number capabilities to any user
- Create VPNs and Closed User Groups to share call allowances
Instead of focusing such services only on post-paid customers, MNOs can easily create greater differentiation for their prepaid customers and reach the huge market of small businesses that exists today – and which is underserved by operators generally.
Our customers have successfully deployed cloud-based Mobile PBX and call management solutions that enable them to deliver services to both post- and prepaid customers. By focusing on the needs of small businesses in the prepaid market, they can take action to arrest the spiral of death. Why not find out how?