Telecom Companies must be quick to respond to market trends and maintain cost control.
Having the correct pricing strategy has never been more important in a competitive markeplace with downward price and margin pressure.
Typical Telco pricing models include:
- Cost plus pricing
- CLTV optimisation
- Competitor based pricing
- Value based pricing
Price is a key buying factor for the Telco consumer, as such it is vital that the Organisation is correctly modelling and communicating its service offering.
We aim to help MNOs and MVNOs to drive ARPU, increase CLTV and lower acquisition costs.
When pitching for new business, it is vital that the Bid team understand and challenge key costs assumptions. We ensure that the team has full visability of its core operating costs. These costs should be defined and subdivided as follows:
- Fixed/Committed e.g. Licences,
- Semi - Fixed e.g. Site Rental,
- Variable e.g. Professional Fees/Training,
- Staff costs.
SAC/SRC and Top Up commission should be seperately analysed to arrive at an understanding of the Total Cost Base.
Total Cost Base management is now a core skill for Telcos looking to grow EBITDA.
We partner with our Clients to deliver a consistent message on product and service pricing across their total portfolio.
We support the Sales,Marketing and Finance teams in new business bids, customer retention planning, competitor analysis and new product/service pricing.