One can see that the number of people who choose products based on their price tags has increased. The consumer has radicalized his behavior and is constantly seeking to compare prices and track promotions. This is a strategy that has been called the ‘takeover of consumption,' there is a dominance of consumerism and the consumer is no longer ashamed of being stingy. Disoriented and confused by the constant increases and decreases in prices consumers seem to have lost confidence in the price variable.
This is how the concept of low cost appeared on the mobile telephone sector. This concept is now becoming increasingly important, especially after the good results produced by Telmore on the notoriously difficult Danish market. This concept of low cost is the strategy that is used by mobile operators who do not have the infrastructure for their own network and so leases this from another operator. They buy mobile phone minutes from traditional operators and then resell them to their customers.
Only M6 Mobile and Universal Mobile dominate this market, each has more than 200,000 and 250,000 customers. The remainder of the market is shared between smaller companies like MVNO who has more than 100,000 customers, followed by NRJ Mobile and Débitel Breizh Mobile and even smaller players like Transatel. Neuf Cegetel and Virgin Mobile are expected to be new market entrants. EasyMobile is also exploring opportunities to enter the market.
Tags- EasyMobile, French mobile market, Orange, MVNOs, telecommunications
[...] The cost of a prepaid mobile phone card is relatively high in France. An aggressive pricing policy has been an asset to Telmore. - An MVNO is able to provide better service to its customers than traditional operators as illustrated by the case of Telmore in Denmark. Moreover, the conviction of three major French operators concurs with the agreement. - The mobile penetration rate in France has reached a new peak in late 2005. With 76% of the population using mobile phone, the possibility of implementing a strategy that is focused on providing SIM cards is increasing. [...]
[...] In Britain, T-Mobile is a partner of the MVNO Virgin Mobile. The relationship between the two operators is close because Virgin Mobile is supported by T-Mobile and there is no direct competition between the two operators. The prices of Virgin Mobile are slightly lower than the older operators but this has not resulted in a significant loss of customers for traditional operators. This strategy is actually a way by which one can avoid attracting the attention of the ART on the competitive sector. [...]
[...] Moreover, the offer must focus primarily on voice and SMS facilities and should not charge customers for Wap portal development, for example. Indeed, many studies point to the fact that the majority of mobile customers today use their mobile phones for calls and sending SMSs. The MVNO must implement a very flexible and light structure with reduced cross-functional teams which, when combined with the absence of a network, will allow an even lower price. It is also inconceivable to want to develop a network because of the size of France, works contrary to what it may mean to other European countries. [...]
[...] MNOs (Mobile Network Operators) have the incentive to favor packages as they engage customers over a longer period of time. Furthermore, if the customer agrees to stay with the company for two years, he gets a loyalty discount. In addition, operators will find that it will be advantageous to offer new opportunities to their customers while maintaining the level of their prices. Thus, traders could expand the number of issues that enable the client to make unlimited calls, if those numbers belong to the same operator. [...]
[...] Given the very limited market openings in the French market, the idea is to associate the MVNOs that have already registered a strong reputation. A partnership with an ISP seems to be a relevant strategy as this would benefit from the reputation, the customer file and create an alliance between two companies for a fixed - mobile convergence and the Internet. France is one of the leading countries in the broadband access sector as it has more than 9 million subscribers that include nearly 3 million unbundled users. The growth in this market is also strong. [...]
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