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Pricing wars – desperation in the morning? | Billing Views

The gloomy outlook in the US stems from the amount and cost of data traffic, which is already a commodity. Although the carriers that have launched innovations such as shared data plans are seeing reduced churn, churn is still up on last year.

The answer, as we know, lies in collaboration. Collaboration gives operators the path out of commodity pricing because it transforms their offerings from services (access, data) to products (video, music, games). Products are easier to buy. We also know that the potential of combining information with partners provides the door through which sensible, context based offers can be launched. Knowledge of device and data usage, combined with knowledge of what the customer likes doing, and, crucially, is about to do provides operators and partners that magic mix.

The problem is that it may be too late. Operators have already gone down the commodity path and it is difficult to see a way back. Competition is dictating a price war and so the focus must be getting more out of less and doing everything you can to keep customers, even at a loss, so that you can figure out how to make money out of them again at a later date.

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Pricing wars – desperation in the morning?

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