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PricewaterhouseCoopers: Operators will have to find growth from existing customer base

March 3, 2010 by Dusan Belic - Leave a Comment

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PricewaterhouseCoopers has a new report titled “Change is in the Air: 2009 North American Wireless Industry Survey” highlighting the trend of the mobile industry in the U.S. Here are the highlights:

  • Retention: Large carriers invested more than $160 per subscriber in the 2009 survey, which is 30% more than in 2008.
  • Prepaid: Due to bad economy, consumers are moving towards prepaid plans. Use of prepaid minutes increased more than 147% in the past four years, from 270 minutes in 2006 to 667 minutes in 2009.
  • Smartphones: As of June 30, 2009, 21% of all mobile device sales were smartphones, and an average of 12% of overall subscribers use smart phones. The ARPU for smartphones is $74 compared with total postpaid average revenue of $54.
  • Network investment: On average, capital expenditures as a percentage of service revenues increased to 21.5% in the 2009 survey from 18% in the 2008 survey.
  • Electronic payments (ecology): Percentage of postpaid subscribers receiving paper invoices decreased from 81% in the 2008 survey to 72% in the 2009 survey, and the average percentage of subscribers that received electronic invoices increased from 6% to 14% during the 2008 to 2009 survey period.

PwC’s analysis concludes carriers should:

  • Gain more clear insights across the customer base into who contributes to (and detracts from) profitability.
  • Adopt targeted and scaled strategies to “go the extra mile” for high-performing customers and to more carefully mitigate the costs of unprofitable customers.
  • Develop customized tools that ensure every touch point keeps the bottom line of every unique customer in mind.
  • Craft tiered pricing options based on the cost profiles of different customers.

And you can get additional details from PwC’s website.

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