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A mobile handset incorporating a camera will no longer act as a purchase driver, consumers are beginning to expect integrated multi-media, music, TV and internet. 


Conversely, the majority of customers using only a tiny portion of their handset’s functionality are being embraced with the provision of easy to use devices.

After a shaky start 3G subscription is continuing to grow.  Although low entry levels combined with high-end handsets have no doubt fuelled this, it is a strategy which is yet to be proven.  With a high proportion of price-sensitive switchers in the customer base just 40% of 3G owners are using the services available to them.
  
In the business market increased sophistication has led to a blurring of lines, with financial and IT managers equally likely to be involved in decision making as the traditional telecoms managers. There is also a new found interest in the often overlooked ‘prosumers’ who have far greater freedom of choice and more importantly an above average ARPU!

Despite advances in broadband and VoIP fixed line providers are acutely aware of the growing 10% who rely purely on mobile. This coupled with the threat from Wholesale Line Rental legislation means that reverse strategies such as BT Fusion will become increasingly important.

Globally there is a vast interest in emerging markets.  Although most have quite a way to go before reaching the dizzy heights of Japan, the technologies and capabilities are knocking on our door.  Decisions are rarely made in isolation and the importance of understanding country and cultural differences when implementing these can never be under-estimated.



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"Maximising ARPU and minimising switching are key strategies for all. In response to this and recent consumer trends, handset providers are moving towards device convergence. The fixed line battle
is a very different one, aiming to reverse the trend of mobiles, embracing the opportunities in broadband and VoIP."
Maria Slaymaker,
Senior Client Consultant

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