Wireless Operators Should Increase Their Focus on New Services

In today’s ever increasingly competitive wireless market, new services will help carriers enhance their value proposition. It is no longer safe or prudent to focus marketing effort exclusively on acquisition activity using price as the key driver. It is not a sustainable point of difference. With wireless rate plans available for as low as $15/month price is no longer a barrier to entry.

Market penetration is exceeding 70% so we are quickly reaching saturation. Continuing to focus marketing efforts purely against acquisition activity can be expected to deliver lower returns in the future. Three new competitors are about to launch service in Canada all promising a better wireless experience. But beyond the restyled retail stores and social media hype there’s a rate plan for a monthly fee that carriers will base their marketing activity on.

The market has also quickly moving beyond handsets as the mechanism to attract new users. What consumers and businesses need are services that help them manage their busy lives or simply their use of the service. There are some great new services being deployed in other markets as well as here that carriers can use to differentiate their networks with.

A good example of this is Rogers Wireless that was the first in North America to launch Caller Name Display. Most of us are probably unaware that Calling Line I.D (CLID) is different than Caller Name Display. With the basic Calling Line feature you only get the phone number showing up on your handset when a party calls. If you have the number programmed in to your handset with a name then you get the name as well. With Caller Name Display a Rogers Wireless subscriber gets to see the name of the calling party even if they don’t have the name in their phone book. What a great service to help subscribers screen their calls. Nothing is more annoying than picking up a call from an automated dialer that is calling to check whether you had a good experience at the garage where you took your car.

There are so many other innovative new services out there like Caller Name Display that carriers should be looking at to enhance their value proposition and make their network indispensible to their customers. Keeping an existing high value customer happy is more profitable than spending money to get a new $20/month prepaid user.

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