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Subscription Fee Wars Make Telecommunications a Tough Business


Subscription Fee Wars Make Telecommunications a Tough BusinessAs of July 2009, over 87% of Americans had a cell phone. That figure is not just adults, but 87% of the overall population, meaning nearly every adult and a lot of children have mobile phones. Up until the last couple years, wireless carriers were still gaining new subscribers at a fairly regular pace meaning company growth was virtually assured. With the country at near total mobile phone penetration though, providers can no longer rely on new subscribers for continued growth.

So, the only way that telecommunications providers are going to continue to grow is to either steal market share from competitors, or sell additional products and services to existing customers. Both of these are easier said than done. The rapid growth in the smartphone market is helping matters, with the increasing prevalence of combined voice, data and messaging packages helping to increase the average fees paid by consumers. However, competition and the fight for market share are leading to the prices for these services declining over time.

While a few years ago an unlimited data plan was virtually unheard of, today they are offered by all the major carriers (aside from AT&T which just dropped its unlimited plan due to data overload due to iPhone usage), and prices keep dropping. Carriers need to ensure they offer a range of service package options that customers can configure to fit their individual needs at a competitive price. Those that either stop offering services requested by customers or who fail to offer service levels commiserate with their pricing will not survive the coming years.

About Sylvie Rougé

As VP Product Marketing, I am the head of Cameleon Software Product Marketing department in charge of coordinating a team of Product Managers and Webdesigners. My responsibilities include putting together a product plan/budget according to customers needs, defining product specifications, coordinating R&D, validating development and producing product-related documentation. Follow me on Twitter @CameleonSw

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