Telecommunication Companies Can Look Toward Post-Paid Subscribers for Better Revenues

January 21, 2013 10:41 pm 1 comment

Pakistan’s telecommunication companies can earn profit with a better marketing of their post-paid packages. Telecommunication companies have several post-paid packages for their subscribers, but they have not explored the extent of this market. Considering the fact that most of the mobile users in Pakistan have pre-paid packages from telecommunication companies as they get various exciting offers to choose from, but post-paid subscribers do not receive the same kind of attention in their marketing campaigns.

But this would have to change if they want to extract maximum out of this very segment of customers. Since the post-paid subscribers are few in numbers as compared to the pre-paid market, the telecommunication companies have often neglected them. But these few, yet loyal customers can bring the relief the telecommunication companies are looking for.

According to experts, by overlooking this customer-base telecommunication companies end up losing billions of rupees in their annual revenues. The post-paid subscribers are 3% of the total market, but their annual profit constitutes 10% of the annual revenue, which is something important to dwell upon.

The only company that is said to maintain a difference in their marketing campaigns toward pre-paid and post-paid customers is Telenor, whilst the rest of the telecommunication companies put them together when targeting or pitching a certain idea for sale. Telenor is said have experienced an increase of 13.4% in their customer base from 2008 to 2012 consecutively. What is more interesting to note is the customer base they have in their post-paid subscribers, which have increased by 20.4% for the past four years annually. This also means that Telenor’s revenues also increased by 25.3% on a yearly basis due to catering to this target audience.

The trend that is to be seen in customers is of more mobile users switching to post-paid package than a pre-paid one according to industry experts.  The telecommunication companies in Pakistan have mostly relied on the strategy of increasing teledensity by growing their number of subscribers, but that plan has come to its full fruition and requires some new move to make a better change for the industry.

Thus, experts believe that telecom companies can actually generate a market campaign toward getting more post-paid subscribers than pre-paid ones. However, an industry survey of the subscribers and their trend of usage has to be determined to check the feasibility of such a marketing campaign.

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  • While post paid packages can earn companies a good revenue, they need to improve the post paid billing standards injecting transparency in the process. My only experience with post paid connection with Mobilink has been quite frustrating. The frustration increases with the over-billing and other factors which the customer support department does not even both to answer.

    For me, it is the end of post paid. I will never go to post paid again owing to my first and last experience.

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