Telecom pricing strategies to maximise profit

The ongoing digital transformation of the telecommunications industry has led operators to introduce new innovative business models and this in turn is highlighting the need for more flexible and responsive pricing tactics and strategies. These pricing schemes must cater for the variety of mobile, fixed and 3rd Party services customers demand, whilst, at the same time optimising the available revenues and profitability for the operator over the short and long term. The ever-changing technology and customer landscape means that telco companies must continually innovate pricing structures to ensure a win-win scenario for both the customer and the Telco.

As the industry moves towards 5G and beyond, it is imperative that Operators maximise the full potential of their offerings to secure future investment in infrastructure, operational process and people to enable them to thrive in today’s highly competitive Telecommunications market.

This course will provide you with an introduction to traditional and alternative strategies and tactics of price management for the Telco industry and help you to consider their applicability to your own Telco business. You will learn about the importance of pricing, the different types of pricing strategies and models, common pricing mistakes and how to avoid them, economic pricing theory, new innovative approaches to pricing, plus much more (see agenda below).

• Business leaders and senior managers, particularly accounting, marketing, sales and general management executives.
• Charging and Support Payment Managers
• Business analysts, product management and pricing analysts.
• Business unit managers and managers of subsidiaries to whom pricing decisions are devolved.

• The student will understand the key financial, economic, and psychological principles relating to pricing, specifically within the Telecommunications sector.
• Students will leave with a practical framework for assessing the value of their Telco product or service from the customer's perspective, which will help them make more relevant and commercially aware pricing decisions
• Attendees will gain an understanding of the main contemporary methods of pricing, such as: cost-based, competition-based, value-based etc, plus an in-depth analysis to the Telco specific pricing strategies and tactics, both common and evolving, in today’s post COVID-19 reality.
• how to assess pricing strategy from a financial and strategic perspective.

Module 1 - Market Trends & Pricing Implications

• Overview of current market trends that influence pricing strategies
• Importance of price in buying decisions.
• The factors and conditions that influence price
• Understanding and articulating the value proposition.
• The relationship between pricing and the technology lifecycle

Module 2 – Overview of pricing strategies

• Cost based pricing.
• Value based pricing
• Competition based pricing.
• Customer driven pricing.
• Skim pricing
• Penetration pricing
• Identifying common pricing mistakes and knowing how to avoid them
• Recognising the conditions that accentuate a price war and learning how to avoid one.

Module 3 – The economic theories of pricing

• The fundamentals of price differentiation in a commoditised market.
• Price discrimination, the advantages and the disadvantages.
• Multiple Market Price Determination
• Understanding the demand curve and uses it to your advantage.
• The price:value relationship and what it means to the Telco
• Cross-Price Elasticity of Demand
• Oligopoly Behaviour - A Game Theory Overview

Module 4 – Strategies and Trends in mobile-data pricing

• An evolving mix of data plans
• Tiered pricing
• Integrated pricing
• Shared/multi-device data plans
• ‘Comes with data’
• Application-centric pricing
• User priority pricing
• Dynamic/real time pricing
• Freemium pricing
• Hard and soft Bundling
• Add-ons

Developing your Telco Pricing Strategy

Practical Interactive Stream (running through the three days)

• Pricing problem (or opportunity) definition and validation
• Exploring possible solutions
• Business Model
• Competitor analysis
• Data available and regulatory issues
• Financials
• RoadMap
• Expectations (what does success look like?)

Proof of Learning presentations: Refine Lean Model Canvas for post course implementation.