The idea
A mobile network is mostly fixed cost, so the largest operator usually has the lowest cost per customer and can survive a price war longest. Shared networks and distribution make it cheap to add wallets, home internet or content. This pushes markets towards three or four players, and it means a smaller operator should win on a focused segment, channel or product rather than on price.
Use it thoughtfully
- Know your cost per customer against larger rivals.
- Use shared assets to add services cheaply.
- If smaller, compete on a focused segment, not on price.
An example
ILLUSTRATIVE EXAMPLE: A smaller operator avoids a national price war and focuses on students and remittance families with tailored packs and service.
A question to try
Where could your existing network or channels carry a new service at little extra cost?
A useful framework is a starting point, not a guarantee. Effects vary with the audience, product and situation. Use truthful evidence, respect customer choice, and test the result.