- Business Readiness
- Industry Solutions
- About Zertisa
Telecommunications operators who want to market customized devices today have the challenge that the exact number of devices to be sold has to be determined before the devices are ordered from the hardware manufacturers. Additionally, telecommunications operators have to keep customized inventory in house to be able to offer customized devices. As a consequence, telecommunications operators have to scrap non-needed customized inventory as it cannot be easily returned to hardware manufacturers or sold in other markets. Logically, telecommunications operators only order the amount of customized devices which they are 100% sure that can be sold. This significantly limits the upside potential. Minimum quantity restrictions of hardware manufacturers and a customized inventory risk made it fully impossible for smaller telecommunications operators to deliver customized devices in low scale markets.
Another challenge for telecommunications operators is the similarity among their services at comparable quality to consumers. Only a lower price point, additional offerings (e.g. content, support) and a strong brand allow them to differentiate from one another. The placement of value-added content during the contract period allows them to better attract and retain end-customers in a fiercely embattled commodity market. If a telecommunications operator – and this is especially true for MVNOs – is not capable of delivering these differentiators, he bears the risk of fast churning customers whenever a competitor reduces prices. MVNOs show that subscriber numbers can still be increased above average with attractive no-frill offerings. When further price decreases are no longer feasible, MVNOs will need an alternative to attract customers: Customized devices.