Apple Telecom User Manual download pdf (Page 11)

9 | What customers really want – A customer-centric strategy for telecom operators

Project example 1 – Optimizing a mobile operator's handset subsidy policy

Challenge: Subsidizing mobile phones is common practice in almost all

European markets, both for customer acquisition and customer retention.

The operator in this case aimed to reduce and focus its handset subsidies.

The task, therefore, was to come up with a very detailed ROI perspective

on subsidies paid.

Solution: Refocusing spending helped to save at least EUR 10 million in

subscriber acquisition and retention costs. Detailed ARPU data for each

and every handset offered and subsidized by the operator was combined

and matched with subsidy data from strategic marketing. We then classified

subsidized handsets based on ARPU and payback time to find out where

action had to be taken most urgently (see Figure 2). This analysis of handset

profitability not only reduced overall spending on subsidies but helped

shape and optimize the future handset portfolio.

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Apple Telecom User Manual Page 11