Design of prepaid and postpaid pricing plans for European mobile operator

Design and re-launch of prepaid and postpaid pricing plans for European mobile operator. Through its proprietary Value Based Pricing methodology, Oliver Wyman helped a major mobile operator redesign its prepaid product line and expand its postpaid product line into high-ARPU segments. We started with the evaluation of the client's competitive positioning in order to identify current catalog weaknesses, identify main choice drivers, and then build optimization scenarios (including a new offers proposition). Design and re-launch decisions were then made based on a behavioral model based on actual customer decisions to subscribe to a given offer and applied to simulated new offers. Behavioral model outputs (operator market shares and split among new offers) were then injected into a financial model to deliver a completely re-designed business plan. Sample output: The new prepaid line was launched and generated a revenue increase of about €100M for the first full year.


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