A COMPARITIVE STUDY ON PORTUGUESE MOBILE NETWORK OPERATORS Siddharth Rathinam Karthikeyan IK2514- Wireless Infrastructure Deployment & Economics vs.

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Presentation transcript:

A COMPARITIVE STUDY ON PORTUGUESE MOBILE NETWORK OPERATORS Siddharth Rathinam Karthikeyan IK2514- Wireless Infrastructure Deployment & Economics vs

Background:  To compare Portugal Telecom and Vodafone Portugal business strategies.  In aspects such as type of services provided, target customers, marketing strategy, pricing, spectrum allocation and Network sharing etc. Portugal Telecom (PT) Vodafone Portugal  Government owned until 1994 Commercialized by 1992  Formed by fusion of various fully owned by Vodafone companies as Portugal Telecom Second largest operator with 34%  Still dominant actor w.r.t market shares- 45% Services Offered : Portugal Telecom- Fixed line & Mobile Telephony, Fixed line & Mobile Internet, Digital Television, IT Services- de facto operator in fixed telephony Vodafone Portugal- Mobile Networks, Mobile Broadband, Digital Television and Telecom services- but not in fixed telephony, Marketing Strategy: Portugal Telecom- Rigorous techniques-heavy investments-branding with football clubs. Vodafone Portugal- not as heavy as PT- launched global advertising campaign-using strong tag lines- first operator to introduce 24*7 customer service.

Pricing: Portugal Telecom- same strategies for FT- but reduced prices for MBB services.-low ARPU Vodafone Portugal- low pricing in MBB service with many value added services. Target Customers: Portugal Telecom – Enterprise and all class of people- specific products for each sector of people. Vodafone Portugal – for broadcasting targets only enterprises, rest of services- all set of customers. Network Sharing: Portugal Telecom- dominant actor- uses the existing infrastructure Vodafone Portugal- for broadcasting- decide to share with Optimus, third largest operator Spectrum Acquisition: Portugal Telecom and Vodafone Portugal - same phase with acquiring the 4g/LTE license- providing 4G services- through fixed and mobile broadband connections. o Final words: Not much bigger difference in business strategies- Portugal Telecom, once an incumbent and state owned it enjoys the customers’ backup- Vodafone Portugal, a new entrant- gained trust by various products, cheap prices and value added service- Marketing strategy can be improved.