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Affordable Mobile Hybrids Enhance Customer Loyalty in the South African Mobile Communications Market Finds Frost & Sullivan - The Rise of the Middle Class Creates a Wider Market for the Low-priced Hybrid Segment
Affordable Mobile Hybrids Enhance Customer Loyalty in the South African Mobile Communications Market Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Cape Town, South Africa, 2011/11/29 - The Rise of the Middle Class Creates a Wider Market for the Low-priced Hybrid Segment.

   
 
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Being a highly competitive market, mobile hybrid pricing has become a new alternative for network operators to assist with market segmentation and gain consistent revenue in the South African mobile communications market. The expansion of the middle and upper middle class, along with the tough economic conditions, has impelled subscribers to migrate to the low-priced but high-volume service hybrid segment.

New analysis from Frost & Sullivan (wireless.frost.com), Unpacking the Vibrant Mobile Hybrid Segment in South Africa, finds that the mobile hybrid segment is becoming prevalent in the mobile communications market in South Africa. It generates consistent revenues by enriching and differentiating product and service portfolios and allowing subscribers to control their monthly expenditures.

Middle class households prefer the hybrid plan, as it allows them to control their monthly expenditure by setting a limited spending amount. Mobile operators also benefit from the hybrid segment, as it provides them with steady revenue and promotes customer loyalty in a market that is facing subscriber saturation and declining average revenue per user (ARPU).

"Operators could tap new market opportunities for the next three to five years by adopting a focused approach to differentiating and enriching product and service portfolios," says Frost & Sullivan's Information and Communication Technologies Research Analyst Liya Xi. However, the hybrid segment could be restrained, to some extent, by the limited data bundle and long-term contracts.

Due to the rapid evolvement of technology and mobile handsets, some subscribers prefer not to be locked into a long-term contract. Furthermore, the thin data bundles are sometimes insufficient to meet the increasing mobile broadband demand. This may pose hurdles for the expansion of the mobile hybrid segment, as operators offer discounts to both pre-paid and hybrid subscribers.

"Designing an appealing mobile hybrid package is not only important to gain consistent revenues, but also to promote brand loyalty," notes Xi. "Providing more distinctive and competitive advantages in the mobile hybrid package will guarantee sound revenue growth and increase the ARPU."

If you are interested in more information on this study, please send an e-mail with your contact details to Samantha James, Corporate Communications, at samantha.james[.]frost.com

Unpacking the Vibrant Mobile Hybrid Segment in South Africa is part of the Mobile & Wireless Communications Growth Partnership Services program, which also includes research in the following markets: Unpacking Market Update on Telecommunication and IT Mergers and Acquisitions in Sub Saharan Africa, Strategic Analysis of the Value-added Services Best Practices in Selected Sub Saharan African Countries. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Unpacking the Vibrant Mobile Hybrid Segment in South Africa / 9838-65

 
 
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Affordable Mobile Hybrids Enhance Customer Loyalty in the South African Mobile Communications Market Finds Frost & Sullivan

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