CAMBRIDGE, Mass., Sept. 28, 2011 /PRNewswire/ -- The effects of price wars in East Africa could result in a chronic inability for telecom operators to generate revenue, but there are three remedies that may help, according to a new report from Pyramid Research (www.pyr.com).
Beyond Price Wars: A Road Map for Better Mobile Services in East Africa describes the market conditions in which the East African telecom price wars surfaced. Then Pyramid discusses three possible remedies for price wars on voice services and discusses why these responses are sensible within the context of East Africa. Finally, Pyramid focuses on the implications of price wars in three countries, namely Kenya, Uganda and Tanzania. In a closer look into these markets, Pyramid evaluates their present challenges and the adequacy of our recommended responses.
"First, operators need to act quickly in investing in new services and technologies while voice services are still generating some revenue," says Kerem Arsal, Senior Analyst at Pyramid Research. In addition, regulators should recognize and be proactive about their role of ensuring that markets do not overheat with hyper-competition. Finally, operators need to realize that while end users may respond to lower prices by increased usage, it does not mean that price elasticity will lead to unlimited consumption. "In fact, end users are growing increasingly confused by a proliferation of promotions and wary of quality problems," he indicates.
Beyond Price Wars: A Road Map for Better Mobile Services in East Africa is part of Pyramid Research's Telecom Insider Report Series and is priced at $595. Download an excerpt or purchase the report here. For more information, contact Jarka Justova or Lorena Marani (for those in Latin America).
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SOURCE Pyramid Research