Current players of the Telecom market does not fear a new competitor, but plan to pay more attention to retention issues and gain customer loyalty.
MOSCOW, 22 Oct. Mobile operator-discounter Tele2 on Thursday begins to provide services in the Moscow region, to realize his dream.
The company tried to enter the capital market, but the opportunity to do so appeared only after the creation of the JV with Rostelecom, the operator transferred a wide range of frequencies, including in Moscow.
In the capital of Tele2 launches 3G network and LTE — GSM-frequencies in Moscow the operator not, which services the company will not be able to use regular “push-button” phones.
Despite this, and for less than the “big three”, the number of base stations, Tele2 analysts predict success in the capital, predicting that its share in the coming years may reach 10%. The operator shares his plans for the conquest of the capital market. Rossvyaz has allocated Tele2 in the Metropolitan area of 7.5 million numbers in the code 977.
Director of marketing and product development Roman Volodin, Tele2 reported that two weeks of pre-orders on the company’s website was designed more than 30 thousand applications on the sim card of the operator.
Meanwhile, competitors — the operators of the “big three”, who have long worked in the Moscow market, is skeptical about the prospects of Tele2. They believe that Tele2 will be the low quality of services in the first phase.
On Wednesday, Tele2 introduced four tariff plan. According to Volodin, Tele2 rates 25-50% lower than competitors.
In the tariff “Orange”, providing for the monthly fee, the cost per minute of calls, sms and 1 MB of traffic will be equal to 1 ruble. The cost of calls will be the same and for calls to other regions or to other operators ‘ networks and to fixed phones.
In addition, the company will offer a range of tariff options that will allow you to increase traffic: 7 GB for 299 rubles per month, 15 GB for 599 rubles, 30 GB for 899 rubles.
In addition, the company will offer four packages: the rate of “Black” with a monthly fee of RUB 99 includes 2 GB of bandwidth and 150 sms, “Very black” for 299 rubles — 4 GB of Internet traffic, 400 minutes and 400 sms to all numbers of the Russian Federation, “The black” for 599 rubles — 10 GB traffic, 1 thousand minutes and sms throughout the Russian Federation. In the last two packages included minutes to consider how on-net calls and calls to other operators.
Calls over the limit in a batch fees will cost 1.5 rubles per minute. The cost of an sms over the limit — 1.5 rubles within the network Tele2 and 2.5 rubles — to the subscribers of other operators except for the rate of “Black” where she single — 1.5 rubles.
After the use included in the package of the Internet traffic, the access speed will be limited to 64 KB/s. In this case, subscribers can connect an additional package of 3 GB for a month for 150 rubles or to pay the $ 15 per day for 100MB.
Partner “TMT Consulting” Konstantin Ankilov said that Tele2 tariffs are indeed lower than the competition. “The rates are really good for a large part of the Moscow audience — simple, clear, usually lower than competitors”, he said.
“Rates, of course, significantly lower than the “big three”. People who save money and are determined to seek the best deals, will actively go in Tele2″, — said the head of Association of regional operators Yury Dombrovsky.
“Of course, tariffs Tele2 are cheaper. Another question — will it attract a significant number of subscribers from other operators,” said partner AC&M-Consulting Anton Pogrebinsky.
At the same time a leading analyst of Mobile Research Group Eldar Murtazin believes that the tariffs Tele2 roughly correspond to the current offerings on the market.
At launch the network in Moscow, the company has established 5 thousand base stations (BS) and 2 thousand 3G — LTE on frequencies 800 MHz, 2.1 GHz and 2.6 GHz, said first Deputy CEO Alexander Provotorov Tele2. Most of the BS installed in Moscow, where more capacity is required. At the time of launch it will be available more than 90% of the population of Moscow and more than 75% of the field.
In 2015-2016, the company will focus on expansion of coverage and network capacity, said Provotorov. To fully cover the region with its networks of Tele2 intends to the end of 2016. During this time the company also expects to significantly increase coverage in the metro, where today the network operates only at five stations (“Zyablikovo”, “Troparevo”, “Business center”, “Belarus”, “Kotelniki”). By the end of the year, the company intends to cover an additional 10 to 12 stations and all stations within 1.5-2 years.
Analysts believe that for the first phase of network coverage is sufficient. “It is clear that the “big three” more base stations, but while the Tele2 network is not loaded, 7 thousand base stations is sufficient at the first stage,” — says Pogrebinsky.
“7 thousand base stations is about three times less than that of each competitor. But, for example, is 20 times more than that of “MegaFon” when going to Moscow. Of course, Tele2 will catch up, but it will take years and almost twice more money than is spent now,” says Ankilov.
Since the launch of Tele2 network in Moscow region the contracts will be sold to more than 10 thousand points, of which more than 400 monobrand salons of the operator. Contracts Tele2 also be available to buy in “Euronetwork”, “Messenger”, “Mail of Russia”, “Pyaterochka”, “Eldorado”.
“All subscribers of Moscow has already won, because of the new operator, because operators have already taken steps to retain subscribers, try to improve service, proposed new tariffs, more competitive,” — said Dombrowski.
In General, analysts believe that Tele2 will be able to take a big share in the market, some predict that it will be 10%. However, it will take several years and require significant investment in developing the network. Companies also have to make an effort to retain subscribers.
“I think the success of Tele2’s inevitable, but I don’t expect it to be quick,” said Dombrowski. According to him, now the main obstacle is that Tele2 can not serve the owners of “button” phones, but the penetration of devices that support 3G standards and LTE, will increase, and thus potential abonbaza operator-discounter will expand.
“Subscribers with 3G phones who are looking for lower prices, a more favorable ratio price/quality, of course, will actively go in Tele2, including through the mechanism of MNP (change operator preserving number — ed.),” says Dombrowski. In his opinion, Tele2 in 2018 “could” take 10% of the capital market by subscriber base.
Pogrebinsky found it difficult to estimate what proportion will be able to take Tele2. “It depends on so many factors, it is difficult to imagine. There is also Tele2 and the big three, which can make some steps,” he said.
“Tele2 has a good history of entering markets with high penetrations and several current players. Of course, Moscow is a special region for many reasons, but it seems to me that Tele2 with his approach, of course, have some double-digit market share to obtain. The question is when? in this case is very complicated and strange,” — says Pogrebinsky.
In his view, the main challenge for Tele2 is to keep the engaged subscribers. “I think a lot of people want to try Tele2. But the question is, will they remain”, — he noted
One of the market experts reminds that “the Megaphone” for the first year of operation in Moscow gained 4% market share. “I think Tele2 will gain during the first year by about 6-7% on sim cards, and go 10% over 2 years”, — said the expert, who requested anonymity.
According to the forecast “TMT Consulting”, the market share of Tele2 in the capital in the next 3-5 years will reach about 10%. “For the year such a measure can only be achieved abonbaza catching up, paying for it then high outflow and the fall in profitability,” says Ankilov.
Murtazin predicts that during the year, Tele2 will be able to gain 1 million subscribers in the region, but does not believe that the company has great prospects to occupy a significant market share. “Of course, they will gain abonbaza due to the newness, but the question of what the outflow will be in six months. I think, big enough. The lack of GSM for many a brake,” — says Murtazin.
“According to my information, they have ambitious targets of 10% and above and a half-two years. But I doubt that’s possible,” he added.
“In any case, the next six months, for Tele2 will be very successful from the point of view of sales, connections and other things,” he said.
The “big three” meets rival
Current players of the capital market is not afraid of new competitor.
MTS advises users to be careful while choosing a new operator and “not to fall under the charm of the image of the so-called “discounter”.
By words a press-the Secretary of MTS Dmitry Solodovnikov, now about 80% of the calls of subscribers existing players fall for on-net calls and free for users. At Tele2 in Moscow there are almost no subscribers, and almost all the customer calls will be paid — after all, they will call the “big three” and Tele2 calls these bills on brand market value. He added that the unit cost of 1 MB of Internet traffic at MTS cheaper than Tele2, and at night the Internet is absolutely free
In the “MegaFon” are confident that the arrival of Tele2 and the increased competition will make the company even stronger and will give customers the opportunity to see the high quality of services “the Megaphone”.
“Prices in the communications sector have been steadily reduced, and “Beeline” for a long time leads the trend. Of course, we will think about further development of our proposals”, — said the press-Secretary of “VimpelCom” Anna Imasheva.
“This event (the release of Tele2 — ed.) makes us even more focused on maintaining and strengthening our positions — last year we did a lot of work to increase customer satisfaction and see that our rate of customer loyalty and in Moscow is growing steadily,” said she.