Aggressive marketing and success of new tariffs
Management MTS justly proud unqualified success of two tariff hits, "First" and «RED». For seven months, the number of subscribers of the First "reached the impressive figure 6.5 million, not least due to the extremely successful advertising campaign. Last spring, still remembered the legendary "Jeans-007, and billboards with advertisements of all calls to 7 tsentovpopali the nail. Still, the fare looked much more attractive than "007" with its seven cents only within the network. When in fact it was not so rosy: "First" is the first experience with a tariff fee (11 cents) - not hence the name? In fairness, we note that the transition to rubles subscribers 'First' gave almost 23 kopecks, setting up fee of $ 3.50 USD. arithmetic instead of 3.73. Fortunately, the tariff "Second," we'll probably never see, nor see, and the continuation of these "little tricks" with other operators ("Simply put" at Beeline). The combined efforts of the Communications Ministry and the Federal Antimonopoly Service put an end to attempts to impose a fee for the connection and to "forget" to specify it in advertising. Having considered the case of unfair advertising on Feb. 2, FAS fined MTS for 40 rubles - the amount is small, but all points of the «i» are arranged.
In the presentation, we see an important phrase: "The level of MOU and ARPU subscribers tariffs" First "and« RED »higher than the average subscriber base of MTS. With fare "First" and otherwise can not be, 5.90 rub. in the first minute a beneficial effect on ARPU. But «RED» to a greater extent "works" to increase the MOU (the average number of pronouncing minutes), so as to grow the subscriber base «RED» average minute price has been steadily declining. A year-end 2006 subscribers of the TA was already more than 3 million (including a considerable number have switched to «RED» from other fees). Although we can not forget that the "bias" towards the intranet communication reduces operator costs for interconnect.
War is not the number of subscribers, and the ability to take money from them
In the plate below - revenues of MTS Russia "in millions of U.S. dollars and offered to investors forecast earnings for 2006 and 2007 (financial results for 2006 are not yet published).| Year | 2003 | 2004 | 2005 | 2006 * | 2007 * |
| Revenue MTS Russia (million USD) | 2157.6 | 3044.0 | 3700.6 | ||
| Growth percentage | 41% | 22% | > 20% | 15-17% |
One of the main ways to preserve and enhance the profitability of the company's management sees an increase in ARPU (average revenue per user). In 2005 the figure was $ 8 in 2006 - more than $ 7.6 (projected) in the current year is expected to achieve average ARPU increasing to more than $ 8. And for new subscribers do not assign much hope: as was stressed at a press conference, mostly expected to increase revenues from users "with the experience."
Targeting Market Segmentation
Gone are the days when the subscriber base is conventionally divided into two groups: "hard" contract subscribers and the "light" consumers of prepaid-tariffs. Today's saturated market realities are such that to maintain acceptable ARPU and reduce churn in the MTS decided to focus on the development of targeted tariff plans for specific user groups. According to Leonid Melamed, MTS is not going to position itself as a "cheap" operator, but intends to offer something interesting and attractive to all groups of potential consumers. Not only for new subscribers, but also as an alternative for those who are thinking about switching carriers.Judging by the lines in the column "Attracting new customers" in the foreseeable future we can expect the target rate plans with the provisional name "Farmer", "Retired" and "Dite". And then - who knows! - Is not excluded and a new hypostasis "WE", entitled "Mothers and Daughters."
February 1 Ukraine starts Rates «JEANS-Ten, it looks like a curious hybrid of the" We "MTS" I want to say "Beeline. Within the group formed out of ten customers min is 4.5 times cheaper, and within the network, beginning with the fourth pronounced minutes (per day), the relationship is three times cheaper. Plus 10 free SMS-to-week.
Policies to reduce costs in the action
Here everything goes according to plan and program to reduce costs are not going to collapse. Network infrastructure, unified, as a result is expected to remain in the network equipment is not more than two vendors within a single region and no more than three - within the country. By "selective outsourcing contact center" means, as we understand it, including moving the contact center in Ryazan, where life is quieter and cheaper. Well, salary, respectively ... The main costs for a new billing system is already behind us, at the request of management, currently 99% of subscribers are already served by the system FORIS. As for the "downsizing", then here are not necessarily talking about layoffs, "decline" including the means and the rapid growth of subscriber base. Were given a curious figure: in 2005, one employee of the company had 2,000 subscribers at the end of last year - 2300, and by the end of this year planned to do one employee by 2700 subscribers. That's right, business process automation and optimization of human resources. Not for nothing is one of the strategic objectives dubbed "MTS Russia" - "Getting into the top ten best employers in Russia."