According to a report by the telecom analyst firm, Strand Consult, many mobile broadband operators are not able to cover their costs, as they are forced to offer their services at prices much below the cost of operation.

Strand’s publication is the most recent amongst many such reports, which argue that the current mobile broadband pricing cannot last for too long and it is bound to increase eventually.

In the report, which is titled, “Successful Strategies in the mobile broadband market”, Strand points out that operators are offering a retail price for mobile broadband which does not cover even half of the cost of providing that service. It is due to the fierce competition in this industry that operators have to slash their prices, even in their laptop deals, to such low levels, although the customers are obviously not complaining. Click here for more info on mobile broadband and a free laptop.

However, Strand says that hiking the prices now would not be a wise decision in such a competitive market, as it would only make the customers switch to a competitor’s service. Instead, it suggests that the operators should turn to alternative revenue enhancing solutions and innovative cost reducing methods.

Strand also suggests that operators can put certain restrictions on some aspects of mobile data service like P2P, which provide the least amount of profit margins. Moreover, they can launch some value added services for which the customer can be charged a much higher amount.

This entry was posted on Tuesday, May 26th, 2009 at 6:02 am and is filed under Consumism, Online Technology Resources, Telecommunication Hub. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.