Tuesday, April 13, 2010
Last week, MTS launched a new service aimed at encouraging business enterprises to adopt mobile communications. The new service, dubbed “Business Territory”, provides special calling rates for mobile communications both within a customer’s office and extending 500 meters from the office location.
Though prices vary by region, in Moscow the service costs 1,200 rubles per month per line, and each line gets 3,000 calling minutes per month. The service is an add-on to current corporate tariff plans allowing enterprises to switch to mobile communications at a price comparable to fixed line. The service should be of particular interest to companies that do not have installed fixed-line telephony, something common among small businesses and non-commercial ventures.
We are noticing that many enterprises are gradually increasing their usage of mobile compared to fixed-line telephony, and we expect the new service to be of interest to over 7% of our corporate subscribers and up to 16% of corporate subscribers who are not yet clients of MTS. According to research conducted by MTS, 42% of surveyed companies would have chosen only mobile communications provided the associated costs were comparable to those of a fixed line service.
MTS is providing a great degree of flexibility with the new office zone billing service. All corporate customers, ranging from small businesses to large corporations, can subscribe to the service and combine it with virtually any tariff plan. Customers can select specific locations for the special zones and can change them in case of office relocation. A company can add the service to as many mobile lines as it deems necessary.
According to the research company ROMIR, at the end of 2009, 49% of surveyed companies in Russia were enterprise customers of MTS.
Friday, September 25, 2009
By Timothy Doherty, Research Analyst for Small and Medium Business Mobility Markets for IDC
IDC has recently published a report
examining the small and medium business initiatives of MTS, and we wanted to share the key insights here on the MTS IR Blog.
As in other regions worldwide, the small and medium-business (SMB) market in Russia represents a significant untapped revenue opportunity for operators, but presents a number of challenges. SMBs typically have fewer IT resources than large enterprises to rely on when making technology purchase decisions, making customer education vital. Although the SMB market in aggregate constitutes a substantial opportunity, each individual customer represents a relatively modest volume; efficiencies in marketing and ongoing customer support are therefore of paramount importance. MTS has implemented a number of strategies in its core Russian market to target the small and medium-sized business market.
Like SMB-savvy operators in the United States and Western Europe
, MTS is leveraging an SMB web portal to better manage its SMB customers. Online portals not only allow direct payments, but also let customers explore and opt in and out of services. Given the vast size of Russia, the web portal is one of the efficient ways MTS can interact with subscribers and provide customer support.
While enterprises frequently have a dedicated operator support representative to rely on, this model is not cost-effective for SMBs. Still, to cultivate customer loyalty and sell deeper into customers, some sort of support relationship must exist. Akin to small business specialists at other operators in more developed markets in North America and Europe, MTS has small business curators: development managers who analyze service usage by customers and promote the benefits of additional services. The curator program allows MTS to educate its existing customer base and sell through additional phone lines and services; since the launch of the program, MTS reports that a typical small business customer initially purchases two lines, but adds another four lines inside the first 6 months.
To get more insight into the MTS work in the SMB market, please refer to our recent report