Tariffs VS VASes

I believe one of main problems here in Russia is that MNOs are trying to launch new tariff for different types of subscribers differentiation. During my study I found tariffs for:

• Social groups (tariff for military men from Beeline, students from Megafon, children)


• Typical usage scenarios (Mobile Internet, Messaging, Long calls, Typical Mobile calls,Typical fixed calls)


• Geographical (Moscow suburban)


• Holidays (New Year tariff from MTS - Does anybody want it???)


• Subscriber mentality ("Sharp billing" :-) from Beeline, about 5 tariffs "Business usage" from MTS - they think that Corporate pack of tariffs is not enough)


• Amount of included services (minutes of calls, SMS, MMS)

In same time almost all European MNOs offer Price based differentiation of tariffs and sell services (so called VASes). What Subscriber is realy care about in choosing tariff is price. Let Subscriber choose amount of money to spend on core services and after that let him choose additional services.

I'm sure that Jack Trout idea about positioning works perfectly and it describes why it is almost impossible to decide difference between our MNOs. "Great Three" MNOs have more than 15 tariffs (I'd like to mention that Megafon policy is much better that others) and it is hard to decide which suits my needs. I tried to choose new MNO provider about two months ago but I so tired investigating Beeline portal that I decided that it is too early to change something.

Tariff is a product for MNO. MNO has to decide product line ad it should be clear for Subscriber which product suits his needs. There are a lot of examples in Jack Trout book called "The new positioning". It worths mentioning Chevrolet example - on early success stage they had cheap family cars and now when they have broad range of products they are experiencing troubles. What is Chevrolet now? It is not family car anymore. It competes with different car models of same corporation.

Exactly the same we see on Russian market of mobile communication. Are there many mothers decided to choose Beline because of "Mobile Mother" tariff which includes special wap portal and direct line to mothers consultation? I don't tink so. There is no clear product line here hence there is no clear targeting. Launching new tariffs brings Subscribers to confusion. If I'm a physical subscriber why I'm offered by range of business tariffs from MTS? These mistakes don't allow me to choose good for me operator:

• Is MTS targeted on business users?


• Is Megafon targeted on low cost communicatios?


• Is Beeline targeted in family users?


• May be they are targeted on all segments? It doesn't work with such big amount of products...

Just think about 29 MTS tariffs, 25 Beeline tariffs and 13 Megafon tariffs.

Do you understand difference between "Exciting things 08", "Monster of talking" and "Monster of talking+"? Are these products differentiated enough to be different products? I'm sure that NO.

MNOs should drop their tariffs and get new ones based on price. After that tariff constructor from broad range of services should be provided. These addons will help Subscriber to get needed services from MNO and pay optimized price for them. I think good examples are:

• http://www.o2.co.uk/mobilestariffs/tariffs/paymonthly/boltons


• http://www.three.co.uk/Pay_As_You_Go/Do_more_with_Add_ons

This approach will:

• Target MNO on solving subscriber needs!


• Simplify decision to be MNOs Subscriber


• Concentrate Subscriber on MNOs VASes


• Make MNO's product line clear

Dear colleagues, I'm very interested in your opinion regarding this theme. Feel free to send your comments :-)

Thanks,

Denis.