Monday, 17 December 2018

Credit where credit's due – Reducing churn and boosting ARPU

By Chris Kelly, Total Telecom
Friday 09 March 18

Total Telecom met with Luciano Ramos, group CTO for Cable and Wireless, and Steve Polsky, founder and CEO of financial access firm Juvo, to discuss how the provision of small scale credit is revolutionising the way telcos do business throughout the Caribbean and Latin America

All across the developing world, telcos are facing the same quandary: how do you reduce churn and cultivate brand loyalty in markets with very low Average Return Per User (ARPU)? By some estimates, 77 per cent of global mobile phone users do so on a pre-paid basis. While pre-paid margins are significantly healthier than post-paid rates, both in terms of per minute voice call charges and per Mb data consumption, the relationship between customer and operator is fleeting, with customers being able to switch with consummate ease between pay as you go providers.  Nowhere is this problem more evident than in the Caribbean, where extremely low ARPU and low brand loyalty are creating a real headache for operators.  "For us – 95% of our customer base is pre-paid. We operate across the whole of the Caribbean and Central America. It's all related to the local economy of the region and how people spend their money," said Luciano Ramos, group CTO at Cable and Wireless Communications…

All across the developing world, telcos are facing the same quandary: how do you reduce churn and cultivate brand loyalty in markets with very low Average Return Per User (ARPU)? By some estimates, 77 per cent of global mobile phone users do so on a pre-paid basis. While pre-paid margins are significantly healthier than post-paid rates, both in terms of per minute voice call charges and per Mb data consumption, the relationship between customer and operator is fleeting, with customers being able to switch with consummate ease between pay as you go providers.  Nowhere is this problem more evident than in the Caribbean, where extremely low ARPU and low brand loyalty are creating a real headache for operators.  "For us – 95% of our customer base is pre-paid. We operate across the whole of the Caribbean and Central America. It's all related to the local economy of the region and how people spend their money," said Luciano Ramos, group CTO at Cable and Wireless Communications…

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