Exposing or how to be friends with mobile operators
Operation “disclosure”: veiled payments in the tariffs of operators or how to make friends with the latest
prompted this to write " habrahabr.ru/blogs/strange_things/61509 "
')
Introducing new tariff plans to the market, mobile operators almost always use the practice of veiled payments to some extent, hiding part of the figures behind various notes, indicating them in small print or resorting to other tricky techniques. On the one hand, this is fully justified - this is what advertising is needed to emphasize the advantages of the product. But on the other hand, if tariffs are advertised (read numbers), this practice can completely confuse the subscriber, because far from the most advantageous offers are often hidden behind the advertised zeros.
The illusion of "expensive" and "cheap" operators
A few years ago, domestic mobile operators actively competed with each other in the noble cause of reducing tariffs, then during 2007 the average cost of a minute of conversation did not significantly decrease. The period when the market grew by 100 percent or more per year was also left behind, and free distribution of starter packs did not bring operators the desired increase in subscriber base for a long time. Therefore, those new offers and promotions that mobile operators are introducing today are aimed mostly at preserving their own subscriber base, and, of course, luring subscribers from competitors. This is a normal practice, which successfully works in the communication markets of those countries where the majority of residents already use mobile services. At the same time, it is quite logical that the average subscriber still hopes that tariffs will decrease and decrease significantly. To verify this, it is enough to listen to the discussion of advertising of mobile operators, for example, in public transport. A few months ago, on the eve of the re-branding of the UMC operator, the author of the article personally witnessed such a conversation:
- Look, UMC is becoming MTS, I wonder, will tariffs be lowered?
- I think yes. I have a brother in Moscow, who says that the cheapest price on MTS is now.
- Well, I still have a good time on Beeline, nobody has done anything cheaper than 29 kopecks. Although, if they do it by 10, I will move on.
The above dialogue reflects the fact that the stereotype that there are “cheap” and “expensive” operators has taken root in the minds of the mass user of communication services. In fact, several years ago, at the moment when life :) entered the market and the rapid development of URS (that is, Beeline), there were, indeed, excesses in price policy. In an effort to gain subscriber base as quickly as possible, newbies were not embarrassed by dumping, offering cheaper prices than market ones, while large operators tried to save their income, and if they lowered prices, they tried to do it within temporary shares. Today, price wars cannot afford not only the “second echelon” operators, but even the newcomer - Utel, who started working in the market not with aggressive marketing campaigns or package distribution. The reason for this is a lot of factors, ranging from the cost of calls and boundary tariffs for access to a fixed network, which do not depend on mobile operators, and ending with a relatively low level of income from additional services. It is the high popularity and, accordingly, the profit from additional services that can allow operators to reduce the rates for voice traffic without risking a loss of revenue. In other words, a significant reduction in prices for voice communication is possible only when subscribers will spend money on the mobile Internet, MMS and other additional services.
The pitfalls of mobile marketing
In conditions when the operator does not have the opportunity to reduce real prices, it has become a difficult task for marketers to attract subscribers with existing rates, presenting them in the most attractive way. The most effective approach is the creation of customer-oriented offers, that is, tariffs directed to a particular category of subscribers. For example, some tariff plans make it cheaper to communicate with family, others have a pronounced corporate focus and are more suitable for businessmen. This is quite an effective way to attract new customers, it works not only in the mobile market, but also in any other area. Recall the classification of cars, clothing and other goods. The only disadvantage of such a policy is that competitors actively use it, therefore, choosing a tariff plan, a student or businessman usually sees customer-oriented advertising on television or looks through booklets of several operators at once. And at this moment the decision is usually made in favor of the one that offers more affordable prices, even if the difference is 5-10 kopecks per minute of conversation. It is here that all sorts of tricks are used, aimed at creating the effect of cheap tariffs, veiling them under various additional payments.
Examples of screaming headlines when promoting new shares of mobile operators. A potential user is attracted by the opportunity to receive 10 thousand minutes as a gift, and only after reading the details, the subscriber understands that he will receive 250 minutes a week, which can only be used from 18:00 to 6 in the morning, that is, not in the daytime.
Below we present the classic methods that mobile operators use to create the appearance of cheap tariffs, but at the same time save their income:
Connection fee (CCD)
This payment is still the subject of debate, including at the level of state bodies. It is proved that the majority of calls on the mobile lasts 1-2 minutes, therefore, you can make the subscriber pay more by raising the cost of the first minute, which is done with the help of the connection fee. This allows the operator to set, for example, a zero tariff for calls within the network or within the family. The lack of profit from voice traffic is more than worth the CCD.
At one time, the issue of the expediency of the CCD was even discussed at the level of the Antimonopoly Committee, which obliged the operators to refuse this payment. As a result, the operators presented alternative tariff plans without a connection fee, but with a higher cost per minute. The resulting prices were high, but fair, and as a result, the mass subscriber, accustomed to the stated low prices, did not take this initiative.
Call duration limit
Almost always, when the subscriber is offered a zero tariff for calls to certain numbers, the operator sets a limit on the duration for one such “free” call. This is done under the specious pretext that the subscriber may accidentally forget to complete the call, which will last several hours, as a result of which the network will be overloaded. At the same time, regular breaks at intervals of 10, 15 or 30 minutes force the subscriber to call back and pay for the connection, that is, “free” calls are not at all free. By the way, very often the maximum duration of a call is indicated not in minutes, but in seconds. Even if the subscriber finds a note indicating this, made in small print, not everyone will begin to translate seconds into minutes to estimate the actual duration.
Tax Pension Fund (PF)
Deduction to the Pension Fund is 7.5% of the cost of any telecommunication services, its mobile operators are not included in the stated prices. As a result, a minute of conversation, which costs 1 hryvnia at the price, costs 1, 07 - 1.08 UAH. The same applies to all additional services and even the connection fee, which in fact amounts not 29, but 29 kopecks, including PF. The fact that this tax is not taken into account in the tariffs is explained by the fact that tax rates in our country can vary, and the constant revision of tariffs will inconvenience both the operator and the subscriber. The reason is quite specious, although in reality in our memory the tax in the pension fund changed only once, and then only by 1.5% (from 6% to 7.5%).
Fee for changing the tariff plan
Very often, offering to connect to a temporary action with low tariffs or free minutes, the operator sets a fee for participation (or for a tariff change), which compensates for losses from price reductions. Let's carry out a simple calculation: the mobile operator N holds a promotion with low tariffs of 1 month duration, as a result of which it receives less 30% of the profits from subscribers who participate in the promotion. 10 thousand people are connected to the action, each of which spends 25 hryvnia per month on mobile communication. As a result, the operator theoretically loses 30,000 hryvnias in 30% tariff reductions. At the same time, if each subscriber pays 15 hryvnias for participation in the action, it will turn out 150 thousand hryvnias, that is, the profit will twice cover the costs. Even if the term of the promotion is extended, the operator will still benefit, as this will increase the subscriber base.
Call discount
Alas, almost no operator offers a discount on calls in its pure form, since this would allow the subscriber to spend less. The main goal of any marketing campaigns, not only in mobile communications, is to encourage the subscriber to use more services and, accordingly, pay more. As a result, the discount is provided in the form of the amount that goes to the subscriber’s account. For example, if a subscriber honestly earned a discount of 20% on any loyalty program, this does not mean that all calls will now be 20% cheaper for him. In most cases, spending 50 hryvnia per month on mobile communications, he will receive a bonus in the form of 10 hryvnia per account at the beginning of the next month. Essentially the same thing, but you need to consider that the bonus will not allow you to refill your account less often or to save money. Having received such a bonus, the majority of subscribers will find this an excellent opportunity to talk heart to heart with an old friend or family, after which, as usual, they will go to the store for a new scratch card.
Accrual of bonuses in parts
Operators often hold promotions, during which they offer 50, 100 or more hryvnias as a gift. Before connecting in such cases, you should always specify whether the entire amount will be credited to the account at once. The fact is that in 99% of cases the amount is not charged immediately, but in parts from 3 months to a year. Moreover, often the next part of the amount comes only if the subscriber regularly replenishes his account.
Actual and stated prices
Tariff plan "MTS First"
To calculate, we chose the MTS First tariff plan. The choice was random, on the site of this tariff could be any other, and the table shows only the methodology of our calculations, which can and should be applied to any operator offer before being connected. We chose three time intervals - the first minute, 5 minutes (the duration of the usual working conversation) and 15 minutes (conversations with friends and relatives). In this case, the table takes into account absolutely everything, that is, the tax to the Pension Fund, the maximum duration of one conversation, and so on. All this information is taken from open sources (in this case, the website of the mobile operator), it is also present in one form or another in advertising booklets. Our task was only to bring together everything that is written under footnotes and asterisks in small print, and include it in the final tariff. The only thing that was not taken into account is the quality of the network. It is impossible to calculate the percentage of random communication breaks, there is no such statistics in open sources, so we simply did not take them into account. At the same time, they can greatly increase the total average cost per minute due to the connection charge, which is charged each time you make a call.
Looking for the perfect fare
To say that veiled tariffs are a total evil would be unfair, although in the consumer credit market, where users are just as shocked by advertising with huge zeros, the National Bank is systematically trying to restore order. Ideally, of course, it would be right to provide the client with fair prices, without forcing him to arm himself with a calculator and calculate how much they will take from him in reality. This is reminiscent of the situation when you buy groceries in a supermarket, and already at the checkout it turns out that this tax does not include any tax, and in general, this price is valid only from the third unit of product purchased or relevant from 18.00 to 24.00. It looks ridiculous, but if we consider that communication services are the same product as any other, we will have to admit that such rules are in effect on the domestic mobile communications market. On the other hand, mobile operators are set in conditions when such tricks with numbers are the only way to attract a potential client, and not taking advantage of this means losing advantages over competitors. In this publication, including when calculating the real cost of services in the framework of the proposed example, we did not at all set a goal to convict anyone of a lie. In the end, the task of marketers is to highlight the benefits of a proposal and it would be ridiculous to scold people who are just doing their job well. At the same time, the task of the subscriber is to clearly calculate how much a new tariff will have to be paid, taking into account all the veiled payments that are hidden in the advertising booklets for footnotes and asterisks. For this you need to understand that operators cannot provide completely free or very cheap services. In most cases, the zeros that we see in the advertisement are compensated for by the connection fee or this price is valid only from the second minute of the call. As an option, cheap calls in one direction are compensated by more expensive ones - in another.
Each in its own way answers the question "What should be the ideal rate?". Probably, this should first of all be an honest tariff, where in a minimum number of digits all taxes and overpayments would be taken into account. However, the consumer must be ready for such a proposal. Practice shows that a mass subscriber is more likely to connect to the package, in which advertising the cost per minute is 20-30 kopecks, with the real average cost of the first minute 75 kopecks, than to the tariff, in which the real price is honestly declared.
prompted this to write " habrahabr.ru/blogs/strange_things/61509 "
')
Introducing new tariff plans to the market, mobile operators almost always use the practice of veiled payments to some extent, hiding part of the figures behind various notes, indicating them in small print or resorting to other tricky techniques. On the one hand, this is fully justified - this is what advertising is needed to emphasize the advantages of the product. But on the other hand, if tariffs are advertised (read numbers), this practice can completely confuse the subscriber, because far from the most advantageous offers are often hidden behind the advertised zeros.
The illusion of "expensive" and "cheap" operators
A few years ago, domestic mobile operators actively competed with each other in the noble cause of reducing tariffs, then during 2007 the average cost of a minute of conversation did not significantly decrease. The period when the market grew by 100 percent or more per year was also left behind, and free distribution of starter packs did not bring operators the desired increase in subscriber base for a long time. Therefore, those new offers and promotions that mobile operators are introducing today are aimed mostly at preserving their own subscriber base, and, of course, luring subscribers from competitors. This is a normal practice, which successfully works in the communication markets of those countries where the majority of residents already use mobile services. At the same time, it is quite logical that the average subscriber still hopes that tariffs will decrease and decrease significantly. To verify this, it is enough to listen to the discussion of advertising of mobile operators, for example, in public transport. A few months ago, on the eve of the re-branding of the UMC operator, the author of the article personally witnessed such a conversation:
- Look, UMC is becoming MTS, I wonder, will tariffs be lowered?
- I think yes. I have a brother in Moscow, who says that the cheapest price on MTS is now.
- Well, I still have a good time on Beeline, nobody has done anything cheaper than 29 kopecks. Although, if they do it by 10, I will move on.
The above dialogue reflects the fact that the stereotype that there are “cheap” and “expensive” operators has taken root in the minds of the mass user of communication services. In fact, several years ago, at the moment when life :) entered the market and the rapid development of URS (that is, Beeline), there were, indeed, excesses in price policy. In an effort to gain subscriber base as quickly as possible, newbies were not embarrassed by dumping, offering cheaper prices than market ones, while large operators tried to save their income, and if they lowered prices, they tried to do it within temporary shares. Today, price wars cannot afford not only the “second echelon” operators, but even the newcomer - Utel, who started working in the market not with aggressive marketing campaigns or package distribution. The reason for this is a lot of factors, ranging from the cost of calls and boundary tariffs for access to a fixed network, which do not depend on mobile operators, and ending with a relatively low level of income from additional services. It is the high popularity and, accordingly, the profit from additional services that can allow operators to reduce the rates for voice traffic without risking a loss of revenue. In other words, a significant reduction in prices for voice communication is possible only when subscribers will spend money on the mobile Internet, MMS and other additional services.
The pitfalls of mobile marketing
In conditions when the operator does not have the opportunity to reduce real prices, it has become a difficult task for marketers to attract subscribers with existing rates, presenting them in the most attractive way. The most effective approach is the creation of customer-oriented offers, that is, tariffs directed to a particular category of subscribers. For example, some tariff plans make it cheaper to communicate with family, others have a pronounced corporate focus and are more suitable for businessmen. This is quite an effective way to attract new customers, it works not only in the mobile market, but also in any other area. Recall the classification of cars, clothing and other goods. The only disadvantage of such a policy is that competitors actively use it, therefore, choosing a tariff plan, a student or businessman usually sees customer-oriented advertising on television or looks through booklets of several operators at once. And at this moment the decision is usually made in favor of the one that offers more affordable prices, even if the difference is 5-10 kopecks per minute of conversation. It is here that all sorts of tricks are used, aimed at creating the effect of cheap tariffs, veiling them under various additional payments.
Examples of screaming headlines when promoting new shares of mobile operators. A potential user is attracted by the opportunity to receive 10 thousand minutes as a gift, and only after reading the details, the subscriber understands that he will receive 250 minutes a week, which can only be used from 18:00 to 6 in the morning, that is, not in the daytime.
Below we present the classic methods that mobile operators use to create the appearance of cheap tariffs, but at the same time save their income:
Connection fee (CCD)
This payment is still the subject of debate, including at the level of state bodies. It is proved that the majority of calls on the mobile lasts 1-2 minutes, therefore, you can make the subscriber pay more by raising the cost of the first minute, which is done with the help of the connection fee. This allows the operator to set, for example, a zero tariff for calls within the network or within the family. The lack of profit from voice traffic is more than worth the CCD.
At one time, the issue of the expediency of the CCD was even discussed at the level of the Antimonopoly Committee, which obliged the operators to refuse this payment. As a result, the operators presented alternative tariff plans without a connection fee, but with a higher cost per minute. The resulting prices were high, but fair, and as a result, the mass subscriber, accustomed to the stated low prices, did not take this initiative.
Call duration limit
Almost always, when the subscriber is offered a zero tariff for calls to certain numbers, the operator sets a limit on the duration for one such “free” call. This is done under the specious pretext that the subscriber may accidentally forget to complete the call, which will last several hours, as a result of which the network will be overloaded. At the same time, regular breaks at intervals of 10, 15 or 30 minutes force the subscriber to call back and pay for the connection, that is, “free” calls are not at all free. By the way, very often the maximum duration of a call is indicated not in minutes, but in seconds. Even if the subscriber finds a note indicating this, made in small print, not everyone will begin to translate seconds into minutes to estimate the actual duration.
Tax Pension Fund (PF)
Deduction to the Pension Fund is 7.5% of the cost of any telecommunication services, its mobile operators are not included in the stated prices. As a result, a minute of conversation, which costs 1 hryvnia at the price, costs 1, 07 - 1.08 UAH. The same applies to all additional services and even the connection fee, which in fact amounts not 29, but 29 kopecks, including PF. The fact that this tax is not taken into account in the tariffs is explained by the fact that tax rates in our country can vary, and the constant revision of tariffs will inconvenience both the operator and the subscriber. The reason is quite specious, although in reality in our memory the tax in the pension fund changed only once, and then only by 1.5% (from 6% to 7.5%).
Fee for changing the tariff plan
Very often, offering to connect to a temporary action with low tariffs or free minutes, the operator sets a fee for participation (or for a tariff change), which compensates for losses from price reductions. Let's carry out a simple calculation: the mobile operator N holds a promotion with low tariffs of 1 month duration, as a result of which it receives less 30% of the profits from subscribers who participate in the promotion. 10 thousand people are connected to the action, each of which spends 25 hryvnia per month on mobile communication. As a result, the operator theoretically loses 30,000 hryvnias in 30% tariff reductions. At the same time, if each subscriber pays 15 hryvnias for participation in the action, it will turn out 150 thousand hryvnias, that is, the profit will twice cover the costs. Even if the term of the promotion is extended, the operator will still benefit, as this will increase the subscriber base.
Call discount
Alas, almost no operator offers a discount on calls in its pure form, since this would allow the subscriber to spend less. The main goal of any marketing campaigns, not only in mobile communications, is to encourage the subscriber to use more services and, accordingly, pay more. As a result, the discount is provided in the form of the amount that goes to the subscriber’s account. For example, if a subscriber honestly earned a discount of 20% on any loyalty program, this does not mean that all calls will now be 20% cheaper for him. In most cases, spending 50 hryvnia per month on mobile communications, he will receive a bonus in the form of 10 hryvnia per account at the beginning of the next month. Essentially the same thing, but you need to consider that the bonus will not allow you to refill your account less often or to save money. Having received such a bonus, the majority of subscribers will find this an excellent opportunity to talk heart to heart with an old friend or family, after which, as usual, they will go to the store for a new scratch card.
Accrual of bonuses in parts
Operators often hold promotions, during which they offer 50, 100 or more hryvnias as a gift. Before connecting in such cases, you should always specify whether the entire amount will be credited to the account at once. The fact is that in 99% of cases the amount is not charged immediately, but in parts from 3 months to a year. Moreover, often the next part of the amount comes only if the subscriber regularly replenishes his account.
Actual and stated prices
Tariff plan "MTS First"
To calculate, we chose the MTS First tariff plan. The choice was random, on the site of this tariff could be any other, and the table shows only the methodology of our calculations, which can and should be applied to any operator offer before being connected. We chose three time intervals - the first minute, 5 minutes (the duration of the usual working conversation) and 15 minutes (conversations with friends and relatives). In this case, the table takes into account absolutely everything, that is, the tax to the Pension Fund, the maximum duration of one conversation, and so on. All this information is taken from open sources (in this case, the website of the mobile operator), it is also present in one form or another in advertising booklets. Our task was only to bring together everything that is written under footnotes and asterisks in small print, and include it in the final tariff. The only thing that was not taken into account is the quality of the network. It is impossible to calculate the percentage of random communication breaks, there is no such statistics in open sources, so we simply did not take them into account. At the same time, they can greatly increase the total average cost per minute due to the connection charge, which is charged each time you make a call.
Looking for the perfect fare
To say that veiled tariffs are a total evil would be unfair, although in the consumer credit market, where users are just as shocked by advertising with huge zeros, the National Bank is systematically trying to restore order. Ideally, of course, it would be right to provide the client with fair prices, without forcing him to arm himself with a calculator and calculate how much they will take from him in reality. This is reminiscent of the situation when you buy groceries in a supermarket, and already at the checkout it turns out that this tax does not include any tax, and in general, this price is valid only from the third unit of product purchased or relevant from 18.00 to 24.00. It looks ridiculous, but if we consider that communication services are the same product as any other, we will have to admit that such rules are in effect on the domestic mobile communications market. On the other hand, mobile operators are set in conditions when such tricks with numbers are the only way to attract a potential client, and not taking advantage of this means losing advantages over competitors. In this publication, including when calculating the real cost of services in the framework of the proposed example, we did not at all set a goal to convict anyone of a lie. In the end, the task of marketers is to highlight the benefits of a proposal and it would be ridiculous to scold people who are just doing their job well. At the same time, the task of the subscriber is to clearly calculate how much a new tariff will have to be paid, taking into account all the veiled payments that are hidden in the advertising booklets for footnotes and asterisks. For this you need to understand that operators cannot provide completely free or very cheap services. In most cases, the zeros that we see in the advertisement are compensated for by the connection fee or this price is valid only from the second minute of the call. As an option, cheap calls in one direction are compensated by more expensive ones - in another.
Each in its own way answers the question "What should be the ideal rate?". Probably, this should first of all be an honest tariff, where in a minimum number of digits all taxes and overpayments would be taken into account. However, the consumer must be ready for such a proposal. Practice shows that a mass subscriber is more likely to connect to the package, in which advertising the cost per minute is 20-30 kopecks, with the real average cost of the first minute 75 kopecks, than to the tariff, in which the real price is honestly declared.
Source: https://habr.com/ru/post/61560/
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