UK Mobile Industry Essay Example | Topics and Well Written Essays - 3250 words

UK Mobile Industry - Essay ExampleIn recent years however, the number of potential new customers have fallen drastically hence customer base has become the most critical resource for mobile operators for sustained profitability. As the scope for acquiring first time users decreases, operators increasingly hope on luring customers who choose to switch networks while at the same time minimizing their own churn rates.The UK telecom market is one of the most dynamic and warlike market in the world. Mobile penetration rates hover around 76%, there ar four players operating in the market vying for just about the entire UK population. The key players besides Orange areVodafone The global telecom giant is the largest company in Britain, in terms of market capitalization. It poses strong contention for Orange, as its market share of 25% is marginally slight than that of Orange. Recent developments at Vodafone Plc, like the tie up with Google for introducing search and mapping services o n phones should be especially taken note of by Orange.One2One One2One forayed into the UK market in 93.It has a substantial market presence, as 20% of the total mobile users are One2One users. In terms of network coverage, it has the lowest coverage among the four operators. A huge proportion of its subscribers are pay as you go.Virgin Although a separate service operator, Virgin uses the One2One network. It sourers only pay as you go packages.Briefly, the characteristics of the UK telecom market are1. UK mobile services prices are relatively twopenny-halfpenny compared to other OECD countries.2. Consumer satisfaction levels with the key mobile players are high.3. Competetion based on quality is another characteristic of the UK mobile market.4. Penetration rate is 76% which indicates less scope for growth.Challenges faced by mobile operators in UK.1. Formal regulation of the mobile sector is proposed to be reduced to minimum.2. Consumer awareness of different packages and tariffs carcass low.3. Prices of off net calls between different networks and international roaming rates remain particularly high.4. Full benefits of mobile number portability are yet to be realized, as the set of locking handsets to SIM cards inhibits the consumers ability to switch networks.5. Massive investments in 3G services have been made but the prospect of return on investment remains uncertain.OrangeThe largest of UKs four mobile operators, Orange UK has been a success story. It has defended the top s parcel out in one of the most dynamic marketplaces of Europe, despite being the quaternate entrant. The main drivers have been-clear and comprehensive pricing policies, attractive service plans and excellent customer service.Also, Orange UK is one of the most recognized brands in England possessing a lot of leverage.Product Range and Service PortfolioIn the voice services segment, two main types of services are available from Orange. Pay as you go is a scheme in which no monthly r ental or obligation has to paid, customers are only billed for their call