… for a UK telecom company via pricing elasticity analysis

Telecom-2

 

Business Challenge

  • A UK telecom company wanted to estimate the potential impact of reduced outgoing mobile rates on revenues and margins

Analytics Approach

  • Two comparisons were used to estimate usage at different price points (for each time of day bucket)
    • Client’s usage for outgoing landline and mobile calls
    • Client with BT on mobile usage and pricing
  • Usage at various price points and the optimal price points (for maximizing margins) were estimated

Impact

  • Client adopted the recommendations and lowered their outgoing mobile prices during the week and increase their rates during weekends

Telecom elasticity