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The arrival of Wom on the domestic market promises to shake up the Colombian telecommunications sector, not only with the style and the harsh and direct messages to competitors that the brand addressed to its official arrival, but because of the change that would have been generated in the offers and current business strategies.
(Read: “We come to conquer our customers without tricks”)
That said, the country’s top three brands, Claro, Movistar, and Tigo, are already advancing in year-end offers and the different options they have for their customers in order to counter new competition, while making it clear that they will continue to grow ahead of this. new reality in the sector.
(Read: Claro spoke about the arrival of the new operator in Colombia)
In this scenario, Movistar was the first to launch its strategies, becoming, for example, a sponsor of the Estéreo Picnic Digital 2020, which will be held this time from the Movistar Arena.
And, of course, he has begun to launch his own strategies with which he intends to win customers in a more competitive market. One example was through aggressive offerings, which allowed new or existing customers to combine their mobile and stationary products on a single bill, speeds of over 150MB fiber optic, and with additional benefits such as inclusion of Netflix or 2×1 sales on cell phones.
“50 days after the end of a year that no one will forget, we wanted to bring Christmas to our prepaid, postpaid and fixed customers, so that they can enjoy the best services and, above all, represent significant savings, as well as great benefits. And better technology ”said Luis Germán Peña, Marketing Director of Movistar Colombia.
On Claro’s part, one of the bets is that postpaid and prepaid customers will be able to use WhatsApp and Facebook without consuming data.
“We know the importance of being connected and being able to use Facebook and WhatsApp, therefore, as part of our year-end surprises, we announce that our customers will be able to use them without fear of consuming data or planning the balance with downloads.
More and more Colombians are using these social networks to communicate and much more at Christmas, when they want to make calls or video calls with family and friends who are far away, post videos or make lives, “said Andrés Carlesimo, B2C Product Director of Claro.
Another bet is that of the presale of the iPhone 12, as the brand will offer the new line at discounted prices to acquire the new equipment.
“During the pandemic, we achieved coverage of 1,067 municipalities with 4G technology, an important milestone for the company, which in the last 20 years has invested 15,000 million dollars in the telecommunications sector, reaching 99% of the municipal capitals. For this reason, in over 60% of these regions there is only the 4G coverage of Claro ”, said Carlesimo.
For its part, Tigo has a day before the launch of Wom, launched a new advertising campaign. According to the company, “they are really tired” and have built a network that will free users, certainly speaking of the distribution in the 700 MHz band, they also have a free WhatsApp offer for days of prepaid recharge, among others.
WELCOME TO THE COMPETITION
After the announcement of Wom’s arrival in the country, Claro explained that he is convinced that healthy competition is essential for the well-being of customers.
“More in a market like Colombia, where you can choose from 12 mobile service operators. At Claro we are ready to give everything for all Colombians, which is why over the past 20 years we have invested nearly $ 15 billion to increase our reach, improve customer service, work on digital transformation processes and build the best data centers to deliver. the best offer of services ”, they indicated in the company.
Furthermore, they stressed that competition is welcome, “since it shows that the Colombian market is dynamic, but always in compliance with Colombian rules and laws that are applicable to everyone”.
Meanwhile, Marcelo Cataldo, president of Tigo, added that it is “Avantel himself. Too bad the event wasn’t for everyone. It was a launch in English and in Colombia we speak Spanish. We insist: anyone can joke, scream and offend. This, in this age, is easy. What is and will always be complex is to have coherence between speech and actions, “he said
INVESTMENT OR DOMINANCE?
According to the international consulting firm Analysys Mason, the price of 1.5GB of mobile Internet in the country is double that of other countries in the region such as Bolivia, Mexico and Chile (adjusting the purchasing power), which indicates that a Colombians have to allocate more of their income than in most of South America and Mexico.
And this is precisely the landscape that Wom promises to change with its arrival in the country and its launch, as in Chile in 2015.
According to Cataldo, the prices of the national market respond to a high concentration and lower investments in the diffusion of technology.
“Colombians pay twice as much for 1GB of mobile data than other countries in the region. For four years we have been insisting that the high concentration of the market affects the pockets of Colombians. And if there is no timely decision, the digital divide will deepen, “he said.
For its part, Claro, the designated dominant operator, says that competitors seek unjustified regulatory advantages, avoiding investing and competing freely.
“They put pressure on the government to make decisions that do not benefit Colombia or the users. Claro believes that the market is not distributed or distributed, the competitor’s product and the users’ preference are gained or lost. That’s why it invests, works and strengthens itself, ”added Claro.
They even highlighted data from the Communications Regulation Commission indicating that mobile service charges have fallen by more than 50% in the past four years due to competition. “The SIC in 2019 indicated that Claro’s position is the result of its investments and that there is no evidence of a dominant position.”
Another study, from the Center for Studies on Economic Development of the Faculty of Economics of the U. de los Andes, established that the current concentration of the mobile telecommunications market is affecting the country’s digitization and competitiveness.
‘THE STRATEGY OF BEING IRREVERENT WE ALREADY KNOW’
The president of Tigo, Marcelo Cataldo, added that “the strategy of being irreverent, sometimes rude, we already know in the sector. And what happened to Avantel in the end, its coverage and distribution didn’t match its ads, “he said.
The manager stressed that the impact of this transition from Avantel to WOM is still too early to estimate, “because we don’t know what they will do in terms of offers for users. What we know, and as we have always said, is that competition is welcome; we will see each other on the street, arguing with facts, with arguments, from client to client, ”he said
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