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A COMPARITIVE STUDY ON PORTUGUESE MOBILE NETWORK OPERATORS. Siddharth Rathinam Karthikeyan IK2514- Wireless Infrastructure Deployment & Economics. vs. Background: To compare Portugal Telecom and Vodafone Portugal business strategies.

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a comparitive study on portuguese mobile network operators

A COMPARITIVE STUDY ON PORTUGUESE MOBILE NETWORK OPERATORS

Siddharth Rathinam Karthikeyan

IK2514-Wireless Infrastructure Deployment & Economics

vs

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Background:

  • To compare Portugal Telecom and Vodafone Portugal business strategies.
  • In aspects such as type of services provided, target customers, marketing strategy, pricing, spectrum allocation and Network sharing etc.

Portugal Telecom (PT) Vodafone Portugal

  • Government owned until 1994 Commercialized by 1992
  • Formed by fusion of various 2003- fully owned by Vodafone

companies as Portugal Telecom Second largest operator with 34%

  • Still dominant actor w.r.t market shares- 45%

Services Offered:

  • Portugal Telecom- Fixed line & Mobile Telephony, Fixed line & Mobile Internet, Digital Television, IT Services- de facto operator in fixed telephony
  • Vodafone Portugal- Mobile Networks, Mobile Broadband, Digital Television and Telecom services- but not in fixed telephony,

Marketing Strategy:

Portugal Telecom- Rigorous techniques-heavy investments-branding with football clubs.

Vodafone Portugal- not as heavy as PT- launched global advertising campaign-using strong tag lines- first operator to introduce 24*7 customer service.

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Pricing:

Portugal Telecom- same strategies for FT- but reduced prices for MBB services.-low ARPU

Vodafone Portugal- low pricing in MBB service with many value added services.

Target Customers:

Portugal Telecom – Enterprise and all class of people- specific products for each sector of people.

Vodafone Portugal – for broadcasting targets only enterprises, rest of services- all set of customers.

Network Sharing:

Portugal Telecom- dominant actor- uses the existing infrastructure

Vodafone Portugal- for broadcasting- decide to share with Optimus, third largest operator

Spectrum Acquisition:

Portugal Telecom and Vodafone Portugal -same phase with acquiring the 4g/LTE license-providing 4G services- through fixed and mobile broadband connections.

  • Final words:

Not much bigger difference in business strategies- Portugal Telecom, once an incumbent and state owned it enjoys the customers’ backup- Vodafone Portugal, a new entrant- gained trust by various products, cheap prices and value added service- Marketing strategy can be improved.