The Rise Of Discount Mobile Operators

Again, this seems like the type of thing a wireless carrier should have already predicted was going to happen, but now we’ve got articles warning wireless carriers that the rise of discount carriers are a threat to their business. You really have to hope this isn’t a surprise to anyone in the industry. If you’re in business, you always need to be aware of the risk of someone coming in and undercutting your price. The question then, is whether or not the existing companies can compete on price (perhaps by being more efficient and having lower costs) or by offering additional value added services that people value enough to pay an additional amount for. So far, many of the major wireless carriers haven’t shown the ability to do much of either (be efficient or offer value added services that people actually want). If anything, hopefully the rise of discount providers will drive the established carriers to figure out how to do one or both of those things.

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