Smartphone app pricing and market launch strategy assessment
A European cable TV, broadband and fixed telephony operator was investigating the roll out of a smartphone app combined with a complete overhaul of its telephony pricing schemes. The fixed telephony market was in general losing both revenues and profitability in the wake of fixed to mobile substitution, increasingly inactive subscribers and dropping price points / all you can eat offers coming from the mobile telephony operators.
Northstream was asked to assess the suggested functionality/positioning of the application from an industry, market and business case perspectives, as well as analyse the potential impact of the new suggested pricing schemes. Northstream developed a financial model to compare the scenarios, value at risk and potential upsides of the different alternatives.
The material was used to support the launch decision as well as adjust the suggested price points of the schemes.