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Data Strategy Paper For Tim Hellas Telecommunications

1157 words - 5 pages

Brief Company Profile Overview.TIM Hellas Telecommunications S.A., formerly known as STET Hellas Telecommunications S.A., was founded in 1992 and has been providing mobile telecommunications services in the Greek market since June 1993. Following its re-branding in early 2004, the company operates under the "TIM" brand name and offers network access and related value-added services in the GSM 900 MHz, DCS 1800 MHz and UMTS MHz bands. One of four operators licensed to provide GSM mobile telecommunication services in Greece, and one of three operators licensed to provide UMTS services, the company focuses on innovation and quality service, and offers various prepaid and contract products and services, covering the needs of all the different market segments.Customer Results.At year-end 2004, TIM Hellas' customer base dropped to a lower level than that seen at the end 2003, with total customers coming in at 2,323,866, mainly due to an overall lower prepaid customer base and as a result of increased competition in the mature Greek mobile market. At the end of December, TIM Hellas' customer base was composed of 65% prepaid customers and 35% of contract subscribers.During 2004, the company strengthened its retention of high-value customers, illustrated by the increase in usage: TIM Hellas' total traffic minutes grew by 13.9% during 2004 to 3,087 million minutes, while average monthly traffic per customer (Blended AMOU=Average Minutes of User) increased by approximately 25.5% to 106.4 minutes in 2004, versus 84.8 minutes in the previous year. More specifically, contract AMOU rose by 18.8% to 238.7 minutes and prepaid AMOU grew to 39.7 minutes, up 12.4% versus last year.Consequently, blended ARPU (Average Revenue Per User) increased by 13.7% to 27.1, supported by a rise both in contract ARPU that grew by 6.6% to 49.9 in the period, as well as in prepaid ARPU that reached 13.0, up 6.7% year-on-year."2004 was a challenging year for TIM Hellas. Increasing competitive and regulatory pressure in combination with company-specific strategic initiatives-- that though sound, strained this year's results-- led to an erosion in business margins and overall profitability," stated Mr. Socrates Kominakis, TIM Hellas' Chief Executive Officer. "Nonetheless, we will shift our full focus and resources to return TIM Hellas to the solid profitability levels seen in the past years."The mobile market in Greece has reached maturity with very high penetration levels. If the Telecom companies want to increase their customer's LTV they should focus on retention rather than new acquisitions. This can be effectively done with databases with various data elements that can help them support their strategy. Due to the nature of the business most of them can be found internally. Some of them are:Demographics (Age, Location) Internal. Business systems that maintain data provided from the customer's application. Targeted marketing actions related to demographic data.Activation...

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