Monday, June 8, 2015

Swisscom, Digitec Enter Distribution Partnership

Swiss mobile operator Swisscom has strengthened its partnership with Digitec, the country’s leading online marketer of  IT, consumer electronics and telecommunications products. The collaboration will provide significant benefits to customers of both companies through simpler ordering procedures, a wider choice of devices and joint offers. Customers who access Digitec’s site will find a microsite where they can order their device online and extend their Swisscom subscriptions. On Swisscom’s site subscribers can purchase Digitec devices that Swisscom offers in its own Online Shop, or they can follow a link to Digitec’s site. According to a press release, the partners plan to advertise selected models together as special offers to their customers.

We have written numerous times about device sales being a source of revenue for mobile operators as well as for device manufacturers. As Switzerland’s largest mobile operator, Swisscom’s strategic partnership with Digitec could very well result in more mobile subscriptions for the operator in addition to revenue from device sales. Current and new customers are being approached from two different portals with this partnership, and both approaches stress the ease and convenience of the consumer’s purchasing experience. We believe Swisscom will increase revenue with this creative selling approach. Mobile penetration in Switzerland is on par with the European average, and although ARPU is declining because of decreases in voice and SMS use, we believe that data use, which has increased, will continue to drive sales for mobile operators in terms of data plans and devices. And although Digitec may receive fees from extensions of Swisscom mobile subscriptions on its website, the double exposure that Swisscom will experience with this partnership would still bring in additional revenue for the MNO.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. Tarifica is the leader in monitoring and analyzing telecom pricing, covering hundreds of operators in every region of the globe. Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. Click here to contact a Tarifica Analyst.

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