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T-Mobile Macedonia: Change of strategy required amidst declining revenues?

Quarterly Mobile Monitoring
Published: 2014-07-25

Strong competition and a declining subscriber base took their toll on T-Mobile Macedonia’s revenues in 1Q14, continuing a general trend going back several quarters according to InfoCom’s latest Quarterly Mobile Monitoring service. The operator reported EUR 23.4m in revenue during the period – a sharp decline of over 18% YoY – mainly due to competitive pressures from Vip and One Macedonia, both of which reported better results for the quarter.

Aggressive promotions and highly-discounted offers contributed to the decline in blended ARPU by around 18% YoY to EUR 5.60 as well as a further reduction in mobile termination rates enforced by the local regulator in January 2014. T-Mobile’s subscriber base continues to decline, dropping by 3.8% YoY to just over 1m in 1Q14, or a net loss of 23.5k subscribers from the previous period.

In light of this, InfoCom expects the continued erosion in the revenue and subscriber base of T-Mobile Macedonia unless the operator considers further review of its business strategy, especially for its dwindling contract subscriber base. The operator may also consider reviewing the effectiveness of its subscriber retention and acquisition plans, as current campaigns proved to have had minimal impact on subscriber growth.

Published: 2014-07-25





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