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Written by:

Orville W


Date added:

August 12, 2013








No of pages / words:

7 / 1722


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6034 times


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A market study conducted six months after Omnitel's launch confirmed that customers were dissatisfied with TIM's service and extremely satisfied with Omnitel's service. One respondent summed it up by stating that "?I like the way Omnitel has positioned itself because I have never heard a polite word from TIM's customer service?" Secondly, Omnitel expected to maintain a lower than average churn rate of 10%-15%...
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Churn rate is a major cost driver for telecoms. Decreasing the churn rate will decrease Omnitel's operating costs and therefore represents an Operational Efficiency that will translate into another competitive advantage for Omnitel. Omnitel can re-direct the cost savings to financing future growth (expansion, advertising, subsidies, etc)...
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