We believe that operators in highly concentrated markets in Latin America are best positioned to pursue a postpaid strategy. However, operators in any market can successfully grow their postpaid base by using hybrid pricing, on-net pricing and handset subsidies depending on contextual factors.
In this report, we identify the opportunity to enhance customer loyalty as the primary driver for operators to pursue a postpaid strategy. We then look at the efficacy of operator initiatives such as hybrid plans, on-net pricing, handset subsidies and retail expansion, given different contextual factors. We present the case study of Argentinean operator Telecom Personal, which is using handset subsidies to improve the postpaid-to-prepaid ratio. We also examine the cases of Peruvian operators Movistar and Claro, focusing on their postpaid strategies. Finally, a case study from Turkey is introduced as an international benchmark where the incumbent Turkcell has been successful at migrating subscribers to postpaid by leveraging handset subsidies for low-cost smartphones and by extending its retail network.
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