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Dynamic Pricing: Yield Management Solutions and Strategies
Ovum, March 2011, Pages: 24
Introduction
Dynamic pricing (DP) is the approach of offering automated variable pricing of mobile services based on realtime information of network utilization. There has been a rapid adoption of DP in emerging markets in the last three years. This study examines the benefits, challenges, and future outlook for DP services in emerging markets, as well as the implications of the trend in mature markets.
Features and benefits
- Outlines the trends in dynamic pricing tariffs in emerging markets.
- Analyzes of the business case for dynamic pricing.
- Examines a number of major vendors' dynmaic pricing solutions.
Highlights
The key benefit of a DP solution is the potential to use spare network capacity more effectively. There is evidence from existing implementations that DP services are able to increase network utilization at desired times and locations, which enables operators to monetize some of the spare network capacity that would otherwise be “wasted.”
Your key questions answered
- Which have been the most successful dynamic pricing implementations?
- What are the benefits and challenges of dynamic pricing?
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