Tariff “Smart for insiders. New Year’s ”- a bestseller with pitfalls

Hi.

The New Year’s season is approaching, usually at this time operators offer discounts on existing rates in order to pull the blanket over themselves. Despite the fact that operators sincerely believe that the race for the number of distributed SIM-cards is over and there is no need to measure the effectiveness of how to sow the streets of cities with plastic, not everyone supports this initiative. In the third quarter of 2021, MTS joined the traditional game “distribute as many SIM cards as possible to show the amazing growth of the subscriber base”. According to the results of the third quarter, the base growth year-on-year amounted to 1.5 million SIM-cards, the total number of SIM-cards – 79.7 million units. Due to some misunderstanding in MTS, these SIM-cards are called subscribers, it is absolutely impossible to put an equal sign between these two concepts.

The top management of MTS, having decided to play the good old distribution of SIM-cards, had to somehow support for at least half a year those cards that were distributed in the third quarter. The scheme always looks outrageously simple, you reach the indicators by distributing SIM-cards, they have a minimum life and die in subsequent quarters. To prevent this from happening, you need to create a kind of offer with a discount that will block the outflow. Since the main business of MTS is profitable, such exercises with a projectile are permissible, this is not the implementation of a business strategy, but the achievement of key indicators that are considered most important within the company. Of course, all MTS subscribers, without exception, pay for discounts in promotional tariffs, they are provided from their payments.

So, on New Year’s Eve in MTS there is a tariff plan “Smart for our own. New Year ”, the name is borrowed from the popular, but previously unavailable for the general public, tariff“ Smart for friends ”. The tariff was opened for connection on November 15, 2021, we will consider it using the example of the Moscow region.

Since tariff descriptions often disappear from operators’ websites, we will save a PDF file with this tariff here for future reference.

Marketing tries to entice buyers to buy this tariff: “Have time to buy!”, “Don’t miss your chance”. And at first glance, the offer looks very interesting, you are offered 20 GB of traffic, 500 minutes of calls and 200 SMS for 250 rubles.

If you read the conditions on the MTS website, it turns out that after 500 minutes of calls from the package you will pay 3.70 rubles for calls from all operators (local). But it is more interesting that calls to MTS in other regions are paid – 2.10 rubles per minute, for other operators – 6.30 rubles. This is quite a lot, but not all people make calls to other regions, and one can turn a blind eye to this with a certain profile of communication use.

Worse, SMS to numbers in any region, except home, cost 3.70 rubles per piece, to international numbers – 8.50 rubles. Quite extortionate rates, but also assume you won’t be posting them all the time. For example, when registering with Apple services, the message goes to a number in the UK. But you’re unlikely to do this on a daily basis, right?

Long distance calls cost 85 rubles per minute, to post-Soviet countries – 60 rubles per minute (for Armenia, Belarus, Kazakhstan and Kyrgyzstan it is 36.5 rubles per minute). Therefore, the tariff is clearly not suitable for those who have not mastered instant messengers and call other countries by phone.

MTS subscribers cannot switch to this tariff in any way, only buy a new SIM-card. For some reason, they made a button on the MTS website that misleads that it is possible to switch to this tariff, which is not the case. The only way is to go to the MTS store, where you can buy a tariff. There are no asterisks, footnotes on the site, and only in the PDF description somewhere in the backyard it is written that the full terms of the promotion are available in stores.

Traditionally, for MTS you are offered a second SIM-card as a gift, you can safely refuse it if you do not need it. But regardless of this, in addition to 350 rubles, you will be asked for an additional fee of 550 rubles. This money will fall into your account. In fact, this promotional period means that the tariff plan has been paid for at least three months and you will not throw away the SIM card during this time, which means that you will provide the operator with the very base of SIM cards that he so needs for reporting.

Let’s take a look at the competitors to see how they can compete at the moment “Smart for theirs. New Year’s Eve ”, even a quick look at the tariff offers will show that they have nothing comparable. The real cost of tariffs is 1.5 to 2 times higher, which makes the offer from MTS extremely attractive, and, calling things by their proper names, this is price dumping. It is clear that MTS limits this offer in terms of the number of SIM-cards, orienting it towards those who switch from other operators. But it is definitely not worth considering that other operators will sit silently and wait for their subscribers to go to MTS for freebies. I am sure that all operators will receive reciprocal offers, as a result, we will see another round of the price war, when operators will burn money and not make a profit. This is definitely not what they want if they follow their rhetoric and the real state of affairs. But MTS considered that the state of the business is such that you can revel in everything, hence this proposal. The task is to build up your base, at the same time make everyone get involved in a price war and spend money.

It is interesting that the “Smart for insiders” tariff was not public, but it was always very profitable. MTS employees, their friends and family members could connect to it. But the tariff quickly became profitable for resellers, and connection codes were widely sold in the secondary market. Now this market will die because there is no need for it. True, I would not be in a hurry to abandon the old tariff in favor of the new one, since, most likely, in the spring the conditions of this tariff offer will somehow change, the promotional period will end and everything will return to normal. It is not worth waiting for such a freebie to last forever.


Source: Mobile-review.com — Все о мобильной технике и технологиях by mobile-review.com.

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