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Essay text:
In fact the major national carries common behavior in order to be sure to cover the cost and to have a profit, due the relative high average cost to acquire a new customer (rough $370) and the net profit (rough $22 per month), is to target customers who are presumed to:
• have a high credit quality;
• do a large use of the mobile.
o Customers typically have a contractual agreement (from 1 to 2 years) with the providers; it is due the will of the providers to have a guaranteed annuity stream and to contrast the high churn trend of the market.
o Low usage customers and poor credit customers are hindered by the companies which operate in the market and provide very expensive price for prepaid arrangements...
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