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Topic: Business
Number of pages / Number of words: 26 / 7201
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Induction of two new operators has ignited the price war among the operators. Launch of services by Telenor and Al-Warid, have fuelled this fire in the market.

When a market expands as a whole, the growth may be at the expense of a lower ARPU (average revenue per user), which would result from lower tariffs and lower MOUs (monthly minutes of usage)...


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The decrease in tariffs and MOUs would be mainly a consequence of the companies targeting lower income level households through prepaid smart cards. But this tactic would not remain long lasting because the competitors responding to it very quickly and ultimately the companies need to come up with new tariff plans via cutting their margins once again...


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