Bell Cuts Roaming Prices Due to High Demand

Roaming is an important factor to many consumers’ choice of carrier. Being one of the 3 major telecommunication providers in Canada and holding virtually monopolistic power, Bell is giving in to its subscribers’ demand for lower roaming rates. Its new roaming plans will have their prices be cut by as much as 50 percent. This decision was largely due to the feedback provided by its customers. In a press release, Bell stated, “We’re starting with the most popular destination, and Bell is committed to working with our global telecom partners to further reduce international roaming costs for our customers.”

Although Bell’s decision may seem as a response to feedback, I believe that it’s attempt to keep its monopolistic power by preventing companies such as Verizon and AT&T from entering the Canadian market. If Bell does not reduce its roaming prices, it may create an opportunity for Verizon to capture and further add to its value proposition. Diversified customer base is a huge part of any business and large corporations cannot afford to alienate a particular segment. By understanding its consumers’ need, Bell is able to retain is current customer base and can exploit new marketing strategies revolved around their decision.

Bell Authorized Dealer. Bloomberg

Source:

http://www.theglobeandmail.com/report-on-business/bell-to-cut-roaming-fees-by-half/article14333517/