Rebirth of England.

Chapter 658 USA
"Yes, Mr. Kushner, I am in New York now..."

"Sorry, I've been busy lately and have almost no free time..."

"I'm sorry, okay, I'm going to take a break..."

When Barron walked out of the bathroom, he saw Ivanta leaning against the head of the bed, talking on the phone, saying the above words in a businesslike tone.

"Who is it, baby?"

Barron looked at the time. It was almost ten o'clock in the evening.

Ivanta casually placed the phone on the cabinet beside the bed and looked at Barron with a smile:

"I kind of know him. I've met him twice, at friends' parties. He was more of a business guy. His name is Gared Kushner. His family is in real estate. Oh, and he bought the New York Observer before. He's a capable guy, I guess."

Hearing Ivanta's words, Barron raised his eyebrows slightly and hugged Ivanta in his arms:
"I guess, a suitor of our Ms. TP?"

Barron naturally knew who Ivanta was talking about, Gared Kushner, especially since she also said that he had previously bought The New York Observer...

That person must be Ivanta’s legal husband in Barron’s previous life.

After hearing Barron's words, Ivanta laughed:
"Maybe it's just a greeting between friends?"

"Oh?"

"Okay, I admit, maybe he has that kind of feeling towards me, but I..."

Ivanta leaned against Barron and looked him in the eye:
"It's probably not easy to meet a man who is more handsome, smarter, and more talented than Mr. Cavendish."

"I have other strengths that you haven't told me, honey."

"Oh? What are the advantages? Tell me..."

Barron looked at Ivanta and said maliciously:
"Just talking about this won't give you a deep understanding. You need..."

"how?"

"I need you to try..."

Well, literally.

……

After O2 Telecom completed the acquisition of T-Mobile USA, the original T-Mobile brand in North America was changed to O2, becoming the North American branch of O2 Telecom.

Prior to this, T-Mobile ranked fourth in market share in the United States.

Although this ranking does not seem to be low, it should be noted that the US telecommunications market is more of a competition between AT&T and Verizon. These two companies occupy the vast majority of the US market, while Sprint and T-Mobile behind them have a considerable gap in market share with the top two.

However, although AT&T has a better user growth momentum than other companies due to its exclusive sales rights of iPhone, it is also affected by the subprime mortgage crisis, liquidity is exhausted, financing is difficult, and the operating conditions of American telecom operators including AT&T are not optimistic. After O2 Telecom acquired T-Mobile, O2 USA took advantage of this opportunity to copy O2 Telecom's successful experience in the British and even European markets - the low-price strategy, and began to seize market share from other operators.

After all, as we all know, telecommunications charges in the United States are very expensive. The cheapest monthly package is $29.99 for 300 minutes of calls - this is simply not enough for many Americans, so they need $39.99 for 450 minutes of calls, or even $199.99 for unlimited calls.

If you need to use 3G network to access the Internet, the cost will be higher.

And until now, in the American market, mobile calls are still charged in both directions - users are charged based on the time for both incoming and outgoing calls!

It can be said that compared with many mobile users in Britain and continental Europe at that time, mobile charges in the United States are much more expensive.

This gives O2 Telecom room to operate. Initially, in the markets of countries such as Britain, France and Germany, O2 Telecom expanded rapidly by relying on in-network packages and cheaper and higher-quality services. Now, they are about to start stirring up the market in the United States.

While investing money to improve its mobile and broadband networks in the United States, O2 Telecom began to launch packages that were more cost-effective than AT&T, Verizon, and Sprint, and started a price war - our brand has been updated, so shouldn't we offer big discounts? This makes sense, right?

This makes AT&T and Verizon very uncomfortable, because on the one hand, compared with the period before the subprime mortgage crisis, AT&T and Verizon have been in a very bad situation in the past two years because of the fragile capital chain caused by the previous continuous mergers and acquisitions and expansion.

Now that O2 Telecom has started a price war, will AT&T and Verizon follow suit?

If they want to follow, you should know that AT&T and Verizon have a much higher market share than O2 USA, which means that their current number of users is not at the same level as O2 USA. If they also join the price war, not to mention the reduced profits, even those users who have signed fixed packages before will probably be full of complaints!
Do we have to ask these two companies to refund the money to the users? How can this be possible?
Of course, O2 Telecom is not just fighting a price war. In addition, they have also cooperated with Huawei to improve infrastructure in the United States to enhance user experience...

These certainly require increased capital investment, but compared with the increase in users and market share, they are still worth it.

After all, we are still in the economic crisis, and users have to start budgeting carefully. Since O2 USA's preferential policies were launched, the growth rate of mobile users and broadband users has exceeded 25% in just two months!

Although this is also related to their original low market share - this means there is a lot of room for improvement.

But you have to know that most of these growths, after all, are gained from other "friendly competitors". This is what makes them happiest.

"According to our analysis, even if the subsequent growth curve will be slightly smoothed, our users will at least double this year."

Quentin Geller, CEO of O2 USA, excitedly told Barron’s:

"And with the advancement of our basic network construction and the introduction of various preferential policies, I believe the user growth curve will continue."

“You can also offer pre-charge discounts to attract users.”

Barron mentioned the "recharge and get free phone bills" campaign that O2 Telecom had used in the UK and other countries such as Germany and France, which was very popular among users:

"For example, if you top up more than $1000 at one time, you can get $800 worth of free phone calls..."

The benefit of this kind of activity is that it not only attracts new users, but also enables the company to obtain sufficient funds in advance to expand its scale.

At the same time, when users recharge so much money into their phone bills at one time, it means that they will not change their phone bills for a considerable period of time - at least until the recharged money is used up, otherwise the money would be equivalent to being given to O2 Telecom.

And for telecommunications companies, although this kind of activity is equivalent to reducing profits for a period of time - the problem is that it can attract more new users. The number of users is the most important. With a sufficient number of users, even if the charges are lower, the profits will be higher when spread out.

(End of this chapter)