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Mobile Pricing Innovation: Vodafone "Stop the Clock" Case Study

In May 2005, Vodafone UK launched its innovative 'Stop the Clock' (STC) branded tariff. The STC initiative had a strong immediate impact in the market, adding significantly to Vodafone's competitiveness in both the contract and prepay segments of the UK market. Stop the Clock represented a well orchestrated incumbent response to the market share challenges Vodafone was experiencing as a result of growing competition. In the current case study we:

• Reveal the strategy behind Stop the Clock and Vodafone's motivations for introducing it
• Highlight how elements of the same strategy have been adapted to other Vodafone territories and subsequently been developed or withdrawn
• Indicate how the success of the plan has outperformed expectations and reveal how despite its negative impact on ARPU, Stop the Clock is viewed as a positive differentiator by Vodafone, achieving cross segment appeal
• Show how contract churn has been reduced by making the service exclusively available through extended service contacts in the contract segment
• Highlight some of the bill/spend shock risks we anticipate would result with an early exit strategy

Price: EUR 2,500.00 / GBP 2,000.00

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Table of Contents

1
Overview
1
2
Vodafone Stop the Clock (UK)
2
2.1
Proposition
2
2.2
Rationale for Introducing Stop the Clock
6
2.3
Benchmarking Costs and Savings
6
2.4
Market Impact
9
3
Conclusions
10