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Commercial Skills

Telecoms Pricing Strategies in a Post-COVID World: What's Changed?

The pandemic fundamentally altered how customers perceive value in telecoms services. We examine the pricing frameworks that are working in today's market.

Eric Lodewijks, 7 min read, December 18, 2024
PricingCommercialStrategy

COVID-19 did something extraordinary to telecoms pricing: it simultaneously proved the indispensability of connectivity and raised customers' sensitivity to cost. Households that had never questioned their broadband bill suddenly scrutinised every subscription. Enterprises that had never questioned their WAN contracts suddenly asked whether they needed them at all.

Three Pricing Trends That Emerged Post-Pandemic

  • Value-Based Pricing is Ascendant, cost-plus pricing is losing ground to models that tie price explicitly to the business outcomes delivered. Enterprises will pay more if you can quantify what better connectivity is worth to them.
  • Bundling Complexity Has Increased, the explosion of work-from-home drove operators to bundle connectivity, security, UCaaS, and managed services in ways that create pricing complexity requiring sophisticated modelling.
  • Price Transparency is Now Expected, digital-first customers expect to self-serve pricing comparisons online. Opaque pricing damages trust and increases churn; clear, modular pricing builds loyalty.

The Frameworks That Are Working

The most effective commercial teams we work with have moved beyond simple tiered pricing to Economic Value to Customer (EVC) modelling, systematically identifying what a service is worth to a specific customer segment and pricing accordingly. This approach requires commercial teams to develop deep industry vertical knowledge, not just telecoms product knowledge.

Alongside EVC, the most successful operators are applying competitive benchmarking (anchoring pricing to competitor alternatives), willingness-to-pay research (direct customer surveys and conjoint analysis), and lifecycle pricing (adjusting price and bundling as the customer relationship matures).

Building Pricing Capability in Your Team

Pricing is not intuition, it is a discipline. Our Telecoms Pricing Strategies to Maximise Profit course gives commercial teams the analytical frameworks, psychological principles, and sector-specific case studies they need to price with confidence. Delegates leave with a practical framework they can apply to their own product portfolio immediately.

Master telecoms pricing strategy.

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