bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 22.01.2018 | Name days: Austris

Amigo: people no longer understand what they pay for

FaceBook
Twitter
Draugiem
print
(+2 rating, 2 votes)

Arturs Freimanis

Arturs Freimanis

Compex tarrifs have contributed to people getting lost in the huge offer, so they no longer understand what they pay for, says  Artūrs Freimanis, ZetCOM Board Chairman. The company is mostly known for its pre-payment card Amigo. He told the business news portal BNN many people overpay for services that make part of the set they do no even use.

What is your assessment on the telecommunications sector in general, namely, how would you characterise the Latvian market to a potential client?

Speaking about the key trends, prices are gradually levelling out and operators no longer advertise the one and the only most economical offer.

Basically, prices have levelled out because operators come up with a number of complicated services users even do not now how to use. So, they no longer know what they pay for. To give an example, operators offer sets of services the user does not make full use of. Paying a fixed price for a thousand minutes if you actually talk only a hundred means you overpay significantly. This explains why mobile operators still make profit despite the crisis impact.

I also have to single out that more and more new services enter the market, for example, computing. It is a new source of income. Also, sometimes price increases are hidden under complex tariffs and, at first, it might seem these are bonuses, namely, never mind we have raised the prices, here is a little bonus for you.

Users usually take this as a move of taking care of them, but actually what they see at the end of the month is a bigger bill, which leads to them switching operators more often. This is what we saw every day on or Tvs – all the operators advertised zero tariffs.

Are there similar trends also in Estonia and Lithuania?

From the perspective of consumption, the situation is more or less similar. The share of pre and post payments is basically the same, so is the number of messages and talking time.

However, I should point out the closer the territory to Scandinavia, the higher the tariffs, as witnessed by Estonia, but the price gap is not that considerable.

What is the instrument to attract potential clients’ attention? Is it low pricesm the brand or something else?

Given the fact operators speak about prices all the time and they really are lower than in the rest of Europe, price fluctuations no longer play such a major role. Some clients value the brand, cost-effectiveness, while others count the number of friends with the same operator. I believe simplicity and clear services will matter.

Speaking about competition, mobile operators often complain about each other’s commercials. Also Amigo has gone through this, with Bite asking the Consumer Rights Protection Centre to assess your commericals. Are such complaints well grounded? And do comparative commercials asserting you have it cheaper really allow to attract clients?

What is important here is whether the consumer benefits from that. If an operator can really prove other commercials are misleading or a law been breached, consumers benefit from that. However, if someone puts the blame on others, it does not always mean the speaker himself is the good one.

Speaking about the case with Bite inviting people to join their nearly free of charge tariffs, we can see their financial performance is actually the same. They draw almost the same revenue from a single client as the large operators they are speaking about. Our aim was to show that people should not blindly believe all commercials and zeros they are promised.

What are the price trends in Latvia? Will communications still gain in future or they have hit the peak already?

Currently, quite a large share is derived from base services – messages and calls. This proportion will give way to data and content in future. The question is who will show this content and whether some third parties will be involved.

I believe these base services will not gain and there will be more and more sets of them – flat rates with one price for everything. Anyway, revenue will come from different sources.

What is the demand for Amigo services? Did the crisis have a negative impact on your prices and the number of clients?

The number of clients has not changed significantly during the past years, which could be some kind of a manifestation of the crisis. On the other hand, we will get the Census 2011 results soon and see how many have actually emigrated. So, operators are currently focusing on the existing clients.

How many clients does Amigo have and what are the forecasts? What are the key tasks you plan to accomplish this year?

A number of new services and tariffs offered by our competitors has made also us make plans of attracting clients more aggressively.

We plan doubling the number of clients to 200 000 if not this year – in 2012 we will succeed for sure.


Leave a reply

Tax reform challenge in January: labour tax recalculation

2018 commenced for Latvia with a historical tax reform and conceptual changes, significantly affecting everyday work performed by businessmen, employers and accountants. One of the changes financial specialists have to remember when calculating wages for January is the one for personal income tax, which also includes changes for state social insurance fees and solidarity tax, BNN was told by accounting experts.

Total tax debts in Latvia reach 1.217 billion euros at beginning of 2018

At the beginning of the year, total tax debts in Latvia, including existing debts, halted debts and debts with extended repayment debts, reached EUR 1.217 billion, which is 3% less when compared with the previous month, as reported by the State Revenue Service.

Estonia emphasises animal welfare as demand for animal food products grows

Although the demand for food products from animals is increasing, attention should be paid both animal welfare and sustainability in agriculture, Estonia's Minister for Rural Affairs Tarmo Tamm has stated.

Latvia hopes to recover its status as a country free of swine fever

There is hope that Latvia may yet recover its status of a country free of swine fever, says Food and Veterinary Service’s (FVS) Animal Infections Monitoring Department lead expert Mārtiņš Seržants.

Estonia prepares to inform population of actions in case of emergency or war

Estonia is preparing a brochure on how its population should act in case of major crisis or war.

De Facto: international lawsuit against Latvia is associated with infamous Winergy case

Norvik Bank’s lawsuit against Latvian state in the international court of arbitration in Washington is associated with Winergy wind park business, as reported by De Facto programme of LTV. The bank has yet to announce the amount of money it wishes to enforce from the state

German Social Democrats vote to U-turn on coalition talks with Merkel's conservatives

In Germany, where four months after its federal parliamentary elections there is still no government, the Social Democrats have voted to enter coalition talks with the conservatives led by German Chancellor Angela Merkel.

Weather in Latvia to become warmer this week; thaw to settle in

Weather in Latvia will be dictated by an anticyclone at the beginning of the week. Precipitation is only expected in some areas, mostly in the north. The sky will be cloudy for the most part. Still some sun is expected every now and then, as reported by State Environment, Geology and Meteorology Centre.

Turkey crosses into Syria to attack Kurdish militia

Turkey's ground forces have entered the territory of neighbouring Syria strengthening Ankara's offensive to push Kurdish militia, considered to be terrorists by Turkey, away from the border.

Week in Lithuania. Fake news on Lithuanian Defence Minister planted on news portal

The Tv3. lt news website was hacked on Thursday, January 18 - a fake news story about Lithuanian Defence Minister Raimundas Karoblis was posted claiming that Karoblis allegedly harassed Ridas Jasiulionis, a journalist at the Žinių Radijas radio station, and admitted being gay.

BNN summary of the week: final report on Oligarchs case and ordered attacks on e-health

BNN offers a summary of this week’s topical news in a variety of categories: Change; Fight; Attack; Growth; Decline; Opinion; and Study.

Economist: the most important reform has to happen in people’s heads

«Of all the clever things taught to us in school about psychology, one thing that has stuck with me over the years is the idea of internal/external control point. There are people who believe they make their own fate. There are also people who believe our fate depends on external powers. I suspect people in Latvia explain successes and failures with external factors much more than people in Switzerland or any other country that has enjoyed its freedom longer than Latvia,» comments Luminor Bank’s economist Pēteris Strautiņš.

Minister promises bigger wages for working people and support for country’s industry

«Latvian Economy Ministry’s priorities for 2018 include increasing wages for working people and providing support to the country’s industry. For Latvia’s centenary year, every resident should have the right to experience the increase of the personal and state welfare,» promises Economy Minister Arvils Ašeradens.

Latvenergo: electricity price has declined 30% in the past three years

Average electricity price in Latvia has declined in recent years. The average price of electricity has declined by 30% at Nord Pool exchange between 2014 and 2017, allowing end user costs to decline, says Latvenergo.

Alcohol sellers in Estonia to be checked by little «police»

To find shop assistants illegally selling alcohol or tobacco to minors, Estonian police introduces the method of sending minors as police aides to retail shops to try to purchase the products banned to them.

EY study: cyber security has become a priority to banks this year

Over the course of the year, priorities of banks around the world have switched from reputation and risk management to data security matters, as concluded in the latest EY Global Banking Outlook 2018.

Political association: UGF and Harmony are covering up state capture

«Parliamentary investigation of Oligarchs case has shown what is what in the Saeima of the Republic of Latvia. Green farmers are in full harmony, covering up Aivars Lembergs and the fact of state capture. They and Inguna Sudraba have made the parliamentary investigation into a farce. Unfortunately, the power in those people’s hands is no farce – rather misfortune for all of Latvia. I hope citizens will take all that into account when they go voting,» says leader of Kustība Par! Daniels Pavļuts.

Tallinn-Helsinki tunnel plan lacks ambition, says «Angry Birds» game maker

While Finland and Estonia work on plans of an under-sea tunnel from Tallinn to Helsinki, the construction of which could start in the 2030s, a Finnish businessman, previously involved in development of Angy Birds video game, has presented plans to finish the massive construction project in 2024 already.

Experts: healthcare financing law will deny healthcare to the least protected

In a discussion regarding healthcare, experts said that Latvian President Raimonds Vējoņis’ proposed Healthcare Financing Law is economically unjustified and ineffective. The document lacks principles of a socially responsible state, because healthcare is becoming less accessible, which will likely worsen public health indexes, says Kustība Par! political party.

Branded «aggressor state», Russia says Ukraine buries Minsk peace agreements

As the Donbas War continues, the parliament of Ukraine has passed the so-called Donbas reintegration bill after three days of debates defining territories controlled by pro-Russian separatists in the east of the country as temporarily occupied by Russia.

Weather to remain winter-like in Latvia during the weekend and next week

On Friday and Saturday, no major increase of snow is expected. Air temperature will increase slightly, but colder masses of air will slow into the country on Sunday, as reported by Latvian State Environment, Geology and Meteorology Centre.

Winter storm in Netherlands and Germany turns tragic

A powerful winter storm in western and central Europe has claimed the lives of eight people.

Lithuanian bishops: skipping fasting on February 16 this year is not a sin

In an unprecedented move, the Conference of Lithuanian Bishops, the governing body of the Lithuanian Catholic Church, said that meat dishes okay for the people of faith on February 16, which marks the 100-year anniversary of Lithuania's statehood and the Lent Friday, which is traditionally a day of fasting for religious Catholic people.

Coincidence? Votes from Harmony and UGF ensure Sudraba remains the head of Oligarchs case committee

On Thursday, 18 January, the majority of Saeima members voted against the proposal to dismiss Inguna Sudraba from the post of the head of parliamentary investigative committee in charge of the review of the infamous Oligarchs case.

Kaljulaid criticised over involvement of acclaimed, but unrestrained director in centennial reception

As Estonia readies for the presidential reception to honour the 100th anniversary of Estonia, its President Kersti Kaljulaid is being criticised in an open letter for trusting Tallinn’s NO99 theatre, whose director physically assaulted a female colleague.

Most read

Most commented

Would you be ready to boycott something in your life?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: