VivaTel throws down the gauntlet on mobile pricing

28 Sep 2005

VivaTel, the mobile division of former telecoms monopoly BTC soon to launch as Bulgaria’s third GSM operator, has announced a range of post-paid call plans, undercutting rivals GloBul and MobilTel by an average of 22%. It also revealed its pre-paid tariffs, which are 20% cheaper than the average prices offered by its two rivals. The announcements are set to spark a price war in the sector; in anticipation of VivaTel’s launch, both MobilTel and GloBul are preparing to cut their prices in early October. According to a survey of European markets carried out by VivaTel, a country’s third GSM player carves out an average 23% market share two years after entering the market, whilst call tariffs are seen to decrease by an average of 20% within two years.