Digitization of purchasing telecommunications servicesLearn More
Oligopoly and Market Failure
The german telecommunications market for corporate clients is distinctly dominated by a provider oligopoly. Because of technology requirements often only one competitor can be considered as an alternative to the existing provider. This strongly limited competition impedes an effective market pricing leaving the procurement department at a disadvantage.
Since the cost structures of the providers are also very similar and the marginal costs of the services are virtually zero, the present provider can "call" any competitors offer. The competitor then wouldn’t have a chance to win over the customer, leading to no or at least no attractive offer by the competitor.
The procurement department can then merely option to accept the uncontested offer of contract extension of the present provider.
To solve the market-structure-problem we developed various auctioning methods
These solve the problem of market failure and intensifies the competition. This ensures not only that the customer receives made-to-measure services, but also receiving the best possible price from every provider.
For information on procedure, prerequisites and our references please get in touch with us.
Relevant information about the corporate-client-telecommunications-market barely exist publicly.
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