Features of telecommunication services pricing policy management

Parii Liudmyla
Candidate of Economic Sciences, Associate Professor, Associate Professor of the Department of Management State University of Information and Communication Technologies Kyiv, Ukraine, E-mail:v.i.zaharchenko@op.edu.ua, ORCID: https://orcid.org/0000-0002-7070-2521

Cite this article:

Parii L. (2025) Features of telecommunication services pricing policy management. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Osoblyvosti upravlinnja cinovoju politykoju telekomunikacijnyh poslug: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 2 (327), pp.80-88.

Abstract

The article explores the specifics of forming pricing policies for telecommunication services. The authors emphasize that price management for telecommunication services is a key aspect of operators' business strategy, as proper pricing directly affects the company's profitability and competitiveness. The pricing process in the telecommunications industry encompasses such important factors as infrastructure and technology costs, market competition, service demand, government regulation, and service costs. Furthermore, the rapid development of new technologies, such as 5G, requires operators to make constant investments, which also affects pricing. The choice of pricing strategy—from cost-based to demand-based—depends on market conditions, technological development, and consumer needs. It is emphasized that choosing the optimal pricing strategy is an important and challenging task for company management in today's unstable market conditions, especially with declining consumer activity. It has been proven that infrastructure and technology costs form the basis of service costs, as companies have to make significant investments in equipment and network upgrades. Market competition forces operators to constantly adjust their prices to remain competitive. Service demand directly affects their cost, allowing prices to be raised in high-demand conditions and lowered during periods of decline. Regulatory requirements, such as tariff restrictions and consumer protection, also define the boundaries of pricing policy. Considering all these factors is critical for proper pricing and the successful operation of telecommunication companies in the market. The authors propose a number of pricing models that enable telecommunication operators to optimize their prices, focusing on various aspects of the market, demand, and technological capabilities. The choice of a specific model depends on the company's strategic goals, its competitive situation, and regulatory requirements. Price management for telecommunication services is a constant challenge for operators due to the need to balance price, service quality, and market competition. Telecommunication companies must constantly adapt their strategies, considering changes in demand, new technologies, legislative changes, and economic fluctuations.

Keywords

pricing policy, telecommunication services, pricing, price management, profitability, competitiveness, infrastructure costs, 5g technologies, regulation, pricing strategy.

JEL classification:L960; L110; L130; M100;DOI: https://doi.org/10.32680/2409-9260-2025-2-327-80-88

UD classification:339.13:338.121

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