Era GSM exploits TPSA's increased subscription price with advertising blitz

The biggest Polish mobile phone operator, Era GSM, has stepped up competition with state monopoly Telekomunikacja Polska S.A. (TPSA). Taking advantage of the recent increase in subscription fee introduced by TPSA, Era wants to convince potential customers to change traditional phone service to mobile service. The GSM operator is sending letters to current and potential TPSA customers promoting its services. Era's cheapest subscription fee is zl.24.30, whereas TPSA's monthly subscription fee was recently raised to zl.42.70. The second part of Era's advertising blitz is a lottery of 1,000 mobile phones. Since there are already more than 8 million mobile phone users in Poland, services provided by mobile phone operators may become cheaper, thus enticing new subscribers. According to analysts, TPSA's subscription price hike may speed up the increase in the number of mobile phone users, especially those choosing pre-paid systems or the cheapest subscription fee. Market insiders expect that the second Polish GSM operator Plus will follow Era in its aggressive marketing campaign. The question then remains: what will Centertel, whose main owner is TPSA, do in response? (Gazeta Wyborcza, p. 29) A.D.