"At present there is very little difference between operators -- each offers similar services (phone, voice, SMS, data connectivity) at very similar rates. Often the biggest differentiator between operators today is the color of their brand!

"Operators need to start defining more clearly who their customers are, and then target them effectively with packages that are tailor-made to meet their needs. Cell C's CY community is a good example. It is targeted at the youth market, and gives members benefits like R20 free airtime, 10 SMS and five ring tones free every month, as well as VIP treatment on the CY Web site.

"There is a lot of room to create uniqueness here. Operators need to stand for something and then use that to create brand strength and loyalty.

"With the latest billing systems, operators can create packages for individual users depending on who they are calling. For example, a package for students that gives them a 50 percent discount on calls to other students or lecturers. Users need to feel the operator is giving them something, and that they are not just another number paying for services every month."

Attracting the big spenders