For Telstra's mobile plans, should we focus on increasing data allowances or improving network reliability and coverage?

Introduction

The trade-off between increasing data allowances and improving network reliability and coverage for Telstra's mobile plans is a critical decision that will shape our product strategy and customer experience. This scenario involves balancing immediate customer satisfaction with long-term infrastructure investments. I'll analyze this trade-off by examining the product context, identifying key metrics, designing experiments, and providing a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming Telstra is facing increased competition in the Australian telecom market. Could you provide more details on our current market position and the competitive landscape?

Why it matters: Helps understand the urgency and strategic importance of this decision. Expected answer: Telstra is the market leader but facing pressure from smaller, agile competitors. Impact on approach: Would influence whether we prioritize short-term customer acquisition or long-term loyalty.

• Business Context: Based on our revenue model, I'm thinking data usage might be a key driver. How does data consumption currently impact our revenue streams?

Why it matters: Determines the financial implications of increasing data allowances. Expected answer: Higher data usage correlates with increased ARPU (Average Revenue Per User). Impact on approach: Would influence the balance between generous data allowances and network investments.

• User Impact: Considering user behavior, I'm curious about the primary pain points for our customers. Are they more frustrated by data caps or network issues?

Why it matters: Helps prioritize which aspect of the product to focus on for maximum customer satisfaction. Expected answer: A mix, with urban users concerned about data and rural users about coverage. Impact on approach: Would guide targeted improvements for different user segments.

• Technical: Given the potential need for network improvements, I'm wondering about our current infrastructure capabilities. How much additional investment would be required to significantly improve reliability and coverage?

Why it matters: Assesses the feasibility and cost of network improvements. Expected answer: Substantial investment required, especially for rural coverage expansion. Impact on approach: Would influence the timeline and resource allocation for network improvements.

• Resource: Considering the scope of this decision, I'm thinking about our team's capacity. Do we have the necessary resources to pursue both options simultaneously, or do we need to choose one direction?

Why it matters: Determines if we can take a balanced approach or must make a clear trade-off. Expected answer: Limited resources require prioritizing one direction. Impact on approach: Would necessitate a more focused strategy on either data or network improvements.