Abstract:
The study aims to demonstrate the impact of non-price competition on communication institutions in Jordan, Zain, Orange, and Umniah –the three companies have a combined share of 97% in the communication market- making for an oligopoly, where the decision of any of the three institutions will necessarily affect the two institutions largely, in addition to that, communication institutions in Jordan are close to(Cournet) world’s economic model meaning that the fixed costs are obvious, while the variable costs’ impact are small and unclear.
Owing to the nature of the Jordanian market and its Component properties such as population, and income level distribution, and due to low number of population, high distortions in income distribution, inflation and high unemployment, any price competition will expectedly have negative results on the client as well as on the institution, which moves the competition among these institutions to non-price competition such as focusing on creativity, design, marketing methods, employing higher advertising expertise based on scientific grounds, and provideing complementary services.
the results of the study that adopted the field approach through a questionnaire randomly distributed over the provinces of the Kingdom And taking the population density of each province into account have shown, that Zain ranks first with 49%, followed by Orange with 27% and Umniah with 24%. The customer’s reasons for choosing the service with the company are as follows. Ranking first was the service quality of enquiry with 96.7% in the same proportion with company loyalty and commitment to them since the beginning secondly was the offers provided and multiple services offered with 96%, steeped in the provision of services ranked third by 95.6% and 94.4% for transmitter power.
The study also showed that 44% of the costumers pay less than 20JD in monthly bills, and 77% pay less than 30JD. With the larger portion (32.3%) holding a fixed telephone line. The formula for the expansion and prediction of cellular phones as follows: No. Of Subscribers in Mobile = 4534.42 + 803.7 * x (years)
the study also showed that the rate increase or expansion in mobile phones is at 13.5% per year, and the rate of reduction and decline in landlines is at 6.5%, so the formula for landline decline equation is as follows: No.Of Subscribers in Mobile = 559.58-31.3 * x (years) predicting the death of landlines by the year 2025.