The telco approach to segmenting its customers that is on what basis (cost to service, profitability, etc.) should the customers be segmented is profitability.
Profitability is a term that is used to refer to a measure of an organization's profit relative in comparison to its expenses. Organizations that are more efficient will definitely have more profit as a percentage of its expenses than a less-efficient organization.
Thus when a company is segmenting or dividing its customers then they should consider the basis of profitability. This would fetch them more profit as they will bring more profit to the company's benefit.
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