2 min read • viewpoint

Pricing Benchmark

Voice and MBB Services Tariff Plans Benchmarking

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Vincenzo Basile

Qatar Saudi Arabia United Arab EmiratesPartner

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  • Decrease in prices is still due to a strong competition mainly based on "commoditized" mobile services (voice or data) or on the customer acquisition strategy of "low cost" players, though several markets (US, UAE) are still experiencing premium prices. 
  • The rapid increase of the availability of smart devices and the OTTs' offering of new services and application generate new data traffic needs and drive a general increase in data allowance by operators. Increasing data allowances and plans tend to converge, within each market, towards standard data allowances, i.e. comparable cap of data per offer in the same country.
  • LTE tariffs almost completely replaced the ''3G only'' and some Operators exploit the traffic explosion introducing new "data-centric" offers and commercial models to improve revenues, retain customers and monetize network investments. Such offers succeed only if paired with reliable LTE network

The current trend towards tariff reduction highlights the importance of generating and promoting data usage through LTE's enhanced customer experience. Introducing value-added services can also be a functional way for mobile operators to promote broadband usage; when successfully perceived by customers as a differentiation factor, it can be a rewarding way to enhance the value proposition and support sustainable growth. Following that direction, MNOs should leverage new pricing models with the support of Big Data modeling to stimulate data consumption, such as tailored 1to1 value base customer offer, speed-based differential pricing or bundling of OTT services.

 

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