News From Telecom World

Trends of Mobile Tariff

Posted on: November 6, 2008

Tariff Consultancy, a U.K.-based pricing and tariff research company, has released a report titled Mobile Pricing Trends and Service Innovation that outlines the current pricing and service positioning scenario in the mobile industry across emerging as well as developed markets.

Evaluating the prepaid, postpaid and ‘hybrid’ contracts offered by mobile operators across the industry, the report states that while bundling of minutes and texts is becoming a norm, service providers are now looking for other innovative ways to broaden their customer base.

According to Margrit Sessions, Managing Director of Tariff Consultancy Ltd, ”Mobile operators are increasingly using all inclusive flat rate deals to attract users onto a form of contract.”

“The bundling of core minutes and texts is starting to reach its limit, so providers will have to resort to other means to differentiate their service and gain new customers,” added Sessions.

The report states that operators are moving away from pre-paid options by promoting monthly contracts and automatic top ups. Italian operator Wind is offering 4,000 on-net texts a month for a fee of €2.00 a month. In the UKT-Mobile’s ( News – Alert) SIM-Only Solo price plans offers up to 500 texts and 1,800 voice minutes to all networks for a £35.00 per month.

According to the report, while flat-rate packages are becoming a standard in almost all markets, there is usually a defined data allowance beyond which a high per MB rate is charged to the customers. To address consumers’ uncertainty about the real cost of usage operators are revising their pricing strategies and are offering a cost-effective daily/hourly rates to stimulate user adoption.

Operators are also paying more attention to the positioning of services to target audience and coming up with innovative data bundling solutions such as community pricing and integration of fixed line and mobile services. The report quotes the example of Singapore-basedSingTel ( News – Alert) offering its customers the RedPAC (Parent And Child) package that allows minutes to be pooled among family members. Starhub, another Singapore operator offers its Cable TV gaming service over the mobile, allowing users to access their gaming software on PCs as well as mobiles.

The report also gives details of pricing strategy adopted by mobile operators for new services such as Messaging, Mobile Instant Messaging (MIM), Mobile TV, Mobile Music, and Mobile Gaming.

In addition to providing details of offerings and pricing details for operators of voice and data services across the globe, this report also explores mobile broadband as the service set to take the mobile industry to the next level. The report says that a demand for mobile broadband exists in emerging markets CEE and Russia amongVoIP users.

“We believe that the next stage in mobile operator evolution will be those who are able to make Mobile Broadband a convenient, available and easy-to-use service”, says Margrit Sessions. “This time around mobile operators have the opportunity to provide a varied service portfolio which is geared to the user needs of individual groups, rather than provide pure price discounting.”

Source: TMC net

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