Mobile_OperatorsService Providers

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Author: Sue Rudd
Publication Date: Sep 13 2010
Pages: 5
 Report Type: Report, Word

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Service Providers

Executive Summary Mobile Broadband is Not a Commodity - Premium Bundles can Maximize Revenue



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Report Summary:

Mobile ARPU is falling and Mobile Broadband is increasingly competitive. Mobile data traffic has grown dramatically in recent years reaching a current data share of over 25 percent of Total ARPU for many operators. The change from voice and messaging to data and Internet access has significantly diluted the monthly price per user.

To analyze the upside potential for postpaid Mobile Broadband pricing in six countries – France, Germany, Italy, Spain, UK and US - we created several alternative service scenarios:
  • Service bundle at current prices with a Dongle/USB device
  • 20 percent lower with a Dongle/USB device
  • 20 percent higher with a Data Device
  • 60 percent higher with a bundled smartphone.

Using the Strategy Analytics Tariff Response Model we projected the demand and revenue response. Northern Europeans appear to love smartphones at premium prices while Southern Europe and US are looking for discounts.

In the long run customer segmentation and combinations of key features that match different countries’ unique purchaser segments are key to avoiding the Broadband ‘Commoditization Trap’.

For more information about our services please contact us or email support@strategyanalytics.com

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