Mobile_OperatorsService Providers

Service Providers

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. How can Mobile Operators avoid the Mobile Broadband Commodity Trap? Which features and device options can command a premium? In which countries will users be willing to pay more for high throughput service bundles that are bundled with premium devices? To answer this we ran a detailed Mobile Broadband Case Study using the Strategy Analytics Tariff Response Model(TRM).

To analyse the opportunities for postpaid pricing in six countries – France, Germany, Italy, Spain, UK and US - we compared revenues and subscribers under several alternative Mobile Broadband 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.

The Strategy Analytics Tariff Response Model projects the potential demand and revenue response for these scenarios.

Northern Europeans appear to love the smartphone bundles at premium prices, while Southern Europe and US are looking for discounts and deals.

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