Defining and testing mobile offers to fit into their wider portfolio is a critical yet challenging area that providers and MVNOs face. There are a variety of factors they will need to take into account, for example, determining what the end user benefits of a new tariff over competing offers will be, and ensuring it returns the expected revenue through a range of different usage scenarios, as well as making sure that it doesn’t cannibalise existing tariffs.

The Teligen Mobile Price Analyser Service from Strategy Analytics has been designed to help deal with these issues. It is a regularly updated system which will enable users to test new mobile plans against existing offers in the market, and see how changes to the new plans affect the comparison.

As the Price Analyser tests new price plans from an end-user cost perspective, usage profiles are an integral part of the system. The analyser is based on the methodology used in the OECD price benchmarking, which is widely regarded as the most comprehensive general methodology available today. Strategy Analytics has worked closely with the OECD for many years to help shape and define this methodology. The result is a robust and trusted approach to price benchmarking.

As the Price Analyser is based on the OECD methodology, the range of OECD usage profiles for mobile voice and data services are available to use, and these obviously provide a good basis for comparison, however, users of the system may also enter their own profiles.

The Key features of the Price Analyser allow users to:

• Enter own tariffs - up to 6 individual tariffs at any one time. These tariffs will then be handled by the system in the same way as the other tariffs already included, and take into account the underlying OECD methodology.
• Select up to 40 tariffs from the included tariff data, for closer analysis of the existing offers in the market.
• Create up to 6 customised baskets, to reflect different types of users to test the tariffs against. This is important as it allows you to consider how typical users in your own market will fare with both existing tariffs and with the tester tariffs.

This flexibility allows the user to create a whole range of outputs that will assist with the development of new plans. For example, the system will give a full breakdown of the costs experienced by an end user for each type of usage, as shown in Figure 1 below.

Figure 1:     Sample output of user cost details

Source: Strategy Analytics

This level of detail allows you to see which usage elements result in most revenue, or for example whether the revenue is largely usage independent. The graphical display shows this in a relative manner, which is often more useful than the numbers themselves.

A further output it is useful to show is the levels of usage that will result in a particular level of revenue, for two selected tariffs.  This is illustrated in Figure 2. In this example shown below, the cost/revenue limits have been set to between 30 and 40 euros. To return this revenue, voice usage will be approximately between 60-70 calls with no data usage, and between 40-50 calls for high data usage, as shown by the highlighted orange cells. 

Figure 2:     How end user cost varies with usage – breakdown of numbers

Source: Strategy Analytics

The outputs shown here are not exhaustive. Nor do they fully illustrate the flexibility of the new system, and it is beyond the scope of this short insight to do this.

If you would like further information on the Mobile Price Analyser, or are interested in viewing a replay of our recently run webinar which provides a more detailed insight into how the Analyser has been developed and what it will deliver, please get in touch using the contact details below.

Contact Information

To explore this topic in more detail or to hear how our solutions (Workshops, Presentations, Consulting engagements, annual multi-client services) can support you please contact us

www.strategyanalytics.com/solutions.html

The author of this Insight, Josie Sephton can be reached at jsephton@strategyanalytics.com.

An alternative contact is Halvor Sannaes hsannaes@strategyanalytics.com