Increasing Smartphone Penetration Rate Drives Adoption of Pay Monthly Pricing Plans, Claims Visiongain19 Jun 2016 • by Natalie Aster
The increasing Smartphone penetration rate is a key to driving the adoption of Pay Monthly pricing plans. The "integrated" price plan (with a bundle of Voice calls, Mobile Data & Texts) is being promoted by MNOs in Europe and other regions as Smartphone penetration levels rise. And in Europe MNOs have also adopted "unlimited" usage plans as a means of preventing mobile users from moving away to substitute OTT services. By offering unlimited services the MNO is reducing the incentive for the user to adopt a free service, but at the cost of lowering the potential revenue growth.
Current and future pricing trends for mobile pricing plans worldwide based on Pay Monthly contracts are analysed in the “Global Mobile Usage Plans 2013-2018: MNO Pricing Strategies for Voice, Text and Data Tariffs” report by Visiongain. The report focuses on the increasingly important Pay Monthly (Post Paid or Contract plans) segment with price plans from mobile operators around the world analysed in a unique global survey. The survey includes MNO pricing plans from the five key geographical regions of Europe, North America, South America, the Asia Pacific and the Middle East & Africa (MEA).
The unique Visiongain survey analyses over 400 mobile operator Pay Monthly price plans available in 58 countries based on the offerings of over 100 MNOs worldwide. It ranks and categorises all of the price plans per region into High (Premium), Medium and Low (Entry) level segments for ease of comparison in and across each region.
The report also considers the key changes in Voice plans, Mobile Data plans and Texts (SMS) which have taken place to date. The report provides frequent examples of price plans in each of the 5 geographical regions, and a pricing strategy case study based on an MNO initiative in each region.
Global Mobile Usage Plans 2013-2018: MNO Pricing Strategies for Voice, Text and Data Tariffs
Published: April, 2013
Price: US$ 2,497.00
The Visiongain report finds that MNOs are seeking to reduce the cost of handset subsidy - where offered - by providing more transparent pricing, with some MNOs offering usage only plans without a handset subsidy.
The report also highlights the range of SIM only offers which offer low cost price plans in order to attract both the existing Smartphone user and Pre Pay user at a low price point - with a 30 day contract duration.
In some developing markets (such as China) MNOs are seeking to attract more users to their 3G networks by increasing the level of Smartphone subsidy which is having an impact on MNO profit levels. But in other developing markets (such as India & South America) MNOs are charging the full purchase price for the Smartphone device.
More information can be found in the report “Global Mobile Usage Plans 2013-2018: MNO Pricing Strategies for Voice, Text and Data Tariffs” by Visiongain.
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