5G Monetisation: A 5G premium at launch, steadily declining in the long run

October 2020 | 78 pages | ID: 564C9FDD9BB3EN
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Abstracts

As telcos have been investing huge amounts of money in both 5G licenses and network upgrades, what kind of ROI could they expect from 5G in the consumer market?

This report addresses the following questions:

• What kind of pricing strategies have the telcos implemented for wireless services?
• What are the main segmentation criteria for their range of wireless services?
• How important is quality of service becoming in their offerings?
• Where is 5G positioned in their range of services?
• Are unlimited packages now mainstream for 5G?
• What price levels apply to 5G rate plans?
• Is video bundled with 5G?
• How are the telcos adding value to 5G? Does this include a 5G premium?
• How can premium revenue grow from 5G, compared to 4G?
• Over what timeframe?

Contents

1. EXECUTIVE SUMMARY

2. 4G/5G RANGE SEGMENTATION

2.1. Volume still remains the main segmentation criteria for 4G/5G rate plans, but quality of service is gaining momentum
2.2. Unlimited plans are widespread, in most cases as high-end plans
2.3. Content used to add value to offerings, through subsidiaries or partnerships
2.4. The focus of Korean operators on augmented reality as a driver for 5G

3. 5G PRICING STRATEGIES

3.1. 5G pricing parameters remain largely identical to those used for 4G
3.2. 5G price range: significant distortion between countries and operators
3.3. 5G unlimited plan price levels: significant distortion between countries and operators

4. 5G ADDING VALUE

4.1. Two main strategies for 5G services: continuity with 4G and adding value
4.2. ‘Conquest’ strategies mainly conducted in leading 5G countries: Korea and China
4.3. 4G/5G price ranges vary widely
4.4. 5G premium assessed at around 6 EUR in value-adding strategies
4.5. No 5G premium in the long run

5. DETAILED BENCHMARK BY COUNTRY

5.1. North America
  USA: T-Mobile USA – AT&T – Verizon
5.2. Europe
  Finland: Elisa – Telia Finland – DNA
  France: Bouygues Telecom
  Germany: T-Mobile – Vodafone – O2 Germany
  Italy: TIM – Vodafone Italia – WindTre
  Spain: Vodafone
  United Kingdom: EE – Vodafone – O2 –’3’
  Switzerland: Swisscom – Sunrise
5.3. Middle-East
  Saudi Arabia: STC – Zain
  United Arab Emirates: Etisalat – Du
5.4. Asia
  Japan: NTT DoCoMo – KDDI – SoftBank
  South Korea: KT – LG U+ – SKT
  China: China Mobile – China Telecom

List Of Tables

LIST OF TABLES AND FIGURES

4G/5G range segmentation
  4G/5G range segmentation strategies
  4G/5G plans data allowances
  NTT DoCoMo plans
  STC plans
  Vodafone UK 4G/5G plans
  TIM’s plans
  Elisa 4G/5G plans
  T-Mobile USA 4G/5G plans
  Content 5G partnerships
5G pricing strategies
  5G plan price ranges (EUR)
  5G price of entry-level unlimited offering (EUR)
5G value adding
  5G pricing strategies
  5G pricing strategies by 5G country readiness
  4G/5G price ranges (EUR)
  China Mobile 4G/5G plans compared
  SKT 4G/5G plans compared
  KT 4G/5G plans compared
  Vodafone Spain 4G/5G plans compared
  5G monetisation compared to 4G
  5G ARPU forecast in Germany