Strategies for Mobile Broadband Pricing and Packaging

SUMMARY

“Mobile broadband is the single most important growth driver in developed markets for the next 2- 3 years. In order to take advantage of the benefits presented by this emerging opportunity, MNOs need to embrace a highly segmented approach to pricing and packaging.”

Product overview

Mobile broadband will be a major driver of growth for mobile network operators (MNOs) in developed markets in the next five years. It also represents an opportunity for MNOs to capitalise on their expensive 3G assets that have largely been standing idle. This report examines how MNOs can optimise their mobile broadband pricing and packaging in order to secure a large share of this growing market as profitably as possible.

Strategies for mobile broadband pricing and packaging answers your key questions:

• How can MNOs best frame their pricing strategy to reflect the diverse use cases for high-speed data connectivity?
• What is the right price for mobile broadband?
• What are the key differentiation factors for mobile broadband offers and how can MNOs best exploit those opportunities? How should MNOs approach device subsidisation and bundling?
• What is the best way for MNOs to integrate pricing strategies across fixed and mobile?

TABLE OF CONTENTS

• 0. Summary
• 1. Mobile broadband is not one product, but many
  • 1.1 Devices: USB modems will continue to dominate
  • 1.2 MNOs will find it difficult to differentiate their offers in terms of network coverage and capacity
  • 1.3 Customer usage requirements will vary considerably
  • 1.4 MNOs should sell mobile broadband as part of a wider service portfolio
• 2. Effective pricing depends on segmentation
  • 2.1 A range of tariffs is best
  • 2.2 Pricing to suit for the market conditions
  • 2.3 Pricing for DSL replacement guarantees adoption
  • 2.4 Affordability is key, rather than value for money
• Actions
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List of figures and tables

• Table 1.1: Mobile broadband devices as customer acquisition tools
• Figure 1.1: Evolution path of UMTS
• Table 1.2: Broadband application usage (per user, per month)
• Table 1.3: Benefits of femtocells for voice and data services
• Table 2.1: Sample mobile broadband offers in Italy, August 2008
• Table 2.2: High-level mobile broadband user segmentation
• Table 2.3: Suitability of mobile broadband tariffs to address user segments
• Figure 2.1: Impact of mobile broadband premium on market share
• Figure 2.2: Monthly spend on broadband