Italian operator 3 Italia has kicked off the season of festive offers by halving the price of its All-In prepaid plans. All-In 400, with 400 minutes of calls, 400 SMS and 4 GB of data, is now available for €5.00 (US $5.31) per month instead of €10.00 (US $10.62), while All-In Unlimited will be available for €10.00 per month instead of €20.00 (US $21.25) and comes with unlimited minutes and 8 GB of data. Finally, the operator’s All-In VIP Smart plan has been reduced to €15.00 (US $15.94) from €30.00 (US $31.88) per month for unlimited minutes, 300 SMS and up to 30 GB of data.
During the end-of-the-year holidays, customers are eager for discounts to celebrate the spirit of the season—and to compensate somewhat for the large amounts they need to spend on gift-giving. Mobile operators tend to make this a time for offering generous promotions to stimulate uptake, data use, and customer acquisition. 3 Italia’s festive offer this year is particularly generous, cutting prices on several prepaid options by half. We think these dramatic discounts will likely pay off for the operator, by attracting significant new business. In time, such customers can in many cases be upsold or even transition to postpaid, so the short-term financial impact of a 50 percent discount can in the long run be considered as an investment.