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Monday, April 28, 2025
Tarifica Names Sky Mobile UK's 'Sky Piggybank' as Consumer Value Plan of the Month for April 2025
Thursday, September 26, 2024
Virgin Mobile UAE's 'Build Your Own Plan' Wins Consumer Value Plan of the Month
Virgin Mobile UAE's innovative "Build Your Own Plan" system provides users with the unique ability to choose the exact amounts of data, minutes/SMS, and international calling they require. This flexible offering stands out in a market where predefined plans are the norm, and Tarifica has recognized its potential to deliver significant value to consumers across a range of usage patterns.
The "Build Your Own Plan" feature allows consumers to pick data options starting from as little as 3GB and scaling all the way up to unlimited data. Users can also customize their minutes/SMS bundle, with choices ranging from 50 to unlimited. Additionally, international calling options are available, starting at zero and going up to 1000 minutes. The plan offers remarkable flexibility, making it easier than ever for consumers to design a mobile service plan tailored precisely to their usage needs.
In commenting on the plan's selection, Soichi Nakajima, Tarifica's Vice President of Data and Analysis, stated: "What makes Virgin Mobile UAE's 'Build Your Own Plan' so compelling is the focus on individual consumer behavior. By allowing customers to fine-tune their mobile plans according to their specific usage, Virgin Mobile is offering not just a product, but a truly customized service. This flexibility provides genuine consumer value, as it ensures users pay for exactly what they need and nothing more."
Virgin Mobile UAE also rewards long-term commitments with significant discounts. Customers who choose a six-month contract receive a 30% discount on their plan, while those opting for a 12-month contract can enjoy up to 50% off. Prices for the 12-month plan start at just AED 39.50 per month (approximately USD 10.75), excluding VAT, making it an excellent value for consumers seeking both customization and affordability.
"The combination of customizable options and long-term contract discounts is a great way for Virgin Mobile to meet the needs of different customer segments," Nakajima added. "Whether you're a heavy data user or someone who values international calling, this plan ensures you're getting the most value for your money while also benefiting from significant savings."
This innovative approach is what led Tarifica to select Virgin Mobile UAE's "Build Your Own Plan" as the Consumer Value Plan of the Month. Tarifica believes this offering exemplifies a shift toward greater personalization in the telecom sector, offering an affordable and tailored mobile experience.
Tarifica's selection process leverages its advanced Telecom Pricing Intelligence Platform, which analyzes telecom plans worldwide to identify those that offer the best value to consumers. The Consumer Value Plan of the Month feature continues to highlight plans that provide exceptional benefits, helping consumers make informed decisions.
For more details on this plan, please visit the Virgin Mobile UAE website at Virgin Mobile UAE.
About Tarifica
Tarifica is an industry leader in providing telecom data and software solutions to the global telecommunications sector. Specializing in telecommunications plan and pricing information, Tarifica delivers critical insights and analytics to help telecom companies and regulators make data-driven decisions. The company's clients include national regulators, mobile and fixed-line operators, internet service providers, consultancies, and financial institutions worldwide. In addition to its flagship SaaS products, Tarifica offers tailored consulting services to address specific client needs. The company's commitment to innovation and excellence has established it as a trusted partner in the rapidly evolving telecom industry.
About the Telecom Pricing Intelligence Platform
Tarifica's Telecom Pricing Intelligence Platform (TPIP) offers comprehensive data on plans from major operators around the world, empowering users to create customized profiles for in-depth comparisons and analyses. Subscribers can explore trends and visualize data with ease using intuitive tools and multiple filters for a granular view. Say goodbye to Excel-based limitations and embrace modern features like screenshot captures, alerts, and historical offers. TPIP is adaptable to client needs, allowing customization of data structure, geographical scope, and frequency.
Tuesday, September 24, 2024
Commoditization of 5G Spreads to High Data Plans in Some European Markets
by Will Watts |
As mobile carriers fight to differentiate their services and maintain prices, a key target area has always been high data volume 5G plans. Most mobile operators have long projected that this premium segment would be the least sensitive to downward pricing pressure, given that these customers tend to be wealthier and, due to their heavy phone usage, would be more aware of the differences between providers and mobile service tiers. In short, if operators could charge a premium to any customer group, these would be the ones.
While it is still early in the process, there is mounting evidence that even this strategy may not overcome the general trend towards commoditization facing the mobile industry. Currently, in its studies of 5G pricing, Tarifica categorizes the top segment of mobile consumers – the “super users” – as 100GB a month of mobile data (though there are some even heavier users, these represent a minuscule portion of the market). In just the last quarter, operators in Belgium, Ireland, Spain, and, particularly, Poland all significantly reduced prices for this group. If these pricing trends persist and are replicated in other countries, these “super users” will become just another market segment where operators face declining margins over time.
An Instructive Example: 20GB Plans in Germany |
Looking back, it was not too long ago that 20GB per month of high-speed data was considered heavy usage, with consumers in this segment being viewed as the key to future growth for operators. However, across multiple markets, prices for this segment have fallen substantially as operators have felt pressure to offer ever more data for similar prices.
For example, even in Germany—a market traditionally known for higher costs and where operators have more pricing power—the prices for 20+GB of 5G data have fallen dramatically in the past year (see chart below).
The Next Domino to Fall: 100GB Plans
In the past quarter, Tarifica’s researchers have identified increasing activity in the 100+GB space. Across Europe, operators have been launching new offers targeting these users, raising the data volumes of existing plans to this level, or discounting their highest volume offerings. Collectively, these actions have driven down prices for this user group quite meaningfully.
The most noteworthy example of this trend was Poland, where three operators – Play, Orange, and Netia – all saw prices drop by an average of more than 37% (see chart below).
While not as widespread as in Poland, operators in Belgium (Orange), Ireland (Tesco) and Spain (Yoigo) also saw price reductions ranging from 17% to 44% for 100+GB plans. Importantly, all of these changes occurred just between Q2 and Q3 of 2024. If the analysis had been expanded to cover the whole of 2024, we would have seen even more price reductions in this segment globally. In some ways, these changes are the inevitable consequence of the “More for More” strategy which telcos have embraced in recent years. To maintain ARPU in the face of intensifying competition, mobile operators opted to steadily increase data allowances and other features. In exchange, though operators were occasionally able to raise prices, the strategy was predominately aimed at holding fees steady. While this strategy has been relatively effective to date, it does not do anything to enhance the underlying value proposition of mobile services. Instead, it serves to continuously reduce the per unit price, even as overall prices remain relatively unchanged. With prices now beginning to fall sharply on this highest tier of 5G service, it is possible that operators are approaching the limits of “More for More”. While some operators may be able to push consumers towards the 250GB or even 500GB of usage per month and delay a little longer, there are simply very few individuals who actually use this much data on their mobile device on a monthly basis. Even with frequent video streaming and regular hotspot use, most individuals fail to exceed 100GB on a regular basis. If operators persist with this strategy, they risk an increasing number of consumers realizing that they are already maximizing the value of their connection. As a result, the strategy will reach saturation where additional data or features no longer incentivizes customers to upgrade or pay more. At that stage, operators that fail to innovate or offer new, more compelling services will have no recourse but to drop prices or cede market share to competitors that do. Tarifica's Pricing Intelligence Platform Discover the power of Tarifica's Telecom Pricing Intelligence Platform (TPIP) and unlock a world of telecom insights. TPIP offers comprehensive data on plans from major operators, empowering you to create customized profiles for in-depth analysis. Explore trends and visualize data with ease using intuitive tools and multiple filters for a granular view. Say goodbye to Excel-based limitations and embrace modern features like screenshot captures, alerts, and historical offerings. TPIP is adaptable to your specific needs, allowing customization of data structure, geographical scope, and periodicity. Ready to dive in? Click the link below to watch our 1-minute introduction video, and discover how TPIP can transform your telecom analysis: Watch the TPIP Introduction Video For more information, a personalized demo, or a free trial account lasting one month, reach out to us at info@tarifica.com. Start making data-driven decisions with Tarifica today.
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Tuesday, July 23, 2024
The Consumer Value Plan of the Month
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Wednesday, February 14, 2024
Unraveling the Future - Forecast 2024
In the coming year, we anticipate seismic shifts in the industry, driven by transformative technologies and shifting consumer behaviors. From the widespread adoption of eSIM technology to the rise of family-centric subscription models, operators will face unprecedented opportunities and challenges.
eSIM: Revolutionizing Competition
One of the most significant trends on the horizon is the proliferation of eSIM technology. First released in 2016, it was primarily used in IoT devices, but the launch of the iPhone XR in 2019 introduced eSIM to the consumer phone market. eSIM has since gained traction in consumer smartphones, unlocking new possibilities for bundles, price competition, and personalized offerings.
Apple's groundbreaking move to eSIM-only iPhones in the US (starting with the iPhone 14 and 15), along with their newly minted market dominance, surpassing Samsung for the first time last month, together signify a pivotal moment for eSIM adoption. This sets the stage for eSIM to play a transformative role in the reshaping of competition and consumer choice in 2024.
Navigating Churn and Competition
eSIM allows for instant activation and simpler enrollment, which makes switching from one operator to another easier than ever. Even before fully switching, customers may be able to download an eSIM profile with a "test drive" offer to try out a carrier's network, with the trial period defined in terms of days or data volume, or both. Churn in most developed markets is at around 10%, but eSIM could easily push this rate even higher.
Additionally, we anticipate increased competition among operators, not only centered around pricing – which remains a key factor in consumer plan selection – but also on the quality of service. Distinguishing between providers offering similar pricing structures will increasingly rely on a blend of these two factors in a price-quality ratio. As this metric will play a pivotal role in analyzing telecom competition moving forward, we have already integrated the capacity to generate this ratio within our Telecom Pricing Intelligence Platform, effectively merging network Quality of Service (QoS) data with pricing information to facilitate more comprehensive comparisons.
While family plans have gained popularity in the US, offering devices for multiple users, operators are now exploring more versatile bundling options. These options allow users to add a wider array of eSIM-enabled devices like tablets, laptops, and connected car dongles to their phone plans, and enable multiple devices for one user. In a bid to attract new customers, operators are already providing price discounts on companion device plans, with a separate data allowance, when bundled with a primary smartphone.
As telecom pricing plans become less standardized and more diverse, this will introduce more complexity into the analysis of pricing and plan data. In light of increasing variability, a basket-based approach is likely to be the most realistic method for comparing offers. With Tarifica's Telecom Pricing Intelligence Platform (TPIP), we capture all the raw pricing and plan data, which enables clients to construct and adapt baskets to various scenarios, which goes beyond traditional comparisons utilized in the market, such as the OECD.
In an era of escalating competition, telecom providers are beginning to embrace the transformative potential of eSIM technology. Leveraging its capabilities for instant activation, versatile bundling options, and enhanced customer experiences, operators are poised to redefine the landscape of competition and consumer choice. Tarifica's Telecom Pricing Intelligence Platform (TPIP) empowers clients to navigate this dynamic shift, facilitating comprehensive analysis and adaptation to the evolving eSIM-driven marketplace.
Bundling Beyond Telecom
While “more-for-more” has been the dominant strategy in telecom plan development, the future of bundling extends beyond shared connectivity. In the coming year, we expect operators to focus more on streaming content and other digital subscription services which are not traditionally part of the telecom ecosystem.
It’s reasonable to say that the telecom market has reached maturity—available products are essentially interchangeable (meaning consumers are primarily basing their decision on price), and therefore the only way to continue to grow has been to bundle together ever-more services, enabling operators to continue to increase the total bill. However, there are two indicators pointing to the need for operators to begin thinking outside the box:
1. Quad-Play is Nothing New
In many European markets, all MNOs now offer the full quad-play bundles (broadband internet, television, telephone and mobile). The challenge in continuing the “more-for-more” strategy is that more services must be added to the package to justify increased prices.
2. Erosion of Core Value Propositions
The traditional quad-play bundle is showing cracks, with certain elements struggling to maintain the appeal they commanded a decade ago. While mobile lines and fixed broadband connections are considered to be as essential as ever, the other two elements, landlines and television, are seeing their value in the marketplace decline.
We expect the addition of streaming services to bundles to continue and accelerate further this year, with most of the largest operators having multi-app bundles available with their plans by the end of 2024. However, having made the first successful move toward applications not directly related to telecom, it would make sense for operators to look even further afield. Beyond streaming apps, we anticipate operators to explore partnerships with other services from the subscription-based internet economy, such as Uber, Instacart, or Nike Membership, further enriching their bundles with diverse offerings.
Of course, developing these new bundles will not be without its challenges. Choosing the right partnership and pricing structure is critical. Balancing discounts with consumer flexibility is crucial to incentivize bundle adoption while ensuring profitability. Despite these potential pitfalls, the evolution of telecom bundles towards comprehensive digital subscriptions represents a significant opportunity for operators to drive growth.
Family-Centric Strategies
While the concept of bundling fixed broadband access, fixed voice, mobile connection, and TV services into a single package—commonly known as double, triple, or quadruple play depending on the number of services bundled—is not new, its significance is poised to increase significantly. In 2024, the battle for market share will likely begin to focus more heavily on the family unit, with operators vying for dominance in quadruple play and multi-SIM subscriptions.
Tightening Belts, Expanding Choices
The current economic landscape, marked by rising inflation and financial strain on consumers, has led individuals and families alike to seek more and more ways to economize. In this context, the appeal of comprehensive bundled services becomes increasingly attractive as consumers aim to streamline their expenses while still enjoying a wide range of telecommunications offerings.
At the same time, telecommunications providers are grappling with the dual challenge of reducing churn rates and maintaining profitability in the face of declining Average Revenue Per User (ARPU) and escalating acquisition costs. As a result, the focus on capturing entire families through bundled subscriptions has become more pronounced than ever before.
By providing comprehensive bundled offerings that encompass essential services under a single umbrella, providers can not only enhance customer retention but also drive sustainable growth in an increasingly competitive market landscape.
Value-Added Connections with Mobile
Put simply, while one fixed broadband connection typically suffices for an entire household, the same cannot be said for mobile subscriptions. In the past, one household could get by with one (or two, in the era of dial-up internet) phone lines, but today, each member of the household generally requires their own mobile line. However, by consolidating these subscriptions under a single contract, operators can present families with compelling quadruple play offers, bundling not only fixed broadband but also multiple mobile subscriptions at a discounted rate.
This approach not only offers families cost savings but also introduces additional incentives such as extra mobile data or enhanced speeds, further sweetening the deal for potential subscribers. As we look towards 2024, we anticipate a proliferation of such bundled offerings, characterized by increasing value for money and enhanced perks.
Once a Family, Always a Family
From an operator's perspective, one of the primary advantages of offering family-oriented subscription bundles is the anticipated lock-in effect they generate. By bundling services for the entire family, operators can create a scenario where if any member were to leave the subscription, the collective benefits, including added value and discounts, would be lost for all members. This dynamic significantly reduces the likelihood of churn among family members, as the loss of benefits acts as a deterrent to individual subscription cancellations.
Despite the initial costs associated with providing discounts, extra data, and speed, operators recognize the long-term value of securing subscriptions with reduced churn probabilities. The potential for sustained revenue from loyal family subscribers outweighs the upfront investment required to incentivize subscription bundling.
In a fiercely competitive market, telecom providers are increasingly recognizing the power of family-centric strategies. By catering to the diverse needs and preferences of families, offering them value, convenience, and flexibility, providers will be well-positioned to unlock a loyal customer base and drive sustainable growth.
In addition to our analysis of telecom industry trends, Tarifica hosts quarterly webinars where we delve into various telecommunications strategies, including the intricacies of family-oriented subscription bundles. These webinars serve as valuable forums for industry professionals to exchange insights and strategies, ensuring that operators remain equipped to navigate the evolving landscape of telecommunications with confidence and foresight.
5G Fixed Wireless Access (FWA)
Fixed Wireless Access (FWA) finds itself at the center of a heated debate in the telecom industry. As the technology evolves, key questions remain: Is it a competitor or a collaborator to fiber networks? Can it truly bridge the digital divide in remote and underserved areas where laying fiber is impractical? Will public support and funding materialize to support its wider adoption?
The debate surrounding 5G FWA will undoubtedly intensify in 2024. However, amidst these debates, one crucial aspect often overlooked is the cost for consumers and the value that cost offers.
More FWA On The Way
Tarifica’s Telecom Pricing Intelligence Platform (TPIP) meticulously monitors Fixed Wireless Access (FWA) as part of its comprehensive coverage of fixed broadband plans and pricing. Over the course of 2023, our data showed a notable trend: the average price of FWA has predominantly decreased across the countries we track. However, in instances where prices have risen, the primary catalyst often appeared to be the new introduction of 5G FWA into those markets.
While it’s understandable that 5G FWA commands a higher price compared to its 4G counterparts, mirroring the pattern seen in standard consumer plans, we anticipate a gradual transition towards 5G FWA adoption. This transition, coupled with heightened competition, is expected to drive an overall trend of price decreases in the FWA market.
Fiber vs FWA: The Value Equation
While 5G FWA promises faster speeds, the question of cost-effectiveness lingers (and is often overlooked). Our data indicates that, when comparing 5G FWA to fiber connections based on monthly costs against maximum download speeds, fiber generally offers better value, particularly for speeds exceeding 1Gbps. In other words, for the same price, fiber typically delivers faster download speeds compared to FWA. Additionally, factors such as FWA’s slower upload speed and potential data caps should be considered.
Nonetheless, FWA boasts a significant advantage in its extensive coverage, utilizing the mobile network without requiring physical installation up to the household. Thus, FWA can provide a viable broadband connection option, especially in areas where fiber infrastructure is unavailable. Given these considerations, we anticipate a rise in FWA and 5G FWA subscriptions throughout 2024, particularly in rural regions lacking fiber alternatives. This growth is expected to be bolstered by public initiatives aimed at expanding broadband access across diverse populations.
The debate over Fixed Wireless Access (FWA) continues to rage on. Our analysis unveils where fiber holds the edge in value, particularly for high-speed users. However, FWA’s extensive reach presents a significant opportunity for operators to bridge the digital divide and expand their subscriber base, especially in rural areas without fiber infrastructure.
Conclusion
Our forecast for the telecom industry in 2024 reflects a landscape marked by rapid evolution and transformative technologies. From the widespread adoption of eSIM technology to the emergence of comprehensive digital subscription bundles, there are unprecedented opportunities and challenges for operators to navigate. As the industry shifts towards family-centric strategies, streamlined bundled offerings, and enhanced connectivity options, telecom providers must adapt to meet evolving consumer demands while maintaining profitability in a fiercely competitive market.
At Tarifica, we remain at the forefront of industry insights and trends, leveraging our Telecom Pricing Intelligence Platform (TPIP) to provide comprehensive data-driven analysis and strategic guidance to operators worldwide. With TPIP's unparalleled coverage and advanced capabilities, operators can navigate the complexities of the telecom landscape with confidence, unlocking new opportunities for growth and innovation in this dynamic telecom ecosystem.
About the Authors:
Soichi Nakajima: VP Data and Analysis - snakajima@tarifica.com
With over 20 years of telecommunication market analysis experience, Soichi oversees the data collection, quality, research, analysis, and production of all data projects and quantitative studies.
Will Watts: VP of Product - wwatts@tarifica.com
Will is responsible for the planning, build-out, and maintenance of Tarifica's data solutions, including the flagship Digital Intelligence Platforms. In his more than 10 years at Tarifica, he has successfully delivered custom projects and market analyses to clients such as GSMA, the World Bank, BEREC, Verizon, and Telefonica.
Vincent Bonneau: International Business Development - vbonneau@tarifica.com
With over 20 years of consulting experience in the telecom industry, Vincent leads business development for data collection studies and analytics platform development at Tarifica, working closely with regulators and operators to provide them with adequate pricing data for telecom plans and devices.
Tarifica's Telecom Pricing Intelligence Platform
Discover the power of Tarifica's Telecom Pricing Intelligence Platform (TPIP) and unlock a world of telecom insights.
TPIP offers comprehensive data on plans from major operators, empowering you to create customized profiles for in-depth analysis. Explore trends and visualize data with ease using intuitive tools and multiple filters for a granular view. Say goodbye to Excel-based limitations and embrace modern features like screenshot captures, alerts, and historical offerings. TPIP is adaptable to your specific needs, allowing customization of data structure, geographical scope, and periodicity.
For more information, a personalized demo, or a free trial account lasting one month, reach out to us at info@tarifica.com. Start making data-driven decisions with Tarifica today.
Monday, July 10, 2023
A Hint of the Green Future in Denmark
Telenor Denmark has announced the expansion of its "Mobilbyt" trade-in partnership with GreenMind, a company specializing in the refurbishment and sale of used electronics. The collaboration enables customers to combine a Telenor subscription with a discount on a newly reconditioned phone. The objective of the partnership is to promote a more sustainable approach to mobile device consumption.
According to a study commissioned by Telenor in April 2023, 54% of Danes have replaced their mobile phones within the past two years. The partnership with GreenMind aims to address the low recycling rates for consumer electronics, as less than one fifth of these devices are currently recycled. Electronic waste is recognized as the fastest-growing waste stream globally by the United Nations, but, as Tina Hogsted Svanberg, CEO of GreenMind has pointed out, choosing a used smartphone over a new one can save an average of 60 kg of carbon dioxide (CO2) emissions.
Under this initiative, shoppers will receive a discount on a recycled phone at any of GreenMind's thirteen Danish branches when they also purchase a Telenor mobile subscription. GreenMind’s recycling process ensures that the content of handsets is wiped before refurbishment and offers buyers a three-year warranty on their purchases.
The Telenor Denmark and GreenMind partnership is a byproduct of the continued trend that smartphones are lasting longer and the reduced differentiation between upgrade cycles. Older smartphones are holding more value and are more usable than ever. Globally, operators are providing more options for trade-in deals and there is increasing demand for used devices.
Beyond reinforcing this trend, the partnership is noteworthy for two reasons. First, it allows Telenor to position itself as an environmentally-friendly provider that offers customers incentives to purchase recycled devices. This approach allows the company to continue to accommodate customers who prefer new devices while also appealing to what may be a growing number of customers interested in sustainable alternatives. Even if only a relatively small number of Telenor users purchase recycled devices, the partnership enables the operator to highlight its work in its ads and branding.
Second, if the partnership is successful, it would signify a noteworthy shift in at least a portion of the mobile phone market. While there a secondary market for phones exists in developed economies, these have primarily been sold through more informal channels (e.g., resellers, auctions, and person-to-person). Traditionally, though, secondhand phones have traditionally been aimed at emerging markets. As Telenor is a major provider operating in a developed market, a thriving partnership with GreenMind going forward could indicate a growing acceptance of used phones even among less budget-conscious consumers. Overall, the outcomes of the program will provide insights into evolving consumer preferences and the demand for sustainable options in the mobile industry.
Tarifica is a global SaaS company and a market leader in the real-time collection, analysis and delivery of telecom plan and pricing data worldwide. Through a mix of AI, modeling and market expertise, Tarifica tracks hundreds of thousands of plan and pricing data points daily. No other company tracks more. Tarifica's mission is to continuously convert data into the dynamic intelligence that fuels opportunities for its clients, the world's leading operators, regulators and consultants.
Learn more about Tarifica at www.tarifica.com
Friday, July 7, 2023
Tackling Both Sides of the Equation in Slovakia
Orange Slovakia has introduced new mobile plans named Plus. This brand includes a range of mobile plans which all include a fixed volume of minutes and mobile data and unlimited SMS/MMS each month.
These postpaid packages come with two sets of added incentives designed to win new customers and keep them on the Orange network long-term. First, Orange is running a promotion that includes up to four months of free service for customers who switch their number to the operator and choose one of these new plans. Second, these offers include extra bonus data for each year the customer remains with Orange.
The launch of Orange Slovakia's Plus bundles showcases a strategic approach that combines attracting new customers and rewarding loyalty. By including enticing incentives such as free data for each year of customer tenure, Orange aims to not only entice new subscribers but also encourage long-term relationships.
The dual pronged approach which simultaneously combines promotions focused on both acquiring and retaining customers is uncommon. Yet this promotion strategy suggests the increasing competitiveness of the Slovakian market, as operators strive to capture and retain a loyal customer base.
Tarifica is a global SaaS company and a market leader in the real-time collection, analysis and delivery of telecom plan and pricing data worldwide. Through a mix of AI, modeling and market expertise, Tarifica tracks hundreds of thousands of plan and pricing data points daily. No other company tracks more. Tarifica's mission is to continuously convert data into the dynamic intelligence that fuels opportunities for its clients, the world's leading operators, regulators and consultants.
Learn more about Tarifica at www.tarifica.com