PosteMobile takes an Unconventional Approach to Pricing

Italian MVNO PosteMobile has announced the launch of two new plans in its “Creami” (“Create Me”) range of flexible, low-cost tariffs. The Creami Relax 20 plan comes with unlimited credits for use on calls and SMS, plus 10 GB of mobile data at speeds of up to 300 Mbps at a price of €8.00 (US $9.49) a month for three renewals, descending to €7.00 (US $8.31) a month until the sixth renewal and €6.00 (US $7.12) a month from the seventh renewal onwards. After one year, the data bundle is doubled to 20 GB a month at no extra charge. 

Alternatively, users can subscribe to the Creami Relax 20 Special plan with 20 GB of data right away at a cost of €36.00 (US $42.73) over six months and €6.00 a month from the seventh renewal onwards. Both plans are now available until 31 October.

PosteMobile is an MVNO launched in 2007 by the Italian postal service, running on the Wind network. Its Creami Relax 20 plans are noteworthy for employing a decreasing rather than increasing plan structure.

Many plans and promotions offer low prices up front to attract customers and then raise them later, once the customers have become well established. In this offering, the initial rate is higher and goes down over time. That is because this, like most MVNO plans, is prepaid and without contract commitment. Lack of commitment leads to instability in the subscriber-operator relationship and the possibility of non-renewal, dormant accounts and churn. Therefore, PosteMobile is evidently thinking in terms of building some longevity into the subscriber relationship by promising that the longer the subscriber stays and renews the tariff, the lower the rate will be.

In Creami Relax 20, only do the monthly prices for calls, SMS and data go down at three-month intervals, culminating in a price 25 percent lower than the original after six months, but the data allotment is doubled after one year with no increase in price. Creami Relax 20 Special takes a slightly different approach, requiring more commitment up front in exchange for immediate access to the lowest monthly price and the double data. The Creami Relax 20 seems to be better tailored for its purpose, since avoidance of contracts or longer-term commitments is a common priority among subscribers to MVNOs and other budget brands.

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