Discounted Rates “For Life"

Belgian mobile operator Base has announced several aggressive changes to its mobile postpaid plans. First, it overhauled the available plans by increasing their data allowances and discounted their monthly prices, often by fairly significant degrees.  6GB instead of 5GB per month for EUR 11 (US $11.81) instead EUR 15 (US $16.11). 15GB instead of 10GB per month for EUR 15 (US $16.11) instead of EUR 20 (US $21.48) 40GB instead of 22GB per month for EUR 21 (US $22.55) instead of EUR 29 (US $31.15) 100GB instead of 70GB per month for EUR 29 (US $31.15) instead of EUR 39 (US $41.89) Second, Base unveiled an online-only promotion that offers to lock in these discounted rates “for life". The “price for life” promotion offered by Base is certainly a bold move to differentiate themselves from competitors and attract customers. It’s a tactic that has been used recently by other telecoms, as it can be a powerful draw for customers who are looking for predictable pricing in a time dominated by inflation concerns. However, there are risks associated with this approach. If inflation worsens or telecom cost drivers rise, operators may find themselves stuck with a pricing structure that is no longer sustainable. Additionally, if customers are allowed to stay on the same plan indefinitely, it can create challenges for the operator if they want to retire those plans in the future. They may need to offer costly incentives for customers to switch to newer plans, which could negatively impact their bottom line. That being said, if implemented correctly, the “price for life” promotion can be a valuable tool for operators looking to gain a competitive edge, especially in an uncertain economic climate. It can help to build long-term customer loyalty and cement the operator’s reputation as a reliable, trustworthy provider. Ultimately, the success of this type of promotion will depend on a variety of factors, including the competition landscape, market conditions, and the ability of the operator to manage costs effectively over time. 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