3 Italia's Teen-Oriented Mobile Offering

Italian operator 3 Italia launched a time-limited mobile offering during the Easter season, targeted at teenage users. The operator’s All-In Teen Limited Edition bundle came with 10 GB of data, 1,000 minutes of calls and 100 SMS for €5.00 (US $5.32) a month. There was a one-off activation fee of  €9.00 (US $9.57), and the offer was only available to users who port their numbers from TIM or MVNOs by 19 April.
 
We have written on several occasions about the strength of the youth market and the importance for mobile operators to cultivate it. We generally understand “youth” to refer to young adults, who are digital natives and are still forming their spending habits and brand loyalties. But we should be aware that the age at which people become users of mobile technology is getting lower and lower, especially in affluent markets. As a result of this trend, operators can benefit from getting hold of potential long-term customers as early as possible.
 
Pushing the definition of the mobile youth market downward in terms of age is going to be increasingly prevalent, we believe. 3 Italia’s move, although a short-term promotional one with limited eligibility, is indicative of the direction in which MNOs might choose to go. The All-In Teen Limited Edition bundle seems appropriately designed, in that it includes a fairly generous data allotment to accommodate teens’ desire for streaming entertainment content and games, as well as a good number of voice minutes but not many SMS, reflecting young users’ preference for OTT messaging apps.
 
The extremely low monthly rate is also a thought-provoking idea, in that it suggests that the teens are be paying for this plan themselves, rather than their parents. What this means is that the operator clearly wants the teens to be making brand choice, so that they can be cultivated for future, and indeed long-term, loyalty. For MNOs, the argument that the earlier you can get them, the longer you can keep them is likely to be increasingly persuasive.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance.

To learn more about Tarifica, please visit www.tarifica.com 

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3 Italia Halves Price of Prepaid Plans in Holiday Offer

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.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. To learn more about Tarifica, please visit www.tarifica.com