ICE Mobile Plans Offer Top Value to Costa Rica Consumers

Tarifica has announced the latest Tarifica Score™ measure of consumer value for postpaid mobile plans in Costa Rica. (Tarifica Score values range from 0 to 100). Tarifica applies its “Top Value Plan” designation to the highest scoring plan in each of ten market segments which consist of two types of plans: SIM-only and ‘with phone.’

ICE captured nine of ten top value plan positions in both categories (SIM-only and ‘with phones’) due to its effective promotions, competitive prices and unlimited 3G data plans. Melissa Mascarenhas, Tarifica analyst for Latin America, noted, “There are two ICE promotions that helped it achieve the top value position in so many segments. The first promotion charges customers once every 90 days for purchasing 4G LTE instead of every 30 days, thus reducing the cost by two thirds. The second promotion offers customers 3 GB of 4G LTE for 4 months free when they purchase a 4G compatible device with a Conectado, Profesional, or iPhone plan.”

All of Movistar’s plans in the SIM-only category score below 50 points. While the operator has competitive prices, its moderate speeds and limited data allowances put all of its SIM-only plans on the lower end of the Tarifica Score spectrum. However, Movistar landed the top value position in the ₡35,001 to ₡45,000 segment with its Plan 4G @ 5 in the ‘with phone’ category.

While Claro offers flexible plans that allow customers to ‘build their own plans’ the Tarifica Score reveals that the unit price of these plans is consistently higher than the Top Value plans from other operators. As a result Claro does not have any top value plans in the SIM-only category and only three of its plans score above 50 points.

The overall top plans for all operators in the SIM-only category are on the very low end of the price spectrum and have fairly low data speeds. High speed data generally increases a plan’s value but the high price of 4G in Costa Rica offsets the added value of its high speed.

“In today’s mobile marketplace, consumers are flooded with hundreds of plan variations and constantly shifting promotions and deals—the majority of which come with different costs and services, and access networks of differing strengths. Operators can use Tarifica Scores to help consumers cut through the clutter and identify those plans in every market segment that offer the best value for the money,” Tarifica Program Manager, Will Watts.

Tarifica, a unit of T3i Group, has been the leading provider of telecom pricing information for close to four decades. It maintains the most robust, in-depth and up-to-date pricing database in the industry, which includes mobile and fixed line rates from over 400 operators in 85 countries, as well as historical data going back to 1997. Tarifica also produces reports, surveys, publications and custom analyses. Its clients include carriers, regulators, enterprises and consultants in every region of the globe. For more information, please visit www.tarifica.com. Tarifica also maintains a presence on the following social media platforms:

Guatemala’s Court Suspends Tax on Mobile Lines

The Constitutional Court of Guatemala has suspended the implementation of a monthly tax on mobile telephony lines.  The court accepted an appeal made by local operators Claro, Tigo and Movistar. The Congress had approved a monthly tax of GTQ 5.00 (US $0.64) for each active mobile line in the country. The measure was initially expected to enter into force on 1 January. The court said that the implementation of this tax will be suspended until a definitive ruling is issued.

Eliminating the tax would certainly serve the interests of the MNOs that filed the appeal, but it would also serve the interest of the Guatemalan mobile market as a whole. The building out of infrastructure is an important need in this developing nation, which has seen far too little investment in the sector for years. Imposing extra costs on mobile operators could stifle such investment, so if the court were to rule in such a way that the tax suspension becomes permanent, the interests of the country’s mobile market would be well served. 

The above item appeared in a recent issue of Tarifica's "The Story of The Week", a weekly report that analyzes noteworthy developments in the telecoms industry from around the world. For past issues or to learn more about The Story of The Week or to contact the Tarifica Research department:  http://www.tarifica.com/contactus.aspx

Personal and Jasper Launch Scalable Worldwide M2M Solutions

Argentinian mobile operator Personal has partnered with Jasper, a global provider of cloud-based platforms for the Internet of Things (IoT), to offer M2M connectivity to the operator’s business customers. The partnership offers Personal’s business subscribers a scalable solution that enables them to manage their M2M services around the world. Personal will offer the services in several vertical markets.

As we have written previously, IoT connections are predicted to total 26 billion worldwide by 2020. According to reports, the value of the M2M market in Latin America is expected to grow from US $4.6 billion in 2014 to US $8.2 billion by the end of 2019. While Argentina is not in the same league as the region’s leaders, Mexico and Brazil, in terms of service and speed—the country has yet to launch 4G service—current reports estimate that its internet service will be well within range of the region’s average by 2018. As M2M connectivity continues to increase in Argentina, the country’s mobile operators need to create services that will provide their business customers not only connectivity for M2M applications but also value-added services through M2M solutions. These can be created by partnering with M2M platform vendors such as Jasper. In terms of subscriber numbers, there is very little disparity in market share among Argentina’s three main mobile operators, and Personal’s partnership with Jasper is not an innovative one, as both Claro and Movistar already have partnerships with M2M solution vendors. So while Personal’s collaboration with Jasper may not result in any new subscribers, the deal should keep the MNO in line with its competitors.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues or to speak with the research team: http://www.tarifica.com/contactus.aspx

Notable Regional Developments

Asia/Pacific

Australian operator Telstra has signed a network-to-network interconnection (NNI) agreement with Indian operator Tata Communications to use Tata’s 116 points of presence (PoPs), as a way to extend Telstra’s reach into the country’s tier II and tier III (smaller and minor) cities, such as Jaipur, Surat and Trichy. This agreement increases Telstra’s access to more than 2,000 PoPs in 230 countries and territories and positions it as one of the most scalable networks across the globe. The initiative augments Telstra’s strategy to include NNI agreements in emerging countries that are showing signs of growth and an increased demand for connectivity.

Europe

France mobile operator Orange’s Business Services unit is partnering with electric car manufacturer Tesla Motors to provide wireless connectivity to drivers of Tesla’s Model S cars in France. Through Orange’s mobile network and SIM cards, consumers can experience connected-car features such as interactive navigation services, internet radio, web browsing, seamless remote diagnostics and over-the-air updates of M2M software.

Latin America

Argentina’s telecoms ministry SeCom announced that the country’s local operators Claro, Personal and Movistar as well as multimedia company Grupo Uno are prequalified to bid on 4G spectrum in the 31 October auction. The government expects to award 90 MHz of spectrum in both the 700 MHz and the 1,700/2,100 MHz bands.

Middle East/Africa

Vodacom Business, a subsidiary of the Vodacom Group that provides connectivity and telecommunications services to businesses, has introduced cloud solutions to its Nigerian customers. Due to security concerns, only a third of businesses in Nigeria are currently using cloud technology. According to Vodacom, its enterprise-class cloud and hosting solutions provide businesses with a secure and reliable IT infrastructure.

North America

U.S. MVNO Kajeet will provide affordable mobile broadband coverage via Sprint’s network to 2,000 additional U.S. school districts, an increase over the 37 districts that Kajeet originally partnered with in the project. Through this connectivity, students are able to access online textbooks, apps, emails, documents and websites. The schools are also providing students with the Kajeet SmartSpot solution, a portable Mi-Fi mobile hotspot to ensure connectivity for students outside of the classroom.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:  http://www.tarifica.com/TarificaAlert.aspx

Notable Global Telecommunication Developments

Asia/Pacific

Indian mobile operator Tata DoCoMo has launched SimplySwap, a handset protection service for its postpaid customers. New and existing subscribers who purchase a handset from the operator can enroll in the program, which will allow them to swap their devices for the same brand and model twice each year. All swapped handsets include a new six-month warranty. The SimplySwap service charge includes a monthly fee, which is included in customers’ bills as a well as a fee when the device exchange is completed. These charges depend on the type of device and start at INR 89.00 (US $1.46) for the monthly service fee and INR 400.00 (US $6.57) for the corresponding swap fee.

Europe

U.K. mobile operator Vodafone will launch a mobile wallet service next month. In a partnership with Visa, the MNO has developed services that will work with a SIM card that is embedded with NFC technology, which will enable mobile devices to be used for contactless payments. The Vodafone wallet, which will be available for Android phones, will allow users to pay for travel on the London Underground and to make person-to-person payments.

Latin America

Three of the four major operators in Brazil have requested a stop or changes to the upcoming 30 September auction for 4G services of the 700 MHz band. Operators Vivo, Claro and TIM Brasil have all said that they disagree with certain parts of the 700 Mhz auction rules and want them changed. The carriers are complaining that although the rules set a minimum on how much the operators would need to pay TV companies for the cleanup of

spectrum, they do not set a cap on those payments. The operators also oppose the extra payment that is being imposed on telecom service providers that currently own 4G licenses—basically the major MNOs. The regulator, Anatel, has indicated that the auction will not be postponed; however, it will judge all appeals against various aspects of the 700 MHz band auction at a meeting on 18 September.

Middle East/Africa

South Sudan’s largest mobile operator, Zain, has partnered with Huawei, a global technology solutions provider, and the United Nation’s peace and security promoting organization, UNESCO, to provide internet access to schools in the country. Zain’s base stations will be used to power the project, and the first phase of this initiative will bring internet access to more than 3,000 school children.

North America

Verizon Enterprise Solutions, the business and government solution provider of U.S. mobile operator Verizon Wireless, has announced that Verizon Auto Share, a secure platform that will enable drivers to rent, drive and return cars and other vehicles, will be available before the end of 2014. The Scan & Go feature of the service’s app, which is available for smartphones and tablets, will provide drivers with access to their chosen vehicle and with the ability to start and drive it through a key fob that appears on the app. The app targets customers of rental car companies and auto dealers.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:  http://www.tarifica.com/TarificaAlert.aspx

Costa Rican Regulator Proposes Changes to Data Pricing

Costa Rican regulator Superintendencia de Telecomunicaciones (Sutel) has decided to hold a public consultation on the subject of the possible introduction of a flat rate for mobile internet services for postpaid consumers, based on the amount of data used. The scheduled date for the consultation is 1 July 2014, and Sutel will have one month to respond to the issues raised, after which it will make a decision on the proposed tariff plan. The scheme would involve users being charged a rate of CRC 0.0075 (US $0.0001) per KB regardless of transmission speed. Operators will also be obliged to offer a basic plan for CRC 3,750.00 (US $6.61) that would offer a data allowance of 500 MB, with the proposed data billing rate applying for excess usage. This method of pricing for data use has only been applied to the prepaid sector so far and was implemented by carriers as recently as mid-2013.

Since the liberalization of the telecom market in late 2011, Costa Rica has seen substantial growth in terms of subscriber numbers and competition. In a country where fixed broadband penetration is only around 10 percent, mobile devices are the primary source of internet access. A recent report from Sutel indicated that as of the end of June 2013, nearly 88 percent of Costa Rica’s 3.99 million internet users were mobile broadband subscribers. The number of mobile internet users grew by 86 percent from Q1 2012 to Q2 2013. In fact, with the increasing adoption of smartphones, data usage has also risen considerably. Now operators ICE, Claro and Movistar are faced with the same dilemma as other global operators—that of providing and maintaining quality of service while dealing with an increasingly congested network. ICE introduced a throttling threshold of 6 GB on its Kolbi 3G and 4G unlimited postpaid plans earlier in the year.

Operators in other markets around the world have found that an unlimited model is not sustainable in the medium to long term, especially if the operator has 4G. Many operators have used a 4G launch as an opportunity to move to a tiered data pricing structure. While such a model allows users to choose a plan that meets their needs, it also gives the operator the opportunity to upsell users who regularly exceed their data allowances. Many Costa Rican consumers have voiced concerns over this proposal because they are used to relying on unlimited mobile internet. However, if operators offer appropriately structured tiered plans, the average user may benefit from improved services and better cost control.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:  http://www.tarifica.com/TarificaAlert.aspx