Anywhere SIM National Roaming Service to Tackle U.K. Notspots

Anywhere SIM, a new U.K. MVNO launching this summer, has announced that it will offer services allowing subscribers to roam on any U.K. network. The Lancashire based startup will offer a SIM card that will enable users to make or receive calls on the networks of O2, Vodafone, 3 or EE. According to the MVNO, cellular connections will be automatically switched between carriers, depending on which MNO has the best signal in a given location. Anywhere SIM says its offerings will be a good option for users who frequently find themselves in areas of no connectivity (notspots). Initially, the MVNO will offer three different prepaid tariffs, which will not be available on 4G networks. The Anywhere Home tariff, which will cost £0.05 (US $0.08) per voice minute or per MB of data, will allow users to receive calls via any network, but they must make outgoing calls or access data on O2, which is the home network. The Anywhere UK tariff will cost £0.10 (US $0.16) per voice minute or MB of data, and subscribers can send and receive calls and SMS or access data on any network. The Anywhere EU tariff extends roaming access to 27 European countries. It will cost £0.15 (US $0.23) per voice minute or per MB of data. The cost of sending and receiving SMS on all tariffs will be £0.05 per SMS.

 Last year, U.K. consumers were optimistic that the country’s major MNOs would create a solution similar to Anywhere SIM’s offerings as a way to get rid of notspots. Sajid Javid, who was Culture Secretary at the time, tried pressuring the mobile operators to offer national roaming, after Prime Minister David Cameron complained about not receiving a mobile signal in his home constituency and when traveling around the country. The mobile operators rejected the idea of national roaming and instead agreed to the request from Ofcom, the U.K. regulator, to build out their infrastructure, particularly in the country’s rural areas. Anywhere SIM’s launch as an MVNO is a clear indication of the lack of mobile coverage that exists in the U.K. What is not yet clear is how successful the MVNO will be in solving the coverage problem, considering that its offerings do not look particularly appealing. MVNOs generally provide plans tailored to meet the needs of budget-conscious consumers, but all three of Anywhere SIM’s tariffs are priced relatively steep compared to offerings from other U.K. MVNOs and MNOs. In addition, network switching is not seamless when a user moves to a different location after establishing a call or data connection. While we applaud Anywhere SIM for trying to tackle the U.K. notspot problem, its attempt, while not the end-all solution may be the catalyst for a solution.


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. Contact Tarifica for a subscription to the Tarifica Alert. 
Tarifica is the 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. Click here to contact a Tarifica Analyst.

3 UK Revokes Promise of No Mid-Contract Price Increases

Mobile operator 3 UK has recently informed consumers that it will not be upholding its commitment not to increase prices mid-contract for customers who have taken out a new contract or upgraded an existing one after 29 May 2015. These subscribers are being told the following: “Each May, your monthly package price will increase by an amount up to the retail price index (RPI) rate, published in February that year.” A 3 spokesperson elaborated that the operator’s new terms and conditions, which are being introduced this year, will be made clear to subscribers when they enter into their new contracts, and that subscribers will see their first RPI increase in May 2016. The institution of this new price increase by 3 leaves Vodafone as the only U.K. operator that is not raising its prices mid-contract.

This announcement from 3 is quite different from the original pledge it made in January 2014 in response to the guidelines of Ofcom, the U.K. regulator, which were intended to prevent fixed and mobile operators from increasing prices while customers were still within their contract period. Even with Ofcom’s one caveat, which allowed operators to impose increases based on inflation seen in the RPI, at the time 3 UK took a pro-consumer stance with regard to increases that could be made based on this index. Whether 3’s about-face on this point will have a negative effect on the operator through churn remains to be seen, particularly because other operators in the U.K. have mid-contract price increases. In 3’s case we cannot help but wonder if its recent acquisition of O2 in the U.K. played a role in bringing about the implementation of mid-contract price increases. While this merger will make 3 the largest operator in the U.K., it no doubt placed a financial burden on it. What is certain, however, is that a business will not hesitate to do what is necessary to react to changes in the economy no matter what type of price commitment it makes.

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. Contact Tarifica for a subscription to the Tarifica Alert. 
Tarifica is the 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. Click here to contact a Tarifica Analyst.

Telefónica Spain Pilots Mobile Video Delivery Platform

Spanish operator Telefónica is partnering with U.S.-based Opanga, a mobile video technology distributor, to pilot Opanga’s mobile-first video delivery platform with the country’s consumers. Opanga’s solution will enable Telefónica to gauge subscribers’ reactions to the mobile video services that it offers. “We expect Opanga’s technology will surprise our consumers with a completely new level of mobile video consistency and speed,” said Juan Ramón Martín, Customer Experience Manager at Telefónica Spain.

According to recent reports, mobile video is expected to account for a third of global mobile data traffic by 2016. By that time, at least 40 percent of smartphone owners will use streaming mobile video services. YouTube has been the main platform for video consumption, but in 2014 global mobile video viewing on Facebook increased by 75 percent from the previous year. While reports have indicated some deviation from this level of digital video viewing in some Western European countries, Spain shows signs that support the increased viewing trend. For example, in a comparison study that was carried out by the U.K. communications regulator Ofcom in October 2014, it was reported that 70 percent of internet users in Spain watch TV programs digitally, with 55 percent watching them on mobile devices.

In Spain’s highly competitive mobile market, the major operators are constantly devising strategies to help them increase or keep their position on the market. In addition to pricing offers affordably and to creating options that customers want, mobile operators have used the quality of their services as a differential in retaining and attracting customers. Mobile video services has emerged as a new area of differentiation for MNOs, and partnering with companies such as Opanga will enable them to provide such services at the highest level. It is also economically important for operators to offer these services without a huge increase in capital expenditures and without using a tremendous amount of spectrum. Telefónica’s ability to minimize these operating costs via Opanga’s platform will give it a higher revenue intake on its mobile video offerings.

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: Click here.

U.K. Operators to Lobby Regulator About OTT Services

Mobile operators will use a telecom industry review recently launched by U.K. regulator Ofcom to urge that the same rules be applied to OTT calling and messaging apps such as Skype, Viber and WhatsApp as to traditional telecom services, according to a report. The MNOs will argue that IP-based communication services are competing unfairly by avoiding costly regulatory hurdles while relying on MNOs’ network infrastructure. EE said, “We would expect Ofcom to address the changing relationship between network operators and the over-the-top players that rely on operator investment and services to grow their globally successful businesses.” Vodafone UK also said it would lobby the regulator on the issue, but neither operator provided specifics about their demands. While Tarifica has observed that many operators in various markets have adopted a strategy of “if you can’t beat them, join them” with regard to OTTs, some industry players have advocated taking a harder and more aggressive line, especially in light of the fact that OTTs depend on operator infrastructure in order to function. The U.K. operators’ lobbying on the issue, while it may not be successful, represents a significant first step in this direction for that market.

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. Tarifica is a division of T3i Group, a diversified telecom information provider. To learn more about Tarifica, please visit www.tarifica.com. Additional information on T3i Group can be found at www.t3igroup.com.

Vodafone to Ask U.K. Regulator to Set Conditions for British Telecom

In the wake of British Telecom’s announcement that it is in exclusive talks to acquire U.K. mobile operator EE from Deutsche Telekom and Orange, Vodafone plans to ask regulator Ofcom to make sure that BT makes its fiber network equally available to all mobile operators that rely on it, according to a report citing a person familiar with the matter. BT’s Openreach unit sells broadband access to mobile operators on a wholesale basis, and according to the source, Vodafone is concerned that if the deal goes through, BT would favor EE’s traffic over that of its rivals when it comes to internet speed. In a statement, Ofcom said that while it is not able to make any decision on transactions, it “may be asked to provide technical advice to the relevant competition authority.”   The 168-year-old BT has, over the past several years, transformed itself from a declining former state-owned telephone monopoly into a major power in fixed broadband. Its proposed acquisition of EE for US $19.5 billion in cash and BT shares would make it a major player in the converged services market that is rapidly emerging as key in the developed world. Combining EE’s mobile network with the fixed offerings of BT could benefit consumers by lowering prices, but it could also hurt competition due to BT’s unique status as a wholesale broadband provider. Vodafone, the third-largest mobile operator in the U.K. after EE and O2, certainly has reason for concern. If the deal goes through, it is by no means sure that any regulatory entity will take steps to force BT to grant, in effect, net neutrality to all operators that use its fiber broadband network. Whatever the case, though, if BT acquires EE, the pressure will be on Vodafone and O2 to follow suit and find their broadband acquisitions. Already Vodafone is said to be considering a merger with Liberty Global, which conducts cable operations in the U.K. under the Virgin brand.

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

UK Regulator Issues Report on Speed and Coverage

Ofcom, the U.K.’s telecom regulator, has issued a new report on the state of mobile broadband. It is based on the results of roughly 210,000 tests from five major cities—Birmingham, Edinburgh, Glasgow, London and Manchester. The study included the U.K.’s four largest MNOs—EE, O2, Three and Vodafone—and ranked them on the following metrics: average download and upload speeds (see graphs below), average time to load a web page and average latency (all of these for 3G and 4G). Also included in a separate section of the report were assessments of each operator’s current 3G and 4G coverage for June 2014 and October 2014. While the results were mixed across the multiple statistics, the strongest performer was EE, which posted the fastest 3G and 4G download speeds, fastest 4G upload speed and highest coverage percentages. With regard to the study, Ofcom Chief Executive Ed Richards stated, “Improving mobile quality of service is an important area of Ofcom’s work. Our research both incentivizes mobile providers to offer a higher quality of service while helping consumers choose a mobile package that best suits their needs.”

Unsurprisingly, the operators that did not perform particularly well have already issued statements calling the study’s results into question. While we appreciate that other operators might have performed better if a different set of cities had been chosen or if more rural areas had been included, we believe the data collection techniques and metrics used in the Ofcom study are statistically sound and that its results provide a relatively comprehensive picture of mobile broadband service in the U.K.

We applaud Ofcom for undertaking this type of serious study and publishing the results in a format accessible to laymen and believe that this represents a strong example of regulatory best practices. We have often criticized regulators for being overly involved in dictating mobile prices and service/coverage thresholds. While these goals are admirable, these kinds of top-down regulation are too often heavy-handed, inflexible and counterproductive. This newest Ofcom study represents a smart step in the other direction. The greatest challenge for consumers in the mobile ecosystem is the abstractness of the product—such things as download speed, network latency and 4G coverage are not intuitively obvious to many—and it is in the interest of each operator to advertise only the metrics in which its network performs best.

Most consumers are capable of weighing the benefits of increased coverage or speeds against greater monthly costs or reduced allotments, but what stops them is the fact that available information is often limited, contradictory or derived from suspect sources. By conducting a thorough survey and publishing the results, Ofcom is creating an environment in which each operator has every incentive to improve its network’s performance, since they know that its progress will be tracked and reported on by an independent actor. We believe that this program will help the U.K. increase its mobile broadband speed and coverage much faster and at much lower cost than the traditional top-down approaches. 

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

U.K. Prime Minister Unhappy With Mobile Coverage

U.K. Prime Minister David Cameron has recently instructed his cabinet ministers to find ways to improve mobile coverage in the country’s rural areas. This directive follows a meeting that was held between the chief executives of the U.K.’s mobile operators and the country’s former culture secretary, Maria Miller, in Q1 2014 to start planning for an increase in rural mobile coverage. The new culture secretary, Sajid Javid, will take on the project and meet with MNO executives for a progress update. The operators were asked to explore, in particular, the costs of adding coverage to the A and B roads in the villages of Shropshire, Dorset and Norfolk. As part of these discussions, the U.K. government has asked that the prospect of national roaming be considered—an idea that the operators are resisting. They argue that revenues lost through national roaming could prevent them from investing in their own networks and infrastructure and that a better way to help increase coverage would be to decrease the amount of bureaucracy and cost involved in erecting masts (towers) in rural areas.

Over the last few years, the U. K. government has launched several initiatives to help bring increased mobile and broadband coverage to areas of the country where there is minimal coverage or none at all—known as “notspots.” Among these initiatives are the mobile infrastructure project (MIP) and Broadband Delivery UK (BDUK). However, both of these programs have received criticism. For example, BDUK has been accused of mismanaging funds, operating in an inefficient manner and favoring BT over the country’s other operators. This new order from the Prime Minister is separate from the previous endeavors, and although the country’s four largest MNOS are all increasing their investments in 4G services, the operators fear that the reasons behind the regulation have a number of different bases—the areas in which the government has asked for increased coverage are core Conservative Party voting territories.

 

“Although the U.K. communications regulator Ofcom must act within the powers and duties set for it by Parliament, and its principal duty is to further the interests of citizens and consumers—which include increased coverage in underserved areas—regulators also need to try to work with operators. Any undue pressure—possibly politically driven in this case—on the regulator to implement changes under the guise of increasing service in the telecom industry may be met with resistance by the operators.”

Kamely Hayes,

Managing Editor,

The Tarifica Alert

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