Orange Poland Launches Flexible Plan Suite

Mobile operator Orange Poland has introduced a new service called Orange Flex, which allows customers to flexibly adjust their monthly plans via a mobile app that can be downloaded from the Apple App Store or from Google Play. Users must register with their ID and a selfie, and both photos are compared with data from the operator’s biometric verification system. The user inputs the information for their debit or credit card, which will automatically be charged for the services.

With Orange Flex, a free SIM card will be provided by a courier or can be obtained at any Orange shop in Poland. Users may also replace their regular SIM card with its virtual equivalent, an eSIM and activate the plan remotely.

Orange Flex offers 10 tariffs, costing from PLN 31.00 (US $7.20) to PLN 80.00 (US $18.59) a month. Payments must be made in advance. Each of the plans includes unlimited calls, SMS and MMS, while data allowances range from 6 GB to 100 GB a month, part of which can be used for roaming in the EU. In addition, customers can choose one of three zero-rated packages: Social Pass, Music Pass or Video Pass.

On the occasion of the Orange Warsaw Festival, Open’er Festival powered by Orange and Krakow Live Festival, the Music Pass on Orange Flex is completely free until 17 August and then costs PLN 5.00 (US $1.16) a month. It can be activated at any time between 10 May and 17 August. Social Pass is free, and the Video Pass can be activated for one day (PLN 5.00), seven days (PLN 10.00 or US $2.32) or 30 days (PLN 20.00 or US $4.65). In addition, there are three extra-data add-on packages with 1 GB, 5 GB or 10 GB data, priced at PLN 3.00 (US $0.70), PLN 10.00 and PLN 15.00 (US $3.48), respectively.

Users can change their plan to a higher or lower one at no additional charge, on a monthly basis, and they can also order an additional SIM card at any time. For the first six months, the additional SIM service is free; after that, it costs PLN 9.00 (US $2.09) per month. Anyone can join Orange Flex. Orange mobile customers (except those with Orange Love) can end their contract six months early to transfer their services to Orange Flex.

  

We have written fairly frequently about the trend toward greater plan flexibility across multiple mobile markets. Consumers at various economic levels have clearly shown that they desire this, both with regard to pricing and plan features and with regard to freedom from contractual obligations. Plenty of operators launch “flexible” offers, but not all live up to the name. This one, from Orange Poland, really does.

It does not deal in so-called flex units, a common strategy by which voice minutes, texts and megabytes of data can be interconverted—but that is simply because all levels of Orange Flex service come with unlimited calls and texts. The data allotments vary, with 10 gradations rather than just two or three, but that is only one aspect of the flexibility. Also flexible is the choice of zero-rated package, for music, video or social media use, as is the duration of the packages. The availability of data add-on packages also contributes to the flexibility of Orange Flex, as does the availability of an extra SIM at low cost.

Orange Flex is a sort of hybrid offering in that it combines elements of a prepaid offering and a monthly plan. While that is arguably not quite as flexible as a compete pay-as-you-go arrangement, its monthly structure allows for the gradation of data offerings, which can be chosen and changed as the user’s needs change. The zero-rated video offering is particularly flexible in that it can be purchased for as short a time period as one day or as long as one month.

We feel it is likely that this offering from Orange Poland will find favor among the considerable number of users who truly desire flexibility in their mobile service.

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Polish Minister: Roam-Like-at-Home Will Hurt Telecom Market

According to Anna Strezynska, Poland’s Minister of Digitization, implementing the roam-like-at-home regulation, in keeping with European Commission regulations taking effect this month, will bring difficulties in Poland. The large proportion of plans that include discount prices and generous service allotments will cause mobile operators to lose money, Strezynska said in a media interview.
 
Referring to Orange Poland, which has already implemented the roam-like-at-home principle consistently, she suggested that the operator, being part of a large international telecommunications group, has the option of cross-subsidizing roaming services. However, its competitors, P4 and Polkomtel, as well as at least two networks operating only on the national market, have no such capability
 
Strezynska also said that a relatively small group of users in Poland benefits from roaming services, while the majority will end up subsidizing these services in order to meet the European Commission’s requirements. This cannot be allowed, said Strezynska and continued: “For many years, we have been fighting for low prices in Poland,” she said, adding that she will be having talks with the European Commission to seek a solution to the roaming issue.
 
The long-heralded end to roaming surcharges in the EU, which is set to begin this month, clearly will be experienced differently in different member states. Widely touted by EC officials as an unmitigated boon to consumers, roam-like-at-home will definitely not be a gift to operators, and the impacts will obviously differ depending on the nature of the national market in question.
 
A report from Ernst & Young Poland has presented the findings on the effects that implementing the roam-like-at-home principle would have in the country. The firm estimates that the disparity between roaming and domestic rates will cost the average Polish operator around PLN 180 million (US $21.5 million) in revenues through limited consumption and around PLN 55 million (US $14.8 million) in EBITDA because of higher costs. According to EC data, the differences in wholesale rates, combined with the roaming use profile of the typical Polish subscriber, mean that Polish mobile networks will record losses from roam-like-at-home.
 
Despite all this, the time for arguing and negotiating with the EC is likely over. Polish operators—as well as operators in other markets, no doubt—will simply need to come up with creative pricing strategies to offset these losses. 

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. 

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Nc+, Orange Poland Offer Free Internet for One Year

Cable TV provider nc+ and mobile operator Orange Poland are running a joint promotion that provides clients with one year’s free mobile internet access. The offer is valid for both new and current customers of nc+. Subscribers can choose one of the TV packages from nc+ and get 12 months of mobile internet service free of charge. Over the next 12 months, network access is charged for at a rate of PLN 49.90 (US $14.69) a month. With a 24-month contract, that amounts to a monthly cost of PLN 24.95 (US $7.34).

The joint offer provides the opportunity to choose from sports and entertainment TV packages starting at PLN 79.90 (US $23.52) (including the channels Canal+, Canal+ Film, Canal+ Film2, Canal+ Sport, Canal+ Family and Canal+ Family2), as well as the basic package Comfort+ , starting at PLN 39.90 (US $11.74). The data inclusion from Orange’s mobile internet service is 20 GB a month, over 3G and LTE. The offer for new clients has been available in nc+ sales points since 6 November, and from 17 November it will also be available via the provider’s website and call center.

In the competitive Polish marketplace, it is estimated that over 40 percent of internet users who buy TV services expect a combined offer. So it makes complete sense that Orange would seek a partner to help it join cable TV services to its existing portfolio of mobile services. We have seen in many developed markets that quad-play packages including mobile data are now considered the norm rather than exceptional. So there is nothing unusual in this deal from that point of view. What is quite noteworthy is the extreme generosity of the free-data offer—20 GB is more most customers would ever use in a month. Furthermore, even after the promotional period ends, the contract prices for network service are quite low, particularly on a 24-month basis but also on the 12-month. It seems that Orange, due to its dominant position on the Polish mobile market and the size and scope of its network, can afford to be this generous, especially in light of the amount of revenue it is expected to generate in new business. For its part, nc+ will benefit from this opportunity to enter the mobile sector.

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/contactus.aspx

Orange Poland Launches Orange Finance

On 2 October, Orange Poland, in partnership with Polish bank mBank, launched a mobile banking service called Orange Finance. Orange and mBank customers will be able to conduct banking business via their Android and iOS mobile devices (Windows Phone is not currently available) and also get access to credit at competitive rates, according to the operator.

In the highly competitive Polish mobile marketplace, mobile banking is a very legitimate way for an operator to gain some advantage and boost its efforts at customer retention and acquisition. Mobile banking, which is thriving in developing countries, has been gaining ground in Europe, particularly Eastern Europe. In March 2014 in Romania, Vodafone introduced M-Pesa, the world’s largest mobile money network, which started in Africa. In Poland currently, MNO Polkomtel offers banking services in conjunction with Plus bank, while T-Mobile Poland does the same with Alior Bank.

Of course, in addition to market advantages, Orange Finance stands to bring in significant revenue for both Orange and mBank. Orange Poland has a customer base of around 15 million, and mBank has 8 million customers. Orange Poland CEO Bruno Duthoit stated that after three years the service is expected to generate “the equivalent of several percent of our current total revenue.”

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