Yoigo to Offer Smartwatch for Children with GPS

Spanish operator Yoigo is about to launch its first IoT device and tariff—a smartwatch for children called Pingonaut, according to a news report. The wearable device comes with GPS so that it can be programmed to notify parents if the child leaves a specified area. Children can also call up to five numbers with the smartwatch, which can be used throughout the EU. The Pingonaut costs €99.00 (US $116.63) for the device itself and €4.50 (US $5.30) a month for the service.
 
Much has been written about the advantages and disadvantages of putting smart devices in the hands of children, but this idea of putting them on the wrists of children is a truly innovative one that does not seem to come with much in the way of risks. Quite the contrary—it seems to us to be an inspired idea to target a wearable device to the specific purpose of providing young children with increased safety protection via position monitoring and easy, seamless communication with parents and other key people in their lives.
 
The Pingonaut device is relatively inexpensive, as is the monthly service fee. We expect it to be quite appealing to parents of young children, and even if it is not a huge revenue driver for Yoigo, it should be a very good way of boosting consumer confidence and brand loyalty. 


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 

FreedomPop Spain to Deactivate Its 3G Service

MVNO FreedomPop Spain has informed its customers that anyone who has not yet acquired a new SIM card, at a cost of €4.99 (US $5.96), to migrate to its new 4G/LTE service will be disconnected from its existing 3G service on 1 September. FreedomPop’s decision comes after it partnered with Spanish telecom group MásMóvil to offer its customers 4G services over the network of Yoigo, MásMóvil’s MNO brand. Users have the choice to port their numbers over to the new 4G platform via the new SIM, or to any other operator’s network.

FreedomPop, a U.S.-based MVNO, launched service in Spain a year ago, offering—for the first time in Spain—a free-of-charge plan that included 100 minutes of calls per month, 300 SMS, 200 MB of data and unlimited access to WhatsApp. The new basic plan is still free, but it no longer comes with data-free WhatsApp use or international roaming. The offerings of the company’s four other so-called premium plans start from 1.5 GB of data, 500 SMS and 200 minutes of calls for €4.99 (US $5.96) per month and range up to 10 GB of data and unlimited calls and SMS for €28.99 (US $34.63) per month.


This move on FreedomPop’s part represents a maturation process in Spain, a developed yet relatively budget-conscious European market that has seen an upsurge in MVNO entries. FreedomPop’s move to Spain in 2016 evidently came at an opportune time, and the MVNO itself has matured to the point where it was appropriate to make the transition to 4G/LTE.

The high-speed service is now the worldwide standard wherever mobile data is needed, and for even an aggressively budget-oriented MVNO to end 3G is a strong indication that the legacy service’s days are numbered in developed economies. And with the rise in popularity—and necessity—of data-hungry apps and services, customers have greater incentive than ever before to migrate to 4G.

So in doing a deal with Yoigo to get access to a 4G network, FreedomPop is offering higher quality while remaining true to its roots as a disruptive force in the marketplace by still offering free service. However, the difference now is that with the free basic plan, unlimited WhatsApp and international roaming are withdrawn, which leaves the customer who uses these services with the choice of either reducing data use or moving up to a paid plan. This is generally the end game with offerings of free services in any case, with operators hoping that customers who have become accustomed to using a certain level of services at low or no cost will become habituated to doing so and then after a while will be willing to pay for them. In addition, FreedomPop is making the reasonable assumption that its slate of non-free offerings with much larger amounts of data will be palatable to Spanish prepaid consumers at least in part because of the fact that they are being delivered over 4G/LTE. 

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 

Vodafone Ranks First in Spain for Network Quality

Spanish operator Vodafone has ranked first in the country for network quality, according to P3 Communications’ 2016 mobile benchmark tests. Vodafone received 865 points out of 1000, versus 836 for Movistar, 822 for Orange and 631 for Yoigo. Vodafone led in both the voice and data categories, and in 3G and 4G service alike. While all four major operators showed improvement over 2015’s results, Vodafone maintained the lead it had last year.

 
 

Despite ranking first in network quality, Vodafone ranks second in Spain in terms of subscriber base. We think the operator would do well to take these test results and use them aggressively to promote itself. Consumer satisfaction and quality of service are key factors in customer acquisition (and, of course, retention), and Vodafone should leverage the findings of this impartial, independent research entity to convince Spanish consumers to switch to its network.

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 

Orange Spain to Launch 400 Mbps LTE-A in 10 Cities This Year

Orange Spain has announced that it will be launching LTE-A technology, capable of delivering sustained speeds of 300 Mbps and peak speeds of 400 Mbps, in 10 Spanish cities by the end of 2015. When it showcased the technology at the Mobile World Conference in Barcelona earlier this month, Orange claimed it reached the highest speeds yet seen in Spain by aggregating the 2,600 MHz, 1,800 MHz and 800 MHz frequencies (the 800 MHz frequency is due to be released next month). The LTE-A service will be expanded from Madrid, Barcelona and Valencia to seven other large cities—Seville, Zaragoza, Málaga, Palma de Mallorca, Murcia, Las Palmas and Bilbao—by the end of the year. Orange currently has approximately 2.3 million 4G customers, and the company confirmed that it remains on course to bring 4G services to 85 percent of the Spanish population by the end of year, including all localities with over 10,000 inhabitants.

We are a little skeptical about the utility of LTE-A, at least for consumers. Speeds in the hundreds of megabytes per second are not necessary for even the most data-intensive activities such as downloading movies. According to network testing firm OpenSignal, Spain already has the fastest mobile network speeds in the world, averaging 18 Mbps. Of the country’s operators, Vodafone came out the fastest of the eligible networks tested, with average speeds of 25.2 Mbps. Now, we understand that Orange may want to catch up, but speeds of 300 to 400 Mbps would appear to be a case of, to say the least, massive retaliation. Spain is experiencing rather severe economic problems right now, and that, combined with the fact that it is already the world leader in network speed, indicates that an LTE-A rollout in the country is not a good use of resources on the part of a mobile operator.

The above item appeared in 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

Vodafone Spain Doubles Data Allowance in Yu Prepaid Plans

Vodafone Spain launched a promotion that gives its Super Yuser and Mega Yuser subscribers double the amount of data for 30 days. In order to take advantage of this promotion, users need to sign up via Vodafone’s Yu app before 31 March. The Super Yuser plan currently includes 1.2 GB of mobile data, 60 voice minutes and 60 SMS and costs €15.00 (US $16.28) per month. Mega Yuser, which is priced at €20.00 (US $21.71), has 1.6 GB of data, 100 minutes and unlimited SMS. Both plans also include unlimited on-net minutes and SMS.

As we have reported, more and more operators are not only expanding the value of their postpaid plans but are also including more value-added services in their prepaid offers. Some prepaid packages are now just as attractive as long-term postpaid subscriptions in terms of such services. Additionally, mobile subscribers prefer flexibility, especially when it comes to contract lengths, and since prepaid offers do not require long-term contact commitments, customers very often opt for them.

Spain has one of the largest mobile markets in Europe, served by four mobile network operators and a continually growing number of MVNOs. Based on the recent reports, Telefónica continues to lose market share, while Orange and Vodafone are increasing theirs. Yoigo maintains its position as Spain’s fourth-biggest operator. Moreover, recent reports indicate that the number of mobile subscribers in Spain has fallen since 2011 as customers terminate their subscriptions mainly due to the economic crisis. Therefore, all service providers are under pressure to create offerings that not only help them to increase or stabilize their position on the market.

By increasing the data allotment in its prepaid plans without additional cost, Vodafone has raised the overall value of both plans. Additionally, by making this offering available via the Vodafone Yu app, the operator has created a unique channel of communication with the subscribers.

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

       

Movistar, Vodafone Spain Lose 80,000 Customers in January

Spanish MNOs Movistar and Vodafone Spain shed 46,500 and 33,000 mobile customers, respectively, in January, mostly to Jazztel and low-cost MVNOs, according to the monthly survey reported on the website ADSL Zone. Orange Spain, which is in the process of acquiring Jazztel, shed a net total of 16,000 customers in the first month of the year, although its low-cost brand Simyo offset that figure with a net gain of 16,400 customers. Jazztel attracted 37,000 more mobile customers with the success of its fixed-mobile convergent packages. Ono, which was acquired by Vodafone in July, gained 15,000 mobile customers, but Spain’s fourth-largest mobile operator, Yoigo, continued to shed customers, losing some 9,000 ported numbers. Vodafone’s new low-cost MVNO brand, Lowi, also had a positive first month, having attracted around 10,000 customers since its launch on 18 December 2014.

Spain’s mobile market is notorious for its high churn rate, driven in large part by the country’s dire economic straits. While many markets in both the developed and developing worlds have too many MVNOs and are poised for a contraction, in Spain it appears that the MVNO sector is enjoying robust health and posing a growing challenge to the MNOs. In the case of MVNOs wholly owned by MNOs, such as Ono, Simyo and Lowi the former threaten to cannibalize the latter. As Orange prepares to acquire Jazztel, that phenomenon is likely to be repeated. In Spain, low cost and flexibility rule, so MVNOs are carrying the day. For MNOs, the best strategy seems to be not to beat them but to join them.

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

134,000 Spanish Customers Changed Operators in April

Spain's four leading operators—Movistar, Vodafone Spain, Orange Spain and Yoigo—lost 82,000, 34,000, 1,600 and 14,000 mobile customers, respectively, in April. Most of these went over to MVNOs such as Ono and Jazztel, according to an industry survey. Yoigo in particular was hard hit, losing nearly twice as many customers in April as it did in March.

   Customer dissatisfaction with MNOs continues to grow in Spain, a country whose mobile market has been particularly afflicted by churn in recent years. The MVNOs are posing an increasingly strong challenge to the traditional mobile operators, attracting customers with competitively priced packages that offer convergent fixed-line broadband and mobile services. 

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