Deutsche Telekom Offers Annual Data Bundle on New Business Plans

Deutsche Telekom has launched new business mobile plans that include the option of annual, rather than monthly, data allowances. The new range has a choice of four plans, of which the prices vary from €29.37 (US $34.66) per month for 2 GB of data on the S plan to up to €69.71 (US $82.26) per month (prorated) for 144 GB per year on the XL plan. The annual data option is available on the M, L and XL plans.
 
All the plans come with features such as One Number, so the business’ fixed number is displayed to a mobile call recipient; free replacement of lost or damaged SIMs; secure login applications and a new smartphone within 24 hours. Smartphones can be added with the new plans, starting from €46.17 (US $54.48).
 
This offering from Deutsche Telekom seems particularly well-tailored to the needs of small and medium-sized businesses. As we have reported in the past, SMBs are eagerly embracing bring-your-own-device (BYOD) and tend to be budget-oriented when it comes to mobile services. They are also more likely than large, diversified businesses to have seasonal ups and downs in terms of revenue.
 
According to DT, the annual data allowance was planned specifically with seasonal business patterns in mind; customers may use more or less data during any given a month due to changes in business activity and would in many cases prefer to not to pay for data that goes unused because the allowance surpasses the need. The yearly allowance concept directly and appropriately addresses this issue, and therefore looks like a winner in terms of plan design.
 
Furthermore, we might point out that yearly data is very much in line with the current trend toward greater and greater flexibility in plan feature. The demand for flexibility has usually been discussed as if it were exclusively a consumer phenomenon, but it seems likely that in assuming that it also pertains to SMBs, DT has not gone wrong.
 
Finally, the new business suite’s other features, such as displaying the company’s fixed number and quick replacement of lost devices, are also thoughtfully designed and appropriately targeted to SMBs that rely on BYOD for their employees’ connectivity.

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 India Offers 1 GB of Bonus Data on Pre-Booked 4G SIMs

Vodafone India has launched a promotion for its customers in the state of Haryana, where the operator plans to commercially launch its 4G services soon. As part of the campaign, customers who pre-book their Vodafone 4G SIM until 23 August will receive a 1GB 4G data bonus valid for 10 days from activation. To access the offer, Vodafone customers in Haryana need a 4G-enabled handset and an active Vodafone 3G package. In addition, Vodafone 4G customers from Haryana will be able to access 4G connectivity while roaming across all existing Vodafone 4G circles in India—Mumbai, Delhi and environs, Kerala, Karnataka and Kolkata. Vodafone has already made 4G-ready SIMs available at 250 branded stores and at over 5,000 multi-brand outlets across Haryana.   The capital investment required to launch 4G-LTE services is quite substantial, and operators will of course want to know that there will be a customer base in place to provide the return on its investment. India is a rapidly developing mobile marketplace making the transition from 2G/3G to 4G. To incentivize its existing customers to purchase a 4G-enabled handset in order to be ready for the launch of the high-speed services, and to be willing to accept the higher charges for that service, Vodafone is offering some free data. A one-time 1 GB giveaway is not particularly extravagant by developed-market standards, but for users who have not previously had the ability to consumer large amounts of data via high-speed networks, it will likely be very appealing. Most important, though, from a strategic point of view is the fact that Vodafone India is requiring customers to pre-book their 4G service in order to get the promotional offer. With enough pre-booked subscriptions, the operator will have the confidence of knowing that its new service will have enough subscribers to bring in enough revenue to make it viable. We consider this to be a very savvy approach.  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 Invests in Smartphone Purchase Credit Startup

Orange Digital Ventures—launched in 2015 with a €20 million (US $22.5 million) annual budget, said it has invested in PayJoy, an online platform allowing people with poor credit profiles to buy smartphones in installments. California-based PayJoy, which also attracted funding from several private equity players, says that its business model addresses up to 1 billion potential smartphone purchasers. The system works by installing PayJoy’s management software on the device, making the smartphone itself the guarantee for the lender. Orange, which did not disclose financial details, said its investment particularly targets its 110 million clients in Africa and the Middle East.     Getting smartphones into as many hands as possible is clearly a desired goal for mobile operators worldwide. Without deep penetration of these devices, full utilization of networks is not possible, and MNOs’ investments in those networks will not achieve maximum return. For many potential customers, especially in the developing world, financial barriers to purchasing smartphones are high. Installment-plan device purchasing has already become widespread even in wealthy nations; it should be even more appealing to budget-minded customers in comparative poor ones. Therefore, it is good strategy, in our view, for a multinational operator such as Orange to engage in a partnership to make smartphones more accessible to such customers. PayJoy’s technology, which claims to use the device itself as a way to offset the risks involved in installment purchases by low- or no-credit consumers, claims to use the device itself as collateral for what amounts to a loan. The company cites research by McKinsey that estimates the potential global market for its alternative credit model at US $2.3 billion. Whether or not this particular model turns out to be a winner, we firmly believe that creative plans for smartphone proliferation among populations that currently find it hard to afford them is good for operators’ business, and that therefore they should seek them out.

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