Mobile tariffs are in a continual state of change, as providers reshape and repackage mobile offers, says Strategy Analytics

By Zenobia Hegde

Mobile tariffs are in a continual state of change, as providers reshape and repackage mobile offers. Coupled with the sheer breadth and depth of information that these offers create, service providers, regulators and consumers struggle to compare, rank or benchmark different propositions and average price points.

The Teligen division of Strategy Analytics has been tracking this pricing minefield globally for over twenty years, within its OECD Mobile Voice Price Benchmarking Service. The quarterly-updated Excel-based system incorporates the internationally acknowledged OECD methodology, and is based on the top two providers across 36 countries.

In an extension to this already comprehensive coverage, it has now launched a premium version of the service, which includes additional providers in five European markets; France, Germany, Italy, Spain and the UK, as well as in the US, to cover providers with at least 80% combined market share (typically 4-6 providers per country).

Analysis of the extended coverage within these six markets shows that for a user making 100 calls a month (just over 180 minutes), sending 140 text messages, and using 2GB data can save, on average, over USD PPP 200 a year, depending on choice of provider. The graph below shows how costs in these extended markets compare for this basket.

Source: OECD Mobile Voice Premium Service, November 2017 (custom country & provider selection)

“Italian provider Tre is an example of where major cost savings can be found. It is currently offering an incredibly competitive tariff – ALL-IN Start, which gives users 500 minutes, 500 texts and 5GB of data a month for €5, with a six month promotional offer of 4G LTE speed at no extra cost (thereafter €1 per month). Without the 4G option, this works out at just under USD PPP 80 per year.

This is half the cost of the cheapest offer from WIND, which merged with Tre in 2016, and over 75% cheaper than its closest priced competitor, TIM. Of course, it is important to look at the specifics of each offer and consider it in the context of the specific usage profile, but in any event, this represents a significant cost saving” stated Josie Sephton, director of Strategy Analytics’ Price Benchmarking division, Teligen.

According to Angela Toal, senior tariff analyst with Teligen “while the Italian example is especially dramatic, large differences in costs can be found in other countries. The new Premium service gives access to much more in-depth coverage of providers in selected markets, allowing for a much greater insight into what the key competitors are really up to”

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Posted on: January 17, 2018

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