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4G pricing strategies: comparative analysis and case studies

  • September 2013
  • 32 pages
  • Analysys Mason
Report ID: 1862677

Summary

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Operators apply different strategies in pricing and marketing LTE tariffs, which evolve over time as competitors enter the market and LTE matures. This Viewpoint provides an in-depth analysis of smartphone and mobile broadband tariff pricing and marketing among operators in North America, Western Europe and developed Asia–Pacific.

About this report

This report on 4G pricing strategies provides:
• recommendations for operators
• an analysis and comparison of LTE mobile broadband and smartphone tariff pricing
• an examination of operators’ strategies for marketing LTE.

In selected case studies we analyse:
• how operators in Western Europe use value-added services (VAS) and over-the-top (OTT) content to differentiate their 4G smartphone offerings and move away from charging a price premium for their 4G mobile broadband service
• the roles of multi-device shared data tariffs and unlimited mobile broadband data allowances in LTE
• the pricing models applied in Greece where operators have recently launched LTE services and the impact of competition on LTE pricing in the UK
• the 4G mobile broadband price premium charged by operators in Singapore, and NTT Docomo’s (Japan) two-tier variable volume-based pricing.

Geographical coverage
• North America
• Western Europe
• Developed Asia–Pacific

Major KPIs
• Minimum total cost of ownership for smartphone tariffs in the third quarter of 2013
• Average monthly cost and average cost per gigabyte for entry-level LTE mobile broadband tariffs in the second quarter of 2013

Operators discussed in case studies
Major operators mentioned:
• AT&T
• Cosmote
• CSL (1O1O)
• EE
• Hutchison Whampoa (Three/3)
• M1
• NTT Docomo
• Optimus
• PCCW Mobile HK
• SingTel
• StarHub
• Telecomunicações Móveis Nacionais (TMN)
• TeliaSonera
• Verizon Wireless
• Vodafone

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