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Time-Based Mobile Data Access, Not Gigabyte Metering, Increases Customer Value and Expands Revenue Opportunity 

  • September 2015
  • -
  • Frost & Sullivan
  • -
  • 12 pages

Summary

Table of Contents

Time-Based Mobile Data Access, Not Gigabyte Metering, Increases Customer Value and Expands Revenue Opportunity

Introduction

Mobile customers in the mature markets of North America, Western Europe, Australia, Japan, and South Korea comprise approximately % of the world's total population of billion people.2 Communication service providers (CSPs) within these regions and countries have historically delivered mobile services using a postpaid billing model.3 However, a majority of over six billion people purchase mobile services today via a prepaid model.4 They live in Africa, Central Asia, China, Eastern Europe, India, Latin America, Middle East, Russia, and Southeast Asia. Both prepaid and postpaid billing plans are available in all countries of the world, but cultural factors, economic issues, and the business models historically invoked when voice and text communications services were first introduced to a geographical region show preference for one billing model over the other.

For example, % of mobile customers in Canada use postpaid billing plans, while % of mobile customers in the Philippines prefer prepaid plans for mobile voice and text services. Enter the world of mobile broadband. In North America (Canada and the US), mobile broadband is sold predominately through a postpaid billing strategy. In both countries, postpaid billing involves multi-device, multi-gigabyte pricing. It usually includes unlimited voice and text at no charge, and, until just recently, a subsidized mobile device with a 1- or 2-year contract commitment. Other plans, for customers that own their devices, sport lower per gigabyte rates. Device ownership, prevalent throughout the world, is fast-becoming the primary means for obtaining a mobile broadband data plan with Tier 1 CSPs doing business in North America.
At the close of 2014, there were an estimated billion mobile phone customers globally, but only billion mobile broadband users, of which billion were smartphone users. However, the billion data users are expected to grow to billion by 2020, as total mobile customers reach billion.New generation smartphones and tablets are expected to define the bulk of new device sales for the next several years. By 2019, approximately % of all mobile data traffic will originate from smartphones ( %), tablets ( %), and laptops ( %).

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