1. Market Research
  2. > Telecom
  3. > Mobile Services Market Trends

Tariff Trends SnapShot No. 40: Pricing for QoS and Bundling 

  • September 2014
  • Tariff Consultancy
Report ID: 2386346


Mobile operators are using bundling to differentiate their offers and support a premium price point for LTE 4G services, with speed becoming less important.

By contrast, LTE 4G services are being provided for all customers and are a limited differentiator. Service bundling is the main differentiator being used to attract and retain customers according research in the latest edition of the TCL Tariff Trends SnapShot subscription service.

Tariff Consultancy Ltd (TCL) in the latest version of its TCL Tariff Trends SnapShot subscription service (SnapShot 40 – Pricing for QoS and Bundling), analyses how MNOs are differentiating their premium services. With the first launch of LTE 4G services MNOs offered high-speed service access as only a premium service. But since launch, LTE 4G services have been introduced as a standard product across all mobile data services in most established 4G markets.

There have been some exceptions. TCL SnapShot 40 finds that only a few selected MNOs (including Swisscom (Switzerland), Vodafone (Germany) & Elisa (Finland)) are pricing their LTE 4G Smartphone packages of calls, SMS & Mobile Data according to access speed.

Elisa, in particular, is providing distinct pricing for 2G access, 3G access, 4G access & 4G Super access – with speeds ranging from up to 0.25 Mbps up to 150 Mbps – but with unlimited SMS, calls & Mobile Data services.

But the majority of MNOs in the established markets of Europe and North America are offering LTE 4G services with the same access speed across all customer segments. Instead of pricing according to access speed, most MNOs are increasingly differentiating their pricing with the use of additional bundles, including content, mobile insurance, international calls, international roaming and shared data, voice & SMS (including additional SIM cards).

The number of different bundling options is increasing due in part to MNOs seeking to protect a premium price point and also to provide further differentiation on top of the traditional bundle of calls, messaging & mobile data.

Mobile operators are seeking to add more bundled options to in order to maintain an existing price point – as in the Danish market, with Telia Denmark (including shared data, additional SIMs, insurance & TV content) - or to differentiate their bundles from a competitor at a lower price point – as in the French market, with Orange (including IDD calls & roaming to specific destinations).

Some MNOs (including Vodafone Qatar) are offering extra optional bundles (selected by the user) from a list of services providing the user selects a certain plan. Tele2 (Sweden), provides a free HBO Nordics TV subscription to users who purchase a 3 GB mobile data plan or above.

Orange (France) offers the premium Origami Jet Prime tariff user the opportunity to change their mobile handset after a 12 month period.

And SFR (France) is providing a priority service across its mobile internet platform to premium users of its “Carre” bundled service at busy times. But this service is disclosed in the operator’s terms & conditions and is not publicized.

In markets where many established MNOs now offer 4G services, independent surveys from analyst firms or from the telecoms regulator are highlighting the differences between MNO 4G coverage and service availability. But even when publicized the variation in 4G network coverage is not translating into pricing by QoS, with disruptive MNOs continuing to act as a brake on overall price levels.

And with the launch of enhanced LTE 4G download speeds, MNOs are continuing to make the service available to all users who have suitable devices - are not yet charging a price premium. For example, both SingTel (Singapore) and Verizon (USA) have launched higher speed versions of their 4G services at no extra charge to their users.

Finally, MNOs are now productizing customer renewals and upgrades into a standard package. For example, Telstra (Australia) offers a package of 500 MB of Mobile Data or AUD $500 of calls on selected plans to customers select the Telstra Upgrade plan.

Although the spread and number of MNO bundles and options available for the user is increasing, it makes the task of comparing rival offers more difficult. By offering more content to protect a price point rather than provide different types of QoS, the MNO has avoided the decision of reducing speeds for different customer types.

But instead the MNO is becoming locked into the need to continually add more content options to add value to customer bundle, frequently as a defensive measure to protect the same price point.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

Veronica helps you find the right report:


The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

Purchase Reports From Reputable Market Research Publishers

Western Europe telecoms market: trends and forecasts 2017–2022

  • $ 7999
  • Industry report
  • August 2017
  • by Analysys Mason

"Operators are making efforts to maintain premium pricing and focus on other means of differentiation, but the presence of challenger operators in many countries will continue to hinder revenue growth." ...

Connected Consumer Survey 2016: mobile churn and customer satisfaction in developed Asia–Pacific

  • $ 4999
  • Industry report
  • June 2017
  • by Analysys Mason

"High levels of competition in emerging Asia–Pacific seem to have become normalised, and customers simply expect their next plan to offer better value." This report focuses on aspects of Analysys Mason's ...

Consumer smartphone analytics: device capabilities and usage

  • $ 4999
  • Industry report
  • May 2017
  • by Analysys Mason

"Smartphone quality matters greatly to operators: higher-end smartphones generate an average of around 50% more data traffic." A deeper understanding of how users engage with their smartphones can help ...


Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.