Abstract
Pricing decisions have never been more important for mobile operators. Pricing
has an immediate role to play in maintaining and growing mobile voice usage
and ARPU, and kick-starting much-needed new revenue from mobile data services.
It can also have a major impact on the relationship between operators and
their customers, and the long term effects of this on churn and price
competition. However, mobile service pricing is a complex subject, complicated
by the sheer diversity of services, and mobile operators face many pitfalls.
Operators must attempt to extract the full revenue potential of each service
while taking account of a wide variety of factors, including affordability for
end-users, the unique capacity and cost limitations of cellular technology,
and the ability to differentiate from competitors.
Pricing Mobile Data Services for Success defines seven golden rules for mobile
pricing, as a framework for maximising overall ARPU and profitability. It
shows that the emerging approach of bundled pricing adheres well to these
rules and discusses how bundled pricing can be applied to deliver major
benefits to mobile operators in both the short and long term. The report also
evaluates flat-rate pricing, in effect an extreme form of bundled pricing,
where unlimited usage of services is provided for a defined price.
Pricing Mobile Data Services for Success answers your key questions:
- How can pricing maximise ARPU and service profitability? What are the
golden rules that need to be followed, and how can operators avoid the
pitfalls?
- Is bundled pricing the optimum solution? How should it be implemented most
effectively?
- How can bundled pricing be used to drive voice usage and the take-up of
new data services?
- What are the strategic benefits of bundled pricing? How can it be used to
strengthen customer relationships, to increase ARPU, reduce churn and minimise
price competition over time?
- Is flat-rate pricing a step too far, or does it have a valuable, albeit
limited, role?
- What actions need to be taken by mobile operators, and service management
and billing system vendors to seize the opportunities in mobile services
pricing?
Who should read this report:
- Mobile operators: for analysis and case studies of the optimum pricing
strategies for the wide variety of existing and emerging mobile services, to
gain short- and long-term advantage in the marketplace.
- Service management and billing system vendors: to understand the
requirements that mobile operators will have in the short and long term for
service management and billing systems to implement the best pricing
strategies.
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