Mobile Pricing Innovations

Table of Contents

Report objectives and scope

Introduction

1. The Pricing Algorithm of a Mobile Subscription

• 1.1. The Pricing for Voice Calls
  • 1.1.1. Towards an era of a single rate
  • 1.1.2. The differing pricing units for voice calls
• 1.2. The Pricing for Data Transmission
  • 1.2.1. A choice between charging by traffic volume or duration
  • 1.2.2. The differing pricing units for data transmission
• 1.3. The Methods of Subscription

2. Different forms of Pricing and Funding Innovation

• 2.1. Inclusive Bundles to a Fixed Payment
  • 2.1.1. Fixed service bundles and flexible money bundles
  • 2.1.2. Over-spending and under-spending of inclusive bundles
• 2.2. Advertisement Funded Calls
• 2.3. Unlimited offers
  • 2.3.1. Unlimited voice calls
  • 2.3.2. Unlimited text messaging (SMS)
  • 2.3.3. Introducing the unlimited Internet (data transmission)
  • 2.3.4. Unlimited Internet from a mobile handset
  • 2.3.5. Unlimited Internet on a mobile PC
• 2.4. Handset Subsidies and Pricing
  • 2.4.1. The iPhone business model: past and present
  • 2.4.2. Choosing between subsidies or a cheaper tariff

3. Methods of implementing innovative pricing

• 3.1. Main Patterns of Tariff Structuring Today
• 3.2. Multi-Branding Strategy
• 3.3. Keeping it Simple
• 3.4. Service Bundling: Double, Triple and Quadruple play
• 3.5. Fixed-Mobile Convergence
• 3.6. Home zone offers

4. Conclusion: the price of pricing

List of the Figures & Tables

• Figure 1: Mobile penetration
• Figure 2: Advantages of post-paid and prepaid subscriptions
• Figure 3: Postpaid and prepaid share in total customer base for the years 2001, 2004 and 2007
• Figure 4: Example of Virgin Mobile UK' s offer
• Figure 5: Example of NTT DoCoMo' s offer
• Figure 6: Comparing tariffs with differing amounts of bundles
• Figure 7: The Mix & Match offer from 3 UK
• Figure 8: The U-Fix Plans from T-Mobile UK
• Figure 9: The business model for advertisement funded calls
• Figure 10: The offer from Blyk
• Figure 11: European mobile termination rates as of July 2008
• Figure 12: The MyFaves offer from T-Mobile UK
• Figure 13: Comparison of usage limits of mobile broadband offers in the UK
• Figure 14: The X-Series offer from 3 UK
• Figure 15: The two-stage unlimited offer in Japan
• Figure 16: Internet on the mobile PC offers: positioning of modems and tariffs
• Figure 17: Acquisition and retention costs as % of total revenue of Vodafone in selected operations
• Figure 18: Target segmentation of the multi brand strategy of the E-Plus Group
• Figure 19: The tariff offer of UNO Mobile (Italy)
• Figure 20: The bundling offers from Virgin Media UK
• Figure 21: Positioning of the innovative pricing strategies

• Table 1: Benchmark of pricing methods for national mobile voice calls
• Table 2: Benchmark of pricing units for national mobile voice calls
• Table 3: Benchmark of pricing methods for data transmission
• Table 4: Benchmark of pricing units for data transmission (charged by traffic volume)
• Table 5: Benchmark of type of inclusive bundle structure
• Table 6: Benchmark of rollover offers
• Table 7: Details of rollover offers
• Table 8: Benchmark of unlimited voice calls available in the market
• Table 9: Benchmark of unlimited text messaging available in the market
• Table 10: Benchmark of unlimited Internet on the mobile handset
• Table 11: Benchmark of unlimited Internet on the mobile PC
• Table 12: The handset subsidy or cheaper tariff options in Japan
• Table 13: Benchmark of tariff structuring used by operators
• Table 14: Comparison of UNO Mobile' s tariff with the host network operator and largest MNO
• Table 15: Benchmark of operators offering bundled services
• Table 16: Other examples of bundled offers
• Table 17: Benchmark of operators offering home zone tariffs
• Table 18: The Genion (home zone) tariff from O2 Germany