Skip to main content

Broadband Infrastructure New Investment Avoidance

Some forward-looking mobile phone service providers are attempting to attract new smartphone customers with attractive feature-rich and truly economical offerings.

In a cross-country comparison of mobile data pricing, ABI Research found The United Kingdom, France and Indonesia to have among the lowest prices for mobile broadband plans.

In Indonesia, a 4GB data package for the BlackBerry Internet Service (BIS) costs as low as $17 monthly. Indonesia and other developing countries are driving mobile Internet usage through the use of low-cost prepaid mobile broadband and Internet plans, driven by the popularity of BlackBerry and other smartphones.

In contrast, mobile network operators in developed markets are struggling to cope with the new demand that exponential data usage increases have placed on their networks. Walled-garden access to content was the prior method to ensure that smartphone data usage was minimized. But, not anymore.

Today, apparently mobile service providers are now utilizing new price-centric approaches to drive their broadband infrastructure investment avoidance strategies.

"AT&T's adoption of tiered data pricing is already seen in many European markets, and will signal the end of unlimited data bundles," says ABI Research analyst Bhavya Khanna. This latest approach should help to limit smartphone subscriber service usage -- and therefore reduce network resource demands.

Other countries including Italy and the Philippines have experimented with pricing according to time rather than data consumption, allowing users a fixed number of hours of connectivity every month.

Since data usage will continue to grow, regardless of the ongoing attempts to curtail it, ABI believes that operators will need to introduce innovative data pricing and manage their bandwidth in order to deliver an "enjoyable" user experience.

There currently seems to be little concern, by those using this approach, that customers may resist these pricing changes and churn to other service providers that actually still encourage smartphone usage.

Popular posts from this blog

Growing Venture Capital in APAC AI Market

Technology is a compelling catalyst for economic growth across the globe.  Artificial intelligence (AI) rides a seismic wave of transformation in the Asia-Pacific (APAC) region — a market bolstered by bold government initiatives, swelling pools of capital, and vibrant tech ambition. The latest IDC analysis sheds light on this dynamic market. Despite a contraction in deal volumes through 2024, total AI venture funding surged to an impressive $15.4 billion — a signal of the region’s resilience and the maturation of its digital-native businesses (DNBs). Asia-Pacific AI Market Development The APAC AI sector’s funding story is not just about headline numbers but also about how and where investments are shifting. Even as the number of deals slowed, the aggregate value of investments climbed, reflecting a preference among investors for fewer but larger, high-potential bets on mature or highly scalable AI enterprises. The information technology sector led the AI investment charge. Top area...