Technology | Media | Telecommunications

Tuesday, May 28, 2013

Five Ways to Reach All Mobile Internet User Segments

The big greenfield global growth opportunities for internet access are in the emerging markets, where mobile broadband access will likely dominate new internet user adoption. Targeted pricing, adapted to the needs of user segments, is the proven way to maximize market development.

ABI Research’s latest mobile Internet pricing tracker reinforces the notion that there are essentially five mobile Internet pricing models in operation:
  • The Tiered Usage Pricing Plan
  • The All You Can Eat Data Plan
  • The Unlimited Plan with Speed Restriction
  • The Data Surfing Time Plan
  • And, the Multi-device Shared Plan

Although much talked about, Multi-device Shared Plans are relatively novel with approximately only 5 percent of mobile subscribers having the option to subscribe to Multi-device Shared Plans.

Of the addressable market, 15 percent can choose from All You Can Eat Data plans, but 66 percent only have recourse to the traditional Tiered Usage Pricing model.

"Mobile operators should be prepared to adopt novel pricing models in order to boost subscriber adoption and therefore incremental revenue. Multi-device Shared Plans have helped operators like Verizon in the U.S. to boost revenue per account," said Jake Saunders, VP for forecasting at ABI Research.

According to ABI's assessment, pricing plan diversification can help to optimize the fit of pricing plan versus disposable income groups.

Operators such as T-Mobile Germany, Telecom Italia, and Reliance of India have put in place a mix of different pricing plan models to serve the different needs of customers.

ABI Research is expecting more operators to introduce the Multi-device Plan as a way to stimulate the 4G LTE market.

In Europe, the Vodafone Group is aiming to bring in the plan by the end of 2013.