Skip to main content

Mobile Internet Advances Where the Price is Attractive

What can the rest of the developed world learn from mobile network service providers in the emerging markets? Do the savvy marketers in these emerging nations have a better understanding of effective market development strategy?

​India currently offers the lowest priced mobile services plan that includes internet access, according to the latest global market study by ABI Research.

"India’s lowest priced mobile data plans decreased 29.4 percent year-on-year (YoY) compared to Q4-2011, when it ranked fourth," said Marina Lu, research associate at ABI Research.

According to the findings from ABI's survey, in stark contrast to India, UAE currently has the most expensive mobile internet pricing plan at $67.8 for 5GB.

There is considerable fluidity in mobile data tariffs -- just one year ago, Singapore had the least expensive mobile internet tariffs, but it has since reduced its data caps while keeping the tariff pricing the same.

Comparing mobile internet pricing between Q2-2012 and Q4-2012, 73 percent of countries have reduced the effective cost of their 4G tariffs to a significant degree. The effective cost -- i.e. the "Dollar per Gigabyte basis" -- has dropped by 30 percent.

However, in the U.S. market, where there's surprisingly little price competition, most of the carriers took the route of keeping fees the same but have introduced larger data quotas.

In Australia, Sweden, Japan, and Saudi Arabia the operators lowered the monthly fee but have kept data quotas unchanged.

In Norway, Telenor has introduced 4G tariffs that are cheaper than 3G services.

4G is more spectrally efficient and can handle a lot of data, but ABI believes that it's also important for mobile network service providers take advantage of 4G to boost service revenues.

One way this can be done is through multi-device plans. As an example, Verizon's "Share Everything" plans have helped to contribute to a net increase of 2.2 million subscribers in Q4-2012 and boost their in part service revenues by 8.52 percent to $16,393 million.

But, I'm left wondering how many new mobile internet subscribers could be gained if Verizon's basic service pricing were more affordable?

Case in point: I'm a Verizon Wireless customer and I've consistently avoided their smartphone offerings, because the price threshold to convert doesn't seem to be worth the incremental cost to me. Ask yourself, what can be learned from this example scenario?

Popular posts from this blog

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

The Fastest-Growing Mobile Opportunity in 2022

The number of mobile communication subscriptions worldwide is currently estimated at 8 billion, with 6 billion on smartphone connections, from a user base of 5.9 billion unique subscribers among a global population of 7.9 billion. Fifth-generation (5G) mobile service subscriptions using a compatible device significantly grew during the COVID-19 pandemic, but 4G connections remain the dominant force within the global telecom service provider sector. While the use of mobile phones is common throughout developing nations, 4G services are still an emerging technology in many parts of the world. Overall, 5G subscriptions will likely grow from 580 million at the end of 2021 to 3.5 billion by the end of 2026. 5G Mobile Market Development According to the latest worldwide market study by Juniper Research, revenue generated from 5G mobile services will reach $600 billion by 2026 -- representing 77 percent of global network operator-billed revenue. The adoption of 5G services across consumer and

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d