Pricing Strategies for Mobile Broadband
Telecom, Media & Entertainment
the way we see it
The Price is Right
Pricing Strategies for Mobile Broadband Services Telecom & Media Insights
Innovative
pricing model
Contents
1 Abstract 3
2 Current Scenario and Need for New Pricing Strategies
4
3 Components of Mobile Broadband Pricing 3.1 Pricing Structures 3.2 Pricing Metrics 3.3 Payment Modes
7 8 9 9
4 Assessing the Pre-requisites for New Pricing Models 4.1 Operational Pre-requisites 4.2 Market Pre-requisites
11 12 12
5 Pricing Process to Maximize Value 5.1 Choosing the right pricing strategy 5.2 Customer segmentation for personalized pricing 5.3 Designing the pricing model 5.4 Launching new pricing plans 5.5 Conclusion
14 14 14 15 15 15
© 2012 Capgemini. All Rights Reserved. Rightshore ® is a trademark belonging to Capgemini. No part of this document may be modified, deleted or expanded by any process or means without prior written permission from Capgemini.
Telecom, Media & Entertainment
the way we see it
1 Abstract
Since 2006, most developed countries have seen rapid growth in the adoption of mobile broadband. In addition, the proliferation of new mobile devices such as smartphones and tablets, along with the consumption of high-bandwidth services such as content streaming, VoIP and mobile cloud services has led to a drastic increase in data traffic. However, data revenues have not kept pace with this growth in traffic and the widening gap is putting pressure on the sustainability of a mobile operator’s business model. We believe that the pricing of mobile broadband is a critical lever for operators to effectively monetize this growing data consumption. Telcos should introduce innovative pricing models that are tailored for specific consumer segments and designed based on consumer-context information such as the device used, location, time-of-use and service being consumed rather than only the volume of consumption. Designing these innovative pricing
the way we see it
The Price is Right
Pricing Strategies for Mobile Broadband Services Telecom & Media Insights
Innovative
pricing model
Contents
1 Abstract 3
2 Current Scenario and Need for New Pricing Strategies
4
3 Components of Mobile Broadband Pricing 3.1 Pricing Structures 3.2 Pricing Metrics 3.3 Payment Modes
7 8 9 9
4 Assessing the Pre-requisites for New Pricing Models 4.1 Operational Pre-requisites 4.2 Market Pre-requisites
11 12 12
5 Pricing Process to Maximize Value 5.1 Choosing the right pricing strategy 5.2 Customer segmentation for personalized pricing 5.3 Designing the pricing model 5.4 Launching new pricing plans 5.5 Conclusion
14 14 14 15 15 15
© 2012 Capgemini. All Rights Reserved. Rightshore ® is a trademark belonging to Capgemini. No part of this document may be modified, deleted or expanded by any process or means without prior written permission from Capgemini.
Telecom, Media & Entertainment
the way we see it
1 Abstract
Since 2006, most developed countries have seen rapid growth in the adoption of mobile broadband. In addition, the proliferation of new mobile devices such as smartphones and tablets, along with the consumption of high-bandwidth services such as content streaming, VoIP and mobile cloud services has led to a drastic increase in data traffic. However, data revenues have not kept pace with this growth in traffic and the widening gap is putting pressure on the sustainability of a mobile operator’s business model. We believe that the pricing of mobile broadband is a critical lever for operators to effectively monetize this growing data consumption. Telcos should introduce innovative pricing models that are tailored for specific consumer segments and designed based on consumer-context information such as the device used, location, time-of-use and service being consumed rather than only the volume of consumption. Designing these innovative pricing