Teligen Tariff and Benchmarking

Strategy Analytics is a leading expert on telecommunications tariffs research and analysis, with over 20 years of experience supporting OECD and EU operators and regulators.

April 6, 2011 18:57 jsephton

The move by mobile providers to end all you can eat packages has gained dramatic momentum over the past few months Already, many of the 74 providers covered under Teligen's mobile broadband price tracking service, T-Wireless have introduced caps on previously unlimited use offerings.While this wasn't a particularly pleasant pill for many users to swallow, it wasn't entirely unexpected. The dramatic growth in data going over mobile networks, and the impact this was having on service quality meant that something had to give, or at least that if it didn't, users could expect to pay accordingly.

It has been a different story for fixed broadband. While providers in some countries will cap usage: the UK and Ireland for example, are two countries where many providers set usage allowances - it tends to be much less common practice in other countries.

The recent announcement by AT&T that it is introducing data caps and overage fees for residential broadband users just maybe hints that change is blowing in the broadband wind. From the beginning of May, customers using landline DSL will be subject to a usage limit of 150 GB per month, while users of its bundled internet/phone/TV service, U-Verse will get a 250 GB allowance. An overage cost of $10 per 50 GB over and above these limits has been set.

These upper limits are certainly not ungenerous for consumers, and are at the upper end of many of the caps in place across the various providers that Teligen tracks. And the majority of customers are unlikely to be impacted by these caps, according to AT&T, which claims that, for example, an average DSL customer only uses around 18 GB a month, and that only 2% of subscribers will be affected by the introduction of the upper limit. Even with consumers' desire for more and more bandwidth, there is still enough slack in these caps to allow for a significant increase over current usage for many - providing, of course, that these caps do not shrink over time. Furthermore, in a move that many mobile broadband providers would do well to take note of, the provider has committed to keep customers informed of their usage, notifying them when they hit 65%, 90% and 100% of their monthly allowance, as well as providing an online tool to allow customer to check usage whenever they want. The knock on effect of this is that users will have a much greater appreciation of how much data they actually use, which is no bad thing, as many simply do not have a handle on this at the moment.

As and when these caps come into force, users will doubtless complain - much as they did with mobile broadband caps. Some will worry about overage charges, while others will bemoan the fact that the caps are set so high that they are paying for bandwidth they simply won't use (which is kind of ironic, if they have come from a world where they were paying for unlimited usage). From a provider perspective, it is very much a case of damned if you do, damned if you don't. The 'trick' for them is to strike the right balance between fairness - if you use, you pay - and simplicity/transparency, by not creating too many layers around broadband pricing. We only need to look at mobile voice pricing to see that offering too many packages isn-t a particularly good idea, as discussed in a recent post.

We can probably expect to see providers follow AT&T's lead in fixed broadband pricing. But before the critics start on the inevitable tirade against them, it is worth remembering that genuine flat rate pricing across comms services is not as prevalent as we would all like to believe - a closer look at service terms and conditions will reveal that.


April 5, 2011 09:51 jhelgadottir

Below is a list of some of the tariff changes we have made to the TCO database this month.

In France Bouygues has simplified its Forfait Evasio 2. Included minutes are now valid at any time and plans include unlimited SMS and MMS plus unlimited mobile internet access at 3G+ speeds up to 500MB.

The Spanish operator, Yoigo has introduced a new plan called La Del Cuatro. There is a minimum usage of EUR 39 per month with a per minute charge of EUR 0.4 to any operator. Text messages cost EUR 0.10 each and the price plan also includes 500MB of high-speed mobile internet access per month.

Also in Spain, Orange has launched three new "Animal" plans for pre-paid users. Leon offers free calls to users on any network in return for a weekly top-up of EUR 7. Delfin is a price plan aimed at Smartphone users who receive unlimited Internet access when topping-up by EUR 3.50 per week. The first 50MB are delivered at high speed, after which speed reduction applies. Ardilla offers a call rate to any operator of EUR 0.9 per minute, with a call set-up charge of EUR 0.15, in return for a minimum top-up starting from EUR 5. 

Vivo in Brazil is offering a new range of iPhone plans, ranging from 60 to 1600 minutes. All tariffs offer a choice of add-ons ranging from extra SMS, off-peak calls, national roaming minutes, calls to preferential numbers or mobile Internet access. The top-of-the-range plan, Vivo iPhone Completo with 1600 minutes, offers all the benefits.

TMN in Portugal has introduced a new range of pre-paid price plans. Voice & SMS is available with a 24-hour rate, which gives free calls and text messages to TMN with a monthly top-up of EUR 20, or as an Evening and Weekend version which requires a EUR 10 monthly top-up. The Evening and Weekend plan offers free calls to TMN and fixed lines at off-peak hours.  These tariffs are also available with 500MB of mobile Internet access and free use of the Music Box service at a EUR 5 monthly surcharge.

Vodafone Malta has launched Freebees, a new prepaid price plan which gives 200 text messages and 50MB of data for every EUR 10 top-up. Calls cost EUR 0.25 and text messages are EUR 0.5 each.

Full details of the plans above are available in T-Cellular Online. Teligen monitors price developments of this sort in its continuous updates of T-Cellular Online http://sa-link.cc/3i

Jóhanna Helgadóttir - Senior Consultant - jhelgadottir@strategyanalytics.com


April 4, 2011 16:50 jhelgadottir

With the Irish economy in the state that it is in, it will come as a bit of relief for mobile subscribers that EMobile, Eircom?s mobile operator, is now offering a EMobile Unlimited Talk and Text tariff. The new plans offer, as the name strongly implies, unlimited calls to any fixed or mobile number in Ireland. The fair use policy on these plans is 10,000 texts and 45,000 minutes.

Three in Ireland is also offering its Flex Max plans with ?all you can eat data? with a fair use limit of 15GB per billing cycle. Both Meteor and O2 Ireland have also added allowances to current plans.

Full details of the plans above are available in T-Cellular Online. Teligen monitors price developments of this sort in its monthly updates of T-Cellular Online http://sa-link.cc/3i

Jóhanna Helgadóttir - Senior Consultant - jhelgadottir@strategyanalytics.com