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Telecom Retail Pricing

Market & Data Reports - 30/03/2010 Telecom Retail Pricing

Fixed Broadband and Mobile Services Benchmark

Analysing and comparing telecom prices is both a complex and sensitive subject, involving many and varied parameters. To help readers deepen their understanding of these parameters and the impact they have on pricing, IDATE has produced a detailed report on the leading fixed broadband access and mobile service providers’ pricing schemes in the major European markets and in the United States, drawing on an exclusive database (+ 500 pricing schemes for 42 vendors in France, Germany, Italy, Spain, the UK and the United States)


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• What discounts are offered according to contract length?

• What differences are there between “classic” and SIM-only offers, and between buying in a shop and buying online?

• What impact do possible set up calls and time credits have on the real price of mobile calls?

• How can bonuses and discounts be accounted for?

• Is the principle of flat rate billing a ubiquitous part of fixed broadband offers? Have triple-play bundles become the norm?

• What differences are there between ADSL, cable modem and very high-speed access prices?


> Database included
+ 500 pricing schemes for 42 vendors in France, Germany, Italy, Spain, the UK and the United States: 
    - fixed broadband services 
    - post-paid and prepaid mobile services


1. EXECUTIVE SUMMARY

2. METHODOLOGY

3. BENCHMARK OF PRICE RANGES

3.1. Mobile offers
       Distinct line strategies

3.1.1. Line strategies
• Broad product ranges for very flexible use
• Streamlined offers
• High volume offers
3.1.2. Mobile market pricing principles: towards a more streamlined model?
• Criteria governing voice price segmentation
• Data: volume and time-based billing
• Flat rates versus time-based billing

3.2. Internet access offers
Relative similarity across Europe
3.2.1. Broadband only vs. bundling strategies
• Very few broadband only offers in Europe
• USA versus Europe: different players, different price points
3.2.2. FTTx access offers: content comparable to ADSL offers
• Disparate rates: Europe, Asia, USA
• Will the prices charged encourage ADSL users to switch to fibre?

4. SALES AND BILLING MODE BENCHMARK


4.1. Mobile offers
4.1.1. Purchasing options
• Buying in a shop vs. buying online
• Packs vs. SIM card only
4.1.2. Minimum contract lengths
• Post-paid offers: minimum contract lengths
• Prepaid cards: lifespan
4.1.3. Fixed and minimum fees
• Set-up fees
• Subscriptions/monthly fees
• Topping up prepaid cards
4.1.4. Principles governing voice call pricing
• Time billing methods
• Distinction according to numbers called
• Peak/off-peak calling systems
4.1.5. Principles governing text message pricing
• Distinction according to numbers called
• Distinction according to size and type of message
 
    
• Distinction according to message number rank
• Peak/off-peak calling systems
4.1.6. Principles governing data services billing
• Time billing methods

4.2. Fixed broadband services
4.2.1. Contract lengths
• No commitment subscriptions to attract customers
• Minimum contract length to secure customer loyalty?
• Reflecting the national culture?
4.2.2. Device rental/purchase
• Wi-Fi router/Ethernet router
• Triple play box
• STB
4.2.3. Formulas
• Increasingly ubiquitous flat rates
4.2.4. Purchasing
• Buying in a shop vs. buying online
• Billing based on access speed
• Billing based on bundled services
4.2.5. Principles governing voice call pricing
• Time billing methods
• Peak/off-peak calling systems
• Distinction according to numbers called
4.2.6. Principles governing TV service pricing

5. PRICE BENCHMARK

5.1. Overview

5.2. Mobile pricing (Postpaid)
5.2.1. Basic pricing
5.2.2. 1 hour of voice calls + 30 SMS
5.2.3. 2.5 hours of voice calls + 100 SMS
5.2.4. 5 hours of voice calls + 250 SMS
5.2.5. 10 hours of voice calls + 500 SMS

5.3. Fixed broadband access rates
5.3.1. Broadband access only (Internet)
• Downstream rate below 2 Mbps
• Downstream rate up to 8 Mbps
• Downstream rate above 8 Mbps
5.3.2. Broadband double play (Internet access + unlimited calling)
• Downstream rate below 8 Mbps
• Downstream rate above 8 Mbps
5.3.3. Broadband triple play bundle
• Downstream rate below 8 Mbps
• Downstream rate above 8 Mbps

France 
 • Bouygues Telecom
 • Free (Iliad)
 • Numericable
 • Orange
 • SFR 
Germany
 •  Alice (HanseNet / Telecom Italia)
 •  Arcor (Vodafone)
 •  E-Plus (KPN)
 •  O2 (Telefσnica)
 •  T-Mobile (Deutsche Telekom)
 •  Vodafone
 • 1&1 (Freenet) 
Italy
 • Alice (Telecom Italia)
 • FastWeb (Swisscom)
 • TIM (Telecom Italia)
 • Tiscali
 • 3 (Hutchison Whampoa)
 • Vodafone
 • Wind (Orascom) 
Spain
 • Movistar
 • Ono
 • Orange
 • Telefσnica
 • Vodafone
 • Ya.Com (France Telecom)
 • Yoigo (TeliaSonera) 
United Kingdom
 • BT
 • O2 (Telefσnica)
 • Orange
 • Talk Talk (Carphone Warehouse)
 • Tiscali
 • T-Mobile (Deutsche Telekom)
 • Virgin Media
 • Vodafone 
USA
 • AT&T
 • Comcast
 • Sprint Nextel
 • Verizon
 • Verizon Wireless
 • T-Mobile USA (Deutsche Telekom)
 • Time Warner Cable

Mobiles 
 • Activation fee
 • Monthly rental (postpaid)/Package price (prepaid)
 • Contract length (pospaid)/Card validity (prepaid)
 • Minutes included
 • Text messages included
 • Price per minute/message:
  - Call
    . to voicemail
    . on-net
    . off-net
    . to fixed
  - Text message
  - Picture/Multimedia message
  - Internet 

Fixed broadband
 • Activation fee
 • Monthly rental:
  - Internet access
  - Telephony
  - TV
 • CPE price/rental:
  - Modem
  - TV STB
 • Contract length
 • Price per minute/programme:
  - Voice calls
  - TV channels
Detailed information on the examined operators' rate plans, taking into account the key pricing variables:

• contract type and length

• product details

• time calculation method

• included minute/text message or bonus

• extra minutes pricing

• add-on service prices


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