Mobile operators move away from offering just a discount for Youth plans, a key trend is the introduction of sub-brands and the inclusion of content
Published: Mon 5 July 2021
Telecomspricing latest research covering a survey of just under 40 mobile operators offering aimed at the youth reveals that mobile providers move away from just discounting the standard rates.
Some of the trends identified include:
- Mobile Youth Plans differ from the standard plans offered by an MNO by providing integrated plans of calls, SMS & mobile data - with the additional feature of content aimed at the youth segment – through bundles of unlimited social media, music or video streaming also being included.
- To date Mobile Youth Plans often provide a discounted plan with a large mobile data allowance, particularly when launched as a digital sub-brand, with the sub-brand offered as a low-cost SIM-Only plan with no contract term - combining a virtue of simplicity without user lock-in.
- Other MNOs in some European markets (notably in Austria, Belgium, Czechia and Switzerland) have taken a different route by offering discounts off their existing integrated mobile plans for their Youth segments - allowing the youth segment to benefit from lower monthly rental rates from their core MNO brand (with O2 Telefonica Germany offering a simple Euro €10 per month saving).
- A key trend is for MNOs to increasingly introduce digital sub-brands as a low-cost SIM-Only plan in mature mobile markets. These plans, although positioned to attract the youth segment, are now being extended to all age groups, not just the youth segment – with the combination of low-cost pricing, additional mobile data and streaming services being applied to all users. For example, in Ireland the introduction of Gomo mobile (Eir), Clear mobile (Vodafone) and 48 (3 Ireland) have all created new sub-brands with 100 GB (or more) mobile data allowances, unlimited calls & SMS with relatively low-price ranges (from Euro €10.99 per month up to Euro €15 per month). By contrast all three Irish MNOs continue to offer their core brand Post Pay price points of Euro €30 per month and upwards.
With the ability to launch digital sub-brands quickly and at relatively little cost
MNOs are experimenting with new sub-brands for the cost-conscious SIM-Only
segment which are separate from their core higher cost MNO brand.
By launching a new digital sub-brand, the MNO is attempting to appeal to a
different market segment without discounting their core brand or taking a hit on
their existing revenues. So, offering a youth-orientated sub-brand (without
imposing an age limit) appears to be a key future trend to be followed by the MNO
in Europe and other countries as MNOs seek to maintain revenues and subscriber
numbers and also retain their core brand.