Press And Media

20th Edition of the Tariff Trends SnapShot service reveals the latest in handset financing

Published: Sun 27 October 2013

Tariff Trends SnapShot service from Tariff Consultancy Ltd keeps you abreast with key pricing trends, a must have service for telecoms executives. The 20th edition of the Tariff Trends SnapShot covers a survey on MNO Handset Financing Models.

 

Traditionally, the MNO has been able to fully subsidise the Pay Monthly contract based on a long term commitment of an 18 month or 24 month term. But this is now changing.

 

With increased competition in selected country markets the latest TCL Tariff Trends SnapShot provides analysis of the key innovations for handset financing by the MNO including:

 

  • The introduction of separate pricing for the usage plan and the handset – with a single bill but with separate items for the handset cost and the usage plan cost offering greater transparency.

 

  • The introduction of a series of down payment and rental schemes for the handset -which vary according to the handset cost.

 

  • The introduction of Bring Your Own Device (BYOD) schemes which allow the user to use his existing handset with a usage plan

 

  • The introduction of new flexible services which allow the user to upgrade their handset ahead of the expiration of the usage contract.

 

  • The introduction of the new plans for handset financing highlights the innovation that is taking place as the MNO seeks to reduce the cost of handset subsidy and widen margins. But the pace of change is different across a range of markets.

 

For example:

 

  • In the USA, T-Mobile, Verizon & AT&T have all launched variants on the flexible handset service which has allowed the user to change their handset within a year of the usage contract. TheUSAmarket is focused on the Post Pay segment, but MNOs are encouraging users to upgrade their handset with an additional monthly fee.

 

  • In Europe, selected MNOs have introduced separate pricing for the handset and for the usage plan.

 

  • Also in Europe, there are a range of pricing models being followed for handset financing, which include a mix of down payments and a monthly fee. Rates differ according to the type of Smartphone selected – ranging from Euro 3 up to Euro 20 per month.

 

 

 

About TCL Tariff Trends SnapShot service:

The TCL Tariff Trends SnapShot subscription service provides in-depth analysis of a telecoms pricing issue in an easy to read PowerPoint format delivered 20 times a year and available for GBP 795.00 or individual SnapShots can be purchased for GBP 95.00. 

A typical SnapShot consists of 25 slides. Further information on the TCL Tariff Trends SnapShot service is available on the TCL website at: www.telecomspricing.com 

 

Over the past 12 months the TCL SnapShot 2013 series has examined the following topics:

 

SnapShot issue

 Subject  

SnapShot no. 1

Developments in EU roaming since the Euro-cap

SnapShot no. 2

The impact of the launch of Free Mobile inFrance

SnapShot no. 3

Developments in the Spanish mobile market

SnapShot no. 4

Pricing for new LTE services launched to date

SnapShot no. 5

Pricing for the Youth segment

SnapShot no. 6

The latest trends in Mobile Data Pricing

SnapShot no. 7

The key Mobile Pricing Trends into 2013

SnapShot no. 8

MVNOs inEurope- no frills or added   value providers

SnapShot no. 9

MNOs and the challenge of OTT services

SnapShot no. 10

20 years of Messaging & future trends

SnapShot no. 11

MNO new entrants - the success of 4 new MNOs

SnapShot no. 12

MNO strategies in times of recession

SnapShot no. 13

Mobile Banking

SnapShot no. 14

Competition TV/Broadband in theUK(Sky and BT)

SnapShot no. 15

New moves in FMC

SnapShot no. 16

FTTH Pricing, Comparison 2008/2013

SnapShot no. 17

M2M Pricing

SnapShot no. 18

LTE Pricing Trends

SnapShot no. 19

The latest in Roaming Pricing

SnapShot no. 20

MNO   Handset Financing Models

 

Some of the pricing trends highlighted by the SnapShot subscription service over the past year include the following:

 

  • The emergence of new Integrated Packages which include Roaming services as a premium offer to protect a premium price point

 

  • The fall in average package prices in the French mobile market as a consequence of the launch of Free Mobile

 

  • The fall in mobile subscribers for both Vodafone and Movistar inSpainfollowing the change in handset subsidy policy

 

  • The change in LTE (4G) data allowances as MNOs adopt a tiered pricing regime as 4G moves towards becoming a mass market service

 

  • The rapid increase in Mobile Data allowances with Smartphone during 2012, which has now reached its limit

 

  • Evaluating the reasons for success and the impact on pricing when a new MNO enters the market, including the contrasting experiences of 2degrees (New Zealand), Yoigo (Spain), 8ta (South Africa) & Free Mobile (France).

 

  • Changes in pricing at a time of recession, examining the pricing strategies of MNOs in Spain, Ireland, Portugal & Greece since the impact of the recession in those countries.

 

The upcoming 20 issues, - 2014 Tariff Trends SnapShot Series - TCL intends to provide analysis of key pricing topics in five main sections including the following:

 

  • Regular hot topics – to include updates on the latest in Roaming pricing, 4G & LTE Pricing &MobileData pricing

 

  • The main mobile applications – to include surveys on the latest pricing for mobile voice, Messaging & Mobile Data

 

  • The key markets – to include surveys of pricing in emerging markets and selected MNO pricing strategies

 

  • Key Future Trends – to include surveys of the impact of OTT players, predictions for 2014, key mobile applications and the impact of new services.

 

  • News and events – to include commentary and analysis on significant breaking news or events  

 

The TCL Tariff Trends SnapShot service draws on the expertise of analysts at Tariff Consultancy Ltd and uses our unique database of telecoms pricing worldwide.

 

 

 

About Tariff Consultancy Ltd (TCL) – TCL is a London-based international telecoms tariff consultancy and research company which provides a range of subscription services and reports on telecoms pricing worldwide. TCL provides a daily Telecoms Pricing Today service, and Tariff Tracker services focused on Roaming, Mobile Broadband, Smartphone and LTE (4G) services worldwide. Further information on TCL is available on the TCL website at: www.telecomspricing.com



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