Addressing Customer Discomfort with Mobile Broadband Pricing
2011.05.23   |   29 pages   |   Tariffing Mobile Services for Profit

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Unfortunately for MNOs, customer dissatisfaction with mobile broadband pricing is the tip of an iceberg of concerns about bandwidth and performance. Customers resent paying additional fees for a mobile broadband service that is unusable during peak hours or unusable when they need it most (for example, to look up a train timetable, find nearby friends, or check live traffic conditions for their journey home).

Unreasonable expectations from users are compounded by the fact that revenues generated from mobile broadband subscriptions risk falling far short of what is required to fund investment in the network to improve service and avoid congestion - which is getting worse as mobile data usage grows exponentially once smartphone penetration hits 30% of the base.

The dilemma for operators is that the pricing they need to fund the network may cause users to limit usage and look for alternative solutions, which could result in permanently lost revenues for MNOs.

This report looks at the issues currently causing discomfort among mobile data users and how MNOs can price mobile broadband in the future so that customers remain comfortable and generating revenue.

Keywords: Customer Satisfaction with Mobile Broadband, Mobile Data Segmentation, Mobile Broadband Pricing,

Table of Contents
1 Overview 5
2 Introduction 6
2.1 Background to the Report 6
2.2 Report Content 6
2.3 Currency and Conversions 6
2.4 Further Questions and Feedback 7
3 Segmenting Mobile Data Usage 8
3.1 Introduction 8
3.2 Mobile Data Segmentation 8
4 Customer Discomfort and Current Solutions 12
4.1 Introduction 12
4.2 Discomfort Due to Unrealistic Comparisons 12
4.3 Current Pricing Models 15
4.4 Current Solutions - Reframing the Value of Mobile Broadband 16
4.4.1 Shifting the Centre of Gravity for Mobile Telecoms Pricing 16
4.4.2 From Unmetered to 'Unlimited' to Tiered 18
4.4.3 All-inclusive Mobile Data with Amazon's Kindle 19
4.5 Hitting a Moving Target 21
5 Has Discomfort Been Addressed? 23
5.1 Introduction 23
5.2 Effectiveness of Approaches in Addressing Customer Discomfort 24
5.3 Approach by Life Stage/Segment 25
5.3.1 Free Agent Group 25
5.3.2 Carefree Group 25
5.3.3 Caring Group 26
5.3.4 Empty Nest Group 26
5.3.5 Senior Group 26
6 Conclusions & Recommendations 28
6.1 Conclusions 28
6.2 Recommendations 28
  Appendix - Feedback Questions 30

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