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|
|2.1||Background to the Report||6|
|2.3||Currency and Conversions||6|
|2.4||Further Questions and Feedback||7|
|3||Segmenting Mobile Data Usage||8|
|3.2||Mobile Data Segmentation||8|
|4||Customer Discomfort and Current Solutions||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|
|5.2||Effectiveness of Approaches in Addressing Customer Discomfort||24|
|5.3||Approach by Life Stage/Segment||25|
|5.3.1||Free Agent Group||25|
|5.3.4||Empty Nest Group||26|
|6||Conclusions & Recommendations||28|
|Appendix - Feedback Questions||30|