Segmenting Mobile Broadband Propositions
2013.01.08   |   36 pages   |   Fixed-Mobile Convergence

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Mobile operators are facing the ongoing challenge of meeting demand for ever more bandwidth for data transmission without corresponding increases in revenues - as the price per megabyte of data transported erodes through competition. To meet the demand, new networks such as LTE are required - both to provide a more cost-effective platform for data and the absolute speeds and capacities needed to avoid growing congestion. The challenge is to fund the investment required to roll out new networks while prices for what they will transport continue to fall.

MNOs have already moved away from the flat-rate data plans initially required to stimulate usage and most have adopted a tiered approach, based on available resources. Separating users by how much volume they consume is a practical first step in moving the pricing of mobile data propositions to a more tenable position - but whether it will provide sufficient new revenues to fund the investment required to roll out the new network technologies required to meet demand and avoid congestion is not certain.

In the future, MNOs may need to adopt a more customer-centric approach to designing mobile data propositions in order to achieve differentiation in the market and attract and retain customers. This report examines current operator strategies for segmenting their propositions and assesses the potential for using an approach that maps products and clusters of users according to their decision criteria, rather than on the basis of available resources.

Keywords: throttling, Mobile Broadband Propositions, Fixed Mobile Convergence, Mobile Broadband Speeds,

Table of Contents
Overview 3
Introduction 5
Mobile Broadband Segmentation Approaches 8
An Alternative Segmentation 25
Conclusions & Recommendations 33
Appendix 36

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