The Repremiumization Myth: Content & Services - Not Connectivity - Attract Premiums
2015.08.24   |   8 pages   |   NextGen Strategy Reports

Author:
Robert Harrison


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MNOs must accept that network connectivity is a given and they will struggle to increase its perceived value so that customers will pay more for better quality. Consumers, based on experience, expect the network will provide all they need for a minimal price and if it does not work, they will complain rather than pay more for one that works better. Mobile operators have two realistic opportunities to raise margins - they can bundle their offering with high value content or services associated with high value items such as people, pets, homes and cars, or they can provide tailored services to the business market, where specified quality (through SLAs) can be a business essential of significant value.

Companies: Bain & Co, STL, TeliaSonera, EE, BT, AT&T, Cisco, Intel, CSG International, Swisscom

Countries: Europe, Belgium, Germany, France, Netherlands, Poland, Spain, UK

Keywords: Video, positioning as core of digital lifestyle, Repremiumization, m2m, IoT, differentiation, pricing by network performance,

Table of Contents
 
  The repremiumization myth: content & services - not connectivity - attract premiums 1
  Inferences and Implications for Mobile Operators 1
  Inference Dashboard 1
1 Supporting Research & Analysis 2
1.1 Context 2
1.2 Analysis 2
1.3 Research 5
1.3.1 The Bain View 5
1.3.2 The STL View 5
1.3.3 Pricing by a Parameter of Perceived Value 7

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