|[February 24, 2014]
LTE Data Plan Share of the Market Grows by 150%, but Doesn't Always Boost Revenues, Says ABI Research
SINGAPORE --(Business Wire)--
According to ABI Research's (News - Alert) Mobile Internet Pricing Q1-2014 Market Data,
more than 55% of the cheapest country tariff plans are 4G compared to
just 22% a year ago. This has been driven by the aggressive deployment
of LTE (News - Alert) networks and a wider choice of consumer-centric LTE smartphones.
"However, we found that the average cost of mobile Internet tariff plans
across the cheapest 20 markets increased by 8.24% between Q1-2013 and
Q1-2014," comments Marina Lu, research associate at ABI Research. "While
55% of the 20 cheapest country plans were 4G, 4G tariff plans were only
marginally more expensive than 3G tariff plans. One year ago, the 4G
data pricing was around 20% higher than 3G for the equivalent data-plan.
Competition is forcing the mobile operators to pare down the prices of
even their 4G tariffs."
The current 4G service adopters are bigger spenders than their 3G and 2G
counterparts, and mobile operators are keen to lure across these
upgrading 4G subscribers, but carriers should not over-shoot in their
tariff plan reductions. "For example, in the French Market, a price war
was initiated by Free Mobile providing a low-cost 4G package as a
competitive response to Bouygues Telecom. Bouygues Telecom had announced
that 3G subscriers upgrading to 4G would continue to pay 3G prices,"
states Jake Saunders, VP and practice director. "Mobile carriers should
be getting an ARPU boost from 4G and should not be in a race to bargain
basement prices. LTE Multi-device Shared Plans are one solution that
does boost ARPU."
In many markets, in-country voice dialling and text messaging have
become heavily commoditized. Mobile operators, such as Vodafone (News - Alert),
T-Mobile, and Telefónica, now offer unlimited text and voice for their
mid and high tier data quota plans. This type of Multiple Tiered Data
Tariff now represents 46.7% of all tariff plans. Multi-device Shared
Plans are starting to gain traction in the market as they now represent
8.3% of tariff plans, growing 38% QoQ.
For more information, please visit ABI Research's "Mobile Data Price
Tracker." This study is part of the firm's Mobile
Deployments, CAPEX, and Traffic Research Service (https://www.abiresearch.com/research/service/mobile-deployments-capex-and-traffic/).
ABI Research provides in-depth analysis and quantitative forecasting of
trends in global connectivity and other emerging technologies. From
offices in North America, Europe and Asia, ABI Research's worldwide team
of experts advises thousands of decision makers through 70+ research and
advisory services. Est. 1990. For more information visit www.abiresearch.com,
or call +1.516.624.2500.
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