Most Operators have already incorporated the revolutionary change in the communications segment as more and more consumers adopt the data culture, and use data as means of talking, messaging, sharing images and text, browsing, shopping, researching, navigating, making reservations, filling up applications, applying for jobs and ordering their meals. Data has surpassed the conventional voice and messaging, resulting in more and more subscribers purchasing their telco plans in data denominations, where data becomes the package core and voice minutes and SMS texts are bundled in as supplements. As the dependency on data increases, Operators are competiting for a chunk of the fast growing data market and have been reducing their tariffs to attract more subscribers and spur consumption of data. According to ABI Research's recent Mobile Internet Tariff Survey, the average mobile Internet price dropped by 17.7% between Q3-2013 and Q3-2012, based on research conducted in 20 countries with the most competitive rates. The report shares among others, the following key findings:
The total data revenue will reach $400 billion in 2013 with a YoY increase of 13.4%, and is forecast to grow to $527 billion, accounting for 47% of total service revenue in 2018.
The common strategy is to offer shared plans where national voice calls and text are free, and subscribers pay only for the data.
Multi-device Shared Plans represented just 6% of tariff plans, but its share jumped 20% QoQ.
“All You Can Eat Data” tariffs shrank 20% QoQ to 12%.
Multiple Tiered Data Tariffs is still the most common model mobile telcos offer to their customers (66%).
“The decrease of data price was mainly driven by fierce competition and increased network capacity 4G roll-outs,” comments Marina Lu, Research Associate at ABI Research. “We estimate 38% of the lowest priced data plans worldwide are 4G tariffs compared to 21% a year ago.”
“In many markets, the access and the mobile data quota has become the principle unit of value for the customer,” states Jake Saunders, VP and practice director. “For example, in August 2013, TELUS, based in Canada, launched out new two-year SharePlus data plans—1GB/2GB/3GB of data for US$ 28.6/42.8/47.6 that can be shared among the residents of a household.
