The ability to offer 4G LTE services to subscribers presented mobile network operators an entire new revenue opportunity as the high speed service enabled a host of rich data services to now be accessed on mobile devices. Experience on rich applications such as mobile gaming and mobile video become so enhanced that data consumption on these and other services via the 4G LTE networks started to grow rapidly. However, among mobile operators and the telecom sector at large, did the high takeup on 4G LTE service translate to corresponding increase in revenues? Tariff Consultancy Ltd (TCL), a London-based consultancy and research company via its Tariff Trends Snapshot periodic analysis provided some important insights on the 4G LTE service packages and pricing strategies, shedding light on how mobile operators have and might capitalize on this service to augment their mobile revenues.
According to the Tariff Trends Snapshot, most mobile operators did not offer 4G LTE services as a separate subscription. They merged access to the 4G LTE with subscriber's existing 3G mobile internet package without changes to the tariff. This resulted in any subscriber within the coverage area being able to activate the access to 4G LTE and start using the data. Instead, what mobile operators did and are doing is that they are differentiating their mobile data service by enhancing their bundles, that is adding more innovative content and services such as audio, premium video and mobile payments and features such as multi-screen and cloud-services.
The Tariff Trends Snapshot outlined interesting case studies from around the world and showed that mobile operators have engaged creative bundling and pricing methods to woo customers to increase their data consumption, which naturally led to higher consumption on the 4G LTE data. The highlights include:
Swisscom, Vodafone and Elisa are among the few operators who priced LG LTE services by speed
Telia Denmark's bundle offered shared data, additional SIMs, insurance & TV content,
Orange France included IDD calls & roaming to specific destinations as add-on to the standard bundle
Tele2 of Sweden throws in HBO Nordic TV subscription for users who purchase a 3 GB mobile data plan or above
Orange (France) offers the premium Origami Jet Prime tariff user the opportunity to change their mobile handset after a 12 month period and
SFR (France) is providing priority customer service for subscribers on selected plans
Mobile operators such as SingTel and Verizon are providing access to advanced 4G LTE service at no extra charge for their subscribers
