The report entitled Pricing Promotions by Mobile Operators Worldwide - 2011 is a survey of the main trends taking place for mobile pricing promotions around the globe.
The survey includes just under 300 promotions offered by some 150 mobile operators across 80 countries.
The aim of this report is to provide as comprehensive overview of the main trends in the promotion of mobile services in both mature and so-called developing markets. In the report the emphasis is on price-based mobile promotions, but TCL also examines the role of non-priced based functions such as the provision of additional features, applications or services by the mobile operator.
This report considers both PrePay and Pay Monthly service promotions and the different types of offer that are evolving for calls, SMS, mobile data (for smartphone use) and mobile broadband using a USB flash modem.
Furthermore, a brief overview features main trends in promotion based on the introduction of new services. In particular the focus is on promotions geared around the introduction of new types of smartphone handset and new value added services such as Mobile Broadband services.
Te report includes a commentary on the main trends that are taking place in the market for mobile promotions and identifies the most common and the most innovative forms of promotion that are now appearing.
Key highlights of the report
Part One – Introduction to mobile pricing promotions
1.2 Definitions of pricing promotions in a mobile phone context
1.3 Promotion types & the value of mobile pricing promotions
1.4 Restrictions & regulation of mobile pricing promotions
1.5 Examples of generic mobile pricing promotions
1.6 Key Point Summary
Part Two – Generic mobile promotional pricing plan details
2.2 Promotional lengths of mobile pricing promotions
2.3 Percentage discounts of mobile pricing promotions
2.4. Event specific mobile pricing promotions
2.5. New mobile pricing product launch promotions
2.6. New handset pricing launch promotions
2.7. Trends in mobile pricing promotions
2.8 Key Point Summary
Part Three – Types of promotional features offered by mobile operators
3.2 Additional mobile feature pricing promotions
3.3. Particular customer group mobile pricing promotions
3.4. PrePay mobile pricing promotions
3.5. Pay Monthly mobile pricing promotions
3.6. Key Point Summary
Part Four – Detailed pricing promotions by mobile application type
4.2. SMS mobile pricing promotions
4.3. Domestic mobile call pricing promotions
4.4. International mobile call pricing promotions
4.5. Mobile data pricing promotions
4.6. Mobile broadband pricing promotions
4.7. Key Point Summary
Part Five – The main trends in mobile pricing promotions worldwide
5.2. Survey of mobile pricing promotions worldwide
5.2.1. European region mobile pricing promotions
5.2.2. Middle East & Africa region mobile pricing promotions
5.2.3. Asia Pacific regional mobile pricing promotions
5.2.4. South American regional mobile pricing promotions
5.2.5. North American regional mobile pricing promotions
5.3. Key Point Summary
Part Six – The most common types of mobile pricing promotions worldwide
6.2. The main types of mobile promotion worldwide
6.2.1. The main types of mobile promotion in Europe
6.2.2. The main types of mobile promotion in the Middle East region
6.2.3. The main types of mobile promotion in the Asia Pacific region
6.2.4. The main types of mobile promotion in the South American region
6.2.5. The main types of mobile promotion in the North American region
6.2.6. The main types of mobile promotion in the African region
6.3. New trends in mobile pricing promotion services
6.4. Analysis of mobile pricing promotions
6.5. The reasons for a mobile promotion
6.6. The results of a mobile promotion
6.6. Key Point Summary
Appendices I, II and III
A List of Tables & Charts
Figure 1 to Figure 16 Details of various promotions
Figure 17 A chart showing the most common mobile promotion typesWorldwide
Figure 18 A chart showing the most common mobile promotion types in Europe
Figure 19 A chart showing the most common mobile promotion types in the Middle East
Figure 20 A chart showing the most common mobile promotion types in the Asia Pacific
Figure 21 A chart showing the most common mobile promotion types in South America
Figure 22 A chart showing the most common mobile promotion types in North America
Figure 23 A chart showing the most common mobile promotion types in Africa
Figure 24 A chart showing the percentage split between PrePay & Pay Monthly mobile promotions
Figure 25 A table showing the different bonus mobile recharges applied as a percentage
Figure 26 A chart showing the time duration for a mobile promotion scheme
Figure 27 A chart showing the Pay Monthly rental reductions applied for a mobile promotion
Mobile promotions are being used by operators in both emerging and developing markets with PrePay promotions still being the most common with more aim now being given to promotions for Mobile Broadband and Smartphone devices worldwide.
The author assesses the importance of mobile promotions worldwide in a unique study published today. Called Pricing Promotions by mobile operators worldwide – 2011 the new report evaluates the mobile promotions 150 operators in 80 countries worldwide and includes details of just under 300 mobile promotions in total.
The report finds that the Pre Pay customer segment accounts for 68 per cent of all promotions TCL surveyed with the most common type being a Top Up bonus. A recharge bonus can vary from 10 per cent to 100 per cent in addition to the customer value of the top followed by discounted calls. A wide range of promotional call discounts are available including free calls for an hour after a 2 or 3 minutes charged at the standard rate as well as discounts to selected international destinations.
For the Pay Monthly customer segment mobile promotions are often being tied into an existing loyalty programme, with both smartphone and USB modem devices being offered at a discounted or free price for a promotional period in return for the customer committing to a long term contract. The most common promotion for Pay Monthly services is a discount in monthly rental with operators experimenting with free rental periods – from 1 to 3 months – and discounts at up to 50 per cent - for up to a 12-month period.
“Mobile promotions are a critical tool in the operators’ armoury to attract new customers and also to bring dormant SIM cards back into use,” says Margrit Sessions, Managing Director of TCL. “The average duration of the mobile promotion is also being extended, with our research showing an average of 35 days – with promotions running for as little as one day or as long as 90 days – or even for an indefinite period depending on demand,” added Sessions.
For many countries, mobile promotions have now become a permanent feature of the telecoms landscape. In the developing markets of India and Pakistan a wide range of mobile promotion call discounts are available with the focus on stimulating off-peak usage and on-net calling within friends and family to favourite on-net numbers at very low rates. In Africa and South America operators are developing SMS-based lottery promotions to encourage users to Top Up their accounts more frequently with the incentive being to win large prizes – such as cash, a car or simply more airtime.
One new development is the use of mobile promotions to stimulate the take up of smartphones for the mobile internet and USB modems for Mobile Broadband. Across the world operators are seeking to raise their ARPU by encouraging the use of data services. Pre Pay data services are also being introduced into the market with one operator in the report offering preloaded data – of 2.5GB - on a USB modem (the modem is free if the user takes the initial 2.5GB allowance).
Mobile Broadband price promotions are mainly associated with Pay Monthly services with the most common promotion being either a discount in the monthly fee (of up to 50 per cent) or a free rental period (which ranges from a 1-month period to a 6-month period).
Additionally with the deployment of new 3G networks in Turkey and South America operators are offering promotions for new Pre Pay Mobile Broadband customers, with reduced purchase costs or bonus recharge amounts.
Although European operators do focus on Pay Monthly price reductions as their main promotional activity, Pre Pay mobile promotions are being used in Europe and other developed markets as incumbent mobile operators use short term campaigns to build network traffic and avoid the high cost of handset subsidy. Mobile promotions are a useful way of stimulating short term new network traffic and Pre Pay users onto a network without the operator incurring a high cost of price reductions for existing users or for handset subsidy.
The survey includes approximately 227 promotions offered by some 122 mobile operators across 74 countries in the world (a full list of mobile operators contained in this report can be found in Appendix One).
The aim of the report has been to provide as comprehensive overview of the main trends in the promotion of mobile services in both mature and so-called developing markets. In the report the emphasis is on price-based mobile promotions, but TCL also examines the role of non-priced based functions such as the provision of additional features, applications or services by the mobile operator.
In the report TCL considers both PrePay and Pay Monthly service promotions and the different types of offer that are evolving for calls, SMS, mobile data (for smart phone use) and mobile broadband using a USB flash modem.
TCL also provides a brief overview of the main trends in promotion based on the introduction of new services. In particular the focus is on promotions geared around the introduction of new types of smart phone handset and new value added services (such as Mobile Broadband services).
The report was written over the period from November 2010 to December 2010. It is based on web search information and information supplied by the mobile operators themselves, augmented by information supplied from questionnaire and interviews conducted by telephone.
Where possible, the common currency used throughout the report for consistency is Euro, with Euro rates shown in brackets in the text. Non-Euro currencies can be converted into Euro at the rate of exchange shown in the table below.
All of the prices that are used in this report include local taxes or VAT as the focus of the report is on retail consumer tariffs not the business tariff segment. In some cases in the text commentary TCL indicates the sales tax or VAT percentage rate that is applied to the tariff shown.
For reference, Appendix II and III provide the exchange rates used in this rates and details of the sales tax or VAT rates that are applied in the countries featured in this report
In considering promotions for mobile services the focus of the report has been on services provided by the Mobile Network Operator (MNO) not the Mobile Virtual Network Operator (MVNO). It should be noted that the focus for this report is on mobile services provided for the consumer segment, not the business segment. As a result all of the pricing that is provided in the report contains VAT or sales tax.
TCL has considered a wide range of promotions in the report. It should be noted that although many operators highlight their web-based promotions or offers, TCL has only included those that run for a defined time period. These promotions include price discounts for specific customers or time periods (including promotions for customer groups via clubs or segments) or types of on-net calls or SMS. The report also considers promotions provided by non-price means, such as additional air-time, Top- Ups or loyalty schemes which may be applied.
In the report, we seek to highlight the time duration of the promotion that is applied and how it is changing. TCL also identify how the promotion is offered – whether for example it is provided solely for web-based purchases or Top Ups, or solely for new – or existing customers.
Finally, TCL provides a commentary on the main trends that are taking place in the market for mobile promotions and identifies the most common and the most innovative forms of promotion that are now appearing.
|Question||What are the survey details, process and methodology for this product? Sample sizing and so on?|
The product contains an assessment of mobile promotions current worldwide over a 2 month period – from November to December 2010 - plus also a few historical examples of previous mobile operator promotion campaigns which have been applied.
- The research was focused on MNO’s - not MVNO’s or resellers - in some 74 countries worldwide.
- The research was based on desk research & case study information from individual MNO’s – most promotional pricing was web-based. The promotions were consumer-focused not business focused.
- Only promotions with a definite time limit – or which were stated as being temporary – were included. Therefore we excluded “promotions” which were being used as the basis of a permanent reduction (e.g. the waiving of USB modem purchase costs)
- The methodology was bottom up, and consisted of contacting all of the MNOs in each region, and evaluating the type of promotion, price discount, term applied, credit or recharge amount applied.
- The promotions were then split into categories – first by promotion type (including bonus recharge or credit, lottery style promotion, PostPay discount, call discount, mobile data discount, SMS discount, handset promotions – and by geographical region (which are: Europe, Africa, Middle East & Near East, Asia-Pacific, South America & North America regions) in order to see the different promotion types that applied per region.
- The product also includes a section on promotions by particular application types – for example Mobile Data, Handset promotions, SMS, national call & international call promotions – as well as examples of some key promotions by each geographical region
- In all, just under 300 mobile operator promotions are included, from just under 150 mobile operators in 74 countries.
- The product also provides a breakdown between PrePay and PostPay promotions and the average campaign duration applied for both types of user.