|[February 12, 2013]
Mobile Subscribers Willing to Pay for Service Bundles 'Their Way'
MORRISVILLE, N.C. --(Business Wire)--
Customers want more choices in how they can mix and match services, and
they are willing to pay for a greater degree of personalization across
services, such as: Email, Web Browsing, Social Networking, Multi-User
Gaming, Sports/News/Video, Voice over IP, TV and Movies, Cloud, Remote
In addition, customers ranked pricing concepts based on Usage and Specific
Applications higher than those based on Bandwidth/Performance,
Family Sharing/Bundling of Devices, Casual Usage, or Free Access
with Advertising. Service providers have an opportunity to generate
incremental revenues if they sell tailored services to customers whose
devices are capable, but not yet part of a mobile data plan.
These are just a couple of the insights found in Signals Research
Group's "Mobile Broadband Pricing and Bundling - the Voice of the
Consumer," a report of unparalleled scope in quantitative and
statistical analyses about subscribers' preferences for pricing and
service bundles, and the factors driving their choices.
Sponsored by Tekelec (News - Alert), the report provides composite and regional data
gathered from almost 3,500 mobile broadband consumers spanning five
countries: Brazil, India, South Korea, the United Kingdom, and the
The result is a gold mine of information service providers can use to
build personalized revenue-generating services and customer loyalties.
"Understanding demographic differences, device ownership, and existing
service experience indicators will help service providers understand
customers - what engages them, what disenchants them, what moves and
inspires them - not only as individuals, but also as members of
communities and groups in an increasingly mobile and
social-media-oriented world," said Houck Reed, vice president, product
management and marketing, Tekelec.
Some key takeaways from the report include:
Usage-Based Pricing and Paying for Specific
Applications are the preferred pricing concepts on a global basis.
Family Sharing is the preferred pricing model in South Korea
and comes in second out of seven in the United States.
Free Access ranked very differently country by country,
providing an indicator of which countries might be more amenable to
mobile advertising and subsidized free access than others. For
example, 86% of respondents in Brazil expressed interest in Free
Access as a pricing concept.
Security (Remote Lock/Remote Wipe), Web Browsing,
and Email stand out as the preferred services on a global basis.
Brazil, India, and South Korea prefer consumer/entertainment-oriented
services like VoIP and Video, while the United Kingdom
and the United States prefer productivity-oriented services like Web
Browsing and Email.
In al countries surveyed, respondents strongly preferred a bundle of
multiple services (two or three or four of their choosing) to any single
While they don't need to have an infinite selection, customers want
some choice and variety, because they want to use their mobile device
for more than one application.
In addition to key findings, the report reveals important correlations
among data, such as:
Hotspot usage is an indicator that subscribers allocate mobile data
spend to Wi-Fi, which can be a red flag for new business opportunity.
Respondents who do not currently use mobile broadband with a tablet or
laptop, but who do pay for hotspot connectivity represent a viable
Enthusiasts who pay for hotspot access spend $104 per year on hotspots
vs. $76 per year for Non-Enthusiasts (Interestingly, there are a
significant number of people who spend more than $500/year on hotspots
in Brazil, whereas in the U.K., the majority don't spend a penny on
These are just some of the findings that operators can use to gauge
consumer appetite for more sophisticated pricing and bundling.
"This is a unique report in that operators hear the voices of their
consumers: how they use mobile broadband services, what pricing models
they prefer, what services they prefer, and what factors influence their
mobile broadband purchasing decisions," said J. Randolph Luening, vice
president, Wireless Economics at Signals Research Group.
Broadband Pricing and Bundling - the Voice of the Consumer" preview
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Tekelec's intelligent mobile broadband solutions enable service
providers to manage and monetize mobile data and evolve to LTE (News - Alert) and IMS.
We are the architects of the new Diameter network, the foundation for
session, policy and subscriber data management. More than 300 service
providers use our market-leading solutions to deliver cloud,
machine-to-machine and personalized services to consumers and
enterprises. For more information visit www.tekelec.com.
About Signals Research Group
Signals Research Group (SRG) offers thought-leading field research and
consulting services covering the wireless telecommunications industry.
The "no holds barred" approach to conducting research and analysis means
that SRG's first and foremost objective is to offer differentiated
research products and services. Instead of just capturing market data
analyzing past events, SRG focus on where the industry will be tomorrow
and the technologies and service offerings that will shape its future
and not those that defined its past (www.signalsresearch.com).
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