LTE Flat Rate Pricing for Competitive Advantage
A key enabler to mobile broadband adoption is the introduction of flat rate data tariffs. By a considerable margin, global consumers prefer non usage based pricing. Delivering attractively priced flat rate tariffs will be key to mass market adoption of wireless broadband.
The operator’s dilemma is determining the optimum flat rate tariff. Aggressive pricing will increase subscriber uptake and potentially gain market share, but the flipside is that the network may become congested and unable to meet expected user experience without costly investment.
Legacy 3.5G technologies can be priced to meet needs of the mobile broadband early adopter segment, but to compete in the mass market segment more aggressive tariffs will be required. A close inspection of consumer price sensitivity and projected data uptakes indicates that much higher data throughput capacity and cost effectiveness of 4G LTE will be needed to deliver mass market adoption of wireless broadband (figure 1).
Figure 1: NPV vs Flat rate tarriff pricing
With 4G LTE, an operator can achieve a sustainable advantage compared to operators with 3.5G technologies. Find out more in our “LTE Flat Rate Pricing for Competitive Advantage” white paper to find out how LTE operators will be able to aggressively pursue a flat rate tariff as a competitive tool.
