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Pricing Strategies in the Maturing Prepay Market

The pricing strategies for basic services adopted by individual operators vary depending on market conditions and internal commercial policies. However, variations in the prepay segment are not as marked as those found in the consumer contract segment since prepay customers are generally offered fewer tariff options than their contract counterparts. On average wireless operators offer their prepay customers between two and three prepay plans typically comprising a "flat" rate plan, a "peak" & "off-peak" rate plan and an "on-net" & "off-net" rate plan.

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1	Pricing Strategies in the Maturing Prepay Market	1
1.1	Overview	1
1.2	Usage Based Tariffs	2
1.2.1	Vodafone's Monthly Bonus for Medium & High-value Customers	5
1.2.2	Cosmote's Variable Monthly Bonus for Cosmokarta Customers	6
1.2.3	MTN Nigeria Regressive Prepaid Tariffs	7
1.2.4	Bouygues Telecom "Flash" Service Option	12
1.2.5	Other Usage Based Discount Initiatives	13
1.3	Group and Community Based Tariffs & Service Options	14
1.3.1	Qtal! Service by Vodafone Spain	15
1.3.2	Other Examples of Group Based Tariffs	20
1.4	Other Prepay Tariffs Aimed at Specific Customer Segments	24
1.4.1	Online Self-service Segment	24
1.4.2	Local Rates & Fixed Line Substitution Tariffs	27
1.4.3	Inbound Call Stimulation	29
1.5	Service Options & Bolt-ons	31
1.6	Hybrid Tariffs	33
1.6.1	Hybrid Tariffs by French Operators	33
1.6.2	T-Mobile UK - Moving Prepay Customers Up the Value Chain	35
1.6.3	Hybrid Tariffs for the Business Segment	41