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The Potential for Flat Rate Tariffs in Developed Markets

Traditionally, flat rate plans have been the means by which network operators have been able to encourage customers to try new services and develop new usage patterns. By reducing customers' exposure to the risk of high charges, service providers have been able to reap the rewards of increased revenue that follow on from facilitating new types of usage.

In developed markets today, flat rates may be seen as an anachronism, as the demand stimulated for data usage threatens to overwhelm the infrastructure available. However the ability of flat rate plans to appeal to certain customer segments and to stimulate new usage patterns mean that MNOs ignore this area at their peril. Several network operators have developed new and innovative flat rate packages that offer great potential for new revenues and enhanced customer loyalty.

This report examines some of these new flat rate models alongside more traditional approaches and draws conclusions and makes recommendations that should be considered by all mobile players.

Price: EUR 2,500.00 / GBP 2,100.00

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Table of Contents


1
Overview
1
2
Introduction
2
2.1
Background to the Report
2
2.2
Report Content
2
2.3
Currency and Conversions
3
2.4
Further Questions and Feedback
3
3
Sample Flat Rate Plans
4
3.1
Introduction
4
3.2
Verizon USA - Flat Rate Prepay
4
3.3
Republic Wireless USA - Flat Rate Hybrid Calling
6
3.4
NTT DoCoMo Japan - Flat Rate Data Plans
9
3.4.1
LTE Xi Plan
9
3.4.2
Pake-hadoi FLAT for Smartphones
11
3.5
T-Mobile UK - You Fix Hybrid Plans
12
3.6
BASE Germany - Flat Rate Tariffs
15
4
Flat Rates - Role and Viability
18
4.1
Introduction
18
4.2
Flat Rate Roles
18
4.2.1
Phones for Dependents
19
4.2.2
New Service Adoption/Migration
19
4.2.3
Offloading the Mobile Network
20
4.2.4
Flexible Contracts
21
4.2.5
Prepay to Postpay Migration
21
4.3
Flat Rate Caveats
22
4.3.1
Limited Allowance Implications
22
4.3.2
Fixed Revenue With Variable Costs
22
4.3.3
Actual and Perceived Costs
23
5
Conclusions & Recommendations
24
 
Appendix - Feedback Questions
25