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5G Pricing Disparities Highlighted in New Tarifica Study


News provided by

Tarifica

Jul 23, 2024, 09:07 ET

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The latest Tarifica Data Dive study revealed varied 5G pricing trends in Europe, with some countries experiencing price increases and others decreases, and highlighted differing pricing strategies and market maturity across regions.

NEW YORK, July 23, 2024 /PRNewswire-PRWeb/ -- Tarifica has completed a study examining 5G mobile pricing trends from 2022 to 2024 across four major European markets: France, Germany, the Netherlands, and Spain. This study aims to track the evolution of 5G offers since the service's launch and analyze the various pricing strategies employed within each market.

The study revealed diverging 5G prices across the markets. Germany and Spain experienced increases in average 5G mobile plan prices since 2022, while France and the Netherlands saw declines. Germany's average 5G cost rose from €25.41 to €40.31 per month, making it the highest cost market. In contrast, France saw the most significant decrease, with 5G prices falling by over 33%.

There were also varied approaches to pricing structures for high data volumes. Some operators maintained an "all unlimited" pricing model, leading to flat prices regardless of data usage. Other operators offered a broader range of plans, with prices scaling more linearly with increased data usage. France exhibited minimal price differences for increased data usage, while Germany and Spain showed more pronounced price scaling.

Additionally, the study highlighted significant differences in pricing variations between operators within each market. The Netherlands had almost no price difference between the three operators for any user profile, suggesting a commoditization of 5G services. In contrast, Germany and Spain exhibited substantial price separations between providers, indicating that factors beyond cost were influencing consumer decisions. For instance, German consumers using at least 50GB of 5G data per month faced a €50.00 difference between the best offers from Vodafone and 1&1.

Will Watts, Vice President of Product at Tarifica and author of the study, commented on the findings: "Our study underscores the fact that the 5G market in Europe is still maturing. We see a significant variation in pricing strategies and structures, indicating that operators are still experimenting to find the most effective ways to monetize their 5G investments. Additionally, in some of the more expensive markets, higher costs are likely due to a combination of inflationary pressures and enhancements in service quality."

Watts further added, "The disparities in pricing and offer structures across countries and between providers highlight the complexity of the 5G market. It's clear that a one-size-fits-all approach doesn't apply, and operators need to be agile and responsive to local market conditions."

Study Details

This study was conducted using data from Tarifica's Telecom Pricing Intelligence Platform (TPIP), which contains an archive of all consumer mobile offers from 17 MNOs and large MVNOs across the four countries. All offers in the system were captured from provider websites and have been updated on a quarterly basis. For each year, data from the second quarter was used.

Since operators' pricing and offer structures can vary dramatically between different user types, multiple consumer profiles were employed, each with a different set of requirements. In this study, three data volumes were employed: 5GB, 20GB, and 50GB. 5G speeds were required. In addition to the data allowance, each profile required 100 minutes of calling. These requirements represent the minimums for each profile, hence a plan with 10GB of data could still be selected for the 5GB profile if it was the least expensive qualifying plan from the operator.

To read the full report, please visit Tarifica's website.

About the Telecom Pricing Intelligence Platform

This latest Data Dive analysis was based on data from Tarifica's Telecom Pricing Intelligence Platform (TPIP), which offers comprehensive data on plans from major operators around the world, empowering users to create customized profiles for in-depth comparisons and analyses. Subscribers can explore trends and visualize data with ease using intuitive tools and multiple filters for a granular view. Say goodbye to Excel-based limitations and embrace modern features like screenshot captures, alerts, and historical offers. TPIP is adaptable to client needs, allowing customization of data structure, geographical scope, and frequency.

About Tarifica

Tarifica is an industry leader in providing telecom data and software solutions to the global telecommunications sector. Specializing in telecommunications plan and pricing information, Tarifica delivers critical insights and analytics to help telecom companies and regulators make data-driven decisions. The company's clients include national regulators, mobile and fixed line operators, internet service providers, consultancies, and financial institutions worldwide. In addition to its flagship SaaS products, Tarifica offers tailored consulting services to address specific client needs. The company's commitment to innovation and excellence has established it as a trusted partner in the rapidly evolving telecom industry.

Media Contact

Penny Wiesman, Tarifica, 1 917-419-2187, [email protected], www.tarifica.com

SOURCE Tarifica

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