A new study by Tarifica reveals that the commoditization of 5G services is now impacting high data volume plans in Europe, with significant price reductions observed in several markets, including Poland, Belgium, Ireland, and Spain.
NEW YORK, Sept. 23, 2024 /PRNewswire-PRWeb/ -- Tarifica's latest Data Dive, a monthly publication providing insights and analysis from its proprietary Telecom Pricing Intelligence Platform, reveals that the commoditization of 5G services is beginning to affect high data volume plans in several European markets. The report, led by Tarifica's Vice President of Product, Will Watts, highlights significant price reductions for 100GB data plans in countries such as Poland, Belgium, Ireland, and Spain, with the most dramatic price drops observed in Poland.
For years, mobile operators have sought to maintain higher pricing for their premium, high data 5G plans, targeting "super users" who consume 100GB or more of data per month. However, recent pricing trends indicate that even this premium segment is not immune to commoditization.
According to Watts, "Historically, operators expected high data volume plans to be resistant to price erosion, as these customers are more affluent and dependent on their mobile services. However, in just the past quarter, we've seen significant price reductions in several European markets, signaling that even these premium customers may no longer be shielded from broader industry pressures."
The study points to Poland as a key example of this trend, with operators like Play, Orange, and Netia reducing prices for 100GB plans by an average of 37% between Q2 and Q3 of 2024. Similar reductions were observed in other European markets, including Belgium, Ireland, and Spain, with price drops ranging from 17% to 44%. This trend mirrors earlier declines seen in the 20GB segment, where pricing for what was once considered "heavy usage" has converged across operators, further demonstrating the pressures operators face in maintaining margins.
"The commoditization of 5G services is a reality that operators need to confront," added Watts. "If current trends persist, the 'race to the bottom' in pricing could extend to more customer segments, eroding margins even in what were traditionally premium tiers. Operators will need to innovate and offer more compelling services to avoid this fate."
The study also questions the future viability of the "More for More" strategy, in which operators steadily increased data allowances while keeping prices relatively stable. With 100GB data plans now seeing significant price drops, operators may be reaching the limits of this strategy, forcing a reassessment of how they drive value and maintain average revenue per user (ARPU).
To access the full Data Dive 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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