A Survey and Analysis
• A comprehensive, in-depth look at mobile data billing methods from multiple perspectives.
• Learn not only how operators are currently charging for data usage, but also what their preferred method(s) of billing for data will be in the future.
• Major takeaway: Report shows usage-based billing is the favored method across all operator sizes and that a super-majority of operators expect to make changes to billing plans in 2012.
• Based on a survey of more than 300 responses, report consists of 28 pages, and has more than 20 charts.
Executive Summary
While some might quibble over the numbers, there is no question that mobile data traffic is increasing and doing so rapidly, driven by video. Mobile operators face the challenge of not only delivering greater broadband bandwidth to users of smart phones and other mobile devices, but ensuring that the predicted increase in data traffic also translates into increased revenues and profit. Thus a key challenge for mobile operators is how they charge customers for data usage.
An on-line survey questionnaire, which drew more than 300 respondents, queried mobile operators on the types of billing plans they offer, what their preferred plans would be, spectrum availability, choice of network technologies and related issues. To provide greater insight beyond simply tallying responses to questions in the survey, how respondents answered one question was cross-tabulated with their answers to other questions.
Although mobile operators are generally satisfied that their billing methods extract maximum value from different customer segments such as techno-savvy and business users, the survey reveals a strong preference by operators to charge subscribers for data based on tiered usage plans; other billing schemes, such as charging by application (e.g. email, web surfing) or service (e.g. VoIP, YouTube) do not garner much support. Not surprisingly, a large number of operators are considering changes to billing plans in 2012. At the same time, a substantial number of operators are concerned that market perception and competitive considerations might prevent them from adopting their preferred billing schemes.
Where differences are sharpest among mobile operators often has to do with the size of the operator. For example, although GSM/GPRS is the popular network technology across all operators, the top choice of Tier 1 operators is LTE and HSPA+. Tier 1 operators also much more strongly favor charging customers for data on a usage basis than do Tier 2 and Tier 3 operators. Less surprisingly, there are huge differences in the amount of spectrum large and smaller operators have allocated for data.
Table of Contents
2. Introduction & Methodology
3. Key Findings
4. Survey Responses
4.2 How much spectrum does your company allocate for data services?
4.3 How does your company currently charge for mobile data usage?
4.4 Do you believe your company's current data usage plans extract maximum value from all customer segments (e.g. techno-savvy users, business users, elderly users, etc)?
4.5 What would be your preferred way of charging for data usage?
4.6 What prevents your company from moving to your preferred billing model ?
4.7 Does your company currently offer multi-device plans for individuals and families?
4.8 Do you expect your company to make changes to its data usage plans 2012?
5.2 Spectrum allocated for data by operator tiers
5.3 Current methods of charging for data by operator tiers
5.4 Do current data plans extract maximum value from all customer segments?
5.5 How operators tiers would prefer to charge for data usage
5.6 Challenges that might prevent operator tiers from implementing their preferred methods of charging for data
5.7 Individual and family multi-device data plans offered by operator tiers
5.8 Operators tiers considering changes to data usage plans in 2012
6.2 Data usage plans operators would prefer based on the number of subscribers
6.3 Likelihood of operators changing data usage plans based on the number of subscribers they currently have
7.2 Supported network technologies and how operators would prefer to charge for data
7.3 Supported network technologies and likelihood of operators changing data plans
8.2 What operators’ preferred method of charging for data would be based on their current spectrum allocation
8.3 Likelihood of operators changing their data usage plans based on amount of spectrum allocated for data
9.2 Likelihood of operators changing billing methods based on the data usage plans they currently offer
9.3 How operator would prefer to charge based on current data plans
