The end of ‘more for more’ will see telecoms operators exploring new options for consumer pricing

14 December 2023 | Subscription research

Tom Rebbeck

Predictions


The strategy of ‘more for more’ will run out of road in 2024. Operators in high-income countries have offered existing users progressively higher mobile data allowances or fixed-line speeds to increase (or at least defend) revenue. A new approach is now needed.  

Over 50% of contract customers in the USA already have unlimited mobile data (Verizon reports that over 80% of contract customers are on unlimited plans). The share of customers on unlimited deals is rapidly growing in other countries. 

In fixed markets, with customers increasingly on high-speed fibre plans, an equivalent problem exists: operators are running out of ‘more’. 

UK operators are trying 'more for the same' - mid-contract price rises are helping raise mobile (if not fixed) ARPUs - but this only works when there are no disruptive players. In the USA, operators are experimenting with premium unlimited plans, essentially offering new types of ‘more’ (higher speeds, content). 

2024 will see much more trial (and a fair bit of error) as more operators experiment with different options to replace ‘more for more’.  

 

Analysys Mason 2024 predictions for the TMT industry
Analysys Mason 2024 predictions for the TMT industry