Wireless Data Services Get Faster, But Customers Aren't Seeing Any Price Breaks, New Report FindsCarriers are deploying new technologies to boost network speed and efficiency, but so far they are keeping cost savings to themselves, notes Unstrung InsiderPRNewswire NEW YORK, Jan. 4 /PRNewswire/ -- More wireless network operators are deploying HDSPA technology to significantly boost data rates for subscribers, but most carriers haven't adjusted their pricing schemes to make high-speed wireless data more attractive to users, according to a new mobile data service price report from Unstrung Insider (http://www.unstrung.com/insider), a paid research service of CMP Technology. "Mobile Broadband Pricing Strategies & HSDPA" examines and evaluates 78 price plans from 24 operators in 17 different countries to identify successful strategies for marketing mobile broadband services. With almost 90 commercial networks launched in 2006, HDSPA is driving a vast change in wireless data rates from peaks of 300 kbit/s per user with regular 3G services to almost 3 Mbit/s in advanced HSDPA networks. Combined with benefits such as lower latency and an increase in network capacity that allows operators to support six times more users per cell, HDSPA dramatically improves operator economics and enables providers to offer faster and lower- cost services. But the economic benefits of HSDPA technology have yet to filter through to the end users, notes Gabriel Brown, Chief Analyst for Unstrung Insider and author of the report. "Wireless operators are using the extra capacity of HSDPA to sell faster services, rather than lowering prices for end users, with many tariffs on the market originally formulated for 2G services," says Brown. "Data limits designed for GPRS, or even regular 3G networks, do not translate into the broadband world. Operators need to share the benefits of HSDPA technology with their customers." The 24-page report includes comprehensive high-speed data service pricing analysis for many of the world's largest mobile network operators, including Cingular Wireless, T-Mobile, Verizon Wireless, NTT DoCoMo, and Vodafone. Key findings of "Mobile Broadband Pricing Strategies & HSDPA" include the following: * Operators are using the extra capacity of HSDPA to sell faster services, rather than lowering prices for end users; this is a major, but likely temporary, mistake * 1GB data tariffs, at an average cost of ~$60 per month, are emerging as the most popular service plans for operators worldwide * Nearly all flat-rate data plans come with "fair use" limits or restrictions on streaming and VoIP applications; such limits are reasonable, if clearly stated * There is not yet a clear link between underlying network costs and the price of the services in different markets; nor is price clearly linked to ability to pay for services * International roaming prices are extortionate and negate 3G's advantage as a world standard "Mobile Broadband Pricing Strategies & HSDPA" is available as part of an annual subscription (12 issues) to Unstrung Insider, priced at $1,595. Individual reports are available for $900. To subscribe, or for more information about this report, please visit: http://www.unstrung.com/insider. For more information about our other "Insiders," please visit: http://www.lightreading.com/research. To request a free executive summary of the report, or for details on multi-user licensing options, please contact: Jeff Claudino Director of Sales Insider Research Services 619-229-9940 claudino@lightreading.com Press/analyst contact: Dennis Mendyk Managing Director Insider Research Services 201-587-2154 mendyk@heavyreading.com About CMP Technology CMP Technology (http://www.cmp.com/) is a marketing solutions company serving the technology industry. Through its market-leading portfolio of trusted information brands, CMP has earned the confidence of more technology professionals than any other media company. As a result, CMP is the premier provider of access, insight and actionable programs designed to connect sellers and buyers in ways that yield superior return on investment. CMP Technology is a subsidiary of United Business Media (http://www.unitedbusinessmedia.com/), a global provider of news distribution and specialist information services with a market capitalization of more than $3 billion. SOURCE: Unstrung Insider CONTACT: Jeff Claudino, Director of Sales of Insider Research Services, Web site: http://www.unstrung.com/insider |