SlideshowVodafone UK takes wrecking ball to 5G market

James_B_Crawshaw 7/4/2019 | 6:34:08 AM
Re: Customer-friendly 5G Pricing I think it is based on mobile service revenue. This was EUR2,067m in 6m ending March (of which 134m incoming and 133m other service). With 17.21m UK mobile customers (of which 72% contract) we get overall ARPU of EUR20.0 per month of which contract is EUR21.1 and prepaid is EUR17.3. There is a separate line for other revenue which includes connection fees and equipment sales. 


I'm more of a dolphin myself :)
Gabriel Brown 7/4/2019 | 5:45:11 AM
Re: Customer-friendly 5G Pricing Vod UK contract ARPU was EUR21.1 (GBP18.9)

Is that SIM-only ARPU? It might include handset revenues. In any case, my point still stands £18 is a lot less than £30

You are correct that the "whales" will now be able to get better deal, but many of us/them already negotiate down at renewal time. 
James_B_Crawshaw 7/4/2019 | 4:49:22 AM
Re: Customer-friendly 5G Pricing Vod UK contract ARPU was EUR21.1 (GBP18.9) in March Q. An 80GB SIM only 4G deal currently costs £37. Now they will offer unlimited data for £23-30 depending on the speed. Most people will find the lowest speed/price is adequate. Pricing will be same for 5G as 4G. They are banking on a lot of people moving from cheaper plans to the umlimited. It seems that outside of South Korea none of the operators are able to charge a premium for 5G. 
Gabriel Brown 7/4/2019 | 4:02:51 AM
Customer-friendly 5G Pricing Can't say I agree with the tone of this piece or my esteemed colleagues' comment.

The latest figures I can find for the UK market from Ofcom say that

"outside the minimum contract term, pay-monthly SIMO [SIM only] consumers paid £15"

£30 month is twice the UK average. The lowest of these "unlimited" plans is £23.

So it looks carefully judged.

Vodafone has always championed what it calls rational pricing. In that sense, this offer is more aggresive than I would have expected from V. But the operator has fallen from number 1 to number 3 in UK market share and needs to do something. It also has a customer base that is, I believe, relatively low usage compared to EE and 3UK. At the same time, it is investing in a high-capacity 5G network.

This seems like a customer-friendly way to gain share without "wrecking the market".

jerehada 7/3/2019 | 4:58:18 PM
Same old It's could simply leave a problem for the next Group of managment, supposing this is not a 1 year promotional offer? Maybe VF are banking the possibility we are close to peak data consumption for their customer segments but that seems unlikely. I wonder if they are planning to ahem "service level" traffic so that people struggle to "over use" data.
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