IP: : RE: DEAD ON ARRIVAL: MMO2 gives first sign ofEuropean 3G pricing

[David Farber <dfarber () earthlink net>]

-----Original Message-----
From: "David Prior" <david () priorintelligence com>
Date: Thu, 20 Jun 2002 10:17:19 
To: <farber () cis upenn edu>
Subject: RE: DEAD ON ARRIVAL: MMO2 gives first sign ofEuropean 3G pricing

Hi Dave,

For IP if you want it.

Interesting story. Back in my Phillips Group days I worked with a colleague
on a report into 'The Wireless Web' which theorised that ARPU for 3G
operators would have to rise from some $45 to around $81 per month in order
to sustain services. This included voice services. These figures were based
on pre-rollout estimates of use and penetration.

Intriguing that MMO2 is now suggesting that costs per user will actually be
greater than this. What will be more intriguing is to see whether or not 3G
operators implement Price Reaction Design (PRD) principles in order to
offset the usual stilted bell curve of first bill syndrome.

IPers who are interested in this can contact me for a free summary paper
about The Wireless Web at enquiry () priorintelligence com

Cheers,

David Prior

-----Original Message-----
From: owner-ip-sub-1 () admin listbox com
[mailto:owner-ip-sub-1 () admin listbox com]On Behalf Of Dave Farber
Sent: 19 June 2002 20:20
To: ip
Subject: IP: DEAD ON ARRIVAL: MMO2 gives first sign ofEuropean 3G
pricing


One should take a look at verizons "2.5G" pricing and see how it compares --
http://www.verizonwireless.com/express_network/exp_terms.html

Dave

------ Forwarded Message
From: "the terminal of Geoff Goodfellow" <geoff () iconia com>
Date: Wed, 19 Jun 2002 20:36:28 +0200
To: "Dave E-mail Pamphleteer Farber" <farber () cis upenn edu>
Subject: DEAD ON ARRIVAL: MMO2 gives first sign of European 3G pricing

MMO2 gives first sign of European 3G pricing
By Gautam Malkani in London
The Financial Times
Published: June 18 2002 19:56

MMO2, the mobile phone business spun off from BT Group last year, has become
the first European operator to price the next generation of mobile phone
services.

--SNIP--

Based on its initial tariffs, MMO2 said a typical residential user would be
charged £44 a month for using their phones to surf the internet, download
music and video and send multimedia e-mails. This includes a basic consumer
tariff of £25 per month [$37.25 USD] for up to 20 megabytes and £1 [$1.49
USD] for each additional megabyte. The total charge was calculated by
monitoring typical data useage on the Isle of Man.

For the heaviest business users, the typical monthly charge rose to £86
[$128.17 USD] a month.

However the charge does not include voice calls - which according to the
company's latest figures average at £34 [$50.67 USD] a month for UK
subscription customers.

MMO2 said it was too early to estimate whether its monthly UK average
revenue per user (ARPU) would therefore rise from £40 [$59.61 USD] at the
moment to nearer £70 [$104.32 USD] based on Tuesday's 3G data charges. The
useage patterns on the Isle of Man were likely to change following the
implementation of the tariffs.

--SNIP--

http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c
=StoryFT&cid=1024172319337&p=1012571727260

=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
geoff.goodfellow () iconia com, Prague CZ * tel/mobil +420 (0)603 706 558
"success is getting what you want & happiness is wanting what you get"
http://www.nytimes.com/library/tech/99/01/biztech/articles/17drop.html



------ End of Forwarded Message

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