The 1 GB or above monthly Mobile Data allowance now accounts for over half of Smartphone Post Pay contracts offered in 10 European markets from the TCL survey

Thursday 28 February 2013, Amsterdam

New Mobile Data allowances with the Smartphone are being used as a core bundled product in Europe, with monthly Smartphone Mobile Data allowances increasing over time as more integrated tariffs are introduced.

TCL (Tariff Consultancy Ltd) in the new report Key Smartphone Mobile Data Pricing Trends in Europe has identified a rapid increase in Mobile Data allowances which has become the standard offering. The 1 GB or above monthly Mobile Data allowance now accounts for over half of Smartphone Post Pay contracts offered in 10 European markets from the TCL survey.

The TCL report analyses Smartphone Mobile Data pricing of 41 MNOs across 10 key European markets (including France, Germany, Ireland, Italy, Netherlands, Portugal, Spain, Sweden, Switzerland and the UK) for both Pre Pay & Post Pay services, and examines the trends in pricing from 2010 to 2013.

Mobile Data allowances are being bundled with the Smartphone and are a relatively new service with MNOs now offering an “integrated” tariff with Mobile Data as the core component.

Mobile Data is being offered as a core service, with monthly data allowances offered from 1 GB up to 10 GB. The most common Data bundle is the 1 GB allowance, but in markets such as Ireland Mobile Data allowances as high as 5GB per month are provided as standard (for the iPhone).

Additionally MNOs continue to migrate their Pre Pay customers to Post Pay Smartphone bundles. There is also growth in the provision of 30 Day contracts – as in France – where web-based deals offer a minimum contract term with higher Data allowances since Free Mobile entered the French market.   

From research based on TCL’s unique telecoms price tracker database there have been 3 distinct phases identified in the development of Mobile Data bundles with Smartphones which include –

• Phase 1 – In 2010 the MNO started to offer Mobile Data as typically as a Bolt On to the Smartphone, with a relatively low Mobile Data allowance offered;
• Phase 2 – Into 2011 the MNO introduced a range of Premium Smartphone packages which include Mobile Data, SMS and call minutes at a relatively high price point;
• Phase 3 – Into 2012 there has been the introduction of many more Smartphone packages with many price points as an integrated tariff offering with a reduction of average pricing.