New ways of doing business in the telecommunications sector
8.1.3. Flat rates to stimulate demand
As seen abo
w
type of subscription would ha
ant to increase their a
ve, the FTF experts feel that oper
verage rev
ators should offer flat rates if they
ve a beneficial circular effect at all lev
enue per user. According to Forrester
els of the v
300
, this
lue chain:
a-
Flat-rate data tariffs kick-start an upward cycle
c
Flat
onsumers to spend more time
-rate data tariffs stimulate
on the mobile Internet and to
usage by existing
Increasing use more services
users
Existing users and content
pro
More users
r
content
elevant
More
awareness, interest, and
viders will trigger
As usage grows, the mobile
desire from nonusers, causing
them to also start using the
attr
Internet becomes more
mobile Internet
and they gain more experience
active to content providers
in what consumers w
being mobile
ant while
Figure 57. Circular effect of flat r
Source: Forrester Research, Inc.
ates.
1.
dictable and cheap r
Increased usage among existing subscribers.
ates that enable them to control spending. Flat r
Consumers look for simple, pre
ates res
-
pond to these three premises, and have thus contributed to a rise in Internet
-
connections: when prices fell 35% in W
2006, usage increased by 135%. In the mobile mark
estern Europe between 2004 and
curred with v
et, something similar oc-
which forced
greatly increased, 80% of
oice services. In Japan, where the use of mobile Internet has
NTT DoCoMo
KDDI
302
to also offer this kind of pricing.
301
customers signed up for their flat rate,
300
2.
Strategies Mature.
Mobile Internet Pricing fically dev
More qualit
elop for mobile platforms. This becomes a vicious circle: br
y content. Today the vast majority of Internet sites do not speci-
Veen. Forrester. July 2007.
Niek van
not want to invest millions of euros in dev
ands do
301
are not enough users, while advertising companies w
eloping a specific website if there
http://www
KDDI:
ex.html.
.kddi.com/english/ind
efficiency of this medium for their campaigns. Only 32% of mobile Internet
ant to see proof of the
users go online at least once a week. As the number of users frequently ac
http://www
302
NTT DoCoMo:
.nttdocomo.com/.
cessing the Internet from their mobile handsets rises, all of the major com
-
panies will want to ha
-
http://www
303
MySpace:
.myspace.com/.
names lik
ve a presence on this channel. The involvement of
panies in the industry
e Google, YouTube
.
or MySpace
303
will surely attract other com-
© 2008 Fundación de la Innovación Bankinter. All rights reserved.
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