Tariff Consultancy Ltd (TCL) has published the 60th edition of its Tariff Trends SnapShot subscription servicewhich analyses the impact of MNO consolidation on pricing levels in three European markets (Austria, Ireland & the UK).
The 60th edition marks a landmark of 3 years of SnapShot reports.
The 60th TCL SnapShot edition analyses mobile pricing in three European markets which have seen recent MNO mergers.
- Orange Austria was acquired by 3 Austria in January 2013
- Telefonica O2 Ireland was acquired by 3 Ireland in March 2015
- Orange UK was merged with T-Mobile to create Everything Everywhere in September 2012.
Austria & Ireland has seen the number of MNOs reduced from 4 to 3 operators and the UK market has seen the number of MNOs reduced from 5 to 4 operators.
“Each of the three markets has seen an increase in average Post Pay pricing for smartphone bundles ” (including calls, SMS & mobile data), but with increases varying dramatically by MNO. The TCL SnapShot provides analysis of Pre-Merger & Post-Merger pricing with comparisons of average market pricing, lowest and highest Post Pay bundled rates.
In Austria TCL finds that all MNOs have raised pricing but the merged MNO 3 Austria, has only raised average pricing by 9 per cent, but its rivals T-Mobile & A1 Austria have increased rates a far higher rate – chiefly through raising entry-level pricing.
But Irish MNO average Post Pay pricing has fluctuated since consolidation, with Vodafone seeing the largest increase but with 3 Ireland seeing an average decline of 2 per cent, and Meteor a fall of 4 per cent.
UK MNO average Post Pay pricing has increased since the formation of EE, with EE’s average rates being 22 per cent higher than for Orange UK.
Since market consolidation has taken place Post Pay average pricing has increased, but at different rates. In the majority of cases after consolidation, MNOs have withdrawn their lowest entry-level Post Pay rates with a lesser increase in some of the higher Post Pay rates.
Although it is not inevitable that pricing will always increase after a period of MNO consolidation, the scope for product rationalization indicates that entry-level rates will be increased by the remaining MNOs. However, the increase in price levels will allow MVNOs to enter the market with bundles positioned at low price points undercutting the MNO – as in Austria with the launch of Hofer Telecom from the beginning of this year.
An understanding of the consequences of MNO consolidation and the effect on end user pricing is to become more necessary as MNOs in the UK and Italy look to merge their businesses.
Kaynak : 