Telecom Investing: Moving beyond Tiered Pricing and Charging by Services Rendered

Its an exciting week but lets not get ourselves distracted. Some fundamental knowledge about the telecoms we are investing is important.

We talked about in the past why telecoms in US and Europe are moving towards tiered pricing and charging more to people who use more mobile bandwidth.

The future could be that Singtel and Starhub could not increase their tariffs for LTE implementation. Would you pay more than $40 dollar just because LTE provides more throughput? I think not. There is just so much you are willing to pay.

Mobile data charging is a pickle for most operators. When offered quota-based plans, subscribers react with confusion (not at the least alleviated by data plan calculators and other visualization aids). Frustration comes next, when they are offered ‘unlimited’ data plans, but those are too slow or get throttled. Selling bits and bytes simply doesn’t cut it anymore. Strand Consult is …