T-Mobile benchmark for data tariffs, sub-brand Ben more expensive

Commentary Wireless Netherlands 12 AUG 2015
T-Mobile benchmark for data tariffs, sub-brand Ben more expensive

 

Voice and SMS are increasingly commodities, prompting operators to shift their focus to mobile data and value-added services. By looking at Sim-only plans, with separate prices for unlimited calls and SMS, we can isolate and compare the costs of data.

Such prices are available for Telfort (KPN), Simyo (KPN), Youfone (MVNO on KPN), T-Mobile, Ben (T-Mobile), Simpel (MVNO on T-Mobile) and Tele2. We have excluded OpenMobile as it focuses on family plans, while the other operators have standard plans. This is a comparison of MAFs (monthly access fees), not the TCO (total cost of ownership). We leave out the costs of unlimited calls/SMS, which vary considerably, from EUR 19 per month at T-Mobile (although this includes some extras, like 120 minutes of roaming in the EU) to EUR 10 at Tele2, Telfort and Youfone. Connection costs (EUR 10-15) are also excluded. The figures otherwise assume a 24-month contract (apart from Simyo, which has a maximum 12 months).

The data show the following highlights:

  • The price per GB falls the bigger the plan. However, this is not true for all the providers - Youfone, Simpel and Ben don't always follow this pattern.
  • At Ben, the reason is because it charges extra for 4G speeds. 4G is included with packages of 2 GB or more per month.
  • T-Mobile has the lowest price, in part because it offers the biggest package, at 12 GB. This comes out at a cost of EUR 1.71 per GB.
  • On the high end, Ben appears expensive compared to the T-Mobile brand. Ben charges EUR 19 for 3 GB (EUR 6.33 per GB), while T-Mobile only charges EUR 10.50 for the same amount (EUR 3.50 per GB).
  • Looking at the incremental value of a GB, T-Mobile is again the cheapest. Upgrading from 6 to 12 GB per month (so 6 GB extra) costs only EUR 6 more. That's a cost of EUR 1 per GB.

Notably the price per GB does not always fall as the amount of data purchased increases. This is especially true at Ben. As data usage grows, the providers will continue to introduce bigger plans. T-Mobile acts in this market segment as the benchmark.

These figures are based on the semi-annual Dutch Mobile Monitor 2015 Q1 report from Telecompaper. Building on Telecompaper's many research publications, this report gives a complete overview of the Dutch mobile market. The above price comparison is also part of the report.

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