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Wireless

Tele2 Netherlands: new tariffs on the way?

Thursday 19 February 2015 | 16:25 CET | Market Commentary

Tele2 Netherlands will start migrating customers to its own mobile network in March. Customers will no longer need to use the T-Mobile network as under the MVNO arrangement and can instead profit from higher data speeds over Tele2's new LTE network. Tele2 said it does not plan to position 4G as a 'premium' service, but as part of existing subscription plans. However, we still expect the operator to change its pricing. The current tariffs have not changed since September 2014, and at the moment its biggest data bundle is only 4 GB - a small amount for a LTE user. The problem is Tele2 will still have two groups of users - those still using the 3G network under its roaming deal with T-Mobile and those on its own 4G network. We expect Tele2 NL to give at least part of the savings from having its own network back to customers in the form of lower tariffs.

Tele2's current SIM-only prices offer tariffs for voice and SMS (both unlimited for EUR 13 per month) and data bundles. The data plans start at 100 MB for EUR 3 per month and go up to 4 GB for EUR 25. With LTE, 4 GB will no longer be enough. Tele2 will most likely introduce a 10 GB bundle and possible even larger plans. 

What's happening at Tele2 Sweden offers a glimpse of what may be launched in the Netherlands. The Swedish operator recently announced new tariffs and bigger bundles, changing its previous plans from November 2014. Under the previous pricing, smaller bundles were relatively expensive (SEK 245 = EUR 25.7 per GB with the entry-level plan of 200 MB). The price per GB declined with larger bundles (SEK 12.5 = EUR 1.31 per GB for a 20 GB bundle). However this had a limit: the customer did not profit from taking an even bigger bundle, as the price per GB stopped falling so sharply (SEK 11.7 = EUR 1.22 per GB with the largest bundle of 60 GB).

Tele2 Sweden's new consumer plans offer unlimited calls, SMS and MMS at slightly lower prices. There is also now an incentive for the customer to take a larger bundle, as the price per GB continues to fall as the size of the bundle increases. The plans start at SEK 98 (EUR 10.3) per GB for 0.5 GB and finish at just SEK 5 (EUR 0.52) per GB with the 50 GB plan. It also now offers a 100 GB bundle, at a price of SEK 4 per GB (EUR 0.42). Tele2's message is clear: there is enough capacity, even for the heaviest of users. 

Tele2 Sweden data tariffs

Returning to Tele2 Netherlands, its biggest data plan of 4 GB offers a price of EUR 6.25 per GB. The total subscription price, including unlimited calls and SMS, is EUR 38 (no minimum contract, no activation fees). In comparison, KPN charges EUR 32.50 per month for a two-year, Sim-only plan with unlimited calls and SMS and 5 GB per month (including a discount but excluding EUR 20 activation fees). 

We can only speculate what Tele2 will do with new prices. Under the previous Swedish pricing, the price per GB fell by roughly a third as the bundle size increased ten-fold. Under the new pricing in Sweden, the price per GB with a bigger bundle is around a quarter cheaper. 

If we assume the current 2 GB plan remains at EUR 15 per month (EUR 7.50 per GB), then a plan with 20 GB at Tele2 NL should come out at:

  • Around EUR 50.00 (data at EUR 2.50 per GB), or
  • Around EUR 37.50 (data at EUR 1.88 per GB).
We expect to see the first appear soon on the Dutch market, and Tele2 NL will likely save the second for a later date. 


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