European PoC operators favour USD20 monthly add-on charge
* Most PoC operators currently favour a separate monthly fee for a
push to talk bundle on top of an existing monthly voice plan
* PoC pricing models are divided between pay-per-use models and
monthly bundled flat-rate models, with only four of the operators
surveyed offering both options
* Among operators adopting per-push pricing the clear trend is to
price the service below standard voice call and SMS rates
The pricing models for push to talk emerging amongst PoC operators
outside North America mostly offer the service for a separate monthly fee on top of an existing monthly voice plan, as operators attempt to attract existing business users to the service without cannibalizing existing voice revenues, according to the recently published Insight report from Informa Telecoms & Media, Push to Talk: Early positioning and pricing strategies. Of the 12 operators reviewed in the report, only three, Optus, Telefonica Moviles Mexico and Iusacell, offer
plans bundling normal voice calls and PTT calls together into a single
package.
Some operators fear that bundling push to talk in with normal voice services leads to the risk of push to talk cannibalising normal voice
revenues. "This is particularly true in developing markets where voice
tariffs are still relatively high and PTT could easily become a
low-cost alternative to voice," comments Devine Kofiloto,
Principal Analyst at Informa Telecoms & Media. Indeed it is for
this reason that Orascom plans instead to opt for per-push charging
when it introduces the service in its markets in North Africa
and the Middle East.
Among operators adopting per-push pricing the clear trend is to price the service below standard voice call and SMS rates so as to
encourage uptake. Developed market operator T-Mobile is, however, of
the opinion that a per-push pricing model is unsustainable in the
long term as it risks being perceived as too expensive by consumers.
Whereas operators in markets outside Europe are showing more
commitment to push to talk, offering varied tariff plans uniquely
created for push to talk, the European approach is still
characterised by uncertainty and caution. Only a few European
operators have announced tariffs but most, with the exception of
Orange, are opting for a monthly flat fee averaging around USD20
(eg Eurotel USD 19, T-Mobile Germany USD22).
"The fear of over
promising and under delivering perhaps explains what is holding
operators back," comments Kofiloto. "Push to talk is still in an
embryonic stage and the pricing models and positioning strategies
emerging are likely to be adjusted or altered over time, depending on consumer reaction to the service."
For a map illustrating the commercial push to talk networks
beyond North America - please click below:
http://click.cminteractive.com/?mKJHaYjs=615
About Informa Telcoms & Media
Informa Telecoms & Media is the leading provider of business
intelligence and strategic services to the global telecoms and
media markets.
