KPN will introduce from 01 July new mobile plans. In addition to plans with 100 or 200 units, the Dutch operator will offer ‘All-in-one’ bundles, with unlimited calls, SMS and data, including 4G access. The new plans otherwise vary according to the amount of data and type of handset included. The new structure is aimed at meeting customer demand for a better idea of the total costs when signing a contract, said Jesper Eriksen, head of Consumer Mobile at KPN.
“We want to move to data-centric plans, in such a way that customers are clear from the start what the costs are. That’s why we’re introducing unlimited calls, SMS and mobile internet, where the speed is reduced once the bundle is used up,” Eriksen explained.
He expects demand for mobile internet to only increase with the arrival of 4G networks. A consequence of that is customer concern they may unknowingly exceed their bundle. KPN is scrapping overage charges and instead reducing the speed to 64/32 kbps once the monthly data allowance is used up. This will allow customers to still access messaging and push e-mail.
Handset subsidies
The new subscription prices include the cost of a handset. KPN will still use the categories basic, standard and luxury to determine handset prices. At the end of the contract, the customer will own the phone – again providing more clarity at the start of the contract.
The new plans see KPN abandoning the short-lived handset lease model it introduced in 2012 across all three of its mobile brands. Hi started the new pricing in Maart 2012, Telfort in April and KPN on 30 July. Eriksen said that KPN learned that certain customer groups want to know at the start how much they will pay across the contract, and ownership of the handset is also important to many. KPN, the high-end brand in the group, will stop the handset lease scheme, although customers with an existing contract can continue with the lease.
Telfort will continue with the leasing offer; it recently introduced new phone categories. The company has yet to take a decision on the matter for Hi, and is still evaluating the customer response. “There is a group of customers that want to own the phone from the start, and there is a group that prefers leasing,” Eriksen said. “Of course we have an idea which way it will go, but we’ll see how it goes with KPN and then take a decision.”
Basis Mobiel
The new Basis Mobiel offer comes in two versions. Basis 100 includes 100 minutes, 100 SMS and 100 MB at up to 2.0/0.1 Mbps. Basis 200 comes with 200 units of each and offers a higher speed of 3.6/2.0 Mbps. Credit cannot be carried over.
The cost of the plans depends on the smartphone. With a basic phone they cost EUR 29 and EUR 35 per month, a standard phone raises the price to EUR 32.50 or EUR 37.50, and a luxury phone implies a price of EUR 40 or EUR 45 per month.
Basic phones include the Samsung Galaxy Ace, Galaxy Fame and Sony Xperia E. Standard devices are the Galaxy S Advance, S III Mini and HTC One SV, and luxury smartphones include the Galaxy S4, HTC One and iPhone 5.
Alles-in-één Mobiel
The same smartphone categories are used for the All-in-one (Alles-in-een) plans with unlimited calls and SMS Mobiel. The entry-level (Instap) plan offers 500 MB at up to 25/5 Mbps, the Standard plans comes with 2 GB at 25/5 Mbps and Premium includes 4 GB at up to 50/25 Mbps. Mobile internet outside the bundle is free, but the speed is cut to 64/32 kbps. Customers can buy additional data at EUR 5 per 250 MB.
The prices for the Instap plan are EUR 45.00, 47.50 and 55.00 depending on the type of handset chosen. Standard plan prices are EUR 47.50, 52.50 or 65, and the Premium subscriptions cost EUR 55, 62.50 or 75 per month.
Sim-only and KPN Compleet
KPN will offer the same plans on a Sim-only basis, at prices of EUR 37.50 for Instap, EUR 40 for Standard and EUR 50 for Premium. Customers who also take fixed-line services from KPN will get a number of extras from July. With the basic plans, the amount of credit will be doubled, while only the data is doubled on the more expensive plans. The Plus TV package with 45 channels is also free with the KPN Compleet quad-play offer, and family members can get EUR 10 per month off additional mobile subscriptions (Familievoordeel).
4G
KPN is also looking to differentiate its offer with 4G coverage. The LTE network coverage has now passed 50 percent, and the target is nationwide coverage by mid-2014, if not earlier. The company is also implementing its agreement with FON to open up customer routers for Wi-Fi sharing. Eriksen expects the service to go live late this year.
FON will also offer customers an alternative when roaming, Eriksen noted. KPN is maintaining its current tariffs for roaming, with the 100MB bundle the most attractive, according to the executive. Eriksen welcomes the EC's ambitions in roaming. "For a smaller player on the international market like KPN, it's important to achieve a level playing field in the roaming services market."
