Spanish operators edge up prices as data allowances show up to 5-fold increase in 2018

News Wireless Spain 6 FEB 2018
Spanish operators edge up prices as data allowances show up to 5-fold increase in 2018
The amount of data included in mobile postpaid plans in Spain has increased up to five-fold in the past year, while prices increased much more slowly, according to an analysis by Telecompaper as part of its upcoming comparison of postpaid prices in Western Europe. Most operators believe adding extra data can justify the slight price increase. Orange kicked off the move in early 2017, and Vodafone and Movistar have since followed, introducing bigger data allowances along with small price increases on some, mainly higher plans. Masmovil, which owns Yoigo, continues to focus on winning market share with lower-priced offers. 

Orange launched in March 2017 its new Go-branded mobile range, replacing its previous animal-named plans. The three largest plans offer a big increase in the amount of data included, for only a slightly higher monthly fee. For example, its most expensive plan Go Top includes 20GB and unlimited calling for EUR 44.95, while the previous Ballena plan came with only 6GB for EUR 41.95. This results in a 7 percent monthly fee increase for more than three times as much data. The second-largest plan went from 3GB for EUR 31.95 to 8GB for only EUR 1 more. Orange’s second brand Amena also increased data on all its plans without changing prices. Its smallest plan gained 1GB, while the largest plan jumped from 7GB to 25GB.

Vodafone Spain also refreshed its offer in the past year. The company stopped offering its most expensive plan Red XL, priced at EUR 65 for 10GB and unlimited calls/ SMS. The Red L plan became its top offer, with 20GB of data instead of the previous 6GB and unlimited calls/minutes for EUR 47 per month, a price increase of EUR 2 compared to Q1 2017. The Red M and Smart S plans also saw a price increase of EUR 2, while the data bundles more than doubled.

Movistar just revamped its mobile-only plans at the end of January 2018, leading mainly to lower monthly fees with much more data (see table below) and one new plan option. The exception is its largest plan, which increased from EUR 45 to EUR 50 but now offers 25GB of data compared to 5GB in Q1 2017.
Table 1: Changes in Movistar's postpaid propositions, Q1 2017 vs Q1 2018
  Old plan name   Old Price  New plan name  New price 
 Vive 2GB including 0 cents per minute +pay setup call   EUR 15  Vive 2GB including 0 cents per minute + pay setup call   EUR 14
 Vive 1.5GB including 200 minutes including setup call   EUR 26  Vive 4GB including 100 minutes including setup call   EUR 22
 Vive 2.5GB including unlimited minutes   EUR 34   Vive 8GB including unlimited minutes   EUR 32
     Vive 15GB including unlimited minutes   EUR 40
 Vive 5GB including unlimited minutes   EUR 45   Vive 25GB including unlimited minutes   EUR 50

Yoigo recently announced a new advertising campaign that aims to distance the operator from the price increases at the other operators. The campaign focuses on the brand’s values of “empathy, honesty, transparency and courage” and a pledge never to increase customer prices. In our annual comparison of prices at Yoigo in Q1 2018, we see only a slight increase in price and more data for its smallest plan (+300 MB for EUR 1.60 more per month), and it added an extra plan with unlimited calls and 5GB. 

Looking further back in Telecompaper’s pricing database (which dates back to 2013), we can see that Yoigo’s flagship plan ‘La SINFIN’, which was launched back in 2015, has grown from 20GB to 25GB with only a 10 percent increase in price. Masmovil, which acquired Yoigo in 2016, seems to focus more on the lower end of the market, providing the most competitive price per GB with various minute bundle options. Currently it offers 16 possible plan combinations, including a top plan of 8GB with unlimited minutes for only EUR 24.90 per month. 

While the other operators are focused on the higher end of the market where prices and data allowances are growing, the smallest player Masmovil is trying to grow its market share with a lower priced offer to serve the mass market. All the operators are looking to capture the growing amount of customers using more data each month, with average monthly usage in Spain now estimated at over 4 GB per customer

For more information on Spanish pricing trends, see Telecompaper's annual report on postpaid plans across 16 Western European countries. Last year's edition is available here, and the new edition will be published at the end of May 2018. The report includes information on monthly prices, allowances, extra fees and promotional prices and provides a Total Cost of Ownership (TCO) to facilitate comparisons within and across countries. Customised data can be broken out at request. 

 


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