European mobile prices edge higher as bundles get bigger

Nieuws Mobiel Europa 31 OCT 2014
European mobile prices edge higher as bundles get bigger

The cost of a mobile plan including a top smartphone showed a general increase in the latest Telecompaper benchmark report on 16 countries in Western Europe. In the latest survey, based on prices advertised in Q3 2014, there were more mobile plans on offer (just over 4,100 from 72 operators) than six months previously (3,300), and in many instances, the prices had gone up slightly for plans including a handset.

Many factors may explain the general increase in prices, such as annual inflation increases or the trend toward lower handset subsidies. Mobile operators are also shifting to more flat-rate pricing, often with unlimited calls and SMS and bigger data bundles, in order to justify higher monthly access fees.

The research shows for instance that over a third of plans now come with 1,000+ or unlimited minutes per month, and nearly half (45%) include unlimited SMS. The share of plans with 2GB of data or more per month increased to 37 percent of the total, from 32 percent in the previous report from Q1 2014. At the same time, the amount of plans available with small bundles of minutes, SMS and/or data, and as such lower prices, is decreasing.

Sixteen countries

The research compares mobile price plans available both with a high-end smartphone and as sim-only, looking at the total cost of ownership. The data covers all the major operators and certain of their sub-brands in Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK.

Overall, the data shows that Austria, Denmark, Finland, France, Norway, Sweden and the United Kingdom are consistently cheap countries for mobile communications compared to other countries in Western Europe. Greece and Portugal on the other hand are relatively expensive for mobile consumers. Belgium, Germany and Italy, as well as Ireland, the Netherlands, Spain and Switzerland continue to display a mixed performance, with prices sometimes cheap or expensive, depending on the type of plan.

SIM-only

For instance, SIM-only plans with a large bundle (1,000+ minutes, 2,000+ megabytes) varied greatly in price (monthly TCO). During the period researched, prices ranged from a median EUR 24 per month in Denmark to EUR 95 per month in Greece. In the Netherlands, the median price for this type of plan was EUR 40, just EUR 1 below the median of the 16 countries.

For SIM-only plans in many cases the median prices had gone down, although not in all the countries. For example, in Q1 2014 the median in Denmark for the above mentioned SIM-only plan stood at EUR 20 and in Greece it came to EUR 92, while in the Netherlands it was EUR 42.

SIM-only median TCO per country for 1000+ minutes and 2GB+

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EU Mobile Benchmark 2014 Q3

This EU Mobile Benchmark report compares and analyses over 4,100 mobile packages across 16 countries European countries (Austria, Belgium, Denmark, Finland, France, Germany, Greece Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and UK). A matrix was built based on ranges of monthly minutes and MBs offered. SMS has been excluded, as the majority of plans already offered (near) unlimited SMS. To account for more than just the headline cost of minutes and megabytes a total cost of ownership (TCO) approach has been used, which amongst others includes promotions and the cost of handsets. All MNOs, second brands where relevant and two MVNOs who acquired spectrum were included. Data was collected during July and August 2014 from the providers' websites. The team has assumed an 'average' consumer who is looking for a post-paid plan with either a handset in three categories or alternatively for a SIM-only plan. The report is accompanied for corporate users by the excel covering all the packages used in the analysis with the following details: name provider, name plan, type of plan, contract duration, which handset included, monthly price, promotional price, duration of promotion, calculated TCO in EUR and EUR PPP, set-up costs, cost of handset, number of minutes, SMS and MBs included. This report edition provides data and analysis of the high-end smartphone and SIM-only choices, while details of all four handset choices are included in the pricing database.