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Mobile Operators Abandon Unlimited Mobile Broadband Data Plans

Posted: 16th Jun, 2011 By: MarkJ
pound 3dMarket intelligence firm iSuppli (IHS iSuppli) has predicted that most Mobile Broadband operators will ultimately abandon handset based "unlimited" data usage packages in favour of tiered pricing plans. This will allow them to maximise their revenues from Cloud solutions like Apple's iCloud, Google Music Beta and Amazon Cloud Drive (i.e. services that store your content online rather than locally).

IHS's Senior Director and Principal Analyst, Jagdish Rebello, said:

"Tiered pricing plans deliver multiple advantages as the growth opportunity in the wireless market increasingly shifts away from voice communications and toward broadband data services.

In the short term, tiered pricing provides operators with tremendous flexibility to encourage increased data usage among average mobile broadband data users, while deriving more revenue from power users that engage in greater consumption of network resources.

In the longer term, tiered pricing will allow operators to take advantage of and become relevant players in the new paradigm of cloud storage and cloud computing."

Global mobile data service revenue between 2010 and 2015 is expected to rise at a 9.1% Compound Annual Growth Rate (CAGR), which is more than double the 4.5% expansion of the overall wireless operator business, to hit £209bn (USD337.9 billion) in 2015 (up from £135bn in 2010).

2015 mobile broadband data revenues

Most UK mobile operators abandoned the "unlimited" model, in favour of tiered pricing plans, last year. However, some have chosen not to play ball. Back in July 2010 the then CEO of Three (3) UK, Kevin Russell, said that unlimited data plans were "unclear and unfair" and "one of the dumbest things I've done". Five months later they reversed that position with the launch of their new One Plan and "All-you-can-eat Data" :glee: .

On top of that the UK Advertising Standards Authority (ASA) is also threatening to clamp-down on "unlimited" usage and broadband speed promotions. The ASA is expected to publish their final "guidelines" during the summer, we hope.
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