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Mobile Service Providers Add “Value-Based” Charging Plans

Some 35 percent of 100 mobile service providers are implementing value-based charging strategies such as bill-shock prevention and social networking plans that make applications such as Facebook, MySpace & Twitter zero-rated, according to Allot Communications.

Though it will might not always be possible to offer value-based charging models, especially on fixed-line networks, mobile operators generally can offer personalized service plans that best reflect the unique value of different applications and usage patterns to different types of subscribers. The biggest issues will arise in markets where regulators have put strong “network neutrality” rules into place.

Still, the trend to more use of “value” packaging is likely to accelerate, especially as mobile service providers start to introduce new “group” or “family” plans that allow a single user to share a single data bucket of use among multiple devices, or plans that allow a single account to support multiple devices and users.

Also, “tethering” plans will proliferate as well, and represent a form of “value” packaging. Some mobile service providers also are offering temporary “bandwidth boost” features that allow a user to temporarily boost bandwidth for a 24-hour period, for example.

About 13.5 percent of operators are currently offering ‘true unlimited’ plans. Some
26 percent of operators already have revenue sharing deals of some sort in place, typically with a music streamng service. Cloud music providers, Spotify, Pandora and Rhapsody are among the application providers sharing revenue with service providers.

About 15 percent of operators charge for tethering, mainly in North America and EMEA markets. About 11 percnt of operators offer a “Happy Hour” plan to encourage data usage during off-peak hours.

Allot study

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