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« Office Beats Mobile TV - But Only Just | Main | 3 Signs Canon for World Cup »

June 26, 2006

Mobile Broadband Pricing Variations Highlighted

The launch of 3G mobile broadband data cards for laptop users by both Vodafone and T-Mobile last week has highlighted the startling differences in mobile broadband pricing, according to Stefan Zehle, CEO of Coleago Consulting.
The introduction of mobile broadband services is enabled by HSDPA technology in 3G mobile networks, that enables laptop uses to access the Internet on the move at speeds of up to 1.8 Mbit/s, similar to ADSL and cable modem broadband services. 
As Zehle points out, Vodafone UK’s 'unlimited' offer has a monthly price tag of £45 while T-Mobile only charges £17. 
“However” he says, “both services are not really unlimited, because they are subject to a fair usage policy. In the case of Vodafone, fair usage amounts to 1 Gbyte per month, but it is 2 Gbytes for T-Mobile. In addition, T-Mobile includes free usage of their wi-fi hotspots. A quick calculation shows that the per-Mb price with Vodafone works out at £0.045, whereas T-Mobile users would only pay £ 0.0085 per Mb.”
Looking further afield, Zehle has identified even greater discrepancies.
“Fair usage with Vodafone Germany means 5 Gbytes and not 1 Gbyte as in the UK, and the monthly charge is €42.50 (£29.25) compared to £45 in the UK” he says. “This means that while the monthly fees are not that different, a German laptop user pays only £0.0058 per Mb, whereas a UK user is being charged £0.045 per Mb - almost 8 times more.”
For T-Mobile Germany fair usage also means 5 Gbytes, and the monthly fee amounts to £34.37, so the UK per-Mb price of £0.0085 is similar to the price of £0.0069 in Germany.
Having studied mobile broadband pricing in different European countries, Zehle says that prices in the Netherlands are among the lowest in Europe, while mobile data prices in Austria, Spain and Switzerland are comparable or slightly higher than prices in Germany. 
“In time prices in the UK will converge towards the lower price points” he concludes, “particularly once O2 and Orange launch their HSDPA mobile broadband offer.”

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» UK mobile data customers paying too much from SMS Text News
Mobile Marketing Magazine carries a fiscally stimulating report by Coleago Consulting, showing the price differences for mobile data customers in the UK and in Germany. Basically, UK people pay more. :D The launch of 3G mobile broadband data cards for [Read More]

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