Realtime Mobile Pricing

Solutions and Strategies

Publication Date	August 2009
Publisher	Ovum
Product Type	Report
Pages	9
ISBN Number	not applicable
Product Code	OVM00942

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Summary

Realtime (or dynamic) pricing as an approach to offering realtime discounts to customers has massive 'win-win' upsides for both service providers and users in emerging markets. Early implementations in South Africa demonstrate clear evidence of improving usage, ARPU and market share metrics. The lack of vendor choice and the high price of dynamic pricing solutions are currently the only bottlenecks preventing more operators from adopting realtime pricing. As these issues are increasingly addressed over the next year or so, we expect dynamic pricing to become a standard tool in the emerging market operator marketing and technology portfolio. Early adopters stand to gain most.

Content

Executive summary
In a nutshell
Key messages
Dynamic pricing outlined
Clear and tangible benefits drive strong interest from operators
MTN Zone: a DP success story
High cost and limited choice dampening demand
More choice will drive rapid demand in the next few years
Dynamic pricing: overview
Dynamic pricing explained
Dynamic pricing players
Ericsson leading the way
Nokia Siemens Networks charge@once
Why dynamic pricing?
Smoother network peaks
Higher network utilisation
Customer and market share growth at lower marginal cost
Higher customer loyalty
End-user perspective: greater value for money
Dynamic pricing in practice
MTN Zone: a DP success story
Many trials; few public implementations
Future outlook for DP
List of Figures
- Figure 1: Simplified diagram of dynamic pricing solution
- Figure 2: Traffic patterns before and after DP deployment