Europe 5G Operator Proposition Assessment
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5G tariffing approaches include selling 5G with no premium vs. 4G plans, selling 5G as a premium to 4G, selling higher-tier 5G plans to 5G subscribers, and selling 5G experiences and segmented consumer use cases. Within these approaches, European telcos are using specific upselling levers such as offering unlimited data packages, tiering speeds, introducing fair data usage policies and speed throttling, offering zero-rated data options including subscriptions to OTT video services, offering cloud gaming subscriptions and providing enhanced experiences.
The Europe 5G operator proposition assessment report considers the key 5G value propositions and monetization strategies that telecom operators are employing in Europe. This report begins with an analysis of the 5G tariff tiering levers, and the tactics telcos can use to apply these levers such as offering unlimited data, speed throttling, digital content bundling (e.g., OTT video and music), and segmented 5G experience plans (e.g., targeting gamers’ experience and needs). This report then offers three case studies that examine the 5G value propositions from Deutsche Telekom Germany, Elisa Finland, and A1 Slovenia. This report concludes with key findings and recommendations for telecom operators and their stakeholders.
What are the key findings from the Europe 5G operator proposition assessment?
Operators offering 5G unlimited plans, can hit an ARPU-growth ceiling on these plans if not upselling customers to other features and services in parallel. Additional tiering levers can be deployed to increase the upsell & ARPU potential of these plans. One option is to employ speed-tiering, like Elisa Finland, and data caps/fair usage allowances with speed throttling, like A1 Slovenia. Also, to allow more segmentation of the unlimited plan tiers, telcos can consider creating several ascending data consumption thresholds with more reduced speeds after each threshold is reached.
Moreover, telcos can introduce unlimited and non-unlimited plan tiering based on video quality (e.g., HD and UHD), hotspot usage allowance, data sharing allowance/add-ons, and service bundling. This can expand the monetization horizon of unlimited data plans and avoid a race to the bottom. Such features can be combined, in some cases, to maximize the monetization potential of unlimited plans.
Which are the leading 5G operators in Europe?
The leading 5G operators in Europe are Deutsche Telekom Germany, Elisa Finland, and A1 Slovenia.
Deutsche Telekom Germany
At launch, Deutsche Telekom exclusively targeted 5G at the premium postpaid segment, before expanding to lower-tiered postpaid and prepaid customers. At launch, Deutsche Telekom exclusively targeted 5G at the premium postpaid segment, before expanding to lower-tiered postpaid and prepaid customers.
Elisa Finland
Launched in early 2019, Elisa Finland was one of the frontrunners in the 5G market. By Q3 2021, the telco covered significant share of the population in Finland, with reasonable share of smartphones used on its network being 5G devices.
A1 Slovenia
In September 2021, A1 Slovenia launched commercial 5G services in Slovenia. The telco plans to extend 5G coverage to significant share of the population by the end of 2022. At 5G launch, A1 Slovenia offered a grace period where customers can access 5G at no additional costs for several months.
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Market report overview
Leading 5G operators in Europe | Deutsche Telekom Germany, Elisa Finland, and A1 Slovenia |
Scope
- From first appearing in Europe several years ago, 5G has expanded across the majority of countries in the region. With new launches and coverage expansions, 5G operator propositions have also evolved.
- Telcos can bundle 5G packages with several digital services such as OTT video and music, AR/VR, and gaming to demonstrate the benefits of 5G. In such a way, it is easier to communicate to consumers the value proposition 5G brings.
- Telecom operators tend to employ more than one 5G tariff tiering lever, especially, when it comes to unlimited data plans. Telcos can use speed-tiering, fair usage allowances and speed throttling to spur the monetization potential of unlimited packages.
- More advanced bundling and tariffing approaches can be harnessed to increase the upselling potential of higher-tier 5G plans and the demand for 5G. These can include selling tailored on-demand and highly-segmented 5G experiences.
- European telcos can leverage their 5G networks to deliver 5G FWA solutions to rural and underserved areas.
Reasons to Buy
- This Insider report provides an examination of 5G propositions, bundling approaches, and upselling levers currently used by telcos and available to them in the future.
- The report’s objective is to help inform global industry executives’ decision-making process on 5G go-to-market approaches, tariff structures, tariff differentiation levers vs 4G, upselling techniques, and 5G plan tiering’s current and future levers.
- The case studies provide an analysis of three telco consumer 5G value propositions, across eMBB and FWA, looking at the structure of the plans, the pricing differentiation levers, and upselling techniques. The best practices and key takeaways of each case study also illustrate the findings of the report, providing insights into telcos’ 5G tariffs go-to-market and evolution approaches.
- The report is designed for an executive-level audience, helping industry leaders gain knowledge into peer telcos’ 5G propositions in order to effectively craft their own 5G go-to-market approaches, product offerings evolution, and upselling techniques.
Deutsche Telekom
EE
Elisa
O2
Orange
Post Luxembourg
SFR
Three
Vodafone
Table of Contents
Figures
Frequently asked questions
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Which are the leading 5G operators in Europe?
Deutsche Telekom Germany, Elisa Finland, and A1 Slovenia are the leading 5G operators in Europe .
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