Variable daily data tariffs might be one way to encourage more consumers on to the mobile internet. Or would they just add to the confusion?
Ever since the very start of the mobile media age, observers have quoted data tariffs as perhaps the single biggest hurdle to progress.
Happily, this particular barrier is crumbling fast. Last month, Virgin Mobile UK introduced a 30p per day rate to attract more prepaid users to the mobile internet, undercutting 3 UK’s daily fee of 50p.
It’s good. But is it enough? The limitations of the apporach have led many to push for variable daily rates. Off-peak pricing could make data even cheaper to buy. Low charges at weekends, for example, could encourage users to search for restaurants and movies on the move.
It sounds appealing. But variable data pricing risks re-introducing the complexity recently removed by the advent of flat-rate plans and bundled data/SMS/voice tariffs.
To introduce a time-based price point would, in effect, mark a return to those dark data days of yester-year when people had to be vigilent about when and where they browsed at all times.
Operators reason that they remain focused on driving consumers onto flat-rate data plans.
Therefore they are unlikely to even consider a variable data pricing model in the near to medium-term. But not everyone wants flat-rate. So what about those consumers that want some other solution? It is conceivable that operators will adopt a two-phase data pricing strategy.
irstly, looking to snare those data-hungry users willing to pay the flat-rate fee, and then following this up – it’s been suggested from 2010 onwards, with the introduction of capped off-peak tariffs to hook the less frequent consumers of data.
All this assumes that there is some pent-up demand among consumers for variable data pricing. Consumers have accepted a flat-rate package from their fixed-line broadband provider and get the cheapest price by shopping around from the most competitive provider. Why should mobile be any different?
Why does Blyk target 16-24 year olds? It’s because they are cash-poor and time-rich. If you apply Blyk’s mantra, then today’s cash-poor, time-rich are tomorrow’s time-poor, cash-rich – and they’re being primed by the brands from an early age.
On this basis, the existing mobile data pricing methodology is not necessarily right for the youthful demographic – a demographic that will potentially be tomorrow’s heavy user of mobile data. So why not introduce cut-price mobile data, targeting different demographic groups to encourage consumption? Surely that’s not too confusing.
Perhaps the mobile industry risks belittling the mobile consumer? After all, these same consumers have been able to grasp the concept of peak and off-peak rates on the train, for example.
And to throw in additional complexity, travel companies also had the audacity to offer discounted rates for the young and old. Consumers understand the concept of saving money and that is one variable that isn’t for changing.
Is it time to re-evaluate the mobile data pricing structure to encourage mass adoption? I think it might be.
Nick Lane is Chief Researcher at Direct2 Mobile, which offers mobile content consultancy, and our own ME Research service. You can contact Nick at meresearch@intentmedia.co.uk.
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