Lower prices are a persistent concern of executives in any part of the telecom business, as much as lower prices stimulate usage. The issue is how much lower retail prices can go, in any market segment, before sustainability becomes a key issue.
Sprint Corp. Chief Financial Officer Tarek Robbiati thinks U.S. mobile data prices have room to fall further. Noting that U.S. average revenues per user are “very, very high,” Robbiti argued there is room for mobile data prices to fall further. “There is headroom," Robbiati said.
In a perhaps worrying statement, Robbiati noted that "in Hong Kong you can get very, very decent 4G data packages on 4G networks for less than $5, which is extraordinary.
"This is real priced-based competition, we haven't felt it here yet," he said.
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