Monday, January 15, 2024

Mobile Operators Have, in Many Cases, Been Able to "Raise Prices" for 5G Service

Though many mobile operators seemingly have decided to price 5G access at the same rates as 4G, while others might price packages in ways that represent a 5G price premium, though indirect (bundle 5G with unlimited-usage plans, for example), at least some mobile operators have concluded they must price 5G at a premium. 


Generally speaking, mobile operators who have chosen to do so set 5G prices at a premium of about 20 percent above 4G prices. 


If you think about the way home broadband is priced, it is the same framework. Faster speeds cost more. 


Country

Mobile Service Provider

5G Pricing

4G Pricing

Pricing Difference

Australia

Telstra

5G plans start at AU$65/month

4G plans start at AU$45/month

20% difference

Canada

Bell

5G plans start at CA$75/month

4G plans start at CA$55/month

20% difference

France

Orange

5G plans start at €35/month

4G plans start at €25/month

20% difference

Germany

Telekom

5G plans start at €45/month

4G plans start at €35/month

17% difference

India

Reliance Jio

5G plans start at ₹599/month

4G plans start at ₹399/month

29% difference

Italy

TIM

5G plans start at €25/month

4G plans start at €15/month

40% difference

Japan

NTT Docomo

5G plans start at ¥4,980/month

4G plans start at ¥3,980/month

20% difference

Mexico

Telcel

5G plans start at MX$499/month

4G plans start at MX$399/month

20% difference

New Zealand

Spark

5G plans start at NZ$79/month

4G plans start at NZ$59/month

21% difference

Spain

Movistar

5G plans start at €30/month

4G plans start at €20/month

33% difference

South Korea

SK Telecom

5G plans start at ₩49,800/month

4G plans start at ₩39,800/month

20% difference

United Kingdom

EE

5G plans start at £35/month

4G plans start at £25/month

28% difference

United States

Verizon

5G plans start at US$70/month

4G plans start at US$55/month

20% difference


But there also are indirect ways of pricing 5G at higher levels, such as bundling 5G access only on premium-priced service plans.


Country

Mobile Service Provider

Indirect 5G Price Premium Strategy

Australia

Telstra

High-Tier Bundles: 5G access only available in top-tier bundles with significantly higher costs compared to 4G bundles.

Canada

Rogers

Limited 5G Availability: Lower-tier plans lack 5G access, pushing users to higher-priced plans for 5G.

France

Orange

Uncapped Data with 5G: Unlimited data plans only offered with 5G, making unlimited data significantly more expensive than on 4G.

Germany

Telekom

Speed Tiering: 5G offered across all tiers but only higher tiers include high data allowances comparable to 4G, effectively increasing cost for equivalent data.

India

Reliance Jio

Limited 4G Data: Lower-tier 4G plans have very limited data allowances, pushing users to 5G plans for adequate data, despite similar pricing.

Italy

TIM

Exclusive Features: 5G bundled with exclusive features like cloud storage or streaming subscriptions, justifying higher overall price compared to similar 4G bundles.

Japan

NTT Docomo

Priority Network Access: 5G plans include priority network access and faster speeds, making them more expensive than regular 4G plans with slower speeds.

Mexico

Telcel

Limited 4G Network Reach: Some regions only have 5G coverage, leaving users with no choice but to pay for 5G plans even if they prefer 4G pricing.

New Zealand

Spark

5G Speed Boosts: Limited-time 5G speed boosts offered on higher-priced plans, creating a temporary incentive to switch but eventually leading to higher costs for sustained 5G access.

Spain

Movistar

Entertainment Bundles: 5G bundled with TV and streaming subscriptions in higher-priced packages, potentially increasing costs for users who only need mobile data.

South Korea

SK Telecom

Premium Content Access: 5G plans include exclusive access to premium content or streaming services, making them more expensive than comparable 4G plans.

United Kingdom

EE

Limited High-Speed Data: Lower-tier 4G plans have significantly reduced data speeds, pushing users to 5G plans for comparable speeds, despite similar data allowances.

United States

Verizon

Unlimited Data Only with 5G: Unlimited data plans only available with 5G, significantly increasing the cost of unlimited data compared to 4G options.

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