Making the case for fairness

We hear about tiered data pricing all the time. It is, we are told, the only escape route for operators facing the data revenue gap. Operators have to start charging realistically, we are told. But we are also told that operators could limit the negative effect this might have on users if they can convey these new tiered pricing structures in a way that is relevant and personal to the user.

One theory that has been proposed has been around fairness. What if caps, limits and tiered pricing based on quality of service were explained in terms of fairness. Would users react better to that than just a blunt cap?

So we thought it would be interesting to test these thoughts with some real consumers. To do that, we enlisted the help, for which we are very grateful, of Ryan Garner, Research Director at GfK NOP Technology. Garner asked similar questions of a GfK sample of 1,000 representative mobile users.

What he found was perhaps slightly contradictory, and perhaps not all that good news for those advocating the tiered, class of service-based data pricing approach.

When GfK said, “Mobile data usage should be charged on a sliding scale so you are charged depending on how much you use” only 37% agreed or strongly agreed. Similarly, only 27% thought it a good idea that network operators would offer guaranteed service levels for mobile data usage at peak times for customers who are willing to pay an additional monthly fee. And only 30% agreed with the counter to that – that operators would offer discounted rates on mobile data tariffs to those who are happy with a limited service at peak times of the day

On the other hand, there was broad agreement that network operators should work out a fairer way of charging for mobile data usage so that the majority of users do not end up subsidising the minority of heavy mobile data users. 66% of all users, and 80% of iPhone users incidentally, agreed with this.

So what is fair? Only 34% of our sample thought caps were fair. But as we’ve seen, they’re not keen on QoS based tiered pricing either.

In other words, people think fairness is a good idea – but they’re not sure how to get there yet. Pretty much a reflection of the industry itself, then.

Keith Dyer
Edtor
Mobile Europe

 

http://www.mobileeurope.co.uk/news/news-anaylsis/8067-the-fairness-principle

Next generation microwave solutions for the delivery of LTE https://www1.gotomeeting.com/register/850992737

http://www.mobileeurope.co.uk/news/press-wire/8066-intel-to-acquire-infineons-wireless-solutions-business

Stand by your RAN https://www1.gotomeeting.com/register/709582521

http://www.mobileeurope.co.uk/news/press-wire/8064-gsa-reports-growing-momentum-as-lte-network-commitments-move-past-100