Operators need to monetize 5G. But if consumers are to be charged a premium, 5G has to offer them something tangibly more for their money. So far, early 5G launches have failed to overly tantalize consumers with anything shiny and new.
- April 2019 was a busy month for the 5G pricing story. Five operators – Verizon in the US, Swisscom, and all three Korean telcos – launched commercial services.
- The 5G services offer a faster speed: Verizon advertises a typical download speed of 450Mbps; Swisscom launched speed tiers of 50Mbps, 100Mbps, and up to 1Gbps for 5G.
- SK Telecom in Korea differentiated 5G plans not on speed but on other factors such as virtual reality (VR), augmented reality (AR), ultra-high definition (UHD), VIP loyalty programs, premium content, and multilines. Swisscom also differentiates its 5G plans on more than just speed (e.g., roaming data buckets, secondary lines).
Features and Benefits
- Unpacks the 5G plans that have come market so far, concluding that more innovation is required to convince consumers to pay a decent premium for 5G.
- Advises operators on how to price 5G, but also how not to do it.
Key questions answered
- What differentiators have emerged in new 5G plans?
- How should telcos price for 5G?
Table of contents
Download 1: Consumer 5G Pricing: The Quest for Monetization Falls Short