Triple-play, triple the tariff between markets

London, 15 December 2014- Quantum-Web analysis reveals wide pricing variations in triple-play fibre offerings from incumbents providers across leading markets.

With caveats around precise comparability of packages analysed and clear acknowledgement of each market’s differing dynamics, it is nonetheless interesting to note that tariffs are as much as four times higher in US compared to South Korea (Figure 1).

Figure 1. Triple Play Tariffs Excluding VAT, Q4 2014

Tariffs PR 15 Dec2014

Market maturity plays a role.  South Korea has been driving towards super-fast broadband for a number of years now, which means that network investments are more likely to be amortized, thereby relieving pressure to achieve margins from tariffing.  Also, South Korea’s relatively small geographic size and higher degree of population urbanization anyway offer advantages in terms of investment and network reach.

And so too does the competitive environment, specifically intensity.  Which should be seen not just in terms of absolute numbers of competitors, but also as a function of the raw hunger for success that challengers bring.  Free (France) is a prime example with its relentless price aggression, which has forced France Telecom to respond and in turn offer some of the most price-competitive tariff packages from an incumbent in one of Europe’s main markets.

 

Note

The analysis is based on mid-range triple-play FTTx packages:

  • AT&T (US), U-verse Triple Play
  • KT (S Korea), Internet Light and Olleh TV Skylife Economy and Internet Phone
  • BT (UK), TV Entertainment and Unlimited BT Infinity 1 + Weekend Calls
  • Deutsche Telekom (Germany), Magenta Home M
  • Orange (France), Open Mini Fibre
  • Telecom Italia (Italy), Tuttofibra

Quantum Web’s extensive portfolio of analysis also includes detailed information for both wireless and wireline broadband tariffs of 541 major operators in 138 countries.

The tariffs are analysed according to the following parameters:
• Download and upload speed
• Recurring and non recurring costs
• Throttling or overage details
• Type of device
• Bundling characteristics

There is a comparison of broadband pricing strategies for each operator in the tariffs monitoring service on the basis of the following perspectives:
• Fixed broadband tariffs by speed
• Fixed broadband tariffs analysis by access technology
• Fixed broadband tariffs analysis for stand-alone vs. bundled services
• Wireless broadband tariffs analysis of 2G, 3G and 4G
• Wireless broadband tariffs analysis of 2G, 3G and 4G cost per GB