Do Devices Rule?

Thoughts on Carrier Evolution (Feb 2 2012) Marketing , Mobility

1. If casual observation is an accurate indicator, consumers make their mobile purchasing decisions based solely on devices available from any particular mobile service provider.

   This raises the question of whether other service bundle components matter to consumers. The question quite crucial for mobile service providers, globally, for several reasons.

   First, if the device now drives demand for the service, value has shifted within the ecosystem.

   Second, if devices are that important, there are devices a service provider must offer, the Apple iPhone providing the best example so far. But Christiuan Dippon of NER Economic Consultants says the casual observations are not, in fact, quite accurate.

   Dippon’s study suggests that subscribers do consider far more than the mobile phone when selecting a mobile service plan. In fact, subscribers consider most, if not all, of the pertinent aspects of the mobile service bundle, including voice and data allowances and overage charges.
   
   Device prices are significant factors, as are the monthly recurring charges, as you might guess.
   
   The number of monthly voice minutes included in the mobile service plan also is an important demand driver. The amount of monthly data uploads and downloads included in the mobile service plan further drives demand, more being deemed “better.”
   
   Subscribers also consider network download speeds, and higher speeds make a service bundle more attractive.
   
   Devices are important, but so are recurring prices, overage charges and the consumption buckets for data and voice usage. Do devices rule?

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