Tag: Mobile data tariffs

Price Sensitivity and Bill Shock

In my earlier blog, Bill Shock, I recounted the story of a young woman who had been treated to a bill of £27,000 after losing her phone overnight.  This prompted me to look at the relationship between price and usage.

Data on cost and usage of international roaming traffic, especially data traffic, is not widely available, but that for domestic traffic is more readily available. Prices and usage for domestic mobile calls vary considerably between countries, which permit comparison of any relationships between the two. Continue reading “Price Sensitivity and Bill Shock”

Mobile Data Rates – The end of Flat Rate Charging?

O2 has signalled the end of flat rate data charging in Europe, following AT&T’s recent announcement of the same policy in the US. The rapid growth in mobile data traffic and the high cost of building new network infrastructure make the end of flat rate charging inevitable. It was really a question of who would move first. The alternative, which I still expect to happen, but perhaps to a lesser extent that I previously thought would be more network mergers on the lines of the Uk Orange – T-Mobile merger. Expect others to follow O2’s example.