Bundling of mobile services to increase revenue per user

The emerging approach of bundled pricing is a powerful technique for driving mobile voice usage and kick-starting much-needed new revenue from mobile data services, according to a new report, Pricing Mobile Services for Success: towards a bundled future, from Analysys.

Despite the advent of 3G networks, many operators are struggling to maintain voice ARPU (Average Revenue Per User) and to grow data services beyond messaging.

The report shows that bundled pricing can be a highly effective way to stimulate revenue growth as it will help mobile operators to offer a defined usage allocation of one or more services for a set fee.

“Affordable bundled pricing has been fundamental to mobile operators in the USA achieving average voice usage that is over five times higher than in Western Europe,” according to report co-author Dr Alastair Brydon.

“Bundled pricing can be even more effective when extended to multiple voice and data services within a bundle.”

The report also shows that bundled pricing can increase the usage of existing services, such as text and picture messaging, and drive take-up of new services, such as music downloads and mobile TV.