GB Price Benchmark_June2014

1Tariff Plans Benchmarking – 1H2014

Voice and MBB Services

Tariff Plans Benchmarking

Europe and US

First Half 2014, 2nd EditionData updated to July 2014

Arthur D. Little

Via Sardegna 40

00187 Romewww.adlittle.com


Contact:

Vincenzo Basile

Principal TIME practice

+39 06 688821

[email protected]

Arthur D.Little

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Copyright © Arthur D. Little 2012. All rights reserved.

Authors:

Vincenzo Basile

S. Equity Principal TIME practice

Daniele Spera

S. Manager TIME practice

Marco Torino

Business Analyst TIME practice

Jacopo Pertile

Research Analyst TIME practice

Contacts & Authors


Agenda

Tariff Plans Benchmarking for Voice and Mobile Broadband Services: Europe and US

1 Context & Methodology

2 Executive Summary

3 Tariff Benchmarking per Country


Arthur D. Little presents the 2nd Edition of MNOs tariff plan benchmarking study

Situation

Questions

Limitation of the

analysis

1 Overview – Context

The benchmark analysis was executed considering a set of comparable Voice and Data

tariff plans (Unlimited Voice/Sms, no device subsidies, consumer segment)

The scope of the analysis is only referred to some comparable countries (US and W.

Europe)

The analysis considers a snapshot at June’14, tracing trends back to Dec.’13

What is the current offer for 3G vs. LTE? Is there any specific trend?

Is there a premium price to pay for LTE?

Are there differentiated plans in terms of offered services?

Is there a common coherent price strategy between MNOs for each analyzed country?

Arthur D. Little carried out this 2nd Edition desk analysis study to evaluate and

benchmark the trend and the “state of the art” for LTE tariff plan landscape for Data and

Voice commercial offer


The turning key to mobile revenues is to understand what the modern customer needs

1 Data and speed as major customer needs

Global consumer preference

The telecom industry is facing strong challenges that directly impact profitability and put

revenue growth as a central element of the operator strategy

1) Report: The state of the global mobile consumer (2013) 2) Salesforce: 2014 Behavior mobile report 3) Flash Networks Report 2014 5) BofA Merrill Lynch

Global Wireless Matrix-Arthur D. Little Elaboration and estimates 4) CAGR 2011-2013 6) Mobility Report Ericsson, 2013

Latest &

Greatest (1)

Network

Quality (3)

84% of consumers

believe that

operators are

responsible for

streaming stalls

58%of respondents think

speed is a

deciding factor in

choosing an LTE

network

59%of respondents

indicate a desire to

upgrade to LTE in

the next 12 months

32$ blnloss of SMS revenue

in 2013

because of Instant

Messaging

Global Average Mobile User

592456

312Data

MB/month(6)

318317314Voice

min./month(5)

202322ARPU

€/month(5)

+38%

+1%

-5%

CAGR42011 2012 2013

89%of respondents say

they prefer to go

online through a

mobile device

3.3h per day spending

in average on

smartphone

This is

mobile(2)


Voice consumption decreasing trend is recovering in 2013, while ARPU continues to fall

except from Sweden

Source: BofA Merrill Lynch Global Wireless Matrix; Arthur D. Little Elaboration – Note: Ireland’s data not available, Netherlands is not in scope of the benchmarking

analysis

= CAGR 2010-2013

Voice min./month ARPU€/month

AUSTRIA

169176180188

USA

934929912

807

FRANCE

+3,7%-3,5%+1,0%

129

+5,0%

240

GERMANY

136

229233222 233 233212

DENMARK

127 130

209

+2,3%

UK

-0,4%

186

SWEDEN

261

194 187

242

200+1,5% 241

155156

SPAIN

162154154

241

NETHERLANDS

154156160148 157179

200

ITALY

+10,6% -2,4%+2,7%

2010 2011 20132012

36

-4,6%

-11,4%-10,2%

-12,0%

-1,2%

GERMANY

13141515

FRANCE

2227

29

17

USA

15

24

17

AUSTRIA

19

2521 22

31

403638

DENMARK

-8,6%

-4,7%+5,9%-8,8%

UK

1922

1820

22 2322

SWEDEN

232424

19

SPAIN

24

-12,3%

NETHERLANDS

25

293132

ITALY

1316

1819

2011 201320122010

…

1 Tariff Plans Benchmarking: Analyzed Countries


A global research identified social mobile app using by customers and their growth between

Q2 2013 and Q4 2014(1)

1 Top 10 App for Smartphone users

(1)Source: Global Web Index (2)Source: Mobility Report Ericsson 2013 (3)Source: Gartner

By the end of this year there will be 1,75 billion of smartphone in the world(3):

78% Android, 16% Apple’s iOS, and 3% Windows Phone

68%

8%8%

Line

10%

8%

WeChat

14%

3%

Instagram

21%

18%

Skype

32%33%

WhatsApp

36%

29%

37%36%

Google

+

37%

35%

Youtube

59%57%

69% Q4 2013Q2 2013

1,9

1,7

1,3

1,0

0,8

0,6

0,5

0,3

2018

+30%

2017201620152014201320122011

Gb per

month

CAGR

+30%

Top 10 App usage of social app Average mobile data traffic per user per month(2)


Arthur D. Little uses a proven methodology to analyze the tariff landscape in order to

benchmark Data and Voice Tariff plans

We executed the benchmark analysis in 3 macro phases

Identify relevant

Markets and MNOs

Identify comparable

Tariff plans

Analysis of Tariff plans

1

2

3

• Markets in scope: 10 countries (US and W. Europe)

• Operators in scope: 38 MNOs

• Comparable tariff plans were select according to the following criteria:

Smartphones (unlimited voice / sms, no device included, offered GBs*, GB allowances

and other value added services): 144 tariff plans

Data (no dongle and offered GBs*, GB allowances and other value added services):

165 tariff plans

• Tariff plans were compared to identify both for Smartphone and Data selected plans:

− Analysis of 3G vs. LTE offer and premium price for LTE

− Analysis of other offered services

− Analysis of GB price consistency among MNOs for each country

1 Methodology – Overview

*Scope of the analysis include plans with data allowance > 500 MB per month


Agenda



2 Executive Summary



Services as “multi SIM” or “value added contents” remain EU mainstream unexplored, as MNOs

seem more price-war oriented

2 Executive Summary

LTE introduction seems not to have generated in customers the perception of higher value services:

– average LTE plans prices are generally decreasing from Dec.’13 to Jun.’14 (Vodafone in Spain and Germany, Telia in Sweden, SFR in France)

– notwithstanding, some MNOs are going against the tide as they are shrinking data allowance and increasing prices (3 in UK and Sweden, T-Mobile in Sweden)

Innovative services offer is low; players increasingly try to seek and retain customers by leveraging competitive prices. No new services have been reported with respect to those traced in the previous Dec.’13 analysis:

– Shared data plans, which are still relatively rare in Europe (marketed by TeliaSonera, EE and UK O2)

– Refresh plan, get the latest phone whenever you want; the tariff splits the cost of a device and airtime into separate contracts (O2)

– "Natel infinity" plans, tariffs based only on speed and not data/voice volumes (Swisscom, Austrian operators)

– Entertainment contents (e.g. TV, Spotify)

– “Delight” offering to enhance value of their offering (e.g. Priority tickets, 5 Stars CRM Care, Discounts)

– MyTariff, enabling tariff customization according to customers need of Data, SMS, Voice and additional services (e.g. Claro)

Main considerations on LTE Offer ADL Benchmark


*Sources: OECD/Big Mac index (01/2014)

**Sources: ADL Analysis, Bank of America Merrill Linch

Sample: Austria, Denmark, France, Germany, Ireland, Italy, Netherland, Spain, Sweden, USA, UK

Top 2 players market share BigMac Index: price per country

Penetration Rate**

2 Tariff Plans Benchmarking: Analyzed Countries

Countries in the benchmark have been chosen for comparable macro economical and mobile markets indicators

65% 150%3.8€

63% 123%3,4€

140%62%3.7€

3.4€63% 105%

68% 110%3.8€

74% 112%3.4€

3.5€67% 114%

71% 150%4.6€

64%111%3.7€

61% 150%3.8€


2 Average GB Price - Country Comparison

DATA PLANS: the average price of LTE in comparable tariffs for each country and data

allowance segment has been positioned in the chart

Euro/

GB

Note:

Each flag is the result of the average price of the tariff or the single observation in case of just one tariff in the range (in this chart the segment >10 GB include plans only up to 30 GB)

Ireland not included in the analysis because tariffs not comparable (dongle included in the offer)

Avg GB

per

segment

<= 2 GB 2-5 GB 5-10 GB > 10 GB

R² = 0,8714

R² = 0,8745

0 €

2 €

4 €

6 €

8 €

10 €

12 €

14 €

16 €

18 €

20 €

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25



Euro/

GB

SMARTPHONE PLANS: the average price of LTE in comparable tariffs for each country and

data allowance segment has been positioned in the chart

Note:

Each flag is the result of the average price of the tariff or the single observation in case of just one tariff in the range (in this chart the segment >10 GB include plans only up to 30 GB)

Avg GB

per

segment

R² = 0,8038

R² = 0,8321

0 €

5 €

10 €

15 €

20 €

25 €

30 €

35 €

40 €

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

<= 2 GB 2-5 GB 5-10 GB > 10 GB


Data Smart. Data Smart. Data Smart. Data Smart. Data Smart. Data Smart. Data Smart. Data Smart. Data Smart. Data Smart.

0% -25% -8% -11% -33% -1% -4% -17% NA NA NA -13% NA 0% +94% +6% -5% NA +16% -28%

+23% NA +13% -9% -19% -19% -12% -10% -25% -15% NA NA +17% 0% -12% +19% -1% -39% -22% +20%

0% NA -24% -2% -5% +3% -4% -1% -40% -34% NA NA +10% 0% -35% -1% 0% NA -7% +20%

-16% NA +25% NA NA NA -17% -1% +45% +57% -8% NA +15% NA +17% +2% NA NA +4% +32%


Percentage LTE GB price variation shows that not all countries follow the same price

arrangements for both data and smartphone plans

<= 2

GB

Plans

2-5 GB

Plans

5-10

GB

Plans

> 10

GB

Plans

% LTE Euro/GB Variation 2H13 - 1H14



Average GB Price per country and operator: Data Plans (1/2)

Euro/GB <= 2 GB Plans 2-5 GB Plans 5-10 GB Plans > 10 GB Plans

7,50

5,00

3,00

7,50

4,00 Average

5,00

4,00

6,63

3,00

2,67

2,33

4,24

2,92 Average

3,00

2,86

1,50

3,00

2,18 Average

2,33

0,83

0,78

1,33

0,78 Average

12,51

12,51

8,13

10,94

9,38

11,46

10,00 Average

6,25

6,25

6,25

6,25

Average

3,75

1,88

2,81

Average

1,58

1,58

Average

5,83

8,99

12,99

11,22

11,11

5,83 Average

3,00

4,50

7,33

5,39

5,74

3,00 Average

4,12

4,58

4,35

Average

Average

7,34

12,85

7,35

10,10

Average

7,35

8,57

7,35

4,65

6,75

Average

6,12

5,88

5,07

5,53

Average

3,79

4,67

4,09

Average

7,99

7,99

Average

6,33

3,00

4,66

Average

2,48

2,48

Average

3,25

2,08

1,40

2,03

Average



Average GB Price per country and operator: Data Plans (2/2)


4,00

4,00 Average

2,58

2,58

Average

1,99

1,50

1,30

1,64

1,50 Average

1,58

1,21

1,40

Average

10,75

10,75

Average

5,40

3,58

3,24

2,58

4,07

2,58 Average

4,06

2,16

3,11

Average

1,32

3,61

1,29

1,14

1,02

1,51

1,02 Average

7,24

7,24

Average

3,45

-

3,45 Average

2,50

2,00

2,50

2,00 Average

0,84

1,58

1,08

1,02

1,15

1,08 Average

12,10

10,89

11,00

9,17

10,79

Average

7,66

7,80

7,75

Average

9,20

4,24

4,20

5,88

Average

Average

13,27

13,27

9,25

11,26

13,27 Average

5,76

3,73

2,65

2,65

3,70

Average

2,67

1,73

2,20

Average

1,98

0,61

0,43

0,95

Average


Average

7,19

8,34

9,30

5,63

7,95

Average

4,95

5,70

5,20

Average

20,00

18,00

43,32

42,37

38,63

20,00 Average

9,00

14,39

11,70

Average

7,20

13,33

10,27

Average

6,67

6,67

Average

16,53

23,87

36,73

23,50

Average

12,85

13,77

12,49

13,07

Average

8,57

8,47

8,51

Average

5,68

5,84

5,78

Average

Average

9,33

7,26

6,66

10,00

8,22

6,66 Average

7,50

5,12

5,00

6,28

Average

6,98

3,75

5,90

Average

23,76

26,26

25,01

Average

16,33

13,75

15,04

Average

3,57

3,57

Average

Average

22,50

21,00

12,75

10,00

12,75

19,10 Average


Average GB Price per country and operator: Smartphone Plans (1/2)



23,99

13,97

17,31

Average

9,35

5,33

5,33

4,80

6,20

Average

5,35

2,67

4,01

Average

2,00

1,27

2,00

1,64

Average

28,33

15,48

16,00

28,83

23,50

Average

7,99

9,75

9,75

9,16

Average

8,33

8,33

Average

Average

3,02

3,88

3,88

4,02

3,70

Average

6,32

7,22

7,22

6,19

6,74

Average

10,82

10,82

Average

27,04

16,24

16,24

16,24

18,94

Average

34,90

14,50

12,50

34,90

13,50 Average

12,97

9,75

8,75

12,97

9,25 Average

8,17

9,17

7,50

9,17

7,83 Average

Average

30,00

23,75

23,75

25,83

23,75 Average

Average

2,33

2,33

Average

Average


Average GB Price per country and operator: Smartphone Plans (2/2)



LTE BENCHMARK: Data Plans pricing strategies (Price per GB vs country average)

2 Average GB Price - Main Companies Comparison

<= 2 GB

Plans

2-5 GB

Plans

5-10 GB

Plans

> 10 GB

Plans

O2 Eplus Movistar O2Three Three O2 Three Three Three TMobile TMobile EE TMobile

Three Group confirm greater coherence globally as price leader

-0,37

1,89

0,21

-0,47

0

-2,01

0 0

-2,08

1,480,12

1,04

-2,75

-1,48

0,73

-2,12

1,31 1,04

0,23 0 0,451,59

2,390,05

0

-0,78 -0,94-1,70-1,05

-1,58 -0,84

1,88

0,17 0,06

-0,35

0

-2,10-2,10

0,45

-1,24

0

0

-1,67-0,15

0,23

-1,68

0,94

-0,63 -0,47-0,94

-0,20 -0,09

0,15

-0,29

-0,35-0,46

0,09

3,30

-0,23

3,32

0,25 0,75

0,32 1,00

-0,22 -0,75 -0,54

0

-0,52

-0,13

-0,50 -0,37

0 0 0

-0,18

0 0,59

Dec’13

Jun’13


LTE BENCHMARK: Smartphone Plans pricing strategies (Price per GB vs country average)

2 Average GB Price - Main Companies Comparison

<= 2 GB

Plans

2-5 GB

Plans

5-10 GB

Plans

> 10 GB

Plans

Three Group confirm greater coherence globally as price leader

11,07

2,87 4,894,70

-2,08-7,50

1,25 3,45

-2,98

3,75

13,22

-21,43

-0,54

2,98

-20,63

4,84

-1,25

5,53

0

-1,29

0,59 1,35

-0,36

-4,68-1,41

-2,32

-5,47

-1,38-2,70

0,39

0

-0,42

3,07

0 0,50

-0,67

-3,48

-1,34

0

-0,55

00,79

0 0,05

-3,07

-0,25

-0,03

0

-0,84

0 00,37 0,320,03

Dec’13

Jun’13

-2,70 -6,74-3,34

0

-2,70

-0,07

0,69

3,212,70

-0,76 -0,59

O2 Eplus Movistar O2Three Three O2 Three Three Three TMobile TMobile EE TMobile


Agenda



2 Executive Summary



3.0 Key

Key

The following slides show competitors positioning in terms of data allowance, tariff

price and price per GB

Observations:

Actual LTE Tariff

Actual 3G Tariff

Dec’13 Tariffs no

longer on the market Call Out

Analysis Elements:

Tariff Shifts

Additional Information

Note: to facilitate graphs reading, each operator’s color code have

been used for all the elements

In both «Plans distribution by Price and GB included” and “Plans

distribution by Price per GB and GB included” scatterplots there are

two trend lines (of current and Dec’13 analysis) :

• Both regressions curves are exponential in order to

ensure better data interpolation

• For each curve, R-squared is indicated

Understanding Country’s graphs analysis details


R² = 0,5662R² = 0,4337

0 €

5 €

10 €

15 €

20 €

25 €

30 €

35 €

0 5 10 15 20 25 30

H3G Tim Vodafone Wind

DATA PLANS: Strategy, prices and GB included in the offers analysis

3.1 Italy - Data Plans

Plans distribution by Price and GB included

Str

ate

gy o

utl

ine

Focus on Premium and Customer base

retention/ increase based on:

4G/3G premium strategy (above market

average tariffs)

Same price, more GB for Telecom clients

Cross Selling by offering Voice SIM (with

5€ traffic)

Tim Vision contents: Sports and

Entertainment streaming (free for top tariff)

Cloud storage

Simple (2 tariffs and 1 summer limited

promotion) and Premium offer based on:

4G premium offers (above market average)

Summer Special promotion: for 3 months

3GB on LTE at just 19,9 € (while are

available 7 GB on 3G for the same price)

Entertainment products included ( such as

Vodafone calcio for 1 year)

Internet Services like Rete Sicura

(antivirus, malware and phishing, etc)

Price leadership strategy based on: More GB for price offers (above market

average tariffs) GB allowance also per day(1or 0,5 GB) 4G at no premium (1 € option per month

for LTE) Entertainment products: Grande Cinema 3

(2 movies’ tickets paying just 1) Abroad Data: navigation at same national

tariff (+ connection fee) in selected abroad countries (Sister companies’ countries)

Simple (2 tariffs and 1 summer limited

promotion) and competitive offers strategy

based on:

Summer Special promotion: 1GB at just 3

€ for 2 months (substituting “Internet no

stop” at 5 €)

Price: leadership offers in its data allowance

ranges

No additional services (No frills)

Plan Price

Market share (as % of customers, excluding MVNO)*

GB

No Dongle included

(no retention period)

65% 150%3.8€

Sample: 3 ITA, Vodafone, TIM, Wind*Source: Merrill Lynch Global Wireless Matrix

TIM: Only LTE for top

portfolio tariff which is

currently 10GB/m instead

of 15GB (Dec’13)

Wind/ Vodafone:

Summer offers for limited

period (respectively 2/3

months)

21 € between Vodafone

LTE and H3G

(same GB allowance)

3ITA: Tre Dati Plus - 30 GB/m

(1GB/day) per 20 €/m (including

1 €/m for LTE)3ITA: Super Internet monthly

option 3GB per 5 € (+1 € LTE)

3ITA: Web Senza Limiti - 15 GB/m (0,5

GB/day) per 15 €/m (including 1 €/m for

LTE)

3GLTEDec’13Jun’14

Italy market

«Only data» offers appear fairly static

Players divided in two main categories:

- Vodafone & TIM (Premium price providers)

- H3G & Wind (Price leaders)

‘12

34% 34%

‘13 ‘12

32% 31%

‘13 ‘12

10% 11%

‘13 ‘12

31% 34%

‘13

3ITA: Weblight – 3GB/m (

0,1GB/day) per 9 € (+1 € LTE)

Vodafone 4G

Vodafone Fly

Wind Mega

Unlimited

TIM 4G

Monthly

TIM Internet

Large 42.2

TIM Internet

start


R² = 0,6083

R² = 0,5751

0 €

1 €

2 €

3 €

4 €

5 €

6 €

7 €

8 €

0 5 10 15 20 25 30


21

3

3

2 4

5

3 3

4

Tim Vodafone Wind H3G

<= 2 GB Plans 5-10 GB Plans > 10 GB Plans2-5 GB Plans

Plans distribution by Price per GB and GB included Analyzed Plans

€/GB

GB

DATA PLANS: Price per GB analysis

3.1 Italy - Data Plans

Sample: 3 ITA, Vodafone, TIM, Wind*Source: Merrill Lynch Global Wireless MatrixNote(1): The number consider only LTE converted tariffs

LTE

3G

Tim & Vodafone :

LTE at premium price

Wind/ Vodafone

Summer Promo:

New tariffs for a limited

subscribable period/lenght

Eu

ro/G

B

3G

LTE

Dec’13

Jun’14

(1)

2H13 1H14- 4G 2,3 - 3G - 4G 2,3 2,33 - 3G - 4G - 3G - 4G 0,8 0,83 - 3G 0,8 0,78 - 4G 1,6 1,33 - 3G 0,8 0,78

Operator

Average

2H13 1H14- 4G 3,0 3,00 - 3G 2,5 - 4G - 3G 2,9 2,86 - 4G - 3G 1,5 1,50 - 4G - 3G - 4G 3,0 3,00 - 3G 2,3 2,18

Average

Operator2H13 1H14- 4G 5,0 5,00 - 3G 4,0 4,00 - 4G 6,63 - 3G - 4G - 3G 3,0 3,00 - 4G 2,7 2,67 - 3G 2,3 2,33 - 4G 3,4 4,24 - 3G 2,9 2,92

Average

Operator2H13 1H14- 4G 7,5 7,50 - 3G 5,0 5,00 - 4G - 3G - 4G - 3G 5,0 3,00 - 4G - 3G - 4G 7,5 7,50 - 3G 5,0 4,00

Average

Operator

65% 150%3.8€


R² = 0,0412R² = 0,1555

0 €

10 €

20 €

30 €

40 €

50 €

60 €

0 1 2 3 4 5 6 7 8

Vodafone Tim H3G Wind

SMARTPHONE PLANS with Unlimited Voice and Device not Included: Strategy, prices and GB

included in the offers analysis

3.1 Italy - Smartphone PlansS

trate

gy o

utl

ine

• Premium price strategy with new plan

unlimited voice and SMS with 3 GB

included and additional services:

• Cubogiochi (2 Games per monht)

• Cloud: 10GB internet free storage (1

year)

• Minutes towards and from all Europe

and USA

Premium offers (12 month retention; 24/30

month with device + related costs) with:

Internet Services

– Rete Sicura (antivirus, malware, etc)

– Cloud: 50GB free storage space (1 year)

Customer Services

– Relax: Priority customer care service

– Relax Family: +20 € unlimited minutes

and 1GB to another Vodafone number

Abroad UE calls (3 € per day in Europe)

Value for price strategy (12 month retention ) based on: Family Program: 10 € discount on

additional prepaid with unlimited voice and 3GB

House : 3GB Webcube wifi (per3 € /m) Entertainment products Grande Cinema

3 (2 x 1movie cinema tickets) 3 Payback: Loyalty program points

collection Abroad Voice, SMS & Data promo

• No frills strategy for Unlimited voice offers

and no device provided (50€ fee if leaving

before 12 month)

• Cost Leadership for unlimited calls vs Wind

clients only (10€/m; not represented in the

chart because not comparable)

• 1000 minutes ,1000 sms and 1 GB abroad

at +10€ on basic unlimited postpaid tariff


No Device includedPlans distribution by Price and GB included No Device included

Sample: 3 ITA, Vodafone, TIM, Wind*Source: Merrill Lynch Global Wireless MatrixNote: All the 3 ITA plans have been converted in 4G including in the base plan 1 euro extra for LTENote1: Special offer reserved for Telecom clients (Dec’13 Benchmark) still on sale but not in the analysis

GB

Plan Price

20

Wind

Postpaid and Prepaid tariffs are samely priced, with 1

additional GB in case of contract

Tre:

Data allowance reduction for top portfolio

tariff from 20GB to 7Gb (+2 €/GB)

Vodafone:

• 1 GB not offered anymore with unlimited voice

minutes

• LTE upgrade option 10 €/m for + 2GB

Italy market

«Smartphone» tariffs dynamic landscape

Players divided in two main categories:

- Vodafone & TIM (Premium price providers)

- H3G & Wind (Price leaders)


‘12

34% 34%

‘13 ‘12

32% 31%

‘13 ‘12

10% 11%

‘13 ‘12

31% 34%

‘13

65% 150%3.8€

Wind offers at +10 €

abroad minutes/data

services

3ITA: Top unlimited Plus – 7 GB/m

LTE per 25 €/m

3ITA: All in one option- 30 months

locked – 2GB/M per 20€/m

(+1 € LTE)

3ITA: Top

unlimited –

1 GB/m LTE

per 15 €/m

Vodafone

RelaxTIM Special

Wind All Inclusive

Vodafone

LTE upgrade

option


R² = 0,9775

R² = 0,5285

0 €

5 €

10 €

15 €

20 €

25 €

30 €

35 €

40 €

45 €

0 1 2 3 4 5 6 7 8


1

3

11

21 1

3 3

Tim Vodafone Wind H3G

SMARTPHONE PLANS with Unlimited Voice and Device not Included: Price per GB analysis

3.1 Italy - Smartphone Plans


LTE

3G

Eu

ro/G

B

Sample: 3 ITA, Vodafone, TIM, Wind*Source: Merrill Lynch Global Wireless MatrixNote: All the 3 ITA plans have been converted in 4G including in the base plan 1 euro extra for LTENote1: Special offer reserved for Telecom clients (Dec’13 Benchmark) still on sale but not in the analysis

GB


€/GB

20

3G

LTE

Dec’13

Jun’14

2H13 1H14- 4G 17,0 - 3G 14,5 - 4G - 3G 30,8 22,50 - 4G - 3G 29,0 21,00 - 4G 12,75 - 3G 10,00 - 4G 17,0 12,75 - 3G 26,3 19,10

Average

Operator 2H13 1H14- 4G 16,33 - 3G - 4G 13,75 - 3G - 4G - 3G - 4G - 3G - 4G 15,04 - 3G

Average

Operator 2H13 1H14- 4G - 3G - 4G - 3G - 4G - 3G - 4G 3,57 - 3G - 4G 3,57 - 3G

Average

Operator 2H13 1H14- 4G - 3G - 4G - 3G - 4G - 3G - 4G 1,6 - 3G - 4G 1,6 - 3G

Average

Operator

65% 150%3.8€



3.2 Uk - Data Plans


Str

ate

gy o

utl

ine

Portfolio’s tariffs expansion towards higher

data allowance and more competitive

plans (compared to Dec’13)

Additional benefits:

EE Stream and download latest movies

without denting data

WiFi (London Underground & BT WiFi) with

a 3GB fair use policy

Discount for EE fiber customers (5£)

2 x1 Cinema Tickets / Pizza (1 day/ week)

Tariffs unchanged in the last 6 months with

short-term summer discount of 15% on all

tariffs

Main features:

3G offers for small allowances (up to 2 GB)

4G offers for medium allowances (up to 10

GB)


a 750 MB fair use policy

Still price leadership strategy but with

tariff’s data allowance reduction (compared

to Dec’13)

Main features:

Price leadership

4G at no extra costs


Competitive offers strategy in the small allowances (both 3G & 4G offers)Main features: Premium for 4G in the 5GB allowance Roll traffic not used (up to 12 GB) to the

next month WiFi (O2 WiFi, London Underground) up to

10GB a month fair use policy Priority Tickets for music, comedy and

sports events

Sample: EE, O2, Vodafone, 3UK

*Source: Merrill Lynch Global Wireless Matrix

Note 1: No tablet Broadband SIM

Note: Exchange Rate Pound to Euro= 1,25


30 Days SIM Only

Tariffs

63% 123%3,4€

GB

R² = 0,6692R² = 0,7517

0 €

5 €

10 €

15 €

20 €

25 €

30 €

35 €

40 €

45 €

0 5 10 15 20 25

O2 EE 3 UK VodafonePlan Price

EE has currently:

• Increased its tariffs’ data allowance from 5 to 15GB and 8 to

25GB (without major prices adjustments)

• Included a new 1GB allowance tariff

H3G has currently:

• Reduced 1GB allowance tariff price

• Moved from 15GB allowance to a 10GB tariff

(without major prices adjustments)

Vodafone:

Same tariffs of Dec’13 with

15% special summer discount

until 6° August

UK market

2 dynamic players (EE and H3G)

2 static players (O2 and Vodafone)


‘12

34%

‘13

33%

‘12

25% 25%

‘13 ‘12

12% 13%

‘13 ‘12

29% 30%

‘13

34%


122

43

22

4 4 4

3 UK EE O2 Vodafone


3.2 Uk - Data Plans


Note 1: No tablet Broadband SIM



LTE

3G

Eu

ro/G

B

GB

R² = 0,8888R² = 0,9184

0 €

2 €

4 €

6 €

8 €

10 €

12 €

14 €

0 5 10 15 20 25

O2 EE 3 UK Vodafone


€/GB3G

LTE

Dec’13

Jun’14

O2 & Vodafone :

Premium Price strategy

2H13 1H14- 4G 12,51 - 3G - 4G 12,51 - 3G 9,8 8,13 - 4G - 3G 10,4 10,94 - 4G 12,5 9,38 - 3G - 4G 12,5 11,46 - 3G 10,1 10,00

Operator

Average

2H13 1H14- 4G 5,7 6,25 - 3G - 4G 6,0 6,25 - 3G - 4G 6,0 6,25 - 3G - 4G 3,8 - 3G - 4G 5,5 6,25 - 3G

Operator

Average

2H13 1H14- 4G 3,9 - 3G - 4G - 3G - 4G 3,6 3,75 - 3G - 4G 1,88 - 3G - 4G 3,7 2,81 - 3G

Operator

Average

2H13 1H14- 4G 1,58 - 3G - 4G - 3G - 4G - 3G - 4G 1,3 - 3G - 4G 1,3 1,58 - 3G

Operator

Average

63% 123%3,4€


R² = 0,7787R² = 0,4902

20 €

25 €

30 €

35 €

40 €

45 €

50 €

0 1 2 3 4 5 6 7 8 9 10

Vodafone EE O2 3 UK

SMARTPHONE PLANS with Unlimited Voice and Device not included: Strategy, prices and GB


3.2 Uk - Smartphone Plans


Str

ate

gy o

utl

ine

LTE focused operator, in the past six

months has reduced the tariffs portfolio to a

single rate with unlimited minutes at a

competitive price . Additional benefits:

Stream and download movies without

denting data.


a 3GB fair use policy

Discount for EE fiber customers (5£)

2 x1 Cinema Tickets / Pizza (1 day/ week)

Differentiation strategy based on :

4G value for money offers for medium-big allowances (up to 9 GB), with higher than a

Only 4G for unlimited minutes plans 750 MB WiFi (London Underground & BT) Entertainment: Sky Sports Mobile TV,

Spotify Premium or Netflix (6/12months)

Since the prices decrease of competitors, Vodafone has become the most expensive player in the analyzed segment

Price leadership strategy.

New offer unlimited voice and device not

included, 4GB at22,5 €/M per 12 months

The larger minute bundle offers 2.000

minute/month for €28,8 (including also All-

you-can-eat data, and

4G at no extra costs

Competitive offers strategy based on:

Prices reduction in the last six months

and more competitive options in terms of

data allowance

Roll traffic not used to the next month

WiFi (O2 WiFi, London Underground & BT

WiFi) up to 10GB a month fair use policy

Priority Tickets for music, comedy and

sports events

1 month early contract upgrade option

Market share (as % of customers, excluding MVNO)*Sample: EE, O2, Vodafone, 3UK



No Device included

12 months offers

GB

Plan Price

All You can eat data

3UK:

All you can eat data with 2.000 voice minute

+ 5.000 min vs 3UK clients (28,8 €/month)

EE:

Previous Tariffs rationalization in

only one with unlimited minutes

Vodadone & O2:

Eliminated tariffs with unlimited

minutes and 3G data roaming

O2:

Overall prices / Data allowance

decrease (compared to Dec’13)

3UK: New Offer 4GB and

Unlimited minutes (22,5 €/M

per 12 Months


‘12

34%

‘13

33%

‘12

25% 25%

‘13 ‘12

12% 13%

‘13 ‘12

29% 30%

‘13

34%

63% 123%3,4€


1 1

4 41 1

4 4

3 UK EE O2 Vodafone

R² = 0,9646R² = 0,9533

0 €

5 €

10 €

15 €

20 €

25 €

30 €

35 €

0 1 2 3 4 5 6 7 8 9 10

Vodafone EE O2 3 UK

SMARTPHONE PLANS with Unlimited Voice and Device not included: Price per GB analysis

3.2 Uk - Smartphone Plans




LTE

3G

Eu

ro/G

B

GB

€/GB3G

LTE

Dec’13

Jun’14

<= 2 GB Plans 5-10 GB Plans > 10 GB Plans2-5 GB Plans2H13 1H14

- 4G 25,0 - 3G - 4G 31,0 23,76 - 3G 20,3 - 4G 26,26 - 3G 20,3 - 4G - 3G - 4G 28,0 25,01 - 3G 20,3

Average

Operator 2H13 1H14- 4G 9,5 7,19 - 3G - 4G 7,4 8,34 - 3G - 4G 9,30 - 3G 9,2 - 4G 5,63 - 3G - 4G 8,8 7,95 - 3G 9,2

Average

Operator 2H13 1H14- 4G 6,1 - 3G - 4G 5,4 4,95 - 3G - 4G 4,9 5,70 - 3G - 4G - 3G - 4G 5,3 5,20 - 3G

Average

Operator 2H13 1H14- 4G 3,6 - 3G - 4G - 3G - 4G 3,6 - 3G - 4G - 3G - 4G 3,6 - 3G

Average

Operator

63% 123%3,4€



Str

ate

gy o

utl

ine

Price leadership strategy.

24 month SIM Only offers shown

3G competitive offers, with tariffs lower

than average for small allowances (up to

5GB)

10 GB free cloud storage for top price plan

Entertainment: MTV Music powered by

Rhapsody


Competitive offers (prices decreased from

Dec’13 for special online discount):


Special Contents: Napster and EA Games

(1 month free)

4G offers at market average within small

and medium allowances (up 10 GB)

Abroad data at same national price in

sister companies’ country

Premium offers strategy, despite slightly

prices decrease (online special discount of

10%) and Data allowance rationalization:

12 month SIM Only offers shown with

dongle

Bildplus digital contents

4G offers above market average

25 GB free cloud storage for all plans

Simple (4 tariffs) and Competitive offers

strategy based on:


Special discount for students 10%, disabled

people 15% and youngs 15%

4G offers above market average within

small /medium allowances (up to 10 GB)

Additional GB for free in the first

months of subscription (+ 0,5 GB/+1,5

GB/+3 GB in the first 12 months)


3.3 Germany - Data Plans


Sample: T-Mobile, Vodafone, E-plus, O2


12/24 Months contract

No Tablet included

140%62%3.7€

GB

R² = 0,75

R² = 0,8038

0 €

5 €

10 €

15 €

20 €

25 €

30 €

35 €

40 €

45 €

50 €

0 1 2 3 4 5 6 7 8 9 10

Vodafone T-Mobile Eplus O2Plan Price

T-Mobile changed its portfolio:

Tariffs’ prices online discount of 10% and data

allowance decreased (compared to Dec’13)

O2:

Tariffs’ 10% discount for 13 of 24 months

O2:

New tariff with 10GB

allowance at 41 €//m

Germany market

2 dynamic players (T Mobile and O2)

2 static players (Vodafone and Eplus)


‘12 ‘13

22%

‘12

17% 17%

‘13 ‘12

32% 34%

‘13 ‘12

30% 28%

‘13

22%


34

34

3

4

3

4

Eplus O2 T-Mobile Vodafone


3.3 Germany - Data Plans



LTE

3G

Eu

ro/G

B

GB

R² = 0,7004

R² = 0,6484

0 €

2 €

4 €

6 €

8 €

10 €

12 €

14 €

0 1 2 3 4 5 6 7 8 9 10

Vodafone T-Mobile Eplus O2€/GB3G

LTE

Dec’13

Jun’14

2H13 1H14- 4G - 3G 5,8 5,83 - 4G 15,0 8,99 - 3G - 4G 12,99 - 3G 13,0 - 4G 18,0 11,22 - 3G - 4G 16,5 11,11 - 3G 8,2 5,83

Operator

Average

2H13 1H14- 4G - 3G 3,0 3,00 - 4G 5,0 4,50 - 3G - 4G 7,3 7,33 - 3G - 4G 9,0 5,39 - 3G - 4G 7,1 5,74 - 3G 3,0 3,00

Operator

Average

2H13 1H14- 4G - 3G - 4G 4,7 4,12 - 3G - 4G 4,6 4,58 - 3G - 4G 4,5 - 3G - 4G 4,6 4,35 - 3G

Operator

Average

2H13 1H14- 4G - 3G - 4G - 3G - 4G - 3G - 4G 2,1 - 3G - 4G 2,1 - 3G

Average

Operator


140%62%3.7€


R² = 0,5097 R² = 0,6653

20 €

30 €

40 €

50 €

60 €

70 €

80 €

90 €

100 €

110 €

0 2 4 6 8 10 12 14

Vodafone T-Mobile O2 Eplus



3.3 Germany - Smartphone Plans


Str

ate

gy o

utl

ine

3G competitive offer strategy.

Only 1 3G competitive offer with unlimited

voice, with 2 GB allowance

10 GB free cloud storage in the All In Plan


Simple (2 tariffs) and price leadership

offers strategy based on:

4G offers at lower than average price per

GB within small and medium allowances (2

and 5 GB)

Abroad data at same national price in

sister companies’ country and 300 to 500

MB abroad navigation

Competitive offers strategy based on:

4G competitive price covering small

medium allowances (up to 5 GB)

MultiSim/ Data Sharing with up to 2 other

devices

25 GB free cloud storage

Spotify free (for 3 months)

Voice abroad: 50 Minutes

Data abroad 4 free uses of the Travel &

Surf Week Pass 50 MB/80MB within 24

months for surfing in other EU countries

Premium offers strategy based on:

4G above market average price covering

small medium allowances (up to 5 GB)

250 voice minute from Europe

5-25 GB free cloud storage (50 GB for 15

GB allowance offer)

Latest 2 Months TV Highlights




No Device included

24 months offers

GB

Plan Price

E-plus owned

MVNO

• 27,5 € between T-Mobile LTE and

Base (same GB allowance)

• 32,5 € between T-Mobile LTE and

O2 LTE (same GB allowance)

• 27 € between T-Mobile

LTE and O2 LTE (same

GB allowance)

O2:

New premium offer with 10GB

abroad data roaming at 71,99 €//m


Vodafone:

New premium offer with 15GB

abroad data roaming at 99,99 €//m

Vodafone:

All tariffs have been increased in terms of data

allowance of 50% keeping same prices

‘12 ‘13

22%

‘12

17% 17%

‘13 ‘12

32% 34%

‘13 ‘12

30% 28%

‘13

22%

140%62%3.7€


1

34 4

1

3

4 4

Eplus O2 T-Mobile Vodafone


3.3 Germany - Smartphone Plans



LTE

3G

Eu

ro/G

B

GB

€/GB3G

LTE

Dec’13

Jun’14

R² = 0,8562

R² = 0,9316

0 €

10 €

20 €

30 €

40 €

50 €

60 €

0 2 4 6 8 10 12 14 16

Vodafone O2 T-Mobile Eplus


- 4G - 3G 20,0 20,00 - 4G 17,5 18,00 - 3G - 4G 50,0 43,32 - 3G - 4G 42,4 42,37 - 3G - 4G 38,9 38,63 - 3G 20,0 20,00

Average

Operator 2H13 1H14- 4G - 3G - 4G 9,0 9,00 - 3G - 4G 20,0 - 3G - 4G 14,4 14,39 - 3G - 4G 14,5 11,70 - 3G

Average

Operator 2H13 1H14- 4G - 3G - 4G 7,20 - 3G - 4G 10,0 13,33 - 3G - 4G - 3G - 4G 10,0 10,27 - 3G

Average

Operator 2H13 1H14- 4G - 3G - 4G - 3G - 4G 6,67 - 3G - 4G - 3G - 4G 6,67 - 3G

Average

Operator

140%62%3.7€



3.4 USA - Data Plans


Str

ate

gy o

utl

ine

Simple (2 offers ) and 4G competitive offer

strategy. 1-month SIM Only offers shown 3 and 5 GB offers with pricing in line with

the marketNot shown in the graph: Data share plans with increasing allowance

from 4 GB to 50 GB per month Different prices for additional device

according to device typology Specific offers for automotive and smart

locator devices

Competitive 4G offer strategy

Prepaid SIM Only offers shown

Prices in line with the market for medium

-larger bundles

1 GB offer with above average € /GB

Not shown in the graph: Data share plans with increasing

allowance (500 MB to 50 GB per month) Different prices for additional device

according to device typology


1-month SIM Only offers shown

Price leadership in the small bundles up

to 2GB

Prices in line with the market for larger

bundles

Data traffic off the Sprint network

included (100 to 300 MB)



Prices in line with the market (data

bundles from 2,5 GB to 10,5 GB)

Web Guard (restriction for to adult-themed

web sites)

14%

Market share (as % of customers, excluding MVNO)*Sample: T-Mobile, Sprint, AT&T, Verizon

Note: Exchange Rate Dollar to Euro = 0,7345*Source: Merrill Lynch Global Wireless Matrix

No Dongle included

3.4€

GB

R² = 0,8778R² = 0,8735

0 €

10 €

20 €

30 €

40 €

50 €

60 €

70 €

80 €

90 €

0 5 10 15 20 25 30

Verizon Sprint T Mobile At&tPlan Price

63% 105%



Prices in line with the market (data

bundles from 2,5 GB to 10,5 GB)

Web Guard (restriction for to adult-themed

web sites)

USA market

Greater allowance with data bundles: 30 GB

Rational market (no dispersion)

Not dynamic in terms of changes in the tariffs portfolio

Sprint:

New premium tariff with

30GB LTE data

allowance

T-Mobile:

• New base tariff with 1 GB LTE data

allowance

• General prices decrease

(only <5GB data allowance range)


‘12 ‘13

33%

‘12

30% 31%

‘13 ‘12

17% 16%

‘13 ‘12

10% 14%

‘13

33%


2

56

52

5

6

5

At&t Sprint T Mobile Verizon



3.4 USA - Data Plans

Sample: T-Mobile, Sprint, AT&T, Verizon

Note: Exchange Rate Dollar to Euro = 0,7345

Eu

ro/G

B

LTE

3G

GB

R² = 0,7013

R² = 0,6731

0 €

2 €

4 €

6 €

8 €

10 €

12 €

14 €

16 €

0 5 10 15 20 25 30

At&t Verizon Sprint T Mobile€/GB

3.4€63% 105%

T-Mobile:

Only operator which have non-

progressive decreasing price/GB tariffs

to data allowance increase

3G

LTE

Dec’13

Jun’14


- 4G - 3G - 4G 5,6 7,34 - 3G - 4G 13,0 12,85 - 3G - 4G 7,35 - 3G - 4G 10,5 10,10 - 3G

Operator

Average

2H13 1H14- 4G 7,4 7,35 - 3G - 4G 8,6 8,57 - 3G - 4G 7,4 7,35 - 3G - 4G 4,65 - 3G - 4G 7,7 6,75 - 3G

Operator

Average

2H13 1H14- 4G - 3G - 4G 6,2 6,12 - 3G - 4G 5,9 5,88 - 3G - 4G 5,07 - 3G - 4G 5,8 5,53 - 3G

Operator

Average

2H13 1H14- 4G - 3G - 4G 4,9 3,79 - 3G - 4G - 3G - 4G 4,67 - 3G - 4G 4,9 4,09 - 3G

Operator

Average


R² = 0,9214R² = 0,942

0 €

50 €

100 €

150 €

200 €

250 €

0 10 20 30 40 50

At&t Verizon T Mobile



3.4 USA - Smartphone Plans


Str

ate

gy o

utl

ine

Competitive 4G offer strategy in line with

market prices.

Share plan offers are shown in the graph,

only data traffic related prices (device cost

excluded)

Early Termination Fee depends on device

(12/24 month retention period for

smartphones)

AT&T and Verizon have both reduced the

price for the small data allowance (under 2

GB) tariffs in the six months

Competitive 4G offer strategy in line with

market prices:

Share plan offers are shown in the graph,

only data traffic related prices (device cost

excluded)

Early Termination Fee depends on device,

if included (starting fee less an amount due

to the # of month completed as customer)

AT&T and Verizon have both reduced the

price for the small data allowance (under 2

GB) tariffs in the six months

All offers include the device in the price (not

comparable with other operators)

Share plan are offered for up to 10 device

Unlimited voice offer including device

(iphone 5s at 0$) and 5 GB per month is

offered at 110 $ per month (about 81 €)

Competitive 4G offer strategy with a brand new portfolio made of 4 tariffs (instead of 2): Share plan offers are shown in the graph,

only data traffic related prices (device cost excluded)

Monthly (no early termination fee) International roaming and minutes in 100

countries worldwide 10 $ per additional device (share plan) 70 $ for unlimited data on primary line

(+50$ for 2nd unlimited data, +30$ for 3rd

unlimited data)


Sample: T-Mobile, Sprint, AT&T

Note: Exchange Rate Dollar to Euro = 0,7345Note: Sprint haven’t been included in the analysis for consistency with the sample’s cutoff ratio and its only unlimited GB plans


No Device included

GB

Plan Price

3.4€63% 105%

USA market


Unlimiteddata

T-Mobile:

Unlimited data offer for

individual plan

(no share)

AT&T & Verizon:

Price reduction in the last six months for low data allowance plans (

<2GB )

Same pricing strategy (overlapped in the graph) <30GB Data

allowance tariffsT-Mobile:

Portfolio expansion from 1 to

3 tariffs (excluding unlimited

data)compared to Dec’13

analysis


‘12 ‘13

33%

‘12

30% 31%

‘13 ‘12

17% 16%

‘13 ‘12

10% 14%

‘13

33%


10

3

15

10

3

15

At&t T Mobile Verizon


Plans distribution by Price per GB and GB included

Eu

ro/G

B

Analyzed Plans

3.4 USA - Smartphone Plans

Sample: T-Mobile, Sprint, AT&T

Note: Sprint haven’t been included in the analysis for consistency with the sample’s cutoff ratio and its only unlimited GB plans

Note: Exchange Rate Dollar to Euro = 0,7345

LTE

3G

GB

€/GB

3.4€63% 105%

R² = 0,9124R² = 0,9045

0 €

5 €

10 €

15 €

20 €

25 €

30 €

35 €

40 €

0 10 20 30 40 50

Verizon At&t T Mobile3G

LTE

Dec’13

Jun’14


- 4G 26,9 16,53 - 3G - 4G - 3G - 4G 29,6 23,87 - 3G - 4G 36,73 - 3G - 4G 28,2 23,50 - 3G

Average

Operator 2H13 1H14- 4G 13,0 12,85 - 3G - 4G - 3G - 4G 13,0 13,77 - 3G - 4G 12,49 - 3G - 4G 14,6 13,07 - 3G

Average

Operator 2H13 1H14- 4G 8,6 8,57 - 3G - 4G - 3G - 4G 8,5 8,47 - 3G - 4G - 3G - 4G 8,6 8,51 - 3G

Average

Operator 2H13 1H14- 4G 8,6 8,57 - 3G - 4G - 3G - 4G 8,5 8,47 - 3G - 4G - 3G - 4G 8,6 8,51 - 3G

Average

Operator



3.5 France - Data Plans


Str

ate

gy o

utl

ine

Price leadership strategy:

No retention SIM Only offers shown

4G at no additional price

Competitive price covering larger than market allowances (6 to 32 GB)

20 (entry offer) to 50 GB cloud storage

Additional services (Not included):

Bbox Tv Channels

Media Center to access to different multimedia

Mix services/prices competition strategy:


4G at no additional price

Competitive offers in the small allowances (up to 3 GB)

SFR TV accessible thought an application

Wi-Fi all over the country

SFR monde: option to navigate and communicate worldwide (some services require payment)


Sample: Orange, BouyguesTelecom, SFR


Premium offers strategy.


Lower prices for 24/12 month retention clients

Cloud storage with a 4G offer

Marketing Communication based on network strategy

Orange Wi-Fi with unlimited access

No Dongle included

68% 110%3.8€

GB

R² = 0,3538

R² = 0,8126

0 €

10 €

20 €

30 €

40 €

50 €

60 €

0 5 10 15 20 25 30 35

bouyguestelecom Orange SFRPlan PriceOrange: Premium price through service differentiation,

despite :

• Price reduction driven by data allowance

decrease for <5GB offer

• Price reduction although data allowance

increase >5 GB Offer

(compared to Dec’13)

Bouygues: Same SFR price, with 1

GB more in LTE

France market

Scattered market

Price competitive market

Market driven by the careful analysis of

competitors’ placement

SFR: Price reduction accompanied by data allowance

decrease <10GB offers (compared to Dec’13)


‘12 ‘13

38%

‘12

17% 16%

‘13 ‘12

31% 30%

‘13

40%

‘ ‘ ‘ ‘ ‘


32

3

3

2

3



3.5 France - Data Plans

LTE

3G


Eu

ro/G

B

GB

R² = 0,7821R² = 0,8683

0 €

2 €

4 €

6 €

8 €

10 €

12 €

14 €

16 €

18 €

0 5 10 15 20 25 30

bouyguestelecom Orange SFR€/GB

68% 110%3.8€

3G

LTE

Dec’13

Jun’14


- 4G - 3G 16,9 - 4G 7,99 - 3G - 4G - 3G - 4G 7,99 - 3G 16,9

Average

Operator 2H13 1H14- 4G 7,4 6,33 - 3G - 4G 5,0 3,00 - 3G - 4G - 3G - 4G 6,2 4,66 - 3G

Operator

Average

2H13 1H14- 4G 5,7 - 3G - 4G 4,2 - 3G - 4G 2,5 2,48 - 3G - 4G 4,1 2,48 - 3G

Operator

Average

2H13 1H14- 4G 3,25 - 3G - 4G 2,08 - 3G - 4G 1,4 1,40 - 3G - 4G 1,4 2,03 - 3G

Operator

Average




3.5 France - Smartphone Plans


Str

ate

gy o

utl

ine

Market share (as % of customers, excluding MVNO)*Sample: Orange, BouyguesTelecom, SFR

Source: Merrill Lynch Global Wireless Matrix

No Device included

GB

R² = 0,5277

R² = 0,7193

0 €

20 €

40 €

60 €

80 €

100 €

120 €

140 €

0 2 4 6 8 10 12 14 16 18

Orange SFR bouyguestelecomPlan Price

Price leadership strategy: 12 months retention SIM Only offers shown Cheaper offers with competitive services 50 € Bonus in case of new client keeping old

numberFor top plans: HD TV (77 channels) Unlimited calls to 121 fixed and mobile

international destinations 3GB Internet from Europe Unlimited cloud

Both competitive offers and Premium services: 12 months retention SIM Only offers shown 10/100 GB cloud storage 1 Extra application between Napster, Icoyote,

Gameloft, SFRpresse, Canalplay SFR TV accesible thought an applicationAlso included in Top plan: Unlimited calls to abroad fixed and mobile + 6h

voice, SMS and 1 GB from USA MultiSim: use the plan with multiple

users/devices

Both competitive offers and Premium services:• 12 months retention SIM Only offers shown Orange music with Deezer Premium 100 GB Cloud storage Football Ligue 1 games Cineday: 2 Cinema Tickets for one’s price Multi-SIM option: a SIM to surf on your tabletIncluded in the top offer: Towards international: unlimited calls to

landlines (100 countries) and mobile DOM,USA and Canada

From abroad: Unlimited calls to mobile in Europe, USA and Canada

68% 110%3.8€

Orange:

Still premium price through service

differentiation, despite:

• Price decrease

• Data allowance increase

No more offers in 3G

SFR:

• General prices reduction for >3

GB offers

• Portfolio expansion towards

higher data allowance offersOrange:

Same GB offer but

differentiation in terms of

international services

France market

Scattered market

Free Mobile (10% market share reached in 2 years), is moving pressure

towards leading telecom operators with a 20 €/m for 3GB in 3G + 20 GB in

4G, unlimited calls, SMS and MMS per month


‘12 ‘13

38%

‘12

17% 16%

‘13 ‘12

31% 30%

‘13

40%

‘ ‘ ‘ ‘ ‘


1

3 3

63 3

7

SMARTPHONE PLANS: Price per GB analysis

3.5 France - Smartphone Plans



Eu

ro/G

B

Analyzed Plans

LTE

3G

GB

R² = 0,3357

R² = 0,30692 €

4 €

6 €

8 €

10 €

12 €

14 €

2 4 6 8 10 12 14 16

Orange SFR bouyguestelecom€/GB

68% 110%3.8€

3G

LTE

Dec’13

Jun’14

SFR:

5GB per 25,99 €/M

(RED Tariff without engagment)

SFR:

5GB per 32,99 €/M


- 4G 15,5 - 3G 15,0 - 4G - 3G - 4G - 3G - 4G 15,5 - 3G 15,0

Average

Operator 2H13 1H14- 4G 10,2 9,33 - 3G 10,0 - 4G 9,3 7,26 - 3G 7,5 6,66 - 4G 10,0 10,00 - 3G - 4G 9,7 8,22 - 3G 8,3 6,66

Average

Operator 2H13 1H14- 4G 10,0 7,50 - 3G - 4G 11,7 5,12 - 3G - 4G 5,0 5,00 - 3G - 4G 9,6 6,28 - 3G

Average

Operator 2H13 1H14- 4G - 3G - 4G 6,98 - 3G - 4G 3,7 3,75 - 3G - 4G 3,7 5,90 - 3G

Average

Operator



3.6 Austria - Data Plans


Str

ate

gy o

utl

ine

Market share (as % of customers, excluding MVNO)

Competitive offers in the small-medium allowance: No retention SIM Only offers shown Focus on 3G for the majority of the offers Competitive offers in the low-medium

allowance (1 GB and 6 GB) Price leadership in the large allowance

(unlimited bundle) 4G offered only to Top Plan (45 €/m; 100 GB)

with device included Included 3Mobile TV station (6 Channels) Cloud storage (2 months free) Special commercial partners discounts ( Car2go, Ars Electronica, ect)

Market leader. Strategy based on incremental data

offers in line with premium price


All the offers with 4G

5/ 30/50 GB Cloud storage (according to data

plan)

Internet protection for Top Tariffs

EU Data Roaming: 30/100 MB according to data

plan

Market prices. Strategy based on incremental data

offers below market average (since A1 has

increased its prices):


All the offers with 4G

Market’s highest data allowance offered

(40GB at 44,99 € per month)

Offers sold as unlimited data, with throttling at

threshold illustrated in the graph

Sample: T-Mobile, 3 Austria, A1


No Dongle included

74% 112%3.4€

GB

R² = 0,9677

R² = 0,9353

0 €

10 €

20 €

30 €

40 €

50 €

60 €

0 5 10 15 20 25 30 35 40 45

T Mobile A1 3 AustriaPlan Price

A1

Only market operator which has strengthen its premium

price position by increasing tariffs:

• without impacting offered data allowance

•slightly upgrading cloud space and EU data roaming

Austria market

Very rational market (excluding 3AUT unlimited offer)

Speed (Mbps) as offers differentiator for all competitors

Static market in terms of prices and service differentiation3AUT: Unlimited data

at 15 €/m


‘12

39% 43%

‘13 ‘12

30% 31%

‘13‘12 ‘13

26%25%


2

43

2

4

3

3 Austria A1 T Mobile

Analyzed Plans



Eu

ro/G

B3.6 Austria - Data Plans


LTE

3G

GB

R² = 0,8887R² = 0,7337

€ -

€ 0,5

€ 1,0

€ 1,5

€ 2,0

€ 2,5

€ 3,0

€ 3,5

€ 4,0

€ 4,5

0 5 10 15 20 25 30 35 40 45

A1 T Mobile 3 Austria€/GB3G

LTE

Dec’13

Jun’14


- 4G - 3G - 4G - 3G 4,0 4,00 - 4G - 3G - 4G - 3G 4,0 4,00

Operator

Average

2H13 1H14- 4G 2,2 2,58 - 3G - 4G - 3G - 4G - 3G - 4G 2,2 2,58 - 3G

Operator

Average

2H13 1H14- 4G 1,7 1,99 - 3G - 4G - 3G 1,5 1,50 - 4G 1,3 1,30 - 3G - 4G 1,5 1,64 - 3G 1,5 1,50

Operator

Average

2H13 1H14- 4G 1,2 1,58 - 3G - 4G - 3G - 4G 1,2 1,21 - 3G - 4G 1,2 1,40 - 3G

Average

Operator

74% 112%3.4€




3.6 Austria - Smartphone Plans


Str

ate

gy o

utl

ine


Device included

24 months retention



GB

R² = 0,463

R² = 0,5192

20 €

25 €

30 €

35 €

40 €

45 €

50 €

55 €

0,5 1,5 2,5 3,5 4,5 5,5 6,5

T Mobile A1 3 AustriaPlan Price

Market average prices: the only operator which has changed its prices’plans (from Dec’13) in order to stand out from Tmobile

Premium smartphone included Speed (Mbps) as offers differentiator 3 Mobile Tv with 50 channels 2x1 cinema tickets Discounts on Car2Go, Upmove webshop, Magic

Mountain Ski travels, Falkeneister Hotels, etc

Premium price strategy based on incremental data offers all including 4G: Premium smartphone included Lower prices for landline services customers Young under 26 special prices for postpaid

plans including smartphones 5/50/100 GB cloud storage included according

to data plan 50/100 voice minute and 50/100 MB from EU

Price leadership strategy with incremental data

offers unchanged

Premium smartphone included

10 € premium for LTE and 200 additional

voice minutes from EU on Top plan

200/ 400 voice minutes from Europe included

3 Austria:

Slight prices increase (+4 € on each offer) to

differentiate from Tmobile

(the two players’ offer were overlying in Dec’13)

T-Mobile: additional 10

€/m for LTE and +200

minutes calls from EU

A1: premium price respect to all the competitors with 3G

(+10€ with 1 GB less) – valid for all the A1 offers

Austria market

Speed (Mbps) as offers differentiator for all competitors

Clear competitive roles among players


‘12 ‘13

26%

‘12

39% 43%

‘13 ‘12

30% 31%

‘13

25%

74% 112%3.4€


2

43

2

4

3

3 Austria A1 T Mobile



Eu

ro/G

B

Analyzed Plans

3.6 Austria - Smartphone Plans


LTE

3G

GB

R² = 0,7928R² = 0,8325

€5

€10

€15

€20

€25

€30

€35

0,5 1,5 2,5 3,5 4,5 5,5 6,5

A1 T Mobile 3 Austria€/GB

3 Austria: Slight price € /GB

increase

+2 € /GB

+1 € /GB+0,67 € /GB

3G

LTE

Dec’13

Jun’14


2H13 1H14- 4G 34,9 34,90 - 3G - 4G - 3G 12,5 14,50 - 4G - 3G 12,5 12,50 - 4G 34,9 34,90 - 3G 12,5 13,50

Average

Operator 2H13 1H14- 4G 13,0 12,97 - 3G - 4G - 3G 8,8 9,75 - 4G - 3G 8,7 8,75 - 4G 13,0 12,97 - 3G 8,7 9,25

Average

Operator 2H13 1H14- 4G - 3G - 4G - 3G 7,5 8,17 - 4G 9,2 9,17 - 3G 7,5 7,50 - 4G 9,2 9,17 - 3G 7,5 7,83

Average

Operator 2H13 1H14- 4G - 3G - 4G - 3G - 4G - 3G - 4G - 3G

Average

Operator

74% 112%3.4€


No frills single competitive tariff 6/12/18 months retention with dongle

included offers shown 15 GB per month at 17,27 €/m ( online

discount on previous offer of about 3 €) No additional services O2 Ireland only operator which does not

provide 4G yet Priority Moments contents (discounts and

promotions)


3.7 Ireland - Data Plans


Str

ate

gy o

utl

ine

No frills price leaders tariffs: 18 months retention with dongle

included for 4G offers shown 4G offered with larger bundles (20 and 30

GB) and new tariff with 6GB (no engagement)

Adressing customer to LTE: Still offering 3G tariff with 5GB available at an higher price than 4G 6GB

eircom WiFiHub service included No additional services

Competitive offers with 3G, Premium price for 4G:

12/18 months retention with dongle included for offers shown

Aligned with market prices for 3G (10GB , 20€/m)

Premium price for LTE vs other operators (+3€ than 3 Ireland)

Vodafone does not focus on small allowance (<10GB) bundles

Only player in the small bundles (<5GB) Competitive offers in larger bundles (>

10 GB) 18 months retention with dongle

included offers shown 3 Ireland has converted all the tariffs in

4G without adjusting the prices


3.5€67% 114%

Dongle included

GB

Plan Price

R² = 0,9494

R² = 0,8545

5 €

10 €

15 €

20 €

25 €

30 €

35 €

0 10 20 30 40 50 60

Meteor Vodafone O2 3 Ireland

Ireland market


Operators alignment towards same data

allowance offers (compared to Dec’13)

3 Ireland:

• focus on smaller bundles

• all offers convertedfrom 3G to

4G (compared to Dec’13)

Meteor:

Huge prices decrease impacted

all portfolio’s tarifs (compared to Dec‘13)O2: online special discount

of 3 € on previous offer

O2: New offer of 30GB at 30 €

(only online)


Sample: Meteor, O2, Vodafone, 3 Ireland

* Source: Commission for the Regulation of Telecomunications

‘12 ‘13

19%

‘12

40% 38%

‘13 ‘12

10% 10%

‘13 ‘12

29% 27%

‘13

20%

http://www.meteor.ie/



12

1

43

2

4 4

2

3

3 Ireland Meteor O2 Vodafone



Eu

ro/G

B

Analyzed Plans

3.7 Ireland - Data Plans


LTE

3G

GB

€/GB

3.5€67% 114%

R² = 0,9856

R² = 0,9615

0 €

1 €

2 €

3 €

4 €

5 €

6 €

7 €

8 €

9 €

0 10 20 30 40 50 60

Vodafone Meteor O2 3 Ireland3G

LTE

Dec’13

Jun’14

Meteor:

«5GB in 3G» offer has a +0,95 €

price per GB compared to « 6GB in 4G»


- 4G - 3G - 4G - 3G - 4G - 3G - 4G 7,24 - 3G 7,2 - 4G 7,24 - 3G 7,2

Operator

Average

2H13 1H14- 4G - 3G 3,5 3,45 - 4G - 3G - 4G - 3G - 4G - 3G - 4G - - 3G 3,5 3,45

Operator

Average

2H13 1H14- 4G 2,50 - 3G 2,0 - 4G - 3G 2,0 2,00 - 4G - 3G - 4G - 3G - 4G 2,50 - 3G 2,0 2,00

Operator

Average

2H13 1H14- 4G 1,1 0,84 - 3G - 4G 1,5 1,58 - 3G - 4G - 3G 1,4 1,08 - 4G 1,02 - 3G 1,0 - 4G 1,2 1,15 - 3G 1,1 1,08

Operator

Average








3.7 Ireland - Smartphone Plans


Str

ate

gy o

utl

ine


No device included

No retention period


* Source: Commission for the Regulation of Telecomunications

GB

R² = 0,5227R² = 0,5079

0 €

10 €

20 €

30 €

40 €

50 €

60 €

0 2 4 6 8 10 12 14 16

Meteor Vodafone O2Plan Price

Competitive offers with 3G No retention SIM Only offers shown(30

days contract) 1 GB offer for 30/m + purchasable option

for 1 GB at 10€ Different special offers from time to time

(Double GB, Discounts, etc) Priority Moments service, for fashion,

movies, meals out discounts, cinema tickets and lot more different initiatives


No retention SIM Only offers shown(30 days contract)

4G offer associated with unlimited voice bundles

1 GB offer for 30/m + purchasable option to 15 GB at +5€

Cheaper offer in smaller bundles, while comparable price per GB in offer + option

No additional services provided

Premium price strategy: No retention SIM Only offers shown(30

days contract) 4G offer associated to unlimited voice 1 GB offer for 30/m + purchasable option

for +1 GB at 5€ Different special services as Spotify

Premium free for 3 months (postpaid offers)

With 12 month retention Vodafone offers 2GB and unlimited voice at 35€/m + 100 voice minute and 100 SMS worldwide


No retention SIM Only offers shown(30

days contract)

More GB at comparable price

1 plan (the only with >500MB) with

unlimited voice and all you can eat data at

~ 40€/m No additional services provided

3.5€67% 114%

Meteor: New special tariff of 15GB

at just +5 €/m than basic offer

3Ireland: Unlimited voice and

data at 39,75 €/m Ireland market

Very rational market with perfectly aligned prices

Vodafone: huge prices reduction (compared to

Dec’13)

• Base tariff -10 € (from 40 € to 30 €)

• Additional GB -5 € (from 10 € to 5 €)

O2: Charge for additional GB reduced

from 10 € to 5 € compared to Dec’13

(in line with Vodafone adjustment)


‘12 ‘13

19%

‘12

40% 38%

‘13 ‘12

10% 10%

‘13 ‘12

29% 27%

‘13

20%




22 2

2 2 2

Meteor O2 Vodafone



Eu

ro/G

B

Analyzed Plans

3.7 Ireland - Smartphone Plans


LTE

3G

R² = 0,7936

R² = 0,9964

0 €

5 €

10 €

15 €

20 €

25 €

30 €

35 €

40 €

45 €

0 2 4 6 8 10 12 14 16

Meteor Vodafone O2

GB

€/GB

3.5€67% 114%

3G

LTE

Dec’13

Jun’14


- 4G 26,8 30,00 - 3G - 4G 32,5 23,75 - 3G - 4G - 3G 31,3 23,75 - 4G - 3G - 4G 29,6 25,83 - 3G 31,3 23,75

Average

Operator 2H13 1H14- 4G - 3G - 4G - 3G - 4G - 3G - 4G - 3G - 4G - 3G

Average


Average

Operator 2H13 1H14- 4G 2,33 - 3G - 4G - 3G - 4G - 3G - 4G - 3G - 4G 2,33 - 3G

Average

Operator







3.8 Sweden - Data Plans


Str

ate

gy o

utl

ine

From premium price strategy to price

leader strategy aligned to average

No retention SIM Only offers shown (30

days contract)

Small-Medium data allowance plans

increased up to 40 GB (compared to 10 GB

of Dec’13)

Same price for 12/24month retention but

including 4G dongle

Value for Price Strategy:

3 months notice period SIM Only offers shown

Premium price for top tariff of 60GB

No additional services provided (at no surcharge)

Premium Price Strategy:

No retention SIM Only offers shown(30

days contract)

Telia’s services prices follower

Small-Medium allowance plans up to 12

GB

24 months retention in case of

modem/dongle at same price

Since Telia price reduction, Telenor is the

only telco who provides premium price tariffs

Value for Price Strategy: 3 months notice period SIM Only offers

shown Offers all size of bundles, from small to

large Price leader (more GB at the same

competitors price) except for 40GB and <3GB tariffs

Market share (as % of customers, excluding MVNO)Sample: 3 Sweden, Telenor, Telia, Tele2

Note: Exchange Rate SEK to Euro = 0,1086


No Dongle

71% 150%4.6€

GB

Plan Price

R² = 0,487R² = 0,7777

5 €

15 €

25 €

35 €

45 €

55 €

65 €

75 €

0 10 20 30 40 50 60

Tele2 Telia Telenor 3 Sweden

100

Telia: huge prices reduction (compared to Dec’13)

• Price per GB reduced for all ranges’ tariffs


O2 & 3Sweeden: huge prices increase

• Price per GB increased

• Data allowance decreased

3Ireland: 100GB tariff reduced to

60GB data allowance at +10 €


Sweden market

More rational market compared to Dec’13

All the operators compete on price except Telenor

‘12 ‘13

45%

‘12

26% 26%

‘13 ‘12

17% 17%

‘13 ‘12

11% 12%

‘13

46%


4

5

3 34

9

3 3

4

3 Sweden Tele2 Telenor Telia



Eu

ro/G

B

Analyzed Plans

3.8 Sweden - Data Plans

Sample: 3 Sweden, Telenor, Telia, Tele2


LTE

3G

R² = 0,8397R² = 0,8591

€0

€2

€4

€6

€8

€10

€12

0 10 20 30 40 50 60

3 Sweden Telenor Tele2 Telia

GB

€/GB

71% 150%4.6€

3G

LTE

Dec’13

Jun’14

O2 & 3Sweeden: huge price per

GB increased


- 4G - 3G - 4G - 3G - 4G 5,5 - 3G - 4G 10,75 - 3G - 4G 5,5 10,75 - 3G

Operator

Average

2H13 1H14- 4G 3,7 - 3G - 4G 5,6 5,40 - 3G - 4G 5,6 3,58 - 3G - 4G 3,7 3,24 - 3G 2,58 - 4G 4,6 4,07 - 3G 2,58

Operator

Average

2H13 1H14- 4G - 3G - 4G 4,2 4,06 - 3G - 4G 5,0 2,16 - 3G - 4G - 3G - 4G 4,8 3,11 - 3G

Operator

Average

2H13 1H14- 4G 1,0 1,32 - 3G - 4G 3,7 3,61 - 3G - 4G 1,29 - 3G - 4G 0,7 1,14 - 3G 1,02 - 4G 1,3 1,51 - 3G 1,02

Operator

Average




3.8 Sweden - Smartphone Plans


Str

ate

gy o

utl

ine


Exchange Rate SEK to Euro = 0,1086*Source: Merrill Lynch Global Wireless Matrix

No Device included

GB

R² = 0,5774

R² = 0,886

10 €

20 €

30 €

40 €

50 €

60 €

70 €

80 €

0 5 10 15 20

3 Sweden Telia Telenor Tele2Plan Price

Premium Price Strategy:

24 months retention SIM Only offers

shown

Small-Medium allowance plans increased

up to 20 GB (compared to Dec’13)

Additional services:

Headphones

Spotify (3 months) for free

Storytel

Competitive Prices strategy:

No retention SIM Only offers shown (30 days contract)

Lower prices than the direct competitor Telia

Telia and Tele 2 continue to keep the same relative positioning in terms of offered data allowance

Premium Price strategy:


Higher price on all the covered allowance data plans (no 20GB tariff)

No customer retention or minimum engagement term

Flex family offers are provided with extra charge in terms of cost per GB (up to 8 device on the same subscription)

Price Leadership Strategy: 1 month notice period SIM Only offers

shown Premium price for 20GB data allowance

(It was the first operator offering unlimited voice and 20 GB/m Dec’13)

All unlimited voice in plans (10,000 voice minutes in Dec’13 analysis)

No additional services included

71% 150%4.6€

Telia & Tele2: huge prices reduction (compared to Dec’13)

• Price per GB reduced for all ranges’ tariffs


3Sweeden: huge prices increase

• Price per GB increased

• Data allowance decreased

Sweden market

More rational market compared to Dec’13

Full 4G Market

Telia: For all the summer

3GB instead of 2GB


‘12 ‘13

45%

‘12

26% 26%

‘13 ‘12

17% 17%

‘13 ‘12

11% 12%

‘13

46%


45

4 4

4

5

4 4

3 Sweden Tele2 Telenor Telia


3.8 Sweden - Smartphone Plans




Eu

ro/G

B

Analyzed Plans

€/GB LTE

3G

R² = 0,7311R² = 0,9812

€0

€5

€10

€15

€20

€25

€30

0 5 10 15 20

3 Sweden Tele2 Telia Telenor

GB

71% 150%4.6€

3G

LTE

Dec’13

Jun’14


- 4G 22,3 27,04 - 3G - 4G 16,24 - 3G - 4G 16,7 16,24 - 3G - 4G 11,1 16,24 - 3G - 4G 17,8 18,94 - 3G

Average

Operator 2H13 1H14- 4G 9,8 10,82 - 3G - 4G - 3G - 4G 11,2 - 3G - 4G - 3G - 4G 9,1 10,82 - 3G

Average

Operator 2H13 1H14- 4G 6,2 6,32 - 3G - 4G 7,22 - 3G - 4G 8,0 7,22 - 3G - 4G 3,3 6,19 - 3G - 4G 6,8 6,74 - 3G

Average

Operator 2H13 1H14- 4G 3,02 - 3G - 4G 3,88 - 3G - 4G 3,88 - 3G - 4G 3,6 4,02 - 3G - 4G 3,6 3,70 - 3G

Average

Operator



3.9 Spain - Data Plans


Str

ate

gy o

utl

ine

Market leader


4G offered in all tariffs Competitive pricing with 1 GB/m offers

(slightly above competition) Premium price in 7,5 GB/m offered with a

daily data traffic allowance of 250 MB No additional services

Competitive prices tariffs:

12 month retention SIM Only offers shown (30 days contract)

4G offered in all not prepaid offers Small to large bundles offered (1 GB/m to

10 GB/m) No additional services

Competitive offers:


4G offered from 3GB bundles (+1GB at the same price of previous 2GB tariff of Dec’13)

No additional services

Simple no frill competitive tariff:


10,89 €/m for 1,2 GB/m (+200MB at the same price of previous 1GB tariff of Dec’13)

4G technology



Sample: Orange, Movistar, Vodafone,Yoigo


No Dongle

64%111%3.7€

GB

R² = 0,909

R² = 0,9032

5 €

15 €

25 €

35 €

45 €

55 €

65 €

0 2 4 6 8 10

Vodafone Movistar Orange YoigoPlan Price

Spanish market

All competitors provide 4G technology

No operator providing > 10 GB

3Movistar: 3G proprietary network +

Yoigo LTE networkOrange: Same Dec’13 price but

with +2GB data allowance

Movistar : Prepaid offer

at 1GB

Vodafone: Same

offer (overlapped)

Vodafone: Same

offer (overlapped)

Yoigo: Same Dec’13 price

but with +200MB data

allowance


‘12 ‘13

37%

‘12

29% 27%

‘13 ‘12

22% 24%

‘13 ‘12

7% 8%

‘13

39%


23

4

1

2

3

4

1

Movistar Orange Vodafone Yoigo



Eu

ro/G

B

Analyzed Plans

€/GB

3.9 Spain - Data Plans


LTE

3G

GB

R² = 0,7417R² = 0,7242

€0

€2

€4

€6

€8

€10

€12

€14

0 2 4 6 8 10 12

Vodafone Movistar Orange Yoigo3G

LTE

Dec’13

Jun’14


- 4G 12,1 12,10 - 3G - 4G 11,5 10,89 - 3G 10,9 - 4G 11,0 11,00 - 3G - 4G 10,9 9,17 - 3G - 4G 11,4 10,79 - 3G 10,9

Operator

Average

2H13 1H14- 4G - 3G - 4G 7,66 - 3G - 4G 7,8 7,80 - 3G - 4G - 3G - 4G 7,8 7,75 - 3G

Operator

Average

2H13 1H14- 4G 9,2 9,20 - 3G - 4G 4,2 4,24 - 3G - 4G 4,2 4,20 - 3G - 4G - 3G - 4G 5,9 5,88 - 3G

Operator

Average

2H13 1H14- 4G - 3G - 4G - 3G - 4G - 3G - 4G - 3G - 4G - 3G

Operator

Average

64%111%3.7€




3.9 Spain - Smartphone Plans


Str

ate

gy o

utl

ine

Premium price strategy and simple portfolio


Spotify premium discount

Competitive price strategy, especially due to latest tariff changes with higher allowance


30/60 GB Cloud storage (according to data plan)

3 months special access to Familiar +, Liga and Napster

Multisim service included in top tariff (fee for each line)

Competitive price strategy

12 months retention SIM Only offers shown

More GB offered at the same price of competitors (5GB at 39,95€ compared to 4GB of Yoigo and Vodafone)

Cloud 25GB + additional 500MB traffic include for device-cloud sharing

International unlimited calls to fixed lines

Competitive pricing no frills strategy


Price reduction to align to current market average


Market share (as % of customers, excluding MVNO)*Sample: Orange, Movistar, Vodafone,Yoigo

Note: the monthly prices and consequently the GB prices include IVA (21%)


No Device included

GB

Plan Price

R² = 0,908

R² = 0,6464

20 €

25 €

30 €

35 €

40 €

45 €

50 €

55 €

60 €

0,5 1,5 2,5 3,5 4,5 5,5

Vodafone Movistar Orange Yoigo

Yoigo: New tariff of 4 GB at 39€,

overlying Vodafone same price and

data allowance option

Vodafone:

All tariffs’ prices decrease accompanied

by data allowance increase

Yoigo & Orange:

prices reduction in the 2GB data allowance

offers ( of about -10 €)


‘12 ‘13

37%

‘12

29% 27%

‘13 ‘12

22% 24%

‘13 ‘12

7% 8%

‘13

39%

64%111%3.7€


1

3 3 31

3 3 3

Movistar Orange Vodafone Yoigo



3.9 Spain - Smartphone Plans


Note: the monthly prices and consequently the GB prices include IVA (21%)

LTE

3G

GB

Eu

ro/G

B

€/GB

R² = 0,9643

R² = 0,9527

€5

€15

€25

€35

€45

€55

0 1 2 3 4 5 6

Vodafone Movistar Orange Yoigo

3G

LTE

Dec’13

Jun’14

Orange : about -2 € Price/GB

compared to Yoigo and

Vodafone tariffs of 4GB

Yoigo & Vodafone

Same offer (overlapped)

2H13 1H14- 4G 28,2 28,33 - 3G - 4G 21,2 15,48 - 3G - 4G 33,7 16,00 - 3G - 4G 25,5 28,83 - 3G - 4G 23,50 - 3G

Average

Operator 2H13 1H14- 4G - 3G - 4G 7,99 - 3G - 4G 15,0 9,75 - 3G - 4G 9,75 - 3G - 4G 15,0 9,16 - 3G

Average

Operator 2H13 1H14- 4G - 3G - 4G - 3G - 4G 8,33 - 3G - 4G - 3G - 4G 8,33 - 3G

Average


Average

Operator


64%111%3.7€



3.10 Denmark - Data Plans


Str

ate

gy o

utl

ine

Premium prices market leader


Aligned with Telenor in the 1GB/m tariff Premium prices for other tariffs Missing form very large bundles market Play Music - 20 million. songs for free Hotspot - Wireless Internet for free over

700 locations in Denmark. Data Sharing - Get an extra SIM card

Competitive offer prices in small medium data bundles


4G offered on all tariffs Discouraging premium prices on larger

bundles Lower prices for old customers Wimp Musik service

Competitive offers in small medium data bundles. Very Large bundle provided


100 GB/m and 500GB/m provided Spotify service included HBO free for 3/6/12 months according to

data planCompared to Dec’13 the only portfolio change has been offering at the same previous 10GB tariff price, 20GB/m data allowance

Price leadership in all data bundles. Very Large bundle provided


200 GB/m provided at same Telia price but with twice Telia GB allowances

Multi sim service Compared to Dec’13 the portfolio changes

have been offering at the same previous 40GB tariff price, 50GB/m allowance and eliminate ulimited data option


Note: Exchange Rate Krone to Euro = 0,1340*Source: Merrill Lynch Global Wireless Matrix

No Dongle

GB

61% 150%3.8€

Plan Price

R² = 0,8573

R² = 0,8251

0 €

10 €

20 €

30 €

40 €

50 €

60 €

0 5 10 15 20 25 30 35 40 45 50

Telenor Telia TDC 3 Denmark

100 200 500

Denmark market

Market characterized by very large data bundles

Not dynamic in terms of price changes

Telia:

Same Dec’13 offer at 26,69 €

but with +10GB data allowance

3 Denmark: +100 GB/m

3Denmark: Unlimited Data LTE allowance for

54 (1.000 GB allowance) not for sale anymore

3Denmark: New Tariff of 5GB allowance at

13,27 € overlapping Telia same option

3Denmark:

Same Dec’13 offer at 33 € but with

+10GB data allowance


‘12 ‘13

39%

‘12

24% 22%

‘13 ‘12

17% 18%

‘13 ‘12

10% 12%

‘13

41%


1

2 4 45

3

4 4

5

TDC Telenor Telia 3 Denmark



€/GB

3.10 Denmark - Data Plans


Note: Exchange Rate Krone to Euro = 0,1340

LTE

3G

GB

Eu

ro/G

B

R² = 0,9808R² = 0,974

€0

€2

€4

€6

€8

€10

€12

€14

0 10 20 30 40 50

Telia Telenor TDC 3 Denmark

61% 150%3.8€

100 200 500

3G

LTE

Dec’13

Jun’14


- 4G - 3G 13,3 13,27 - 4G 13,3 13,27 - 3G - 4G 6,6 - 3G - 4G 9,3 9,25 - 3G - 4G 9,7 11,26 - 3G 13,3 13,27

Operator

Average

2H13 1H14- 4G 5,8 5,76 - 3G - 4G 3,7 3,73 - 3G - 4G 2,65 - 3G - 4G 2,65 - 3G - 4G 4,7 3,70 - 3G

Operator

Average

2H13 1H14- 4G 2,7 2,67 - 3G - 4G - 3G - 4G 2,7 - 3G - 4G 1,7 1,73 - 3G - 4G 2,4 2,20 - 3G

Operator

Average

2H13 1H14- 4G - 3G - 4G 2,0 1,98 - 3G - 4G 0,3 0,61 - 3G - 4G 0,5 0,43 - 3G - 4G 0,9 0,95 - 3G

Operator

Average




3.10 Denmark - Smartphone Plans


Str

ate

gy o

utl

ine

13%26% 20%41%


No Device included

Monthly


Note: Exchange Rate Krone to Euro = 0,1340*Source: Merrill Lynch Global Wireless Matrix

GB

R² = 0,3763R² = 0,6274

10 €

15 €

20 €

25 €

30 €

35 €

40 €

45 €

50 €

55 €

0 2 4 6 8 10 12 14 16 18 20

Telenor Telia TDC 3 DenmarkPlan Price

Premium price market leader No retention SIM Only offers shown (30

days contract) Premium price in unlimited voice tariff

(same Telia price with 10 GB vs 100GB) Play Music - 20 million. songs for free TDC Mobile security service Hotspot - Wireless Internet for free over

700 locations in Denmark. Data Sharing - Get an extra SIM card Share plans are offered (surcharge apply)

Competitive offers price No retention SIM Only offers shown (30

days contract) Incremental competitive offers in

unlimited voice tariff (1/5/10/20 GB allowance offered)

4G offered on all tariffs Wimp Musik service (surcharge apply)

Competitive offer with unlimited voice. Very large data bundle provided No retention SIM Only offers shown (30

days contract) Overlapping Telenor strategy in 5 and 20

GB/m (same price) 100 GB/m only provider (3 Denmark

doesn’t offer anymore that data allowance) Roam like home , mobile insurance and

HBO free for12 months with top tariffs Spotify service included Share plans are offered (surcharge apply)

Price leadership in all data bundles. Very large bundle provided


New 20 GB/m offer as Telia and Telenor substituting previous 100GB/m offer

No additional service Overlapping Telenor strategy in 5 and 10

GB/m (same price)

61% 150%3.8€

100

Denmark market

Market characterized by very large data bundlesTDC from 1 to 2 tariffs:

• 5GB allowance at 46,77 €

• 10GB allowance at 53,47 € (considering that in

Dec’13 only 2GB offered at the same price)

3 Denmark major changes:

• New tariff of 2GB/m at same price of previous 1 GB

• 100GB/m allowance reduced at 20GB/M at same price

(overlapping Telia and Telenor consolidated tariffs

‘12 ‘13

39%

‘12

24% 22%

‘13 ‘12

17% 18%

‘13 ‘12

10% 12%

‘13

41%


23 3

52

3 3

5

TDC Telenor Telia 3 Denmark



€/GB

3.10 Denmark - Smartphone Plans


Note: Exchange Rate Krone to Euro = 0,1340

Analyzed Plans

LTE

3G

GB

Eu

ro/G

B

R² = 0,9659R² = 0,9523

€0

€5

€10

€15

€20

€25

€30

0 10 20 30 40 50 60 70 80 90 100

Telia Telenor TDC 3 Denmark

61% 150%3.8€

3G

LTE

Dec’13

Jun’14


- 4G 26,8 - 3G - 4G 24,0 23,99 - 3G - 4G - 3G - 4G 21,3 13,97 - 3G - 4G 24,0 17,31 - 3G

Average

Operator 2H13 1H14- 4G 9,35 - 3G - 4G 5,3 5,33 - 3G - 4G 5,3 5,33 - 3G - 4G 4,8 4,80 - 3G - 4G 5,2 6,20 - 3G

Average

Operator 2H13 1H14- 4G 5,35 - 3G - 4G 4,0 - 3G - 4G - 3G - 4G 2,7 2,67 - 3G - 4G 3,3 4,01 - 3G

Average

Operator 2H13 1H14- 4G - 3G - 4G 2,0 2,00 - 3G - 4G 1,3 1,27 - 3G - 4G 0,4 2,00 - 3G - 4G 1,2 1,64 - 3G

Average

Operator

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GB Price Benchmark_June2014

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