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5G Yet to Bring Innovations Around Connectivity Pricing

July 19, 2021


Unlike its predecessor, 5G does not bring significant innovations to pricing strategies by telecom operators globally. Back in 2011, the introduction of LTE accompanied a marked improvement in data download speeds and capacity, especially when compared to existing technologies like HSDP/HSPA+, WCDMA and EVDO. Operators used that as the basis to introduce price premiums for better quality-of-service. Depending on the local market context, LTE premium over 3G services varied. At the same time, challenger operators used the opportunity to undercut incumbent pricing and gain market shares. In essence, LTE pricing had its structure around data allowance (data volume), access speed (bitrate), quality of services and value addition (with content bundling).

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