Wednesday, 11 December 2019

Speed tiering is the key to monetizing 5G, says Vodafone

By Chris Kelly, Total Telecom
Tuesday 12 November 19

Vodafone Group's CEO, Nick Read says that he hopes that incumbent operators across Europe will follow his company's example and offer tiered options for 5G subscribers

Operators should offer their customers a tiered 5G offering, allowing them to pick and pay for the speeds that suit them, in order to quickly monetize their 5G networks…

Operators should offer their customers a tiered 5G offering, allowing them to pick and pay for the speeds that suit them, in order to quickly monetize their 5G networks, according to Vodafone.

Speaking at the Vodafone Group six monthly financial briefing in London on Tuesday, Vodafone Group's CEO, Nick Read, said that operators needed to focus on speed, rather than data consumption, as a key price differentiator for their subscriber tariffs.

"When you look at 5G, we have gone for an unlimited, speed tiered service. We are emphasising that speed tiering is the way to go in order to monetize the return on investment for 5G," Read said.  

"I don't mind so much if value players don’t follow us but, ideally, incumbents should follow us on that model because it’s a way to move people up the ladder.

"Since we have launched it, 70 per cent of our customers are on middle or high tier plans. They don't all trade down to the lowest available tier because they want that high speed experience. Of course, speeds will ramp up over time," he added.  

Also in the news

Vodafone CEO: India needs to deliver a serious relief package to help save Vodafone Idea

Vodafone and Openreach to provide 500,000 FTTH connections as part of new deal

China begins research on 6G

Since you're here...

...the Telecoms industry is characterised by constant change and evolution. That's why it's crucial for telecoms professionals to keep up-to-date with what is happening. Join 35,000+ of your peers and sign up to our free newsletter service today, to be in the know about what is going on. PLUS, as a member you can submit your own press releases!

See all membership options

Please enable JavaScript to view the comments powered by Disqus.

Newsletter signup

Quickly get on board and up to date with the telecoms industry