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Publication Date: July 2008
EVENT SPOTLIGHT
In mid-June, Telefónica’s Movistar Spain introduced unlimited mobile data flat rates in its handset Internet-browsing offering and all but one of its data-card mobile broadband Internet access price plans. To ensure data flat rates include unlimited traffic at no extra cost, Telefónica is bringing down access speeds to GRPS levels when a predetermined threshold is met, instead of charging for downloads made beyond that threshold. By using this feature, which already existed in some data flat-rate offerings in Spain, Telefónica expects to address one of Spanish mobile data users’ biggest concerns: cost control. Pyramid Research expects this move to accelerate the push for mobile Internet flat rates being made by different players in Spain, boosting data services adoption and revenue. Nevertheless, we believe this pricing strategy has risks by potentially hurting the user experience.
Author: Luis Portela
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