5G Pricing So Far is Not Very "Innovative"

It always has seemed possible that 5G could lead to innovations in consumer service pricing. Though "quality" differentiation is discouraged because of network neutrality concepts, fixed network and mobile network value propositions have differed significantly.

Fixed networks differentiate based on speed tiers; mobile networks differentiate on usage allowances. Though 5G might seem to make it easier for mobile operators to shift to "speed tiers," that has not generally happened.

Nor, in more prosaic terms, have 5G prices consistently been differentiated from 4G prices.

Three possible retail 5G pricing positions are conceivable: higher than 4G; the same as 4G; lower than 4G. In the early days of 5G service, various mobile operators have adopted all three forms of early pricing for 5G services. 

Mobile operators have a few non-price tools to change value perceptions. They can increase or otherwise vary usage allowances; create speed tiers as is done on fixed networks and bundle new features. And again, various operators have opted to try one or more of those techniques.  

source: Arthur D. Little 

Relatively few mobile operators have instituted speed tiers with differentiated pricing. Vodafone, O2, Chunghwa Telecom, Elisa and FarEasTone are among the mobile operators to do so. 

Consumer internet access plans in the fixed and mobile network domains have not changed much over the last couple of decades. Fixed network services are differentiated by speed; mobile plans differ by data allowances. 

One clear example is a shift in mobile data pricing from “amount you can use” to “how fast do you want it?” That would allow mobile service providers to create tiered pricing plans that are based on “speed” rather than “data allowance.” The notion is that consumers more easily can see the value of “faster or slower” compared to “more or less.”

So far, few mobile operators have shifted from usage allowances to speed tiers. 

In modified form, both AT&T and Verizon offer speed-differentiated plans, in the form of different packages providing access to the fastest millimeter wave service.  

More common are efforts to upsell plans based on additional features, such as access to video streaming services, bundled with 5G access.