© REWHEEL 2019 all rights reserved | research.rewheel.fi | [email protected] | +358 44 203 2339
The state of 4G pricing 1H2019 What is wrong with competition in the Canadian, Japanese and US markets?
Rewheel research PRO study, Digital Fuel Monitor 11th release - April 2019
Gigabyte prices in 4-MNO markets continue to fall faster than in 3-MNO markets
As we have reported1 earlier gigabyte prices in 4-MNO markets have been falling faster than in 3-MNO markets.
By April 2019 the gap between the median gigabyte price of 4G smartphone plans in 3-MNO versus 4-MNO markets widened further to 113%. It was 81% during October 2018 and 55% a year ago in April 2018.
What is wrong with competition in the Canadian, Japanese and US markets?
Gigabyte prices in the Canadian, Japanese and US markets are a universe apart from prices in 4-MNO competitive large European markets or from the ultra-competitive Israeli 5-MNO market, as seen in the chart below.
The median smartphone plan gigabyte price in Canada was 24 times higher while in Japan and the US was 15 times higher than median prices in 4-MNO competitive large European markets.
Key market developments
Italian gigabyte prices continue to fall off a cliff following Iliad’s seismic launch as the new 4th MNO. The country median gigabyte price was down 56% compared to October 2018 and 87% compared to April 2018.
Dutch gigabyte prices have stopped falling after the unconditional approval of the T-Mobile and Tele2 4 to 3 merger.
1http://research.rewheel.fi/downloads/GB_prices_4_3_consolidated_vs_4MNO_markets_2013_2018_PUBLIC.pdf
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Country median gigabyte price in EU28 & OECD markets - April 2019Fully allocated country median gigabyte price of 4G smartphone plans with at least 1,000 minutes and 3Mbit/s for HD video
Fully allocated GB price: tariff retail monthly price (incl. VAT) divided by included gigabyte allowance. 3-MNO markets (25 countries), 4-MNO markets (16) Median price among all eligible plans logged in the database for country or group of countries. Unlimited plans were assinged 500 GB finite volume.
Prices: April 2019research.rewheel.fi ©
Gigabyte prices fall faster in 4-MNO markets!The median gigabyte price in 3-MNO markets is 113% higher than in 4-MNO markets (was 81% higher in 2H2018 and 55% higher in 1H2018)
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4G gigabyte prices in Canada, Japan and US vs. competitive EU 4-MNO markets - April 2019Fully allocated gigabyte price of 4G smartphone plans with at least 1,000 minutes and 3Mbit/s for HD video and country median
Fully allocated gigabyte price: tariff retail monthly price (incl. VAT) divided by included gigabyte allowance.Country median: median among all eligible plans included in the database and which are shown in this chart. Unlimited plans were assinged a finite volume of 500 GB. Plans where operators could throttled speed below 3 MBps at a defined volume (e.g. US) were not considered unlimited plans. Prices: April 2019, research.rewheel.fi ©
Canada €7.3/GB
Japan €4.6/GB United States €4.5/GB
EU 4-MNO large market€.0.35/GB
EU 4-MNOlarge market€.0.25/GB
Israel 5-MNOs€.0.20/GB
What is wrong with competition in the Canadian, Japanese and US markets?
researchRewheel
The state of 4G pricing, April 2019 – Digital Fuel Monitor 11th release 1H2019 2
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How many gigabytes 30 EUR buys in 4G smartphone plans?
By April 2019 more than 50 operators have launched 4G smartphone plans with truly2 unlimited mobile data volume in 23 out of 41 EU28 & OECD markets.
How many 4G gigabytes €5, €10, €15, €20, €25, €30, €40, €50, €60, €70 and €80 could buy in EU and OECD markets on smartphone plans?
2According to the DFMonitor methodology truly unlimited mobile data volume plans are plans without a named finite volume after which the speed is throttle below 3
Mbps or where the traffic is de-prioritized e.g. US unlimited volume plans
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How many 4G gigabytes 30 EUR buys in EU28 & OECD - April 20194G smartphone plan with at least 1,000 mins & 3Mbit/s speed for HD video per country that for 30 EUR or less includes the most GB
Unlimited volume plans
Unlimited volume plans were assinged 500 GB finite volume. Operator main, sub-brands and MVNOs included. Prices: April 2019, research.rewheel.fi ©
What is wrong with competition in the Canadian, Japanese and US markets? 30 EUR (≈ 45 CAD, 3800 YEN, 34 USD) buys consumers only 4, 9 and 12 gigabytes respectively!
EU28 OECD Country code Country name GB for €5 GB for €10 GB for €15 GB for €20 GB for €25 GB for €30 GB for €40 GB for €50 GB for €60 GB for €70 GB for €80
Country 10 30 30 40 40 40 40 40 40 40
Country 0 10 20 30 40 60 60 60 60 100
Country 0 0 0 5 7 25 25 25 25 25
Country 0 3 7 23 28 46 Unlimited Unlimited Unlimited Unlimited
Switzerland 0 0 0 10 10 Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 0 15 30 35 Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 0 0 1 2 10 20 20 22 22
Country 0 0 10 500 500 Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 0 0 0 0 0 2 5 6 15
Country 0 60 60 100 100 100 100 Unlimited Unlimited Unlimited
Country 0 0 0 10 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 0 0 0 1 7 7 20 20 20
Country 0 0 0 0 40 60 60 60 60 60
Country 15 100 100 100 100 100 100 100 100 100
Country 0 0 5 5 25 50 50 Unlimited Unlimited Unlimited
Country 0 50 60 60 60 Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 3 10 10 20 60 60 Unlimited Unlimited Unlimited
Country 0 0 1 3 6 Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 4 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 2 100 100 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 1 5 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 0 0 0 1 6 Unlimited Unlimited Unlimited Unlimited
Finland 0 0 0 4 4 Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 0 1 3 9 21 21 50 50 50
Country 0 1 1 3 5 25 Unlimited Unlimited Unlimited Unlimited
Country 0 0 0 0 5 12 30 30 30 40
Country 0 0 3 8 12 25 50 50 50 50
Country 0 0 0 3 5 10 10 30 32 40
Country 50 50 50 50 50 50 50 50 50 50
Country 0 2 8 15 25 Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 20 50 60 120 140 140 140 140 140
Country 0 0 0 0 5 10 30 Unlimited Unlimited Unlimited
Country 3 15 25 25 25 40 40 50 50 50
Country 0 2 10 15 100 Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 4 10 20 30 100 100 150 200 200
Country 0 10 10 20 20 Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 1 10 10 15 22 25 34 35 50
Country 0 0 0 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 5 7 40 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 3 10 36 36 36 36 36 36 36
Country 0 0 0 1 1 8 13 18 23 23
How many gigabytes consumers could buy in 4G smartphone plans with at least 1,000 mins and at least 3Mbps for HD video in EU28 & OECD markets? - April 2019
The state of 4G pricing, April 2019 – Digital Fuel Monitor 11th release 1H2019 3
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Gigabyte prices in mobile and wireless home broadband plans
US and Canadian median mobile broadband gigabyte prices were 6 times higher than the median price in OECD markets and 10 times higher than the median price in EU28 markets.
Japanese consumers paid nearly 5 times more than an average European for mobile broadband.
40 EUR (≈60 CAD, 5063 YEN, 45 USD) bought US, Canadian and Japanese consumers the least mobile broadband gigabytes among all 41 EU28 & OECD markets.
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Country median gigabyte price in EU28 & OECD markets - April 2019Fully allocated country median gigabyte price of 4G mobile & wireless home broadband plans with at least 3Mbit/s for HD video
Prices: April 2019research.rewheel.fi ©
Fully allocated GB price: tariff retail monthly price (incl. VAT) divided by included gigabyte allowance.Median price among all eligible plans logged in the database for country or group of countries. Unlimited plans were assinged 1000 GB finite volume.
US and Canadian median mobile broadband gigabyte prices are 6 times higher than the median price in OECD markets and 10 times higher than the median price in EU28 markets! Japanese consumers pay nearly 5 times more than an average European for mobile broadband.
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How many 4G gigabytes 30 EUR buys in EU28 & OECD - April 20194G mobile or wireless home broadband plan with at least 3Mbit/s speed for HD video per country that for 30 EUR or less includes most GB
Unlimited volume plans
Unlimited volume plans were assinged 1000 GB finite volume. Operator main, sub-brands and MVNOs included. Prices: April 2019, research.rewheel.fi ©
What is wrong with competition in the Canadian, Japanese and US markets? 30 EUR (≈ 45 CAD, 3800 YEN, 34 USD) buys consumers only 2, 10 and 10 gigabytes respectively!
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How many 4G gigabytes 40 EUR buys in EU28 & OECD - April 20194G mobile or wireless home broadband plan with at least 3Mbit/s speed for HD video per country that for 40 EUR or less includes most GB
Unlimited volume plans were assinged 1000 GB finite volume. Operator main, sub-brands and MVNOs included. Prices: April 2019, research.rewheel.fi ©
Unlimited volume plans
What is wrong with competition in the Canadian, Japanese and US markets? 40 EUR (≈ 60 CAD, 5063 YEN, 45 USD) buys consumers only 10, 13 and 20 gigabytes respectively!
The state of 4G pricing, April 2019 – Digital Fuel Monitor 11th release 1H2019 4
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How many 4G gigabytes €5, €10, €15, €20, €25, €30, €40, €50, €60, €70 and €80 could buy in EU and OECD markets on mobile broadband and wireless home broadband plans?
EU28 OECD Country code Country name GB for €5 GB for €10 GB for €15 GB for €20 GB for €25 GB for €30 GB for €40 GB for €50 GB for €60 GB for €70 GB for €80
Country 0 2 2 2 6 10 50 100 100 100
Country 0 3 25 25 25 200 200 500 500 500
Country 1 2 15 50 50 50 50 50 50 50
Country 0 0 2 2 2 13 18 18 25 30
Country 3 10 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Switzerland 0 0 0 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 0 10 20 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 1 2 2 100 100 100 100 100 100
Finland 0 0 0 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 0 4 60 60 60 100 100 100 100
Country 1 3 6 30 30 100 200 200 200 200
Country 3 6 25 50 100 1 000 1 000 1 000 1 000 1 000
Country 20 100 100 100 100 100 100 100 100 100
Country 0 15 50 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 0 5 30 30 30 40 40 40 40
Country 0 0 0 4 4 60 60 60 60 60
Country 0 0 1 5 5 25 50 150 150 Unlimited
Country 0 2 2 20 20 Unlimited Unlimited Unlimited Unlimited Unlimited
Country 1 5 10 60 150 150 150 150 150 150
Country 0 0 15 25 25 750 750 750 750 750
Country 5 15 30 30 30 30 30 30 30 30
Country 10 20 100 100 100 100 100 100 100 100
Country 0 5 20 100 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 60 80 80 80 80 80 80 80 80
Country 0 0 3 6 10 20 30 50 50 50
Country 0 10 20 22 22 40 40 Unlimited Unlimited Unlimited
Country 25 100 120 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 2 2 15 15 100 100 100 100 100
Country 0 30 30 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 2 100 100 100 100 100 100 100 100
Country 0 0 1 5 5 Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 0 7 7 15 50 100 300 300 300
Country 0 1 1 3 60 240 240 300 300 300
Country 0 20 200 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 0 5 5 30 30 30 30 30 30
Country 20 20 50 50 50 Unlimited Unlimited Unlimited Unlimited Unlimited
Country 1 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Country 0 2 5 20 20 50 100 100 100 300
Country 0 10 12 12 22 22 350 350 350 350
Country 1 5 20 20 100 200 800 800 800 800
Country 20 50 Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
How many gigabytes consumers could buy in 4G mobile broadband or wireless home broadband plans with at least 3Mbps for HD video in EU28 & OECD markets? - April 2019
The state of 4G pricing, April 2019 – Digital Fuel Monitor 11th release 1H2019 5
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The country median gigabyte price while it is an important price metric it is not the only price metric that matters. The price of entry level plans (e.g. 20 GB) or how many gigabytes 20 EUR buys determines a market’s affordability.
Gigabyte prices are even higher in the United States and Japan in mass market affordable plans that cost 30 EUR or less (≈45 CAD, 3800 YEN, 34 USD) compared to expensive plans that packed more gigabytes, hurting the most vulnerable consumers. In competitive EU 4-MNO markets consumers enjoy low gigabyte prices even in very affordable plans that cost €20 or less. In Canada we found only three plans that cost 30 EUR or less in April 2019.
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Country lowest price for 4G smartphone plan with at least 20 gigabytes - April 2019Country lowest price for a 4G smartphone plan with at least 1,000 minutes, 20 gigabytes and 3Mbit/s for HD video
Tariff retail monthly price (incl. VAT). 3-MNO markets (25 countries), 4-MNO markets (16) Grey and orange bars depict median price among 3-MNO and 4-MNO country minimum prices.
Prices: April 2019research.rewheel.fi ©
Monthly plan prices for 20 GB smartphone plans are in average 59% more expensive in 3-MNO vs. 4-MNO markets.The Canadian and US are outlier 4-MNO markets!
GB prices are lowest in Finland because smartphone plans pack unlimited volume. However, Finns must pay a minimum of 27 EUR per month to buy a 4G plan that supports HD video streaming, hence in that respect Finland behaves like a typical 3-MNO market where monthly prices are considerably higher.
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How many 4G gigabytes 20 EUR buys in EU28 & OECD - April 20194G smartphone plan with at least 1,000 mins & 3Mbit/s speed for HD video per country that for 20 EUR or less includes the most GB
Unlimited volume plans were assinged 500 GB finite volume. Operator main, sub-brands and MVNOs included. Prices: April 2019, research.rewheel.fi ©
GB prices are lowest in Finland because smartphone plans pack unlimited volume. However, 20 EUR only buys a 4G smartphone plan with 4 gigabytes, hence in that respect Finland behaves like a typical 3-MNO market where monthly prices are considerably higher.
Consumers buy 7x less gigabytes in 3-MNO markets when they spend 20 EUR than in 4-MNO markets.The Canadian and US are outlier 4-MNO markets!
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4G gigabyte prices in Canada, Japan and US vs. competitive EU 4-MNO markets - April 2019Fully allocated gigabyte price of 4G smartphone plans with at least 1,000 minutes and 3Mbit/s for HD video that cost 30 EUR or less
Fully allocated gigabyte price: tariff retail monthly price (incl. VAT) divided by included gigabyte allowance.Country median: median among all eligible plans included in the database and which are shown in this chart. Unlimited plans were assinged a finite volume of 500 GB. Plans where operators could throttled speed below 3 MBps at a defined volume (e.g. US) were not considered unlimited plans. Prices: April 2019, research.rewheel.fi ©
Canada €6.7/GBJapan €7.3/GB
United States €9.6/GB
Large EU 4-MNO market €.0.31/GB Israel 5-MNOs €.0.20/GB
What is wrong with competition in the Canadian, Japanese and US markets?
Large EU 4-MNO market €.0.25/GB
The state of 4G pricing, April 2019 – Digital Fuel Monitor 11th release 1H2019 6
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Context Rewheel’s Digital Fuel Monitor bi-annual releases have been tracking mobile data prices in the EU28 & OECD mobile markets
since 2014. In this Digital Fuel Monitor 11th release 1H2019 we tracked and analysed the state of 4G pricing during the first half of
2019 (April 2019) and reported the main price developments compared to the second half of 2018 (October 2018) and as well
compared to the first half of 2018 (April 2018).
As with every release, in this 11th release we have collected and analysed thousands of eligible smartphone, mobile broadband
and wireless home broadband plans suitable for fixed-to-mobile broadband substitution from 41 markets in accordance with Digital
Fuel Monitor’s methodology3.
In this 11th release we analysed the gigabyte prices and ranked the EU28 & OECD countries using the maximum gigabytes for 30
EUR price metric, as we have done since 2016. Similarly, to the 10th release in this 11th release we have also ranked the EU28 &
OECD countries using the maximum gigabytes that €5, €10, €15, €20, €25, €30, €40, €50, €60, €70 and €80 could buy and as well
using the fully allocated country median gigabyte price.
In earlier releases, when calculating the fully allocated gigabyte price per country or per operator we assigned to plans with truly
unlimited volume a finite volume that was determined by the maximum finite gigabyte volume that 30 EUR bought in any of the
EU28 & OECD countries. In DFMonitor’s 8th release 2H2017 the finite volume assigned in smartphone plans with unlimited volume
was 100 gigabytes.
In DFMonitor’s 9th release 1H2018 the finite volume assigned in smartphone plans with unlimited volume was 200 gigabytes. 200
gigabyte volume was the maximum finite gigabyte volume that 80 EUR bought across the 41 markets. The reason for this change
was the fact that while 30 EUR bought during April 2018 at most a finite volume of 120 gigabytes in smartphone plans across all
EU28 & OECD countries 80 EUR bought a higher finite volume of 200 gigabytes. Hence, if we were to stick to the 30 EUR rule, we
would have created an artefact whereby truly unlimited volume plans that cost considerably less than 80 EUR (e.g. 50 EUR) could
end up having a higher fully allocated gigabyte price than more expensive plans with a large finite volume. This rule change ensured
that cheaper plans with a truly (i.e. 3 Mbps speed at all time for HD video) unlimited volume are always ranked higher than more
expensive plans with large finite gigabyte volumes.
In the 10th release 2H2018 we assigned to plans with unlimited volume the maximum finite gigabyte volume that 80 EUR bought
which was 250 gigabytes. We applied the same principle for mobile broadband and/or wireless home broadband plans. 1000
gigabyte volume was the maximum finite gigabyte volume that 80 EUR bought and was the finite volume we assigned to both
unlimited volume mobile broadband and wireless home broadband plans.
In this 11th release 1H2019 we assigned to smartphone plans with truly unlimited volume the maximum finite gigabyte volume that
80 EUR bought which was 500 gigabytes. Oister a sub-brand of Hutchison-3 the no.4 operator in Denmark sold a smartphone plan
with 500 gigabytes for 129 DKK ≈ 17 EUR as seen in the screenshot below. 1000 gigabyte volume was the maximum finite gigabyte
volume that 80 EUR bought in mobile broadband or wireless home broadband plans. Oister sold for 220 DKK ≈ 29 EUR a mobile
broadband plan with 1000 gigabytes.
3http://research.rewheel.fi/downloads/Methodology_DFMonitor_11th_release_1H2019.pdf
The state of 4G pricing, April 2019 – Digital Fuel Monitor 11th release 1H2019 7
© REWHEEL 2019 all rights reserved | research.rewheel.fi | [email protected] | +358 44 203 2339 |
In this 11th release any plan that was marketed as ‘unlimited’ where the operator named a finite volume and reserved the right to
throttle the speed below 3 Mbps or deprioritize the traffic, has been designated as a finite volume plan with a volume equal to the
named de-prioritization/throttling volume (e.g. 22, 32, 35, 50 or 75 GB for US operator unlimited plans). Unlimited plans in Digital
Fuel Monitor 11th 1H2019 release are plans without a named finite volume and a 4G speed of at least 3 Mbps at all times. TDC,
Telenor and Telia in Denmark sold smartphone plans with unlimited volume and a fair usage limit of 1000 gigabytes (one thousand).
These plans were considered unlimited plans in our methodology due to their extremely high (practically unlimited for normal use)
fair usage limit.
The state of 4G pricing, April 2019 – Digital Fuel Monitor 11th release 1H2019 8
© REWHEEL 2019 all rights reserved | research.rewheel.fi | [email protected] | +358 44 203 2339 |
Table of Contents
1 4G smartphone plans with at least 1,000 minutes and 3 Mbps speed for HD video ..................................... 10
1.1 Low-end pricing points − how many 4G gigabytes €5, €10 and €15 buys? ...................................................................... 13
1.2 Mid-range pricing points − how many 4G gigabytes €20, €25 and €30 buys? .................................................................. 15
1.3 High-end pricing points − how many 4G gigabytes €40, €50, €60, €70 and €80 buys? ................................................... 18
1.4 Country median gigabyte prices ....................................................................................................................................... 20
2 4G mobile broadband and wireless home broadband plans with at least 3 Mbps speed for HD video ..... 23
2.1 Low end pricing points − how many 4G gigabytes €5, €10 and €15 buys? ...................................................................... 24
2.2 Mid-range pricing points − how many 4G gigabytes €20, €25 and €30 buys? .................................................................. 25
2.3 High-end pricing points − how many 4G gigabytes €40, €50, €60, €70 and €80 buys? ................................................... 26
2.4 Country median gigabyte price ......................................................................................................................................... 28
3 What is wrong with competition in the Canadian, Japanese and US markets? ............................................ 31
3.1 Details of 4G smartphone plans in Canada, Japan, United States, France, Italy and Israel ............................................. 33
4 Price developments in the 4 to 3 consolidated Dutch market ......................................................................... 36
4.1 After the controversial 4 to 3 merger approval gigabyte prices have stopped falling in the Netherlands .......................... 36
4.2 Prices in the Dutch 4 to 3 consolidated market - October 2018 vs. April 2019 ................................................................. 37
The state of 4G pricing, April 2019 – Digital Fuel Monitor 11th release 1H2019 9
© REWHEEL 2019 all rights reserved | research.rewheel.fi | [email protected] | +358 44 203 2339 |
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About Rewheel
New radio spectrum bands, 4.5G and 5G technology, unlimited mobile data plans and the Internet of Things radically change mobile
network operators’ cost, revenue and profitability dynamics. Rewheel's mission is to help operators prepare for the paradigm
shift in network and spectrum strategy, spectrum valuation, network sharing, M&A, MVNO economics and mobile data
pricing.
Founded in 2009, Rewheel is a Finland based boutique management consultancy. Our clients are mainly European mobile network
operators, telco groups, MVNO groups, sector regulators, governments, global internet firms, mobile data-centric start ups, PE and
VC investors.
We delivered management consultancy work for clients in the United Kingdom, United States, Ireland, Switzerland, Finland,
Sweden, Belgium, Greece, Poland, Slovenia, Hungary, Russia, Romania. Buyers of our research reports and related strategic
workshops include many companies and authorities across Europe and worldwide.
Since 2010 we have been supporting a number of European challenger mobile operators in multiband (700, 700 SDL, 800, 900,
1400 SDL, 1800, 2600, 3.5 GHz) auctions with spectrum valuation and strategic advisory services.
Network economics metrics
For comprehensive data usage, spectrum usage and capacity utilisation metrics in EU28 and OECD markets visit
http://research.rewheel.fi/networkeconomics/
Recent research reports
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For further research reports visit research.rewheel.fi To learn more about our consultancy’s profile visit www.rewheel.fi or please
contact us at [email protected] or +358442032339.