Monthly prices are 2-3x higher and gigabyte prices are 5-6x higher in markets with only 3 mobile network operators.
The effective competition in markets with 4 mobile network operators not only leads to much lower mobile prices, but as well to substantially lower fixed broadband prices. In markets with only 3 mobile network operators, consumers not only pay 3x more for mobile plans with 100 gigabytes they also pay 60% more every month to buy fixed broadband plans with Gigabit speeds.
5G fixed wireless access (FWA) broadband plans are marketed and priced as equal or better alternatives compared
to non- pure fibre based broadband plans. In 9 out of 50 countries (e.g., in the UK and Switzerland) plans with the
lowest monthly price, for 100 Mbit/s download speed, were 5G FWA rather than fixed broadband plans.
While broadband prices are higher in more expensive countries mobile prices are not. Mobile monthly prices are, in
average, 2-3 times lower in 4 vs. 3 MNO markets.
4G&5G smartphone plan prices – for new contracts – continued to fall across most EU and OECD countries despite near double-digit inflation figures. The near-double-digit inflation in 2022 had a moderate price increase effect in markets where only 3-MNOs are present while it had no significant impact in markets where 4 MNOs are present. In almost all 4-MNO markets monthly prices fell or were flat despite an average inflation of ~9%.
What are the factors that significantly affect mobile prices? Market concentration has a statistically significant effect on mobile prices. The lower the market concertation (HHI) the lower price. The number of mobile network operators (MNOs) has an even stronger statistically significant effects on mobile prices. The higher the number of MNOs the lower the price. The presence of a maverick (disruptive firm) has as well a significant lowering effect on mobile prices.
Canada has among the highest wireless prices in the world. The merger of Rogers and Shaw, if approved as notified, will be the final nail in the coffin of infrastructure-based competition in Canada. The only effective remedy for the merger is the upfront creation of a new maverick mobile network operator.
4G and 5G prices from 179 operators in 51 European, American, Asia Pacific, Middle East and African countries. Who are the operators with the highest and lowest monthly prices in the world?
Canada has, if not the highest, among the highest wireless prices in the world. The minimum monthly price for a smartphone plan
that includes 20 gigabytes in Canada is the highest among 51 European, American, Asia Pacific, Middle East and African countries. Consumers in Canada pay 7x more every month than consumers in France for 20 gigabytes.
What are the factors that determine mobile prices? Market concentration (no. of MNOs) has a statistically significant effect on 4G&5G monthly and gigabyte prices. The higher the no. of MNOs the lower the price.
Elisa Finland had overall the most competitive 4G&5G connectivity monthly prices in 2H2020 among 168 mobile network
operators present in 48 European, American, Asia Pacific and African countries.
The share of smartphone, mobile and wireless broadband plans with unlimited data volume continued to grow, gigabyte
allowances of finite data volume plans continued to grow – but overall monthly and gigabyte prices continued to fall. Monthly prices of smartphone and wireless broadband plans with unlimited data volume fell in EU in 2H2020!
Mobile data prices in Latin American 4-MNO markets are competitive and broadly on par with European and other OECD 4-MNO market prices. Mobile data prices in Latin American 3-MNO markets are sub- or non-competitive (i.e. significantly higher than 4-MNO market prices).
Monthly prices of plans with unlimited data volume and as well gigabyte prices of plans with data caps continue to be significantly higher in the 3-MNO German versus the 4-MNO Italian, French, Spanish and UK markets.
The share of smartphone and mobile/wireless broadband plans with unlimited data volume continues to grow, gigabyte allowances of finite data volume plans continue to grow – but overall monthly prices continue to fall.
