Thursday, April 8, 2010

Orange UK - Tiered Service Plan - Productivity to the Customer and the Network

A nice example for tiered service plans comes from Orange UK (now a joint venture of Deutsche Telekom and France Telecom) – the new mobile data 9-5 and 5-9 plans for business customers (see press release here). The new plans offer a volume cap of 1GB plus unlimited volume between 9:00-17:00 or 17:00-9:00, Monday to Friday. See details here.

Nevertheless, the service is subject to "fair use" which is currently 10GB per user month - exceeding it may lead to service suspension, bandwidth limitation or moving to a different service plan (here). 

Price differentiation (per month):
  • The "Lite" plan (1GB cap) is £7.5
  • "Unlimited" is £20
  • 5-9 or 9-5 is £10.
  • Extra GB is £17 (Orange shows this number in MB. Downloading a 45 minutes TV episode will cost around £10 - be carful when using the laptop outside the unlimited periods!

This is good example of optimizing demand and supply, both in terms of subscription fees and network capacity. Implementation requires more intelligence and policy management compared to the simpler billing schemes. 


1 comment:

  1. Broadband is fast internet service which makes you connect to the worldwide very easily. Okay, it's not quite that simple Broadband in telecommunications refers to the signaling method that handles a relatively wide range of frequencies, which may be divided into channels.