Developing Competitive Mobile Broadband Tariffs for Data-Only SIMs in the SoHo Segment

1. Context

This project focused on updating mobile broadband (MBB) tariffs for data-only SIMs, targeting the small office/home office (SoHo) segment of B2B customers. The goal was to align data allocations and pricing with competitive market offerings while driving revenue growth and improving or maintaining ARPU (average revenue per user).

The pricing update was designed to adapt to evolving market dynamics, where the cost per MB of mobile data decreases as newer network generations (e.g., 4G LTE) improve efficiency. Encouraging customers to adopt higher data plans was key to increasing revenues and volumes while staying competitive.

2. Challenge

Key challenges included:

• Balancing key financial metrics: In a highly commoditised market, aligning revenues, ARPU, and volumes required strategic trade-offs.
• Competitive market dynamics: Major players offered similar coverage and capacity, making differentiation difficult.
• Encouraging tariff migration: The objective was to shift customers to higher data tiers at slightly higher price points while maintaining affordability and market relevance.

For example, the tariff was adjusted from £20 for 20GB and £15 for 15GB to £20 for 25GB and £15 for 20GB to encourage customers to opt for a higher-tier plan rather than choosing a lower data tier. This approach aimed to sustain ARPU while also driving higher sales volumes and increased data consumption.

3. Approach

The project followed a structured, data-driven approach:

• Market research: Conducted a competitive analysis of tariffs across key MNOs, MVNOs, and B2B/SoHo segment competitors.
• Stakeholder alignment: Engaged with sales teams to validate assumptions and gather real-world insights into customer needs.
• Business case development: Collaborated with Finance to create revenue and volume forecasts, ensuring financial viability.
• Governance approval: Presented the business case to the Pricing Governance Board to secure approval.
• Implementation planning: Worked with platform teams to implement changes, define a delivery plan, and set a clear launch date.
• Proactive monitoring: Continued competitor tracking throughout the process, enabling agile adjustments before launch.

4. Role & Achievements

As Pricing and Propositions Manager, I led the end-to-end process, including:

• Conducting market research to design a competitive pricing strategy.
• Aligning with Finance on key assumptions and revenue projections.
• Engaging with Sales teams to ensure customer-focused pricing.
• Securing governance approval through business case presentation.
• Overseeing implementation, ensuring a smooth tariff rollout.

5. Results

The project delivered:

• A successful launch of updated data-only SIM tariffs for mobile broadband customers.
• Clear pricing differentiation, positioning the company competitively while maintaining revenue growth and ARPU stability.
• Standardised airtime pricing for mobile broadband SIMs, allowing seamless integration with router-inclusive tariffs.