Previously, I reported that Vodafone UK is the third operator I know that has now started to offer a prepaid package for wireless broadband access that includes a gigabyte of traffic and is valid up to 12 months. When only looking at the 12 months, it would seem that this is rather a bad deal for the network operator or in other words, not a lot of revenue opportunity. However, I think quite the contrary is the case.
Let's take Austria for example: If you take a post paid contract for wireless Internet access from mobile network operator Three for example, 3 gigabytes per month are now available for 9 euros. Compared to the 15 to 20 euros others like A1 and Yesss charge for the one gigabyte per 12 months, is only a fraction. So the 12 month offers are attractive for infrequent users and travelers who would otherwise not spend anything at all, as even the 9 euros is too much for them. So it is better to get that 15 to 20 euros revenue than not getting it at all. And by doing so, your margin is much higher compared to the contract offers.
I guess a lot of people taking the 12 month prepaid offer will not fully use the gigabyte so the bottom line is even better. And for those that do, they are likely to buy a top-up, thus increasing the revenue once again. A win-win situation in any case.