The future of flat rate data tariffs

15 January 2011 |


The overwhelming majority of network vendors, operators and service providers do not believe that flat rate data tariffs will continue in a 4G world, according to a survey carried out by Juniper Research.

Its report, 4G LTE Revenue Opportunities, asks how operators will monetise LTE. An overwhelming 87.5% of respondents believe that LTE will serve to accelerate the decline of flat rate data plans; though perhaps more surprising is the fact that over 10% of respondents believe flat rate data plans will continue.

Juniper Research believes that pricing will be tiered into three levels based on usage, with a premium-level package providing a service level agreement, quality of service guarantee or guaranteed connection. Juniper Research also forecasts that LTE service revenues globally will exceed $100 billion by 2014, and that at that time the top three regions (North America, western Europe and China) will account for nearly 90% of LTE revenues.