Slow uptake despite 'free' GPRS services in Denmark
EMC - Close
6/20/2002
According to Danish daily newspaper BerlingskeTidende the three Danish network operators, TDC Mobile, Orange and Sonofon are believed to have registered a total of approximately 25,000 active GPRS subscribers at 9 June 2002. Seen in light of the fact that all three network operators launched GPRS in January 2001, uptake has not been encouraging.
Administrative Director of Sonofon, Ulrik Bulow is quoted in the paper as saying Sonofon currently has about 10,000 active GPRS subscribers. Earlier research conducted by EMC puts this figure to probably around 3,000 as at end Q1 2002. Rival TDC Mobile, claims though there are between 20,000-30,000 GPRS telephones in use among its subscribers, active users among this figure currently amount to between 5,000-10,000. At the end of Q1 2002 EMC research put this figure down to approximately 4,000 and 2,000 active users for TDC Mobile and Orange respectively. An Orange spokesperson tactically puts current figures to be around the same level as that of its rivals, meant to be interpreted as anything between 5,000-10,000.
With more GPRS-enabled phones having become available in Q1 2002, there is no doubt active subscriber figures might have risen or doubled since EMC's research, but most observers believe that a total figure of 25,000 appears to be on the high side. A figure in the range of 15,000 active subscribers in the Danish market might be more in line with reality.
In contrast to TDC Mobile which is actively marketing its GPRS offering widely to all its subscribers, Sonofon has chosen rather to focus on the business segment to which GPRS services are offered as an integral part of its business package. It has also made the service available to its non-business customers. To the wider consumer market the strategy has been not to push the technology but rather the benefits under its mobile data concept. Orange's GPRS offering is currently available only to the business market, and comes not as a stand-alone GPRS offering but as part of the Mobile Deal business subscription. Orange expects to make its GPRS offering available to consumers in Q3 or Q4 2002. Looking at the tariffs published in the table below, it is obvious Orange's strategy is to compete on price in relation to its rivals. Not only is its subscription rate the lowest at EUR 3.2, up until 25 May 2002 the price it charged for downloading 1 MB was also the lowest until Sonofon revised its price downwards from EUR 2.7.
Subscription per month Price per MB
TDC Mobile EUR 8.6 EUR 2.7
Sonofon EUR 8.6 EUR 2.0
Orange EUR 3.2 EUR 2.4
Source: EMC research
All prices exclude VAT (25%)
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