Demand based pricing in action

Demand based pricing may make sense for mobile
Will demand based pricing come to Mobile?
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Disney theme parks move to demand based pricing… Hmmm…

Disney unveiled its long-expected move to demand based pricing last Saturday. The seasonal changes, which took effect yesterday, see visitor paying different prices each day depending on the demand.

At Disneyland, located in Anaheim, Calif., which attracts roughly 17 million visitors annually, single-day tickets now cost $99. Starting on Sunday, the park will charge three different prices based on the calendar. “Value” tickets, for Mondays through Thursdays during weeks when most schools are in session, will drop to $95. “Regular” tickets (most weekends and many summertime weeks) will climb to $105. “Peak” tickets (most of December, spring break weeks, July weekends) will cost $119.

Airlines and hotels have been doing this for years – ever tried to book a vacation during Christmas, New Year’s or even school holidays? Uber and Lyft also charge more when the need for ride-hailing services surges, such as New Year’s Eve.  Some folks I know paid Eu250 per night for a three-star hotel during Mobile World congress, the same room is available this week for Eu50!  Airbnb is no different.

So with so many industry’s using demand based pricing, why should the business of Internet access be so different?  First of all, not everyone wants, needs or can afford the five-star experience, that’s the reason for the star rating!

IoT and Virtual Reality (see MWC#16) were two of the very hottest topics at MWC last week, but they each have considerably different requirement when it comes to network use.  Typically, IoT requires very little bandwidth per device, however, the Virtual Reality that was only show in almost every hall requires a somewhat more.  We were quoted anything from hundreds of Mb/s up multiple Gb/s for full HD Virtual Streaming.

Throughput is not the only concern, latency is also an issue for certain devices and applications.  Some have suggested that the 2G and 3G networks will be kept around to provide service for lower-end IoT requirements.  This concept in itself may represent some form of demand-based pricing.  The main consideration in this scenario is cost of keeping each generation running – each with its accompanying services.

Innovations such as VR will provide operators with more incentive to come up with innovative pricing models.  Will true demand base pricing come to mobile?

More Here [NYT]

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