July 23, 2009
Operator Pricing Analysis


In June and July, there have been many more deals available on contract and the average contract device headline price slipping under £25. 

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The chart below shows how operator contract deals are expanding at the same time that the average price of a device dips under £25.

Source: Mediacells Limited

This will have ramifications for the supply chain going forward; if the operators need to subsidise so heavily this will surely have an emphatic bearing on how much each opco will be prepared to pay, per unit, to the manufacturer.

At the same time there are a lot of high-end prepay devices with an 8% increase in the average prepay headline price.

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The prepay high-end device grid (right) shows just how many players are around at the moment.

It's almost the opposite to what is going on in the contract sphere with a 2% increase in deals for devices over £100 and an 8% increase in the average headline price, the price excluding airtime must-buys.