A new study by Wireless Intelligence looks into the price elasticity of mobile pricing around the world, and has modelled price sensitivity across global mobile markets. The study found that, between 2001-2009, each US cent decrease in EPPM resulted in an average increase of 5.6 minutes calling time per month for every mobile user in the world. Total global voice minutes reached 1.6 trillion in 2010.
"While the last ten years have seen the number of global mobile connections grow fivefold, the actual usage of mobile devices has grown at a much faster rate," said Wireless Intelligence analyst and report author Calum Dewar. "The most significant factor in this relationship is the simultaneous decrease in call prices." The report highlights a number of other factors behind rising levels of mobile usage, including increasing competition between operators, new pricing strategies, and fixed-to-mobile migration.
The decline in prices was found to be more of a factor in rising mobile usage in the developing world, where MoU has more than doubled since 2001 to 295 minutes per user per month in Q4 2010 – now almost at the same level as the developed world (298 minutes).
For more detail, see here.