Insights
Learn, ideate and collaborate on the biggest innovation opportunities

5G service plans and pricing trends in Asia, H1 2022

Asia


This report is based on the benchmark of 5G service plans across the Asia Pacific region. The objective is to share insights into trends and innovation opportunities as 5G grows in adoption across the region. 5G development is quite varied, with some countries having extensive 5G infrastructure while others are in their initial rollout phase with limited 5G coverage. The key trends:

  • Close to a quarter of the total 5G service plans are enterprise-focused
  • Only 15% of total 5G plans in noted countries offer unlimited access
  • A premium 5G consumer plan is at least 7X more expensive compared to entry-level plans
  • Indonesia has the lowest average price per GB of 5G data across the benchmarked Asian countries

The report talks about these key trends, providing deeper insights into them.

Less than a quarter of all 5G plans are enterprise-focused

The expected key driver and growth engine for 5G are enterprises. However, the study of all service plans across service providers revealed that only 23% are enterprise-focused, signifying the lack of maturity in the used cases and applications for enterprises. In contrast, we see significant plans and bundles with entertainment, gaming and other applications targeted at consumers.

Figure 1. Percentage of enterprise plans of the total 5G service plans

Some of the other key trends include:

  • Approximately 70% of all 5G service plans from Philippines’ leading mobile operators target enterprise or B2B consumers, significantly higher than the average (23%) (Figure 1).
  • Cheapest enterprise plan is USD 7.2/month offered by the Philippines telco, PLDT, offering 20 GB monthly data to postpaid accounts. However, the most expensive premium enterprise plan is from the Singapore telco, Starhub. The 5G Biz+ Mobile Value Pro plan provides 130 GB monthly data at USD 157 with a lock-in of 24 months.
  • Service plans for enterprise/B2B users offer larger data bundles and devices such as mesh routers for better connectivity across multiple devices. These plans also provide a 5G rocket WiFi device with many features, including lag-free connection for high-resolution content streaming and multi-device connectivity of up to 10 devices, a LAN port, etc. (Figure 2).
  • Telstra’s (Australia) Business Plan offer 1 TB of data for USD 58 per month and a Telstra 5G modem.

PLDT’s Enterprise 5G postpaid and broadband plans range from USD 23 to USD 63 per month, providing up to 200 GB of data.

Figure 2. B2B and Enterprise Plans from Telstra and PLDT offer
5G modem with large data bundles

Unlimited 5G data plans are gaining popularity

38% of mid and high-value plans offer unlimited data, yet unlimited plans represent 15% of total 5G service plans (Figure 3).

Figure 3. Percentage of unlimited 5G service plans offered by noted countries
Note: % indicates the share of unlimited 5G plans to total 5G plans in the country
  1. About 23% of 5G service plans from operators in South Korea are unlimited data plans.
    • “We thought the unlimited plans would be essential for 5G services, as data use is expected to increase.” – Park Hyun-Jin, 5G Marketing Chief at KT Corp
  2. Australian operators Optus and Vodafone and Thailand operator AIS succeed by;
    • offering unlimited plans,
    • targeting home broadband users,
    • and providing 5G FWA (Fixed Wireless Access) as the alternative to fibre or other fixed broadband options such as satellite.
  3. Service providers in Philippines and Thailand offer 5G unlimited plans as a substitute for fixed broadband.
Figure 4. Unlimited 5G plans by Optus and AIS

Figure 5. Limited 5G plans by Singtel, Smart and Telstra

Average price per GB for 5G data access across the benchmarked Asian markets

The noted countries revealed huge differences in their per GB pricing for 5G data plans, with most falling between USD 0.51 to USD 0.95. Global 5G pricing trends and benchmarks

  1. Highest
    • Singapore, Australia and Japan have higher prices per GB for 5G access than other emerging Asian markets.
    • Singaporean consumers pay the highest price per GB of 5G data, at USD 1.56 per month, 1.8 times more than the median value of USD 0.85.
  2. Lowest
    • Telkomsel, the Indonesian telco, charges the lowest for 1GB of 5G data, at USD 0.34 per GB for 5G data.
Figure 6. Average cost per GB for 5G data access

#3.1 Possible reasons behind the gap between high and low price per GB in key Asian countries

1. 5G infrastructure/resources

  • Singapore, Australia and China have one of the best 5G infrastructures in the world. Telstra, Australia’s largest telecommunications company, has installed over 2000 5G base stations, covering 41% of the country’s population.
  • In Indonesia, however, there are 12,548 out of 83,218 villages which have not been reached by 4G signals. Even so, the government is simultaneously preparing to deploy a 5G network to better prepare the ecosystem in the future.
  • Malaysia wants customers to benefit from lower costs. “Because we are not charging unnecessary cost, there will be no need for the industry to charge a premium.” – Al-Ishsal, Former Chairman of MCMC. He also added that carriers would only need to pay “a few thousand ringgit” per tower.

2. 5G signal and speed

  • Australia has a median 5G download speed of 283.56 Mbps, among the world’s best mobile speeds.
  • Japan is slightly below average on 5G Download Speed (160 Mbps from 181.5 Mbps). Additionally, many users face lower signal strength when connected to 5G, which eventually affects the 5G mobile experience.

3. Lack of 5G infrastructure, affordable devices and limited applications influence the price per GB gap between the noted countries. Many telecom service providers are lowering their tariffs to increase 5G adaptability for users.

Premium 5G service plan for consumers is at least 7X more expensive compared to entry-level plans

Service providers have positioned 5G as a premium service to bolster the ARPU. This attempt has provided some respite in what has otherwise been an intensely price-competitive market.

  • Singapore’s most expensive consumer-focused plan is 57X more costly than the cheapest service plan available. The city-state has shown an increase in SIM-only plans for consumers and enterprises.
  • TPG’s entry and mid-range SIM-only plans are easy to use with good value. The entry range includes a USD 3.6 per month SIM-only consumer plan offering 20 GB of data. The SIM-only plan focuses on senior citizens in Singapore, providing them unlimited SMS and calls for local connectivity in addition to free data roaming to 57 destinations.
  • At the high-end, the Singtel XO Plus 288 plan is a huge data bundle offering a new 5G handset with ultra-fast 5G access for USD 207 per month. Also, the XO Plus 288 plan offers a 180 GB monthly data benefit.
  • Operators in the Philippines offer limited variants for 5G service plans. The most expensive plan is just 2X the entry-level plan, with streaming included in both entry and high-level service plans.
  • Indonesia has the most expensive 5G consumer plan. Telkomsel’s 5G orbit modem offers 300 GB of data monthly and allows up to 32 users to connect. It has a lock-in period of 12 months at the rate of USD 425 per month.
Figure 7. Price gap between premium and entry-level 5G consumer service plans

#4.1 Entry-level plans offer limited data, and some with a shorter validity period

Service providers are looking at addressing the potential demand with entry-level monthly 5G service plans with some limitations, such as shorter validity periods. For example;

  • PLDT provides 20 GB monthly data at only USD 7.2 to post-paid users.
  • AIS provides 10 GB monthly data at USD 2.8 to prepaid users.

These are mainly SIM-only plans without bundled devices. Also, operators offer daily or weekly plans that come at a fraction of the cost of these monthly SIM-only plans. For instance;

  • Globe Philippines’s cheapest 5G service plan starts at USD 1.8, is valid for 3 days and offers unlimited 5G data.

Examples of selective entry-level plans can be seen below. They offer up to 20 GB of data from USD 2 to USD 5 per month:

Figure 8. Entry-level plans

#4.2 Premium plans offered higher data tiers bundled with additional benefits

  • Higher data allowance with premium 5G service plans are designed to support family members’ data usage by sharing data among multiple users (in most cases, up to 10 people).
  • KT Corp’s premium plan at USD 100, which has data sharing, offers unlimited data, texts, calls, data roaming, etc.
Figure 9. KT Corporation’s premium plan with unlimited benefits

#4.3. Streaming services came bundled with higher-value plans

  • Services like Netflix or Disney+ Hotstar attract consumers. These bundles offer 30 GB to unlimited data in the range of $30 to $70, providing 1 year of subscription to OTT platforms or 6 months of music streaming services for free.
  • These plans are among the most expensive but draw consumers in for their value-added benefits (Figure 10).
Figure 10. An example of OTT 5G data plans by AIS, Smart and Optus

Conclusion

Telecom operators are striving to deliver the best data services designed for different groups, such as entry-range for students or premium plans for families and enterprises. Providing the best 5G services to customers requires not only a perfect data plan but also coverage that can support 5G applications. Although 5G implementation requires significant capex, many operators are investing aggressively to create possibilities for the future. “Build it and we will innovate to unlock value” is the phrase that aptly captures the industry sentiment regarding 5G.

Subscribe