1. Cost of Mobile Communications Study
The effect of applying a comprehensive and representative benchmarking method on the ranking of the EU-28 countries
Reda Haidar, Associate consultant
December 2018

2. Purpose and scope of study

3. This study also presents network quality indicators for each country
Purpose of study
The purpose of the study is to comprehensively compare mobile telecom prices in European countries and show how Greece fares
The comparison includes pre-tax and post-tax prices for all mobile telecom services (voice, messages and data), as well as average baskets
This study also presents network quality indicators for each country
Explain comprehensive comparison
Explain average baskets
Quality indicators should be modern

4. Geographical scope of study.
The covered countries represent 98% of the EU-28 population
The countries excluded from the study are: Cyprus, Estonia, Latvia, Lithuania, Luxembourg, Malta, Slovenia
Absence of information was the reason for not reporting on this countries
The covered countries represent 98% of the EU-28 population
Source: Ovum

5. Methodology

6. This study's methodology Vs. the European Commission’s (EC)
Actual use of mobile services with official data provided by the regulators of the countries studied
The EC picks specific incomprehensive baskets that may not be representative of each country’s usage profile
Moreover, it does not include out of bundle usage or special discounts
Source: Ovum
Highlights the difference between methodologies that are based on what is offered by operators vs what is actually consumed by the customers in the European markets
The new approach, the one followed in this report, is a holistic approach as it includes full range of propositions and tariff plans (postpaid-prepaid) offered by all mobile operators
It is also based on reliable sources like Ovum, ITU and national telecom regulators
The approach is based on actual usage and actual spending and that is why it is simply closed to the consumer and not the operator
After all, it is only fair to view the market from the angle of the party targeted by the services, not the party giving them
In contrast, Ovum includes all baskets and all customers in order to derive prices-per-service and calculate a price-per-basket using the usage profile of the average Greek consumer and the average European consumer
It compares what consumers truly pay for services they actually use

7. Price per service Methodology
Source: Ovum

8. Basket comparison based on Greek average profile
To check how much would an average Greek profile spend per month in each of 21 markets under study
X minutes, y SMSs and z MBs
Source: Ovum

9. Greece’s relative position in the EU based on the weighted monthly usage of the average Greek profile

10. Greece’s relative pre-tax position in mobile pricing shows that it scores 11% less than the European average
The Greek market is on the low side of the middle band of European market as clearly indicated inside the dotted box
Greece scores 11% less than the European average
Moreover, Greece is only 0,7€ (6.5%) more expensive than the cheapest country in the middle band (Sweden), and 0,9€ (8.4%) more expensive than the most expensive country in the lower band (France).
Source: European Regulatory Telecommunication Authorities /Ovum

11. Greece’s relative post-tax position in mobile pricing shows that it scores at the European average
Greece has by far the highest VAT + telecommunications tax in the whole of the EU.
The Greek market this time is on the high side of the middle band of European market as clearly indicated inside the dotted box.
Greece however still manages to score 1% less than the European average.
Moreover, Greece is only 2,3€ (15.5%) more expensive than the cheapest country in the middle band (Sweden).
Source: European Regulatory Telecommunication Authorities /Ovum

12. Greece’s unit price-per-service position among European peers – by price range
In all three services, Greece still ranks within the middle cluster of European peers
Keep in mind that this is a relative ranking
In all three services, Greece still ranks within the middle cluster of European peers
Source: Ovum

13. Rebased Price per minute
Greece’s unit price-per-service position among European peers – by rank
In all three services, Greece still ranks within the middle cluster of European peers
Country
Rebased Price per minute
( )
Rank
Portugal
30.94 1
Romania
32.87 2
Poland
44.63 3
Bulgaria
58.08 4
Croatia
66.60 5
Italy
74.14 6
France
81.27 7
Hungary
82.83 8
Greece
84.95 9
Sweden
93.24 10
Czech
96.50 11
Germany
96.77 12
Austria
97.22 13
EU Average
100 UK
100.64 14
Denmark
111.18 15
Slovakia
114.01 16
Finland
119.53 17
Spain
126.19 18
Netherlands
160.30 19
Ireland
195.18 20
Belgium
232.95 21
Country
Rebased Price per SMS
( )
Rank
Portugal
10.83 1
Romania
11.17 2
France
16.38 3
Poland
17.39 4
Ireland
29.11 5
Belgium
38.96 6
Denmark
46.21 7
Netherlands
53.50 8
Croatia
55.31 9
Sweden
59.58 10
Bulgaria
73.69 11 UK
76.77 12
Greece
78.96 13
Czech
81.46 14
Slovakia
87.73 15
EU Average
100
Austria
141.65 16
Italy
147.15 17
Hungary
159.88 18
Finland
208.49 19
Germany
302.66 20
Spain
403.12 21
Country
Rebased Price per GB
( )
Rank
Finland
12.20 1
Poland
13.00 2
Sweden
35.14 3
Bulgaria
38.51 4
Denmark
39.65 5
Austria
43.29 6
Ireland
48.08 7
Romania
48.21 8
Italy
76.83 9
Croatia
79.22 10 UK
87.51 11
Hungary
92.87 12
EU Average
100
Czech
121.54 13
Greece
122.80 14
Spain
133.53 15
France
134.56 16
Portugal
142.72 17
Slovakia
151.93 18
Germany
166.15 19
Netherlands
202.94 20
Belgium
318.89 21
Keep in mind that this is a relative ranking
In all three services, Greece still ranks within the middle cluster of European peers
Source: Ovum

14. Rebased price-per-GB annual trend (Greece)
The fall in prices in the last three years is 73% and is one of the largest reductions in the EU
Source: Ovum

15. Mobile pricing trends in Greece (2014-2017)
Greece’s mobile pricing is consistently declining over time
Despite the economic situation over the last decade, Greece’s mobile pricing is consistently declining over time (down by 24% in the period )
Source: Ovum

16. Network quality benchmarking

17. Mobile broadband download speeds across Europe (May 2018)
Actual download speeds of mobile broadband services in Greece are above most of the European peers on the back of enhanced network investments
Greece also scores above the European average in mobile network infrastructure despite the long financial crisis

18. Mobile broadband download speeds across Europe – visualised on a map (May 2018)

19. Conclusion

20. Greece has mid-range mobile telecom services prices within the EU
Based on the amounts of services actually consumed, Greece has mid-range mobile telecom services prices within the EU
Greece scores 11% less than the European average basket in all three services in pre-tax mobile pricing.
Greece scores at the European average in post-tax mobile pricing.
Greece’s mobile pricing is consistently declining over time (-24% in period)
Users of mobile communications in Greece enjoy high- quality networks and get very good value for their money