3 Austria Launches 3Web Cube: ‘Unlimited usage’ Meets HomeZone

Event Summary

February 24, 2011 – 3 Austria launches the 3WebCube, with the marketing slogan ‘We’re turning the Internet on its head’. The 3WebCube allows up to five WiFi-enabled devices to hook up to the mobile broadband network with speeds up to 6 Mbps downlink, together with an ‘unlimited’ (no cap) plan of EUR 15 per month. The 3WebCube hardware is free with a 24-month 3Data SuperFlat contract, and can be plugged into any electricity socket.

Quick Take

Analytical Summary

• Current Perspective: Moderate to 3Austria, as 3WebCube is one of the most aggressive FMS plays for some time, but comes with a high risk of network over-usage and decreasing margins for the operator. Restricting the downlink speed to 6 Mbps is no real hurdle for heavy video applications – many of which are getting more bandwidth efficient over time. 3WebCube will undoubtedly win the operator new MBB customers, but at what cost?

• Vendor Importance: High to 3Austria, as 3WebCube is intended to reassert the operator as a pricing leader in a highly competitive market, and create a buzz of ‘innovation’. However, it also comes with marketing challenges. 3Austria has been marketing a 3Flat ‘truly unlimited’ mobile broadband (MBB) service for EUR 24.99. The new EUR 15 ‘truly unlimited’ plan could trigger customer migration to the cheaper service, which will impact MBB ARPUs negatively.

• Market Impact: High on the Austrian MBB market, as the 3WebCube will undoubtedly inject further pricing pressure into a market now struggling to retain a business model for mobile broadband. 3WebCube’s marketing is also a challenge for fixed broadband providers to offset 3WebCube’s FMS appeal.

CLIENTS ONLY

Competitive Strengths and Weaknesses

Response & Recommendations

Buyer Actions

| Client access - Full report in Consumer Services Europe | More information

Top

Top