Texting and the use of mobiles for actual telephone calls has been in decline for the past couple of years. But even as SMS and old-fashioned phone chatting becomes rarer, and the use of data on smartphones continues to grow, Finnish mobile operators don’t appear worried about unlimited data plans and their bottom lines.
In other countries, it is common for mobile operators to offer flat fees for a certain number of calls and texts, but generally the most affordable plans in those countries cap the overall amount of data allowed to be transferred. Sometimes 'overage fees' are billed, and sometimes data speeds are slowed down to a trickle after the customer reaches the limit.
But in Finland all of the main mobile operators offer pricing models based on data speeds, rather than data usage.
Pekka Väisänen, Senior VP of consumer business at mobile operator DNA says that they’re well aware of the changing habits of Finnish mobile phone - and more often these days, smartphone - users.
DNA: "No plans to move toward data-based pricing"
“We’ve known for a long time that consumer behaviour is changing,” Väisänen says. “Pricing on phone and data plans were adjusted so that the consumer can decide for themselves how they want to handle their communications.”
He says the vast majority of DNA’s customers choose fixed-fee monthly plans with unlimited data.
”So far we have no plans to move toward data-based pricing,” Väisänen says. “The growth in revenue will come with the growth of the number of subscribers using smartphones.”
Echoing that sentiment is Elisa’s business director Jan Virkki, who says that their pricing schemes are based on speed, not the total amount of data usage.
“Pricing according the amount of data is not coming back,” Virkki says.
Telecoms focusing on services
It appears that Finnish mobile operators are finding new revenue sources, as well as distinguishing themselves from competitors, in new services they provide.
DNA offers a mobile television system called MatkaTV, which allows users to watch and record TV via mobile devices and computers. DNA also features the ability to rent and stream movies and has a music streaming service. Elisa and other operators offer similar services.
About 40 percent of Finns regularly watch videos or play music on their mobile phones, according to a recent survey by the Finnish Communications Regulatory Authority, just a few years ago that figure was at about 20 percent.
“TV services are an important part of the business,” Virkki says. “On-demand TV and entertainment services are based on the idea that people get to watch what they want, when they want. The mobile operator strives to ensure that service and connections are good and what’s on offer is of interest.”