The three main operators have established the minimum speed of access to fiber in 100 megabytes after the last changes made in the offers of Movistar, Vodafone, and Orange while the rest of rivals, with the exception of Pepephone, remain anchored in the 50 megabytes as a point of departure.
As we can not know if this situation will have some kind of response from the cheaper operators in the short/medium term, we will try to analyze the incentives that they would have to double the fiber speed in the future.
The MásMóvil group has long opted for a speed of 100 megabytes through the Pepephone brand but Yoigo, the brand mainly aimed at dealing with traditional operators, has not yet responded to the speed doubling of its rivals, although it does not look like it either. that is going to be a problem at the moment if we attend to the good results in portability of the brand.
So, what incentives does Yoigo have? Many of the users with internet connection at home will not notice large differences in navigating at 50 or 100 Mbps, but the image of the operator could be affected in part by this “disadvantage”, although technically it should be relatively simple considering that Much of the infrastructure belongs to Orange, and this operator was the first to undertake speed doubling. So there would be no reason to delay the next announcement too much.
Another possible reason that could lead Yoigo to update its fiber offer is the 1 Gbps modality that has been decompensated against Vodafone and Orange, where moving from 100 to 1,000 Mbps costs 20 euros while in Yoigo it is a 30 euros supplement.
Perhaps the return to school is a good time to fine-tune an offer that is currently as we see in the image extracted from the full comparison of combined with fiber and mobile.
MásMóvil and Jazztel, after the summer
In case the fiber speed doubling is transferred to the cheaper operators, probably MásMóvil or Jazztel will be the first to show willingness. Their offers are not the cheapest or those that have better conditions, but they try to contribute something of value within the low-cost market, so they could be the most suitable to undertake the increase in speed, thus delimiting their territory of action, among the operators traditional and the cheapest.
In addition, after the summer Movistar is expected to present its new low-cost proposal through the O2 brand led by Pedro Serrahima, so waiting for that moment to give some kind of response would make sense.
The white marks of the traditional operators were created to stop the push of the virtual but at no time to cannibalize the income of the operators behind. The ARPU is in the spotlight to increase the average income per client so to receive this type of improvements is perhaps where it makes the least sense for two main reasons.
Maintaining the difference in speed between white and traditional brands is one more reason for users to end up choosing the main brand, so ending that advantage would not make much sense if they want to increase the differences to push us to pay more.
In addition, being more modest when decorating the offered combinations, seems more faithful to the philosophy of the low cost to a lower starting speed should not harm them and instead, offer to pay an extra to increase the speed optionally could be another way to increase the ARPU. In addition, doing it with a speed of 300 Mbps, step almost orphaned since the traditional ones have doubled the speed, would be compatible with maintaining the differences with the main brands.
For the time being, only Tuenti allows the fiber speed to be increased optionally, but it would not be surprising to see a similar step in Lowi or Amena, at least as a precursor to the possibility that the speed could be doubled in the future.
We close with a small summary of the offers with cheaper fiber and mobile currently extracted from the comparatively low-cost combined with all the details:
Will I guess any of the predictions? Is there a real need to increase the speed?
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