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TMCNet:  Strategy Analytics: Revised OECD Telecom Price Baskets Better Reflect Consumer Usage

[March 05, 2018]

Strategy Analytics: Revised OECD Telecom Price Baskets Better Reflect Consumer Usage

The OECD concluded its review of its telecoms baskets at the end of 2017, and approved a new set of baskets, designed to reflect changing usage patterns. These changes will be implemented in the OECD Telecoms Price Benchmarking services offered by Strategy Analytics (News - Alert) from February 2018 onwards.

The 2017 update represents a significant overhaul of the baskets, many of which were last reviewed in 2010 (with some interim updates implemented in 2012 and 2014). The general approach of the OECD baskets has always been to provide a fair representation of all types of tariff structures without regard to where they are used, rather than a one-size fits all approach. This means that for each service, there are a number of baskets, to allow users to determine which baskets provide the best fit with their particular market.

Key changes in the baskets can be summarized as follows:

In the Mobile Voice baskets, the data component has been extended, to take into account increased data usage, and the number of baskets that do not include data have been reduced. Further, two baskets with unlimited voice and SMS have been introduced.

Fixed Voice baskets will no longer include international call charge tracking, reflecting the fact that international calls are increasingly handled outside of the traditional fixed voice network (e.g. through VoIP) in order to minimize costs.

Fixed Broadband baskets have been overhauled, removing the upper speed limit introduced in 2014, and extending technology coverage out to WiMax and Fixed Location LTE (News - Alert).

Mobile Broadband baskets are no longer device-specific (any basket can be used with any device). Additionally, two higher usage baskets have been added, taking usage up to a possible 50GB per month, as well as two short term baskets, to simulate short term usage.

There are no changes to the Leased Lines baskets.

Each of the baskets is detailed in the tables below:

Mobile Voice


Basic basket principles remains the same

Largest 2 providers/ > 50% combined market share
Voice usage levels and parameters for 2017 are same as for 2010
SMS usage levels are lower
No data use (2 baskets)
Data usage levels are higher
High data usage baskets have less SMS

Previous baskets included 6 non-data baskets and 5 data baskets,

with maximum data 2GB, and no unlimited baskets.
New range of 12 baskets


    SMS     Data (GB)
30 calls, no data     30     10     0
100 calls, no data     100     20     0
30 calls, 0.1 GB     30     20     0.1
100 calls, 0.5 GB     100     40     0.5
300 calls, 1 GB     300     80     1
900 calls, 2 GB     900     160     2
Unlimited voice, 5 GB     Unlimited     Unlimited     5
30 calls, 0.5 GB     30     10     0.5
100 calls, 2 GB     100     20     2
300 calls, 5 GB     300     40     5
900 calls, 10 GB     900     80     10
Unlimited voice, 20 GB     Unlimited     Unlimited     20

Fixed Voice

Baskets are broadly unchanged, apart from:
Tariffs may now included VoIP and fixed position LTE
International calls are no longer included
Type of basket     Basket
Residential     20 calls basket
Residential     60 calls basket
Residential     140 calls basket
Residential     420 calls basket
Business     100 calls business basket, single user
Business     260 calls business basket, single user
Fixed voice basket continues to cover incumbent provider only

Mobile Broadband

Basic basket principles remains the same
3 largest providers / > 70% combined market share
Devices are no longer considered (all baskets can be used with any device)
Usage tiers have been expanded, to include a 20GB and 50GB basket
Short term tariffs are allowed e.g. 1 day or 10 day prepaid
Price correction factor: P = 30 days / [Validity days]
Two special baskets to simulate short term usage
Long terms tariffs may be included BUT the validity will be truncated at
30 days without pro-rata adjustment to the price
      Usage volume (GB/month)
0.5 GB basket     0.5
1 GB basket     1
2 GB basket     2
5 GB basket     5
10 GB basket     10
20 GB basket     20
50 GB basket     50

Short validity mobile broadband baskets


Usage volume


Days of use per

0.5 GB basket     0.5     15
1 GB basket     1     15

Fixed Broadband

Basic basket principles remains the same
3 providers (now 3 largest)/ > 70% combined market share
Speed tiers are based on minimum speed
Upper speed limit in 2010 baskets removed
5 speed tiers (referring to published download speed)
>= 0.256 Mb/s
>= 10 Mb/s
>= 25 Mb/s
>= 100 Mb/s
>= 1000 Mb/s
Technologies now also include WiMax and Fixed location LTE
in addition to ADSL, Cable and Fibre networks
As most fixed broadband services offer unlimited data usage only the
medium usage volume will be included in published OECD results

Minimum Download
Speed (Mb/s)


Low alternative
data volume


Medium data


High alternative
data volume

0.256     5     15     45
10     10     30     90
25     20     60     180
100     40     120     360
1000     100     300     900

Leased Lines

Baskets have not changed and cover incumbent provider only
These will be reviewed at the end of 2018 and may be removed
due to uncertainness of data availability and quality going forward
      2 km     20 km     50 km     100 km     200 km     500 km
2 Mb/s     50%     18%     6%     8%     10%     8%
34 Mb/s     42%     18%     15%     9%     8%     8%

These changes have come about following a period of consultation with the OECD. Josie Sephton, Director of Teligen, states "We now have a set of revised baskets which are a much better reflection of usage, and allow for much more robust comparison both within and across markets around the world."

Bernadette Finn, Associate Director of Teligen adds "We are delighted that we are able to continue to work with the OECD in defining the baskets, and implement these changes in our services."

If you would like to find out more about the OECD and their announcement on these new basket methodologies, please click here.

To discuss these OECD Price Benchmarking services, and to request more information, or a live demonstration, contact either Josie Sephton or Bernadette Finn.

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com

About Teligen

Teligen is a division of Strategy Analytics that focuses solely on pricing and benchmarking of telecoms services. Teligen has been in existence since 1976, and in 1995 established an agreement to benchmark prices for the OECD.


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