To measure and better understand the scope of commoditization within the mobile industry, we developed a commoditization score based on a combination of two independent variables at both the national and regional levels:

Depending on their score on these two measures, we have placed each country and region we studied into one of four commoditization zones.

We have also assigned each country a Commoditization Index (CI) score—a single figure that provides an “at-a-glance” summary of where a country or region lies on the path from comfortable to commoditization. The CI score is an average of market share spread and ARPU spread, weighting both spread scores equally.

Although the CI score for a country or region is derived from the market-share spread and ARPU spread, the score provides a complementary perspective to a market’s commoditization zone—and can drive insights obscured by a country’s zone position. For example, a market that is in Zone 4 (‘Comfortable’) may be identified as more competitive overall or ‘On the edge’ by the CI score metric.