Mobile Industry Review - Latest Comments in UK Prepay vs Contract: A complete joke!

Re: UK Prepay vs Contract: A complete joke!

rickyc — Tue, 16 Sep 2008 19:45:01 -0000

Something I am sure I have heard before, am I incorrect in my assumption?

Re: UK Prepay vs Contract: A complete joke!

Mobile Zilla — Tue, 16 Sep 2008 05:48:41 -0000

How can you be so sure that Lebara uses VOIP for international calls?

Re: UK Prepay vs Contract: A complete joke!

jamesvincent — Wed, 10 Sep 2008 16:52:21 -0000

I must say very Good point. But! Operators like T-mobile and Vodafone are global and parent company has loads of money. They dont need to charge 10p/12p for a text message. or 35p to call other Networks. We are one of the most expensive countries in the world. Anyway... It's just wrong!

Re: UK Prepay vs Contract: A complete joke!

rickyc — Wed, 10 Sep 2008 12:42:47 -0000

150 minutes of calls and hundred texts a month If you are using less then that then you should be looking at pay as you go.

Re: UK Prepay vs Contract: A complete joke!

smstextnews — Wed, 10 Sep 2008 11:13:13 -0000

So at what point should a user switch from contract to prepay and get a better deal?

Re: UK Prepay vs Contract: A complete joke!

sevendotzero — Wed, 10 Sep 2008 07:58:04 -0000

The drivers are different for an MVNO like ASDA & a MNO like Voda. ASDA are running a multi product business where they can afford to offer some products at or near cost to drive footfall & sell other products. Voda is in the business of selling minutes, data etc. Different business models.

Re: UK Prepay vs Contract: A complete joke!

rickyc — Wed, 10 Sep 2008 07:22:17 -0000

I agree with you there.

Re: UK Prepay vs Contract: A complete joke!

rickyc — Wed, 10 Sep 2008 07:21:47 -0000

This is actually my rant which Ewan published so I am going to reply to the points you raise.
1) I fully understand your point, I get it to a certain extent. However ASDA announced it was reducing prices at the same time Voda was increasing them. That is what is annoys me a hell of a lot.
2) Yeah I take your point on termination rates but it still just shows up how odd the market in the UK here in the that it is cheaper to call abroad then it is within your own country. It would be great if some of the readers could comment how it it works in their own countries!

I definatly want a price war, I think if any of the MVNO's can make a difference it is Asda, I don't think Ikea have distribution power and brand power. Only time will tell but I hope people will ditch the traditional MNO and switch to the MVNO's. The mainstream press are picking this up and with sites like Money Saving Expert highlighting no real difference between Voda and Asda ie they will get the same signal, just a different CS and with the current credit crunch people are looking to reduce costs. There is little reason for them to switch.

Re: UK Prepay vs Contract: A complete joke!

jamesvincent — Wed, 10 Sep 2008 07:01:29 -0000

One of the things I've been trying to work out in your "Part 2" is how O2 can charge 20p p/m outside my Allowance of 600 minutes. But yet charge 17p p/m for me to call Germany. (OK I have ITS-International Traveller Service) but thats Free with my plan!

Re: UK Prepay vs Contract: A complete joke!

Stuart Alexander — Wed, 10 Sep 2008 05:44:25 -0000

Did you know that Virgin mobile charges 5p/Kb for data access!? Yes you did read that correctly. And there is no cap.

Re: UK Prepay vs Contract: A complete joke!

TerenceEden — Wed, 10 Sep 2008 05:36:29 -0000

A quick reply
1) Those MVNOs buy in bulk. If you were prepared to pay in bulk, you'd get a discount. It's the same reason your supermarket sells Heinz Beans cheaper than your corner store. As for the out of bundle costs, if you take 600 mins @ £25pm, the cost is ~4ppm (plus you get the texts). Once you're out of the wholesale rate - you're back to paying retail.

2) In actual fact, it's cheaper on Vodafone Prepay* to ring China and Poland than it is to ring your local Chinese takeaway or Polish deli - http://www.vodafone.co.uk/international - 5ppm to landlines in Croatia, Czech Republic, Hungary, Poland, Romania, Lithuania, Latvia, Slovakia, Thailand, Turkey, China, Hong Kong, Russia, Nigeria, India, Pakistan. Why? Two reasons
i) It's genuinely cheaper to call those countries. You'll notice that most of the places are places where your pound/euro buys a lot. It's cheaper to buy a can of Pepsi there. Whereas the UK has high termination rates, these countries' rates are cheaper.
ii) Capitalist Supply and Demand. There are lots of Poles, Pakistanis, Slovakians etc in this country and they all want to ring home. They don't have the ability to pay BT's 50ppm (or whatever it is). So, supply and demand.

So, if you want a price war - move to the cheap MVNOs. Play the supply and demand game. However, it's cheaper and easier for networks to sell wholesale to MVNOs than it is to deal with you directly. That way leads us back to the market conditions of the late 1990s.

T
*Other providers are available :-)
(Not speaking for my corporate masters - Vodafone)