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Vodafone responds to price pressure

Planning cheaper UK tariff
Mon Aug 28 2006, 10:41
BELEAGUERED MOBILE network operator, Vodafone is planning to introduce a far more cost-competitive tariff for its UK customers over the next fews days. According to the Sunday Times, this is Vodafone´s response to T-Mobile´s Flext tariff.

The new tariff will put an end to the confusion which existing contracts inspire - whereby the subscriber has set quotas of voice minutes, MMS messages and text messages which frequently get unused. Copying Flext, the new Vodafone is expected to embrace all three types of usage with just one tariff.

It´s not presently clear how this tariff might incorporate charges for data usage. At present, Vodafone offers a flat rate tariff for heavy email and Internet users.

The move follows 3 (UK)´s recent forced admission that its rate of customer loss (´churn´) is actually much higher than previously admitted. Its parent company, Hutchison Whampoa, accidentally admitted last week that the figure was around 50 per cent.

It also appears that 3 is finally going to face up to the fact that its number of áctive´users may be a lot lower than the figure of 3.75 million it likes to quote.

This problem was first highlighted by O2 (Oh Dos)´s Peter Erskine back in 2005. He referred to customers who owned a SIM card but didn´t make a call for six months as ´spinners´.

These are customers who purchased a new phone but throw out the new SIM card and insert the old SIM card from their previous handset.

The next market which Vodafone will have to fix is Germany where it is in some instances twice as expensive as rival E-Plus, owned by KPN of the Netherlands.

The Sunday Times also revealed that Paul ´The Plumber´Davidson is working on another very worrying invention. It´s a main adapter which screeches - the Noisy Charger- when it´s not actually doing anyhting.

So besides you mobile handset irritatingly beeping at you when the battery is low, the handset charger might start to screech if you leave it in the mains socket with no handset attached. Oh, joy! µ

See Also
a href="http://uk.theinquirer.net/?article=22890"> O2 gets tough with spinners

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