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BTCellnet to up prices to counter profiteering

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Internet Security Threat Report 2014

BTCellnet may have to push up prices on its pre-paid phones to stop punters buying handsets in the UK and selling them abroad for a huge mark-up. The price of the operator's pre-paid packages may need to rise in order to protect the company from these entrepreneurs, the Financial Times reported today. The phones are priced at £39.99 in the UK in supermarkets like Tesco, Sainsbury’s and Asda. The same phones can be sold in Europe for around £120. BTCellnet is said to be losing cash hand-over-fist thanks to such activities. In the UK, companies such as BTCellnet subsidise the price of these phones to promote sales, with the aim of cashing in on call charges. BTCellnet pays manufacturers round £60 for the handsets, but sells them to supermarkets as prepaid packages for around £30. Supermarkets are then free to price according to demand. User then pay BTCellnet in advance for calls. BTCellnet makes no money when one of these phones is used through another network. BTCellnet may put prices up on prepaid packages to supermarkets in the UK by £20 to £25. ® See also: Pre-pay fraud hits BTCellnet

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