Feeds

One2One doubles price of pay-as-you-go phones

Will the rest of the industry follow?

  • alert
  • submit to reddit

The essential guide to IT transformation

One2One has announced it will nearly double the price of its pay-as-you-go mobiles from £40 to £70 in May. The company said it wanted to cut down on "unsustainable" subsidies on pay-go phones and move more customers onto a contract instead.

One2One is owned by Deutsche Telekom, which, along with the other two main European telecoms France and British Telecom, is suffering heavily from a huge debt burden at the moment. Contracts not only make mobile companies more money but also increase "loyalty" - by which we mean people can't be bothered to get a new contract.

A One2One spokesman said, however: "The market is becoming more about retention of customers. That's why we trying to persuade customers to migrate to our contract offerings." One2One wants to increase the number of its customers from 30 per cent to 50 per cent.

The question is: what affect will this have on the rest of the pay-as-you-go market. One2One is the first to admit that its offerings were already the most expensive on the market, but there is no question that these phones are heavily subsidised and taking some of the competitive pressure off the market may see prices creep up. Its spokesman said he "wouldn't be surprised" if its competitors did so. "This is something we generally see happening."

An Orange spokesman said that the company was "considering options" and was "reviewing" the situation. Note that it did not rule out price rises though. We are still waiting for a comment from Vodafone.

The pay-as-you-go phones are particularly popular with teenagers and with their parents as it removes the threat of them running up huge bills. Mobile companies love them too as they see them as getting customers young and nurturing them into loyal brand-lovers. ®

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?