Feeds

Orange punts two year lock-in

Puts brakes on handset replacement cycle

The Power of One Infographic

Customers who are prepared to wait 2 years for their next subsidised handset, or give up the subsidy entirely with a SIM-only deal and no commitment, are being offered bonus minutes and text from Orange UK..

The benefits, compared to the 18 month contracts already available, depend on what kind of animal you are: Canaries get an additional 450 minutes of voice, while Dolphins and Racoons have to make do with 300 minutes. Canaries also get 150 more text messages, with Racoons getting 50 and Dolphins remaining unlimited.

This is quite clearly a bribe to reduce the burden of replacing handsets every 12 months. Orange Pay Monthly acquisition marketing head Rob Kerrison said: "Our new 24 month contracts are perfect for those looking to get significantly better value in return for a lengthened commitment and hanging on to their handset for two years."

Orange tried the tactic a few years ago, but said the market wasn't right for it at the time.

The problem is that subsidised handsets have created an unrealistic market for new phones, and the upgrade customers expect every year is costing the operators more each time.

So it makes sense for Orange to reward customers who don't want an upgrade every time a shiny new toy comes out, but it remains to be seen if the market is now ready for a two year commitment. ®

The Essential Guide to IT Transformation

More from The Register

next story
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Orange spent weekend spamming customers with TXTs
Zero, not infinity, is the Magic Number customers want
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
NBN Co execs: No FTTN product until 2015
Faster? Not yet. Cheaper? No data
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.